Group thinking (Caselet )
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Vayu Automobiles, established in 1960, faced intense competition after the 90s leading to a board meeting regarding the expansion of its production facilities. The board, consisting of 8 members, experienced conflicts due to differing opinions on location choices, particularly regarding labor issues in West Bengal. Ultimately, despite initial plans to establish a plant there, political opposition forced a decision to shift operations to Karnataka, raising concerns about internal group dynamics and decision-making processes within the board.
Group thinking (Caselet )
- 1. GROUP THINK
- 2. VAYU AUTOMOBILES HISTORY • 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
- 3. 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
- 4. 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
- 5. People involved in Vayu Automobiles !! Mr. Gangadharan CEO Mr. Varun Mr. Chandra Mr. GaneshMs. Arthi BOARD OF DIRECTORS
- 6. Mr. Gangadharan CEO Mr. Varun Mr. GaneshMs. Arthi BOARD MEMBERS Mr.chandran
- 8. 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
- 9. 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
- 10. The CEO decided to speak with the Chief Minister of West Bengal
- 11. 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.
- 12. 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
- 13. 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
- 14. •The Ceo realized That the intention of the protest were politically motivated • Then the Ceo decided to shift the operation to Karnataka
- 15. The CEO realises that Varun’s idea was right.
- 16. Q.1 1.What do you think was the reason for this problem?
- 17. 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.
- 18. • 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.
- 19. Q.2 2.Do you think there is some problem with the board as a group?
- 20. 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.