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Postgraduate Diploma in Marketing

June 2012 Examination

Advanced Management Competencies (AMC)

Date: 19
June 2012

Time: 1400 Hrs 1700 Hrs Duration: Three (03) Hrs
Total marks for this paper is 100 marks. There are two parts in this question paper.

All questions in Part One are compulsory. It includes a mini case.

Part Two includes 6 Essay Type Questions. Answer 03 questions from this part.

Instructions to candidates

1 State your Registration Number on the front cover of the answer book and on
each and every additional paper attached to it. Your name must not appear
anywhere in the answer book or answer scripts.
2. Always start answering a question on a new page.
3. You are reminded that answers should not be written in pencil or red pen except
in drawing diagrams.
4. Answer the questions using:
Effective arrangement and presentation
Clarity of expression
Logical and precise arguments
Clear diagrams and examples where appropriate
5. Illegible hand writing and language errors will be penalised.

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Answer all questions

Question 01: Case study

Dream Value PLC is a profitable player in the Consumable Electrical Goods Market as
a Manufacturer and a distributor. The company has produced a wide range of
electrical supplies and devices over the last twenty years. Dream Value PLC is basically
a local producer and just entered into the international market. The industry is
transforming in order to adjust to new challenges in the areas of Corporate Social
Responsibility and emerging legal and other ethics. The company has been
threatened by low cost local and international producers with high consumer
knowledge about ethical behaviour. Cheating the customers in the Consumable
Electrical Goods Market leads to heavy legal costs and reputation damages which may
threaten the survival of the company.

Mr. Mihin who instigated the international market entry has been the National
Marketing Manager of Dream Value PLC for just over four years. He supervises
twenty five District Marketing Mangers across the country and he heads the division
as a District Marketing Manager. Benefits offered by the government, liberalisation of
the tax laws, devaluation of local currency against the Dollar have caused an increase
in foreign entry to the industry. The CEO is expecting new transformation in the
Dream Value PLC and he is highly confident in Mr. Mihin as National Marketing
Manager that he would show management competencies and entrepreneurial
qualities in achieving success in transformation.

The CEO advised him that costs should be minimized so as to be competitive. He was
instructed to reduce compensation and carry out necessary employee layoffs so as to
ensure the survival of the company. He agreed with the CEO and suggested the
closing down of three plants to reduce human resource cost and proposed importing
new machinery for the production of electrical items which were banned by the
previous National Marketing Mangers due to their harmfulness to the natural
environment. Further, he decided to outsource some part of the production to a
country with low labour cost which he believed will open more international markets
and will be an elegant solution for high tax payments when importing raw materials.
The CEO knew that Mr. Mihin is a risk taker and tend to welcome innovations. The
Low Electricity Consumables Project is one piece of evidence that proves the success
of Mr. Mihins risk taking and innovations. The CEO believed that the above changes
will be a great support for providing low priced products to the customers because he
was aware that the economic downturn in the economy led the low perching power
of customers. Mr. Mihin presided over a meeting with the District Marketing Mangers
and he announced the transformations in the company and implemented them as it

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Mr. Mihin felt that the morale of his entire work force was very low but he believed
that the key employees will not shift to other companies due to bad industry
conditions. The team work among the workforce has been challenged by all who are
acting individually on their own benefits. He reported many misconducts and conflicts
within his own district as well as in others. They were each motivated by different
goals. He never sensed any hostility among them and had been hopeful that
somehow or other he could make them more of a team.

Mr. Mihin presided over another meeting for District Marketing Mangers and
announced establishing a research and development division for the Dream Value PLC
to cope up with new challenges. Further he proposed to have an independent
research committee appointed to find out the main issues inside each districts and at
the same time he suggested an independent consumer survey for finding out the
customer opinion about the companys products. Many of the District Marketing
mangers opposed the suggestion to have an independent research committee to
finding out internal matters. Mr. Mihin was informed that already their staff has been
de-motivated due to poor compensations and they were of the opinion that this new
suggestion is a huge cost and with no result at the end. Further they opposed close
downs and outsourcing. Mr. Mihin did not accept the views of others but he
convinced the CEO and conducted both research and other suggestions. After
implementation of the transformations, many of the District Marketing Managers
purposely perform less to show their resistance with transformations. Mr. Mihin
removed five District Marketing Managers who recorded very low performances but
worked very hard to make the company prosper as before.

Two of the District Marketing Managers who are very close to Mr. Mihin reported the
existing situation and advised him that he was poor in communicating the purpose of
those new transformations and they warned that there may be new court cases from
the employees who have already been dismissed from the plants. But Mr. Mihin
was confident that he would be able to convince the court about the high cost of
those plants. A tax evasion case is also running against the company recalled with
regard to Mr. Mihin. They were in the opinion that he could have called a meeting
for all employees and not only with the District Marketing Managers. Further, they
pointed out his emotional intelligence is too poor for him to handle the situation with
the District Marketing Managers. Mr. Mihin knew that he was in a very difficult
situation now. He needs to try to improve the morale of an under achieving group of
people who have a long history of common goals which were lost after the
transformations. Further, he has to do this in a hard-hitting business climate in which
the company is laying off employees and reducing compensations. Mr. Mihin had
taken the advice from experts and now he has planned to dedicate his time
exclusively to address these matters.

Market research indicated that Dream PLC had twenty percent share of the market in
the country which was thirty five percent during the last year. Further, the findings of
the marketing research highlighted that customers are still like the product but they
are suffering from quality problems and high pricing over the international products.
Customers like to buy the companys products if low cost versions are introduced
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with high quality. Many of the customers were pointed out that the Corporate Social
Responsibility of the company is questionable. The company highlights patriotism in
the companys mission statement and advertisements; but they believed it is just a
selling strategy. They highlighted further, even though the company highlights the
patriotism, the company did not even support tsunami victims while other companies
did do so.

The independent research committee reported that the promotions do not come
through the proper channels rather based on informal relationships with the next
high layers which is the main cause for the de-motivation of the work force and that
the employees did not do their best. Further, the committee report highlighted that
the team culture did not work well within the districts and that many of the district
managers were not consulted and some dominated opinions. They further pointed
out that communicating and recognising performance is not perfect within the
districts. Finally, the research committee concluded that the drop of the companys
performance is mainly due to internal matters rather than external ones. Mr. Mihin
wants to resolve the crises to protect Dream Value PLC and he is more concerned
now about how to resolve the internal matters and he is eager to correct his
leadership style and to find the mistakes he has made. He proposed an expert team
to be appointed for a performance evaluation and promotion system to be
introduced to Dream Value PLC. CEO accepted and promised to offer the fullest
support for that activity.
a. Do you think that Mr. Mihin being the National Marketing Manager is a sound
entrepreneur? Discuss the consequences of Mr.Mihins behaviour towards the
prosperity or decline of the company. Your answer should be supported by the
highlights of the case study. (10 Marks)

b. What types of leadership styles could Mr. Mihin have been exhibiting towards his
division and the District Marketing Mangers? .Your answer should be supported
by the highlights of the case study. Justify your answer with your theoretical
knowledge of leadership. (04 Marks)
c. Many models are available in evaluating Corporate Social Responsibility. Explain
the CSR Model by B. Carroll in 1979. Evaluate the existing levels of CSR at Dream
Value PLC using the above model .Your answer should be supported by the
highlights of the case study. (16 Marks)
d. Explain how Dream Value PLC should engage in CSR activities as to prosper the
society at large. Those proposals should be linked with the issues in the case
study. (06 Marks)
e. Being a Socially Responsible Company, do you agree with use of patriotic
advertising as a selling strategy by Dream PLC?
(04 Marks)

(Total 40 Marks)
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This part includes SIX Essay Type Questions

Answer total of THREE questions from this part

Question 02

a. A Managers Job is complex and multidimensional. Among the different
management skills, the most important skills needed for managing an organisation
have been categorised under three main categories.

Briefly explain the three main categories of managerial skills.
(09 Marks)

b. Discuss the relationship between management skills and management levels by
highlighting the main management activities at each level.
(06 Marks)

c. Briefly explain the five leadership skills needed for Crisis Management.

(05 Marks)

(Total 20 Marks)

Question 03

a. What do you mean by Management by Objectives?
(04 Marks)

b. Discuss the four major activities that must occur for MBO to be successful.

(08 Marks)
c. Explain the benefits and problems with MBO.
(08 Marks)
(Total 20 Marks)

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Question 04

a. Briefly explain what Programmed Decision Making and non Programmed Decision
(06 Marks)

b. List six steps in Managerial Decision Making Process.
(06 Marks)

Assume that you are the marketing manager of a vehicle importing company. The
consequences of government actions including devaluation and hike in taxes have
badly affected the vehicle importing business. The company has losses now. Many
customers who have already paid an advance for the vehicles are requesting their
money back and the cancelation of orders highlighting that they are unable to pay
such a high price for a vehicle.

c. Explain how you make a decision about the above scenario?
(08 Marks)

(Total 20 Marks)

Question 05

Business environments are changing fast and managers need to re-think the many
approaches for the advancement of their business. Business process reengineering is
one of the popular methods to achieving business success.

a. What do you mean by Business Process Reengineering?
(04 Marks)

b. Discuss any two types of organisational structures by highlighting advantages and
disadvantage of each structure.
(08 Marks)

c. Explain Fredrick Hertzbergs Two-Factor Theory of motivation and discuss how this
theory is to be used in motivating the operational level employees of your
(08 Marks)

(Total 20 Marks)

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Question 06

a. What do you mean by organisational Development?
(03 Marks)

b. Discuss the three problems that can be addressed by the mangers using
Organisational Development.

(09 Marks)

c. An organization can be viewed as a value chain Do you agree with the statement?
Explain the above statement with your theoretical and practical knowledge of
Value Chain Analysis.

(08 Marks)

(Total 20 Marks)
Question 07

Write short notes on the followings:

a. Bench marking

b. E- Business Strategies

c. Crisis Management

d. Management by walking around

(05 Marks x 04 = 20 Marks)

(Total 20 Marks)

(Total 60 Marks)