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IIBMS – P P M Answer sheet

IIBMS – P P M Answer sheet


IIBMS – P P M Answer sheet


Health or Work

Mr.Victor is the marketing manager, looking after two sensitive products-Max and Priya (both are luxury soaps) – produced by Hindustan Trading Company. After a service of fifteen years, Mr. Victor now enjoys the second position in the marketing department of his company.

Recently the company introduced a new soap for the elite class of customers. It was launched in all the big cities of India, under the overall supervision of Mr. Victor.

Mr. Victor now travels twenty days a month and works for fourteen hours a day. His work is well appreciated by the chairman of the company. And was also rewarded with three direct increments. As an obvious result of this new development, Mr. Victor now looks after all the three sensitive soaps. Looking at his dashing approach to marketing, the company’s chairman now wants to give him the additional responsibility of an ‘international launch’ of these products. Unfortunately, Mr. Victor is now suffering from high blood pressure and has gone for medical treatment. Although he is on leave now, he has to resume his duties within a week. As per the doctor’s advice, Mr. Victor was supposed to take one month’s rest. Mr. Victor’s wife works in the government department and they are blessed with two school going sons.


What is your advice for Mr. Victor?


Wanted a Leader

Bombay Steel Limited is the market leader in raw steel, with 40% market share. The company has a work force of 35,000 employees including 6,000 officers. The chairman of the company Mr. Rangtha retired recently and could not place his successor immediately. The company is now facing severe competition from new entrants, especially foreign companies. The moral of employees’ is down due to the absence of proper allocation of responsibilities, support from superiors and wage revision.

The company is also expecting a non-cooperation movement to be carried out by its Two unions. Export orders are pending. The export market now expects better quality of product. The government has allowed BSL to expand its capacity, acquire new technology and also raise capital from the open market. Three senior executives of the company are in the race of becoming the new chairman. Two senior bureaucrats from the central government departments are also aspiring for the same position.


  1. What type of leader/chairman is required for this company?
  2. Who should be made the chairman?
  3. What should be the priorities of the new chairman?


Assessment of Leadership Performance

Assess your present leader, using the following scale and factors (with respective weightages)


0 – Nil 1 – Poor  

2 – Marginal 3 – Good 

4 – Very Good 5 – Excellent  

Factor Weight age
Decision Making  8
Understanding Subordinates  7
Delegation of Power  6
Supporting Subordinates  5
Dynamism and Risk caring  4
Vision and knowledge  3
Communication  2
Transparency  1

Required Select your group leader. Also decide the next leader and the method for Transfer of leadership.


Value Approach to Productivity Falcon International Limited is a well-known company for electrical and electronic products. It is the market leader for various electrical products and enjoys the second position for electronic products. The company has realized the 80 million strong middle-class market of India now wants world-class products and after-sales-services. These customers are now ready to pay higher price for better product. On the other side, the lower middle-class customers have become very price-sensitive, with decreasing real income and increasing inflation.  

So far, this company has been selling ‘same quality products’ to all income groups of customers. But now, it has realized that ‘prduct differentiation’ if required, and ‘value for money’ on one side and ‘reasonable value for reasonable money’ on the other side are going to be the future ‘product strategies’ of the company.

Product differentiation is to be effected very carefully, without disturbing ‘customer sentiments’. This requires suitable change in ‘employee skills’. If employees are ready to change their style of operations, the required change in ‘product design’ or ‘product quality’ can be achieved and the customers could be completely satisfied.

Employees are to be exposed to ‘real market realities’ through live product demonstrations and effective workshops. Careful study of ‘customers ideas on product value’ should be carried out. New designs, new contents, new utilities require new technology and new ideas. Ultimately, all this requires flexibility in productivity. Change in operations or style should not have a negative effect on productivity. If changed design or quality of product demands improvement in productivity, it should be achieved by the employees. The company should properly reward such an improvement.

Falcon has appointed a committee to find out ways and means for redefining productivity, based on redefined ‘product value’. Required

  1. Discuss the significance of timely change in ‘product value.’
  2. Discuss the significance of timely changes in’ productivity’ to suit the ‘change in product value.’
  1. How would you bring in such a change in the productivity.

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