Case Study with Solution

Case Study with Solution

DD is the India’s premier public service broadcaster with more than 1,000 transmitters covering 90% of the country’s population across an estimated 70 million homes. It has more than 20,000 employees managing its metro and regional channels. Recent years have seen growing competition from many private channels numbering more than 65, and the cable and satellite operators (C & S). The C & S network reaches nearly 30 million homes and is growing at a very fast rate.

DD’s business model is based on selling half-hour slots of commercial time to the programme producers and charging them a minimum guarantee. For instance, the present tariff for the first 20 episodes of a programme is Rs. 30 lakhs plus the cost of production of the programme. In exchange the producers get 780 seconds of commercial time that he can sell to advertisers and can generate revenue. Break-even point for producers, at the present rates, thus is Rs. 75,000 for a 10 second advertising spot. Beyond 20 episodes, the minimum guarantee is Rs. 65 lakhs for which the producer has to charge Rs. 1,15,000 for a 10 second spot in order to break-even. It is at this point the advertisers face a problem – the competitive rates for a 10 second spot is Rs. 50,000. Producers are possessive about buying commercial time on DD. As a result the DD’s projected growth of revenue is only 6-10% as against 50-60% for the private sector channels. Software suppliers, advertisers and audiences are deserting DD owing to its unrealistic pricing policy. DD has three options before it. First, it should privatise, second, it should remain purely public service broadcaster and third, a middle path. The challenge seems to be to exploit DD’s immense potential and emerge as a formidable player in the mass media.

Questions:

(i) What is the best option, in your view, for DD?

(ii) Analyse the SWOT factors the DD has.

(iii) Why to you think that the proposed alternative is the best?

Answer

(i) For several years Doordarshan was the only broadcaster of television programmes in India. After

the opening of the sector to the private entrepreneur (cable and satellite channels), the market

has witnessed major changes. The number of channels have increased and also the quality of

programmes, backed by technology, has improved. In terms of quality of programmers,

opportunity to advertise, outreach activities, the broadcasting has become a popular business.

Broadcasters too have realised the great business potential in the market. But for this, policies

need to be rationalised and be opened to the scope of innovativeness not only in term of quality

of programmes. This would not come by simply going to more areas or by allowing bureaucratic

set up to continue in the organisation.

Strategically the DD needs to undergo a policy overhaul. DD, out of three options, namely

privatisation, public service broadcaster or a middle path, can choose the third one, i.e. a

combination of both. The whole privatisation is not possible under the diversified political

scenario. Nor it would be desirable to hand over the broadcasting emotively in the private hand

as it proves to be a great means of communication of many socially oriented public

programmers. The government could also think in term of creating a corporation (as it did by

creating Prasar Bharti) and provide reasonable autonomy to DD. So far as its advertisement tariff

is concerned that can be made fairly competitive. However, at the same time cost of advertising

is to be compared with the reach enjoyed by the doordarshan. The number of viewers may be far

more to justify higher tariffs.

(ii) The SWOT analyses involves study of strengths, weaknesses, opportunities and threats of an

organisation. SWOT factors that are evidently available to the Doordarshan are as follows:

S – Strength

Cost Academy Strategic Management-94



More than 1000 transmitters.  Covering 90% of population across 70 million homes against only

30 million home by C & S. More than 20,000 employees.

W – Weakness

 Rigid pricing strategy. Low credibility with certain sections of society. Quality of program’s is not

as good as compared to C & S network

O – Opportunities

 Infrastructure can be leased out to cable and satellite channel. Digital terrestrial transmission. 

Regional focused channels. Allotment of time, slots to other broadcasters.

T – Threats

 Desertion of advertisers and producers may result in loss of revenues. Due to quality of program

the reach of C & S network is continuously expanding. As the C & S network need the trained

staff, some employees of DD may switchover and take new jobs. Best of the market-technology

is being used by the private channels.

(iii) It is suggested that the DD should adopt a middle path. It should have a mix of both the options.

It should economise on its operational aspects and ensure more productivity in term of revenue

generation and optimisation of use of its infrastructure. Wherever, the capacities are

underutilised, these may be leased out to the private operations. At the same time quality and

viewership of programmes should be improved. Bureaucracy may reduce new strategic initiatives

or make the organisation less transparent. Complete privatisation can fetch a good sum and may

solve many of the managerial and operational problems. However, complete public monopoly is

not advisable because that denies the government to fully exploit the avenue for social and

public use. The government will also lose out as it will not be able to take advantage of rising

potential of the market.

Some Interview Questions and their possible Answers.

Some Interview Questions and their possible Answers.

Most frequently asked Interview Questions the  possible answers ( In such questions the right answer may differ for each candidate)

• Why have you selected to join us?
  I always longed to work with a company. I am familiar and whose products I have used and trusted.
  (Narrate briefly how you can prove your statement. Do good research on the company before facing the interview)
• Where do you want to be in 5 years?
  I would like to be frank. Judge me from the work and I am sure you will put me right where I want to be.
  Note : Do not over ambitious and speak in a way that you are not satisfied with your current job which you have applied for.
• Describe your ideal career?
  Talk of what you enjoy most your skills and natural talents. Do not specify your goal and any job title.
• Tell me something about yourself
  Do not just repeat what you have given in your resume. Be ready with the answer, a talent or something you did out of the ordinary. You can sound it as unique or give it a touch of your personality.
• How did you apply for the job?
  Be specific and give a straight answer of how you came to know about the vacancy. If it was advertised specify how you came across it.
• Why do you want to work here?
  Have a research done about the company / organization
  Give just one or two reasons why you are interested. You can add these points (1)  company's reputation(2) desire to join the specific field of interest.
• Don't you think that you are over qualified for this job?
  (This question is put to you to puzzle a candidate. Be calm and answer the question with a positive and confident approach)
  Answer in the negative
  My experience and qualification will just help me to do the job better. Moreover I am at establishing a long term relationship which my qualification will favor me to handle more responsibilities and help me to rise to your expectations.
• What competition do you see if you take up this job?
  When you answer, clearly show that you have researched carefully and acquired more in-depth knowledge about the company.
  Enumerate some positive and negative traits of the company and their competitions.
  Feel confident to show that competition is not an unexpected one.
• What would you do if our competitor offer you a job?
  Show your confidence in the company's worth, stress the point 'I would say No' by pointing out some qualities you found out in your research about the company.
• Why are you leaving your current job?
  You should give two or three reasons  for leaving.
  Lack of challenge, focus on the limitations etc. Point out your ambition to prove your worth confidently. 

Importance of Communication for Healthy Relationships

Communication is vital in creating and maintaining a relationship, whether it be an intimate relationship—such as with a partner, child, or friend—or a professional relation­ship—such as with a co-worker, supervisor, or client. Your communication skills affect how you solve problems, how you resolve conflict, and the level of trust you generate in your relationships. A lack of communication may result in confusion, misunderstandings, and the development of poor communication pat­terns.

Barriers to Effective Communication

Barriers to communication are things that prevent people from understanding a mes­sage, or understanding it the same way. Some common barriers to communication include:

·   Emotional barriers. There is a greater potential for misunderstanding when emotions are involved. For example, a sender who is upset or angry may not be able to effectively communicate his or her feelings and ideas. A receiver in a similar state may ignore or distort what the other person is saying.

• Environmental barriers. This can include a number of factors includ­ing, interruptions, distractions, physi­cal environment issues (lighting, noise, comfort), talking too softly, physical distance, a physical barrier between sender and recipient, etc.

• Timing barriers. The timing of a com­munication can affect it’s ability to be understood. For example, there may not be enough time to communicate the mes­sage fully, or it may be too early or too late in the day for someone to give the communication his or her full attention.

• Perceptual barriers. Each person experi­ences events—including communica­tions—in a way that is unique to him or her. A sender will communicate in a way that makes sense in his or her reality. A receiver understands a communication in a similar manner..

Communicating About Tough Issues

Effective communication skills are particularly critical when dealing with difficult issues. Consider the following strategies for commu­nicating about tough issues.

• Talk early. People often become aware of an issue sooner than you think. By dealing with an issue sooner rather than later, it is easier to maintain your objectivity and self-control, prevent the issue from escalat­ing, and avoid misinformation.

• Take out time for your conversation. Take out time to talk over the issue, when you won’t be overheard or interrupted.

• Initiate the conversation. You may need to be the one to start the conver­sation. This can be uncomfortable for many people. Consider saying some­thing such as,” Can we talk about it (soon)?”

 • Think ahead of time about what you want to say and how you want to say it. Be specific about what the issue is and give concrete examples of things you have observed .

• Explore the other person’s thoughts, feelings and beliefs. This will help you understand how the other person perceives the issue, which can help you address your concerns in a way that takes into account his or her perspec­tive.

 • Talk about your own feelings and be personal: Statements such as, “I’m worried or concerned,” “I would like” and “I feel,” can ease tension and help the other person learn more about your point of view.

• Be open. It is critical to develop a rela­tionship in which the other person feels comfortable expressing his or her feelings and concerns and asking questions freely.

• Be encouraging, supportive and positive. Don’t try to avoid topics because you are uncomfortable, unsure of the answer or don’t have time to dis­cuss them. If you can’t address a ques­tion or if you don’t have an answer, be honest about it, but say you’ll try to find out, and make certain to follow through.

• Be honest. Give straightforward and honest information and address all the issues. Honesty builds trust. Avoidance, in whole or in part, may lead to con­tinued—or escalated—problems or to the person having to seek information elsewhere and being misinformed.

• Be patient. Allow the other person to set a pace that’s comfortable for him or her, formulate his or her thoughts and put those thoughts into words.

Speaking

The goal in speaking is to convey a message to another person so that the other person understands it exactly as you intended it. The following strategies can help you sharpen your verbal communication skills.

• Make certain you have the other per­son’s attention.

• Focus on your feelings, be less defensive­ness, and help the other person under­stand your point of view rather than feeling attacked.

• Speak so the listener will understand.

• Encourage open-ended conversation. Use open-ended questions that promote a response, avoid one word answer.

• Be open. Share your feelings truthfully … but respectfully. Approach the dis­cussion as an opportunity for the other person to learn something about you.

• Be specific and objective. Identify the specific issue at hand and how it makes you feel. Avoid generalizing statements such as “always,” “ever” or “never.”

• Be positive. Focus on the other person’s positive points. Make sure that positive feedback outweighs criticism.

• Try to resolve conflicts, not to avoid and win them.

Conclusion

Communication is built on mutual respect. Communicating assertively means that you speak up for yourself, while respecting the right of others to do the same. It also demonstrates that you are sensitive to the rights of others and willing to work constructively to reach a mutually agreeable outcome.It is essential to :

• Stand up for yourself by clearly express­ing your thoughts, feel­ings, rights and interests

• Demonstrate respect for others by con­sidering their needs and rights.

• Develop and expect trust and equality in relationships

Communication is important to build meaningful relationships.We as individuals need to  work on our relationships not only as social practice, but also to build our  ability which will enable us to create and maintain positive and long-lasting relationships. 

Rupee Vs Dollar

For anything to qualify as money whether it is Rupee, Dollars, Euro, gold, it must have three qualities-The measure of value, general acceptability as a medium of exchange and the store of value. Since Rupee in India contain all the three attributes, is accepted as money in India but internationally, it is not universally acceptability because a resident in China may not accept the Rupee as a medium of exchange for the export of mobile hand sets. Similarity Indian exporter will not accept Yuan, the Chinese currency as mode of payment. In that care, dollar is the international acceptable currency. Therefore every country had to convert its currency into Dollar for international transaction, and the rate at which the domestic currency is exchanged with the external foreign currency, it is called as foreign exchange rate or the forex rate. In other words, the exchange rate is the price of one currency in terms of other. The exchange rate systems are primarily of two forms- 1. The fixed exchange rate system Under this system the monetary authority of the country fixes the price of domestic currency is terms of major currencies like Dollar, Pound, Euro, Yen etc. Such a system provides stability in the market as the traders being assured of the future rates can conduct business smoothly. Further this system wipes out the volatility in the market and hence there is no speculation in the system. Though this system provides stability in the market but it puts too much onus on the monetary authority as the authority is responsible for maintaining the fixed exchange rate system. If RBI fixed the exchange rate at Rs 50/$, then in order to maintain that rate, RBI will have to keep a reserve of foreign exchange. If market force pushes the exchange rat to Rs 52/$, then RBI will sell the dollars from its reserves to keep exchange rate at Rs 50/$ and if market forces appreciates the exchange rate at Rs 48/$ then RBI will purchase the dollars from the market to maintain the rate at Rs 50/$. 2. Flexible Exchange Rate System In this system, the exchange rate is determined by the forces of demand and supply and there is no intervention by the monetary authority. It is based on the principle of Laissez-faire. In this system the exchange rate moves automatically and freely to equate the supply and demand. It does not allow the surplus of deficit to build up and eliminates the problem of scarcity or surplus of any currency. Theoretically, there is no need for foreign exchange reserves when exchange rates are moving freely. In a country where there is scarcity of dollars, the authority will allow the currency to depreciate to clear tha scarcity instead of supplying Dollars from its reserves to maintain the exchange rate system. These are the two extreme cares of foreign exchange system but in reality, there are other intermediate system followed by different countries. Exchange Rate System Salient Features Important Examples 1. Free Float Value of Foreign exchange freely determined. Virtually no country has pure float. The U.S. Germany and Switzerland (and Japan, according to some) come close. 2. Managed Float A managed float may be conceived as a float with wide bands. With the (undisclosed) positions of the bands providing the criterion for intervention. In this system, central bank intervention in the market is sporadic. Several advanced countries have adopted this regime e.g. Canada, Australia, Mexico. Etc. India also falls into this category. 3. Floating with a Band (Target zone) The national exchange rate is allowed to fluctuate. Somewhat freely, with a band. This is the exchange rate arrangements of the European Monetary System, known as ERM. 4. Crawling Band A band system where the central parity crawls over time. Israel adopted this system in December 1991. Chile had widening band from 1986 to mid-1998. Italy between 1979 and 1991. 5. Crawling Peg The nominal exchange rate is adjusted periodically to a set of indicators (usually lagged inflation differentials) and not allowed to fluctuate beyond a narrow range. This system was popular during the 1960s and 1970s in Chile, Colombia and Brazil. 6. Fixed-but-Adjustable Exchange Rate This is the Bretton woods system. The nominal exchange rate system is fixed. But the central bank is not obliged to maintain the parity indefinitely. This is the most popular system. Most developing countries held on to (variants of) this system (Mexico, 1983-1993) after the formal collapse of Bretton Woods, and continue to do so in practice. 7. Currency Board In this system, the exchange rate is strictly fixed, with institutional (legal and even constitutional) constrains on monetary policy. The monetary authority can only issue domestic money when it is fully backed by inflows of foreign exchange. When faced with major external shocks countries have abandoned this regime. Currently, Hong Kong has a currency board. 8. Full Dollarisation In this system, the country concerned gives up its monetary autonomy completed by adopting another country’s currency. There have been only few instances of full dollarisation. It worked well in Panama.  Source: Edwards and Savastano, National Bureau of Economic Research Exchange Rate system in India Before liberalization India was pursuing a fixed exchange rate regime where till 1946, it was fixed with British pound sterling and after that it was linked with the Dollar. Though the exchange rate is determined in almost every major currencies but it is primarily linked with the dollar as most of international trade is conducted in terms of dollar. In 1992-93, Liberalized exchange rate system (LERMS) was initiated which was a form of dual exchange rate system. Under terms, Rupee dollar exchange rate system, exporters were allowed to convert 60% of their forex earning at market rate while the balance 40% was converted at official rate. In 1993-94, the uniform market exchange was introduced where 100 % conversion of rupee under flexible exchange rate system was allowed for almost all transaction of current account. In 1994-95, Rupee was made fully convertible on current account. Rupee Vs Dollar in India The period of 2001 to 2011 had been very tumultuous for the exchange rate of Rupee against US $. While in July 2007, it reached the 9 year high and closed at Rs 40.9/$, in November 2011, it depreciated 19% since August 2011 to close at all time low Rs 52.28/$. In the first half of the present decade, Indian economy was one of the fastest growing economies with strong macroeconomic indicators like huge forex reserves, low debt- GDP ratio, low current account deficit etc which were instrumental in bringing huge inflow of Dollar in the form of FII, FDI, NRI deposits etc. The ample dollar supply coupled with unprecedented export performance further augmented the dollar supply, ultimately resulting in the steep appreciation of Rupee. The latter half of the decade witnessed two crises in quick succession - the global financial crisis in 2008 and the Euro Debt crisis of 2010-11. The 2008 crisis in the west resulted in the withdrawal of FIIs, decline in FDI and sluggish export performance resulting in the scarcity of dollar supply, resulting in the depreciation of Rupee against the US $. The weak macro economic indicator further added to the woes. With fiscal deficit exceeding the rate limits, high rate of inflation, high current account deficit along with the series of corruption seams and the policy paralysis resulted in low confidence among the foreign investors about Indian economy. Though the Euro crisis of 2010 is much less in the magnitude if compared to the crisis of 2008 which was the worst crisis is since great depression in 1930s, the impact of the Euro crisis on India is found  to be much adverse than that of U.S. sub prime crisis. In fact, India weathered the 2008 crisis better than most of the other economic. India’s huge foreign exchange reserves of $314 billion in 2008 played crucial role in cushioning the impact of the shock of 2008 crisis. The current reserves at $308 billion are almost at same level but situation is a little more worrisome as the current forex reserve –GDP ratio of 16.5% is one of the lowest in Asia. The current India GDP is around Rs 48.8 lacks crores.  Further India’s current account deficit in 2007-2008 was 1.3% of GDP but in March 2011, it widened to 2.6% of GDP. Inflation rate in double deficit is further aggravating the crisis the situation. This high rate of inflation inflates the production cost making Indian products less competitive in the international marked further putting the pressure are current account deficit. If there are less dollar inflows to fund the current account deficit, only recourse available in the flexible exchange rate system is the depreciation of Rupee. In order to prevent the Rupee further from depreciation, RBI will have to sell dollar in the forex market which will erode the forex reserves. But more worries are in store for 2012. According to Avinash Celestine and Mishita Mehra, the current stock of NRI deposit is around $52 billion, of which $43 billion will mature by June, 2012. The total volume of short-term debt due for payment next year comprises NRI deposits, foreign borrowing by companies, Government’s borrowing is of around $137 billion. Further the portfolio investments which are very volatile in nature and can flow out of country at any time (As seen in 1999 East Asian crisis are in 2008 in India). Such reserves accounted for $142 billion in September 2011. The portfolio investment along with the short term debt payable in next year constitutes 88% of forex reserves while during 2008 crisis; they were 57% of total reserves. Further, currently the Indian forex reserves are enough to fund the imports of around 10 months which is lowest since 2011. Thus the current scenario predicts a growing future for Indian Rupee at least in short term. If India has to grow at around 10% per annum in the 11th and 12th five year plan, the current account deficit is bound to increase due to the investment demand and to fund this deficit, India had to regain the confidence of foreign investors, and make itself a favorite investment destination. For that matter, the efforts had already been started exemplified by 51% FDI is Multibrand retail and 100% FDI in single brand retail. Government is also contemplating to allow 26% FDI in domestic airlines by foreign airlines. Currently foreign airlines are barred from investing in India aviation sector. Further, to infuse the dollar supply, RBI had raised interest for NRI deposits the norms for the companies to borrow funds from the foreign markets has been further liberalized. All these measures are meant to increase the dollar supply to check the depreciation of Rupee. For the sustained and inclusive growth, the stable exchange rate system along with low inflation, stable interest rates etc are required. Such factors are conducive for the investment demand which is an important prerequisite for faster growth in the developing countries. There are many instruments present in the quiver of RBI to maintain the stability in the exchange rate of rupee but they will not provide the sustainable solution until and unless the macroeconomic indicators of the economy are strengthened. Such indicators will be improved by the initiation of second generation of reforms as the country is feeling the reform fatigue of the 1991 reforms. ============================================