Birla Institute of Technology and Science, Pilani, Hyderabad Campus

First Semester 2019-2020

"What you do has far greater impact than what you say."
– Steven Covey
Note: Be brief and specific while providing answers
1. Mr. Aslan, General Manager of Turkish Airlines identified several factors/forces faced by the Aviation
Industry in Turkey as stated below.
 Aviation Security: EU integration process and the adoption of EU standards concerning aviation
security and safety provide a great opportunity for the Turkish Aviation Industry to improve its security
and safety concerns.
 Low Scale Aviation Companies: In order to survive, the low scale aviation companies in Turkey have
added small sized aircrafts to their fleets. This has resulted in lower prices, different flight alternatives
for different levels of economic conditions etc.
 Domestic Air Transportation Market: In turkey, the share of air transportation in total transportation is
very low especially as compared with land or maritime transportation. There is a huge untapped
market opportunity since the Turkish domestic air transportation market is 20 percent less than that of
European counterparts.
 Fuel Prices: There is a rise of fuel prices in the world and the excess taxes on the fuel prices in Turkey.
The fuel costs are very essential in pricing process of the tickets. The recent increase in fuel prices all
over the world has negative effects on air transportation.
 Lower Prices: There is a great opportunity to offer lower prices by the airline firms in Turkey due to the
tax reductions in ticket fees and the grant providing freedom of self-pricing by airline companies.
 New Entrants: There are six airline companies/firms (including Turkish Airline) operating in the
industry. It is expected that in next 3 to 5 years several new firms (national and international players)
will enter the industry and will lead to a fierce competition.
 Passenger Density: The domestic passenger density in the Turkish Aviation is expected to grow on an
average by 35% annually for next three years. This is the highest growth rate as compared with any
other country in EU.
 Passenger Loadings: It is anticipated that Turkish Aviation Industry will witness an increase in its
passenger loading from 59% (current loading) to 71 % in next 2 years and to 82% percent in next three
years.
 Tourist Activities: Due to the direct relation and interaction among the industries of tourism and
transportation, the opportunity of integrating tourist activities and domestic air network which is
developed in recent years has arisen significantly and expected to grow at a much higher rate in the
next 5 years as well.
 Uncertainty in Geopolitics: Turkey have borders to the Middle East countries, the battle and political
turmoil in this region will negatively affect the Turkish aviation industry which is operating so close to
the corresponding region, consequently might be a barrier to the development of air transportation.
 Unplanned Growth: The rapid and unplanned growth in the aviation industry in Turkey has increased
the vacant positions for licensed staff needed, and training institutions could not respond vacancies
resulting from this rapid growth. In addition to this poaching has become a serious threat to the
industry.
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 Identify the general environment and task environment factors in the above case-let. Support your
answer by quoting specific facts from the case-let (12.0 Marks)

2. Abdul Oil Corporation (AOC) is a small company and through the years it has grown to become an
international corporation. In case of the organization structure, AOC has gone through the following
stages.
Stage-1: The original entrepreneurial venture that Abdul started consisted of Abdul and a few employees.
It was an informal organization with very little formalization of tasks and everyone reported to Abdul.
Stage-2: Abdul’s business expands as sales increase and he can no longer make all of the decisions needed
to allow the business to be efficient. He gives his key subordinates authority and responsibility to manage
others within their areas of specialty/work specialization.
Stage-3: Abdul realizes that his company is taking on a life of its own and he wants to allow people from all
levels to work together in teams. This view grows to include employees working actively with external
agencies. Due to this, organizational design does not have a predefined structure.
Stage-4: Abdul eventually decides he is approaching retirement. He wants Abdul Oil Company to develop
the capacity to continuously learn, adapt itself and change because each member will take an active role in
identifying and resolving work-related issues. He created the organization structure with systems that
inspires and enables knowledge workers to solve, day in and day out, problems that cannot be anticipated,
employees continually acquire and share new knowledge and apply that knowledge.

For each of the above stages, identify the organizational designs/structure used by AOL and specify one
disadvantage for each of these identified structures. (8.0 Marks)

3. For well over a century and a half, the C. F. Martin Guitar Company (established in 1833) of Nazareth,
Pennsylvania, has been producing acoustic instruments considered to be among the finest in the world.
Like a Steinway grand piano, a Rolls Royce automobile, a Buffet clarinet, or a Baccarat crystal vase, a
Martin guitar—which can cost more than $10,000—is among the best that money can buy. This family
business has managed to defy the odds and survive through six generations. Current CEO Christian
Frederick Martin IV—better known as Chris—continues to be committed to the guitar maker's craft. He
even travels to Martin dealerships around the world to hold instructional clinics. Few companies have had
the staying power of Martin Guitar. Why? What are the keys to the company's success? A primary one has
to be the managerial guidance and skills of a talented leader who has kept organizational members
focused on important issues such as quality.
From the very beginning, quality has played an important role in everything that C. F. Martin Guitar
Company does. Even through dramatic changes in product design, distribution systems, and manufacturing
methods, the company has remained committed to making quality products. The company's steadfast
adherence to high standards of musical excellence and providing a product to meet the needs of a
demanding customer base permeates everything that happens in the organization, top to bottom and in
all work areas. Part of that quality approach encompasses a long-standing ecological policy. Since the
company depends on natural wood products to manufacture its guitars, it has embraced the judicious and
responsible use of traditional natural materials and encouraged the introduction of sustainable-yield
alternative wood species. Based on thorough customer research, Martin introduced guitars that utilized
structurally sound woods with natural cosmetic defects that were once considered unacceptable. In
addition, Martin follows the directives of CITES, the Convention on International Trade in Endangered
Species of Wild Fauna and Flora.
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 C. F. Martin Guitar Company is an interesting blend of old and new. Although the equipment and tools may
have changed over the years, employees remain true to the principle of high standards of musical
excellence. Building a guitar to meet these standards requires considerable attention and patience. Family
member Frank Henry Martin explained to potential customers in the preface to a 1904 catalog, "How to
build a guitar to give this tone is not a secret. It takes care and patience. Care in selecting the materials,
laying out the proportions, and attending to the details which add to the player's comfort. Patience in
giving the necessary time to finish every part. A good guitar cannot be built for the price of a poor one, but
who regrets the extra cost for a good guitar?" Almost one hundred years later, this statement is still an
accurate expression of the company's philosophy. Although the company is firmly rooted in its past, Chris
is not reluctant to take the company in new directions. For instance, in the late 1990s, he made the bold
decision to start selling guitars in the under-$800 market segment. This segment accounts for 65 percent
of the acoustic guitar industry's sales. The company's DXM model was introduced in 1998. Although it
doesn't look, smell, or feel like the company's pricier models, customers claim it has a better sound than
most other instruments in that price range. Chris justified his decision by saying that "If Martin just
worships its past without trying anything new, there won't be a Martin left to worship."
The company is doing well under Chris's management. Revenues have continued to increase and in 2000
were close to $60 million. The manufacturing facility in Nazareth was expanded and new guitar models
continue to be introduced. Employees describe his management style as friendly and personal, yet firm
and direct. Although C. F. Martin Guitar Company continues to spread its wings in new directions, it hasn't
lost sight of the commitment to making the absolute finest products it can. And under Chris's
management, it won't.
A. Which management skill do you think would be most important to Chris Martin? Explain your choice.
(5.0 Marks)
B. Identify (specific) managerial role displayed by Chris in the above case-let. Support your answers with
information from the above case-let. (5.0 Marks)

4. While selecting your life partner which decision making model will be applicable and why? (4.0 Marks)

5. Critically evaluate the following goals using ‘SMART’ framework. (6 x 1.0 = 6.0 Marks)
A. To study harder.
B. To get a 9.0 GPA
C. To maximize my study time each day before social activities.
D. I want to join a club.
E. To lose 10 kilograms
F. To locate and research at least five possible summer jobs by October 28th, 2019

6. Explain the following (5 x 4.0 = 20.0 Marks)

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