Wednesday 17 May 2017

You have been assigned to a project risk team of 5 members

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Project Management

Case Studies
CASE STUDY (20Marks)
You have been assigned to a project risk team of 5 members. Because this is a first time your organization has formally set up a riskteam for a project, it is hoped that your team will develop a process that can be used on all future projects. Your first team meeting isnext Monday morning. Each team member has been asked to prepare for the meeting by developing, in as much detail as possible,an outline that describes how you believe the team should proceed in handling project risks. Each team member will hand out theirproposed outline at the beginning of the meeting. Your outline should include but not be limited to the Team objectives, process forhandling risk events, Team activities, Team outputs.

Answer the following question.
Q1. Project risks can be eliminated if the project is carefully planned, Explain?
Q2. What is the difference between avoiding a risk and accepting a risk?
Q3. How you face the Schedule risk?
Q4. Explain the term RBS?

CASE STUDY (20Marks)
N Electricals Ltd. is evaluating a capital project requiring an outlay of Rs 12 million. It is expected to generate an annual cash inflowof Rs 3 million for 6 years. The opportunity cost of Capital is 20 per cent. N Electricals can raise a term loan of Rs 8 million for theproject. It will carry an interest rate of 18 p.c. and will be repayable in 8 equal annual installments, the first installment falling due atthe end of the second year. The balance amount required for the project can be raised by issuing external equity. The issue cost isexpected to be 12 per cent. The tax rate for the company is 30 per cent.
Answer the following question.
Q1. What is base­case of NPV?
Q2. What is adjusted cost of capital?
Q3. What is adjusted NPV if the adjustment is made only for the issue cost of external equity?
Q4. What is the present value of the tax shield on debt finance?

CASE STUDY (20Marks)
Praveen B a Ph D in molecular biology, is working as a professor in the International Science Institute. Based on this research work,he has developed an enzyme which he believed has commercial potential. Praveen B has set up Enzy Laboratories to commerciallydevelop the product. Enzy Lab. Has approached Gamma Venture Capital with a funding request for Rs 200 million by way of equity.
Gamma requires a rate of return of 30 per cent from its equity investment in Enzy and its planned holding period is 5 years. Enzy hasprojected an EBITDA of Rs 300 million for year 5, which Gamma considers to be credible. Gamma believes that an EBITDAmultiple of 6 for year 5 to be reasonable. At the end of year 5, Enzy is likely to have a debt of Rs 200 million and a cash balance ofRs 80 million.

Answer the following question.
Q1. What share in equity of Enzy will Gamma ask for?
Q2. What factors generally influence valuation of VC deals?
Q3. What incentive mechanisms are usually incorporated in VC deals?
Q4. Discuss the considerations an entrepreneur like Praveen B should bear in mind while approaching a VC Fund?

CASE STUDY (20Marks)
Microelectronics Corporation is currently at its target debt equity ratio of 5:1. It is considering a proposal to expand capacity, whichis expected to cost Rs 500 million and generate after tax cash flows of Rs 130 million per year for the next 8 years. The tax rate forthe firm is 30 percent. Mahesh the CEO of the company, has considered two financing options. a) Issue of equity stock. The requiredreturn on the company’s new equity is 20 per cent and the issuance cost will be 12 per cent. b) Issue of debentures at a yield of 13percent. The issuance cost will be 3 per cent.

Answer the following question.
Q1. What is the WACC for Micro­electronics?
Q2. What is Microelectronic’s weighted average flotation cost?
Q3. What is the NPV of the proposal after taking into account the flotation costs?
Q4. Do you have any suggestion to Mahesh?

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Write a short note on Decision­Support System



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Management Control Systems


Answer the following question.

Q1. Describe the criteria on which the incentives of business unit managers are decided. (10 marks)

Q2. Explain the concept of goal congruence (informal and formal). (10 marks)

Q3. Explain ideal Management Control in organization and its features. (10 marks)

Q4. Draw a plan of ideal Management Control System in a SERVICES sector. (10 marks)

Q5. Explain the various stages of Management Control Process and its features. (10 marks)

Q6. Write a short note on Decision ­Support System (10 marks)

Q7. Application of MCS in Service Organizations and Proprietary organizations. (10 marks)

Q8. What are the limitations of variance analysis. (10 marks)


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Why do bond prices go down when interest rates go up Don’t lenders like high interest rates


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Investments



Q1. What is the least risky asset for each of the following investors?

 a. A person investing for her 3­ year ­old child’s college tuition.

b. A defined benefit pension fund with benefit obligations that have an average duration of 10 years. The benefits are not inflation protected.

c. A defined benefit pension fund with benefit obligations that have an average duration of 10 years. The benefits are inflation protected.

Q2. How might the incentive fee of a hedge fund affect the manager’s proclivity to take on high-risk assets in the portfolio?

Q3. Conventional wisdom says that one should measure a manager’s investment performance over an entire market cycle. What arguments support this convention? What arguments contradict It?

Q4. The ABC Corporation has a profit margin on sales below the industry average, yet its ROA is above the industry average. What does this imply about its asset turnover?

Q5. Why do bond prices go down when interest rates go up? Don’t lenders like high interest rates?

Q6. Search the internet for a recent graph of market volatility. What does this history suggest about the history of consumption growth?

Q7. If the APT is to be a useful theory, the number of systematic factors in the economy must be small. Why?

Q8. If the offering price of an open-end fund is Rs. 12.30 per share and the fund is sold with a front­end load of 5%, what is its net asset value?



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When HLL introduced Lifebuoy in the Indian market in 1895


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Marketing Management



Case Studies
CASE STUDY (20 Marks)
This case analyses the distribution strategy of Hindustan Lever Limited (HLL), the 51.6% subsidiary of Unilever and the largest FMCG Company in India. Traditionally HLL's distribution network consisted of wholesalers and retailers. HLL had presence in 80 lakhs retail outlets and there was 'one size fit for all' distribution strategy to serve all those outlets. But due to change in consumer demography, consumer behavior and market structure, the traditional distribution system failed to deliver the results. Urban customers wanted products with unique, value added and customized offerings with convenient shopping. Apart from this, emergence of rural market also forced HLL to change its distribution system. HLL dealt with these two issues differently. For urbanmarket it developed different distribution system cater to different type of customers. Along with this, it provided value added service, convenience and customized offering to urban customers. On the other hand, in rural markets, to increase brand awareness and product availability, it introduced alternative distribution systems. Through these changes, HLL brought its brands closer to customers. HLL's approach to distribution was holistic and developed a three way convergence of product availability, brand communication and brand experience.

Answer the following question.

Q1. Discuss about the supply chain management and logistics system in FMCG market

Q2. Explain the effectiveness of logistics system in rural market.

Q3. Debate the evolution of market logistics system.

Q4. Discuss how effective implementation of information technology helps   company to make its supply chain an efficient one


CASE STUDY (20 Marks)
Neither China nor the Chinese companies can be any more ignored at any international business discussion. An officiated reason is Lenovo’s acquisition of IBM’s PC division that has revved up brand China. After that, Lenovo is busy building its own brand at the global level. This top PCmaker
in China has served its home turf so well with its unique business model, dubbed the ‘Transactional Model’. It is quite upbeat that the strategy will pay off globally too catapulting it to the top spot. However, skeptics have their reasons; mainly that its top3 rivals HP, Dell and Acer wouldn’t let Lenovo topple them. The case study helps debate if Lenovo’s ‘Transactional Model’ is suitable for other countries also, and if this model helps it combat global giants operating at a bigger scale. The case also helps discuss loopholes in Lenovo’s model and how to fill them up.

Answer the following question.

Q1. Describe the significance of brand building in such an industry

Q2. Devise the ways by which companies can overcome their legacy costs, when going global.



CASE STUDY (20 Marks)
When HLL introduced Lifebuoy in the Indian market in 1895 (110 years ago) it was positioned as the soap that would destroy germs and keep the body healthy. The brand found the going tough especially in rural markets where most people were accustomed to without any soap. HLL then decided to project lifebuoy as soap for hand wash. The approach seemed is pay off. By 1900 Lifebuoy had established itself as soap for hand wash. At this stage, the brand’s inherent properties were expanded and lifebuoy was
repositioned as bath soap. Health remained the benefit proposition. “Where there is lifebuoy, there is health”, become a popular jingle in rural India. The brand was also projected on the plank of economy. Much later, in 1964, the brand was re launched with a change in shape and wrapper design. Lifebuoy started associated with sports. The health and body fitness dimension got reinforced HLL had many requirements to meet. It had to tap same of the emergency market needs. It had to play down the image of lifebuoy as villagers soap and it had to embrace to earnings from lifebuoy brand in the long term. HLL decided to meet these needs through line extensions such as: Lifebuoy personal, Lifebuoy plus, Lifebuoy gold, liquid lifebuoy and lifebuoy active.

Answer the following question.

Q1. How did HLL Position lifebuoy in the beginning?

Q2. What was the geographical focus and why?

Q3. Explain why the brand was going tough in the market?

Q4. What are your views about HLL’s building line extensions?



CASE STUDY (20 Marks)
To build awareness amongst Malaysia's Muslim community, Hong Leong Islamic Bank Berhad (HLISB) took a YouTube first approach and produced a video in centered around the Malay culture of giving dowry. The first campaign they created was a six minute video called “Amin eh Mano”, published in November last year. Relatable content isn't just speaking the language of your target audience; it's also about speaking to them – what tugs at their heartstrings, what makes them laugh, what engages them. ”We
set out to first understand the psyche, the likes and dislikes of the typical Malay from what they eat, what they do, what they listen to, to what they watch,” shares Sairana Mohd Saad, Head of Branding, Communications & Corporate Social Responsibility at HLISB. “To hit the majority of the Malay audience, especially when a message is coming from an unknown Chinese brand like Hong Leong, I reckoned that we had to add in some exaggeration to accentuate the message and be seen as a company that understands the core of the Malay culture.” Thus the Negeri Sembilan dialect was strategically chosen for a localised tone. Weddings, which are a huge part of the Malay culture which emphasizes on kinship, became the subject of the video. The mini drama unfolds in the setting of a Malay kampung (village) one which the target demographic can easily relate to. “I wanted it to be not just tearjerker ad. It had to have a different touch one which no other brand ad had,” shares Saad. The success of “Amin eh Mano” is evidence that good long form digital content is effective in creating viewer engagement. YouTube Analytics viewer engagement chart shows that after the natural drop off in the first 5 seconds, most viewers stayed on to watch the video almost to completion. Based on the success of this first video, HLISB is planning a series of YouTube videos as part of their online campaign. “HLISB will continue its series of unique storytelling in the hopes of winning the hearts and minds of our target audience. The stories are all based on teachings of the Qur'an and Hadiths, but most importantly, they are inherently connected with a strong story to the bank's digital technology capabilities,” concludes Saad.

Answer the following question.

Q1. Describe the usefulness of the technology used by Hong Leong Islamic Bank Berhad (HLISB), for marketing.

Q2. Was the marketing goal and approach successful? Discuss in detail.


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What was the Johnson &Johnson’s new HR Model Discuss its usefulness.


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Human Resource Management


Case Studies
CASE STUDY (20 Marks)
University of Haute Picardie, in Southern France initiates the Total Quality Management (TQM) program to obtain – the ISO 9001 certificate for all the schools and departments within the university. The focus of this case study is the school of management studies where a part of this programme is being implemented. The initial stage of the programme encounters both ‘processes and ‘people’ related problems. The case study looks into the initiatives of the new Dean, Professor Jean Deroo, who starts the change process – by motivating people to ‘buyin’ the change, and then bringing in structural changes to the school so that the TQM programme can be implemented successfully. The case study leads to an interesting debate – can change programmes be successful in the absence of efficient leadership?

Answer the following question.
Q1. Give an overview of the case.
Q2. Discuss the details of the likely encounters with ‘processes’ and ‘people’ in the implementation stage.


CASE STUDY (20 Marks)
Many nonprofit organizations face ongoing challenges when it comes to human resources management (HRM). Struggling to juggle competing demands of clients and funders, HRM often falls by the wayside, in spite of its acknowledged importance. In 2002, an innovative solution was proposed by the Muttart Foundation in the form of an HR Cluster Program. As a shared services program, the HR Cluster focused specifically on pooling resources to provide a group of agencies support and access to expertise in HR management. The six agencies involved in the Edmonton pilot group, including BBBSE, collectively employed 250 full time and 77 part time staff. Led by Eldon Emerson, an HR professional who provided support and counsel, the cluster worked to address various HR needs including the administration of salaries and benefits, policy and procedure development, performance management, and best practices with respect to hiring selection and interviewing. Executive Directors in the cluster met regularly as a group and worked one on one with Emerson to address their organization’s HR challenges. One of the projects that grew out of the cluster for BBBSE was an organizational review process that shifted O’Neill’s focus from dealing with immediate staff issues to matters related
to organizational structure, the services they offered and how they were offered, as well as board relations, roles and responsibilities. As a result of this organizational review process, the agency was able to reconfigure its programming structure in a way that allowed them to serve more clients, while not overtaxing staff or requiring additional staff. In rethinking their service delivery model, they moved away from programming silos towards a structure that saw staff connected to a community or geographic region rather than a particular program. By developing new ways of partnering with other agencies in the communities that it serves, the organization was better able to meet client needs while creating a new staffing structure that allowed for better support and increased engagement of the staff team. Prior to working with the cluster O’Neill reported that much HR management took place through hallway discussions between herself and the finance manager with the two of them juggling responsibility for the portfolio. Through learning that emerged from the cluster, BBBSE decided to hire a manager of human resources and learning in addition to a manager of mission effectiveness – two new permanent staff positions – because experience had taught them unless they created dedicated positions for these priority areas it was likely that many of the leanings and benefits of the HR cluster would fade away. These new positions didn’t add to the organization’s budget as they were resourced from savings resulting from the reworked service delivery model. Many organizations pay lip service to putting people first. At BBBSE, an effective people first strategy is essential to making the organization work. The core of the agency’s human resource capacity is a volunteer workforce of more than 2,000 individuals
who interact directly with its clients. There are 35 staff who support these volunteers through face to face or phone meetings. O’Neill credits a great deal of the organization’s success to the long term involvement by staff and senior volunteers. “When an organization experiences continuous turnover in key positions a great deal of time is spent getting everyone onto the same page. We’ve been working together for such a long time that we have a shared vision of what we’re trying to achieve, and have a common understanding of what needs to happen for things to get done.” This type of shared experience contributes not only to a shared vision but also to a common language, enabling the organization to more easily take advantage of emerging opportunities and to make significant changes fairly quickly. Time that other organizations spend training staff and board is available to BBBSE for reflection and planning, activities that many agencies rarely find the opportunity to pursue. When people do leave BBBSE they tend to stay
connected to the organization. According to O’Neill board members go on to sit on other influential boards and remain BBBSE champions. Staff and board often return as volunteers. Their continued engagement means that organizational knowledge is preserved, and capacity is enhanced. This ability to retain staff and volunteers has occurred as a direct result of the organization’s focus on its people and the shared commitment all those involved have to doing the best they can for the children and families they serve. The BBBSE leadership team meets regularly with their direct reports, creating opportunities for feedback (in both directions), voicing of concerns and a forum for ongoing open communication. Most importantly, the organization listens to its staff. As a result of redesigning the organization’s service delivery model and processes, which involved delegating some decision making to front line staff, staff is now involved in more facets of the organization’s business. While programs and services are developed in response to client and community needs and through partnerships with other organizations, staff members are heavily involved in the process. As O’Neill points out, organizational decisions have to work for the staff as well as for the clients in order to be effective. Another area that staff are now fully engaged and involved in is annual work planning and budgeting. The process starts with a staff group identifying emerging trends, issues, and opportunities, and initiating a discussion of whether changes are required to existing programs and services. The resulting discussion paper is shared with remaining staff for review and input. The amended document is then used by members of the Leadership Team to craft departmental business plans incorporating goals, objectives, strategies, desired outcomes, and resources required. These pieces are fed into an overall organizational business plan. In this way staff is more engaged and have a vested interest in the final outcome.

Answer the following question.
Q1. Discuss the importance of HR Cluster Program proposed by the Muttart Foundation.
Q2. Debate on “an effective people first strategy” at BBBSE.
Q3. “O’Neill credits a great deal of the organization’s success to the long term involvement by staff and senior volunteers” comment.
Q4. Explain the necessity of staff involvement in the organizational plan.


CASE STUDY (20 Marks)
Infosys Technologies Ltd. (Infosys), one of India's leading information technology (IT) companies started the 'Voice of Youth' (VoY) program in 1994 to harness the creative energy of its young employees and also develop future leaders. As of 2008, the company was not only considered one of the most innovative companies globally, but its VoY program also catapulted it to the league of 'Top Companies for Leaders'. Infosys Technologies Ltd. (Infosys), one of India's leading information technology (IT) companies, was founded in 1981. As of early 2008, it had not only established itself as a technology powerhouse in the global IT arena but had also earned a lot of kudos for its innovative human resources management (HR) practices...


Answer the following question.
Q1. What are the effects of such programs on the motivation level of employees?

CASE STUDY (20 Marks)
Johnson & Johnson embarked on a new HR transformation journey across the globe and as part of the new HR model, there would be a recruitment specialist group in each country across three key sectors. This aim of this new model was to increase and enhance synergies in the way the company attracts new talent and explore methods of increasing both the hiring manager and candidate experience as well as building on the employer brand. The implementation across the UK took six months, harmonizing best practice and policy across the three sectors and all of the operating businesses. This process included identifying, attracting and employing externally a brand new team of seven UK based recruitment professionals to start within three months. After reaching out to Hudson in Reading Johnson & Johnson decided to partner with Hudson HR who understood the project requirements, timelines and desired candidate personality. Even though Johnson & Johnson were looking for experienced professionals, it was equally important to hire people who would be a great fit for the company, looking to build careers within the organization and who would bring fun and new ideas to the table. Hudson took the time to understand the initiative and how the model was going to work, and agreed timelines and process up front. By getting to know the hiring manager, Hudson thoroughly understood what would be important and how the virtual team should be motivated and work together. Hudson met with all of the candidates and due diligence was conducted in understanding the organization but taking into consideration Johnson & Johnson’s values and Credo. The EMEA Director of  Resourcing was amazed at how a complete team was hired in time for training with the US. For Johnson & Johnson it was very unusual for any expansion country to ‘go live’ with a full team hired on the same day. Hudson helped manage all the negotiating around start dates and training commitments which relieved the hiring manager. After four days together on training, the team had bonded and settled in well. Five months on, the team has a lot of challenges; steps which were omitted in the implementation process or training but the team take it all on board and deal with it with humor and confidence. The team has had impressive feedback from the rest of the Johnson & Johnson business on how professional they are and how the team understands the business and industry. Line managers enjoy recruiting again because they work with business partners who understand their needs and want to make it a great experience.

Answer the following question.
Q1. Give an overview of the case.
Q2. What was the Johnson &Johnson’s new HR Model? Discuss its usefulness.

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What was the geographical focus and why


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Marketing Management



Case Studies
CASE STUDY (20 Marks)
This case analyses the distribution strategy of Hindustan Lever Limited (HLL), the 51.6% subsidiary of Unilever and the largest FMCG Company in India. Traditionally HLL's distribution network consisted of wholesalers and retailers. HLL had presence in 80 lakhs retail outlets and there was 'one size fit for all' distribution strategy to serve all those outlets. But due to change in consumer demography, consumer behavior and market structure, the traditional distribution system failed to deliver the results. Urban customers wanted products with unique, value added and customized offerings with convenient shopping. Apart from this, emergence of rural market also forced HLL to change its distribution system. HLL dealt with these two issues differently. For urbanmarket it developed different distribution system cater to different type of customers. Along with this, it provided value added service, convenience and customized offering to urban customers. On the other hand, in rural markets, to increase brand awareness and product availability, it introduced alternative distribution systems. Through these changes, HLL brought its brands closer to customers. HLL's approach to distribution was holistic and developed a three way convergence of product availability, brand communication and brand experience.

Answer the following question.

Q1. Discuss about the supply chain management and logistics system in FMCG market

Q2. Explain the effectiveness of logistics system in rural market.

Q3. Debate the evolution of market logistics system.

Q4. Discuss how effective implementation of information technology helps   company to make its supply chain an efficient one


CASE STUDY (20 Marks)
Neither China nor the Chinese companies can be any more ignored at any international business discussion. An officiated reason is Lenovo’s acquisition of IBM’s PC division that has revved up brand China. After that, Lenovo is busy building its own brand at the global level. This top PCmaker
in China has served its home turf so well with its unique business model, dubbed the ‘Transactional Model’. It is quite upbeat that the strategy will pay off globally too catapulting it to the top spot. However, skeptics have their reasons; mainly that its top3 rivals HP, Dell and Acer wouldn’t let Lenovo topple them. The case study helps debate if Lenovo’s ‘Transactional Model’ is suitable for other countries also, and if this model helps it combat global giants operating at a bigger scale. The case also helps discuss loopholes in Lenovo’s model and how to fill them up.

Answer the following question.

Q1. Describe the significance of brand building in such an industry

Q2. Devise the ways by which companies can overcome their legacy costs, when going global.



CASE STUDY (20 Marks)
When HLL introduced Lifebuoy in the Indian market in 1895 (110 years ago) it was positioned as the soap that would destroy germs and keep the body healthy. The brand found the going tough especially in rural markets where most people were accustomed to without any soap. HLL then decided to project lifebuoy as soap for hand wash. The approach seemed is pay off. By 1900 Lifebuoy had established itself as soap for hand wash. At this stage, the brand’s inherent properties were expanded and lifebuoy was
repositioned as bath soap. Health remained the benefit proposition. “Where there is lifebuoy, there is health”, become a popular jingle in rural India. The brand was also projected on the plank of economy. Much later, in 1964, the brand was re launched with a change in shape and wrapper design. Lifebuoy started associated with sports. The health and body fitness dimension got reinforced HLL had many requirements to meet. It had to tap same of the emergency market needs. It had to play down the image of lifebuoy as villagers soap and it had to embrace to earnings from lifebuoy brand in the long term. HLL decided to meet these needs through line extensions such as: Lifebuoy personal, Lifebuoy plus, Lifebuoy gold, liquid lifebuoy and lifebuoy active.

Answer the following question.

Q1. How did HLL Position lifebuoy in the beginning?

Q2. What was the geographical focus and why?

Q3. Explain why the brand was going tough in the market?

Q4. What are your views about HLL’s building line extensions?



CASE STUDY (20 Marks)
To build awareness amongst Malaysia's Muslim community, Hong Leong Islamic Bank Berhad (HLISB) took a YouTube first approach and produced a video in centered around the Malay culture of giving dowry. The first campaign they created was a six minute video called “Amin eh Mano”, published in November last year. Relatable content isn't just speaking the language of your target audience; it's also about speaking to them – what tugs at their heartstrings, what makes them laugh, what engages them. ”We
set out to first understand the psyche, the likes and dislikes of the typical Malay from what they eat, what they do, what they listen to, to what they watch,” shares Sairana Mohd Saad, Head of Branding, Communications & Corporate Social Responsibility at HLISB. “To hit the majority of the Malay audience, especially when a message is coming from an unknown Chinese brand like Hong Leong, I reckoned that we had to add in some exaggeration to accentuate the message and be seen as a company that understands the core of the Malay culture.” Thus the Negeri Sembilan dialect was strategically chosen for a localised tone. Weddings, which are a huge part of the Malay culture which emphasizes on kinship, became the subject of the video. The mini drama unfolds in the setting of a Malay kampung (village) one which the target demographic can easily relate to. “I wanted it to be not just tearjerker ad. It had to have a different touch one which no other brand ad had,” shares Saad. The success of “Amin eh Mano” is evidence that good long form digital content is effective in creating viewer engagement. YouTube Analytics viewer engagement chart shows that after the natural drop off in the first 5 seconds, most viewers stayed on to watch the video almost to completion. Based on the success of this first video, HLISB is planning a series of YouTube videos as part of their online campaign. “HLISB will continue its series of unique storytelling in the hopes of winning the hearts and minds of our target audience. The stories are all based on teachings of the Qur'an and Hadiths, but most importantly, they are inherently connected with a strong story to the bank's digital technology capabilities,” concludes Saad.

Answer the following question.

Q1. Describe the usefulness of the technology used by Hong Leong Islamic Bank Berhad (HLISB), for marketing.

Q2. Was the marketing goal and approach successful? Discuss in detail.


Assignment Solutions, Case study Answer sheets
Project Report and Thesis contact
ARAVIND – 09901366442 – 09902787224