wage policy in india
Uploaded by sillilalli on May 09, 2015
Star Automobiles Ltd. Pimpary is in the field of manufacturing of two wheelers. They manufacture and
market mopeds. These are available in the brand names ‘arrow’ and ‘double arrow’ where ‘arrow’ is
their traditional product and ‘double arrow’ is the improved version. The company was started about 20
yrs ago. Their product ‘arrow’ enjoys a reasonably good reputation and they were comfortable in the
market. However, with the entry of the new generation of fuel-efficient mopeds the company started
loosing its market. They immediately started developing the improved ‘double arrow’ but by the time
they came out with this new model the competitors had already strengthened their position in the
market. The arrow model was still acceptable by a segment of the market as it was cheapest vehicle.
‘Double arrow’ is new generation vehicle. It was costlier than Jet but its performance was much
superior. It is compared favorably with the competitors’ products; however it was yet to gain a foot hold
in the market.
The company had to refurbish the marketing activities in order to get back their market share. They
employed young sales engineer to launch a strong sales drive. Mr. Ramesh Tiwari, Btech and a diploma
holder in marketing got selected and was put on the job. Mr. Ramesh Tiwari started well in his new job.
He was given a territory to contact the prospective customers’ and to book the orders. The company had
introduced a new financial assistance scheme. Under this scheme, buyers were given easy loans. It was
particularly advantageous for group booking by employees working in an organization. Mr. Ramesh
Tiwari was able to contact people in different organization, arrange for group bookings and facilitate
the loans. His performance was good in the first year and in the second year of his service. The
company had its own system of rewarding those whose performance happened to be good. They usually
arranged a paid holiday trip for the good performer along with his wife. Mr. Ramesh Tiwari was
accordingly informed by the marketing manager to go to Chennai with his wife on company expenses.
Mr. Ramesh Tiwari asked him as to how much it would cost to the company. The marketing manager
calculated and told him that it would cost about 8000/-. He quickly asked him whether he could get that
8000/- in cash instead of the trip as he had better plans. The marketing manager countered this saying
that it might not be possible to doso. It was not the trading of the company, however he would check
with the...