Caselet 1

It had been 5 years since Hua Tua had been practicing traditional Chinese medicine
under the famous Zhang Zhongjing. A poor farmer's son, Tua's father had requested
Zhongjing to teach his son herbology. But the sudden demise of his father required
Tua to take charge of family responsibilities. They had 320 acres of cultivable land,
but margins in crops were very low. So Tua decided to use his knowledge of
medicine and cultivate herbs. He chose three standard decoctions.
1. Tang-kuei Ten Combination: An ancient formula used to

treat chronic illness whichwas made frombupleurum,

ginger and astragalus. This combination was used for
treatment of side-effects of cancer therapy and for
prevention of cancer recurrence after successful
treatment.
2. Bupleurum Combination: This formula was mainly used for
harmonizing circulation between internal organs and used
ginger, bupleurum and cinnamon. It was used to frequently
address cases of chronic hepatitis B infection, and it is
also used for inflammation of the stomach and pancreas.
3. Cinnamon Combination: Another ancient formula
prescribed for the initial stage of an infectious disease,
which was a decoction of cinnamon, astragalus, and
ginger. This decoction was effective for treatment of
frostbite, pernicious vomiting of pregnancy, and
appendicitis.
Each of these was to be cooked with tea and consumed by the concerned
patient. The vials would be sold in a lot-size of 100 only. He consulted 5 doctors who ordered
100 vials of each of the decoctions.

Tua then estimated the quantity of ingredients (in grams) that would be required per
100vials of decoction results of which are tabulated in Table 1 below. Tua would have
to pay the government $6,300 as property tax for the land. He decided to mark-up
the vials 20% above their cost. The details of costs for cultivating the land are given
in Table 2 & Table 3 below. The extra vials of decoction, if any, would be sold later.

Decoction\Ingredient
Tang-kuei Ten Combination
Bupleurum Combination
Cinnamon Combination

Cinnamon

Ginger

Astragalus

Bupleurum

200

400

100

100

125

150

200
100
320
0
Table 1: Quantity of ingredients (in grams) required per 100 vials of decoction

Particulars

Cost (in $)

Sowing and Tilling

24,000

Harvesting

8,900

Property Tax
6,300
Table 2: Joint labor and materials cost for cultivating the land
(monthly)
Particulars

Cinnamon

Ginger

Astragalus

Bupleurum

Cost of Materials
/acre

2000

1000

1000

1000

Cost of Labor /acre

1000

604

1000

1000

50

25

40

50

Yield/acre (in g)

Table 3: Ingredient-specific costs for cultivating the land (monthly)

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The market prices of 100 vials of the Tang-kuei Ten decoction (in $) are:
Select one:
a. $ 44,865.9
b. $ 47,138.4
c. $ 48,211.2
d. $ 45,833.2

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Hua Tua's maximum monthly profit is:
Select one:
a. $ 1,23,492
b. $ 1,31,468
c. $ 1,37,528
d. $ 1,39,444

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The land Hua Tua allocates to Bupleurum,assuming maximum profit is : Calculate to

the nearest acre.
Select one:
a. 52 acres
b. 110 acres
c. 130 acres
d. 28 acres

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Caselet 2
The Keystone City has been a major hub for business and cultural activities for
centuries. It has seen the rise and fall of many great personalities across time. One
of the key attractions that the city boasts is the Flash Museum. It is dedicated to all
the superheroes that have protected the city with their lives throughout its history.
Lately, the organized mafia of the Keystone City has been losing its stranglehold over
the city affairs due to the excellent work of KCPD (Keystone City Police Department).
The mafia plans to make a statement by hitting the Flash Museum in broad daylight
to revive its reputation. KCPD has got a tip on the heist through a very trustworthy
informant. You have been hired as a consultant to anticipate the moves of the crew
about to hit the museum; so that KCPD can work out an action plan to catch the
robbers in the act. In order to do that, you need to devise a plan to operationalize the
heist.
You break down the plan into a number of components. You need to first decide the
items of interest to the robbers. Then you need to work on an escape plan from the
museum to a rendezvous point. After that you intend to find the best possible way
through the traffic ridden city to reach the port from where they can move into
international waters which is beyond the jurisdiction of KCPD.
As per your expertise, you believe that one person can be charged with looting the
items in the given time frame. He can carry only carry a maximum amount of 10
kilograms with him so that he can maintain his speed. Also, he will loot the items
which would demand maximum overall value in the black market. The specific data
regarding the high-value items present in the museum has been summarized in
Table 1.
Table 1
Item No.

Present
black
market
value

Weight of
the item

Item No.

Present
black
market
value

Weight of
the item

FMVI00612

92

FMVI01380

67

FMVI01049

57

FMVI01430

84

FMVI01352

49

FMVI16015

87

FMVI00230

68

FMVI00406

72

FMVI01472

60

FMVI00914

43

Also, to ensure additional hindrance to the heist, an additional password security has
been installed at the entrance to the high-value-items-chamber (HVIC). This
comprises of a panel of size (4X14 cm), with 7 (2x4 cm)-keys kept by its side. The
authorized person needs to know the pattern in which to place these keys in the
panel such that the panel surface is fully covered (i.e. keys can be placed either
horizontally or vertically in a non-overlapping fashion). You can assume the robbers
have no information about this until they reach the HVIC.

Figure 1: Password Panel

Figure 2: Panel Key (7 in total)

14 cm

2 cm

4 cm

4 cm

Your partner has taken up the responsibility of finding an efficient route through the
underground sewers leaving the last part of the plan for you to work out. The traffic
on roads in Keystone City is unequally distributed during the time of robbery. Thus,
the goons can travel at the same speed along all roads. You feel that the robbers
would take that route to the port which would result in minimum travel time. (i.e.
robbers have to travel from the Museum to the Port).The information about the road
network has been summarized in Table 2 (all roads are two-ways).
Table 2
Intersections Maximum
connected by possible
the road
driving
speed (in
kmph)

Length of
the road (in
km)

Intersection
connected
by the road

Maximum
possible
driving
speed (in
kmph)

Length of
the road (in
km)

(Museum, 1)

16

(4, 5)

30

(Museum, 2)

40

20

(5, 6)

30

(Museum, 3)

30

(5, 8)

20

(1, 4)

48

(5, Port)

15

3.5

(2, 4)

75

(6, 7)

30

5.5

(2, 5)

36

(7, 8)

90

1.5

(3, 5)

20

10

(8, 9)

100

(4, 6)

45

(8, Port)

25

2.5

All answers should be rounded off to nearest integer (if required)

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Determine the total value of goods that the robbers would aim to loot.
Select one:
a. 225
b. 216
c. 221
d. 228

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Determine how much additional time KCPD will get to crash the robbery, assuming that the
robbers arrive at the right combination only in their final attempt.
Select one:

a. 17
b. 24
c. 21
d. 13

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Determine the time (in minutes) they would take to reach the port from
the museum.
Select one:
a. 38
b. 40
c. 37
d. 39

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Caselet 3

Dagras has carved a special place for itself in the sports universe since it was
founded in 1980 by a Dutch Olympian (of Greek Origin), Aleixo Carchonas. He was
one of the best archer that Netherlands had produced in recent times. Some called
him the modern-day Apollo as a tribute to his skills and indicating his Greek ancestry.

Right from his competition days, Alexio used to customize both his training and
competition equipment to suit his specific needs. He felt that the equipment available
in market was too generic. He felt an urgent need for innovation in the sports
equipment industry and thus, began his journey with Dagras.
Dagras started by designing and manufacturing customized and specialized
equipment for archery. This led Dagras to garner huge popularity in the professional
sports circles. The response encouraged Aleixo to further diversify his product range
to encompass other competitive sports.
Within a relatively short span of time, Dragas was able to extend its product range to
cater to a variety of sports. At the same time it also, expanded its portfolio to include
products such as sportswear, watches, eyewear and bags besides the regular sports
equipment. Its reach spread across the European market and the company had
plans to expand beyond to other markets. However, before venturing to other
markets, Aleixo felt a need to strengthen the company's presence in Europe owing to
increasing competition in the industry.
It saw the European Youth Olympic Festival (EYOF) 2013 as the perfect opportunity
to enhance its position in the European sports industry. EYOF had been enjoying
immense popularity since its past few versions. It had grown its footprint in terms of
both, viewership and competitive participation. EYOF 2013 was set to take place in
Utrecht, Netherlands and was expected to make headlines throughout the event.
The sponsorship deal obtained by Dragas was the broadest set of sportswear rights
in game's history. It became the Official Sportswear Partner of the Eutrecht Games
and the exclusive licensee of all branded and event branded clothing. From these
rights Dragas set four key marketing objectives.
To ensure a clear association as Sportswear Partner of
EYOF 2013, Team Netherlands and Paralympics
Netherlands.
o To engage and excite the 14-19 year old audience in order
to drive brand preference in the Netherlands and the
surrounding markets.
o To deliver a Licensed Product Return on Investment (ROI)
(branded and event branded licensee rights).
o To become the most talked about sports brand in 2013.
o

A major aspect of this sponsorship deal was the athletes' kit. The kit provided the
opportunity to be innovative and excite the target audience whilst creating products to

meet commercial sales targets.Preparations to equip the team started two and a half
years before the Games were due to start. Over 550 athletes were fitted for over 680
items of kit. This meant the marketing activity for the campaign also started long
before the Games in 2013. A photo booth shoot captured every athlete in their kit.
These images were used to create excitement around the Team Netherlands kit
product launch.
As there were more than 50 EYOF 2013 sponsors, Dragas needed to ensure it
communicated the right messages, at the right time, through the appropriate
channels for its target audience. It aimed to create national support for Team
Netherlands through its 'Show the World' campaign.
TV adverts featuring national upcoming star athletes were used to rally support for
Team Netherlands. In these adverts athletes shared their intimate goals, fears and
thoughts, something which was dramatically different to other sponsors of EYOF
2013.
Its TV adverts aimed to drive consumers to a website where they could demonstrate
their talents for a chance to meet their idols. Through 'Lucky 26', Dragas had already
rewarded 26 talented youngsters in Netherlands with the chance to meet leaders in
their chosen fields, such as the sporting and musical industry, giving undiscovered
talent the chance to 'Show the World' their skills.
Social media played an integral part in Dragas' campaign. For example, on Twitter
#showtheworld became the summer trend for supporting Team Netherlands. Videos
on YouTube created hundreds of millions of views. In addition, a large photo booth
was set up at a shopping centre in the city. Members of the public then entered the
booth to show support for Team Netherlands. Videos of peoples' reactions to Dennis
Bergkamp making a surprise appearance received 2.1 million views, as well as
international TV coverage.
Promotional activity is very expensive. Organizations want to see a return on
investment (ROI) for the money they spend on a promotional campaign. Sponsorship
of EYOF 2013 was no exception. Every aspect of its promotional campaign, both
online and offline, was continuously monitored and measured. This enabled Dragas
to demonstrate that becoming the Official Sportswear Partner of the Utrecht Games
and the exclusive licensee of all branded and event branded apparel was cost
effective coverage. This data was then used to establish whether the marketing
objectives had been achieved. The table below demonstrates the significant return
achieved through this campaign and how Dragas successfully achieved its marketing
objectives.

Marketing Objective

Measurement

Ensure a clear association as

Sportswear Partner of EYOF 2013,
Team Netherlands and Paralympics
Netherlands

Engage and excite the 14-19 year old

audience in order to drive brand
preference in the Netherlands

Deliver a licensed product ROI (branded

and event branded licensee rights)

Become the most talked about sports

brand in 2013

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Dragas generated the highest

number of articles amongst local
sponsors
o
44% of 16-24 year olds were
aware of the sponsorship (Dragas'
closest competitor achieved 16%
o

YouGov (a measure of public

opinion) score increased from 3.5
to 11.3 during the Games
o
Dragas ranked #1 by Utrecht
2013 Nielsen audience tracking for
categories 'exhilarating' and
'empowering'
o
8 million views of #showtheworld
content on YouTube with 1.3 million
views from 14-24 year olds
o

o
o

2% market share growth

100 million total licensed product
sales in 2013

Increased Twitter followers by

25%
o
32% share of sponsor traffic on
Twitter
o
128 million Twitter impressions
respectively for #showtheworld
o

Which kind of marketing strategy could be most effectively utilized to

target the 14-16 year olds?
Select one:
a. Ambush Marketing
b. Evangelism Marketing
c. Close Range Marketing
d. Cross-media Marketing
e. Guerilla Marketing

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What kind of ATL promotional strategy could have been most effective?
Select one:
a. TV Advertisements
b. Social Media
c. Promotional Schemes
d. Direct e-mail

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Based on their positioning how should the company segment the population?
Select one:
a. Behavioral Segmentation
b. Demographic Segmentation
c. Lifestyle Segmentation
d. Geographic Segmentation

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Caselet 4

Three fresh MBA graduates Raju, Farhan, Rancho have a start-up: RelaxiTaxi. The
company provides taxi services in the city of Lucknow. Their USP is that they have
developed an algorithm which helps them procure and connect local taxis in the city.
Although not yet fully functional, their algorithm seems to be more efficient than
others.
The graduates were recently approached by Cynosure to buy out RelaxiTaxi for 1.5
lacs. If they reject the offer and continue with the product development, an additional
investment of 2 lacs would be required. They plan to arrange for this amount from
their personal savings.
If RelaxiTaxi is successful in finishing the algorithm development, they will have two
development strategies:

1.

2.

It can apply for an innovative research grant of 3

lacs from Grow-Engage Agency; and further
develop and market the product. There is a high
degree of uncertainly around the grant.
Another private player, Bluestone had proposed that
if RelaxiTaxi was successful in their algorithms fine
tuning, it will offer a financing of 10 lacs to them for
80% of future profits (perpetuity).

The founders aren't sure if they can devote sufficient time to the algorithm in the
coming months. In case they are not successful in adding the new features, they can
still apply for the Grow-Engage Agency grant, but their chances of getting winning
the grant will decrease. The additional cost of applying for this grant at this stage will
be 1 lac.
If they accept Bluestone's offer, RelaxiTaxi's profitability would be higher than if they
were to market it themselves.
Estimated revenues if they are successful in algorithm development and winning the
Grow-Engage Agency grant:
Scenario

Probability

Total Revenues

High Profit

20%

30 lacs

Medium Profit

40%

5 lacs

Low Profit

40%

Estimated revenues if they are successful in algorithm development and take up

Bluestones offer:
Scenario

Probability

Future Profits

High Profit

20%

100 lacs

Medium Profit

40%

30 lacs

Low Profit

40%

Estimated revenues if they are unsuccessful in algorithm development andstill apply

for the Grow-Engage Agency grant:
Scenario

Probability

Total Revenues

High Profit

25%

15 lacs

Low Profit

75%

After discussion within themselves, the founders think there is a 60% chance of them
being successful in further development. Further, with this success, chances of
winning the Grow-Engage Agency grant is 70%. However, the chance of getting the
grant without this further development is 20%.
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Please evaluate the options and suggest what the founders should do?
Select one:
a. Accept Cynosure's offer
b. Continue with product development and if successful, accept

Bluestones offer
c. Continue with product development and if successful, apply for the
grant
d. Continue with product development and if unsuccessful, apply for
the grant
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Would the decision change if the chances of winning the grant instead of
70% is 80%?
Select one:
a. Yes
b. No
c. More than a single choice to the founders
d. More data required

Question 12

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Another VC firm is evaluating whether to invest in RelaxiTaxi or not. If their

investment is successful they will have a profit 18 lacs on the investment,
but if they fail, they will lose 8 lacs. Based on experience and intuition,
they feel there is a 30% chance that they will be successful. Prior to
deciding whether to invest in RelaxiTaxi or not, the VC firm can take help
from a consultant. The consultant will charge 2 lacs for his work. The
consultant can't predict the success with certainty, that is, he sometimes
misread the market. The consultant cant predict the success with 100%
certainty, that is, he sometimes misreads the market. Past results indicate
that if the investment is a flop, there is a 10% chance that the consultant
will say otherwise. Also, if the investment is a success, there is a 20%
chance that the consultant would have suggested otherwise. Please help
the VC firm to make a decision.
Select one:
a. Don't invest
b. Invest on its own
c. Enrol the consultant, invest if he gives a positive response
d. Enrol the consultant, invest if he gives a negative response