1.

Mr.Mukund, who heads the production himself, developed an efficient top management
group which includes Mr.Prem Heading marketing, Mrs.Mrunal leading HR and T&D,
Mr.Vaidya leading Finance. All these department heads are always been supportive heads for
the ideas of Mr..Mukund in handling the workforce. Mr. Mukund always quotes that "I
believe that satisfied, educated, the dedicated workforce will be a key to success at any
condition to any organization. Money spent on employees will always be an investment for
my organization." Training and development become a day today activity. Employees are
been trained by well-versed trainers in that area. The organization also encourages the
employees to do further studies as part of the career development program and they get a
helping hand from the organization.

The employees of Makar are very much satisfied with this kind of support from the
organization and they realized that being with Makar their personal growth will be assured.
Because of the above-said things Makar had many advantages like highly trained and
qualified workforce, highest quality of supplies assured, less rate of attrition, dedicated
workforce, meeting the targets on time, satisfied workforce, etc. One day the employees of
Makar were in deep Grief when the news hit the office that Mr. Mukund CEO made an
announcement," Dear employees. You all are my colleagues rather than my employees. I
always feel that I am one of you with more responsibility. Now my age is not allowing me to
shoulder that responsibility, I wish to give way to my younger generation. So, I have decided
to handover the charge to Mr. Mithun, My only son, who had completed his studies and
returned to India. I know you all will be with him as a pillar and extend your support, in the -
am! manner, you supported me. Without you people, this organization would not have
reached these events. I am Sure you all will support him. Now it has been three months since
Mr. Mithun take over the charge and from day one he started auditing in almost all the
departments with a motto to reduce cost. And he got a strong statistic that the compensation is
the highest cost bared by the company compared to any other cost incurred in the
organization. Mitun called Mrs. Mrunal the head HR and told her "Mrs. Mrinal, I need an
immediate action plan to reduce the labor force by 30% by way of Lay-off' he continued,
"Mrunal I hope you are getting my point and I want it to happen soon". Mrs. Mrunal got
shocked by listening to this decision and said to Mr.Mithun that "Sir it is Iny responsibility to
tell you that the workforce which we have is an excellent, well trained, loyal and
selfInotivated workforce. In case of layoff such the competitors will take advantage of that.
We can think of other options rather than Layoff." Mr.Mithun was not in a position to listen
to her words he said that "sorry Mrs. Mrunal I am not ready to review my decision and
neither wants any alternatives for this I want this work to be done within a week". Finally,
with ail her regrets Mr. Mrunal reduced the workforce by30%. On the other hand, the
employees who were waived from Makar joined the competitors with a better package. One
day in his office Mr.Mithen was discussing with Mrs.Mrunal.that the cost of labor in the
organization has been reduced to a great level which increases the net profit also. After
listening to this Mrs.Mrunal said that "it is well-said sir, we have reduced the labour cost and
increased the profit but it is truer that we have missed the great opportunity to grow more by
losing our wealth to the competitors".

CARRYOUT SWOT ANALYSIS FOR THIS SITUATION.

SOLUTION:

SWOT analysis involves identifying the Strengths, Weaknesses, Opportunities, and Threats
in a given situation. Let's carry out a SWOT analysis for the situation described:

Strengths:

1. Well-trained Workforce: Makar has a highly trained and qualified workforce, which
is a significant strength for the organization.
2. Supportive Department Heads: The top management group, including heads of
marketing, HR, and finance, is supportive of Mr. Mukund's vision and ideas,
contributing to a cohesive leadership team.
3. Employee Satisfaction: The organization's focus on employee satisfaction and
development has created a dedicated and satisfied workforce.
4. Success under Mr. Mukund's Leadership: Under Mr. Mukund's leadership, Makar
has achieved several advantages, such as a dedicated workforce, meeting targets on
time, and high-quality supplies.

Weaknesses:

1. Abrupt Change in Leadership: The sudden announcement of Mr. Mukund handing

over the charge to his son, Mr. Mithun, without a transition plan or communication
strategy may lead to uncertainty and concerns among employees.
2. Short-term Focus on Cost Reduction: Mr. Mithun's immediate focus on reducing
costs, particularly through layoffs, without considering the potential long-term impact
on the organizational culture and employee morale.
3. Lack of Open Communication: The decision to implement layoffs without
considering alternative solutions demonstrates a lack of open communication and
collaboration between the new leadership and the HR department.

Opportunities:

1. Skilled Workforce in the Market: The laid-off employees, who are well-trained and
motivated, could be an opportunity for competitors looking to hire skilled talent.
2. Innovation and Growth: The organization has an opportunity to focus on
innovation, employee development, and strategic growth rather than just cost-cutting.

Threats:
 1. Competitor Advantage: The employees laid off by Makar joining competitors with
better packages poses a threat to the organization's market position and
competitiveness.
2. Negative Impact on Company Culture: The layoffs and the perceived disregard for
the workforce's loyalty and dedication may negatively impact the company culture,
leading to decreased morale among remaining employees.
3. Loss of Institutional Knowledge: Layoffs may result in the loss of experienced
employees and their institutional knowledge, potentially affecting the organization's
ability to adapt and innovate in the future.

2.
The biggest real estate developer, Evergrande, a fortune 500 company. This was established
in 1996. It grew very fast on the back of high debts. The country encouraged such strategy
because of growth-hunger of the country. Evergrande is the top-most borrower in the nation.
Presently, the country closed the tap of debts and forcing the industry to start paying off
debts. This company also forced the same pressure. The debt was 3000 billion and that
amounts to 3% of GDP of the country. In 2020, the company bought a soccer team 170
billion. Then built lotus-shaped stadium.
In 2021, the company ventured into Electric vehicle business. The worth is around 10000
billion in April 2021. Not even a single car was sold till date. This month beginning 9th
September 2021 the company confessed that it is under tremendous pressure. This leads to
Domino-effect.
More than 128 banks and 121 non-banking institutions have lent money to Evergrande.
Further it confessed 1.6 million properties. Share price of the company fallen by 80%.
The company approached employees to lend money and they said they will get bonuses. In
12 months the corporate need to repay debts with 1.300 trillion and that time 200000
companies declared bankruptcy.
Answer the questions:
a) Who is responsible for the unleasing situation of the company and the Nation?
b) Analyse the internal and external environment of Evergrande.
c) How the act of Evergrande does affects the stakeholders.

SOLUTION:

a) Responsibility for the Unleashing Situation: The unleashing situation of Evergrande and
its impact on the nation can be attributed to a combination of factors involving both the
company's management decisions and the broader economic environment. Here are some key
factors:
  Company Management: Evergrande's rapid growth on the back of high debts,
extensive diversification into non-core businesses like soccer teams and electric
vehicles without immediate returns, and a heavy reliance on debt financing
contributed to its financial troubles. The decision to approach employees for loans and
the subsequent domino effect further strained the situation.
 Government Policies: The encouragement of debt-fueled growth by the government,
driven by the country's growth hunger, played a role in Evergrande's strategy.
However, the shift in government policy, closing the tap on debts and pressuring
industries to repay, contributed to the financial stress on Evergrande.
 Global Economic Conditions: External factors, such as global economic conditions,
could have impacted Evergrande's ability to manage its debt. Economic downturns or
disruptions can affect real estate markets and investor confidence.

b) Internal and External Environment Analysis of Evergrande:

 Internal Factors:
o Debt Management: Evergrande's heavy reliance on debt to fund its rapid
expansion and diversification into non-real estate businesses strained its
financial health.
o Diversification Decisions: Ventures into non-core businesses like soccer
teams and electric vehicles, with substantial investments, may have diverted
resources from the core real estate business.
 External Factors:
o Government Policies: Changes in government policies, especially regarding
debt and repayment, significantly impacted Evergrande's financial situation.
o Real Estate Market Conditions: The overall health of the real estate market,
influenced by economic conditions, played a crucial role in Evergrande's
struggles.
o Global Economic Conditions: Economic factors beyond Evergrande's
control, such as global economic downturns, might have affected its ability to
manage debts and investments.

c) Impact on Stakeholders:

 Investors: Shareholders have experienced a substantial loss as the company's share

price fell by 80%. Bondholders and creditors are at risk of not receiving full
repayment.
 Employees: Employees who lent money to the company may face challenges in
getting their funds back. The workforce is also at risk due to the financial instability
leading to potential job losses.
 Banks and Non-Banking Institutions: More than 128 banks and 121 non-banking
institutions that lent money to Evergrande are exposed to financial losses.
 Homebuyers: The confession of 1.6 million properties indicates potential delays or
uncertainties for homebuyers, impacting their investments and housing plans.
 Suppliers and Business Partners: Companies and individuals in Evergrande's
supply chain may face financial difficulties or disruptions due to the company's
financial distress.
  Government and Economy: The government is dealing with a potential economic
fallout, including a wave of bankruptcies affecting around 200,000 companies. The
overall economic stability may be at risk.

3.
Reebok is an American-inspired, global brand that creates and markets sports and lifestyle
products built upon a strong heritage and authenticity in sports, fitness and women’s
categories.

Vision: Reebok is dedicated to each and every athlete – from professional athletes to
recreational runners to kids on the playground – with the opportunity, the products, and the
inspiration to achieve what they are capable of.

Mission: At Reebok, they see the world a little differently and throughout their history have
made their mark when they have had the courage to challenge convention. Reebok creates
products and marketing programs that reflect the brand’s unlimited creative potential.
Reebok, understands that people are, above all, unique. Reebok’s positioning reflects this.
Reebok celebrates their individuality, their authenticity and the courage it takes to forge their
own path to greatness.

Purpose: Commitment to Corporate responsibility is an important legacy and hallmark of the

Reebok brand. For two decades, human rights, through the Reebok. Human rights
programme, was the primary focus of this effort. Reebok has expanded on what had been
built and created a Global corporate citizenship platform with a purpose for the brand that
will help underprivileged, underserved youth around the world fulfill their potential and live
healthy, active lives.

Examie the initiatives of Reebok, for developing its image. Is there effort consistent with
their objectives?

Based on the information provided, Reebok's initiatives for developing its image appear to be
consistent with its stated vision, mission, and purpose. Let's examine some key points:

1. Athlete Dedication: Reebok's vision emphasizes dedication to every athlete, from

professionals to recreational runners to kids. Their commitment to providing
 opportunities, products, and inspiration for individuals to achieve their potential aligns
with their image-building efforts.
2. Challenging Convention: Reebok's mission highlights their history of challenging
convention, creating products, and marketing programs that reflect unlimited creative
potential. This suggests a commitment to innovation and a unique approach,
reinforcing an image of courage and individuality.
3. Celebrating Individuality: The mission emphasizes celebrating individuality,
authenticity, and the courage to forge one's own path. This is likely an effort to
establish a brand image that resonates with consumers who value uniqueness and
personal expression.
4. Corporate Responsibility: Reebok's commitment to corporate responsibility,
especially through the Reebok Human Rights Program, reflects a dedication to social
issues. The evolution of their efforts to a broader Global corporate citizenship
platform aligns with their purpose of helping underprivileged youth worldwide fulfill
their potential. This demonstrates a consistent effort to contribute positively to
society.