MASTER OF BUSINESS ADMINISTRATION

2020-22

Term – IV
2021-2022

B2B Marketing B
Individual Assignment 2
Ingersoll Rand (India) Ltd. (A)

On
24/07/2021
1. What is your opinion about Anand's behavior towards Sanjay's order win? (150 words)

From my perspective, Anand's reaction towards Sanjay's order win could be attributed to
the buildup from the commoditization, increasing competition and lower margins realized
from the Air Compressors range over the past years. The concerns raised by Anand were by
looking at the bigger picture and thinking critically and rationally. However, the approach
adopted here could have been a more rational one wherein he could've explained the
implications. It is critical for a leader to ensure that the employees are awarded and
recognized for their contribution, but this was something that can be seen as clearly lacking
in the conversation.

2. Deccan Textiles was being considered among some of the most aggressive buyers in the
industry. What damage had it caused to the firm? (300 words)

Due to the increasing input costs, competition, depressed market growth and an economic
slowdown, Deccan Textiles adopted a rigorous cost deployment system, managing costs
systematically. This cost management system meant high-cost cutting and resulted in
various issues companywide.

- Manufacturing: The VP of the department to improve the efficiencies, although

looking for adoption of newer technologies, had to cut down on costs. This might
result in the slower adoption rate of the newer technologies, and the company
might lose its competitive edge.
- Purchase: The purchase department, due to their cost management systems, had
earned a bad rap in the vendors' community. The company was known to be
shrewd extractors of service support and price concessions due to their policy of 'pay
the least and get the most.'
- Utility: The utility managers, in the course of the past three years, had encountered
multiple issues. This could be attributed to the cost-cutting purchase policy of the
company. Due to the reduction in the number of staff in the maintenance area, the
maintenance took several hours, costing the company heavily in the operating hours.
- Loss In Potential Revenue
- Loss of operating hours due to frequent breakdowns
- Decrease in Employee Morale

3. What are the options in front of Anand and his team to respond to the situation IR is in?
Which option would you recommend and why? (100 words)

The company has the following options in hand:

- Maintain Status Quo
- Search for Cost Reduction Aspects
- Switch to Value-Based Marketing Policy

The recommended action plan would be to switch to a value-based marketing policy. The
compressors of the company stand out in terms of their quality in the High HP range, but
the perceived value for the compressors is low due to the availability of cheaper
competitors in the market (Exhibit 3). The company should look at quantifying the value
generated and then communicating the same to the customer.