Case Study

1. Mr. ABC father has a good business of iron and steel. He wants to go to
USA for his MBA but his father thinks that he should join the business. On
the basis of emerging trends, do you think that Mr. ABC should send his
son to USA? Give any three reasons in support of your answer?

2. XYZ power Ltd. set up a factory for manufacturing solar torch in a remote
village as there was no reliable supply of electricity in rural areas. The
revenue earned by the company was sufficient to cover the costs and the
risks. The demand of torch was increasing day by day, so the company
decided to increase production to generate higher sales. For this they
decided to employ people from the nearby village as very few job
opportunities were available in that area. The company also decided to open
schools and crèches for the children of its employees.
i. Identity and explain the objectives of management discussed above.
ii. State two values which the company wanted to communicate to the
society.
Answer 1.
Yes, according to me, Mr. ABC should send his son to USA for his MBA because
management is being recognized as a profession to a great extent because of the
following reasons:
a) Well defined body of knowledge: Management is considered to be a well-
defined body of knowledge that can be acquired through instructions. As a
separate discipline, it contains a set of theories and principles formulated by
various management experts. Moreover, it is taught in various schools and
colleges all over the world.
b) Ethical code of conduct: Management in practice, like other professions, is
bound by a code of conduct which guides the behaviour of its members.
Therefore, acquiring a degree in management will equip him with the good
managerial skills and approach.
c) Service motive: A good management course will provide him an insight into
the multiple goals that an organization should pursue. This knowledge will help
him to serve both the objectives of profit maximization and social welfare
effectively for his company.
Answer 2:
(i) (a) Social objectives: Objectives which are desired to be achieved for the
benefits of the society is known as social objectives. As a part of society ,every
organization whether its is business or non-business has a social obligation to
fulfil. This refers to consistently creating economic value for constituents of
society. for example, using environmental friendly methods of production, giving
employment opportunities to the disadvantaged section of society and providing
basic amenities like schools and crèches to employees.
(b) Organization objectives: Business needs to add to its prospects in the run,
for this it is important for the business to grow. Growth of a business can be
measured in terms of sales volume increase in the number of employees, the
number of products or the increase in capital investment, etc.
(ii) (a)employment opportunities, (b) environmental concern (c) community
development by opening schools and crèches