a) Is there any breach on the above mentioned scenario? Please give your reasons Justifying your answer whatever it can be. b) What were the expectations of the AGM Vs the MD & Chairman you think? c) What are your thoughts about the overall condition of the company?
a) Is there any breach on the above mentioned scenario? Please give your reasons Justifying your answer whatever it can be. b) What were the expectations of the AGM Vs the MD & Chairman you think? c) What are your thoughts about the overall condition of the company?
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
Related questions
Question
100%
Reading the image please answer the following questions
a) Is there any breach on the above mentioned scenario? Please give your reasons
Justifying your answer whatever it can be.
b) What were the expectations of the AGM Vs the MD & Chairman you think?
c) What are your thoughts about the overall condition of the company?
![CEO, that the existing CEO will be in charge of the company & no people unless someone is
dishonest will lose job. CEO should help him to reorganize the company.
But within few weeks in contrary to his commitment the Chairman, handpicked two of his trusted
persons and appointed them as Managing Director & AGM Finance Sputnik. The Managing
Director was a retired high official of Army with no clue about business environment. The AGM
Finance was a foreign educated Bangladeshi with very limited industry exposure. Both of them
were fully dependent on the wish & will of the chairman. However while appointing this new MD,
the chairman again assured the existing CEO that this MD position is an ornamental position
with no operational authority. Hence nothing changes with this new appointment of MD, rather
the operational responsibility of the whole show remains with CEO.
Opposing to what being said by the chairman, just after joining both the new MD & AGM finance
teamed up to find faults of the existing employees of Sputnik Pharma and started taking punitive
measures bypassing the CEO. As result despite repeated verbal assurance of the Chairman &
CEO in one hand good performers of Sputnik started leaving the company, on the other hand
poor & average performers, took the strategy of making the new management happy not with
work but providing them sweet talks and backbiting sort of information. Soon the whole
company turned into good breeding ground of gossips, rumors & fights
Soon the MD started feeling that the AGM Finance, appointed by Chairman along with him was
not competent enough, hence he asked the chairman to have a more experienced Finance
person on top of the AGM and finally he got the positive nod from the Chairman to recruit one
DGM. After having a new DGM Finance on top of him, the AGM finance felt offended but kept
quiet.
Recently the AGM Finance lost his father in law due to COVID 19 hence couldn't come to office
that day. After hearing the news, MD called up the AGM Finance and expressed his deep
condolence to comfort the AGM. To manage usual grief of the sudden loss of important family
member, AGM was unable to come to office consecutively for 3 days, however he did not
applied for any leave. On 3rd day there was a scheduled meeting that was called by MD week
before, in which the AGM could not join being absent in office. Upset with the absence of AGM,
after the meeting the MD sent out mail to AGM finance asking for explanation why he missed
such an important meeting that was planned much earlier.
Within an hour the MD got an one liner answer from AGM Finance, that says "Dear Sir, I will not
be coming to office, please terminate me with immediate effect and let me know by email"](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8a1da1e0-1975-474f-a593-ed1d7d52df08%2F7c7e2653-6c83-4912-b8c2-2fb0ca9731e2%2F0dbru1b_processed.jpeg&w=3840&q=75)
Transcribed Image Text:CEO, that the existing CEO will be in charge of the company & no people unless someone is
dishonest will lose job. CEO should help him to reorganize the company.
But within few weeks in contrary to his commitment the Chairman, handpicked two of his trusted
persons and appointed them as Managing Director & AGM Finance Sputnik. The Managing
Director was a retired high official of Army with no clue about business environment. The AGM
Finance was a foreign educated Bangladeshi with very limited industry exposure. Both of them
were fully dependent on the wish & will of the chairman. However while appointing this new MD,
the chairman again assured the existing CEO that this MD position is an ornamental position
with no operational authority. Hence nothing changes with this new appointment of MD, rather
the operational responsibility of the whole show remains with CEO.
Opposing to what being said by the chairman, just after joining both the new MD & AGM finance
teamed up to find faults of the existing employees of Sputnik Pharma and started taking punitive
measures bypassing the CEO. As result despite repeated verbal assurance of the Chairman &
CEO in one hand good performers of Sputnik started leaving the company, on the other hand
poor & average performers, took the strategy of making the new management happy not with
work but providing them sweet talks and backbiting sort of information. Soon the whole
company turned into good breeding ground of gossips, rumors & fights
Soon the MD started feeling that the AGM Finance, appointed by Chairman along with him was
not competent enough, hence he asked the chairman to have a more experienced Finance
person on top of the AGM and finally he got the positive nod from the Chairman to recruit one
DGM. After having a new DGM Finance on top of him, the AGM finance felt offended but kept
quiet.
Recently the AGM Finance lost his father in law due to COVID 19 hence couldn't come to office
that day. After hearing the news, MD called up the AGM Finance and expressed his deep
condolence to comfort the AGM. To manage usual grief of the sudden loss of important family
member, AGM was unable to come to office consecutively for 3 days, however he did not
applied for any leave. On 3rd day there was a scheduled meeting that was called by MD week
before, in which the AGM could not join being absent in office. Upset with the absence of AGM,
after the meeting the MD sent out mail to AGM finance asking for explanation why he missed
such an important meeting that was planned much earlier.
Within an hour the MD got an one liner answer from AGM Finance, that says "Dear Sir, I will not
be coming to office, please terminate me with immediate effect and let me know by email"
![Background:
Sputnik Pharma, a MNC Pharmaceuticals Company of Bangladesh, majority stake of which was
with foreign investors has been struggling since it came to the market in 2009. Since its
inception until end 2017 it changed its CEO for 7 times who were appointed at the will of one or
the other shareholder. Finally at the end of 2017 the board unanimously appointed a new CEO
who was seasoned person with bag full of national & international experiences to revive the
company. After a couple of months the new CEO realized despite commitment from the board
members he is actually in the middle of troubled water while board members are busy with their
own personal interest above the interest of the company. But new CEO decided to do his best
to turn it around. In such a situation as the COVID 19 broke out the company fell into an even
more troubled situation with dried up cash flow hence that need cash injection.
Right that time the board of directors decided to sell the company to any potential buyer and
asked the CEO to do that diligently, that he agreed as he thought if it goes to the right hand this
company has got potential not only to survive but to flourish , which will enable a lot of
employment opportunities for the country. So he focused to his new task of finding a good
customer.
After lots of screening finally a group of company with solid track record become interested to
buy the company. So the CEO along with his CFO started the process. During the process of
this transaction, in a meeting with the Chairman of the buying group of company started
shouting to CFO about some issues which were not in the control of anyone. But the said
Chairman was irrationally blaming the CFO. After that meeting was over, next day going to
office the CFO handed his resignation letter with immediate effect, despite the CEO requested
him to continue until the deal is closed that is due by 2 months.
Transaction & Aftermath
As per plan transaction that is selling of the company to new owner went on smoothly. Being
surprised with the sudden resignation of previous CFO, the chairman assured repeatedly the](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8a1da1e0-1975-474f-a593-ed1d7d52df08%2F7c7e2653-6c83-4912-b8c2-2fb0ca9731e2%2F0xzjx1u_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Background:
Sputnik Pharma, a MNC Pharmaceuticals Company of Bangladesh, majority stake of which was
with foreign investors has been struggling since it came to the market in 2009. Since its
inception until end 2017 it changed its CEO for 7 times who were appointed at the will of one or
the other shareholder. Finally at the end of 2017 the board unanimously appointed a new CEO
who was seasoned person with bag full of national & international experiences to revive the
company. After a couple of months the new CEO realized despite commitment from the board
members he is actually in the middle of troubled water while board members are busy with their
own personal interest above the interest of the company. But new CEO decided to do his best
to turn it around. In such a situation as the COVID 19 broke out the company fell into an even
more troubled situation with dried up cash flow hence that need cash injection.
Right that time the board of directors decided to sell the company to any potential buyer and
asked the CEO to do that diligently, that he agreed as he thought if it goes to the right hand this
company has got potential not only to survive but to flourish , which will enable a lot of
employment opportunities for the country. So he focused to his new task of finding a good
customer.
After lots of screening finally a group of company with solid track record become interested to
buy the company. So the CEO along with his CFO started the process. During the process of
this transaction, in a meeting with the Chairman of the buying group of company started
shouting to CFO about some issues which were not in the control of anyone. But the said
Chairman was irrationally blaming the CFO. After that meeting was over, next day going to
office the CFO handed his resignation letter with immediate effect, despite the CEO requested
him to continue until the deal is closed that is due by 2 months.
Transaction & Aftermath
As per plan transaction that is selling of the company to new owner went on smoothly. Being
surprised with the sudden resignation of previous CFO, the chairman assured repeatedly the
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