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Student Name: S. Venugopal, Roll No.

520917287, MBA 4th Semester, Subject Code MB0036 Strategic Management and Business policy - 3 credits Assignment Set 1 ( 60Marks)
Q.1 Assess the need for Corporate Social Responsibility with supporting instances. Ans;- CSR is a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis. The main function of an enterprise is to create value through producing goods and services that society demands, thereby generating profit for its owners and shareholders as well as welfare for society, particularly through an ongoing process of job creation. However, new social and market pressures are gradually leading to a change in the values and in the horizon of business activity. There is today a growing perception among enterprises that sustainable business success and shareholder value cannot be achieved solely through maximising short-term profits, but instead through market-oriented, yet responsible behaviour. Companies are aware that they can contribute to sustainable development by managing their operations in such a way as to enhance economic growth and increase competitiveness whilst ensuring environmental protection and promoting social responsibility, including consumer interests. In this context, an increasing number of firms have embraced a culture of CSR. Despite the wide spectrum of approaches to CSR, there is large consensus on its main features: CSR is behaviour by businesses over and above legal requirements, voluntarily adopted because businesses deem it to be in their longterm interest; CSR is intrinsically linked to the concept of sustainable development: businesses need to integrate the economic, social and environmental impact in their operations; CSR is not an optional "add-on" to business core activities but about the way in which businesses are managed.

Socially responsible initiatives by entrepreneurs have a long tradition in Europe. What distinguishes todays understanding of CSR from the initiatives of the past is the attempt to manage it strategically and to develop instruments for this. It means a business approach, which puts stakeholders expectations and the principle of continuous improvement and innovation at the heart of business strategies. What constitutes CSR depends on the particular situation of individual enterprises and on the specific context in which they operate, be it in Europe or elsewhere. In view of the EU enlargement, it is however important to enhance common understanding both in Member States and candidate countries. The Growing Recognition of CSR :CSR has found recognition among enterprises, policy-makers and other stakeholders, as an important element of new and emerging forms of governance, which can help them to respond to the following fundamental changes:

Globalization has created new opportunities for enterprises, but it also has increased their organizational complexity and the increasing extension of business activities abroad has led to new responsibilities on a global scale, particularly in developing countries. Considerations of image and reputation play an increasingly important role in the business competitive environment, as consumers and NGOs ask for more information about the conditions in which products and services are generated and the sustainability impact thereof, and tend to reward, with their behaviour, socially and environmentally responsible firms. Partly as a consequence of this, financial stakeholders ask for the disclosure of information going beyond traditional financial reporting so as to allow them to better identify the success and risk factors inherent in a company and its responsiveness to public opinion. As knowledge and innovation become increasingly important for competitiveness, enterprises have a higher interest in retaining highly skilled and competent personnel.

The Global Dimension of CSR : Global governance and the interrelation between trade, investment and sustainable development are key issues in the CSR debate. Indeed, awareness of CSR issues and concerns will contribute to promote more sustainable investments, more effective development co-operation and technology transfers. Both processes of trade and financial markets liberalization should be matched by appropriate progress towards an effective system of global governance including its social and environmental dimensions. Globalization has also increasingly exposed enterprises to trans-boundary economic criminality, requiring an international response. By abiding by internationally accepted standards, multinational enterprises can contribute to ensure that international trade markets function in a more sustainable way and it is therefore important that the promotion of CSR at international level takes as its basis international standards and agreed instruments. Those agreed instruments are, at present, of two kinds: First, the OECD Guidelines for Multinational Enterprises are the most comprehensive, internationally endorsed set of rules governing the activities of multinationals. In promoting CSR in developing countries, EU businesses should demonstrate and publicise their world-wide adherence to them. Second, beyond CSR, international agreements are in place and their implementation by governments should be promoted. In its communication on Promoting Core Labour Standards and Improving Social Governance in the context of Globalization[1], the Commission stressed the need to ensure the respect for core labour standards in the context of globalization. It stressed in particular the universality of core labour standards and the need for codes of conduct to integrate the ILO fundamental Conventions. At the same time, identifying common frameworks for the global dimension of CSR is challenging due to the diversity in domestic policy frameworks, protection of workers and environmental regulation. A number of initiatives in which European companies participate, such as Investors for Africa, World Business Council for Sustainable Development, and the UN Global Compact have sought to identify basic principles and practices. The underlying approach should be that, at global level, just as at European, the implementation of CSR principles should also go over and above the legal requirements that businesses need to comply with, and approaches should involve consultation with local stakeholders.

Student Name: S. Venugopal, Roll No. 520917287, MBA 4th Semester, Subject Code MB0036 Strategic Management and Business policy - 3 credits Assignment Set 1 ( 60Marks)
CSR practices and instruments will be more effective if they are part of a concerted effort by all those concerned towards shared objectives. They should be transparent and based on clear and verifiable criteria or benchmarks. Public policy can contribute to the development of an action framework with a view to promote transparency and thus credibility for CSR practices. Q.2 Explain how strategies are formulated and implemented. Ans:- Strategy Formulation and Implementation : It is the crux of the strategic management process. Strategy refers to the course of action desired to achieve the objectives of the enterprise. Formulation, together with its implementation, constitutes an integral part of the management activity. Managers use strategies for different purposes such as to overcome competition, to increase sales, to increase production, to motivate the employees to provide their best, and so on. Implementation of a strategy is a crucial task as the formulation of it. There may be a lot of resistance during the implementation process. It is necessary for the manager to be very tactful to involve the members of his group in the formulation of strategy to facilitate the implementation process. Stages in Strategy Formulation and Implementation a) b) c) d) e) f) g) h) Identification of mission and objectives Environment scanning Generic strategy alternatives Strategy variations Strategic choice Allocation of resources and formulation of organisational structure Formulation of plans, policies, programmes and administration Evaluation and control

Strategy formulation and implementation : NOKIA studies closely each of the subsets of its customer segments. It carefully assesses what appeals to each of them most. After identifying their purchasing power, it chooses the appropriate technology and then formulates the strategy. When MOTOROLA could not take off with seven varieties of cell phones, NOKIA struck gold with just two plain models. The secret of success was that the products were changed or adapted to local conditions. In other words, the products and services were more Indianised to ensure survival in the Indian markets. NOKIA could successfully formulate its strategy around its different customer segments, varying appeals and affordable technology. TAPARIA, CEO of Rajashree Cements followed a value enhancement strategy to capture the market dominated by 43 grade, where ACC and L&T were market leaders. He noticed that nobody thought of the market-positioning slot for superior grade 53, which, despite high price, leads to overall savings due to less consumption. He expected that a shift from 43 to 53 grade would require convincing, for which channel support and its participation in communication were essential. To popularise grade 53, Taparia launched the Shoppe concept by associating with weak and small channel members. The Shoppe concept empowered them with the services of a civil/structural engineer at Rajashrees cost for any type of consultation with the customers visiting the shoppe. The neat and clean environment of the cement outlets attracted the customers who were otherwise used to the dirty and dusty environment of cement outlets. The customers were assured of the availability and reliability of the quality products. The customer could avail the services of a civil engineer and also sit in an air-conditioned chamber of the Shoppe and watch a video film on grade 53. The quality of documentation (invoices, challans) was improved to create confidence in the customer. The success of the Shoppe concept was evident from a rise in demand from 5000 tonnes per month to 45,000 TpM in Pune alone. Even established giants like ACC and LandT had to follow his footsteps by introducing grade 53 and also developing their own exclusive outlets like ACC ki duniya and LandT station. Q.3. a. What is the purpose of business continuity plan? b. Give a short note on mitigation strategies. Ans:- Purpose of Business Continuity Plan : Recent world events have challenged us to prepare to manage previously unthinkable situations that may threaten an organizations future. This new challenge goes beyond the mere emergency response plan or disaster management activities that we previously employed. Organizations now must engage in a comprehensive process best described generically as Business Continuity. It is no longer enough to draft a response plan that anticipates naturally, accidentally, or intentionally caused disaster or emergency scenarios. Todays threats require the creation of an on-going, interactive process that serves to assure the continuation of an organizations core activities before, during, and most importantly, after a major crisis event. In the simplest of terms, it is good business for a company to secure its assets. CEOs and shareholders must be prepared to budget for and secure the necessary resources to make this happen. It is necessary that an appropriate administrative structure be put in place to effectively deal with crisis management. This will ensure that all concerned understand who makes decisions, how the decisions are implemented, and what the roles and responsibilities of participants are. Personnel used for crisis management should be assigned to perform these roles as part of their normal duties and not be expected to perform them on a voluntary basis. Regardless of the organization for profit, not for profit, faith-based, non-

Student Name: S. Venugopal, Roll No. 520917287, MBA 4th Semester, Subject Code MB0036 Strategic Management and Business policy - 3 credits Assignment Set 1 ( 60Marks)
governmental its leadership has a duty to stakeholders to plan for its survival. The vast majority of the national critical infrastructure is owned and operated by private sector organizations, and it is largely for these organizations that this guideline is intended. ASIS, the worlds largest organization of security professionals, recognizes these facts and believes the BC Guideline offers the reader a user-friendly method to enhance infrastructure protection. Key Words : Business Continuity Plan, Business Impact Analysis, Crisis Management Team, Critical Functions, Damage Assessment, Disaster, Evaluation and Maintenance, Mitigation Strategies, Mutual Aid Agreement, Prevention, Readiness, Recovery/Resumption, Resource Management, Response, Risk Assessment, Testing and Training. Ans:- Mitigation Strategies Devise Mitigation Strategies :Cost effective mitigation strategies should be employed to prevent or lessen the impact of potential crises. For example, securing equipment to walls or desks with strapping can mitigate damage from an earthquake; sprinkler systems can lessen the risk of a fire; a strong records management and technology disaster recovery program can mitigate the loss of key documents and data. Resources Needed for Mitigation : The various resources that would contribute to the mitigation process should be identified. These resources, including essential personnel and their roles and responsibilities, facilities, technology, and equipment should be documented in the plan and become part of business as usual. Monitoring Systems and Resources : Systems and resources should be monitored continually as part of mitigation strategies. Such monitoring can be likened to simple inventory management. The resources that will support the organization to mitigate the crisis should also be monitored continually to ensure that they will be available and able to perform as planned during the crisis. Examples of such systems and resources include, but are not limited to: Emergency equipment Fire alarms and suppression systems Local resources and vendors Alternate worksites Maps and floor plans updated/changed due to construction and internal moves System backups and offsite storage.

Q.4. Distinguish between financial investor and strategic investor. Ans;- In the not so distant past, there was little difference between financial and strategic investors. Investors of all colors sought to safeguard their investment by taking over as many management functions as they could. Additionally, investments were small and shareholders few. A firm resembled a household and the number of people involved in ownership and in management was correspondingly limited. People invested in industries they were acquainted with first hand. As markets grew, the scales of industrial production (and of service provision) expanded. A single investor (or a small group of investors) could no longer accommodate the needs even of a single firm. As knowledge increased and specialization ensued it was no longer feasible or possible to micro-manage a firm one invested in. Actually, separate businesses of money making and business management emerged. An investor was expected to excel in obtaining high yields on his capital not in industrial management or in marketing. A manager was expected to manage, not to be capable of personally tackling the various and varying tasks of the business that he managed. Thus, two classes of investors emerged. One type supplied firms with capital. The other type supplied them with know-how, technology, management skills, marketing techniques, intellectual property, clientele and a vision, a sense of direction. In many cases, the strategic investor also provided the necessary funding. But, more and more, a separation was maintained. Venture capital and risk capital funds, for instance, are purely financial investors. So are, to a growing extent, investment banks and other financial institutions. The financial investor represents the past. Its money is the result of past - right and wrong - decisions. Its orientation is short term: an "exit strategy" is sought as soon as feasible. For "exit strategy" read quick profits. The financial investor is always on the lookout, searching for willing buyers for his stake. The stock exchange is a popular exit strategy. The financial investor has little interest in the company's management. Optimally, his money buys for him not only a good product and a good market, but also a good management. But his interpretation of the rolls and functions of "good management" are very different to that offered by the strategic investor. The financial investor is satisfied with a management team which maximizes value. The price of his shares is the most important indication of success. This is "bottom line" short termism which also characterizes operators in the capital markets. Invested in so many ventures and companies, the financial investor has no interest, nor the resources to get seriously involved in any one of them. Micro-management is left to others - but, in many cases, so is macro-management. The financial investor participates in quarterly or annual general shareholders meetings. This is the extent of its involvement. The strategic investor, on the other hand, represents the real long term accumulator of value. Paradoxically, it is the strategic investor that has the greater influence on the value of the company's shares. The quality of management, the rate of the introduction of new products, the success or

Student Name: S. Venugopal, Roll No. 520917287, MBA 4th Semester, Subject Code MB0036 Strategic Management and Business policy - 3 credits Assignment Set 1 ( 60Marks)
failure of marketing strategies, the level of customer satisfaction, the education of the workforce - all depend on the strategic investor. That there is a strong relationship between the quality and decisions of the strategic investor and the share price is small wonder. The strategic investor represents a discounted future in the same manner that shares do. Indeed, gradually, the balance between financial investors and strategic investors is shifting in favour of the latter. People understand that money is abundant and what is in short supply is good management. Given the ability to create a brand, to generate profits, to issue new products and to acquire new clients - money is abundant. These are the functions normally reserved to financial investors: Financial Management: The financial investor is expected to take over the financial management of the firm and to directly appoint the senior management and, especially, the management echelons, which directly deal with the finances of the firm. 1. To regulate, supervise and implement a timely, full and accurate set of accounting books of the firm reflecting all its activities in a manner commensurate with the relevant legislation and regulation in the territories of operations of the firm and with internal guidelines set from time to time by the Board of Directors of the firm. This is usually achieved both during a Due Diligence process and later, as financial management is implemented. To implement continuous financial audit and control systems to monitor the performance of the firm, its flow of funds, the adherence to the budget, the expenditures, the income, the cost of sales and other budgetary items. To timely, regularly and duly prepare and present to the Board of Directors financial statements and reports as required by all pertinent laws and regulations in the territories of the operations of the firm and as deemed necessary and demanded from time to time by the Board of Directors of the Firm. To comply with all reporting, accounting and audit requirements imposed by the capital markets or regulatory bodies of capital markets in which the securities of the firm are traded or are about to be traded or otherwise listed. To prepare and present for the approval of the Board of Directors an annual budget, other budgets, financial plans, business plans, feasibility studies, investment memoranda and all other financial and business documents as may be required from time to time by the Board of Directors of the Firm. To alert the Board of Directors and to warn it regarding any irregularity, lack of compliance, lack of adherence, lacunas and problems whether actual or potential concerning the financial systems, the financial operations, the financing plans, the accounting, the audits, the budgets and any other matter of a financial nature or which could or does have a financial implication. To collaborate and coordinate the activities of outside suppliers of financial services hired or contracted by the firm, including accountants, auditors, financial consultants, underwriters and brokers, the banking system and other financial venues. To maintain a working relationship and to develop additional relationships with banks, financial institutions and capital markets with the aim of securing the funds necessary for the operations of the firm, the attainment of its development plans and its investments. To fully computerize all the above activities in a combined hardware-software and communications system which will integrate into the systems of other members of the group of companies. Otherwise, to initiate and engage in all manner of activities, whether financial or of other nature, conducive to the financial health, the growth prospects and the fulfillment of investment plans of the firm to the best of his ability and with the appropriate dedication of the time and efforts required.

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Collection and Credit Assessment 1. To construct and implement credit risk assessment tools, questionnaires, quantitative methods, data gathering methods and venues in order to properly evaluate and predict the credit risk rating of a client, distributor, or supplier. To constantly monitor and analyse the payment morale, regularity, non-payment and non-performance events, etc. in order to determine the changes in the credit risk rating of said factors. To analyse receivables and collectibles on a regular and timely basis. To improve the collection methods in order to reduce the amounts of arrears and overdue payments, or the average period of such arrears and overdue payments. To collaborate with legal institutions, law enforcement agencies and private collection firms in assuring the timely flow and payment of all due payments, arrears and overdue payments and other collectibles.

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Student Name: S. Venugopal, Roll No. 520917287, MBA 4th Semester, Subject Code MB0036 Strategic Management and Business policy - 3 credits Assignment Set 1 ( 60Marks)
6. To coordinate an educational campaign to ensure the voluntary collaboration of the clients, distributors and other debtors in the timely and orderly payment of their dues.

The strategic investor is, usually, put in charge of the following: Project Planning and Project Management: The strategic investor is uniquely positioned to plan the technical side of the project and to implement it. He is, therefore, put in charge of: 1. 2. 3. 4. 5. 6. 7. The selection of infrastructure, equipment, raw materials, industrial processes, etc.; Negotiations and agreements with providers and suppliers; Minimizing the costs of infrastructure by deploying proprietary components and planning; The provision of corporate guarantees and letters of comfort to suppliers; The planning and erecting of the various sites, structures, buildings, premises, factories, etc.; The planning and implementation of line connections, computer network connections, protocols, solving issues of compatibility (hardware and software, etc.); Project planning, implementation and supervision.

Marketing and Sales: The presentation to the Board an annual plan of sales and marketing including: market penetration targets, profiles of potential social and economic categories of clients, sales promotion methods, advertising campaigns, image, public relations and other media campaigns. The strategic investor also implements these plans or supervises their implementation. 2. The strategic investor is usually possessed of a brandname recognized in many countries. It is the market leaders in certain territories. It has been providing goods and services to users for a long period of time, reliably. This is an important asset, which, if properly used, can attract users. The enhancement of the brandname, its recognition and market awareness, market penetration, co-branding, collaboration with other suppliers are all the responsibilities of the strategic investor. The dissemination of the product as a preferred choice among vendors, distributors, individual users and businesses in the territory. Special events, sponsorships, collaboration with businesses. The planning and implementation of incentive systems (e.g., points, vouchers). The strategic investor usually organizes a distribution and dealership network, a franchising network, or a sales network (retail chains) including: training, pricing, pecuniary and quality supervision, network control, inventory and accounting controls, advertising, local marketing and sales promotion and other network management functions. The strategic investor is also in charge of "vision thinking": new methods of operation, new marketing ploys, new market niches, predicting the future trends and market needs, market analyses and research, etc.

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The strategic investor typically brings to the firm valuable experience in marketing and sales. It has numerous off the shelf marketing plans and drawer sales promotion campaigns. It developed software and personnel capable of analysing any market into effective niches and of creating the right media (image and PR), advertising and sales promotion drives best suited for it. It has built large databases with multi-year profiles of the purchasing patterns and demographic data related to thousands of clients in many countries. It owns libraries of material, images, sounds, paper clippings, articles, PR and image materials, and proprietary trademarks and brand names. Above all, it accumulated years of marketing and sales promotion ideas which crystallized into a new conception of the business. Technology: The planning and implementation of new technological systems up to their fully operational phase. The strategic partner's engineers are available to plan, implement and supervise all the stages of the technological side of the business. 2. The planning and implementation of a fully operative computer system (hardware, software, communication, intranet) to deal with all the aspects of the structure and the operation of the firm. The strategic investor puts at the disposal of the firm proprietary software developed by it and specifically tailored to the needs of companies operating in the firm's market. The encouragement of the development of in-house, proprietary, technological solutions to the needs of the firm, its clients and suppliers. The planning and the execution of an integration program with new technologies in the field, in collaboration with other suppliers or market technological leaders.

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Education and Training: The strategic investor is responsible to train all the personnel in the firm: operators, customer services, distributors, vendors, sales personnel. The training is conducted at its sole expense and includes tours of its facilities abroad.

Student Name: S. Venugopal, Roll No. 520917287, MBA 4th Semester, Subject Code MB0036 Strategic Management and Business policy - 3 credits Assignment Set 1 ( 60Marks)
The entrepreneurs who sought to introduce the two types of investors, in the first place are usually left with the following functions: Administration and Control 1. To structure the firm in an optimal manner, most conducive to the conduct of its business and to present the new structure for the Board's approval within 30 days from the date of the GM's appointment. To run the day to day business of the firm. To oversee the personnel of the firm and to resolve all the personnel issues. To secure the unobstructed flow of relevant information and the protection of confidential organization. To represent the firm in its contacts, representations and negotiations with other firms, authorities, or persons.

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This is why entrepreneurs find it very hard to cohabitate with investors of any kind. Entrepreneurs are excellent at identifying the needs of the market and at introducing technological or service solutions to satisfy such needs. But the very personality traits which qualify them to become entrepreneurs also hinder the future development of their firms. Only the introduction of outside investors can resolve the dilemma. Outside investors are not emotionally involved. They may be less visionary but also more experienced. They are more interested in business results than in dreams. And being well acquainted with entrepreneurs they insist on having unmitigated control of the business, for fear of losing all their money. These things antagonize the entrepreneurs. They feel that they are losing their creation to cold-hearted, mean spirited, corporate predators. They rebel and prefer to remain small or even to close shop than to give up their cherished freedoms. This is where nine out of ten entrepreneurs fail - in knowing when to let go. Q. 5 Give a note on enforcement of intellectual property rights. Ans:- Enforcement of Intellectual Property Rights : Intellectual property rights are of limited value unless they are effectively enforced. Without enforcement, there are no real deterrents for infringers or remedies for those whose rights are infringed. The legal authorities do have some role in enforcing intellectual property rights, but this is often limited, and for infringement of rights such as patents, plant breeders rights and trade secrets, you would normally have to take action yourself to take the infringing party to court. The same practical commercial considerations that apply to obtaining and managing IP rights also apply to enforcement in some cases, the possibility of taking court action could act to encourage the infringing party to take out a licence to use your technology. This would save you the expense and the uncertainty of a protracted court case, and could provide you with a good financial return. The procedures for enforcement of IP rights differ widely between countries, because they have much more to do with the general legal system than other aspects of IP rights, such as examination and grant of rights by a patent office. The TRIPS Agreement has established some general principles for IP enforcement which are reflected in the laws of many countries, so this discussion will focus on the TRIPS provisions to give an overall picture of how enforcement operates. One basic distinction in enforcement lies between more those IP infringements which tend to be infringed widely, potentially by many different people and on a large commercial scale, and general IP rights. In the first category are pirated copyright works and counterfeit trade mark goods. TRIPS, for instance, specifies that the government or legal authorities need to have a more active role in dealing with these infringements than, say, for patents and plant breeders rights. So the state often has an active role in tracking down and prosecuting those who infringe copyright and trademark rights on a commercial scale, whereas for patents it is normally up to the patent holder or licensee to take an infringer to court. Enforcement Measures Required by TRIPS: The TRIPS Agreement differs from earlier international intellectual property treaties in several ways; this includes having specific provisions for effective enforcement of IP rights in national laws. The main enforcement provisions in TRIPS include: The general obligations under the TRIPS Agreement, which relate to the provision of fair enforcement procedures Civil remedies, including injunctions, damages and provisional measures. Criminal procedures, which are compulsory for intentional trade mark and copyright piracy on a commercial scale and optional for other kinds of intellectual property, such as patents. Special border enforcement measures to stop counterfeit trade mark and pirated copyright material coming into a country, border enforcement measures are optional for other kinds of intellectual property, such as patents.

General Enforcement Obligations under Trips : The TRIPS Agreement provides for a range of general obligations in relation to the enforcement of intellectual property rights. The purpose of these obligations is to ensure that the enforcement measures are effective, and that certain basic principles of due process are met, so that enforcement is fair and balanced, and does not impede legitimate trade.

Student Name: S. Venugopal, Roll No. 520917287, MBA 4th Semester, Subject Code MB0036 Strategic Management and Business policy - 3 credits Assignment Set 1 ( 60Marks)
Remedies must be timely and deter further infringements TRIPS requires that enforcement procedures permit effective action against any infringement of intellectual property rights, and that the remedies available are expeditious in order to prevent infringements. A legal system that enables timely initiation and execution of legal processes is particularly important for effective enforcement of intellectual property rights because the information that intellectual property protects is often easy to copy and spread quickly. The remedies available must also be severe enough to deter further infringements. These procedures must be applied in a way that avoids the creation of barriers to legitimate trade and to provide for safeguards against their abuse. Enforcement procedures must be fair: TRIPS provides that enforcement procedures must be fair and equitable, and may not be unnecessarily complicated or costly, or entail unreasonable time-limits or delays. Decisions in enforcement cases must be based on the merits of a case. Decisions should preferably be in writing and reasoned, and be made available to the parties without undue delay. Decisions on the merits of a case must be based only on evidence in respect of which the parties were offered the opportunity to be heard. Parties to a proceeding must have an avenue of appeal, unless the case was criminal in nature and the accused was acquitted. TRIPS does not require a special judicial system for the enforcement of intellectual property rights distinct from the normal court system. Finally, TRIPS creates no obligations with respect to the distribution of resources as between enforcement of intellectual property rights and the enforcement of law in general. Example enforcing a patented invention for making house paint: For example, imagine that you own a patent for house paint that dries very quickly. It took you 8 years to develop the process and cost you thousands of dollars to patent your invention in Australia, the US and Indonesia. Just as you started to distribute the paint yourself in Australia you found out that your paint is being sold cheaply to the painting trade in Sydney by a company trading as Cheap Paints. You also suspect that Cheap Paints are exporting tins of infringing paint overseas. Obviously you need to take legal action against Cheap Paints to enforce your rights, otherwise, there would be no market left for you to get any financial return on your invention. The kinds of remedies you could take against Cheap Paints are set out in this unit. Q. 6 Give a note on complex systems behaviour and creativity. Ans:- Complex Systems Behaviour: In studying Complex Systems, initially in physics and chemistry, it became clear that the key properties of open systems, where flows of matter, energy and information can occur across their boundaries, were that they could undergo spontaneous transformations of structure and functionality. Instead of a fixed mechanical system, this showed how systems came into being, and evolved over time, changing structurally, gaining, and sometimes shedding, complexity and qualities. The study of Complex Systems therefore revealed a co-evolutionary process of a system and its environment in which successive change and adaptation each involved two separate steps: Discovering what to do (exploration and evaluation). Doing what has been decided (implementation).

And these two steps are radically different in nature. In Complex Systems, the first step is taken by the non-average underlying elements within the system, while the second the emergence of a transformed, functioning system concerns new, effective average behaviour of the elements. The successful co-evolution of a system with its environment therefore occurs through the dynamic interplay of the average and non-average behaviours within it. Successive instabilities occur each time that existing structure and organisation fail to withstand the impact of some new circumstance or behaviour. When this occurs, the system re-structures and becomes a different system, subjected in its turn to the disturbances from its own non-average individuals and situations. It is this dialogue between successive systems and their own inner richness that provides the capacity for continuous adaptation and change. Creativity Everyone in business is creative. Some of most creative people are in manufacturing. They actually CREATE products that change the world. Some of the least creative people perhaps are in advertising. They spend most of their creative energy telling manufacturers that theyarent creative! Salespeople Are Creative They are natural born story-tellers, Accountants are creative,

Student Name: S. Venugopal, Roll No. 520917287, MBA 4th Semester, Subject Code MB0036 Strategic Management and Business policy - 3 credits Assignment Set 1 ( 60Marks)
A Simple Creative Exercise Simplify everything. Your life, your home, your office, your desk, your processes, vision, policy, procedures. Everything. Fixing Problems is Creative. Your job is to fix problems, not to complain. Brainstorming Dont tell people that their ideas are bad, especially if you dont have a better one. Its only your lifes work. Never say, Its not my job to be creative. How to Lose an Audience Show your audience slides with columns of numbers. Refuse to tell them a story about the meaning of the numbers. Do not read your speech or presentation. Instead, read your audience.

How about a Show? Try giving a performance instead of merely giving a presentation. Everyone in Sales Knows Tell stories. Dont just provide data. Avoid Meetings. Do not attend more than two meetings a day, or else you will never get any real creative work done. Get Fresh Ideas. Leave the office building at least once a day. Another Lame Excuse Designers should put more of their passion into designing great work, instead of endless (boring) discussions about the superiority of the Macintosh over the PC! Creativity: Use it or Lose it. Create something every day. Creativity takes place every day, not once in a while. Its not rare. Its just been mystified Own your creativity.