An example of descriptive is the standard deviation of last yearâ€™s grades 7 overall performances and that of the previous year. On the other hand, inferential statistics arrive at inferences based on patterns observed in the sample. A typical example of inferential statistics is the correlation between teachersâ€™ motivation and student performance. A study established that motivated teachers are satisfied and when fully supported by the principal, the studentsâ€™ performance improves.
For Milestone Three, you will analyze the data provided for your problem using descriptive and inferential statistics. The data sets can be found in the given case study for your final project, Maruti Suzuki India: Defending Market Leadership in the A-Segment, within the Exhibit section. You will explain the meaning of the results of your data analysis in practical terms and consider the ethics of analyzing data to ensure it is fair, objective, and scholarly. Please keep in mind that the following data sets are quantitative: Exhibit 2, Exhibit 3, Exhibit 4, Exhibit 6, Exhibit 7, Exhibit 10 and Exhibit 11.
Running Head: MARUTI SUZUKI CASE STUDY 1
MARUTI SUZUKI CASE STUDY 5
Maruti Suzuki Case Study
Instructor: Trevor Caskey, Ph.D.
QSO-500 Business Research
Maruti Suzuki is one of the largest passenger car producers in India. Based in Delhi, the company had dominated the automotive industry for a very long time until recently when it presented poor product management challenges. The company has seen a decline in its r4espources over the recent past, and this can be attributed to its shrinking market share. There are new entrants as well as other established competitors in the Indian automotive industry that are now giving Maruti Suzuki a run for its money. Hyundai and Tata are some of the new companies and are already giving Maruti Suzuki a competition for their consumers.
The poor product management at Maruti Suzuki has been a result of a lack of innovation, diversification, and the company’s brand image. Poor data collection and research by the company contributed to this decline in innovation that has resulted in a shrinking market share. The company has only been carrying out research on its product development using insights gained from the Indian market. This gives it a market share only in the country, while other brands like Hyundai, with a wider scope of research, are gaining prominence in international markets, thus increasing their market shares.
Maruti Suzuki has also not been observing consumer trends in their products. Most of their initial consumers are shifting their preferences from Indian cars to international brands, including Toyota and Hyundai. This reduction in the number of consumers who purchase their products locally results in lower sales, thus affecting the company’s profitability. Lack of proper research designs has proven to be the main cause of poor product management in Maruti Suzuki, and this has consequently resulted in its loss of profitability.
Maruti Suzuki, like any other company, is made up of both internal and external stakeholders. The company was initially established as a joint venture between the Government of India and the Suzuki Motor company. The company increased its equity shares and attained autonomy. With the decline in sales resulting from poor product management, the company’s key stakeholders are going to be affected. A company is set up with two main aims. The first aim is to provide for the consumers’ need, and two, to attain profitability for the owners.
In this case, the decline in profits means a decline in the owners’ profitability from the annual dividends. The management of the company that represents the shareholders will also be affected by the lower profit margins. Employees from the company are also likely to face a reduction in monthly reimbursements, making them other stakeholders who are affected by poor product management as affiliates of the company.
Motor vehicle dealers will also have an impact as a result of this. There are direct dealers who buy vehicles in wholesale from the company then retail them to consumers. With the reduction of innovation, consumers are not likely to buy these products. This makes the dealers run into losses. Finally, consumers of the Maruti Suzuki products will also be affected by poor product management. Consumers need products that fulfill their needs. With poor innovation, they will be buying products with very low satisfaction levels.
Poor product management has been seen to have adverse negative impacts on Maruti Suzuki as a company and all of its stakeholders. This study aims to provide insights into how this problem of poor management of the products can be resolved. More specifically, this paper aims to identify ways through which the company can improve its products to ensure it reestablishes itself in the market. The study also aims to identify which aspects of product management were ignored that led to the decline in the market share of Maruti Suzuki. Addressing all of these research objectives will provide an insightful report for the Maruti Suzuki company and other automobile companies facing the same problem to apply recommendations from this paper to attain a competitive advantage.
What will be the effect of Maruti Suzuki employing effective product development strategies and encouraging innovation on the company’s financial performance?
To complete this research study, data will have to be obtained from both the consumers and affiliates of Maruti Suzuki. The first ethical issue in the collection is ensuring that we have collected data in a manner that does not violate the subjects’ rights. This study will use direct interviews and questionnaires to collect data from the respondents. We will use random sampling to get a sample of the population. First, we will have to obtain consent from the people, and only those who consent will be used as respondents.
The data collected from the questionnaires and interviews will be stored in a secure and encrypted database. A backup on the cloud will be made of this same data. The human subjects will be treated in accordance with beneficence as an ethical principle. This allows us to treat the subjects in a humane way without violation of their human rights in the process. The anonymity of the subjects and confidentiality of their responses will be guaranteed so as to ensure that no privacy violations have been made. Vulnerable groups, including those with disabilities, the aged, and other vulnerable groups, will be given priority in this exercise’s conduction.
Maruti Suzuki has been associated with poor product management that has led it to fail in maintaining its competitive advantage against its business rivals in the automotive industry. Business continuity is dependent on a number of variables, including product development, quality of work, creativity, and efficient growth. The management is tasked with the responsibility of ensuring that all of these variables are met to ensure the business is productive. Several studies have been conducted that reveal how poor product management has affected businesses.
Suzuki did not apply scientific management theory in the management of its products (Anderson et al., 1994). The company’s management failed to ensure that there is continued innovation and research beyond the locality to the global arena to develop insights on how to develop their products. According to Locke (1982), failure to use the scientific theory of management in a business can have vast negative impacts. In this case, Suzuki lost its competitive advantage and resulted in losses.
Product management theory entails the development of a product to its best quality (Nambisan, 2002). Maruti Suzuki did not develop its product in accordance with this theory. The research that the company conducted was insufficient, and its developers lacked innovation to ensure that the product was of the highest quality. The preferences of customers began shifting to companies such as Hyundai. Dean and Bowen (1994) state the importance of marketing as one of the components of product development theory. As initially stated, Suzuki was not keen on monitoring consumer behaviors. This, in turn, impacted their marketing strategies. Consequently, they ended up losing to new entrants like Hyundai.
Bias in the literature
Positive bias has been presented by Anderson et al. (1994), where they claim that there has been a significant drop in the stocks of Maruti Suzuki over the years. However, there are other key players who have also had the same issue. The stock before and after the loss indicates a positive bias in the literature. This factor makes the study pose a validity question. The collected data is also not verifiable, as well as a lack of indication of the data collection method.
Other research studies
According to a research study in 2005 by Becker-Ritterspach, the same bias represented itself. The researcher indicates the lack of verification for the sources of information that was used in the study on Maruti Suzuki. The lack of proof towards the sources of information in this study renders it bias and makes it not reliable. Responses from questionnaires would have proven to be important in verifying sources of information.
Before the introduction of smartphones, Nokia was among the leading companies. However, with the introduction of smartphones, it became almost obsolete. The company failed to embrace the new innovation in the telecommunications industry by producing smartphones (Vuori & Huy, 2015). However, the company has made a comeback by positively managing its product and introducing smartphones to the market. Although this has happened many years later, they have still managed to regain their product management. Nokia partnered with Microsoft to produce smartphones with Microsoft’s name (Bala & Singh, 2016).
Anderson, J. C., Rungtusanatham, M., & Schroeder, R. G. (1994). A theory of quality management underlying the Deming management method. Academy of management Review, 19(3), 472-509.
Bala, R., & Singh, D. P. (2016). Nokia: It’s not over yet, A Come Back in 2016. International
Journal of Management, IT and Engineering, 6(2), 222-234.
Becker-Ritterspach, F. A. (2005). Transfer, intercultural friction and hybridization: empirical
evidence from a German automobile subsidiary in India. Asian Business & Management, 4(4), 365-387.
Dean, J. W., & Bowen, D. E. (1994). Management theory and total quality: improving research
and practice through theory development. Academy of management review, 19(3), 392-418.
Locke, E. A. (1982). The ideas of Frederick W. Taylor: an evaluation. Academy of Management
Review, 7(1), 14-24.
Nambisan, S. (2002). Designing virtual customer environments for new product development:
Toward a theory. Academy of Management Review, 27(3), 392-413.
Vuori, T. O., & Huy, Q. N. (2015). Distributed attention and shared emotions in the innovation process how Nokia lost the smartphone battle. Administrative Science Quarterly, 0001839215606951.
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