AID18802 Suppose you are working in a courier services company, which is ranked fourth in the domestic Indian market in terms of market share.



Suppose you are working in a courier services company, which is ranked fourth in the domestic Indian market in terms of market share. Your company management thinks that one of the ways to improve sales & profit performance, as well as the company’s market share, is to implement the concept of Integrated Marketing Communications (IMC). You are asked to prepare a proposal indicating the objectives, strategies & challenges in implementing the IMC.
Read the following Case & solve the questions given:
When SS Electroplating Company started the electroplating operations in a residential location in Bengaluru, it received a notice from the pollution Control Board to install the effluent treatment plant within 15 days, failing which they would seal the plant.
The Director of the company collected the information that it would cost about 10,00,000 to buy an effluent treatment plant, an area of about 600 sq.feet to install it over a period of 2-3 months, & running cost of about 40,000 per month for the purchase of material like costic soda & others. The effluent contained nickel, synide, cromium, cadminum& zinc, which were to be treated separately using different chemicals. After effluent liquid of about 800 litres per day was treated, the sludge was to be dried, packed, stored & dumped in a government notified place. The entire process would not only cost substantial amount, but also would need additional area of about 600-700 sq. feet
The company gathered information that some of the competitors outsourced the effluent treatment to government approved agencies, who collected the effluent liquid from these chemical & electroplating factories, & treated (or neutralized) the chemicals at their effluent treatment plants. These agencies charged 10 to 15 per litre for the treatment of effluent liquid, depending on the type of chemicals. The cost of outsourcing was considered much higher compared to in-house effluent treatment plant. However, SS Electroplating Company, like many other chemical & electroplating factories did not have additional area for the installation of effluent treatment plant.
The Director was aware that the liquid waste from the factory would have harmful effects on the surrounding residential area. He also could not violate the Government regulation on environment control. The director had very little time – two weeks – to decide & act.
a. If you were the Director of the company, what would you do & why?
b. Should all companies in this industry come up together as to save cost. Provide your suggestions.
1. Elaborate ‘Hedging and Speculation are important functions of erivatives’. Distinguish between exchange traded derivatives and over the counter derivatives.
2. Elaborate on the various channels through which a company can mobilize equity capital from the international market.
3. A country’s Balance of Payment includes two components – Current account, Capital and financial account. Current account measures the value of all goods and services imported and exported during a given financial year. Current Account Deficit (CAD) arises when the value of imported goods and services exceeds the value of exported goods and services. As on June 30, 2020 RBI reported India’s current account deficit has been reduced to 0.9% of the GDP in 2019-20 as compared to 2.1% in FY 2018-19 due to curtailed imports.
a. Differentiate between Current account and Capital account.
b. What measures can be taken to reduce the disequilibrium in the balance of payments’ position?
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