CASE STUDIES ASSIGNMENT

CHAPTER 3 PRIVATE PUBLIC AND GLOBAL ENTERPRISES

QUESTION – 1
Two years back Rahul had joined a branch of Bank of Baroda as Assistant Manager in the
Term Deposits division in Delhi. Whereas, his younger brother Rehan recently joined HDFC
Bank as Business Development Manager in Kolkata. While discussing about their job
experiences both the brothers realised that the working of the two banks varies primarily
because they belong to different sectors of the economy. However, on certain parameters the
approach of both the banks is similar like, offering a higher rate of interest on term deposits
made by senior citizens, ensuring safety and security in netbanking, etc. In context of the
above case:

(a) By quoting lines from the paragraph identify the two sectors being highlighted.
(b) State any three differences between the two sectors as identified in part (a) of the
question.
(c) List any two values that banks wish to communicate to the society.

QUESTION – 2
Indian Railways is the fourth largest railway network in the world. It is owned and operated
by the Government of India through the Ministry of Railways. It is responsible for rail
transport in India. Indian Railways is the world's eighth biggest employer and had 1.331
million employees at the end of 2015-16. Discounted tickets are available for senior citizens
(above sixty years) and some other categories of passengers including the specially abled
students, sports persons, persons affected by serious diseases, or persons appearing for
competitive examinations.

In context of the above case:

(a) Indian Railways is classified as which type of public sector enterprise and why?
(b) In what category are the employees of Indian Railways placed?
(c) State any two values that Indian Railways wants to communicate to the society.

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QUESTION – 3
Life Insurance Corporation of India is the largest insurance company in India. It is
headquartered in Mumbai. It was founded in the year 1956 when the Parliament of India
passed the Life Insurance of India Act that nationalised the private insurance industry in
India. Over 245 insurance companies and provident societies were merged to create the state
owned Life Insurance Corporation.

In context of the above case:

(a) Life Insurance Corporation of India is classified as which form of public sector
enterprise?

(b) Was it necessary the for Parliament of India to pass the Life Insurance of India Act for its
formation? What does the Act define?
(c) State any three merits of promoting Life Insurance Corporation of India in a particular
form of public sector enterprise as identified in part(a) of the question.

QUESTION – 4
Bharat Heavy Electricals Limited (BHEL) was founded in the year 1964 by the Government
of India. It is the largest power plant equipment manufacturer in the country with 74% market
share in the power sector. It has a network of 17 manufacturing units, 2 repair units, 4
regional offices, 8 service centres, 8 overseas offices, 15 regional centres, 7 joint ventures,
and infrastructure allowing it to execute more than 150 projects at sites across India and
abroad. It has been granted the prestigious Maharatna (big gem) status in the year 2013 by
Government of India for its outstanding performance and vast scale. Maharatna status affords
the Boards of these companies enhanced financial and operational autonomy.

In context of the above case:

(a) How will you classify Bharat Heavy Electricals Limited (BHEL) as a form of public
sector enterprise?
(b) State any three features of the form of public sector enterprise as identified in part(a)
(c) Explain briefly 'financial and operational autonomy' as a merit of the type of public sector
enterprise as identified in part(a) of the question.

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QUESTION – 5
With exponential growth seen in domestic air traffic requiring additional airport
infrastructure, the government has decided to offer more airports to private parties for
operation and management. In India as many as 300 airports need to be revived and upgraded
in coming years to support the double-digit growth in the sector. This would require huge
private investment as public funds are limited for infrastructure development. In February
2017, government announced that airport infrastructure will be built under the PPP model in
smaller cities and towns. Besides, major airports in Delhi, Mumbai, Bangalore and
Hyderabad had been handed out to private developers.

In context of the above case:

(a) Outline the concept of PPP.
(b) State any two ways in which the government is likely to be benefited by pursuing projects
under a PPP model.
(c) State any three features of a PPP model.

QUESTION – 6
Nestlé S.A. is a Swiss transnational food and drink company headquartered in Vevey, Vaud,
Switzerland. It has been the largest food company in the world. Nestlé has over 8,000 brands
with a wide range of products across a number of markets, including coffee, bottled water,
milkshakes and other beverages, breakfast cereals, infant foods, performance and healthcare
nutrition, seasonings, soups and sauces, frozen and refrigerated foods, and pet food.

In context of the above case:

(a) What form of enterprise is Nestlé?

(b) State any three features of the form of enterprise as identified in part(a) of the question.