Business buying model : Bosch India case study

Business buying model:  Bosch India.

© Prasad Kulkarni, Faculty, 

This case let is prepared in 2008 and updated in 2019.
Introduction to MICO Bosch.

MICO- Bosch is the subsidiary of one of the world’s largest private industrial company Bosch Germany. Motor Industries Company Limited(MICO) founded in the year 1951  and later acquired by Bosch Germany(ibef.org, 2019). The company manufacturers its products from Bengaluru, Naganathpura, Nasik, and Jaipur

It is the largest manufacturer of diesel fuel injection equipment. The company operates in three major segments. They are automotive technology, consumer goods and building technology and industrial technology. Bosch uses Indian office as an outsourcing destination for diesel fuel injection equipment and pumps. Therefore it has to meet the international standards set for engineering products in different countries.  To ensure the adherence to international standards company should have best procurement system in place. 
Key success factors of MICO- Bosch 
 Mico- Bosch success today  is largely due to the adoption of technology. Further, new heights Mico Bosch has reached because of support of the parent company.Added to this, the company has spent considerable amount on research and development. Today, MICO spends 2-3% of total revenue on Research and Development(ibef.org, 2019). Apart from this, the company has diversified into car service business to boost their revenues.
MICO Bosch as the exporter:
 MICO Bosch emerged as the sourcing hub for the parent company. The Mono Block pumps manufactured at Czech republic, Multi cylinder pumps manufactured at Austria, Injectors and Nozzle from France, and regulators from cardiff plant shifted to Manufacture from India and MICO Bosch emerged as the sourcing hub for the parent company.

 Purchasing

 Mico Bosch purchasing department procures the materials from world class suppliers who can supply the goods at best prices. To obtain the required quality and efficiency Bosch always looks for the long term relationship with their suppliers. Major products procured by the Bosch India are steels, castings, forgings, turned and machined parts, sintered components, fasteners, springs, bearings, assemblies, sub-assemblies, packing materials, logistic services and capital goods.
Bosch worldwide is driven by a unique philosophy of BeQik. This represents Bosch Group's commitment towards Best Quality, Innovation, Customer Satisfaction and Continuous Improvement

Procuring the world class product at an affordable price is a challenge. To accomplish that challenge the company has set the following guidelines.

Ø  Customer Satisfaction

Ø  Quality ( Zero defect)

Ø  Supplier Development (training and development)

Ø  Fairness and Openness

Ø  International Activities

Ø  Systems Network

Ø  Market and Products

Ø  Environmental Responsibility

Ø  Continuous Improvement

Ø  Associate Development

As Bosch India procures large assortments it felt the need of dividing the purchasing deprtment into two divisions. They are corporate logistics and purchase ( CLP) and plant logistics and purchase(PLP). Corporate logistics and purchase division sources raw materials, standard components, trade goods and capital goods. They also ensure proper logistics contracts and customs clearance. The plant purchase department is responsible for plant specific parts, machined components, mechanical sub assemblies and capital goods.

Any company that wishes to become supply chain member of  Bosch India should  fulfill following criteria:

1. All suppliers should be QS 9000 certified manufacturers.

2. The supplier should get A rating from the company. the rating methodology is given below

Audit score %	Ranking	Meaning
90 to 100	A	Full compliance
80 to less than 90	AB	Mainly compliant
60 to less than 80	B	Conditionally compliant
Less than 60	C	Not compliant

Discussion Questions:

1. ‘Guidelines of BOSCH purchasing can be used as vendor rating parameter’ Do you agree with the statement? Comment.

2. Discuss the advantages of dividing the purchasing department.
References:
1.

(2019). Ibef.org. Retrieved 25 October 2019, from https://www.ibef.org/download/MICO.pdf

Radio Audience Measurement case study

Radio Audience Measurement (RAM): Understanding radio listener’s behavior.

© Prasad Kulkarni, 

This case let is prepared in 2008.

Radio has emerged as an attractive media to reach urban consumer. The radio once considered as u an attractive option to promote the product has shown its resilience. The entry of private companies in the FM space rejuvenated the competition. The big companies like Reliance, Sun network, Sky group, Bennett and Coleman and Jubilant group further fuelled the competition. Every company started declaring themselves as No.1. This has resulted in the utter confusion in the minds of advertisers. To avoid this confusion TAM India network, Neilson and IMRB introduced the concept Radio Audio Measurement (RAM).

A methodology used in the Radio Audience Measurement:

Radio Audience Measurement will pass through three phases. They are radio establishment survey, Panel recruitment, counseling and reporting, and training.

1. Radio establishment survey: In this stage radio ownership, a reach of the radio channels and habits of an audience are measured. This will help Ram to identify the target panel members by whom company gets continuous data. This survey was conducted for 7 weeks in which 4.5 weeks are used for field work, 1.5 weeks for validation and one week for reporting and analysis and presentation. This annual survey will have 3000 sample per city. The survey is conducted through random sampling method keeping in mind about the SEC, age and gender control.

2. Panel recruitment, counseling, and reporting: This phase involves three stages. In the first stage, survey sample profiling is done so that company can recruit the right audience for the panel. In the second stage recruitment of the profiled sample will take place and in the last stage which is called as cool off period panel performance are measured against set standard norms. This 11-week long phase will see that only one person is selected per home and 480 individuals are selected per city. This also keeps in mind that it selects 120 individuals /SEC, 240 individuals /gender and 96 individuals per age band.

3. Training:  The selected panel members are trained using dummy data and e- learning curriculum are given.

Conflicting views:

Radio audience measurement is not just TAM India’s domain; Media research users’ Council (MRUC) conducts ILT (Indian listenership track). ILT depends on the day after recall method i.e. listeners are asked about the program after one day of listening. RAM collects its data by monitoring the panel’s dairy system. Prashant Pandey CEO of Radio Mirchi openly expressed his reservations against dairy system used in the TAM’s research.  Contradictory views have emerged from the star group’s radio city which expressed their happiness about the TAM‘s radio audio measurement.  Some of the radio industry insiders feel that electronic system which measures automatically are better than sample-based surveys.  But the cost is a big issue in electronic measurement. Anand Chakravarthy of Big 92.7 feels that these radio audience measurement agencies should give weekly data rather than monthly data. Some industry observers feel that numbers of cities covered are not enough to conclude on radio listenership. Add to all these, IMRB a research agency introduced radio express another measurement system which further complicated the advertisers' media planning.

Discussion Questions:

1. Which one of the radio measurement do you think appropriate for the Indian industry? Comment.

2. Is it possible to measure the behavior of a listener through an electronic medium? If yes give reasons.

Just for your size case study

Just Your Size Designers: Understanding the consumer buying behavior.

© Prasad Kulkarni, Faculty.

Just Your Size Designers offers readymade and custom fit clothes for medium to plus size women who usually find it very difficult to find something they can wear, which fits great and looks good on them. If they go to their neighborhood tailor, there is no guarantee of quality, no advice, no fashion trends, no customization, low quality of work, no trials….phew! On the other side of the spectrum, there are exclusive designers who give you the latest but it costs the moon. So what does one do to get the best of both worlds? The answer is “Just Your Size Designers”.

Just Your Size offers custom fit and ready made clothing for medium to plus size women in Bangalore, India. Just Your Size Designers, offers value in terms of – the right fabric, the right cut and design, the right look and style to suit every individual, at the right price. The company encourages its customers to dress well and most of its customers compliment them and come back because of the ‘feel good’ factor. Some have also told the company about the compliments they get from their friends! Just your size designers make sure that the customers get the right style and fit by encouraging them to try the dress and even make a few changes, till they are happy. The range of fabric includes Cotton, Crepes, Chiffon, Georgettes, Linen, Jute and Satin. You can get a good collection of Indian and Indo Western wear – from Tunics, Kurtis, Shirts, Tops, Skirt sets, Pant sets, Loungewear and even maternity wear. The size range starts from M to XXXXL and the prices are reasonable – starting at Rs 400. Just Your Size Designers also specializes in bridal wear. If you want to look and feel gorgeous on that special day of your life, visit Just Your Size Designers 2-3 months before your wedding and based on your budget, you can get a custom made designer trousseau that will make you feel like a princess. The company believes in the mantra – look good, feel good at the right price. It helps customer to discover in a new way. According to shiwani talwar Director Just your size “we try and look at you as an individual and then advice you on how you can look better, it is important that every woman should make her own style statement rather than blindly following the latest fashion trends”.

a. What is the consumer behavior of just your size designer’s products?

b. Do you think Just for you designers should use celebrity endorsements to promote their products? Comment. 

Data fabrication case study

Data fabrication

©  Prasad Kulkarni, Faculty.

Topic: Marketing research.

      Mr. Suryaputra is working for Suchitra private limited, a marketing research organization since two months. Suchitra is a well known, recognized marketing research company. It offers market research solutions to large clients cutting across various industries.

      Mr. Ganesh and Mr. Narayan are working as business development executives in a marketing department of Suchitra Private Limited. Both of them get the research project from clients and give it to operation team. The operation team analyzes the data and marketing strategy is written on the basis of data interpretation by the research team. The final report is given to Miss Jhanvi Who looks after the operation department.  In turn, this report is handed over to Mr. Ganesh and Mr. Narayan who gives a verbal presentation to clients.        The research projects are assigned to 20 research analysts in the firm on the basis of their workloads. As numbers of clients are large it is very difficult for the company to have fixed analysts working on the project. Therefore operation department allocated the work internally and externally. Internal analysts work on a sample, construction of questionnaire and interpreting the data. Data collection and data processing is outsourced from Shankar Research Limited.

      Mr. Suryaputra’s responsibilities are interpreting the data and provide the recommendation to the clients. He has completed over 10 projects in the last two months and his works are well appreciated by the clients. He has completed the new assignment on a Friday and submitted to Miss Jhanvi. When Mr. Suryaputra returned to office on Monday he saw the changes in the data processed and a note to see Miss Jhanvi.

      Miss Jhanvi explained that Mr. Narayan would not like the report as client probably not agree with it. She explained that Mr. Narayan took permission to do some correction in the primary data and asked Mr. Suryaputra to write a new report.

      Questions for Assignment:

      1. Is it ethical to change the actual findings of the marketing research report? Support your answer.

      2. What is the impact on the business if the un-fabricated data sent to clients?

Reference checking

Employee Background and reference checking In India.

Prof. Prasad Kulkarni, Asst Professor, Gogte Institute of Technology, Udyambag, Belagavi.

Theoretical background:

Background screening confirms previous employment experience, education qualification, criminal record and drug test. The reference check is speaking with previous employers about skills and job requirement candidate possess. (Edward sandier) In India, employer asks the employee to provide few references in the selection process to verify later (Ashwatappa)

Background checking and reference checking is found to be necessary by the companies to reduce the risk of data theft, criminal activity, and workplace misbehaviors. (Tech story)

Background checks by the organization have immense benefits to the company. First, it authenticates candidates’ credentials. Second, eliminate any possible legal consequences. The employees with forged education certificates, fake salary slips if found by the external world will tarnish the image of the company. The background check will eliminate any concern of hiring a candidate with criminal background and anti-nationals. In future, it reduces sexual harassment, industrial accidents and labor unrest in the company. It reduces

Outcomes of reference checking

Reference checking will reveal following 10 areas of improvement

1. Confidence
2.  Communication
3. Experience
4. Knowledge
5. Time management
6. Delegation
7. Overcommit
8. Further education.
9. Detailing
10. Accuracy

(Source: the 20 common things that come during reference checks, Harvard Business review)

Indian reference checking and background verification Industry

Indian reference checking and background verification industry has touched Rs 250 crore in 2012. ( Kameswaran). The report by background check company Auth Bridge (2012) found that 19.47% employees fabricated their previous experience information. This has been followed by problems in references (9.93%), Fake addresses (7.08%) and forged education credentials (1.81%). (Check-out latest Employee Background check Trends- Industry wise)

Candidates can be screened pre-hire, pre-offer, pre-joining, post-offer or post-joining. Experts of the industry vouch that outsourcing these processes to background verification companies is a safer and securer way of ensuring that the workforce you hire is trustworthy, is compliant and does not come with any legal, criminal or terrorist history or links.

Employee Background Verification Services comprises of the following checks.

• Previous work or job Verification
• Colleagues and supervisors reference validation
• Academic credentials verification
• Personal data investigation
• Criminal history
• Disputes pending in the court
• National skill registry verification
• Frauds with banking and finance system
• International criminal data check
• Nationality verification
• Drug addiction
• CV Validation

Major players in background and reference checking industry in India

1. ·         A.M.S. Inform Private Limited         
2. ·         AuthBridge Research Services Private Limited
3. ·         Baldor Technologies Pvt Ltd (IDfy) 
4. ·         cFirst Background Checks India Private Limited     
5. ·         SecUR Credentials Pvt Ltd   
6. ·         EVAluationz India Private
7. ·         Footprints Collateral Services Private Limited          
8. ·         First Advantage Private Limited       
9. ·         iCrederity Info Services Private Limited       
10. ·         Integrity Verification Services Pvt. Ltd.
11. ·         Integrated Information Services Pvt Ltd      
12. ·         KPMG
13. ·         Matrix Business Services India Private Limited        
14. ·         Onicra Credit Information Company Limited
15. ·         Pinkerton Corporate Risk Management India Pvt Ltd.
16. ·         Premier Shield Private Limited          
17. ·         Screen Facts Services Private Limited           
18. ·         Supersoft Consultants Private Limited          
19. ·         TOPSGRUP Risk Intelligence Private Limited
20. ·         Verifacts Services Private Limited    
21. ·         Vibrant Screen Private Limited         
22. ·         Walsons Services Private Limited     

(Source: https://nationalskillsregistry.com/background-verification.htm)

Background and reference check cost: The cost for Background and reference check in India varies between Rs 300 to Rs 10,000 per candidate.

Background and reference checking process in few Indian firms. 

1.      Oracle Background and reference check:

In accordance with Oracle policy, background checks are required for individuals being considered for employment. Oracle’s background check vendor is Hire Right, a leading provider of on-demand background screening services. When Oracle initiates the process, Hire Right will e-mail a link to its online application, along with unique login and password information. Candidate should promptly use that information to login and complete (in its entirety) the online form. Hire Right will use the information candidate provided to prepare a background check report for Oracle. Oracle Human Resources will individually assess the results of this report.  
2.      Wipro background and reference check

Wipro hires approximately 10,000 people every year. After their in-house team and third party background Verification Company found that candidates using fake academic and experience certificates, it has delisted 300 companies and 150 colleges. 
3.      TCS background and reference check

 To avoid fraudulent academic certificates TCS has begun accrediting colleges. So far, TCS has accredited 350 campuses. This has resulted in drastic reduction in fraudulent cases to 200. For few positions, TCS even asked aspirants to submit passport in which criminal background check is done by the police. (Schwartz, K. D. 2005). 
4.      Cognizant background and reference check

Cognizant, another IT major, used third party service for background and reference checking. The third parties check the information from HR person of the old employer and also scrutinize the academic credentials of the employee. (Current market) 
5.      Kotak Mahindra background and reference check

The background check is done at the different level for companies. Kotak Mahindra accepts little deviations from age education and experience that may not harm the company at large. 
6.      Yes bank background and reference check

Similar to Kotak Mahindra Bank, Yes Bank allows candidates with minor deviations in age, education and experience details provided by the candidates. (Times of India) 
7.      Mankind Pharmaceuticals background and reference check

Mankind Pharmaceuticals use very stringent behavioral assessment techniques before background and reference checking. Candidates resume with too many skills and experiences were subject to background and reference checking. 
8.      PNB MetLife background and reference check

Fake CV’s are biggest problems to insurance company PNB MetLife. To verify the education and experience of the candidate, PNB MetLife asks the original documents at the beginning of the selection process itself. (Economic times) 
9.      Dell India background and reference check

Dell India not only have stringent selection process but also makes global compliance check mandatory to ensure proper selection.

Issues of background and reference checking in India.

• Layoff technique: Many firms gather background and reference checking as the tool for layoff at the time of crisis.
• Privacy: Many employees voiced the NASSCOM’s background and reference checking as the violation of privacy. In India, privacy laws are not clearly defined.
• Part-time job: Many companies though blacklisted few training centers, colleges and companies yet; they recruit from these sources for a contract employee. Their main motivation is to reduce the Human resource cost. This creates the dilemma between accredited and non-accredited centers.
• Lack of database: Unlike the USA where the data of citizens are clicked away, In India employee database is not formed. This makes third party background and reference checking companies to go physically and verify the documents. (Financial Express)

References:

1.      Andrea Edwards, the complete reference checking handbook AMACOM, page 4
2.      Ashwatappa, Human resource management, McGraw-Hill,  p 207
3.      Schwartz, K. D. (2005). The background-check challenge. InformationWeek, 1048, 59-61.
4.      http://techstory.in/authbridge/ October 14 2015)
5.      http://www.financialexpress.com/archive/india-lacks-the-required-database-for-background-screening/439988/
6.      http://articles.economictimes.indiatimes.com/2015-06-21/news/63671691_1_india-inc-rahul-sinha-background-checks
7.       http://timesofindia.indiatimes.com/business/india-business/Lying-your-way-to-a-new-job-just-got-tougher/articleshow/53834273.cms
8.      http://www.currentitmarket.net/2009/07/it-firms-gear-up-to-strong-background.html
9.      https://nationalskillsregistry.com/background-verification.htm
10.  the 20 common things that come during reference checks, Harvard Business review  August 2016
11.  Kameswaran, http://www.slideshare.net/kameshwerkc/trust-but-verify-52195431.