GROUP THINK

• CASELET No: 66

• Page No: 162

VAYU AUTOMOBILESHISTORY

• Established in 1960• Ruled the Automobile Industry till 90’s• They were in the market for more than 50

years• It earned high level of trust from their

customers.• The competition increased intensely after 90’s

Cause and Effect Cause was due to the high sales of their Car “BREEZE” the company wanted to expand its production.So it chose 3 places in India on the basis of availability.Thereby the Board Meeting was called by in order to address this issue

ABOUT BOARD MEMBERES

• Board consist of 8 members • Out of 8 ,7 were with vayu for 10

years• Mr. Varun was the one of the board

member who had joined vayu 3 months back he had 20 years of experience with Mahindra

• He felt that other board members saw him still as an outsiders

People involved in Vayu Automobiles !!

Mr. Gangadharan CEO

Mr. Varun Mr. Chandra Mr. GaneshMs. Arthi

BOARD OF DIRECTORS

Mr. Gangadharan CEO

Mr. Varun Mr. GaneshMs. Arthi

BOARD MEMBERS

Mr.chandran

BOARD MEETING

Mr.Chandra: Noida and Hubli were well established but getting labor would be difficult & expensive. Were as Siligiri is not well established as the two hence labor would be cheap in Siligiri

CEO: Congratulation folks!! Our new compact BREEZE car s extremely well d stock were up by 5% ,I also have an idea to start our new plant that it would produce 1000cars/week .our research group had shorted listed 3 places ie Siligiri in west Bengal ,Hubli in Karnataka ,and at last Noida in up I would like you people to suggest the best place.

:

Suggested : West Bengal

Mr.Varun: Though labour was cheap & easily avilable but the problem is with the west bengal because it was governed by communist party as the result their would be problem raised by the unions

Mr.Ganesh: Our plant would offer employment opportunities for 5000 people. It would rise in their economy.

Ms.Arthi: I agree chandra’s suggestion because we are the first person to start our new plant that add an advantage

Opposed: West Bengal

Suggested : West Bengal

Suggested : West Bengal

The CEO decided to speak with the Chief Minister of West Bengal

Mr.Gangadharan : We are planning to start our manufacturing unit in your state. It gives opportunity to your state youth in employment.

I’m very happy to help you to start your project. I can assure you of our best cooperation.

SLIP IN DECISION

•Vayu started to construct the plant •When more then half of the construction was over even machinery were brought •The opposition party states that the Government had allocated farm lands for the Industry and started strike •Because of Slip in Decision vayu went in loss of 50crores

STRIKE•The strike was conducted by the Opposition Party of West Bengal.• The reason was that the Government had allocated farm lands for the Industry and displaced farmers were given only half the price. • It gained momentum and the Chief Minister was helpless in this.• This got all the attention of the media.

•The Ceo realized That the intention of the protest were politically motivated• Then the Ceo decided to shift the operation to Karnataka

The CEO realises that Varun’s idea was right.

DISTURBED

AND

REALIZED

Q.1

1.What do you think was the reason for this problem?

Answer• AS CEO OF THE COMPANY, he

should have given equal importance to all his board of director’s opinion.

• Reason behind it was, first of all the team i.e. (board of director) itself have ego problem with their junior.

• AS CM OF WEST BENGAL, he should have said about the problem that the party raises or he should have suppressed the problem which was raised by the party , She failed to do it.

• Moreover, board of directors are higher officials in the company ,they should know about group decision making ,but their ego refused to accept the idea of Varun.

• Electronic meeting is useful for this case to avoid the problem which arised between the group.

Q.2

2.Do you think there is some problem with the board as a group?

Problem with the group

• To have better group , they should form as a odd number group, because the majority for decision will arise only if the total is in odd number.

• There were no unity among the group.

• Domination by one or two members in decision making.

• Personal prejudice.

By S. Divya Muthu Raja D.Perumal