According to you what concrete steps should be taken by the company/companies to address this issue What should be the role of the government

Principles and Practice of Management

According to you what concrete steps should be taken by the company/companies to address this issue What should be the role of the government

Case Studies

Case (20 Marks)

Since its inception, the core values of Hermes had been craftsmanship and quality that had made the company one of the most renowned luxury brands in the world. Hermes had a fierce commitment to the quality and refinement of its products. The company claimed that one artisan fabricated each item rejecting mass production, mechanization, and assembly lines. This tradition of hand stitching was known as the company’s lifeline, having been started by its founder Thierry. With the advent of automobiles, the company’s core business of stitching saddles began shrinking. During this time, the company had to think creatively without compromising on its core values. In the 1920s, Emile Maurice traveled to meet Henry Ford in the US, where he came across the newly invented zipper that was being used on car canvas… While the Hermes family planned to carry on with its rich family heritage and keep its business independent, LVMH was secretly acquiring stake in Hermes. On October 23, 2010, Patrick Thomas was interrupted by a phone call when he was on a bike ride in Auvergne, a mountainous region in central France. … Fearing a hostile takeover by LVMH and to protect Hermes’s family legacy, in December 2010, Thomas in association with 52 key shareholders of the Hermes family, decided to set up a holding company called H51 wherein 50.2 percent of the shares were pooled by Hermes family Though the Hermes family showed reluctance to sell its family managed business and desire members…to keep its business independent, by December 2011, LVMH had increased its stake in Hermes to 22.3 percent. This prompted Hermes on July 10, 2012, to file a complaint against LVMH with the French prosecutors… In June 2013, the AMF, after a series of investigations, ruled that LVMH be fined €10 million over its stake in Hermes (Refer to Exhibit III for investigations made by the AMF). The penalty was imposed on LVMH for breaching disclosure rules during its stake building in Hermes. … After Thomas retired in February 2014, Axel was brought in as the CEO of Hermes. Bringing in a family member was a bid to cement the Hermes family’s grip on the company and show outsiders that the family planned to keep its business independent.

Analyze the underlying reasons

Answer the following question.

Q1. Debate on the core value and culture of Harmesh family.

Q2. Explain how the LVMH’s takeover attempt was defeated.


Case (20 Marks)

On July 28, 2009, a man walked up to the counter of a branch of Key Bank in Seattle, pushed a black bag across the counter, and ordered the teller to hand over money. Jim Nicholson (Nicholson), the 30yearold bank teller who had worked for the bank for more

than two years, stood up to the man and demanded to see the weapon. On July 30, 2009, an employee of Key Bank found himself fired from his job two days after he had prevented an attempted robbery at the bank by confronting the would be robber and overpowering him.

Answer the following question.

Q1. Jim Nicholson was able to prevent the robbery and save the people in the bank from potential harm. Do you think the end justified the means in this case did Nicholson do the right thing in confronting the would be bank robber?

Q2. Did Key Bank do the right thing in firing Jim Nicholson? Would a warning or suspension have been better disciplinary action?

Case (20 Marks)

Progressive Chemical Industries Ltd, is engaged in manufacturing and export of specialty chemicals, having turnover of Rs 300 crores. The Company is growing and having good export orders. The CEO is in mood to expand the business and aiming to reach turnover of Rs 1000 crores in next 5 years. The CEO is worried about the increase in input costs and workers’ demands. Union has threatened to go on strike indefinitely. Union has demanded 50% increase in salary and other benefits. But is not agreeing to link it to productivity. It has also raised issues like unsafe, hazardous working conditions, leakage of poisons gases affecting the health ofworkers. The consultant has advised the CEO to be strict and take strict action against the erring employees and be ready to declare lock out if situation warrants.

Answer the following question.

Q1. What are the various laws which could be applicable in the above problems?

Q2. Do you feel management policies/practices are right? As a CEO how will you convince the union and workers?


Case (20 Marks)

Coal mines in China have become virtual death traps for the workers as mine owners allegedly pay scant attention to workplace safety. According to analysts, the disaster at a coal mine owned by Rui Zhiyuan Company in 2007 was yet another example of what was wrong with the Chinese coal mines. It raised some serious ethical issues and led critics to insist that the Chinese coal mine owners were putting profits ahead of the safety of its employees. On December 5, 2007, an explosion occurred at the coal mine owned by Rui Zhiyuan Company (RZC) in China. It was yet another deadly coal mining explosion in China reported that year. The earlier explosions had occurred at Yujialing Coal Mine killing 26 workers in March 2007 and Pudeng Coal Mine where 28 mine workers had died in May 2007.

Answer the following question.

Q1.Analyze the underlying reasons for the disaster at the coal mines in China in general and at Rui Zhiyuan Company in particular? Do you think that the companies running the coal mines in China are putting profits before the safety of its employees?

Q2. According to you what concrete steps should be taken by the company/companies to address this issue? What should be the role of the government?

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