Return to Previous Page

Visible and Invisible Hands at ‘Colors of India’ Fest

CASELET, MANAGERIAL ECONOMICS
ET Cases, 8 pages

Case Preview

Visible and Invisible Hands at ‘Colors of India’ Fest

 

On November 21st 2014, the Bangalore School of Management (BSM) – one of the premier Indian B-schools – wore a festive look as the staff and the students excitedly waited for ‘Colors of India’– BSM’s 3-day annual cultural fest – to get started. The festival was inaugurated with the lighting of the lamp by the Chief Guest, Sebastian Kurien (Sebastian), a celebrated social entrepreneur and the Dean, Dr. Lalitha Subramony (Dr. Lalitha). The audience at the 3-day cultural fest included students not just from BSM but also from other multi-disciplinary colleges from across the country. The highlight of the cultural fest was BSM’s initiative to support women entrepreneurs from small scale and cottage industries by inviting them to showcase their products and sell their merchandise at BSM’s stalls. Ironically, the initiative did not kick-off well and the entrepreneurs made very poor sales on the first day. What would be the impact of a day of poor business for the entrepreneurs?....................

Teaching Note Preview

Visible and Invisible Hands at ‘Colors of India’ Fest

 

Synopsis

This caselet introduces an important economic concept of ‘circular flow of economy’ through the developments at ‘Colors of India’ – the college fest at Bangalore School of Management (BSM). The theme of ‘Colors of India – 2014’ was women social entrepreneurs who were invited to put their stalls at BSM at subsidized rates. However, at the end of day-1 of the cultural fest, the women social entrepreneurs were quite disappointed as none of them could earn good revenues from the event. The women became hopeful when the faculty and the student coordinators reassured them of good business in the ensuing two days. However, why was it so important for the women social entrepreneurs to do good business at the college fest? How would it impact the associated consumers and other businesses? In answering these questions, the caselet helps understand the constituents of the circular flow of economy, the factors affecting it and its significance. It also throws some light on the concepts of visible and invisible hands.

Prerequisite Conceptual Understanding

  • • Paul A. Samuelson, et al., “The Modern Mixed Economy”, Economics, 19th Edition, McGraw Hill Education (India) Private Limited, 2010 – To have an understanding on the functioning of a modern mixed economy

 

Mandatory Viewing

  • • Axis Bank, “Axis Bank – Badhti ka naam zindagi... 2013”, https://www.youtube.com/watch?v=c25Qv7Ez8nU, (accessed date: August 6th 2015) – To visually understand the circular flow of economy

 

Before the Classroom Discussion

  • • Adam Smith, The Wealth of Nations, Thrifty Books, October 27th 2009 – It was suggested that students should refer to the book by Adam Smith, who is  considered as the ‘Father of Modern Economics’, not so much to read the entire book but to lay their hands on this magnum opus – the faculty can refer to pages xvi, xxiii and 572, where the concept of invisible hand was propounded.

 

Case Positioning and Setting

This caselet can be used for:

  • • MBA Program in Managerial Economics course – To understand the concept of circular flow of economy, its constituents and the various factors that affect it
  • • International Business Module – To understand the concept of circular flow of economy amidst globalization

 

Assignment Questions

  • I. Given the predicament of women entrepreneurs at the end of ‘day-1’ of the cultural fest at BSM, discuss the significance and operation of circular flow of a modern mixed economy.
  • II. Explain the working of Adam Smith’s doctrine of ‘the invisible hand’ in the case of women entrepreneurs at the culture fest at BSM.
  • III. .....................

 

Suggested Reading for the Faculty

  • • Michael G. Rukstad, “Economics: An Introduction and Vocabulary”, Harvard Business School, June 18th 1993

 

Preamble to this Caselet Analysis

This caselet introduces some of the central economic concepts – circular flow of economy, invisible hand, role of trade, globalization and money –  specialization and division of labor – to the participants through the cultural fest at BSM. While the caselet facts recount the first day’s happenings, a careful analysis of these would help connect the dots between case facts and some of the central economic concepts mentioned above. Accordingly, this caselet was orchestrated in the following way [Exhibit (TN)-I]...................

$3.66
Rs 0
Product code: ME-2-0009, ME-2-0009A

Abstract


This caselet introduces the participants/students to the concept of circular flow of an economy. Set in the backdrop of the Bangalore School of Management's (BSM) cultural fest - 'Colors of India' - this caselet helps understand the factors that propel a smooth operation of circular flow. When several women social entrepreneurs assembled at BSM's cultural fest, 'Colors of India' their sales expectations were quite high. However, the first day's sales seem to have dampened their spirits and the organizers were in a spin to convince the women social entrepreneurs to be positive. While the event is a microcosm of how an economy's circular flow operates, there are several visible and invisible hands that keep the circular flow at a constant motion. What are those visible and invisible hands? How can a college fest be a microcosm of a circular flow of an economy?



Pedagogical Objectives

  • To understand the concept of circular flow of economy and how the constituents of the system - factor markets, product markets, consumers and companies - interact to fuel an economy's continuous movement
  • To have an overview of how Adam Smith's 'invisible hand' and Alfred Chandler's 'visible hand' facilitate a seamless functioning of an economy through its circular flow
  • To examine the factors that propel the operation of an effective circular flow in an economy

Case Positioning and Case Setting

This caselet can be used for:

  • MBA Program in Managerial Economics course - To understand the concept of circular flow of economy, its constituents and the various factors that affect it
  • International Business Module - To understand the concept of circular flow of economy amidst globalization




This Case Pack Includes:
 - Abstract
- Caselet
- Teaching Note (**ONLY for Academicians)
$3.66
Rs 0

Related products




Request for an Inspection Copy

(Strictly for Review Purpose, Not to be Used for Classroom Discussion/Trainings)