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Case
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Reference no. 906-021-1
Authors: Ajoy Ivaturi (T A Pai Management Institute); Santosh S Raghavan (T A Pai Management Institute)
Published in: 2006

Abstract

The case finds immense application in management education as it combines several aspects related to business, that any student, irrespective of his field of specialisation, would find extremely valuable. Ashok Leyland is one of India''s leading manufacturers of commercial vehicles. The company also manufactures special vehicles and engines for industrial, genset and marine requirements. In 1996 the company launched its first tipper called Cargo. The Cargo promised to bring with it a new set of values and an unmatched basket of benefits, ushering in a change. Unfortunately, it did not take off as expected and sales started to dip. A study revealed that the Cargo suffered minor technical defects, which were adversely affecting its performance. The company then invested heavily in research and development and ensured that all of the defects were completely eliminated. The tipper was then launched under the name Ecomet, but sales continued to remain dull. The company then decided to conduct market research to try and find out the possible reasons for the failure and to decide what the future course of action should be. The case holds significant relevance in the areas of strategic management: The case calls for a strategic decision to be made that needs to be based on several aspects which go beyond the data presented. Quantitative analysis: the entire case rests on quantitative evaluation of the data that is presented as exhibits and drawing inferences from the given data. Another aspect to be noted is that the instructor places emphasis only on the data presented and not on how the figures have been arrived at. If the students do exhibit interest in the methodology then the instructor can go ahead and give them a suitable explanation. Decision making: the case places emphasis on what needs to be done based on the data collected. Concentrating on the decision to be made, its implications, and the variables that might affect or limit the decision-making procedure enables an effective learning process.
Location:
Other setting(s):
June 2004

About

Abstract

The case finds immense application in management education as it combines several aspects related to business, that any student, irrespective of his field of specialisation, would find extremely valuable. Ashok Leyland is one of India''s leading manufacturers of commercial vehicles. The company also manufactures special vehicles and engines for industrial, genset and marine requirements. In 1996 the company launched its first tipper called Cargo. The Cargo promised to bring with it a new set of values and an unmatched basket of benefits, ushering in a change. Unfortunately, it did not take off as expected and sales started to dip. A study revealed that the Cargo suffered minor technical defects, which were adversely affecting its performance. The company then invested heavily in research and development and ensured that all of the defects were completely eliminated. The tipper was then launched under the name Ecomet, but sales continued to remain dull. The company then decided to conduct market research to try and find out the possible reasons for the failure and to decide what the future course of action should be. The case holds significant relevance in the areas of strategic management: The case calls for a strategic decision to be made that needs to be based on several aspects which go beyond the data presented. Quantitative analysis: the entire case rests on quantitative evaluation of the data that is presented as exhibits and drawing inferences from the given data. Another aspect to be noted is that the instructor places emphasis only on the data presented and not on how the figures have been arrived at. If the students do exhibit interest in the methodology then the instructor can go ahead and give them a suitable explanation. Decision making: the case places emphasis on what needs to be done based on the data collected. Concentrating on the decision to be made, its implications, and the variables that might affect or limit the decision-making procedure enables an effective learning process.

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Location:
Other setting(s):
June 2004

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