Wednesday, October 16, 2019

Bharat Footwear- Flipped classroom excercise

  1. What is the appropriate price (from the agent’s point of view) at which the coupons are to be purchased and at what price they should be sold?
  2. What is the price (from the shareholder’s point of view) at which the coupons can be sold or dispensed with?
  3. What is the optimal price at which a coupon can be purchased (from the actual consumer’s point of view)?
  4. From the overall system point of view, the coupon benefits are shared by three actors. However, the cost to BFL for the entire transaction remains the same. Is this a desirable practice? The monetary benefit meant exclusively for shareholders is now being shared by others (who are not shareholders). Is this appropriate?
  5. Should the issue of discount coupons to the shareholders be discontinued? If they are to be continued, what should be the additional systemic safeguards to be implemented to ensure that the benefit reaches the target audience?