IMT Ghaziabad

PRE-SESSION ASSIGNMENT

Instructions:

 The printed copy of completed assignment should be submitted on 23rd June.

 The first page of the assignment report should contain the following details
o Full name of student
o CAT registration number.
o Program name(FT/Finance/IT/HR/IB)
o Email ID
o Native Location
o Education brief(Degree and stream from XII to graduation)
o Work Ex brief(company, duration and position)
 Students who will not be able to report on the day of admission can mail their assignments to
imtgconnect@gmail.com by 23rd June. The subject of the mail should be of the format
<Program name>_<Full name of student>_<CAT Reg No.>
 Plagiarism and Professional misconduct will invite penalty.
 Strictly restrict to the word limits.
 The submitted assignments will be evaluated and necessary feedback will be provided to the
students. The grades obtained will be considered for the selection process of various student
driven clubs and committees.
IMT Ghaziabad

Section-1: Terms and Terminologies

Knowledge about the following terms and phrases will help you understand the following sections. Use
the concepts wherever possible.

4Ps of Marketing
Brand Equity
Brand Value
Buzz Marketing
Concepts of Profit, Loss, Debt,
Equity
Cost and Profit Centers
Fiscal Policy
Ledger Account
Monetary Policy
Shareholders
Stakeholders
Stockholders
STP
SWOT Analysis
Viral Marketing
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Section-2: All questions are to be answered

General Introduction

1. Submit a Statement of Purpose of joining IMT Ghaziabad for a PGDM course. (Word limit
1000 words).
2. What is your expectation of the life and schedule at IMT? (< 1000 words)

Area: Marketing

1. Write short note on the following with 3 examples each in not more than 200 words
a. Surrogate Marketing
b. Green Marketing
c. Viral Marketing
d. Brand and a product
e. Guerilla Marketing
2. Read the following case and answer the following questions. Additional information can be
added through various sources. Answer in each question in not more than 300 Words

Nike: Right Ahead

Nike hit the ground running in 1962. Originally known as Blue Ribbon Sports, the company focused
on providing high-quality shoes designed especially for athletes by athletes. Founder Philip Knight
believed that high-tech shoes for runners could be manufactured at competitive prices if imported
from abroad. The company’s commitment to designing innovative footwear for serious athletes
helped it build a cult following among American consumers. By 1980, Nike had become the number-
one athletic shoe company in the U.S.

From the start, Nike’s marketing campaigns features winning athletes as spokespeople. The
company signed on its first spokesperson, runner Steve Prefontaine, in 1973. Prefontaine’s
irreverent attitude matched Nike’s spirit. Marketing campaigns featuring winning athletes made
sense. Nike saw a ‘pyramid of influence’ – it saw that product and brand choices are influenced by
the preferences and behaviour of a small percentage of top athletes. Using professional athletes in
its advertising campaigns was both efficient and effective for Nike.
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In 1985, Nike signed up the then young and unknown, guard Michael Jordan as a spokesperson.
Nike’s gamble paid off. The Air Jordan line of basketball shoes flew off the shelves, with revenues of
over $100million in the first year alone. Jordan also helped build the psychological image of the Nike
brand. Phil Knight said ‘sports are at the heart of American culture, so a lot of emotion already exists
around it. Emotiona are always hard to explain but there’s something inspirational about watching
athletes push the limits of performance. You can’t explain much in 60 seconds but when you show
Michael Jordan, you don’t have to’.

In 1988 Nike aired its first ads in the ‘Just Do It’ ad Campaign. The $20million month-long blitz –
subtly encouraging Americans to participate more actively in sports – featured 12 TV spots in all. The
campaign challenged a generation of athletic enthusiasts to chase their goals; it was a natural
development of Nike’s attitude of self-empowerment through sports. The campaign featured
celebrities and non-celebrities. One non-celebrity ad featured Walt Stack, an 80-year old long-
distance runner, running across the Golden Gate Bridge as part of his morning routine. The ‘Just Do
It’ trailer appeared on the screen as the shirtless Stack ran on a cold morning. Talking to the camera
as it zoomed in, and while still running, Stack remarked ‘people ask me how I keep my teeth from
chattering when it’s cold’. Pausing, Stack replied, ‘I leave them in my locker’.

As Nike began expanding overseas in Europe, it found that its American-style ads were seen as too
aggressive. The brand image was perceived as too fashion-oriented. Nike realized that it had to
authenticate its brand in Europe the way it had in America. That meant building credibility and
relevance in European sports, especially football. Nike became actively involved as a sponsor of
football leagues, local clubs and national teams. Authenticity required that consumers see the
product being used by athletes, especially by athletes who win. The big break came in 1994, when
the Brazilian team (the only national team for which Nike had sponsorships) won the world cup. The
victory allowed Nike to sign other winning teams, and by 2003 overseas revenues surpassed U.S
revenues for the first time. Nike also topped $10billion in sales for the first time in that year as well.

Today, Nike dominates the athletic footwear market. Nine of the 10 top-selling basketball shoes, for
example, are Nikes. Nike introduces hundreds of shoes each year for 30 sports – averaging one new
shoe style every day of the year. Swooshes abound on everything from wrist watches to golf clubs to
swimming caps.

Discussion Questions

1. Discuss the 4P’s of marketing for the American, Europe and Asian Market.
2. Making use of motivation theory, discuss consumer motivation behind a Nike purchase?
3. How has Nike kept the brand fresh over the years?
4. What future recommendations do you have to make Nike an even more successful brand?
IMT Ghaziabad

Area: Finance

1. Write short notes on the following (not more than 200 words each)
a. Financial derivatives – different types
b. Financial Inclusion
c. Fiscal and monetary policy
d. Debt and equity
e. Shareholders and stakeholders of a Company
2. Recently after the Union Budget for 2010-11, RBI in consultation with the Government is
planning to issue new banking licenses to promoters in the private sector. The last such grant
happened in 2002.
a. What are the functions of a commercial bank? (200 words)
b. What is meant by NBFC? State 3 differences between banks and NBFCs.

3. What is the function of Securities market? Differentiate between Primary market and Secondary
market (300 words)

4. Write a short note on the Dubai Financial Crisis which happened in November 2009. What are
the possible causes of the Dubai Financial Crisis? (500 words)

5. Mr. Agarwal is due to receive money as a lottery prize. Upon receiving the amount, he would
invest the entire money to finance future needs. He has been given two options by the
organizers: Receiving the full and final amount of Rs. 100000 as a single installment; or receiving
Rs. 22000 each in five installments in five years, the money to be paid at the beginning of each
year. It is also known that the rate of return earned on investment is 5%. Please advise Mr.
Agarwal on what should be his course of action. (Hint: Use the concept of “Time Value of
Money” and “Annuity”)
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Area: Human Resources

Analyze the following case-lets and provide a solution to each. (<1500 words)

Case let 1

You have identified a location in the eastern part of the country to set up your manufacturing unit.
The area you have ear-marked is infected by Naxalites. You have been receiving threatening calls
about backlashes in case you go ahead with the plan. On the other hand the growth of your business
depends critically on the successful execution of this project, so the pressure from the top rung of
the management is immense. You as a HR manager have the task of getting the project off the
ground as well as managing the Naxalite threat. How do you go about it?

Case let 2

As part of the HR department of an IT firm you are in the loop about changes in the compensation
packages due to the economic downturn across various levels in the organization. It is visible that at
the executive level, pay packages have taken a hit but at the managerial level the pay packages have
remained unchanged. Looking at this, the executive level employees make their displeasure visible
via chain mails and other internal media. You have the task of convincing them about the rationale
of this decision. Draft a mail explaining the reasons behind this step.
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Area: Systems (IT)

1. What are several ways that IT could provide a competitive advantage to a business? Use any
company as an example and visit its website to gather more information to help your answer.
(Word Limit-400 words)

2. CASE STUDY: Analyze the case let and answer the following questions. (<600 words)

THE COMPETITIVE ADVANTAGE OF INFORMATION TECHNOLOGY

There’s nothing like a punchy headline to get an article some attention. A study in the Harvard
Business Review, shockingly labelled “IT Doesn’t Matter,” has garnered the magazine more buzz
than at any time since the Jack Welch affair. The article has been approvingly cited in The New York
Times, analyzed in Wall Street reports, and e-mailed around the world. But without such a dramatic
and reckless title, I doubt the article would have been much noticed. It’s a sloppy mix of ersatz
history, conventional wisdom, moderate insight, and unsupportable assertions. And it is dangerously
wrong. Author Nicholas Carr’s main point is that information technology is nothing more than the
infrastructure of modern business, similar to railroads, electricity, or the internal combustion
engineering advances that have become too commonplace for any company to wangle a strategic
advantage from them. Once-innovative applications of information technology have now become
merely a necessary cost. Thus Carr thinks today’s main risk is not under-using IT but overspending on
it. But before we get any further, let’s have a reality check.
First, let’s ask Jeff Immelt, the CEO of General Electric Co., one of the premier business corporations
in the world, this question: “How important is information technology to GE?” Here’s his answer:
“It’s a business imperative. We’re primarily a service-oriented company, and the lifeblood for
productivity is more about tech than it is about investing in plants and equipment. We tend to get a
20 percent return on tech investments, and we tend to invest about $2.5 billion to $3 billion a year.”
Then let’s ask Dell Corporation CEO, Michael Dell: “What’s your take on Nick Carr’s thesis that
technology no longer gives corporate buyers a competitive advantage?” Here’s his answer: “Just
about anything in business can be either a sinkhole or a competitive advantage if you do it really,
really bad or you do it really, really well. And information technology is an often misunderstood field.
You’ve got a lot of people who don’t know what they’re doing and don’t do it very well. For us,
IT is a huge advantage. For Wal-Mart, GE, and many other companies, technology is a huge
advantage and will continue to be. Does that mean that you just pour money in and gold comes out?
No, you can screw it up really bad.”
Finally, let’s ask Andy Grove, former CEO and now Chairman of Intel Corporation, a direct question
about IT:“Nicholas Carr’s recent Harvard Business Review article says: ‘IT Doesn’t Matter.’ Is
Information technology so pervasive that it no longer offers companies a competitive advantage?”
Andy says: “In any field, you can find segments that are close to maturation and draw a conclusion
that the field is homogeneous.
Carr is saying commercial-transaction processing in the United States and some parts of Europe has
reached the top parts of an S-curve. But instead of talking about that segment, he put a provocative
spin on it—that information technology doesn’t matter—and suddenly the statement is grossly
wrong. It couldn’t be further from the truth. It’s like saying: I have an old three-speed bike, and
Lance Armstrong has a bike. So why should he have a competitive advantage?”
IMT Ghaziabad

So, basically, Carr misunderstands what information technology is. He thinks it’s merely a bunch of
networks and computers. He notes, properly, that the price of those has plummeted and that
companies bought way too much in recent years. He’s also right that the hardware infrastructure of
business is rapidly becoming commoditized and, even more important, standardized. Computers and
networks per se are just infrastructure. However, one of the article’s most glaring flaws is its
complete disregard for the centrality of software and the fact that human knowledge or information
can be mediated and managed by software. Charles Fitzgerald, Microsoft’s general manager for
platform strategy, says that Carr doesn’t put enough emphasis on the “I” in IT. “The source of
competitive advantage in business is what you do with the information that technology gives you
access to. How do you apply that to some particular business problem? To say IT doesn’t matter is
tantamount to saying that companies have enough information about their operations, customers,
and employees. I have never heard a company make such a claim.”
Paul Strassman who has spent 42 years as a CIO—at General Foods, Xerox, the Pentagon, and most
recently NASA—was more emphatic. “The hardware—the stuff everybody’s fascinated with—isn’t
worth a damn,” he says.
“It’s just disposable. Information technology today is a knowledge-capital issue. It’s basically a huge
amount of labour and software.” Says he: “Look at the business powers—most of all Wal-Mart, but
also companies like Pfizer or FedEx. They’re all waging information warfare.”

Case Study Questions

a. Do you agree with the argument made by Nick Carr to support his position that IT no longer
gives companies a competitive advantage? Why or why not?
b. Do you agree with the argument made by the business leaders in this case in support of the
competitive advantage that IT can provide to a business? Why or why not?
IMT Ghaziabad

Area: Economics

Case Study: Rethinking economic progress

Despite their importance to society and industry, calculations for GDP do not consider spending
on R&D, workforce training and product design as they are considered “intangible investments”.

How should a country's economic well-being be measured in the 21st century?

Key Points at a discussion at the World Economic Forum were as follows:


• There was a consensus about the need to go beyond econometric indicators
• A dashboard of
measurements, rather than a single indicator, is likely to be most useful and desirable
• It is
important to focus on what is manageable
• The integrity of the indicators must be ensured –
meaning that verification and monitoring are important
• Added resources will be needed to
develop and disseminate new indexes

Synopsis 
Several initiatives are attempting to devise accurate and useful indicators of well-
being to take the place of GDP growth as the central benchmark measurement in modern
society. Notable is the work by the Organization for Economic Co-operation and Development
(OECD) and by a commission appointed by French President Nicolas Sarkozy and headed by
economist Joseph E. Stiglitz.

Questions

1) What according to you are the important factors/variables that should be measured and
taken into account in the calculation of an alternative and effective GDP? (<600 words)
2) What steps can the government take in order to ensure the effective implementation of a
new GDP measurement system? (One example is, ensure the independence from
political influence of the agencies that gather the data and make the calculations)(< 600
words)
IMT Ghaziabad

Section-3: Business Plan

Suggest a feasible business proposal and make a plan to drive the business for 3 years down the line
in any sector or field you would choose. The plan should be made keeping in mind all the practical
aspects of business and should be explained to the base level of implementation.

Consider the following areas for the structure of your plan:

 Sector Chosen – Reasons.

 Product or service or a combination chosen – Reasons.
 Present market situation.
 Expected business- target size in volumes and money.
 Complete financial plan.
 Employee planning.
 Geographical spread and choice of location – Reasons
 Customer management
 Promotion plan.

*** We are not looking for a professional structured plan, we would look at the market exposure
you have, the clarity of your objectives, your analytical skills etc. It is important that you cover the
entire aspects specific to the selected business other than the ones mentioned above.

Word Limit – 2000 words

Section-4: Suggested Reading

1. Straight from the Gut by Jack Welch

2. Made in Japan by Akio Morita
3. Fortune at the bottom of the pyramid by C.K. Prahlad, publication, year
4. Lee Iacocca – An Autobiography