IIBM CASE STUDY SOLUTIONS & MULTIPLE ANSWERS.docx

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IIBM CASE STUDY SOLUTIONS & MULTIPLE ANSWERS.docx

CASE STUDY ANSWERS
ASSIGNMENT SOLUTIONS
PROJECT REPORTS AND THESIS
ISBM / IIBMS / IIBM / ISMS / KSBM /
NIPM
SMU / SYMBIOSIS / XAVIER / NIRM /
PSBM / NSBM / ISM / IGNOU / IICT /
ISBS / LPU / ISM&RC / IC MIND /
UPES / NMIMS / HIMALAYAN
MBA - EMBA - BMS - GDM - MIS - MIB
DMS - DBM - PGDM - DBM - DBA
www.mbacasest!"a#swe$s.c%m
www.casest!"s%&t'%#.'#
www.casest!"a#swe$s.'#
www.(est'%#a#swe$s.'#
www.%#&'#e)$%*ect$e)%$t.c%m
a$a+'#!.ba#a,a$-.ma'&.c%m
SUBJECTS
A B C
ACCOUNTING
MANAGEMENT
AUDIT MANAGEMENT
ADVERTISING
ADVERTISING
MANAGEMENT
AUTOMOBILE MANAGEMENT
ASSET MANAGEMENT
AVIATION MANAGEMENT
AGRICULTURE
MANAGEMENT
ARCHITECTURAL
MANAGEMENT
AIR TRANSPORT
MANAGEMENT
BANKING MANAGEMENT
BPO MANAGEMENT
BANKING & FINANCIAL SERVICES
MANAGEMENT
BUSINESS MARKETING
BUSINESS ETHICS
BUSINESS COMMUNICATION
BUSINESS LOGISTICS
BIO TECHNOLOGY MANAGEMENT
BUSINESS ADMINISTRATION
BUSINESS MANAGEMENT
BUSINESS ENVIRONMENT
BUSINESS PLANNING
BUSINESS STRATEGY
BOI-TECHNOLOGY MANAGEMENT
CORPORATE LAW
CONSUMER BEHAVIOR
CORPORATE FINANCE
COST MANAGEMENT & ACCOUNTANCY
CORPORATE & FINANCE MANAGEMENT
CORPORATE GOVERANCE
COMMUNICATION MANAGEMENT
CLINICAL PHARMACOLGY
CLINICAL RESEARCH
CUSTOMER RELATIONSHIP
MANAGEMENT
CONSTRUCTION MANAGEMENT
CUSTOMER CARE MANAGEMENT
CALL CENTRE MANAGEMENT
CO – OPERATIVE MANAGEMENT
CONSUMER MANAGEMENT
CORPORATE FINANCE MANAGEMENT
CHARTERED FINANCE MANAGEMENT
D E F
DAIRY MANAGEMENT
DISTRIBUTION LOGISTIC
MANAGEMENT
DATABASE MANAGEMENT
DEVELOPMENT STRATEGY
E-BUSINESS SYSTEM
E-COMMERCE
ENERGY MANAGEMENT
EQUITY RESEARCH MANAGEMENT
ENTREPRENEUR MANAGEMENT
EVENT MANAGEMENT
ENTREPRENEURSHIP
MANAGEMENT
EXPORT IMPORT MANAGEMENT
EXPORT MANAGEMENT
FINANCE
FINACE MANAGEMENT
FINACIAL & COST ACCOUNTING
FINANCIAL ACCOUNTANCY
FINANCIAL INSTITUTIONS
FASHION MANAGEMENT
FOREIGN EXCHANGE MANAGEMENT
G H I
GENERAL MANAGEMENT
GLOBAL MARKETING
MANAGEMENT
H R MANAGEMENT
HUMAN RESOURCE
MANAGEMENT
HOSPITAL MANAGEMENT
HEALTHCARE MANAGEMENT
HOSPITALITY MANAGEMENT
HOTEL MANAGEMENT
HOLISTIC MANAGEMENT
HOSPITAL ADMINISTRATION
HARDWARE MANAGEMENT
INTERNATIONAL FINACE
INTERNATIONAL FINACE MANAGEMENT
INTERNATIONAL HR MANAGEMENT
INTERNATIONAL BUSINESS
INFORMATION TECHNOLOGY
INDUSTRIAL MANAGEMENT
INVESTMENT MANAGEMENT
INVESTMENT ANALYSIS MANAGEMENT
INDUSTRIAL MARKETING
INDUSTRIAL RELATIONS
INFORMATION MANAGEMENT
INDUSTRIAL SAFETY MANAGEMENT
INTERNATIONAL BUSINESS
MANAGEMENT
INVENTORY MANAGEMENT
INDUSTRIAL RELATION LABOUR LAW
IT FOR MANAGEMENT
INFRASTRUCTURE MANAGEMENT
INTELLECTUAL PROPERTY RIGHTS
INTERIOR MANAGEMENT
L M N
LOGISTICS
LOGISTIC MANAGEMENT
LOGISTIC ENGINEERING
MARKETING
MARKETING MANAGEMENT
MASS COMMUNICATION
MEDIA MANAGEMENT
MUTUAL FUND MANAGEMENT
MARKET RISK MANAGEMENT
MARKETING FINANCE
MANAGEMENT
MATERIAL MANAGEMENT
MANAGEMENT INFORMATION
SYSTEM
MANAGEMENT OF SALES FORCE
MANAGERIAL ECONOMICS
MANUFACTURING PLANNING &
CONTROL
MASS COMMUNICATION
MANAGEMENT
MERGERS & ACQUISITIONS
MARKET RISK MANAGEMENT
NETWORKING
NETWORK MANAGEMENT
NETWORKING MANAGEMENT
O P Q
OPERAIONS
OPERATIONS MANAGEMENT
ORGANIZATION BEHAVIOR
OPERATING SYSTEM
OPERATION RESEARCH
PRINCIPLE & PRACTICE OF
MANAGEMENT
PERSONNEL MANAGEMENT
PROJECT MANAGEMENT
PRODUCTION & OPERTION
MANAGEMENT
PROFFESSIONAL
COMMUNICATION
PURCHASING MANAGEMENT
PETROLEUM MANAGEMENT
PORTPOLIO MANAGEMENT
PHARMACOLOGY MANAGEMENT
PUBLIC RELATIONSHIP
MANAGEMENT
PUBLIC ADMINISTRATION
QUANTITATIVE METODS
QUATITATIVE TECHNIQUES IN
MANAGEMENT
QUANTITATIVE MANAGEMENT
R S T
RESEARCH METHODOLOGY
RETAIL MANAGEMENT
RISK & SAFETY
MANAGEMENT
RISK & INSURANCE
MANAGEMENT
RURAL MANAGEMENT
SALES & DISTRIBUTION
MANAGEMENT
SIX SIGMA MANAGEMENT
SIX SIGMA GREEN BELT
MANAGEMENT
SIX SIGMA BLACK BELT
MANAGEMENT
STATICAL QUALITY CONTROL
SUPPLY CHAIN MANAGEMENT
STORE MANAGEMENT
SOFTWARE PROJECT
MANAGEMENT
SHIPPING MANAGEMENT
TELECOM MANAGEMENT
TOTAL QUALITY MANAGEMENT
TREASURY MANAGEMENT
TOTAL SUPPLY MANAGEMENT
TRAVEL & TOURISM
TRAINING & DEVELOPING
TAKE OVER AQUISATION
TAXATION MANAGEMENT
TEXTILE MANAGEMENT
SOFTWARE MANAGEMENT
SAP CONSUTANCY MANAGEMENT
SALES MANAGEMENT
Business Communication
Multiple choice:
1. __________is an essential function of Business Organizations:
a. Information
b. Communication
c. Power
d. None of the above
. Ph!siological Barriers of listening are:
a. "earing im#airment
b. Ph!sical conditions
c. Pre$udices
d. %ll of the above
&. 'hich #resentation tend to ma(e !ou s#ea( more )uic(l! than usual:
a. *lectronic
b. Oral
c. Both +a? and +b?
d. None of the above
,. 'hat is the main function of Business Communication:
a. -incerit!
b. Positive language
c. Persuasion
d. *thical standard
.. /he res#onsibilities of the office manager in a firm that #roduces electronics s#ares is:
a. *ver!thing in the office runs efficientl!
b. 0urniture and other e)ui#ment in the office is ade)uate
c. Processing all the incoming official mail and res#onding to some
d. %ll of the above
1. 2abov?s -tor!telling 3odel based on:
a. Communication through s#eech
b. 2anguage learning
c. 4rou# 5iscussions
d. None of the above
6. 5iagonal Communication is basicall! the:
a. Communication across boundaries
b. Communication between the C*O and the managers
c. Communication through bod! language
d. Communication within a de#artment
7. "ow to ma(e Oral Communication *ffective8
a. B! Clarit!
b. B! Brevit!
c. B! 9ight words
d. %ll of the above
:. 5irect *!e contact of more than 1; seconds can create:
a. 5iscomfort < %n=iet!
b. *motional relationshi# between listeners and s#ea(ers
c. *=citement
d. None of the above
1;. *ncoding means:
a. /ransmission
b. Perce#tion
c. Ideation
d. None of the above
Part Two:
1. 5efine 6C?s of effective communication.
. *=#lain +-#ace 2anguage?.
&. 5ifferentiate between good listeners and bad listeners.
,. 2ist the different t!#es of business re#ort.
.. 5efine +>inesics?.
Business Communication
Caselet 1
3r. and 3rs. -harma went to 'oodlands %##arel to bu! a shirt. 3r. -harma did not read the
#rice tag on the #iece selected b! him. %t the counter? while ma(ing the #a!ment he as(ed for
the #rice. 9s. :.; was the answer.
3eanwhile? 3rs. -harma? who was still sho##ing came bac( and $oined her husband. -he was
glad that he had selected a nice blac( shirt for himself. -he #ointed out that there was a .@
discount on that item. /he counter #erson nodded in agreement.
3r. -harma was thrilled to hear that AIt means the #rice of this shirt is $ust 9s. 61. /hat?s
fantasticB? said 3r. -harma.
"e decided to bu! one more shirt in blue color.
In no time? he returned with the second shirt and as(ed them to be #ac(ed. 'hen he received the
cash memo for #a!ment? he was astonished to find that he had to #a! 9s. 1?:;; and 9s. 1?,,.
3r. -harma could hardl! reconcile himself to the fact that the counter #erson had )uoted the
discounted #rice which was 9s. :.;. /he original #rice #rinted on the #rice tag was 9s. 1?11.
Questions
1. 'hat should 3r. -harma have done to avoid the misunderstanding8
. 5iscuss the main features involved in this case.
Caselet 2
I don?t want to s#ea( to !ou. Connect me to !our boss in the C-?B hissed the %merican on the
#hone. /he !oung girl at a Bangalore call centre tried to be as #olite as she could. %t another call
centre? another da!? another !oung girl had a 2ondoner unleashing himself on her? ADoung lad!?
do !ou (now that because of !ou Indians we are losing $obs8B
/he outsourcing bac(lash is getting ugl!. "andling irate callers is the new brief for the !oung
men and women ta(ing calls at these outsourced $ob centres. -u#ervisors tell them to be +cool?.
%vinash Eashistha? managing #artner of N*OI/? a leading C-Fbased consultanc! firm sa!s?
ACom#anies involved in outsourcing both in the C- and India are alread! getting a lot of hate
mail against outsourcing and it is hardl! sur#rising that some #eo#le should behave li(e this on
the tele#hone.B Eashistha sa!s Indian call centre?s should train their o#erators how to handle
such calls. Indeed? the furor raised b! the 'estern media over $ob losses because of outsourcing
*=amination Pa#er of Business Communication
has made ordinar! citizens there sensitive to the fact that their calls are being ta(en not from
their midst? but in countries such as India and the Phili##ines.
/he angr! outbursts the o#erators face border on the racist and se=ist? sa!s the manager of a call
centre in "!derabad. But o#erators and senior e=ecutives of call centres refuse to go on record
for fear of (ic(ing u# a controvers! that might result in their com#anies? losing clients overseas.
AIt?s ha##ening often enough and so let?s face it?B sa!s a senior e=ecutive of a 4urgaon call
centre? adding? A/his doesn?t have an! im#act on business.B
Questions
1. -u##ose !ou are wor(ing as an o#erator in a call centre in India and receiving calls
from %mericans and 2ondoners. "ow would !ou handle such calls8
. 5o !ou agree with the view such abusive ha##enings on the tele#hone do not have an! im#act on
business8
1. 'hat do !ou b! Communication Barriers8 "ow and wh! do the! occur8 'hat can be done to overcome
the Barriers to Communication8
. 5efine and e=#lain the term Negotiation and also briefl! e=#lain the #hases of Negotiation.
Corporate Governance Proessional
1. Cor#orate 4overnance isF
aG %bout ethical conduct in business
bG 5irect or indirect concerns in the organization
cG % manufacturing s!stem
dG None of the above
. /he term cor#orate governance is derived from theF
aG 4ree( word
bG *nglish word
cG 0rench word
dG 2atin word
&. /he definition ACor#orate 4overnance is the s!stem b! which business directed and controlledB is given
b!F
aG -*BI committee
bG O*C5 committee
cG Cadbur! committee
dG %ll of the above
,. Internal control is im#lemented b! theF
aG Board of directors
bG %udit committee
cG 3anagement
dG %ll of the above
.. O*C5 stands for__________________
1. 'hich of the following have the #ower to hire fire and com#ensate the to# management8
aG Board of directors
bG %udit committee
cG -hareholders
dG 3anagement
6. CII stands for ____________________
7. /he managers are e=#ected to act in the interest ofF
aG %udit committee
bG -ta(eholders
cG *m#lo!ees
dG Customers
:. /o endorse the organization strateg!? develo# directional #olic!? a##oint? su#ervise and remunerate senior
e=ecutives and to ensure accountabilit! of the organization to its owners and authorities is the res#onsibilit!
of
aG C*O
bG 3anager
cG /o# management
dG Board of directors
1;. -*BI stands for_________________
11. /he role of cor#orate governance isF
aG /o ensure the efficient use of resources
bG It increases the shareholders value
cG 9educe the #rocurement and inventor! cost
dG %ll of the above
1. 'hich of the following is not the issue of cor#orate governance8
aG Internal control
bG Com#ensation of C*O and other directors
cG 3anagement of ris(
dG 9ights of cor#oration
1&. /he annual re#ort should not includeF
aG "ow decision are ta(en b! the board
bG /he name of the chairman? C*O and other directors
cG %bilit! to hire management
dG /he number of meeting
1,. _____________________ is e)ual to the mar(et #rice of his holding in shares.
aG -ta(eholders wealth
bG *thical conduct
cG -hareholderHs wealth
Corporate Governance Proessional
1.. /he (e! element of good cor#orate governance #rinci#le includeF
aG "onest!
bG 3utual res#ect
cG Performance orientation
dG %ll of the above
11. -OI stands for_____________________
16. /he commonl! acce#ted #rinci#le of cor#orate governance areF
aG Protection of shareholders right
bG 9ole and res#onsibilities of board
cG Interest of other sta(eholders
dG %ll of the above
17. CII develo#ed code of cor#orate governance in_____________________
aG 1::6
bG 1::1
cG 1::,
dG 1767
1:. /he #ro#ert! right is views sim#l! as ____________________
aG Planning right
bG Control right
cG Both a<b
dG None
;. In which t!#e of model the su#ervisor! board is elected b! shareholders and labor unions
aG Ja#anese model
bG %nglo %merican model
cG 4erman model
dG /he Indian #ers#ective
1. 'hich of the following come under the five #rinci#les of ethical #ower for organization8
aG Pur#ose
bG Pride
cG Patience
dG %ll of the above
. 'hich of the following are the theories of cor#orate governance8
aG -hareholders theor! vs. sta(eholders theor!
bG -tewardshi# theor!
cG Pro#ert! right theor!
dG %ll of the above
Corporate Governance Proessional
&. /he stewardshi# theor! isF
aG Control oriented
bG Involvement oriented
cG Both a<b
dG None of these
,. ____________________ include government nominees and re#resentatives of financial institutions
aG Board of directors
bG Creditors? su##liers
cG Nominee directors
dG Chief e=ecutive officer
.. /he ____________________ oversees internal control and disclosure controls and #rocedures for
financial re#orting.
aG Nominating committee
bG %udit committee
cG Board committee
dG "iggs committee
1. 35%9 stands for_______________
6. 2iaison committee designed to ma(e a lin( between two grou#s or committees.
aG /rue
bG 0alse
7. Cadbur! committee established in______________
aG 1:::
bG 1::.
cG 1::
dG ;;
:. "ow man! recommendation is made b! CII codeF
aG 16
bG 17
cG 11
dG 1:
&;. >umar mangalam committee is a##ointed b! theF
aG CII
bG -*BI
cG 4overnment
dG None
&1. /he remuneration of the nonFe=ecutive directors should be decided b! theF
Corporate Governance Proessional
aG Board of directors
bG /o# management
cG -ta(eholders
dG *ntire board
&. 'hich of the following committee was a##ointed b! the -*BI to ma(e recommendations on the
re#resentation of inde#endent directors on com#an! board and the com#osition of audit committee
aG Cadbur! committee
bG >umar mangalam committee
cG Naresh Chandra committee
dG Board committee
&&. Basic shareholders rights include the right toF
aG -ecure methods of ownershi#
bG Conve! or transfer shares
cG Partici#ate and vote in general shareholder meetings
dG %ll of the above
&,. 'hich of the following is use to ensure that the ta(eover bids are serious8
aG 5isclosure
bG /rigger
cG *scrow
dG Cree#ing ac)uisition
&.. 'hich of the following are the natures of com#laints b! shareholders8
aG Non recei#t of dividend
bG Change of address
cG /ransmission of shares
dG %ll of the above
&1. /he word AtransmissionB meansF
aG /ransfer b! o#eration of law
bG /ransfer b! o#eration
cG Both a<b
dG None of the above
&6. Com#etition? debt covenants? ta(eover and media #ressure are theF
aG Internal cor#orate governance controls
bG *=ternal cor#orate governance control
cG Both a<b
dG None
&7. -im#le directors who attends board meeting of a com#an! and #artici#ate of a com#an! and #artici#ate
in the matters before the board isF
Corporate Governance Proessional
aG Ordinar! directors
bG 3anaging directors
cG *=ecutive directors
dG -hadow directors
&:. /he director who #erform a s#ecific role in a com#an! under a service contract which re)uires a regular?
#ossibl! dail!? involvement in management is (nown asF
aG NonFe=ecutive director
bG %dditional director
cG *=ecutive director
dG Ordinar! director
,;. 'hich of the following is the dut! of directors8
aG -tatutor! duties
bG 5uties of general nature
cG Both a<b
dG None
,1. 'hich of the following are the not the general dut! of directors8
aG 5ut! of good faith
bG 5ut! of care
cG 5ut! not to delegate
dG /o disclose interest
,. % document that s#ecifies the regulations for a com#an!Hs o#eration is (nown asF
aG 3emorandum of association
bG %rticles of association
cG Both a<b
dG None
,&. %n! #erson? com#an!? or other institution that owns at least one share in a com#an! is (nown asF
aG -ta(eholder
bG *m#lo!ees
cG -hareholder
dG Customer
,,. Nomination committee is a##ointed b! theF
aG C*O
bG Board of directors
cG 3anagement
dG %udit committee
,.. /he #rofit earned b! the com#an! with reference to the cost of ca#ital in terms of economic #rofit is
referred to asF
Corporate Governance Proessional
aG Pa!F#erformance
bG Organization b!laws
cG *conomic value added
dG None of the above
,1. 'hich of the following are the t!#es of the auditor8
aG Internal
bG *=ternal
cG 4overnment
dG %ll of the above
,6. /he auditors s#ecialize in crimes and are used b! law enforcement organization when financial
documents are involved in a crime is (nown asF
aG 0orensic auditor
bG 4overnment auditor
cG *=ternal auditor
dG Internal auditor
,7. -et of standards against which the )ualit! of audits is #erformed and ma! be $udges isF
aG 4enerall! acce#ted accounting #rinci#les
bG 4eneral acce#ted auditing standards
cG %udit
dG None
,:. % ______________ audit is a review in which an auditor anal!zes and verifies various records and
#rocesses relating to a com#an!Hs )ualit! #rograms.
aG Cost audit
bG 0orensic audit
cG Kualit! audit
dG none
.;. /he im#ortant as#ects of cost audit are:
aG Pro#ert! audit
bG *fficienc! audit
cG Both a<b
dG 4overnment audit
.1. -IC% stands for_______________
.. BI09 stands for_______________
.&. Basic #rinci#les of audit are_______________
aG Integrit!? ob$ectivit! < inde#endence
Corporate Governance Proessional
bG Confidentialit!
cG 5ocumentation
dG %ll of the above
.,. %s #er the -*BI guidelines? the audit committee shall meet at leastF
aG /wice a !ear
bG /hrice a !ear
cG Once a !ear
dG None
... _________________ o#ined that the chairman of the audit committee should be an inde#endent director.
aG Cadbur! committee
bG Board committee
cG >3 Birla committee
dG %udit committee
.1. %n audit committee should aware of technological changes? which is_________________
ris(Lcondition.
aG Internal
bG *=ternal
cG Both a<b
dG None
.6. /he committees of the board involve_________________
aG -u#ervisor! committee
bG 9is( management committee
cG -hareholdersH redressal committee
dG %ll of these
.7. NB0Cs stands for_________________
.:. C-9 stands for_________________
1;. 'hich of the following is the essential of accord of Basel II8
aG Ca#ital ade)uac!
bG 9is( based su#ervision
cG 3ar(et disclosure
dG %ll of the above
11. 'hich of the following are the ob$ectives of Basel II 8
aG /o #romote ade)uate ca#italization of ban(s
bG /o ensure better ris( management
cG /o strengthen the stabilit! of ban(ing s!stem
dG %ll of the above
Corporate Governance Proessional
1. /he gangul! committee is of the view that the draft minutes of the board meeting should be forwarded to
the directorHs within_________________ hours of meeting.
aG .1
bG 1,
cG ,7
dG &
1&. In which ethical #rinci#le of the business ethics are measured b! rightness of an act and de#end little on
the results of this act8
aG /eleological ethical s!stem
bG 5eontological ethical s!stem
cG "!brid theor!
dG Individual freedom
1,. One of the ma$or ethical issue in advertising is the use of______________
aG /rue
bG 0alse
1.. 3a$or social res#onsibilities of business involveF
aG O#timum utilization of scarce national resources
bG 9es#onsibilit! no to ma(e losses
cG Im#rove )ualit! of life
dG %ll of above
11. 4overnment is thin(ing of ma(ing it mandator! for the com#anies to s#end_________________@ of
their net #rofits on C-9.
aG
bG ,
cG 1
dG 7
16. It is the res#onsibilit! of the firm towards its________________ to avoid an! t!#e of cartel formation
that a attem#ts to rea# mono#ol! #rofits.
aG -hareholders
bG Customers
cG *m#lo!ees
dG 3anagement
17. 0our im#ortant grou# that business are shareholders? em#lo!ees? customers and_________________
aG 3anagement
bG Board of director
cG -ociet!
dG -ta(eholder
CASE STUDY ANSWERS
ASSIGNMENT SOLUTIONS
PROJECT REPORTS AND THESIS
ISBM / IIBMS / IIBM / ISMS / KSBM /
NIPM
SMU / SYMBIOSIS / XAVIER / NIRM /
PSBM / NSBM / ISM / IGNOU / IICT /
ISBS / LPU / ISM&RC
MBA - EMBA - BMS - GDM - MIS - MIB
DMS - DBM - PGDM - DBM - DBA
www.mbacasest!"a#swe$s.c%m
www.casest!"s%&t'%#.'#
www.casest!'es.c%.'#
a$a+'#!.ba#a,a$-.ma'&.c%m
1:. N4O stands for_________________
6;. *m#lo!ees should get_________________ wages
aG Clear
bG 3inimum
cG 3a=imum
dG 0air
61. Ob$ectives of environmental audit areF.
aG Eerification of legislative and regulator! com#liance
bG %ssessment of internal #olic! and #rocedural conformamance
cG *stablishment of current #ractice status
dG %ll of the above
6. 9eview of documents and records? 9eview of #olicies? interviews are comes under which stageF
aG PreFaudit stage
bG PostFaudit stage
cG %udit stage
dG None
6&. *nvironment #rotection act was #assed in________________ for the #rotection of environment.
aG 1:77
bG 1:::
cG 1:71
dG 1::;
6,. /he financial or nonFfinancial su##ort of an activit!? used #rimaril! to reach the given business goals isF
aG 3edia
bG finance
cG Both a<b
dG -#onsorshi#
6.. % #rinted re#ort giving news or information of interest to a s#ecial grou#.
aG Newsletter
bG 0ormal meeting
cG 3ailing list
dG 3edia release
61. 3edia can be used to #romote_______________ communication.
aG One wa!
bG /wo wa!
Corporate Governance Proessional
cG Both a<b
dG None
66. Businesses arrange for______________ meetings with #owerful sta(eholders.
aG Information dis#la!
bG Public forum
cG 0ormal meeting
dG Informal meeting
67. 39/P stands for_________________
6:. I95% stands for_________________
7;. It is said to be e=ist where there is a large number of #rocedures MfirmsG #roducing a same (ind of
#roduct.
aG 3ono#ol! com#etition
bG 3ono#olistic com#etition
cG Perfect com#etition
dG None
71. 'hich of the following as#ects of economic activit! is not control b! 39/P8
aG 9estrictive on bu!ingLselling
bG Cnfair trade #ractices
cG Concentration of economic #ower
dG 9estrictive trade #ractices
7. Price control is the restriction on ma=imum #rices that is established and maintained b! the government.
aG /rue
bG 0alse
7&. Public #olic! is an attem#t b! the government to address a #rivate issue.
aG /rue
bG 0alse
7,. /he -*BI was established on________________
aG 3arch 1? 1::
bG -e#tember 1,? 1::
cG %#ril 1? 1::
dG June 1.? 1::&
7.. /he seller of the securit! isF.
aG Bear
bG Bull
Corporate Governance Proessional
cG Both a<b
dG none
71. Insider trading can be defined as the sale or #urchase of securities b! #ersons who #ossess #rice
sensitive information about the com#an!.
aG /rue
bG 0alse
76. _______________ ma(es a commitment to get the underwritten issue subscribed either b! other or b!
them.
aG Ctilitarianism
bG Cnderwriters
cG Insider trading
dG None
77. /he board of -*BI consists of_______________
aG 7
bG 6
cG ,
dG 1
7:. -*BI has three functions rolled into one bod! )uasiFlegislative? )uasiF$udicial? and )uasiFe=ecutive.
aG /rue
bG 0alse
:;. -*BI is the regulator for the securities mar(et in India.
aG /rue
bG 0alse
:1. %30I stands for_________________.
:. Bu!ing a commodit! at a low #rice and instantl! selling it for a higher #rice in another mar(et is (nown
asF
aG "edging
bG -#eculating
cG %rbitrage
dG -hifting of ris(
:&. %n overFtheFcounter mar(et where bu!ers and sellers conduct foreign e=change transaction.
aG Commodit! e=change
bG 0oreign direct investment
cG 0O9*I
dG None
Corporate Governance Proessional
:,. 2icensing grant a #ermit to aloe the use of something or to allow a business activit! to ta(e #lace.
aG /rue
bG 0alse
:.. 4overnment often uses )uotas to restrict e=#ort.
aG /rue
bG 0alse
:1. Private com#anies can en$o! the right to transfer shares.
aG /rue
bG 0alse
:6. India has stoc( e=changes.
aG /rue
bG 0alse
:7. 0oreign com#anies are those? which have been incor#orated outside India and conduct business in India.
aG /rue
bG 0alse
::. Clause ,: has been #re#ared b! the 9eserve Ban( of India.
aG /rue
bG 0alse
1;;. Cor#orate 4overnance ensures eas! access to ca#ital.
aG /rue
bG 0alse
D!"#$%"&' & L&(!")! M*'*(+,+'"
P*#" O'+-
M%."/.+ C0&)+!-
1. It deaís wíth the movement of ñníshed goods from the íast poínt of productíon to
the poínt of consumptíon.
a. Marketíng Channeí Management
b. Logístícs Management
c. Boundaríes
d. Reíatíonshíps
2. Whích conñíct ís one of the ma|or bottíeneck ín the deveíopment & maíntenance of
partneríng channeí reíatíonshíp
a. Channeí conñíct
b. Management conñíct
c. Logístícs conñíct
d. Dístríbutíon conñíct
3. The phase of externaííy íntegrated busíness functíon era (1990s onwards) ís
recognízed as the era of
a. Logístícs Management
b. Human Resource Management
c. Fínancíaí Management
d. Suppíy Chaín Management
4. ___________ may be conducted from tíme-to-tíme or at íeast once ín a year to know
about change ín the expectatíon íeveís & actuaí performance
a. Customer Servíce Monítoríng ceíí
b. Formaí Customer Satísfactíon Survey
c. Customer Conference
d. Customer Feedback System
5. The ñrm´s íncompíete or ínaccurate knowíedge of customer´s servíce expectatíons
ís known as
a. Market Informatíon Gap
b. Servíce Standards Gap
c. Servíce Performance Gap
d. Internaí Communícatíon Gap
6. Thís gap exíst between the present íeveí of customer servíce ohered and the
corporate vísíon about customer servíce
a. Gap 1
b. Gap 2
c. Gap 3
d. Gap 4
7. Thís stock refers to wíndow díspíay of an ínventory ín order to stímuíate demand
and act as a sííent saíesman
a. Decoupííng stock
b. Psychíc stock
c. Pípeííne stock
d. None
8. Thís stock ís aíso known as cycíe or íot síze stock
a. Workíng stock
b. Safety stock
c. Antícípatíon stock
d. None
9. In thís system manufacturer ís gíven the responsíbíííty for monítoríng & controíííng
ínventory íeveís at the retaíí store íeveí
a. Ouíck Response
b. Contínuous Repíeníshment
c. Vendor-managed Inventory
d. Customer Reíatíonshíp
10. Thís mode of transport ís a very sígníñcant one but wíth a very restrícted scope. It
ís used prímarííy for the shípment of ííquíd & gas
a. Aírways
b. Raííways
c. Pípeíínes
d. Seaways
P*#" T1&-
1. What ís Contaínerízatíon and aíso mentíon the maín features of Contaínerízatíon.
2. What ís Thírd Party Logístícs?
3. Díherentíate between Pubííc & Prívate Warehouse.
4. What ís Logístícs Informatíon System?
C*!+.+"+ 2
Superíor Medícaí Equípment Company suppííes eíectrícaí equípment that ís used as
components ín the assembíy of MRI, CAT scanners, PET scanners, and other medícaí
díagnostíc equípment. Superíor has productíon facííítíes ín Phoeníx, Arízona, and
Monterrey, Mexíco. Customers for the components are íocated ín seíected íocatíons
throughout the Uníted States and Canada. Currentíy, a warehouse, that receíves aíí
components from the píants and redístríbuted them to customers, ís íocated at
Kansas Cíty, Kansas. Superíor´s management ís concerned about íocatíon of íts
warehouse sínce íts saíes have decííned due to íncreasíng competítíon and shíftíng
saíes íeveís among the customers. The íease ís about to expíre on the current
warehouse, and management wíshes to examíne whether ít shouíd be renewed or
warehouse space at some other íocatíon shouíd be íeased. The warehouse owner has
ohered to renew the íease at an attractíve rate of $2.75 per sq. ft. per year for the
200,000 sq. ft. facíííty. It ís estímated that any other íocatíon wouíd cost $3.25 per q.
ft. for a símííar-síze warehouse. A new or renewed íease wííí be for ñve years. Movíng
the ínventory, movíng expenses for key personneí, and other íocatíon expenses wouíd
resuít ín a one-tíme charge of $3, 00,000. Warehouse operatíng costs are expected to
be símííar at any íocatíon.
In the most recent year, Superíor was abíe to achíeve saíes of nearíy $70 mííííon.
Transportatíon costs from the píants to the Kansa warehouse were $2,162,535, and
from the warehouse to customers were $4,819,569. One mííííon doííars was paíd
annuaííy as warehouse íease expenses. To study the warehouse íocatíon questíon,
data shown ín Tabíes 1 and 2 were coííected.
Aíthough transport costs are not usuaííy expressed on a $/cwt./mííe basís, gíven that
the outbound transportatíon costs for the most recent year were $4,819,569, the
weíghted average dístance of the shípments was 1128 mííes, and the annuaí voíume
shípped was 182,100 cwt., the estímated average outbound rate from a warehouse ís
$0.0235/cwt./mííe.
T*$.+ 2
Voíume,
Rate,
Dístance,
and
Coordínate
ANNUAL
VOLUME3
CWT4$
TRANSPO
RT RATE3
5/CWT4
DISTANCE
3 MILES
GRID
C&&#6'*"
+!*
X
Y
Data for
Shíppíng
from
Píants to
the Kansas
Cíty
Warehouse
ín
Truckíoad
Ouantítíes
(Cíass
100) for
the Most
Recent
Year.
PLANT
LOCATION
P0&+'7 61,500 16.73 1163 3.60 849:
M&'"+##+
;
120,600 9.40 1188 6.90 24::
T&"*. 182,100
Enterprise !esource Plannin"
Part #ne:
Multiple Choices:
1. *nter#rise 9esource Planning is:
a. Com#uter -!stem
b. 3anufacturing organization
c. 3ethod of effective #lanning of all the resources in an organization
d. None of the above
. *nter#rise 9esource Planning vendors are those #eo#le:
a. 'ho are e=#erts in administration and management of #ro$ects
b. 'ho have develo#ed the *9P #ac(ages
c. 'ho uses the *9P s!stem
d. None of the above
&. Interviewing and cost $ustification is tool and techni)ue of:
a. 5esign ste# of *9P
b. Im#lementation ste# of *9P
c. 9e)uirement anal!sis of *9P
d. Planning ste# of *9P
,. -u##ort reFengineering #rocesses to fit the software s!stems best #ractice is a##roach of:
a. 9eFengineering a##roach
b. Customizing a##roach
c. 9ational a##roach
d. None of the above
.. Process of trac(ing customer contacts and #roviding the customer with a #rice )uote is:
a. Inventor! sourcing
b. -ales order #rocessing
c. PreFsales
d. None of the above
1. /he difficult! in creating an audit trial of transactions when multi#le transactions use multi#le
database is associated with:
a. Product #rofitabilit! subFs!stem
b. 0inished goods inventor! subFs!stem
c. 3anagement re#orting subFs!stem
d. Creating an audit trial subFs!stem
6. 5ifferences occur between standard costs and actual costs is #roblem associated with:
a. %ccounting
b. Production
c. Purchasing $ 3aterials 3anagement
d. None of the above
7. 39P in *nter#rise resource #lanning stands for:
a. 3a=imum retail #rice
b. 3aterial re)uirement #lanning
c. 3anagement re)uirement #lanning
d. None of the above
:. Process of #roviding status of #urchase order comes in a categor! of:
a. Purchase order followFu#
b. -ource determination
c. 5etermine re)uirement
d. Invoice verification
1;. 9esource failure occurs when:
a. Peo#le clashes
b. Inabilit! to communicate with the s!stem user
c. Poor s#ecification of re)uirements
d. Conflicts of #eo#le? time and #ro$ect sco#e due to insufficient #ersonnel
Part Two:
1. 'hat are the advantages of the reFengineering method of im#lementing *9P8
. 'hat are the benefits re#orted from im#lementing *9P8
&. 'rite a short note on ACredit 3anagementB.
,. 5efine 3aterial 9e)uirements Planning.
Caselet 1
/ech >nowledge is a startFu# founded in 1::6 b! 9obert /h!er. /he com#an! is a distributer of
#resentation technologies? including com#uter based #ro$ection s!stems? video e)ui#ment? and
dis#la! technologies. /he firm has . em#lo!ees and does N. million in sales. It is growing ra#idl!.
/he owner? 9obert /h!er? would li(e to net source the bac(Foffice functions of the firm because the
com#an! does not have an internal I/ ca#abilit!. /he a##lications to be net sourced would include
sales and distribution? financial accounting? and inventor! management.
/ech >nowledge would li(e to source -%P or another *9P vendor via a hosting arrangement. It
does not e=#ect to do much customization? and it does not have an! legac! s!stems.
Questions:
1. 'hat factors should it use to evaluate each of these #otential hosts8
. 'hat controls should be in #lace to monitor the hosting arrangement8
Caselet 2
I/3 is a com#an! s#ecializing in networ( im#lementation and management. It #rovides networ(ing
services to midFsized com#anies? which do not have an internal networ(ing anal!st or I/? manager.
/hese organizations include real estate com#anies? law offices? medical #ractices? architectural L
engineering firms? construction com#anies? business services #roviders? countr! clubs? communit!
organizations? and churches.
I/3 uses a legac! accounting s!stem to handle its financial accounting and financial management
functions. It has added on a billing #ac(age for client services. /he ne=t ste# is to obtain a C93
ca#abilit! to manage information about current and #ros#ective customers more effectivel!.
Dou have been assigned to identif! #otential sources for a netFsourcing arrangement with an *9P
vendor? which #rovides C93 ca#abilities.
Questions:
1. Identif! #otential sources of software.
. 5etermine five criteria !ou will recommend be used to evaluate each of alternative #roviders.
1. *=#lain in brief -ales and 3ar(eting 3odules in *9P -!stem.
. 'hat are the different develo#ment #rocess in *9P s!stems and write a detailed note on it8
%inancial Mana"ement
Multiple choices:
1. /he a##roach focused mainl! on the financial #roblems of cor#orate enter#rise
a. Ignored nonFcor#orate enter#rise
b. Ignored wor(ing ca#ital financing
c. *=ternal a##roach
d. Ignored routine #roblems
. /hese are those shares? which can be redeemed or re#aid to the holders after a la#se of the
sti#ulated #eriod
a. Cumulative #reference shares
b. NonFcumulative #reference shares
c. 9edeemable #reference shares
d. Per#etual shares
&. /his t!#e of ris( arise from changes in environmental regulations? zoning re)uirements? fees?
licenses and most fre)uentl! ta=es
a. Political ris(
b. 5omestic ris(
c. International ris(
d. Industr! ris(
,. It is the cost of ca#ital that is e=#ected to raise funds to finance a ca#ital budget or investment
#ro#osal
a. 0uture cost
b. -#ecific cost
c. -#ot cost
d. Boo( cost
.. /his conce#t is hel#ful in formulating a sound < economical ca#ital structure for a firm
a. 0inancial #erformance a##raisal
b. Investment evaluation
c. 5esigning o#timal cor#orate ca#ital structure
d. None
Examínatíon Paper Semester I: Fínancíaí Management
IIBM Instítute of Busíness Management
1. It is the minimum re)uired rate of return needed to $ustif! the use of ca#ital
a. 0rom investors
b. 0irms #oint
c. Ca#ital e=#enditure #oint
d. Cost of ca#ital
6. It arises when there is a conflict of interest among owners? debenture holders and the management
a. -easonal variation
b. 5egree of com#etition
c. Industr! life c!cle
d. %genc! costs
7. -ome guidelines on shares < debentures issued b! the government that are ver! im#ortant for the
constitution of the ca#ital structure are
a. 2egal re)uirement
b. Pur#ose of finance
c. Period of finance
d. 9e)uirement of investors
:. It is that #ortion of an investments total ris( that results from change in the financial integrit! of
the investment
a. BullF bear mar(et ris(
b. 5efault ris(
c. International ris(
d. 2i)uidit! ris(
1;. _____________ measure the s!stematic ris( of a securit! that cannot be avoided through
diversification
a. Beta
b. 4amma
c. Probabilit! distribution
d. %l#ha
Part Two:
1& 'hat is %nnuit! (ind of cash flow8
2& 'hat do understand b! Portfolio ris(8
'& 'hat do !ou understand b! O2oan %mortizationH8
(& 'hat is the 5ifference between NPE and I998
Case let 1
/his case #rovides the o##ortunit! to match financing alternatives with the needs of different com#anies.
It allows the reader to demonstrate a familiarit! with different t!#es of securities. 4eorge /homas was
finishing some wee(end re#orts on a 0rida! afternoon in the downtown office of 'ishart and %ssociates?
an investmentFban(ing firm. 3eenda? a #artner in the firm? had not been in the New Dor( office since
3onda!. "e was on a tri# through Penns!lvania? visiting five #otential clients? who were considering the
flotation of securities with the assistance of 'ishart and %ssociates. 3eenda had called the office on
'ednesda! and told 4eorgePs secretar! that he would cable his recommendations on 0rida! afternoon.
4eorge was waiting for the cable. 4eorge (new that 3eenda would be recommending different t!#es of
securities for each of the five clients to meet their individual needs. "e also (new 3eenda wanted him to
call each of the clients to consider the recommendations over the wee(end. 4eorge was #re#ared to ma(e
these calls as soon as the cable arrived. %t ,:;; #.m. a secretar! handed 4eorge the following telegram.
4eorge /homas? 'ishart and %ssociates -/OP /a(ing advantage of offer to go s(iing in Poconos -/OP
9ecommendations as follows: M1G common stoc(? MG #referred stoc(? M&G debt with warrants? M,G
convertible bonds? M.G callable debentures -/OP. -ee !ou 'ednesda! -/OP 3eenda. %s 4eorge #ic(ed
u# the #hone to ma(e the first call? he suddenl! realized that the #otential clients were not matched with
the investment alternatives. In 3eendaPs office? 4eorge found folders on each of the five firms see(ing
financing. In the front of each folder were some handwritten notes that 3eenda had made on 3onda!
before he left. 4eorge read each of the notes in turn. %P/? Inc needs N7 million now and N, million in
four !ears. Pac(aging firm with high growth rate in triFstate area. Common stoc( trades over the counter.
-toc( is de#ressed but should rise in !ear to 17 months. 'illing to acce#t an! t!#e of securit!. 4ood
management. *=#ects moderate growth. New machiner! should increase #rofits substantiall!. 9ecentl!
retired N6 million in debt. "as virtuall! no debt remaining e=ce#t shortFterm obligations.
San)or) Enterprises
Needs N11 million. Crust! management. -toc( #rice de#ressed but e=#ected to im#rove. *=cellent growth
and #rofits forecast in the ne=t two !ear. 2ow debtFe)uit! ratio? as the firm has record of retiring debt
#rior to maturit!. 9etains bul( of earnings and #a!s low dividends. 3anagement not interested in
surrendering voting control to outsiders. 3one! to be used to finance machiner! for #lumbing su##lies.
Sharma Brothers&* +nc&
Needs N; million to e=#and cabinet and woodwor(ing business. -tarted as famil! business but now has
1;; em#lo!ees? N.; million in sales? and is traded over the counter. -ee(s additional shareholder but not
willing to stoc( at discount. Cannot raise more than N1 million with straight debt. 0air management.
4ood growth #ros#ects. Eer! good earnings. -hould s#ar( investorPs interest. Ban(s could be willing to
lend mone! for longFterm needs.
Sacheetee Ener", S,stems
/he firm is well res#ected b! liberal investing communit! near Boston area. -ound growth com#an!.
-toc( selling for N11 #er share. 3anagement would li(e to sell common stoc( at N1 or more willing to
Examínatíon Paper Semester I: Fínancíaí Management
IIBM Instítute of Busíness Management
use debt to raise N 7 million? but this is second choice. 0inancing gimmic(s and chance to turn )uic(
#rofit on investment would a##eal to those li(el! to invest in this com#an!.
!an-a., +n)ustr,
Needs N. million. 3anufactures boat canvas covers and needs funds to e=#and o#erations. Needs longterm
mone!. Closel! held ownershi# reluctant surrender control. Cannot issue debt without #ermission of
bondholders and 0irst National Ban( of Philadel#hia. 9elativel! low debtFe)uit! ratio. 9elativel! high
#rofits. 4ood #ros#ects for growth -trong management with minor wea(nesses in sales and #romotion
areas. %s 4eorge was loo(ing over the folders? 3eendaPs secretar! entered the office. 4eorge said? Q5id
3eenda leave an! other material here on 3onda! e=ce#t for these notes8B -he res#onded? QNo? thatPs it?
but I thin( those notes should be useful. 3eenda called earl! this morning and said that he verified the
facts in the folders. "e also said that he learned nothing new on the tri# and he sort of indicated that? he
had wasted his wee(? e=ce#t of course? that he was invited to go s(iing at the com#an! lodge u# thereQ.
4eorge #ondered over the situation. "e could alwa!s wait until ne=t wee(? when he could be sure that he
had the right recommendations and some of the considerations that outlined each clientPs needs and
situation. If he could determine which firm matched each recommendation? he could still call the firms b!
1:;; P.3. and meet the original deadline. 4eorge decided to return to his office and match each firm with
the a##ro#riate financing.
Question:
1. 'hich t!#e of financing is a##ro#riate to each firm8
. 'hat t!#es of securities must be issued b! a firm which is on the growing stage in order to meet
the financial re)uirements8
Case let 2
/his case has been framed in order to test the s(ills in evaluating a credit re)uest and reaching a correct
decision. Perluence International is large manufacturer of #etroleum and rubberFbased #roducts used in a
variet! of commercial a##lications in the fields of trans#ortation? electronics? and heav! manufacturing.
In the northwestern Cnited -tates? man! of the Perluence #roducts are mar(eted b! a wholl!Fowned
subsidiar!? Ba$a$ *lectronics Com#an!. O#erating from a head)uarters and warehouse facilit! in -an
%ntonio? -trand *lectronics has :.; em#lo!ees and handles a volume of N7. million in sales annuall!.
%bout N1 million of the sales re#resents items manufactured b! Perluence. 4u#ta is the credit manager at
Ba$a$ electronics. "e su#ervises five em#lo!ees who handle credit a##lication and collections on ,?1;;
accounts. /he accounts range in size from N1; to N7.?;;;. /he firm sells on varied terms? with L1;? net
&; mostl!. -ales fluctuate seasonall! and the average collection #eriod tends to run ,; da!s. BadFdebt
losses are less than ;.1 #er cent of sales. 4u#ta is evaluating a credit a##lication from Booth Plastics? Inc.?
a wholesale su##l! dealer serving the oil industr!. /he com#an! was founded in 1:66 b! Nec( %. Booth
and has grown steadil! since that time. Ba$a$ *lectronics is not selling an! #roducts to Booth Plastics and
had no #revious contact with Nec( Booth. Ba$a$ *lectronics #urchased goods from Perluence
International under the same terms and conditions as Perluence used when it sold to inde#endent
customers. %lthough Ba$a$ *lectronics generall! followed Perluence in setting its #rices? the subsidiar!
o#erated inde#endentl! and could ad$ust #rice levels to meet its own mar(eting strategies. /he PerluencePs
costFaccounting de#artment estimated a , #er cent mar(u# as the average for items sold to Pucca
*lectronics. Ba$a$ *lectronics? in turn? resold the items to !ield a 16 #er cent mar(u#. It a##eared that
these #ercentages would hold on an! sales to Booth Plastics. Ba$a$ *lectronics incurred outFof #oc(et
e=#enses that were not considered in calculating the 16 #er cent mar(u# on its items. 0or e=am#le? the
contact with Booth Plastics had been made b! James? the salesman who handled the 4laveston area.
Examínatíon Paper Semester I: Fínancíaí Management
IIBM Instítute of Busíness Management
James would receive a & #er cent commission on all sales made Booth Plastics? a commission that would
be #aid whether or not the receivable was collected. James would? of course? be willing to assist in
collecting an! accounts that he had sold. In addition to the sales commission? the com#an! would incur
variable costs as a result of handling the merchandise for the new account. %s a general guideline?
warehousing and other administrative variable costs would run & #er cent sales. 4u#ta "olmstead
a##roached all credit decisions in basicall! the same manner. 0irst of all? he considered the #otential
#rofit from the account. James had estimated firstF!ear sales to Booth Plastics of N1.?;;;. %ssuming that
Nec( Booth too( the? & #er cent discount. Ba$a$ *lectronics would realize a 16 #er cent mar(u# on these
sales since the average mar(u# was calculated on the basis of the customer ta(ing the discount. If Nec(
Booth did not ta(e the discount? the mar(u# would be slightl! higher? as would the cost of financing the
receivable for the additional #eriod of time. In addition to the #otential #rofit from the account? 4u#ta was
concerned about his com#an!Ps e=#osure. "e (new that wea( customers could become bad debts at an!
time and therefore? re)uired a vigorous collection effort whenever their accounts were overdue. "is
de#artment #robabl! s#ent three times as much mone! and effort managing a marginal account as
com#ared to a strong account. "e also figured that overdue and uncollected funds had to be financed b!
Ba$a$ *lectronics at a rate of 17 #er cent. %ll in all? slow F#a!ing or marginal accounts were ver! costl! to
Ba$a$ *lectronics. 'ith these considerations in mind? 4u#ta began to review the credit a##lication for
Booth Plastics.
Question:
1. "ow would !ou $udge the #otential #rofit of Ba$a$ *lectronics on the first !ear of sales to Booth
Plastics and give !our views to increase the #rofit.
. -uggestion regarding Credit limit. -hould it be a##roved or not? what should be the amount of
credit limit that electronics give to Booth Plastics.
1. "one! 'ell Com#an! is contem#lating to liberalize its collection effort. Its #resent sales are 9s.
1; la(h? its average collection #eriod is &; da!s? its e=#ected variable cost to sales ratio is 7. #er
cent and its bad debt ratio is . #er cent. /he Com#an!Hs cost of ca#ital is 1; #er cent and ta= are
is ,; #er cent. "e #ro#osed liberalization in collection effort increase sales to 9s. 1 la(h
increases average collection #eriod b! 1. da!s? and increases the bad debt ratio to 6 #ercent.
5etermine the change in net #rofit.
. *=#lain the conce#t of wor(ing ca#ital. 'hat are the factors which influence the wor(ing ca#ital8
CASE STUDY ANSWERS
ASSIGNMENT SOLUTIONS
PROJECT REPORTS AND THESIS
ISBM / IIBMS / IIBM / ISMS / KSBM /
NIPM
SMU / SYMBIOSIS / XAVIER / NIRM /
PSBM / NSBM / ISM / IGNOU / IICT /
ISBS / LPU / ISM&RC
MBA - EMBA - BMS - GDM - MIS - MIB
DMS - DBM - PGDM - DBM - DBA
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/uman !esource Mana"ement
Multiple choices:
1. It is a cultural attitude mar(ed b! the tendenc! to regard oneHs own culture as su#erior to others
a. 4eocentrism
b. Pol!centrism
c. *thnocentrism
d. *gocentrism
. It is the s!stemic stud! of $ob re)uirements < those factors that influence the #erformance of
those $ob re)uirements
a. Job anal!sis
b. Job rotation
c. Job circulation
d. Job descri#tion
&. /his %ct #rovides an assistance for minimum statutor! wages for scheduled em#lo!ment
a. Pa!ment of 'ages %ct? 1:&1
b. 3inimum 'ages %ct? 1:,7
c. 0actories %ct? 1:,7
d. Pa!ment of 4ratuit! act? 1:6
,. __________ is the actual #osting of an em#lo!ee to a s#ecific $ob
a. Induction
b. Placement
c. %ttrition
d. None
.. Broadening an individualHs (nowledge? s(ills < abilities for future res#onsibilities is (nown as
a. /raining
b. 5evelo#ment
c. *ducation
d. 3entoring
*=amination Pa#er -emester I: "uman 9esource 3anagement
IIBM Instítute of Busíness Management
1. Change that is designed and im#lemented in an orderl! and timel! fashion in antici#ation of
future events
a. Planned change
b. /echnolog! change
c. -tructural change
d. None
6. It is a #rocess for setting goals and monitoring #rogress towards achieving those goals
a. Performance a##raisal
b. Performance ga#
c. Performance factor
d. Performance management s!stem
7. % method which re)uires the rates to #rovide a sub$ective #erformance evaluation along a scale
from low to high
a. %ssessment centre
b. Chec(list
c. 9ating scale
d. 3onitoring
:. It is the sum of (nowledge? s(ills? attitudes? commitment? values and the li(ing of the #eo#le in an
organization
a. "uman resources
b. Personal management
c. "uman resource management
d. Productivit!
1;. % learning e=ercise re#resenting a realFlife situation where trainees com#ete with each other to
achieve s#ecific ob$ectives
a. *=ecutive develo#ment
b. 3anagement game
c. Programmed learning
d. Cnderstud!
Part Two:
1. *=#lain the im#ortance of Career Planning in industr!.
. 'rite the features of "93.
&. Briefl! e=#lain the conce#t of Performance %##raisal.
,. *=#lain OnFJob and Off Job /raining.
Case let 1
/rust them with (neeF$er( reactions?Q said Ei(ram >osh!? C*O? 5elta -oftware India? as he loo(ed at the
)uarterl! re#ort of /o# 2ine -ecurities? a wellF(nown e)uit! research firm. /he firm had announced a
downgrade of 5elta? a com#an! listed both on Indian bourses and the N%-5%K. /he reason8 QOne out
of ever! si= develo#ment engineers in the com#an! is li(el! to be benched during the remaining #art of
the !ear.Q /hree anal!sts from /o# 2ine had s#ent some time at 5elta three wee(s ago. >osh! and his
team had e=#lained how benching was no different from the #roblems of e=cess inventor!? idle time? and
sur#lus ca#acit! that firms in the manufacturing sector face on a regular basis? Q5elta has witnessed a
scorching #ace of &; #er cent growth during the last five !ears in a row?Q >osh! had said? Q'hat is
ha##ening is a corrective #hase.Q But? evidentl!? the anal!sts were unconvinced.
0h, Bench1
Clients suddenl! decide to cut bac( on I/ s#ends Pro$ect mi= gets s(ewed? affecting wor( allocation
*m#lo!ee #roductivit! is set to fall? creating slac( wor(ing conditions. "igh degree of $ob s#ecialization
leads to redundanc!
0hat are the options1
Kuic(l! cut costs in areas which are nonFcore loo( for learningHs from the manufacturing sector 0ocus on
alternative mar(ets li(e *uro#e and Ja#an 3ove into #roducts? where margins are better. Of course? the
/o# 2ine re#ort went on to cite several other Qsignals?Q as it said: the rate of annual hi(e in salaries at
5elta would come down to . #er cent Mfrom between ; and &; #er cent last !earGR the entr!Flevel inta(e
of engineers from cam#uses in June ;;1? would decline to . #er cent Munli(e the traditional &; #er cent
addition to man#ower ever! !earGR and earnings for the ne=t two !ears could di# b! between 1; and 1
#er cent. %nd the loftiest of them all: Q/he meltdown at Nasda) is unli(el! to reverse in the near future.Q
Q-ome of the signals are no doubt valid. %nd ominous?Q said >osh!? addressing his %F/eam? which had
assembled for the routine morning meeting. QBut? clearl!? ever!one is reading too much into this business
of benching. In fact? benching is one of the man! o#tions that our #rinci#als in the C- have been #ursuing
as #art of cutting costs right since -e#tember? ;;;. /he! are also e=#anding the share of offFshore $obs.
0ive of our #rinci#als have confirmed that the! would outsource more from 5elta in IndiaFwhich is li(el!
to hi(e their billings b! about &; #er cent. %t one level? this is an o##ortunit! for us. %t another? of
course? I am not sure if we should be $ubilant? because the! have as(ed for a .F&; #er cent cut in billing
rates. Our margins will ta(e a hit? unless we cut costs and im#rove #roductivit!.Q QProductivit! is clearl! a
matter of #riorit! now?Q said Eive( Earadan? EiceFPresident MO#erationsG. QIf !ou consider benching as a
nonFearning mode? we do have large #atches of it at 5elta. %s !ou are aware? it has not been eas! to
secure 6; #er cent utilization of our man#ower? even in normal times. I thin( we need to loo( at wh! we
have &; #er cent bench before e=amining how to turn it into an asset.Q Q/here are several reasons?Q
remar(ed %ch!ut Patwardhan? EiceFPresident M"9G. Q%nd a lot of it has to do with the nature of our
business? which is more #ro$ectFdriven than #roductFdriven. 'hen !ou are managing a number of
overseas and domestic #ro$ects simultaneousl!? as we do at 5elta? #eo#le tend to go on the bench. /he!
wait? as the! com#lete one #ro$ect? and are assigned the ne=t. /here are #roblems of coordination between
#ro$ects? related to the logistics of moving #eo#le and resources from one customer to another. In fact? I
am fineFtuning our monthl! man#ower utilization re#ort to #rovide a brea(u# of bench costs into
*=amination Pa#er -emester I: "uman 9esource 3anagement
IIBM Instítute of Busíness Management
s#ecificsFleave #eriod? training #rogrammes? travel time? buffers? acclimatization #eriod et al.Q QIt would
be worthwhile following the business model used b! C- #rinci#al /echno Inc?Q said %vee( 3ohant!?
5irector M0inanceG. Q/he com#an! has a #i#eline of #ro$ects? but it does not manage #ro$ect b! #ro$ect.
'hat it does is to slice each #ro$ect into what it calls PactivitiesP. 0or e=am#le? communication
networ(ingR user interface develo#mentR scheduling of #rocesses are activities common to all #ro$ects.
Peo#le move from one #ro$ect to another. It is somewhat li(e the %ctivit! Based Costing. It throws u# the
bench time straightawa!? which hel#s us control costs and revenue better.Q QI also thin( we should reduce
our de#endence on #ro$ects and move into #roducts?Q said Praveen >umar? 5irector M3ar(etingG. Q/hat is
where the o##ortunit! for brand building lies. In fact? now is the time to get our technolog! gu!s involved
in mar(eting. 3ultis(illing hel#s reduce the bench time.Q QBenching has an analog! in the manufacturing
sector?Q said 4irish -hahane? EiceFPresident M-ervicesG. Q'e could loo( for learningPs there. 3an! firms
have ado#ted JustFInF/ime MJI/G inventor! as #art of eliminating idle time. It would be worthwhile
e=#loring the #ossibilit! of JI/. But the real learning lies in standardization of wor(. It is lin(ed to what
3ohant! said about managing b! activities.Q Q%t a broader level? I see several other o##ortunities?Q said
>osh!? Q'e can fill in the s#ace vacated b! C- firms and move u# the value chain. But before we do so?
5elta should consolidate its #osition as the #remier outsourcing centre. -ince there are onl! two wa!s in
which we can generate revenueFsell e=#ertise or sell #roductsFwe should move towards a mi= of both.
/ieFu#s with global ma$ors will hel#. Now is the time to loo( be!ond the C- and stri(e alliances with
firms in *uro#eF and also Ja#anFas #art of develo#ing new #roducts for global mar(ets.Q
Questions
1. -hould benching be a matter of concern at 5elta8
. 'hat are the ris(s involved in moving from a #ro$ectFcentric mode to a mi= of #ro$ects and #roducts8
Case let 2
/he conte=ts in which human resources are managed in toda!Ps organizations are constantl!? changing.
No longer do firms utilize one set of manufacturing #rocesses? em#lo! a homogeneous grou# of lo!al
em#lo!ees for long #eriods of time or develo# one set wa! of structuring how wor( is done and
su#ervisor! res#onsibilit! is assigned. Continuous changes in who organizations em#lo! and what these
em#lo!ees do re)uire "9 #ractices and s!stems that are well conceived and effectivel! im#lemented to
ensure high #erformance and continued success.
1. %utomated technologies nowada!s re)uire more technicall! trained em#lo!ees #ossessing multifarious
s(ills to re#air? ad$ust or im#rove e=isting #rocesses. /he firms canPt e=#ect these em#lo!ees M4en I
em#lo!ees? #ossessing su#erior technical (nowledge and s(ills? whose attitudes and #erce#tions toward
wor( are significantl! different from those of their #redecessor organizations: li(e greater self control?
less interest in $ob securit!R no e=#ectations of long term em#lo!mentR greater #artici#ation urge in wor(
activities? demanding o##ortunities for #ersonal growth and creativit!G to sta! on without attractive
com#ensation #ac(ages and novel reward schemes.
. /echnolog! driven com#anies are led b! #ro$ect teams? #ossessing diverse s(ills? e=#erience and
e=#ertise. 0le=ible and d!namic organizational structures are needed to ta(e care of the e=#ectations of
managers? technicians and anal!sts who combine their s(ills? e=#ertise and e=#erience to meet changing
customer needs and com#etitive #ressures.
&. Cost cutting efforts have led to the decimation of unwanted la!ers in organizational hierarch! in recent
times. /his? in turn? has brought in the #roblem of managing #lateau em#lo!ees whose careers seem to
have been hit b! the delivering #rocess. Organizations are? therefore? made to find alternative career #aths
for such em#lo!ees.
*=amination Pa#er -emester I: "uman 9esource 3anagement
IIBM Instítute of Busíness Management
,. Both !oung and old wor(ers? these da!s? have values and attitudes that stress less lo!alt! to the
com#an! and more lo!alt! to oneself and onePs career than those shown b! em#lo!ees in the #ast?
Organizations? therefore? have to devise a##ro#riate "9 #olicies and strategies so as to #revent the flight
of talented em#lo!ees
Question
1.5iscuss that technological brea(through has brought a radical changes in "93.
1. -everal t!#es of interviews are commonl! used de#ending on the nature < im#ortance of the
#osition to be filled within an organization. *=#lain the different t!#es of Interviews.
. *=#lain the legal #rovisions regarding safet! of wor(ers.
Mana"erial Economics
Multiple choices:
1. It is a stud! of econom! as a whole
a. 3acroeconomics
b. 3icroeconomics
c. 9ecession
d. Inflation
. % com#rehensive formulation which s#ecifies the factors that influence the demand for the
#roduct
a. 3ar(et demand
b. 5emand schedule
c. 5emand function
d. Income effect
&. It is com#uted when the data is discrete and therefore incremental changes is measurable
a. -ubstitution effect
b. %rc elasticit!
c. Point elasticit!
d. 5erived demand
,. 4oods < services used for final consum#tion is called
a. 5emand
b. Consumer goods
c. Producer goods
d. Perishable goods
.. /he curve at which satisfaction is e)ual at each #oint
a. 3arginal utilit!
b. Cardinal measure of utilit!
c. /he Indifference Curve
d. Budget line
Examínatíon Paper Semester I: Manageríaí Economícs
IIBM Instítute of Busíness Management
1. Costs that are reasonabl! e=#ected to be incurred in some future #eriod or #eriods
a. 0uture costs
b. Past costs
c. Incremental costs
d. -un( costs
6. Condition when the firm has no tendenc! either to increase or to contract its out#ut
a. 3ono#ol!
b. Profit
c. *)uilibrium
d. 3ar(et
7. /otal mar(et value of all finished goods < services #roduced in a !ear b! a countr!Hs residents is
(nown as
a. National income
b. 4ross national #roduct
c. 4ross domestic #roduct
d. 9eal 45P
:. /he sum of net value of goods < services #roduced at mar(et #rices
a. 4overnment e=#enditure
b. Product a##roach
c. Income a##roach
d. *=#enditure a##roach
1;. /he mar(et value of all the final goods < services made within the borders of a nation in an !ear
a. 4lobalization
b. -ubsidies
c. 45P
d. 4NP
Part Two:
1. 5efine O%rc *lasticit!H.
. *=#lain the law of O5iminishing marginal returnsH.
&. 'hat is OPrisonerHs 5ilemmaH? of non coo#erative game8
,. 'hat is O/hird degree 5iscrimationH8
Case let 1
/he war on drugs is an e=#ensive battle? as a great deal of resources go into catching those who bu! or
sell illegal drugs on the blac( mar(et? #rosecuting them in court? and housing them in $ail. /hese costs
seem #articularl! e=orbitant when dealing with the drug mari$uana? as it is widel! used? and is li(el! no
more harmful than currentl! legal drugs such as tobacco and alcohol. /herePs another cost to the war on
drugs? however? which is the revenue lost b! governments who cannot collect ta=es on illegal drugs. In a
recent stud! for the 0raser Institute? Canada? *conomist -te#hen /. *aston attem#ted to calculate how
much ta= revenue the government of the countr! could gain b! legalizing mari$uana. /he stud! estimates
that the average #rice of ;.. grams Ma unitG of mari$uana sold for N7.1; on the street? while its cost of
#roduction was onl! N1.6;. In a free mar(et? a N1.:; #rofit for a unit of mari$uana would not last for long.
*ntre#reneurs noticing the great #rofits to be made in the mari$uana mar(et would start their own grow
o#erations? increasing the su##l! of mari$uana on the street? which would cause the street #rice of the
drug to fall to a level much closer to the cost of #roduction. Of course? this doesnPt ha##en because the
#roduct is illegalR the #ros#ect of $ail time deters man! entre#reneurs and the occasional drug bust ensures
that the su##l! sta!s relativel! low. 'e can consider much of this N1.:; #er unit of mari$uana #rofit a
ris(F#remium for #artici#ating in the underground econom!. Cnfortunatel!? this ris( #remium is ma(ing a
lot of criminals? man! of whom have ties to organized crime? ver! wealth!. -te#hen /. *aston argues that
if mari$uana was legalized? we could transfer these e=cess #rofits caused b! the ris( #remium from these
grow o#erations to the government: If we substitute a ta= on mari$uana cigarettes e)ual to the difference
between the local #roduction cost and the street #rice #eo#le currentl! #a! S that is? transfer the revenue
from the current #roducers and mar(eters Mman! of whom wor( with organized crimeG to the government?
leaving all other mar(eting and trans#ortation issues aside we would have revenue of Msa!G N6 #er TunitU.
If !ou could collect on ever! cigarette and ignore the trans#ortation? mar(eting? and advertising costs? this
comes to over N billion on Canadian sales and substantiall! more from an e=#ort ta=? and !ou forego the
costs of enforcement and de#lo! !our #olicing assets elsewhere. One interesting thing to note from such a
scheme is that the street #rice of mari$uana sta!s e=actl! the same? so the )uantit! demanded should
remain the same as the #rice is unchanged. "owever? itPs )uite li(el! that the demand for mari$uana would
change from legalization. 'e saw that there was a ris( in selling mari$uana? but since drug laws often
target both the bu!er and the seller? there is also a ris( Malbeit smallerG to the consumer interested in
bu!ing mari$uana. 2egalization would eliminate this ris(? causing the demand to rise. /his is a mi=ed bag
from a #ublic #olic! stand#oint: Increased mari$uana use can have ill effects on the health of the
#o#ulation but the increased sales bring in more revenue for the government. "owever? if legalized?
governments can control how much mari$uana is consumed b! increasing or decreasing the ta=es on the
#roduct. /here is a limit to this? however? as setting ta=es too high will cause mari$uana growers to sell on
the blac( mar(et to avoid e=cessive ta=ation. 'hen considering legalizing mari$uana? there are man!
economic? health? and social issues we must anal!ze. One economic stud! will not be the basis of
CanadaPs #ublic #olic! decisions? but *astonPs research does conclusivel! show that there are economic
benefits in the legalization of mari$uana. 'ith governments scrambling to find new sources of revenue to
#a! for im#ortant social ob$ectives such as health care and education e=#ect to see the idea raised in
Parliament sooner rather than later.
Questions
1. Plot the demand schedule and draw the demand curve for the data given for 3ari$uana in the case above.
. On the basis of the anal!sis of the case above? what is !our o#inion about legalizing mari$uana in Canada8
Case let 2
Com#anies that attend to #roductivit! and growth simultaneousl! manage cost reductions ver! differentl!
from com#anies that focus on cost cutting alone and the! drive growth ver! differentl! from com#anies
that are obsessed with growth alone. It is the abilit! to coo( sweet and sour that under grids the
remar(able #erformance of com#anies li(es Intel? 4*? %BB and Canon. In the slow growth electrotechnical
business? %BB has doubled its revenues from N16 billion to N&. billion? largel! b! e=#loiting
new o##ortunities in emerging mar(ets. 0or e=am#le? it has built u# a ,1?;;; em#lo!ee organization in
the %sia Pacific region? almost from scratch. But it has also reduced em#lo!ment in North %merica and
'estern *uro#e b! .,?;;; #eo#le. It is the hard s)ueeze in the north and the west that generated the
resources to su##ort %BBPs massive investments in the east and the south. *ver!one (nows about the
staggering ambition of the %mbanis? which has fuelled 9eliancePs evolution into the largest #rivate
com#an! in India. 9eliance has built its s#ectacular rise on a similar abilit! to coo( sweet and sour. 'hat
#eo#le ma! not be e)uall! familiar with is the relentless focus on cost reduction and #roductivit! growth
that #ervades the com#an!. 9eliancePs em#lo!ee cost is , #er cent of revenues? against 1.F; #er cent of
its com#etitors. Its sales and distribution cost? at & #er cent of revenues? is about a third of global
standards. It has continuousl! #ushed down its cost for energ! and utilities to & #er cent of revenues?
largel! through 1;; #er cent ca#tive #ower generation that costs the com#an! ,.. cents #er (ilowattFhourR
well below Indian utilit! costs? and about &; #er cent lower than the global average. -imilarl!? its ca#ital
cost is .F&; #er cent lower than its international #eers due to its legendar! s#eed in #lant commissioning
and its relentless focus on reducing the weighted average cost of ca#ital M'%CCG that? at 1& #er cent? is
the lowest of an! ma$or Indian firm.
2 Bias or Growth
Com#aring ma$or Indian com#anies in (e! industries with their global com#etitors shows that Indian
com#anies are running a ma$or ris(. /he! suffer from a #rofound bias for growth. /here is nothing wrong
with this bias? as 9eliance has shown. /he #roblem is most loo( more li(e *ssar than 9eliance. 'hile
the! love the sweet of growth? the! are unwilling to face the sour of #roductivit! im#rovement.
Nowhere is this more am#l! borne out than in the consumer goods industr! where the Indian giant
"industan 2ever has consolidated to grow at over .; #er cent while its labour #roductivit! declined b!
around 1 #er cent #er annum in the same #eriod. Its strongest com#etitor? Nirma? also grew at over . #er
cent #er annum in revenues but maintained its labour #roductivit! relativel! stable. Cnfortunatel!?
however? its return on ca#ital em#lo!ed M9OC*G suffered b! over 16 #er cent. In contrast? Coca Cola?
worldwide? grew at around 6 #er cent? im#roved its labour #roductivit! b! ; #er cent and its return on
ca#ital em#lo!ed b! 1.6 #er cent. /he stor! is ver! similar in the information technolog! sector where
Infos!s? NII/ and "C2 achieve rates of growth of over .; #er cent which com#ares favorabl! with the
worldPs best com#anies that grew at around &; #er cent between 1::,F:.. NII/? for e=am#le? strongl!
believes that growth is an im#etus in itself. Its focus on growth has hel#ed it double revenues ever! two
!ears. -ustaining #rofitabilit! in the face of such e=#ansion is an e=tremel! challenging tas(. 0or now?
this is a challenge Indian Info/ech com#anies seem to be losing. /he 9OC* for three Indian ma$ors fell
b! 6 #er cent annuall! over 1::,F:1. %t the same time IB3 3icrosoft and -%P managed to im#rove this
ratio b! 16 #er cent. /here are some e=ce#tions? however. /he cement industr!? which has focused on
#roductivit! rather than on growth? has done ver! well in this dimension when com#ared to their global
Examínatíon Paper Semester I: Manageríaí Economícs
IIBM Instítute of Busíness Management
counter#arts. 'hile 3e=icoPs Ceme= has grown about three times fast as IndiaPs %CC? Indian cement
com#anies have consistentl! delivered better results? not onl! on absolute #rofitabilit! ratios? but also on
absolute #rofitabilit! growth. /he! show a growth of , #er cent in return on ca#ital em#lo!ed while
international #la!ers show onl! 7., #er cent. 2abour #roductivit!? which actuall! fell for most industries
over 1::,F:1? has im#roved at .. #er cent #er annum for cement.
/he engineering industr! also matches u# to the #erformance standards of the best in the world.
Com#anies li(e Cummins India have alwa!s #ushed for growth as is evidenced b! its 6 #er cent rate of
growth? but not at the cost of #resent and future #rofitabilit!. /he com#an! shows a health! e=cess of
almost &; #er cent over '%CC? dis#la!ing great future #romise. B"*2? the #ublic sector giant? has seen
similar success and the share #rice rose b! . #er cent des#ite an indecisive sense=. /he onl! note of
caution: Indian engineering com#anies have not been able to im#rove labour #roductivit! over time?
while international engineering com#anies li(e %BB? -iemens and Cummins *ngines have achieved
about 1&.. #er cent growth in labour #roductivit!? on an average? in the same #eriod. /he #harmaceuticals
industr! is where the #roblems seem to be the worst? with growth em#hasized at the cost of all other
#erformance. /he! have been growing at over #er cent? while their 9OC* fell at 1..: #er cent #er
annum and labour #roductivit! at 6 #er cent. Com#are this with some of the best #harmaceutical
com#anies of the world S 4la=o 'ellcome? -mith>line Beecham and Pfizer Swho have consistentl!
achieved growth of 1.F; #er cent? while im#roving returns on ca#ital em#lo!ed at about
. #er cent and labour #roductivit! at 7 #er cent. 9anba=! is not an e=ce#tionR the bias for growth at the
cost of labour and ca#ital #roductivit! is also manifest in the #erformance of other Indian Pharma
com#anies. 'hat ma(es this even worse is the Indian com#anies barel! manage to cover their cost of
ca#ital? while their com#etitors worldwide such as 4la=o and Pfizer earn an average 9OC* of 1. #er
cent. In the Indian te=tile industr!? %rvind 3ills was once the shining star. 2i(e 9eliance? it had learnt to
coo( sweet and sour. Between 1::, and 1::1? it grew at an average of &; #er cent #er annum to become
the worldPs largest denim #roducer. %t the same time? it also o#erated a tight shi#? im#roving labour
#roductivit! b! ; #er cent. 5es#ite the e=cellent #erformance in the #ast? there are warning signals for
%rvindPs future. /he e=cess over the '%CC is onl! 1.. #er cent? im#l!ing it barel! manages to satisf! its
investorHs e=#ectations of return and does not reall! have a sur#lus to reFinvest in the business.
%##arentl!? investors also thin( so? for %rvindPs stoc( #rice has been falling since K, 1::, des#ite such
e=cellent results and? at the end of the first )uarter of 1::7? is less than 9s 6; com#ared to 9s 16; at the
end of 1::,. Cnfortunatel!? %rvindPs deteriorating financial returns over the last few !ears is also t!#ical
of the Indian te=tile industr!. /he to# three Indian com#anies actuall! showed a decline in their return
ratios in contrast to the international ma$ors. Ni(e? E0 Cor# and Coats Ei!ella showed a growth in their
returns on ca#ital em#lo!ed of 1. #er cent? while the 9OC* of 4rasim and Coats Ei!ella MIndiaG fell b!
almost #er cent #er annum. *ven in absolute returns on assets or on ca#ital em#lo!ed? Indian com#anies
fare a lot worse. 'hile Indian te=tile com#anies $ust about cover their '%CC? their international rivals
earn about 7 #er cent in e=cess of their cost of ca#ital.
Questions
1. Is Indian com#anies running a ris( b! not giving attention to cost cutting8
. 5iscuss whether Indian Consumer goods industr! is growing at the cost of future #rofitabilit!.
&. 5iscuss ca#ital and labour #roductivit! in engineering conte=t and #harmaceutical industries in India.
,. Is te=tile industr! in India #erforming better than its global com#etitors8
1. 0ree trade #romotes a mutuall! #rofitable regional division of labour? greatl! enhances the
#otential real national #roduct of all nations and ma(es #ossible higher standards of living all
over the globe.B Criticall! e=#lain and e=amine the statement.
. 'hat role does a decision tree #la! in business decisionFma(ing8 Illustrate the choice between
two investment #ro$ects with the hel# of a decision tree assuming h!#othetical conditions about
the states of nature? #robabilit! distribution? and corres#onding #a!Foffs.
CASE STUDY ANSWERS
ASSIGNMENT SOLUTIONS
PROJECT REPORTS AND THESIS
ISBM / IIBMS / IIBM / ISMS / KSBM /
NIPM
SMU / SYMBIOSIS / XAVIER / NIRM /
PSBM / NSBM / ISM / IGNOU / IICT /
ISBS / LPU / ISM&RC
MBA - EMBA - BMS - GDM - MIS - MIB
DMS - DBM - PGDM - DBM - DBA
www.mbacasest!"a#swe$s.c%m
www.casest!"s%&t'%#.'#
www.casest!'es.c%.'#
a$a+'#!.ba#a,a$-.ma'&.c%m
Mar3etin" Mana"ement
Multiple choices:
1. It is a conce#t where goods are #roduced without ta(ing into consideration the choices or tastes of
customers
a. 3ar(eting mi=
b. Production conce#t
c. 3ar(eting conce#t
d. 9elationshi# mar(eting
. It involves individuals who bu!s #roducts or services for #ersonal use and not for manufacture or
resale
a. *nvironment anal!sis
b. 3acro environment
c. 3icro environment
d. Consumer
&. It is the grou#s of #eo#le who interact formall! or informall! influencing each otherHs attitudes<
behavior
a. Consumer behavior
b. Culture
c. 9eference grou#s
d. Primar! grou#s
,. /he conce#t of the #roduct that #asses through various changes in its total life (nown as
a. Product life c!cle
b. 2ine stretching
c. Consumer ado#tion
d. Product
.. It refers to uni)ue set of brand associations that brand strategist as#ires to create or maintain
a. Branding
b. Pac(aging
c. Brand identit!
d. Brand image
Examínatíon Paper Semester I: Marketíng Management
IIBM Instítute of Busíness Management
1. It involves a #ricing strateg! that charges customers different #rices for the same #roduct or
service
a. Promotional #ricing
b. Price discrimination
c. Non #rice com#etition
d. None
6. It refers to an arrangement where another com#an! through its own mar(eting channel sells the
#roducts of one #roducers
a. *nd customer
b. 'holesaler
c. 9etailing
d. -trategic channel alliance
7. It involves facilit! consisting of the means < e)ui#ments necessar! for the movement of
#assengers of goods
a. 2ogistics
b. 'arehousing
c. /rans#ortation
d. None
:. /he advertising which is used to inform consumers about a new #roduct or feature < to build
#rimar! demands is (nown as
a. %dvertising
b. Informative advertising
c. Persuasive advertising
d. %dvertising strateg!
1;. %n art that #redicts the li(elihood of economic activit! on the basis of certain assum#tions
a. Com#ensation
b. -ales forecasting
c. -ales budgeting
d. -elling #olic!
Part Two:
1. 'rite a note on im#ortance of consumer behavior for a business firm8
. 5efine the term OPriceH.
&. 5istinguish between 3ar(eting Conce#t and -elling Conce#t8
,. 'hat are the new trends in advertisement8
.. Briefl! e=#lain the following :
aG -ocio Sculture environment
bG 3ar(eting environment interface.
Case let 1
%s( the com#an! to# brass what Oalmost thereH means. /he answer: a #remier Indian retail com#an! that
has come to be (nown as a s#ecialt! chain of a##arel and accessories. 'ith . #roduct categories under
one roof? -ho##ersH -to# has a lineFu# of &.; brands. -et u# and headed b! former Corona em#lo!ee? B.
-. Nagesh? -ho##ersH -to# is IndiaHs answer to -elfridges and Printem#s. %s it #roudl! announces? O'e
donHt sell? we hel# !ou bu!.H Bac( in 1::1? there was the )uestion of what to retail. -hould it be a
su#ermar(et or a de#artmental store8 *ven an electronics store was considered. 0inall!? common sense
and understanding won out. /he safest bet? for the allFmale team was to retail menHs wear. /he! (new the
male #s!che and felt that the! had discerning taste in menHs clothing. /he conce#t would be that of a
lifest!le store in a lu=urious s#ace? which would ma(e for a great sho##ing e=#erience. /he first
-ho##ersH -to# store too( sha#e in %ndheri? 3umbai? in October 1::1? with an investment of nearl! 9s.
; la(h. /he original conce#t that formed the basis of a successful mar(eting cam#aign for seven !ears is
here to sta!. %nd the result is an annual turnover of 9s. 11; crores and five stores? nine !ears later.
*ver!thing went right from the beginning? e=ce#t for one strange ha##ening. 3ore than 1; #er cent of the
customers who wal(ed into -ho##ersH -to# in 3umbai were women. /his gave rise to ideas. -oon? the
store set u# its womenHs section. 2ater? it e=#anded to include childrenHs wear and then? household
accessories. /he second store in Bangalore came in 1::.. /he store at "!derabad followed in 1::7 with
the largest area of 1;?;;; s). ft. /he New 5elhi and Jai#ur stores were inaugurated in 1:::. %ll this
while? the #roduct range (e#t increasing to suit customer needs. /he most recent e=#eriment was home
furnishings. -ecure in the (nowledge that organised retailing in global brands was still in its infanc! in
India? -ho##ersH -to# laid the ground rules which the com#etition followed. /he biggest advantage for
-ho##ersH -to# is that it (nows how the Indian consumer thin(s and feels while sho##ing. Des? feeling S
for in India? sho##ing remains an outing. %nd how does it com#are itself to foreign stores8 'hile it is not
modeled on an! one foreign retailer? the Obasic constructH is ta(en from the e=#erience of a number of
successfull! managed retail com#anies. It has leveraged e=#ertise for a critical com#onent li(e technolog!
from all over the world? going as far as hiring e=#atriates from 2ittlewoods and using stateFofFtheFart *9P
models. -ho##ersH -to# went a ste# further b! even integrating its financial s!stem with the *9P model.
*=#ertise was im#orted wherever it felt that e=#ertise available inFhouse was inade)uate. But the store felt
there was one acute #roblem. % shortage of the most im#ortant resource of them all was trained humans.
-ince Indian business institutes did not have #rofessional courses in retail management? #eo#le were hired
from different wal(s of life and the training #rogramme was internalized. B! 1::,? the senior e=ecutives
at -ho##ersH -to# were ta(ing lectures at management institutes in 3umbai. /he Narsee 3on$ee Institute
of 3anagement -tudies MN3I3-G even restructured its course to include retail management as a sub$ect.
4etting the com#an! access to the latest global retail trends and e=change of information with business
greats was an e=clusive membershi# to the Intercontinental 4rou# of 5e#artment -tores MI45-G. It allows
membershi# b! invitation to one com#an! from a countr! and -ho##ersH -to# rubs shoulders with : of
the hottest names in retailing S -elfridges from the C>? C.>. /ang from -inga#ore? 2amc! Plaza from
5ubai and the li(e. 'ith logistics I in #lace? the accent moved to the customer. -ho##ersH -to# conducted
surve!s with O94F3%94 and Indian 3ar(et 9esearch Bureau MI39BG and undertoo( inFhouse
wardrobe audits. /he studies confirmed what it alread! (new. /he Indian customer is still evolving and is
ver! different from? sa!? a *uro#ean customer? who (nows e=actl! what he wants to #urchase? wal(s u#
to a shelf? #ic(s u# the merchandise? #a!s and wal(s out. In India? customers li(e to touch and feel the
Examínatíon Paper Semester I: Marketíng Management
IIBM Instítute of Busíness Management
merchandise? and scout for o#tions. %lso? the ma$orit! of Indian sho##ers still #refer to #a! in cash. -o?
transactions must be in cash as against #lastic mone! used the world over. %dditionall!? the Indian
customer li(es being served S whether it is food? or otherwise. /he com#an!Hs customer #rofile includes
#eo#le who want the same sales#erson each time the! came to the store to wal( them through the sho#
floors and assist in the #urchase. Others came with families? (ids and maids in tow and e=#ected to be
suitabl! attended to. -till others wanted someone to carr! the bags. -o? the sho#s have selfFhel# counters?
with an assistant at hand for )ueries or hel#. /he inFhouse wardrobe audit also hel#ed with another facet
of the business. It enabled -ho##ersH -to# to wor( out which brands to stoc(? based on customer
#references. In fact? the C-P of -ho##ersH -to# lies in $udiciousl! selected global brands? dis#la!ed
alongside an inFhouse range of affordable designer wear. /he lineFu# includes 2eviHs? 2ouis Phili##e?
%llen -oll!? 'alt 5isne!? 9a! Ban and 9eebo(? besides inFhouse labels -/OP and I. Brand selection is
the same across the five locations? though the #roduct mi= ma! be somewhat cit!Fbased to accommodate
cuts and st!les in womenHs wear? as well as allowing for seasonal variations Mwinter in 5elhi? for instance?
is a case in #ointG. -toc(ing of brands is based on #o#ular demand S recentl!? Provogue? 3/E -t!le? and
Benetton have been added. InFhouse labels are available at com#etitive #rices and target the valueFformone!
customer and ma(e u# around 1 #er cent of -ho##ersH -to#Hs business. -ometimes inFhouse
brands #lug the #rice ga# in certain #roduct categories. /o cash in on this? the com#an! has big #lans for
its inFhouse brands: from reFbranding to re#ositioning? to homing in on #roduct categories where e=isting
brands are not strong. Com#etition between brands is not an issue? because being a trading house? all
brands get e)ual em#hasis. /he inFhouse brand sho##er is one who #laces immense trust in the com#an!
and the )ualit! of its goods and returns for re#eat bu!s. %nd the com#an! re#osed its faith in regular
customers b! including them in a conce#t called the 0irst CitizenHs Club M0CCG. 'ith 1;?;;; odd
members? 0CC customers account for 1; #er cent of entries and for &, #er cent of the turnover. It was the
sheer a##eal of the e=#erience that (e#t #ulling these #eo#le bac(. Not one to let such an o##ortunit!
#ass? the com#an! ran a successful ad cam#aign Mthat tal(s about $ust this factorG in #rint for more than
eight !ears. /he theme is still the same. In 1:::? a /E s#ot? which li(ed the sho##ing e=#erience to the
slowing down of oneHs internal cloc( and the beaut! of the whole e=#erience? was aired. 3ore recentl!?
ads that s#ell out the storeHs benefits Min a highl! obli)ue mannerG are being aired.
/he cam#aign is based on entries entered in the EisitorsH Boo(. None of the ads has a visual or te=t S or
an! heav! handedl! direct reference to the store or the merchandise. /he ads onl! show sho##ers having
the time of their lives in calm and serene locales? or elements that ma(e sho##ing at the store a #leasure S
)uite the #erfect getawa! for a cosmo#olitan sho##er aged between . and ,.. /he brief to the agenc!?
Contract? ensured that brand recall came in terms of the sho##ing e=#erience? not the #roduct. %nd it has
wor(ed wonders. EalueFaddition at each store also comes in the form of s#ecial care with car #ar(s?
#ower bac(u#? customer #aging? alteration service and giftFwra##ing. /o to# it all? cafes and coffee bars
ma(e sure that the customer does not ste# out of the store. In "!derabad? it has even created a 0ood
Court. %lthough the food counter was not #lanned? it came about as there was e=tra s#ace of 16?;;; s). ft.
Carr!ing the #erfect e=#erience to the sho# floor is an attem#t to stac( goods in vast o#en s#aces neatl!.
*ver! store has a generic structure? though regional customer variances are accounted for. *ach store is
on lease? and this is clearl! -ho##ersH -to#Hs most e=#ensive resource #ro#osition S renting huge s#aces
in #rime #ro#erties across metros? so far totaling 1;?;;; s). ft of retail s#ace. 4etting that s#ace was eas!
enough for -ho##ersH -to#? since its #romoter is the 3umbaiFbased 9ahe$a 4rou#? which also owns 1
#er cent of the share ca#ital.
Questions
1. 'hat are the significant factors that have led to the success of -ho##ersH -to#8
. 5raw the t!#ical #rofileMsG of -ho##ersH -to# customer segments.
&. "ow are Indian customers visiting -ho##ersH -to# an! different from customers of develo#ed
western countries8
,. "ow should -ho##ersH -to# develo# its demand forecasts8
Case let 2
/he rise of #ersonal com#uters in the mid 1:7;s s#urred interest in com#uter games. /his caused a crash
in home Eideo game mar(et. Interest in Eideo games was re(indled when a number of different
com#anies develo#ed hardware consoles that #rovided gra#hics su#erior to the ca#abilities of com#uter
games. B! 1::;? the Nintendo *ntertainment -!stem dominated the #roduct categor!. -ega sur#assed
Nintendo when it introduced its 4enesis -!stem. B! 1::&? -ega commanded almost 1; #er cent of Eideo
game mar(et and was one of the most recognized brand names among the children. -egaHs success was
short lived. In 1::.? -aturn Ma division of 4eneral 3otorsG launched a new &Fbit s!stem. /he #roduct
was a miserable failure for a number of reasons. -ega was the #rimar! software develo#er for -aturn and
it did not su##ort efforts b! outside game develo#ers to design com#atible games. In addition? -egaHs
games were often delivered )uite late to retailers. 0inall!? the #rice of the -aturn s!stem was greater than
other com#arable game consoles. /his situation of -aturnHs misste# benefited Nintendo and -on! greatl!.
-on!Hs Pla! -tation was unveiled in 1::, and was available in 6; million homes worldwide b! the end of
1:::. Its AO#en designB encouraged the efforts of outside develo#ers? resulting in almost &?;;; different
games that were com#atible with the Pla!-tation. It too featured &Fbit gra#hics that a##ealed to older
audience. %s a result? at one time? more than &; #er cent of Pla!-tation owners were over &; !ears old.
Nintendo 1, was introduced in 1::1 and had e!eF#o##ing 1,Fbit gra#hics and entered in more than 7
million homes b! 1:::. Its #rimar! users were between the age of 1 and 1& as a result of NintendoHs
efforts to limit the amount of violent and adultForiented material featured on games that can be #la!ed on
its s!stems. Because the com#an! e=ercised considerable control over software develo#ment? Nintendo
1, had onl! oneFtenth the number of com#atible games as -on!Hs Pla!-tation did. B! 1:::? -on! had
ca#tured .1 #er cent of the video game mar(et? followed b! Nintendo with , #er cent. -egaHs share had
fallen to a low of 1@. "ence? -ega had two o#tions? either to concede defeat or introduce an innovative
video machine that would bring in huge sales. %nd -ega had to do so before either Nintendo or -on!
could bring their ne=tFgeneration console to mar(et. /he -ega 5reamcast arrived in stores in -e#tember
1::: with an initial #rice tag of N1::. %n=ious gamers #laced &;;?;;; advance orders? and initial sales
were )uite encouraging. % total of 1.. million 5reamcast machines were bought within the first four
months? and initial reviews were #ositive. /he 17Fbit s!stem was ca#able of generating &F5 visuals? and
,; different games were available within three months of 5ream castHs introduction. B! the end of the
!ear? -ega had ca#tured a mar(et share to 1. #er cent. But the 5reamcast could not sustain its
momentum. %lthough its game ca#abilities were im#ressive? the s!stem did not deliver all the
functionalit! -ega had #romised. % .1> modem Mwhich used a home #hone lineG and a 'eb browser
were meant to allow access to the Internet so that gamers could #la! each other online? surf the 'eb? and
visit the 5reamcast Networ( for #roduct information and #la!ing ti#s. Cnfortunatel!? these features either
were not immediatel! available or were disa##ointing in their e=ecution. -ega was not the onl! one in
having the strateg! of adding functionalit! be!ond games. -on! and Nintendo followed the same
a##roach for their machines introduced in 1:::. Both NintendoHs Ne#tune and -on!Hs Pla!-tation
MP-G were built on a 5E5 #latform and featured a 17Fbit #rocessor. %nal!sts a##lauded the move to
5E5 because it is less e=#ensive to #roduce and allows more storage than C5s. It also gives bu!ers the
abilit! to use the machine as C5 music #la!er and 5E5 movie #la!er. %s -on! mar(eting director
commented? A/he full entertainment offering from Pla! -tation definitel! a##eals to a much broader
audience. I have friends in their &;s who bought it not onl! because itHs a gaming s!stem for their (ids?
but also a 5E5 for them.B In addition? Pla!-tation is able to #la! games develo#ed for its earlier model
that was C5Fbased. /his gives the P- an enormous advantage in the number of com#atible game titles
Examínatíon Paper Semester I: Marketíng Management
IIBM Instítute of Busíness Management
that were immediatel! available to gamers. 0urther enhancing the P-Hs a##eal is its highFs#eed modem
and allows the userHs eas! access to the Internet through digital cable as well as over tele#hone lines. /his
gives -on! the abilit! to distribute movies? music? and games directl! to P- consoles. A'e are
#ositioning this as an allFround entertainment #la!er?B commented >en >utaragi? the head of -on!
Com#uter *ntertainment. "owever? some #ros#ective customers were #ut off b! the consoleHs initial
#rice of N&1;. -hortl! after the introduction of Ne#tune? Nintendo changed its strategies and announced
the im#ending release of its newest game console? /he 4ameCube. "owever? unli(e the Ne#tune? the
4ameCube would not run on a 5E5 #latform and also would not initiall! offer an! online ca#abilities. It
would be more attractivel! #riced at N1::. % mar(eting vice #resident for Nintendo e=#lained the
com#an!Hs change in direction? A'e are the onl! com#etitor whose business is video games. 'e want to
create the best gaming s!stem.B Nintendo also made the 4ameCube friendl! for outside develo#ers and
started adding games that included s#orts titles to attract an older audience. Best (nown for its e=tra
ordinar! successes with games aimed at the !ounger set? such as 5on(e! >ong? -u#er 3ario Bros? and
Po(emon? Nintendo sought to attract older users? es#eciall! because the average video game #la!er is 7.
Douthful Nintendo users were #articularl! #leased to hear that the! could use their handheld 4ame Bo!
%dvance s!stems as controllers for the 4ameCube. Nintendo scrambled to ensure there would be an
ade)uate su##l! of 4ame Cubes on the date in November ;;1? when the! were scheduled to be available
to customers. It also budgeted N,.; million to mar(et its new #roduct? as it antici#ated stiff com#etition
during the holida! sho##ing season. 'ith more than ; million Pla!-tation sold worldwide? the
4ameCube as a new entr! in the video game mar(et would ma(e the battle for mar(et share even more
intense. 0or almost a decade? the video game industr! had onl! -ega? Nintendo? and -on!R $ust three
#la!ers. Because of strong brand lo!alt! and high #roduct develo#ment costs? newcomers faced a
daunting tas( in entering this race and being com#etitive. In November ;;1? 3icrosoft began selling its
new Ibo=? $ust three da!s before the 4ameCube made its debut. -ome observers felt the Ibo= was aimed
to rival Pla!-tation ? which has similar functions that rival 3icrosoftHs 'eb /E s!stem and even some
lower level PCs. 2i(e the -on!Hs Pla!-tation ? Ibo= was also built using a 5E5 #latform? but it used an
Intel #rocessor in its construction. /his o#en design allowed 3icrosoft to develo# the Ibo= in $ust two
!ears? and gave develo#ers the o#tion of using standard PC tool for creating com#atible games. In
addition? 3icrosoft also sought the advice of successful game develo#ers and even incor#orated some of
their feedbac( into the design of the console and its controllers. %s a result of develo#ersH efforts?
3icrosoft had about ; games read! when the Ibo= became available. B! contrast? the 4ameCube had
onl! eight games available. 3icrosoft online strateg! was another feature that differentiated of the Ibo=
from the 4ameCube. 'hereas Nintendo had no immediate #lans for 'ebFbased #la!? the Ibo= came
e)ui##ed with an *thernet #ort for broadband access to Internet. 3icrosoft also announced its own 'ebbased
networ( on which gamers can come together for online headFto head #la! and for organised online
matches and tournaments. -ubscribers to this service were to #a! a small monthl! fee and must have
highFs#eed access to the Internet. /his is a #otential drawbac( considering that a ver! low #ercentage of
households world over currentl! have broadband connections. B! contrast -on! #romoted an o#en
networ(? which allows software develo#ers to manage their own games? including associated fees charged
to users. "owever? interested #la!ers must #urchase a networ( ada#ter for an additional N&:.::. %lthough
game com#anies are not (een on the #ros#ect of submitting to the control of a 3icrosoftFcontrolled
networ(? it would re)uire a significant investment for them to manage their own service on the -on!based
networ(. Initiall! the #rice of 3icrosoftHs Ibo= was N::. Prior to the introduction of Ibo=? in a
com#etitive move -on! dro##ed the #rice of the Pla!-tation to N::. NintendoHs 4ameCube alread!
en$o!ed a significant #rice advantage? as it was selling for N1;; less than either 3icrosoft or -on!
#roducts. 4amers eagerl! sna##ed u# the new consoles and made ;;1 the best !ear ever for video game
sales. 0or the first time? consumers s#ent N:., billion on video game e)ui#ment? which was more than
the! did at the bo= office. B! the end of ;;1 holida! season? 1.1 million Pla!-tation consoles had been
sold in North %merica alone? followed b! 1.. million Ibo= units and 1. million 4ame Cubes. 'hat
ensued was an all out #rice war. /his started when -on! decided to #ut even more #ressure on the
3icrosoftHs Ibo= b! cutting the Pla!-tation #rice to N1::. 3icrosoft )uic(l! matched that #rice.
Examínatíon Paper Semester I: Marketíng Management
IIBM Instítute of Busíness Management
'anting to maintain its lowF#rice status? Nintendo in turn res#onded b! reducing the #rice of its the
4ameCube b! N.;? to N1,:. B! mid ;;? 3icrosoft Ibo= had sold between &.. and , million units
worldwide. "owever? Nintendo had sur#assed Ibo= sales b! selling ,.. million 4ame Cubes. -on! had
the benefit of health! head start? and had shi##ed & million Pla!-tation s. "owever? seven !ears after
the introduction of original Pla!-tation? it was being sold in retail outlets for
a mere N,:. It had a significant lead in terms of numbers of units in homes around the world with a ,& #er
cent share. Nintendo 1, was second with &; #er cent? followed b! -on! Pla!-tation with 1, #er cent.
/he Ibo= and 4ameCube each claimed about & #er cent of the mar(et? with -ega 5reamcast com#rising
the last and least mar(et share of ,.6 #er cent. -ega? once an industr! leader? announced in ;;1 that it
had decided to sto# #roducing the 5reamcast and other video game hardware com#onents. /he com#an!
said it would develo# games for its com#etitorsH consoles. /hus -ega slashed the #rice of the 5reamcast
to $ust N:: in an effort to li)uidate its #iled u# inventor! of more than million units and immediatel!
began develo#ing 11 new games for the Ibo=? four for Pla!-tation ? and three for NintendoHs 4ame Bo!
%dvance. %s the #rices of video game consoles have dro##ed? consoles and games have become the
e)uivalent of razors and blades. /his means the consoles generate little if an! #rofit? but the games are a
highl! #rofitable #ro#osition. /he #rofit margins on games are highl! attractive? affected to some degree
b! whether the content is develo#ed b! the console ma(er Msuch as -on!G or b! an inde#endent game
#ublisher Msuch as *lectronic %rtsG. /hus? the com#etition to develo# a##ealing? or #erha#s even
addictive? games ma! be even more intense than the battle among #la!ers to #roduce the best console. In
#articular? Nintendo? -on!? and 3icrosoft want games that are e=clusive to their own s!stems. 'ith that
in mind? the! not onl! rel! on large inFhouse staffs that design games but the! also #a! added fees to
inde#endent #ublishers for e=clusive rights to new games. /he sales of video games in ;;1 rose to ,&
#er cent? com#ared to $ust , #er cent increase for com#uterFbased games. But com#uter game #la!ers are
believed to be a lo!al bunch? as the! see man! advantages in #la!ing games on their com#uters rather
than consoles. 0or one thing? the! have a big advantage of having access to a mouse and a (e!board that
allow them to #la! far more so#histicated games. In addition? the! have been utilizing the Internet for
!ears to receive game u#dates and modifications and to #la! each other over the 'eb. -on! and
3icrosoft are intent on ca#turing a #ortion of the online gaming o##ortunit!. *ven Nintendo has decided
to ma(e available a modem that will allow 4ameCube users to #la! online. %s #rices continue to fall and
technolog! becomes increasingl! more so#histicated? it remains to be seen whether these three com#anies
can (ee# their names on the industr!Hs list of Ahigh scorersB.
Questions
1. Considering the conce#t of #roduct life c!cle? where would !ou #ut video games in their life c!cle8
. -hould video game com#anies continue to alter their #roducts to include other functions? such as eFmail8
1. 'hat is meant b! sales #romotion8 5escribe briefl! the various methods of sales #romotional
tools used b! business organizations to boost the sales. *=#lain an! four methods of sales
#romotion8
. 'rite notes on the fowling :
aG *=#lain right to safet!.
bG 'hat is right to consumer #rotection8
#r"ani4ational Behavior
Multiple choices:
1. It is the degree to which a #erson identifies with a #articular organization and its goals? < wishes
to maintain membershi# in the organization
a. Job involvement
b. /erminal value
c. %ttitude
d. Ealue
. _________ means moving information from the hidden area to the o#en area
a. blind area
b. un(nown area
c. #ublic area
d. self disclosure
&. %n a##roach in which the goals of one #art! are in direct conflict with the goals of the other #art!
a. Negotiation
b. 5istributive bargaining
c. -tress
d. None
,. /he measure of a #ersonHs abilit! to o#erate within business organizations through social
communication < interactions
a. /ransactional anal!sis
b. Inter#ersonal s(ill
c. 2ife #osition
d. Johari window
.. 'here the source of #ower is in #ersonHs control over rewarding outcomes? that #ower is called
a. Coercive #ower
b. 9eferent #ower
c. 2egitimate #ower
d. 9eward #ower
*=amination Pa#er -emester I: Organizational Behaviour
IIB3 Institute of Business 3anagement
1. It means melting resistance to changeR the #eo#le who will be affected b! the change come to
acce#t the need for it
a. Organization
b. Cnfreezing
c. Changing
d. 9efreezing
6. /his training is also (nown as laborator! training? encounter grou#s < /Fgrou#s
a. -ensitivit!
b. -urve!
c. Process
d. /eam building
7. /he! are the things that come together to define a culture < reveal that the culture is about to
those who #a! attention to them
a. Culture
b. *s#oused value
c. %rtifacts
d. Organizational culture
:. /his stage encom#asses all the learning that occurs before a new member $oins the organizations
a. -ocialization
b. /he PreFarrival stage
c. *ncounter stage
d. 3etamor#hosis stage
1;. It refers to the behavior #attern ado#ted b! a leader to influence the behavior of his subordinate
for attaining the organizational goal
a. 2eadershi#
b. /raits of leadershi#
c. 2eadershi# grid
d. 2eadershi# st!le
Part Two:
1. 5efine Informal grou#s.
. 'hat do !ou understand b! the term O*motionH8
&. 'rite a note on O9einforcement theor!H.
,. *=#lain the terms O%ttitudes and EaluesH.
Case let 1
3Ls. %BC 2td is a mediumFsized engineering com#an! #roducing a largeFrange of #roduct lines
according to customer re)uirements. It has earned a good re#utation as a )uic( and reliable su##lier to its
customers because of which its volume of business (e#t on increasing. "owever? over the #ast one !ear?
the 3anaging 5irector of the com#an! has been receiving customer com#laints due to dela!s in dis#atch
of #roducts and at times the com#an! has to #a! substantial #enalt! for not meeting the schedule in time.
/he 3anaging 5irector convened an urgent meeting of various functional managers to discuss the issue.
/he mar(eting manager )uestioned the arbitrar! manner of giving #riorit! to #roducts in manufacturing
line? causing dela!s in wanted #roducts and overFstoc(ing of #roducts which are not re)uired
immediatel!. Production Control 3anager com#lained that he does not have ade)uate staff to #lan and
control the #roduction functionR and whatever little #lanning he does? is generall! overloo(ed b! sho#
floor manager. -ho# floor managers com#lained of unrealistic #lanning? e=cessive machine brea(downs?
#ower failure? and shortage of materials for scheduled #roducts because of which it is im#ossible to stic(
to the schedule. 3aintenance manager sa!s that he does not get im#ortant s#ares re)uired for
e)ui#mentmaintenance
because of which he cannot re#air machines at a faster rate. Inventor! control manager sa!s
that on one hand the com#an! often accuses him of carr!ing too much stoc( and on other hand #eo#le are
grumbling over shortages. 0ed u# b! mutual mudFslinging? the 3anaging 5irector decided to a##oint
!ou? a bright management consultant with training in business management to suggest wa!s and means to
#ut his Ahouse in orderB.
Questions
1. "ow would !ou e=amine if there is an! merit in the remar(s of various functional managers8
. 'hat? in !our o#inion? could be the reasons for different 3anagerial thin(ing in this case8
&. "ow would !ou design a s!stem of getting correct information about $ob status to identif! dela!s )uic(l!8
,. 'hat would !ou suggest to #romote coFordinate interaction of various #eo#le to meet the scheduled dates8
Case let 2
9a$ender >umar was a #roduction wor(er at com#etent 3otors 2imited MC32G which made com#onents
and accessories for the automotive industr!. "e had wor(ed at C32 for almost seven !ears as a welder?
along with fifteen other men in the #lant. %ll had received training in welding both on the $ob and through
com#an! s#onsored e=ternal #rogrammes. /he! had friendl! relations and got along ver! well with one
another. /he! #la!ed Eolle!ball in the #la!ground regularl! before retiring to the )uarters allotted b! the
com#an!. /he! wor( together in the com#an! canteen? cutting Jo(es on each other and ma(ing fun of
ever!one who dared to ste# into their #rivac! during lunch hour. 3ost of the fellows had been there for
some length of time? e=ce#t for two men who had $oined the ran(s onl! two months bac(. 9a$ender was
generall! considered to be the leader of the grou#? so it was no sur#rise that when the foreman of the new
was transferred and his $ob was #osted? 9a$ender a##lied for the $ob and got it.
/here were onl! four other a##licants for the $ob? two from mechanical section and two from outside?
when there was a formal announcement of the a##ointment on a 0rida! afternoon? ever!one in the grou#
congratulated 9a$ender. /he! literall! carried him on their shoulders? and bought him snac(s and
celebrated. On 3onda! morning? 9a$ender $oined dut! as 0oreman. It was com#an! #ractice for all
foremen to wear blue $ac(et and a white shirt. *ach manHs coat had his name badge sewn onto the left
side #oc(et. /he com#an! had given two #airs to 9a$ender. "e was #roud to wear the coat to wor( on
3onda!. Peo#le who saw him from a distance went u# to him and admired the new blue coat. /here was
a lot of (idding around calling 9a$ender as O"eroH? O9a$a BabuH and OOfficerH etc. One of the gu!s went
bac( to his loc(er and returned with a long brush and acted as though he were removing dust #articles on
the new coat. %fter about five minutes of horse#la!? all the men went bac( to wor(. 9a$ender went to his
office to familiarize himself with the new $ob and environment. %t noon? all the men bro(e for 2unch and
went to the canteen to eat and ta(e a brea( as usual. 9a$ender was bus! when the! left but followed after
them a few minutes later. "e bought the food cou#on? too( the snac(s and tea and turned to face the o#en
canteen. On the leftFside corner of the room was his old wor( grou#R on the rightFhand side of the canteen
sat the other entire foreman in the #lantVall in their smart blue coats.
%t that #oint of time? silence descended on the canteen. Both grou#s loo(ed at 9a$ender an=iousl!?
waiting to see which grou# he would choose to eat with.
Questions
1. 'hom do !ou thin( 9a$ender will eat with8 'h!8
. If !ou were one of the other foremen? what could !ou do to ma(e 9a$inderHs transition easier8
1. % large unit manufacturing electrical goods which has been (nown for its liberal #ersonnel
#olicies and fringe benefits is facing the #roblem of low #roductivit! and high absenteeism. "ow
should the management im#rove the organizational climate8
. /he leader is e=#ected to #la! man! roles < therefore he must be )ualified to guide others to
organizational achievement. On the basis of this e=#lain the leadershi# s(ills < leadershi# traits.
Principles an) Practice o Mana"ement
Multiple Choices:
1. % #lan is a tra# laid to ca#ture the ________.
a. 0uture
b. Past
c. Polic!
d. Procedure
. It is the function of em#lo!ing suitable #erson for the enter#rise
a. Organizing
b. -taffing
c. 5irecting
d. Controlling
&. ___________ means A grou# of activities < em#lo!ees into de#artmentsB
a. Orientation
b. -tandardization
c. Process
d. 5e#artmentation
,. /his theor! states that authorit! is the #ower that is acce#ted b! others
a. %cce#tance theor!
b. Com#etence theor!
c. 0ormal authorit! theor!
d. Informal authorit! theor!
.. It means dis#ersal of decisionFma(ing #ower to the lower levels of the organization
a. 5ecentralization
b. Centralization
c. 5is#ersion
d. 5elegation
*=amination Pa#er -emester I: Princi#les and Practice of 3anagement
IIB3 Institute of Business 3anagement
1. /his chart is the basic document of the organizational structure
a. 0unctional chart
b. Posts chart
c. 3aster chart
d. 5e#artmental chart
6. Communication which flow from the su#eriors to subordinates with the hel# of scalar
chain is (nown as
a. Informal communication
b. 5ownward communication
c. C#ward communication
d. Oral communication
7. Needs for belongingness? friendshi#? love? affection? attention < social acce#tance are
a. Ph!siological needs
b. -afet! needs
c. *go needs
d. -ocial needs
:. % management function which ensures A$obs to be filled with the right #eo#le? with the
right (nowledge? s(ill < attitudeB
a. -taffing defined
b. Job anal!sis
c. 3an#ower #lanning
d. 9ecruitment
1;. It is a #rocess that enables a #erson to sort out issues and reach to a decisions affecting
their life
a. -election
b. 9aining
c. 9eward
d. Counseling
Part Two:
1. 5ifferentiate between O%dministrationH and O3anagementH.
. 'hat were the common drawbac(s in classical and Neo classical theories of management8
&. 'rite a short note on A2ine Organization.B
,. 'rite a short note on O%cce#tance theor!H.
Case let 1
3r. Eincent? the 3anager of a large su#ermar(et? was ta(ing a management course in the
evening #rogramme at the local college. /he Professor had given an interesting but disturbing
lecture the #revious night on the various a##roaches to management. Eincent had alwa!s thought
that management involved $ust #lanning? organizing and controlling. Now this Professor was
sa!ing that management could also be thought of as )uantitative models? s!stems theor! and
anal!sis? and even something called contingenc! relationshi#s. Eincent had alwa!s considered
himself a good manager? and his record with the su#ermar(et chain had #roved it. "e thought of
himself? AI have never used o#erations research models? thought of m! store as an o#en s!stem?
or develo#ed or utilized an! contingenc! relationshi#. B! doing a little #lanning ahead?
organizing the store? and ma(ing some things got done? I have been a successful manager. /hat
other stuff $ust does not ma(e sense. %ll the #rofessor was tr!ing to do was com#licate things. I
guess I will have to (now it for the test? but I am stic(ing with m! old #lan? organize and control
a##roach to managing m! store.B
Questions
1. Criticall! anal!ze 3r. EincentHs reasoning.
. If !ou were the #rofessor and !ou (new what was going through EincentHs mind? what would !ou
sa! to Eincent8
Case let 2
/he 9egional %dministration Office of a com#an! was hastil! set u#. Eictor 5HCuhna a !oung e=ecutive
was directl! recruited to ta(e charge of 5ata Processing Cell of this office. /he data #rocessing was to
hel# the administrative office in #lanning and monitoring. /he officer cadre of the administrative office
was a mi= of directl! recruited officers and #romotee officers M#romotion from within the organizationG.
0emales dominated the $unior clerical cadre. /his cadre was not formall! trained. /he administrative
office had decided to give these fresh recruits onFtheF$ob training because when results were not u#to the
e=#ectations blame was brought on the 5ata Processing Cell. Eictor 5HCuhna realized that the
administrative office was heading for trouble. "e (new that his tas( would not be eas! and that he had
been selected because of his e=#erience? bac(ground and abilities. "e also realized that certain functional
as#ects of the administrative office were not clearl! understood b! various functionaries? and s!stems and
#rocedures were blindl! and randoml! followed. 0eedbac( was random? scant! and controversial? and
5ata Processing Cell had to verif! ever! item of feedbac(. 5ela!s were inevitable. 5HCuhna sought the
#ermission of senior management to conduct a seminar on communication and feedbac( of which he was
an e=#ert. /he #ermission was grudgingl! given b! the senior management. *ver!one a##reciated the
seminar. 0ollowing the first seminar? 5HCuhna conducted a one wee( training course for the clerical
*=amination Pa#er -emester I: Princi#les and Practice of 3anagement
IIB3 Institute of Business 3anagement
cadre? es#eciall! for the $unior? freshl! recruited cler(s. %mongst other to#ics? 5HCuhna laid em#hasis on
filing s!stem? information trac(ing? communication? and feedbac(. /his hel#ed reorient attitudes to some
e=tent. But the female cler(s #referred to ignore the theme and widel! circulated the belief that 5HCuhna
was an u#start and a show off. 'ithin a short time? considerable friction had been generated in the
administrative office 'hile directl! recruited officers su##orted 5HCuhnaHs initiative and the s#ecialist
officers admired him? senior management became cautious and uncomfortable. /he $unior #romotee
officers were #re$udiced against him. /he grand finale followed swiftl!. 5HCuhna ha##ened to get
anno!ed with a female cler(. 5uring the absence of her officer? who was on sic( leave and had not been
substituted b! another officer? she began submitting nil returns. 5HCuhna too( #ains to e=#lain to her that
for certain to#ics a nil feedbac( was not tenable. /he current status had to be re#ortedV the stage at
which the matter was #ending? what had been done? and what would be done about it8 /he lad! re#orted
that it was none of his business to tell her this. "e should tal( to her officer when the officer re#orts bac(
from leave. 5HCuhna said he would? but in the meanwhile she should #resent the correct #icture. 'hen
5HCuhna called for the files? she refused to #art with them. 5HCuhna fired her and re#orted the situation
to the Chief 9egional 3anager. /he other ladies were u# in the arms against 5HCuhna. /he lad! also
com#lained to higher management that 5HCuhna had made #asses at her. Other ladies su##orted her
com#laint. -he also com#lained that 5HCuhna had no business to scold her. 5HCuhna countered that had
there been a male cler( in her #lace he would have scolded him too. 'hen females en$o!ed e)ual rights
with males? 5HCuhna felt he must remain im#artial. Nevertheless? 5HCuhna was transferred to another
#lace. /he transfer to another #lace? rather than to another de#artment in same #lace? was #articularl!
humiliating to him. % shoc(ed and disillusioned 5HCuhna )uit the enter#rise.
Questions
1. 5iagnose the #roblem and enumerate the reasons for the failure of 5HCuhna8
. 'hat could 5HCuhna have done to avoid the situation in which he found himself8
• 5etailed information should form the #art of !our answer M'ord limit ;;F.; wordsG.
1. 'hat is /raining8 *=#lain the different methods of training8
. *=#lain 5ecisionF3a(ing #rocess of an organization8
%inancial Mana"ement
Part one:
Multiple choices:
1. /he a##roach focused mainl! on the financial #roblems of cor#orate enter#rise
a. Ignored nonFcor#orate enter#rise
b. Ignored wor(ing ca#ital financing
c. *=ternal a##roach
d. Ignored routine #roblems
. /hese are those shares? which can be redeemed or re#aid to the holders after a la#se of the
sti#ulated #eriod
a. Cumulative #reference shares
b. NonFcumulative #reference shares
c. 9edeemable #reference shares
d. Per#etual shares
&. /his t!#e of ris( arise from changes in environmental regulations? zoning re)uirements? fees?
licenses and most fre)uentl! ta=es
a. Political ris(
b. 5omestic ris(
c. International ris(
d. Industr! ris(
,. It is the cost of ca#ital that is e=#ected to raise funds to finance a ca#ital budget or investment
#ro#osal
a. 0uture cost
b. -#ecific cost
c. -#ot cost
d. Boo( cost
.. /his conce#t is hel#ful in formulating a sound < economical ca#ital structure for a firm
a. 0inancial #erformance a##raisal
b. Investment evaluation
c. 5esigning o#timal cor#orate ca#ital structure
d. None
1. It is the minimum re)uired rate of return needed to $ustif! the use of ca#ital
a. 0rom investors
b. 0irms #oint
c. Ca#ital e=#enditure #oint
d. Cost of ca#ital
6. It arises when there is a conflict of interest among owners? debenture holders and the management
a. -easonal variation
b. 5egree of com#etition
c. Industr! life c!cle
d. %genc! costs
7. -ome guidelines on shares < debentures issued b! the government that are ver! im#ortant for the
constitution of the ca#ital structure are
a. 2egal re)uirement
b. Pur#ose of finance
c. Period of finance
d. 9e)uirement of investors
:. It is that #ortion of an investments total ris( that results from change in the financial integrit! of
the investment
a. BullF bear mar(et ris(
b. 5efault ris(
c. International ris(
d. 2i)uidit! ris(
1;. _____________ measure the s!stematic ris( of a securit! that cannot be avoided through
diversification
a. Beta
b. 4amma
c. Probabilit! distribution
d. %l#ha
Part Two:
1& 'hat is %nnuit! (ind of cash flow8
2& 'hat do understand b! Portfolio ris(8
'& 'hat do !ou understand b! O2oan %mortizationH8
(& 'hat is the 5ifference between NPE and I998
Case let 1
/his case #rovides the o##ortunit! to match financing alternatives with the needs of different com#anies.
It allows the reader to demonstrate a familiarit! with different t!#es of securities. 4eorge /homas was
finishing some wee(end re#orts on a 0rida! afternoon in the downtown office of 'ishart and %ssociates?
an investmentFban(ing firm. 3eenda? a #artner in the firm? had not been in the New Dor( office since
3onda!. "e was on a tri# through Penns!lvania? visiting five #otential clients? who were considering the
flotation of securities with the assistance of 'ishart and %ssociates. 3eenda had called the office on
'ednesda! and told 4eorgePs secretar! that he would cable his recommendations on 0rida! afternoon.
4eorge was waiting for the cable. 4eorge (new that 3eenda would be recommending different t!#es of
securities for each of the five clients to meet their individual needs. "e also (new 3eenda wanted him to
call each of the clients to consider the recommendations over the wee(end. 4eorge was #re#ared to ma(e
these calls as soon as the cable arrived. %t ,:;; #.m. a secretar! handed 4eorge the following telegram.
4eorge /homas? 'ishart and %ssociates -/OP /a(ing advantage of offer to go s(iing in Poconos -/OP
9ecommendations as follows: M1G common stoc(? MG #referred stoc(? M&G debt with warrants? M,G
convertible bonds? M.G callable debentures -/OP. -ee !ou 'ednesda! -/OP 3eenda. %s 4eorge #ic(ed
u# the #hone to ma(e the first call? he suddenl! realized that the #otential clients were not matched with
the investment alternatives. In 3eendaPs office? 4eorge found folders on each of the five firms see(ing
financing. In the front of each folder were some handwritten notes that 3eenda had made on 3onda!
before he left. 4eorge read each of the notes in turn. %P/? Inc needs N7 million now and N, million in
four !ears. Pac(aging firm with high growth rate in triFstate area. Common stoc( trades over the counter.
-toc( is de#ressed but should rise in !ear to 17 months. 'illing to acce#t an! t!#e of securit!. 4ood
management. *=#ects moderate growth. New machiner! should increase #rofits substantiall!. 9ecentl!
retired N6 million in debt. "as virtuall! no debt remaining e=ce#t shortFterm obligations.
San)or) Enterprises
Needs N11 million. Crust! management. -toc( #rice de#ressed but e=#ected to im#rove. *=cellent growth
and #rofits forecast in the ne=t two !ear. 2ow debtFe)uit! ratio? as the firm has record of retiring debt
#rior to maturit!. 9etains bul( of earnings and #a!s low dividends. 3anagement not interested in
surrendering voting control to outsiders. 3one! to be used to finance machiner! for #lumbing su##lies.
Sharma Brothers&* +nc&
Needs N; million to e=#and cabinet and woodwor(ing business. -tarted as famil! business but now has
1;; em#lo!ees? N.; million in sales? and is traded over the counter. -ee(s additional shareholder but not
willing to stoc( at discount. Cannot raise more than N1 million with straight debt. 0air management.
4ood growth #ros#ects. Eer! good earnings. -hould s#ar( investorPs interest. Ban(s could be willing to
lend mone! for longFterm needs.
Sacheetee Ener", S,stems
/he firm is well res#ected b! liberal investing communit! near Boston area. -ound growth com#an!.
-toc( selling for N11 #er share. 3anagement would li(e to sell common stoc( at N1 or more willing to
Examínatíon Paper Semester I: Fínancíaí Management
IIBM Instítute of Busíness Management
use debt to raise N 7 million? but this is second choice. 0inancing gimmic(s and chance to turn )uic(
#rofit on investment would a##eal to those li(el! to invest in this com#an!.
!an-a., +n)ustr,
Needs N. million. 3anufactures boat canvas covers and needs funds to e=#and o#erations. Needs longterm
mone!. Closel! held ownershi# reluctant surrender control. Cannot issue debt without #ermission of
bondholders and 0irst National Ban( of Philadel#hia. 9elativel! low debtFe)uit! ratio. 9elativel! high
#rofits. 4ood #ros#ects for growth -trong management with minor wea(nesses in sales and #romotion
areas. %s 4eorge was loo(ing over the folders? 3eendaPs secretar! entered the office. 4eorge said? Q5id
3eenda leave an! other material here on 3onda! e=ce#t for these notes8B -he res#onded? QNo? thatPs it?
but I thin( those notes should be useful. 3eenda called earl! this morning and said that he verified the
facts in the folders. "e also said that he learned nothing new on the tri# and he sort of indicated that? he
had wasted his wee(? e=ce#t of course? that he was invited to go s(iing at the com#an! lodge u# thereQ.
4eorge #ondered over the situation. "e could alwa!s wait until ne=t wee(? when he could be sure that he
had the right recommendations and some of the considerations that outlined each clientPs needs and
situation. If he could determine which firm matched each recommendation? he could still call the firms b!
1:;; P.3. and meet the original deadline. 4eorge decided to return to his office and match each firm with
the a##ro#riate financing.
Question:
1. 'hich t!#e of financing is a##ro#riate to each firm8
. 'hat t!#es of securities must be issued b! a firm which is on the growing stage in order to meet
the financial re)uirements8
Case let 2
/his case has been framed in order to test the s(ills in evaluating a credit re)uest and reaching a correct
decision. Perluence International is large manufacturer of #etroleum and rubberFbased #roducts used in a
variet! of commercial a##lications in the fields of trans#ortation? electronics? and heav! manufacturing.
In the northwestern Cnited -tates? man! of the Perluence #roducts are mar(eted b! a wholl!Fowned
subsidiar!? Ba$a$ *lectronics Com#an!. O#erating from a head)uarters and warehouse facilit! in -an
%ntonio? -trand *lectronics has :.; em#lo!ees and handles a volume of N7. million in sales annuall!.
%bout N1 million of the sales re#resents items manufactured b! Perluence. 4u#ta is the credit manager at
Ba$a$ electronics. "e su#ervises five em#lo!ees who handle credit a##lication and collections on ,?1;;
accounts. /he accounts range in size from N1; to N7.?;;;. /he firm sells on varied terms? with L1;? net
&; mostl!. -ales fluctuate seasonall! and the average collection #eriod tends to run ,; da!s. BadFdebt
losses are less than ;.1 #er cent of sales. 4u#ta is evaluating a credit a##lication from Booth Plastics? Inc.?
a wholesale su##l! dealer serving the oil industr!. /he com#an! was founded in 1:66 b! Nec( %. Booth
and has grown steadil! since that time. Ba$a$ *lectronics is not selling an! #roducts to Booth Plastics and
had no #revious contact with Nec( Booth. Ba$a$ *lectronics #urchased goods from Perluence
International under the same terms and conditions as Perluence used when it sold to inde#endent
customers. %lthough Ba$a$ *lectronics generall! followed Perluence in setting its #rices? the subsidiar!
o#erated inde#endentl! and could ad$ust #rice levels to meet its own mar(eting strategies. /he PerluencePs
costFaccounting de#artment estimated a , #er cent mar(u# as the average for items sold to Pucca
*lectronics. Ba$a$ *lectronics? in turn? resold the items to !ield a 16 #er cent mar(u#. It a##eared that
these #ercentages would hold on an! sales to Booth Plastics. Ba$a$ *lectronics incurred outFof #oc(et
e=#enses that were not considered in calculating the 16 #er cent mar(u# on its items. 0or e=am#le? the
contact with Booth Plastics had been made b! James? the salesman who handled the 4laveston area.
Examínatíon Paper Semester I: Fínancíaí Management
IIBM Instítute of Busíness Management
James would receive a & #er cent commission on all sales made Booth Plastics? a commission that would
be #aid whether or not the receivable was collected. James would? of course? be willing to assist in
collecting an! accounts that he had sold. In addition to the sales commission? the com#an! would incur
variable costs as a result of handling the merchandise for the new account. %s a general guideline?
warehousing and other administrative variable costs would run & #er cent sales. 4u#ta "olmstead
a##roached all credit decisions in basicall! the same manner. 0irst of all? he considered the #otential
#rofit from the account. James had estimated firstF!ear sales to Booth Plastics of N1.?;;;. %ssuming that
Nec( Booth too( the? & #er cent discount. Ba$a$ *lectronics would realize a 16 #er cent mar(u# on these
sales since the average mar(u# was calculated on the basis of the customer ta(ing the discount. If Nec(
Booth did not ta(e the discount? the mar(u# would be slightl! higher? as would the cost of financing the
receivable for the additional #eriod of time. In addition to the #otential #rofit from the account? 4u#ta was
concerned about his com#an!Ps e=#osure. "e (new that wea( customers could become bad debts at an!
time and therefore? re)uired a vigorous collection effort whenever their accounts were overdue. "is
de#artment #robabl! s#ent three times as much mone! and effort managing a marginal account as
com#ared to a strong account. "e also figured that overdue and uncollected funds had to be financed b!
Ba$a$ *lectronics at a rate of 17 #er cent. %ll in all? slow F#a!ing or marginal accounts were ver! costl! to
Ba$a$ *lectronics. 'ith these considerations in mind? 4u#ta began to review the credit a##lication for
Booth Plastics.
Question:
1. "ow would !ou $udge the #otential #rofit of Ba$a$ *lectronics on the first !ear of sales to Booth
Plastics and give !our views to increase the #rofit.
. -uggestion regarding Credit limit. -hould it be a##roved or not? what should be the amount of
credit limit that electronics give to Booth Plastics.
1. "one! 'ell Com#an! is contem#lating to liberalize its collection effort. Its #resent sales are 9s.
1; la(h? its average collection #eriod is &; da!s? its e=#ected variable cost to sales ratio is 7. #er
cent and its bad debt ratio is . #er cent. /he Com#an!Hs cost of ca#ital is 1; #er cent and ta= are
is ,; #er cent. "e #ro#osed liberalization in collection effort increase sales to 9s. 1 la(h
increases average collection #eriod b! 1. da!s? and increases the bad debt ratio to 6 #ercent.
5etermine the change in net #rofit.
. *=#lain the conce#t of wor(ing ca#ital. 'hat are the factors which influence the wor(ing ca#ital8
/uman !esource Mana"ement
Multiple choices:
1. It is a cultural attitude mar(ed b! the tendenc! to regard oneHs own culture as su#erior to others
a. 4eocentrism
b. Pol!centrism
c. *thnocentrism
d. *gocentrism
. It is the s!stemic stud! of $ob re)uirements < those factors that influence the #erformance of
those $ob re)uirements
a. Job anal!sis
b. Job rotation
c. Job circulation
d. Job descri#tion
&. /his %ct #rovides an assistance for minimum statutor! wages for scheduled em#lo!ment
a. Pa!ment of 'ages %ct? 1:&1
b. 3inimum 'ages %ct? 1:,7
c. 0actories %ct? 1:,7
d. Pa!ment of 4ratuit! act? 1:6
,. __________ is the actual #osting of an em#lo!ee to a s#ecific $ob
a. Induction
b. Placement
c. %ttrition
d. None
.. Broadening an individualHs (nowledge? s(ills < abilities for future res#onsibilities is (nown as
a. /raining
b. 5evelo#ment
c. *ducation
d. 3entoring
*=amination Pa#er -emester I: "uman 9esource 3anagement
IIBM Instítute of Busíness Management
1. Change that is designed and im#lemented in an orderl! and timel! fashion in antici#ation of
future events
a. Planned change
b. /echnolog! change
c. -tructural change
d. None
6. It is a #rocess for setting goals and monitoring #rogress towards achieving those goals
a. Performance a##raisal
b. Performance ga#
c. Performance factor
d. Performance management s!stem
7. % method which re)uires the rates to #rovide a sub$ective #erformance evaluation along a scale
from low to high
a. %ssessment centre
b. Chec(list
c. 9ating scale
d. 3onitoring
:. It is the sum of (nowledge? s(ills? attitudes? commitment? values and the li(ing of the #eo#le in an
organization
a. "uman resources
b. Personal management
c. "uman resource management
d. Productivit!
1;. % learning e=ercise re#resenting a realFlife situation where trainees com#ete with each other to
achieve s#ecific ob$ectives
a. *=ecutive develo#ment
b. 3anagement game
c. Programmed learning
d. Cnderstud!
Part Two:
1. *=#lain the im#ortance of Career Planning in industr!.
. 'rite the features of "93.
&. Briefl! e=#lain the conce#t of Performance %##raisal.
,. *=#lain OnFJob and Off Job /raining.
Case let 1
/rust them with (neeF$er( reactions?Q said Ei(ram >osh!? C*O? 5elta -oftware India? as he loo(ed at the
)uarterl! re#ort of /o# 2ine -ecurities? a wellF(nown e)uit! research firm. /he firm had announced a
downgrade of 5elta? a com#an! listed both on Indian bourses and the N%-5%K. /he reason8 QOne out
of ever! si= develo#ment engineers in the com#an! is li(el! to be benched during the remaining #art of
the !ear.Q /hree anal!sts from /o# 2ine had s#ent some time at 5elta three wee(s ago. >osh! and his
team had e=#lained how benching was no different from the #roblems of e=cess inventor!? idle time? and
sur#lus ca#acit! that firms in the manufacturing sector face on a regular basis? Q5elta has witnessed a
scorching #ace of &; #er cent growth during the last five !ears in a row?Q >osh! had said? Q'hat is
ha##ening is a corrective #hase.Q But? evidentl!? the anal!sts were unconvinced.
0h, Bench1
Clients suddenl! decide to cut bac( on I/ s#ends Pro$ect mi= gets s(ewed? affecting wor( allocation
*m#lo!ee #roductivit! is set to fall? creating slac( wor(ing conditions. "igh degree of $ob s#ecialization
leads to redundanc!
0hat are the options1
Kuic(l! cut costs in areas which are nonFcore loo( for learningHs from the manufacturing sector 0ocus on
alternative mar(ets li(e *uro#e and Ja#an 3ove into #roducts? where margins are better. Of course? the
/o# 2ine re#ort went on to cite several other Qsignals?Q as it said: the rate of annual hi(e in salaries at
5elta would come down to . #er cent Mfrom between ; and &; #er cent last !earGR the entr!Flevel inta(e
of engineers from cam#uses in June ;;1? would decline to . #er cent Munli(e the traditional &; #er cent
addition to man#ower ever! !earGR and earnings for the ne=t two !ears could di# b! between 1; and 1
#er cent. %nd the loftiest of them all: Q/he meltdown at Nasda) is unli(el! to reverse in the near future.Q
Q-ome of the signals are no doubt valid. %nd ominous?Q said >osh!? addressing his %F/eam? which had
assembled for the routine morning meeting. QBut? clearl!? ever!one is reading too much into this business
of benching. In fact? benching is one of the man! o#tions that our #rinci#als in the C- have been #ursuing
as #art of cutting costs right since -e#tember? ;;;. /he! are also e=#anding the share of offFshore $obs.
0ive of our #rinci#als have confirmed that the! would outsource more from 5elta in IndiaFwhich is li(el!
to hi(e their billings b! about &; #er cent. %t one level? this is an o##ortunit! for us. %t another? of
course? I am not sure if we should be $ubilant? because the! have as(ed for a .F&; #er cent cut in billing
rates. Our margins will ta(e a hit? unless we cut costs and im#rove #roductivit!.Q QProductivit! is clearl! a
matter of #riorit! now?Q said Eive( Earadan? EiceFPresident MO#erationsG. QIf !ou consider benching as a
nonFearning mode? we do have large #atches of it at 5elta. %s !ou are aware? it has not been eas! to
secure 6; #er cent utilization of our man#ower? even in normal times. I thin( we need to loo( at wh! we
have &; #er cent bench before e=amining how to turn it into an asset.Q Q/here are several reasons?Q
remar(ed %ch!ut Patwardhan? EiceFPresident M"9G. Q%nd a lot of it has to do with the nature of our
business? which is more #ro$ectFdriven than #roductFdriven. 'hen !ou are managing a number of
overseas and domestic #ro$ects simultaneousl!? as we do at 5elta? #eo#le tend to go on the bench. /he!
wait? as the! com#lete one #ro$ect? and are assigned the ne=t. /here are #roblems of coordination between
#ro$ects? related to the logistics of moving #eo#le and resources from one customer to another. In fact? I
am fineFtuning our monthl! man#ower utilization re#ort to #rovide a brea(u# of bench costs into
*=amination Pa#er -emester I: "uman 9esource 3anagement
IIBM Instítute of Busíness Management
s#ecificsFleave #eriod? training #rogrammes? travel time? buffers? acclimatization #eriod et al.Q QIt would
be worthwhile following the business model used b! C- #rinci#al /echno Inc?Q said %vee( 3ohant!?
5irector M0inanceG. Q/he com#an! has a #i#eline of #ro$ects? but it does not manage #ro$ect b! #ro$ect.
'hat it does is to slice each #ro$ect into what it calls PactivitiesP. 0or e=am#le? communication
networ(ingR user interface develo#mentR scheduling of #rocesses are activities common to all #ro$ects.
Peo#le move from one #ro$ect to another. It is somewhat li(e the %ctivit! Based Costing. It throws u# the
bench time straightawa!? which hel#s us control costs and revenue better.Q QI also thin( we should reduce
our de#endence on #ro$ects and move into #roducts?Q said Praveen >umar? 5irector M3ar(etingG. Q/hat is
where the o##ortunit! for brand building lies. In fact? now is the time to get our technolog! gu!s involved
in mar(eting. 3ultis(illing hel#s reduce the bench time.Q QBenching has an analog! in the manufacturing
sector?Q said 4irish -hahane? EiceFPresident M-ervicesG. Q'e could loo( for learningPs there. 3an! firms
have ado#ted JustFInF/ime MJI/G inventor! as #art of eliminating idle time. It would be worthwhile
e=#loring the #ossibilit! of JI/. But the real learning lies in standardization of wor(. It is lin(ed to what
3ohant! said about managing b! activities.Q Q%t a broader level? I see several other o##ortunities?Q said
>osh!? Q'e can fill in the s#ace vacated b! C- firms and move u# the value chain. But before we do so?
5elta should consolidate its #osition as the #remier outsourcing centre. -ince there are onl! two wa!s in
which we can generate revenueFsell e=#ertise or sell #roductsFwe should move towards a mi= of both.
/ieFu#s with global ma$ors will hel#. Now is the time to loo( be!ond the C- and stri(e alliances with
firms in *uro#eF and also Ja#anFas #art of develo#ing new #roducts for global mar(ets.Q
Questions
1. -hould benching be a matter of concern at 5elta8
. 'hat are the ris(s involved in moving from a #ro$ectFcentric mode to a mi= of #ro$ects and
#roducts8
Case let 2
/he conte=ts in which human resources are managed in toda!Ps organizations are constantl!? changing.
No longer do firms utilize one set of manufacturing #rocesses? em#lo! a homogeneous grou# of lo!al
em#lo!ees for long #eriods of time or develo# one set wa! of structuring how wor( is done and
su#ervisor! res#onsibilit! is assigned. Continuous changes in who organizations em#lo! and what these
em#lo!ees do re)uire "9 #ractices and s!stems that are well conceived and effectivel! im#lemented to
ensure high #erformance and continued success.
1. %utomated technologies nowada!s re)uire more technicall! trained em#lo!ees #ossessing multifarious
s(ills to re#air? ad$ust or im#rove e=isting #rocesses. /he firms canPt e=#ect these em#lo!ees M4en I
em#lo!ees? #ossessing su#erior technical (nowledge and s(ills? whose attitudes and #erce#tions toward
wor( are significantl! different from those of their #redecessor organizations: li(e greater self control?
less interest in $ob securit!R no e=#ectations of long term em#lo!mentR greater #artici#ation urge in wor(
activities? demanding o##ortunities for #ersonal growth and creativit!G to sta! on without attractive
com#ensation #ac(ages and novel reward schemes.
. /echnolog! driven com#anies are led b! #ro$ect teams? #ossessing diverse s(ills? e=#erience and
e=#ertise. 0le=ible and d!namic organizational structures are needed to ta(e care of the e=#ectations of
managers? technicians and anal!sts who combine their s(ills? e=#ertise and e=#erience to meet changing
customer needs and com#etitive #ressures.
&. Cost cutting efforts have led to the decimation of unwanted la!ers in organizational hierarch! in recent
times. /his? in turn? has brought in the #roblem of managing #lateau em#lo!ees whose careers seem to
have been hit b! the delivering #rocess. Organizations are? therefore? made to find alternative career #aths
for such em#lo!ees.
,. Both !oung and old wor(ers? these da!s? have values and attitudes that stress less lo!alt! to the
com#an! and more lo!alt! to oneself and onePs career than those shown b! em#lo!ees in the #ast?
Organizations? therefore? have to devise a##ro#riate "9 #olicies and strategies so as to #revent the flight
of talented em#lo!ees
Question
1. 5iscuss that technological brea(through has brought a radical changes in "93.
1. -everal t!#es of interviews are commonl! used de#ending on the nature < im#ortance of the
#osition to be filled within an organization. *=#lain the different t!#es of Interviews.
. *=#lain the legal #rovisions regarding safet! of wor(ers.
Examínatíon Paper Semester I: Marketíng Management
IIBM Instítute of Busíness Management
Mar3etin" Mana"ement
Multiple choices:
1. It is a conce#t where goods are #roduced without ta(ing into consideration the choices or tastes of
customers
a. 3ar(eting mi=
b. Production conce#t
c. 3ar(eting conce#t
d. 9elationshi# mar(eting
. It involves individuals who bu!s #roducts or services for #ersonal use and not for manufacture or
resale
a. *nvironment anal!sis
b. 3acro environment
c. 3icro environment
d. Consumer
&. It is the grou#s of #eo#le who interact formall! or informall! influencing each otherHs attitudes<
behavior
a. Consumer behavior
b. Culture
c. 9eference grou#s
d. Primar! grou#s
,. /he conce#t of the #roduct that #asses through various changes in its total life (nown as
a. Product life c!cle
b. 2ine stretching
c. Consumer ado#tion
d. Product
.. It refers to uni)ue set of brand associations that brand strategist as#ires to create or maintain
a. Branding
b. Pac(aging
c. Brand identit!
d. Brand image
Examínatíon Paper Semester I: Marketíng Management
IIBM Instítute of Busíness Management
1. It involves a #ricing strateg! that charges customers different #rices for the same #roduct or
service
a. Promotional #ricing
b. Price discrimination
c. Non #rice com#etition
d. None
6. It refers to an arrangement where another com#an! through its own mar(eting channel sells the
#roducts of one #roducers
a. *nd customer
b. 'holesaler
c. 9etailing
d. -trategic channel alliance
7. It involves facilit! consisting of the means < e)ui#ments necessar! for the movement of
#assengers of goods
a. 2ogistics
b. 'arehousing
c. /rans#ortation
d. None
:. /he advertising which is used to inform consumers about a new #roduct or feature < to build
#rimar! demands is (nown as
a. %dvertising
b. Informative advertising
c. Persuasive advertising
d. %dvertising strateg!
1;. %n art that #redicts the li(elihood of economic activit! on the basis of certain assum#tions
a. Com#ensation
b. -ales forecasting
c. -ales budgeting
d. -elling #olic!
Part Two:
1. 'rite a note on im#ortance of consumer behavior for a business firm8
. 5efine the term OPriceH.
&. 5istinguish between 3ar(eting Conce#t and -elling Conce#t8
,. 'hat are the new trends in advertisement8
.. Briefl! e=#lain the following :
aG -ocio Sculture environment
bG 3ar(eting environment interface.
Case let 1
%s( the com#an! to# brass what Oalmost thereH means. /he answer: a #remier Indian retail com#an! that
has come to be (nown as a s#ecialt! chain of a##arel and accessories. 'ith . #roduct categories under
one roof? -ho##ersH -to# has a lineFu# of &.; brands. -et u# and headed b! former Corona em#lo!ee? B.
-. Nagesh? -ho##ersH -to# is IndiaHs answer to -elfridges and Printem#s. %s it #roudl! announces? O'e
donHt sell? we hel# !ou bu!.H Bac( in 1::1? there was the )uestion of what to retail. -hould it be a
su#ermar(et or a de#artmental store8 *ven an electronics store was considered. 0inall!? common sense
and understanding won out. /he safest bet? for the allFmale team was to retail menHs wear. /he! (new the
male #s!che and felt that the! had discerning taste in menHs clothing. /he conce#t would be that of a
lifest!le store in a lu=urious s#ace? which would ma(e for a great sho##ing e=#erience. /he first
-ho##ersH -to# store too( sha#e in %ndheri? 3umbai? in October 1::1? with an investment of nearl! 9s.
; la(h. /he original conce#t that formed the basis of a successful mar(eting cam#aign for seven !ears is
here to sta!. %nd the result is an annual turnover of 9s. 11; crores and five stores? nine !ears later.
*ver!thing went right from the beginning? e=ce#t for one strange ha##ening. 3ore than 1; #er cent of the
customers who wal(ed into -ho##ersH -to# in 3umbai were women. /his gave rise to ideas. -oon? the
store set u# its womenHs section. 2ater? it e=#anded to include childrenHs wear and then? household
accessories. /he second store in Bangalore came in 1::.. /he store at "!derabad followed in 1::7 with
the largest area of 1;?;;; s). ft. /he New 5elhi and Jai#ur stores were inaugurated in 1:::. %ll this
while? the #roduct range (e#t increasing to suit customer needs. /he most recent e=#eriment was home
furnishings. -ecure in the (nowledge that organised retailing in global brands was still in its infanc! in
India? -ho##ersH -to# laid the ground rules which the com#etition followed. /he biggest advantage for
-ho##ersH -to# is that it (nows how the Indian consumer thin(s and feels while sho##ing. Des? feeling S
for in India? sho##ing remains an outing. %nd how does it com#are itself to foreign stores8 'hile it is not
modeled on an! one foreign retailer? the Obasic constructH is ta(en from the e=#erience of a number of
successfull! managed retail com#anies. It has leveraged e=#ertise for a critical com#onent li(e technolog!
from all over the world? going as far as hiring e=#atriates from 2ittlewoods and using stateFofFtheFart *9P
models. -ho##ersH -to# went a ste# further b! even integrating its financial s!stem with the *9P model.
*=#ertise was im#orted wherever it felt that e=#ertise available inFhouse was inade)uate. But the store felt
there was one acute #roblem. % shortage of the most im#ortant resource of them all was trained humans.
-ince Indian business institutes did not have #rofessional courses in retail management? #eo#le were hired
from different wal(s of life and the training #rogramme was internalized. B! 1::,? the senior e=ecutives
at -ho##ersH -to# were ta(ing lectures at management institutes in 3umbai. /he Narsee 3on$ee Institute
of 3anagement -tudies MN3I3-G even restructured its course to include retail management as a sub$ect.
4etting the com#an! access to the latest global retail trends and e=change of information with business
greats was an e=clusive membershi# to the Intercontinental 4rou# of 5e#artment -tores MI45-G. It allows
membershi# b! invitation to one com#an! from a countr! and -ho##ersH -to# rubs shoulders with : of
the hottest names in retailing S -elfridges from the C>? C.>. /ang from -inga#ore? 2amc! Plaza from
5ubai and the li(e. 'ith logistics I in #lace? the accent moved to the customer. -ho##ersH -to# conducted
surve!s with O94F3%94 and Indian 3ar(et 9esearch Bureau MI39BG and undertoo( inFhouse
wardrobe audits. /he studies confirmed what it alread! (new. /he Indian customer is still evolving and is
ver! different from? sa!? a *uro#ean customer? who (nows e=actl! what he wants to #urchase? wal(s u#
to a shelf? #ic(s u# the merchandise? #a!s and wal(s out. In India? customers li(e to touch and feel the
Examínatíon Paper Semester I: Marketíng Management
IIBM Instítute of Busíness Management
merchandise? and scout for o#tions. %lso? the ma$orit! of Indian sho##ers still #refer to #a! in cash. -o?
transactions must be in cash as against #lastic mone! used the world over. %dditionall!? the Indian
customer li(es being served S whether it is food? or otherwise. /he com#an!Hs customer #rofile includes
#eo#le who want the same sales#erson each time the! came to the store to wal( them through the sho#
floors and assist in the #urchase. Others came with families? (ids and maids in tow and e=#ected to be
suitabl! attended to. -till others wanted someone to carr! the bags. -o? the sho#s have selfFhel# counters?
with an assistant at hand for )ueries or hel#. /he inFhouse wardrobe audit also hel#ed with another facet
of the business. It enabled -ho##ersH -to# to wor( out which brands to stoc(? based on customer
#references. In fact? the C-P of -ho##ersH -to# lies in $udiciousl! selected global brands? dis#la!ed
alongside an inFhouse range of affordable designer wear. /he lineFu# includes 2eviHs? 2ouis Phili##e?
%llen -oll!? 'alt 5isne!? 9a! Ban and 9eebo(? besides inFhouse labels -/OP and I. Brand selection is
the same across the five locations? though the #roduct mi= ma! be somewhat cit!Fbased to accommodate
cuts and st!les in womenHs wear? as well as allowing for seasonal variations Mwinter in 5elhi? for instance?
is a case in #ointG. -toc(ing of brands is based on #o#ular demand S recentl!? Provogue? 3/E -t!le? and
Benetton have been added. InFhouse labels are available at com#etitive #rices and target the valueFformone!
customer and ma(e u# around 1 #er cent of -ho##ersH -to#Hs business. -ometimes inFhouse
brands #lug the #rice ga# in certain #roduct categories. /o cash in on this? the com#an! has big #lans for
its inFhouse brands: from reFbranding to re#ositioning? to homing in on #roduct categories where e=isting
brands are not strong. Com#etition between brands is not an issue? because being a trading house? all
brands get e)ual em#hasis. /he inFhouse brand sho##er is one who #laces immense trust in the com#an!
and the )ualit! of its goods and returns for re#eat bu!s. %nd the com#an! re#osed its faith in regular
customers b! including them in a conce#t called the 0irst CitizenHs Club M0CCG. 'ith 1;?;;; odd
members? 0CC customers account for 1; #er cent of entries and for &, #er cent of the turnover. It was the
sheer a##eal of the e=#erience that (e#t #ulling these #eo#le bac(. Not one to let such an o##ortunit!
#ass? the com#an! ran a successful ad cam#aign Mthat tal(s about $ust this factorG in #rint for more than
eight !ears. /he theme is still the same. In 1:::? a /E s#ot? which li(ed the sho##ing e=#erience to the
slowing down of oneHs internal cloc( and the beaut! of the whole e=#erience? was aired. 3ore recentl!?
ads that s#ell out the storeHs benefits Min a highl! obli)ue mannerG are being aired.
/he cam#aign is based on entries entered in the EisitorsH Boo(. None of the ads has a visual or te=t S or
an! heav! handedl! direct reference to the store or the merchandise. /he ads onl! show sho##ers having
the time of their lives in calm and serene locales? or elements that ma(e sho##ing at the store a #leasure S
)uite the #erfect getawa! for a cosmo#olitan sho##er aged between . and ,.. /he brief to the agenc!?
Contract? ensured that brand recall came in terms of the sho##ing e=#erience? not the #roduct. %nd it has
wor(ed wonders. EalueFaddition at each store also comes in the form of s#ecial care with car #ar(s?
#ower bac(u#? customer #aging? alteration service and giftFwra##ing. /o to# it all? cafes and coffee bars
ma(e sure that the customer does not ste# out of the store. In "!derabad? it has even created a 0ood
Court. %lthough the food counter was not #lanned? it came about as there was e=tra s#ace of 16?;;; s). ft.
Carr!ing the #erfect e=#erience to the sho# floor is an attem#t to stac( goods in vast o#en s#aces neatl!.
*ver! store has a generic structure? though regional customer variances are accounted for. *ach store is
on lease? and this is clearl! -ho##ersH -to#Hs most e=#ensive resource #ro#osition S renting huge s#aces
in #rime #ro#erties across metros? so far totaling 1;?;;; s). ft of retail s#ace. 4etting that s#ace was eas!
enough for -ho##ersH -to#? since its #romoter is the 3umbaiFbased 9ahe$a 4rou#? which also owns 1
#er cent of the share ca#ital.
Questions
1. 'hat are the significant factors that have led to the success of -ho##ersH -to#8
. 5raw the t!#ical #rofileMsG of -ho##ersH -to# customer segments.
&. "ow are Indian customers visiting -ho##ersH -to# an! different from customers of develo#ed
western countries8
,. "ow should -ho##ersH -to# develo# its demand forecasts8
Case let 2
/he rise of #ersonal com#uters in the mid 1:7;s s#urred interest in com#uter games. /his caused a crash
in home Eideo game mar(et. Interest in Eideo games was re(indled when a number of different
com#anies develo#ed hardware consoles that #rovided gra#hics su#erior to the ca#abilities of com#uter
games. B! 1::;? the Nintendo *ntertainment -!stem dominated the #roduct categor!. -ega sur#assed
Nintendo when it introduced its 4enesis -!stem. B! 1::&? -ega commanded almost 1; #er cent of Eideo
game mar(et and was one of the most recognized brand names among the children. -egaHs success was
short lived. In 1::.? -aturn Ma division of 4eneral 3otorsG launched a new &Fbit s!stem. /he #roduct
was a miserable failure for a number of reasons. -ega was the #rimar! software develo#er for -aturn and
it did not su##ort efforts b! outside game develo#ers to design com#atible games. In addition? -egaHs
games were often delivered )uite late to retailers. 0inall!? the #rice of the -aturn s!stem was greater than
other com#arable game consoles. /his situation of -aturnHs misste# benefited Nintendo and -on! greatl!.
-on!Hs Pla! -tation was unveiled in 1::, and was available in 6; million homes worldwide b! the end of
1:::. Its AO#en designB encouraged the efforts of outside develo#ers? resulting in almost &?;;; different
games that were com#atible with the Pla!-tation. It too featured &Fbit gra#hics that a##ealed to older
audience. %s a result? at one time? more than &; #er cent of Pla!-tation owners were over &; !ears old.
Nintendo 1, was introduced in 1::1 and had e!eF#o##ing 1,Fbit gra#hics and entered in more than 7
million homes b! 1:::. Its #rimar! users were between the age of 1 and 1& as a result of NintendoHs
efforts to limit the amount of violent and adultForiented material featured on games that can be #la!ed on
its s!stems. Because the com#an! e=ercised considerable control over software develo#ment? Nintendo
1, had onl! oneFtenth the number of com#atible games as -on!Hs Pla!-tation did. B! 1:::? -on! had
ca#tured .1 #er cent of the video game mar(et? followed b! Nintendo with , #er cent. -egaHs share had
fallen to a low of 1@. "ence? -ega had two o#tions? either to concede defeat or introduce an innovative
video machine that would bring in huge sales. %nd -ega had to do so before either Nintendo or -on!
could bring their ne=tFgeneration console to mar(et. /he -ega 5reamcast arrived in stores in -e#tember
1::: with an initial #rice tag of N1::. %n=ious gamers #laced &;;?;;; advance orders? and initial sales
were )uite encouraging. % total of 1.. million 5reamcast machines were bought within the first four
months? and initial reviews were #ositive. /he 17Fbit s!stem was ca#able of generating &F5 visuals? and
,; different games were available within three months of 5ream castHs introduction. B! the end of the
!ear? -ega had ca#tured a mar(et share to 1. #er cent. But the 5reamcast could not sustain its
momentum. %lthough its game ca#abilities were im#ressive? the s!stem did not deliver all the
functionalit! -ega had #romised. % .1> modem Mwhich used a home #hone lineG and a 'eb browser
were meant to allow access to the Internet so that gamers could #la! each other online? surf the 'eb? and
visit the 5reamcast Networ( for #roduct information and #la!ing ti#s. Cnfortunatel!? these features either
were not immediatel! available or were disa##ointing in their e=ecution. -ega was not the onl! one in
having the strateg! of adding functionalit! be!ond games. -on! and Nintendo followed the same
a##roach for their machines introduced in 1:::. Both NintendoHs Ne#tune and -on!Hs Pla!-tation
MP-G were built on a 5E5 #latform and featured a 17Fbit #rocessor. %nal!sts a##lauded the move to
5E5 because it is less e=#ensive to #roduce and allows more storage than C5s. It also gives bu!ers the
abilit! to use the machine as C5 music #la!er and 5E5 movie #la!er. %s -on! mar(eting director
commented? A/he full entertainment offering from Pla! -tation definitel! a##eals to a much broader
audience. I have friends in their &;s who bought it not onl! because itHs a gaming s!stem for their (ids?
but also a 5E5 for them.B In addition? Pla!-tation is able to #la! games develo#ed for its earlier model
that was C5Fbased. /his gives the P- an enormous advantage in the number of com#atible game titles
Examínatíon Paper Semester I: Marketíng Management
IIBM Instítute of Busíness Management
that were immediatel! available to gamers. 0urther enhancing the P-Hs a##eal is its highFs#eed modem
and allows the userHs eas! access to the Internet through digital cable as well as over tele#hone lines. /his
gives -on! the abilit! to distribute movies? music? and games directl! to P- consoles. A'e are
#ositioning this as an allFround entertainment #la!er?B commented >en >utaragi? the head of -on!
Com#uter *ntertainment. "owever? some #ros#ective customers were #ut off b! the consoleHs initial
#rice of N&1;. -hortl! after the introduction of Ne#tune? Nintendo changed its strategies and announced
the im#ending release of its newest game console? /he 4ameCube. "owever? unli(e the Ne#tune? the
4ameCube would not run on a 5E5 #latform and also would not initiall! offer an! online ca#abilities. It
would be more attractivel! #riced at N1::. % mar(eting vice #resident for Nintendo e=#lained the
com#an!Hs change in direction? A'e are the onl! com#etitor whose business is video games. 'e want to
create the best gaming s!stem.B Nintendo also made the 4ameCube friendl! for outside develo#ers and
started adding games that included s#orts titles to attract an older audience. Best (nown for its e=tra
ordinar! successes with games aimed at the !ounger set? such as 5on(e! >ong? -u#er 3ario Bros? and
Po(emon? Nintendo sought to attract older users? es#eciall! because the average video game #la!er is 7.
Douthful Nintendo users were #articularl! #leased to hear that the! could use their handheld 4ame Bo!
%dvance s!stems as controllers for the 4ameCube. Nintendo scrambled to ensure there would be an
ade)uate su##l! of 4ame Cubes on the date in November ;;1? when the! were scheduled to be available
to customers. It also budgeted N,.; million to mar(et its new #roduct? as it antici#ated stiff com#etition
during the holida! sho##ing season. 'ith more than ; million Pla!-tation sold worldwide? the
4ameCube as a new entr! in the video game mar(et would ma(e the battle for mar(et share even more
intense. 0or almost a decade? the video game industr! had onl! -ega? Nintendo? and -on!R $ust three
#la!ers. Because of strong brand lo!alt! and high #roduct develo#ment costs? newcomers faced a
daunting tas( in entering this race and being com#etitive. In November ;;1? 3icrosoft began selling its
new Ibo=? $ust three da!s before the 4ameCube made its debut. -ome observers felt the Ibo= was aimed
to rival Pla!-tation ? which has similar functions that rival 3icrosoftHs 'eb /E s!stem and even some
lower level PCs. 2i(e the -on!Hs Pla!-tation ? Ibo= was also built using a 5E5 #latform? but it used an
Intel #rocessor in its construction. /his o#en design allowed 3icrosoft to develo# the Ibo= in $ust two
!ears? and gave develo#ers the o#tion of using standard PC tool for creating com#atible games. In
addition? 3icrosoft also sought the advice of successful game develo#ers and even incor#orated some of
their feedbac( into the design of the console and its controllers. %s a result of develo#ersH efforts?
3icrosoft had about ; games read! when the Ibo= became available. B! contrast? the 4ameCube had
onl! eight games available. 3icrosoft online strateg! was another feature that differentiated of the Ibo=
from the 4ameCube. 'hereas Nintendo had no immediate #lans for 'ebFbased #la!? the Ibo= came
e)ui##ed with an *thernet #ort for broadband access to Internet. 3icrosoft also announced its own 'ebbased
networ( on which gamers can come together for online headFto head #la! and for organised online
matches and tournaments. -ubscribers to this service were to #a! a small monthl! fee and must have
highFs#eed access to the Internet. /his is a #otential drawbac( considering that a ver! low #ercentage of
households world over currentl! have broadband connections. B! contrast -on! #romoted an o#en
networ(? which allows software develo#ers to manage their own games? including associated fees charged
to users. "owever? interested #la!ers must #urchase a networ( ada#ter for an additional N&:.::. %lthough
game com#anies are not (een on the #ros#ect of submitting to the control of a 3icrosoftFcontrolled
networ(? it would re)uire a significant investment for them to manage their own service on the -on!based
networ(. Initiall! the #rice of 3icrosoftHs Ibo= was N::. Prior to the introduction of Ibo=? in a
com#etitive move -on! dro##ed the #rice of the Pla!-tation to N::. NintendoHs 4ameCube alread!
en$o!ed a significant #rice advantage? as it was selling for N1;; less than either 3icrosoft or -on!
#roducts. 4amers eagerl! sna##ed u# the new consoles and made ;;1 the best !ear ever for video game
sales. 0or the first time? consumers s#ent N:., billion on video game e)ui#ment? which was more than
the! did at the bo= office. B! the end of ;;1 holida! season? 1.1 million Pla!-tation consoles had been
sold in North %merica alone? followed b! 1.. million Ibo= units and 1. million 4ame Cubes. 'hat
ensued was an all out #rice war. /his started when -on! decided to #ut even more #ressure on the
3icrosoftHs Ibo= b! cutting the Pla!-tation #rice to N1::. 3icrosoft )uic(l! matched that #rice.
Examínatíon Paper Semester I: Marketíng Management
IIBM Instítute of Busíness Management
'anting to maintain its lowF#rice status? Nintendo in turn res#onded b! reducing the #rice of its the
4ameCube b! N.;? to N1,:. B! mid ;;? 3icrosoft Ibo= had sold between &.. and , million units
worldwide. "owever? Nintendo had sur#assed Ibo= sales b! selling ,.. million 4ame Cubes. -on! had
the benefit of health! head start? and had shi##ed & million Pla!-tation s. "owever? seven !ears after
the introduction of original Pla!-tation? it was being sold in retail outlets for
a mere N,:. It had a significant lead in terms of numbers of units in homes around the world with a ,& #er
cent share. Nintendo 1, was second with &; #er cent? followed b! -on! Pla!-tation with 1, #er cent.
/he Ibo= and 4ameCube each claimed about & #er cent of the mar(et? with -ega 5reamcast com#rising
the last and least mar(et share of ,.6 #er cent. -ega? once an industr! leader? announced in ;;1 that it
had decided to sto# #roducing the 5reamcast and other video game hardware com#onents. /he com#an!
said it would develo# games for its com#etitorsH consoles. /hus -ega slashed the #rice of the 5reamcast
to $ust N:: in an effort to li)uidate its #iled u# inventor! of more than million units and immediatel!
began develo#ing 11 new games for the Ibo=? four for Pla!-tation ? and three for NintendoHs 4ame Bo!
%dvance. %s the #rices of video game consoles have dro##ed? consoles and games have become the
e)uivalent of razors and blades. /his means the consoles generate little if an! #rofit? but the games are a
highl! #rofitable #ro#osition. /he #rofit margins on games are highl! attractive? affected to some degree
b! whether the content is develo#ed b! the console ma(er Msuch as -on!G or b! an inde#endent game
#ublisher Msuch as *lectronic %rtsG. /hus? the com#etition to develo# a##ealing? or #erha#s even
addictive? games ma! be even more intense than the battle among #la!ers to #roduce the best console. In
#articular? Nintendo? -on!? and 3icrosoft want games that are e=clusive to their own s!stems. 'ith that
in mind? the! not onl! rel! on large inFhouse staffs that design games but the! also #a! added fees to
inde#endent #ublishers for e=clusive rights to new games. /he sales of video games in ;;1 rose to ,&
#er cent? com#ared to $ust , #er cent increase for com#uterFbased games. But com#uter game #la!ers are
believed to be a lo!al bunch? as the! see man! advantages in #la!ing games on their com#uters rather
than consoles. 0or one thing? the! have a big advantage of having access to a mouse and a (e!board that
allow them to #la! far more so#histicated games. In addition? the! have been utilizing the Internet for
!ears to receive game u#dates and modifications and to #la! each other over the 'eb. -on! and
3icrosoft are intent on ca#turing a #ortion of the online gaming o##ortunit!. *ven Nintendo has decided
to ma(e available a modem that will allow 4ameCube users to #la! online. %s #rices continue to fall and
technolog! becomes increasingl! more so#histicated? it remains to be seen whether these three com#anies
can (ee# their names on the industr!Hs list of Ahigh scorersB.
Questions
1. Considering the conce#t of #roduct life c!cle? where would !ou #ut video games in their life c!cle8
. -hould video game com#anies continue to alter their #roducts to include other functions? such as eFmail8
1. 'hat is meant b! sales #romotion8 5escribe briefl! the various methods of sales #romotional
tools used b! business organizations to boost the sales. *=#lain an! four methods of sales
#romotion8
. 'rite notes on the fowling :
aG *=#lain right to safet!.
bG 'hat is right to consumer #rotection8
#r"ani4ational Behavior
Multiple choices:
1. It is the degree to which a #erson identifies with a #articular organization and its goals? < wishes
to maintain membershi# in the organization
a. Job involvement
b. /erminal value
c. %ttitude
d. Ealue
. _________ means moving information from the hidden area to the o#en area
a. blind area
b. un(nown area
c. #ublic area
d. self disclosure
&. %n a##roach in which the goals of one #art! are in direct conflict with the goals of the other #art!
a. Negotiation
b. 5istributive bargaining
c. -tress
d. None
,. /he measure of a #ersonHs abilit! to o#erate within business organizations through social
communication < interactions
a. /ransactional anal!sis
b. Inter#ersonal s(ill
c. 2ife #osition
d. Johari window
.. 'here the source of #ower is in #ersonHs control over rewarding outcomes? that #ower is called
a. Coercive #ower
b. 9eferent #ower
c. 2egitimate #ower
d. 9eward #ower
*=amination Pa#er -emester I: Organizational Behaviour
IIB3 Institute of Business 3anagement
1. It means melting resistance to changeR the #eo#le who will be affected b! the change come to
acce#t the need for it
a. Organization
b. Cnfreezing
c. Changing
d. 9efreezing
6. /his training is also (nown as laborator! training? encounter grou#s < /Fgrou#s
a. -ensitivit!
b. -urve!
c. Process
d. /eam building
7. /he! are the things that come together to define a culture < reveal that the culture is about to
those who #a! attention to them
a. Culture
b. *s#oused value
c. %rtifacts
d. Organizational culture
:. /his stage encom#asses all the learning that occurs before a new member $oins the organizations
a. -ocialization
b. /he PreFarrival stage
c. *ncounter stage
d. 3etamor#hosis stage
1;. It refers to the behavior #attern ado#ted b! a leader to influence the behavior of his subordinate
for attaining the organizational goal
a. 2eadershi#
b. /raits of leadershi#
c. 2eadershi# grid
d. 2eadershi# st!le
Part Two:
1. 5efine Informal grou#s.
. 'hat do !ou understand b! the term O*motionH8
&. 'rite a note on O9einforcement theor!H.
,. *=#lain the terms O%ttitudes and EaluesH.
Case let 1
3Ls. %BC 2td is a mediumFsized engineering com#an! #roducing a largeFrange of #roduct lines
according to customer re)uirements. It has earned a good re#utation as a )uic( and reliable su##lier to its
customers because of which its volume of business (e#t on increasing. "owever? over the #ast one !ear?
the 3anaging 5irector of the com#an! has been receiving customer com#laints due to dela!s in dis#atch
of #roducts and at times the com#an! has to #a! substantial #enalt! for not meeting the schedule in time.
/he 3anaging 5irector convened an urgent meeting of various functional managers to discuss the issue.
/he mar(eting manager )uestioned the arbitrar! manner of giving #riorit! to #roducts in manufacturing
line? causing dela!s in wanted #roducts and overFstoc(ing of #roducts which are not re)uired
immediatel!. Production Control 3anager com#lained that he does not have ade)uate staff to #lan and
control the #roduction functionR and whatever little #lanning he does? is generall! overloo(ed b! sho#
floor manager. -ho# floor managers com#lained of unrealistic #lanning? e=cessive machine brea(downs?
#ower failure? and shortage of materials for scheduled #roducts because of which it is im#ossible to stic(
to the schedule. 3aintenance manager sa!s that he does not get im#ortant s#ares re)uired for
e)ui#mentmaintenance
because of which he cannot re#air machines at a faster rate. Inventor! control manager sa!s
that on one hand the com#an! often accuses him of carr!ing too much stoc( and on other hand #eo#le are
grumbling over shortages. 0ed u# b! mutual mudFslinging? the 3anaging 5irector decided to a##oint
!ou? a bright management consultant with training in business management to suggest wa!s and means to
#ut his Ahouse in orderB.
Questions
1. "ow would !ou e=amine if there is an! merit in the remar(s of various functional managers8
. 'hat? in !our o#inion? could be the reasons for different 3anagerial thin(ing in this case8
&. "ow would !ou design a s!stem of getting correct information about $ob status to identif! dela!s )uic(l!8
,. 'hat would !ou suggest to #romote coFordinate interaction of various #eo#le to meet the scheduled dates8
Case let 2
9a$ender >umar was a #roduction wor(er at com#etent 3otors 2imited MC32G which made com#onents
and accessories for the automotive industr!. "e had wor(ed at C32 for almost seven !ears as a welder?
along with fifteen other men in the #lant. %ll had received training in welding both on the $ob and through
com#an! s#onsored e=ternal #rogrammes. /he! had friendl! relations and got along ver! well with one
another. /he! #la!ed Eolle!ball in the #la!ground regularl! before retiring to the )uarters allotted b! the
com#an!. /he! wor( together in the com#an! canteen? cutting Jo(es on each other and ma(ing fun of
ever!one who dared to ste# into their #rivac! during lunch hour. 3ost of the fellows had been there for
some length of time? e=ce#t for two men who had $oined the ran(s onl! two months bac(. 9a$ender was
generall! considered to be the leader of the grou#? so it was no sur#rise that when the foreman of the new
was transferred and his $ob was #osted? 9a$ender a##lied for the $ob and got it.
/here were onl! four other a##licants for the $ob? two from mechanical section and two from outside?
when there was a formal announcement of the a##ointment on a 0rida! afternoon? ever!one in the grou#
congratulated 9a$ender. /he! literall! carried him on their shoulders? and bought him snac(s and
celebrated. On 3onda! morning? 9a$ender $oined dut! as 0oreman. It was com#an! #ractice for all
foremen to wear blue $ac(et and a white shirt. *ach manHs coat had his name badge sewn onto the left
side #oc(et. /he com#an! had given two #airs to 9a$ender. "e was #roud to wear the coat to wor( on
3onda!. Peo#le who saw him from a distance went u# to him and admired the new blue coat. /here was
a lot of (idding around calling 9a$ender as O"eroH? O9a$a BabuH and OOfficerH etc. One of the gu!s went
bac( to his loc(er and returned with a long brush and acted as though he were removing dust #articles on
the new coat. %fter about five minutes of horse#la!? all the men went bac( to wor(. 9a$ender went to his
office to familiarize himself with the new $ob and environment. %t noon? all the men bro(e for 2unch and
went to the canteen to eat and ta(e a brea( as usual. 9a$ender was bus! when the! left but followed after
them a few minutes later. "e bought the food cou#on? too( the snac(s and tea and turned to face the o#en
canteen. On the leftFside corner of the room was his old wor( grou#R on the rightFhand side of the canteen
sat the other entire foreman in the #lantVall in their smart blue coats.
%t that #oint of time? silence descended on the canteen. Both grou#s loo(ed at 9a$ender an=iousl!?
waiting to see which grou# he would choose to eat with.
Questions
1. 'hom do !ou thin( 9a$ender will eat with8 'h!8
. If !ou were one of the other foremen? what could !ou do to ma(e 9a$inderHs transition easier8
1. % large unit manufacturing electrical goods which has been (nown for its liberal #ersonnel
#olicies and fringe benefits is facing the #roblem of low #roductivit! and high absenteeism. "ow
should the management im#rove the organizational climate8
. /he leader is e=#ected to #la! man! roles < therefore he must be )ualified to guide others to
organizational achievement. On the basis of this e=#lain the leadershi# s(ills < leadershi# traits.
Strate"ic Mana"ement
1. % #lan of action designed to achieve a #articular goal is:
a. /actic
b. -trateg!
c. 0inancial benefits
d. None of the above
. It is im#ortant to develo# mission statement for:
a. %llocating organizational resources
b. Provide useful criteria
c. Com#an! creed
d. Customer orientation
&. /he five forces model was develo#ed b! :
a. %irbus
b. >arin 2arsson
c. 3ichael *.Porter
d. Boeing
,. "ow man! elements are involve in develo#ing in an organizational strateg!:
a. -i=
b. /wo
c. 0our
d. Nine
.. /he three im#ortant ste#s in -'O/ anal!sis are:
a. Identification? Conclusion? /ranslation
b. O##ortunities? /hreats? -trengths
c. Peo#le? Cor#orate cultures? 2abour
d. Power? 9ole? /as(
1. 4* matri= consists of how man! cells8
a. Nine cells
b. -i= cells
c. *ight cells
d. /hree cells
6. 'hich of these is the t!#e of 4ames:
a. -imultaneous 4ames
b. -e)uential 4ames
c. 9e#eated 4ames
d. %ll of the above
7. -BC stands fora.
-im#le Basic Cnit
b. -trategic Basic Cnit
c. -trategic Business Cnit
d. -#eed Business Cnit
:. /he BC4 matri= is (nown as:
a. 4rowth share matri=
b. 5irectional #olic! matri=
c. 4* nineFcell matri=
d. -#ace matri=
1;. ______________ s#ecifies sales revenues and selling distribution and mar(eting costs.
a. 0inancial budget
b. -ales budget
c. O#erating budget
d. *=#enses budget
Part Two:
1& 'hat are the dimensions of -trategic management8
. Criticall! anal!ze the conce#t of BC4 3atri=.
&. 'hat is -'O/ anal!sis8
,. 'hat are the characteristics of -hortFterm Ob$ectives8
Case let 1
National Com#etitive %dvantage of I>*% 4rou#? a -wedish com#an! founded in 1:,& with its
head)uarters in 5enmar(? is a multinational o#erator of a chain of stores for home furnishing and
furniture. It is the worldHs largest retailer? which s#ecializes? in st!lish but ine=#ensive -candinavian
designed furniture. %t the end of ;;. the I>*% 4rou# of Com#anies had a total of 16. stores in &1
countries. In addition there are 1: I>*% stores owned and run b! franchisees? outside the I>*% store
around the world.
In -weden? nature and a home both #la! a big #art in #eo#leHs life. In fact one of the best wa!s to describe
the -wedish home furnishing st!le is to describe natureFfull of light and fresh air? !et restrained and
un#retentious.
/o match u# the artist Carl and >arin 2arsson combined classical influences with warmer -wedish fol(
st!les ./he! created a model of -wedish home furnishing design that toda! en$o!s worldFwide renown. In
the 1:.;s the st!les of modernism and functionalism develo#ed at the same time as -weden established a
societ! founded on social e)ualit! ./he I>*% #roduct range S/he I>*% #roduct rangeF modern but not
trend!? functional !et attractive? humanFcentered and child friendl! S carries on these various -wedish
home furnishing traditions.
/he I>*% Conce#t? li(e lots founder? was born in -amaland. /his is a #art of -outhern -weden where the
soil is thin and #oor. /he #eo#le are famous for wor(ing hard? living on small means and using their
heads to ma(e the best #ossible use of the limited resources the! have. /his wa! of doing things is at the
heart of the I>*% a##roach to (ee#ing #rices low.
I>*% was founded when -weden was fast becoming an e=am#le of the caring societ!? where rich and
#oor ali(e were well loo(ed after. /his is also a theme that fits well with the I>*% vision. In order to give
the man! #eo#le a better ever!da! life? I>*% as(s the customer to wor( as a #artner. /he #roduct range is
childFfriendl! and covers the need of the whole famil!? !oung and old. -o together we can a better
ever!da! life for ever!one.
In addition to wor(ing about around 1?7;; different su##liers across the world? I>*% #roduces man! of
its own #roducts through sawmills and factories in the I>*% industrial grou#? -wedwood.
-wedwood also has a dut! to transfer (nowledge to other su##liers? for e=am#le b! educating them in
issues such as efficienc!? )ualit! and environmental wor(.
-wedwood has &. industrial units in 11 countries.
*=amination Pa#er: -emester II
IIB3 Institute of Business 3anagement
Purchasing: I>*% has , /rading -ervice Offices M/-OHsG in && countries. Pro=imit! to their su##liers
is the (e! to rational? long term coo#eration. /hatHs wh! /-O coFwor(ers visit su##liers regularl! to
monitor #roduction? test new ideas? negotiate #rices and carr! out )ualit! audits and ins#ection.
5istribution: /he route from su##lier to customer must be as direct? costF effective and environmentall!
friendl! as #ossible. 0lat #ac(s are im#ortant as#ects of this wor eliminating wasted s#ace means we
can trans#ort and store goods more efficientl!. -ince efficient distribution #la!s a (e! role in the wor( of
creating the low #rice? goods routing and logistics are a focus for constant develo#ment.
/he business Idea: /he I>*% business idea is to offer a wide range of home furnishings with good design
and function at #rices so low that as man! #eo#le as #ossible will be able to afford them. %nd still have
man! leftW /he com#an! targets the customer who is loo(ing for value and is willing to do a little bit of
wor( serving themselves? trans#orting the items home and assembling the furniture for a better #rice. /he
t!#ical I>*% customer is !oung low to middle income famil!.
/he Com#etition %dvantage: /he com#etition advantage strateg! of I>*%Hs #roduct is reflected through
I>*%Hs success in the real industr!. It can be attributed to its vast e=#erience in the retail mar(et? #roduct
differentiation? and cost leadershi#.
I>*% Product 5ifferentiation: % wide #roduct range /he I>*% #roduct range is wide and versatile in
several wa!s. 0irst? itHs versatile in function. Because I>*% thin( customer? shouldnHt have to run from
one small s#ecialt! sho# to another to furnish their home? I>*% gather #lants? living room furnishings?
to!s ? fr!ing #ans? whole (itchens i.e.R ever!thing which in a functional wa! hel#s to build a home S in
one #lace ? at I>*% stores.
-econd? itHs wide in st!le. /he romantic at heart will find choices $ust as man! as the minimalist at I>*%.
But /here is onl! one thing I>*% donHt have? and that is? the farF out or the overFdecorated. /he! onl!
have what hel#s build a home that has room for good living.
/hird? b! being coordinated? the range is wide in function and st!le at the same time. No matter which
st!le !ou #refer? thereHs an armchair that goes with the boo(case that goes with the new e=tending table
that goes with the armchair. -o their range is wide in a variet! of wa!s.
Cost 2eadershi#: % wide range with good form and function is onl! half the stor!. %ffordabilit! has a #art
to #la! S the largest #art. % wide range with good form and function is onl! half the stor!. %ffordabilit!
has a #art to #la!F the largest #art. %nd the $o! of being able to own it without having to forsa(e
ever!thing else. %nd the customers hel#? too? b! choosing the furniture? getting it at the warehouse?
trans#orting it home and assembling it themselves ? to (ee# the #rice low.
Questions
1. 5o !ou thin( that I>*% has been successful to utilize PorterHs 0ive force anal!sis8
4ive reasons.
. 'here do !ou thin( can I>*% im#rove8
Case let 2
0or I/C 2td.? ;;6F;;7 continued to be !ear of )uiet growth. Just more launches in its relativel! new
segment of nonFcigarettes fast moving consumer goods? and solid growth. %s in the #ast few !ears? I/CHs
nonFcigarettes businesses continued to grow at a scorching #ace? accounting for a bigger share of overall
revenues. A/he nonFcigarette #ortfolio grew b! &6.1@ during ;;1F;;6 and accounted during that !ear
for ..&@ of the com#an!Hs net turnover.B %n I/C s#o(esman said. In fact? over the first three )uarters of
;;6F;7? I/CHs nonFcigarette 03C4 businesses have grown b! ,7@ on the same #eriod last !ear?
AIndicating that its #lans for increasing mar(et share and standing are succeeding.B
/he branded #ac(aged foods business continued to e=#and ra#idl!? with the focus on snac(s range Bingo.
/he biscuit categor! continued its growth momentum with the O-un feastH range of biscuits launching
OCoconutH and ONiceH variants and the addition of O -unfeast BenneEita 0la=seedH biscuits. %ashirwad atta
and (itchen ingredients retained their to# slots at the national level? with the s#ices categor! adding an
organic range. In the confectioner! categor! which grew b! &7@ in the third )uarter? I/C cited %C
Nielsen data it claims mar(et leader status in throat lozenges. Instant mi=es and #asta #owdered the sales
of its read! to eat foods under the (itchens of India and %ashirwad brands.
In 2ifest!le a##arel? I/C launched 3iss Pla!ers fashion wear for !oung women to com#liment its range
for men.
Overall? the biscuit categor! grew b! .7@ during the last )uarter? read! to eat foods under the (itchens of
India and %ashirwad brands b! 1&@ and the lifest!le business b! 1@.
0or the Industr!? the most significant initiative to watch the I/C fora! into #remium #ersonal care
#roducts with its 0iama 5i 'ills range of sham#oos ? conditioners? shower gels? and soa#s. In the #o#ular
segment? I/C has launched a range of soa#s and sham#oos under the brand name -u#eria.
9avi Naware? Chief e=ecutive of I/CHs food business was )uoted recentl! as sa!ing that the business will
ma(e a #ositive contribution to I/CHs bottom line in the ne=t two to three !ears.
In hotels? I/CHs 0ortune Par( brand was ma(ing the news during the !ear? with a ra#id rollout of first
class business hotels.
In the agriFbusiness segment? the eFchou#al networ( is tr!ing out a #ilot in retailing fresh fruits and
vegetables. /he eFchou#als have alread! s#ecialized in feeding I/C high )ualit! wheat and #otato? among
other commodities grown b! farmers with hel# from eFchou#al.
Questions:
K1. 5o !ou thin( the #rogress of I/C 2td. is realistic8
K. %fter anal!zing the above case? do !ou thin( ever! com#an! should aim at cost leadershi# with high
)ualit! #roduct8
1. 'hat are the basic #rinci#les of Organizational structure8 'hat are the t!#es of Organizational structures8
. /hough BC4 matri= can be ver! hel#ful in forcing decisions in managing a #ortfolio of #roducts? it can be em#lo!ed
as a sole men of determining strategies for a #ortfolio of the #roduct. 5o !ou agree with this statement or not8 'h! or
wh! not8
Enterprise !esource Plannin"
1. *nter#rise 9esource Planning is
a. Com#uter -!stem
b. 3anufacturing organization
c. 3ethod of effective #lanning of all the resources in an organization
d. None of the above
. *nter#rise 9esource Panning vendors are those #eo#le
a. 'ho are e=#erts in administration and management of #ro$ects
b. 'ho have develo#ed the *9P #ac(ages
c. 'ho uses the *9P s!stem
d. None of the above
&. Interviewing and cost $ustification is tool and techni)ue of
a. 5esign ste# of *9P
b. Im#lementation ste# of *9P
c. 9e)uirement anal!sis of *9P
d. Planning ste# of *9P
,. -u##ort reFengineering #rocesses to fit the software s!stems best #ractice is a##roach of
a. 9eFengineering a##roach
b. Customizing a##roach
c. 9ational a##roach
d. None of the above
.. Process of trac(ing customer contacts and #roviding the customer with a #rice )uote is
a. Inventor! sourcing
b. -ales order #rocessing
c. PreFsales
d. None of the above
1. /he difficult! in creating an audit trial of transactions when multi#le transactions use multi#le
database is associated with
a. Product #rofitabilit! subFs!stem
b. 0inished goods inventor! subFs!stem
c. 3anagement re#orting subFs!stem
d. Creating an audit trial subFs!stem
6. 5ifferences occur between standard costs and actual costs is #roblem associated with
a. %ccounting
b. Production
c. Purchasing $ 3aterials 3anagement
d. None of the above
7. 39P in *nter#rise resource #lanning stands for
a. 3a=imum retail #rice
b. 3aterial re)uirement #lanning
c. 3anagement re)uirement #lanning
d. None of the above
:. Process of #roviding status of #urchase order comes in a categor! of
a. Purchase order followFu#
b. -ource determination
c. 5etermine re)uirement
d. Invoice verification
1;. 9esource failure occurs when
a. Peo#le clashes
b. Inabilit! to communicate with the s!stem user
c. Poor s#ecification of re)uirements
d. Conflicts of #eo#le? time and #ro$ect sco#e due to insufficient #ersonnel
Part Two:
1. 'hat are the advantages of the reFengineering method of im#lementing *9P8
. 'hat are the benefits re#orted from im#lementing *9P8
&. 'rite a short note on ACredit 3anagementB8
,. 5efine 3aterial 9e)uirements Planning8
Caselet 1
/ech >nowledge is a startFu# founded in 1::6 b! 9obert /h!er. /he com#an! is a distributer of
#resentation technologies? including com#uter based #ro$ection s!stems? video e)ui#ment? and
dis#la! technologies. /he firm has . em#lo!ees and does N. million in sales. It is growing ra#idl!.
/he owner? 9obert /h!er? would li(e to netsource the bac(Foffice functions of the firm because the
com#an! does not have an internal I/ ca#abilit!. /he a##lications to be netsourced would include
sales and distribution? financial accounting? and inventor! management.
/ech>nowledge would li(e to source -%P or another *9P vendor via a hosting arrangement. It
does not e=#ect to do much customization? and it does not have an! legac! s!stems.
1. 'hat factors should it use to evaluate each of these #otential hosts8
. 'hat controls should be in #lace to monitor the hosting arrangement8
Caselet 2
I/3 is a com#an! s#ecializing in networ( im#lementation and management. It #rovides networ(ing
services to midFsized com#anies? which do not have an internal networ(ing anal!st or I/ manager.
/hese organizations include real estate com#anies? law offices? medical #ractices? architectural L
engineering firms? construction com#anies? business services #roviders? countr! clubs? communit!
organizations? and churches.
I/3 uses a legac! accounting s!stem to handle its financial accounting and financial
management functions. It has added on a billing #ac(age for client services. /he ne=t ste# is to
obtain a C93 ca#abilit! to manage information about current and #ros#ective customers more
effectivel!.
Dou have been assigned to identif! #otential sources for a netFsourcing arrangement with an *9P
vendor? which #rovides C93 ca#abilities.
1. Identif! #otential sources of software8
. 5etermine five criteria !ou will recommend be used to evaluate each of alternative #roviders8
1. *=#lain in brief -ales and 3ar(eting 3odules in *9P -!stem8
. 'hat are the different develo#ment #rocess in *9P s!stems and write a detailed note on it8
Material Mana"ement
1. -eason Inde= X
a. XPeriod average demand $ deseasonalized demand
b. Xdeseasonalized demand $ #eriod average demand
c. XPeriod average demand $ average demand for all #eriods
d. X average demand for all #eriods $ #eriod average demand
. Po(eF!o(e was first introduce b!
a. *dger -chein of %merica
b. 2awrence 5. 3iles of C.-.%
c. -higeo -hingo of Ja#an
d. None of the above
&. Ctilization is the consolidation of several units into large units? called
a. Cnits loads
b. Cnit s!stem
c. Cnit wait
d. None of the above
,. 3ean %bsolute 5eviation
a. X sum of forecast error L number of observations
b. X algebraic sum of forecast errors $ number of observations
c. X sum of absolute deviations $ number of observations
d. None of the above
.. "ow man! variations of networ( used
a. One
b. /hree
c. /wo
d. None of the above
Examínatíon Paper
IIBM Instítute of Busíness Management 2
1. "ousing starts and gasoline consum#tion are called
a. *conomic indicators
b. Nonleading indicator
c. 2eading indicator
d. None of the above
6. /he ca#abilit! of manufacturing to #roduce goods and services is called
a. Ca#acit!
b. Priorit!
c. -trateg!
d. Production
7. %PIC- stands for
a. /he %merican Pro#ert! and Investment Control -ociet!
b. /he %merican Production and Inventor! Control -ociet!
c. /he %merica Product and Inventor! Control -ociet!
d. None of the above
:. /he bill #rovides a list of the #arts needed to ma(e or assemble a #roduct is
a. Planning
b. 3anufacturing
c. Product definition
d. None of the above
1;. 'hich file contains a record for each #art manufactured
a. /he routing file
b. /he #roduct structure file
c. Item master file
d. 'or( center master file
Part Two:
1. 'rite a note on A*9PB M*nter#rise 9esource PlanningG.
. 'hat do !ou understand b! OO#eration OverloadingH8
&. 'hat is A/wo SBin -!stemB.
,. *=#lain the AJust in timeB #hiloso#h!.
1. Calculate the available to #romise M%/PG using the following data. /here are 1;; units on hand.
'ee( 1 & , . 1
Customer Orders 6; 6; ; ,; 1;
3P- 1;; 1;; 1;;
%/P
. 4iven the following data? can an order for &; more units deliver! in wee( . be acce#ted8 If not?
what do !ou suggest can be done8
'ee( 1 & ,
0orecast 7; 7; 7; 6;
Customer Orders 1;; :; .; ,;
Pro$ected %vailable
Balance
1,;
3P-
&. 4iven the following #arents and com#onents? construct a #roduct tree. 0igures in #arentheses
show the )uantities #er item. "ow man! 4s are needed to ma(e one %8
Parent % B C *
Com#onent BMG *MG 4MG 4M,G
CM,G 0M1G 0M&G
5M,G "MG
,. %n order for 1;; of a #roduct is #rocessed on o#erations % and o#erations B. the setu# time on %
is .; minutes? and the run time #er #iece is : minutes. /he setu# time on B is &; minutes? and the
run time is 1 minutes #er #iece. It ta(es ; minutes to move a lot between % and B. since this is a
rush order? it is given to# #riorit! M#residentHs edictG and is run as soon as it arrives at either
wor(station.
It is decided to overla# the two o#erations and to s#lit the lot of 1;; into two lots of 1; and ,;.
'hen the first lot is finished on o#eration %? it is moved to o#eration B where it is set u# and run.
3eanwhile? o#eration % com#letes the balance of the 1;; units M,;G and sends the units over to
o#eration B. /hese ,; units should arrive as o#eration B is com#leting the first batch of 1;R thus?
o#eration B can continue without interru#tion until all 1;; are com#leted.
a. Calculate the total manufacturing lead time for o#eration % and for B without overla##ing.
b. Calculate the manufacturing lead time if the o#erations are overla##ed. "ow much time is
saved8
1. -u##ose a manufacturer ma(es wagons com#osed of a bo= bod!? a handle assembl!? and two
wheel assemblies. 5emand for the wagons is .;; a wee(. /he wheel assembl! ca#acit! is 1;;
sets a wee(? the handle assembl! ca#acit! is ,.; a wee(? and final assembl! can #roduce ..;
wagons a wee(.
a. 'hat is the ca#acit! of the factor!8
b. 'hat limits the through#ut of the factor!8
c. "ow man! wheel assemblies should be made each wee(8
d. 'hat is the utilization of the wheel assembl! o#eration8
e. 'hat ha##ens if the wheel assembl! utilization is increased to 1;;8
. If the annual cost of goods sold is N1 million and the average inventor! is N.. million:
a. 'hat is the inventor! turns ratio8
b. 'hat would be the reduction in average inventor! if? through better materials management?
inventor! turns were increased to 1; times #er !ear8
c. If the cost of carr!ing inventor! is ;@ of the average inventor!? what is the annual savings8
&. -u##ose management stated that it could tolerate onl! one stoc( out #er !ear for a s#ecific item.
0or this #articular item? the annual demand is .?;;; units? it is ordered in )uantities of 1;;? and
the standard deviation of demand during the lead time is 1;; units. /he lead time is one wee(.
Calculate:
a. Number of orders #er !ear.
b. -ervice level.
c. -afet! stoc(.
d. Order #oint.
,. 5eliver! of goods from a su##lier is in transit for ten da!s. If the annual demand is ,;; units?
what is the average annual inventor! in transit8
Pro)uction an) #peration Mana"ement
Multiple choices:
1. If the number of restrictions on sources be OaH and the number of restrictions on destinations be
ObH then with the use of Oste##ing stone #rocedureH? the number of Oused cellsH will be
a. aYbY1
b. aYbY
c. aFbF1
d. aYbF1
. Ealue of smoothing coefficient OZH lies
a. Between 1 and [
b. Between ; and 1
c. Between F1 and 1
d. Between 1 and
&. 0orecasting error is
a. /he difference between forecasted demand and actual demand
b. /he ratio of forecasted demand and actual demand
c. /he difference between the standard forecast demand and the evaluated forecast demand
d. 9atio of standard forecast demand and the evaluated forecast demand
,. 0or forecasting the anal!zers #lot the demand data on a time scale? stud! the #lot and then loo(
for the consistent #atterns. Now what does the high noise mean to these #atterns
a. 3an! of the #oint lie awa! from the #attern
b. 3ost of the #oints lie close to the #attern
c. %ll the #oints lie on the #attern
d. None
.. Pa!bac( #eriod is
a. /he length of time after which the #roduction starts
b. /he length of time after which the selling starts
c. /he length of time re)uired to recover the investment
d. /he length of time for which firm bears re#lacement of the good.
Semester II Examínatíon Papers
IIBM Instítute of Busíness Management
1. -alvage value is the income from
a. -elling an asset
b. Bu!ing an asset
c. Bargaining in selling
d. Price raised stoc(
6. On total factor basis OProductivit!H is given b! =L!? where O!H is
a. 2abor Y Ca#ital Y3aterials
b. 2abor Y Ca#ital Y 3aterials Y *nerg!
c. Ca#ital
d. Ca#ital Y 3aterials
7. *conomic efficienc! is given b!
a. In#ut Lout#ut
b. In#ut L1;;
c. MOut#utFin#utGLin#ut
d. Out#ut Lin#ut
:. /his im#lies an effective management that ensures an organizationHs longFterm commitment to
the continuous im#rovement of )ualit!.
a. Kualit! management
b. -trategic management
c. /otal )ualit! management
d. O#erations management
1;. /his techni)ues for im#roving #roductivit! involves anal!zing the o#erations of the #roduct or
service? estimate the value of each o#eration? and modif!ing MorG im#roving that o#eration so that
the cost is lowered.
a. Ealue engineering
b. /imeFevent networ(
c. 'or( sim#lifications
d. Kualit! circles
Part Two:
1. 'hat are the different t!#es of models in #roduction and o#eration management8
. 5efine O5e#reciationH.
&. 'hat do !ou understand b! OBiasH8
,. 'hat are O2earning curvesH8
Caselet 1
C#MP256 B2C7G!#U58
/he Bronson Insurance 4rou# was originall! founded in 1:;; in %u=vasse? 3issouri? b! James Bronson.
/he Bronson 4rou# owns a variet! of com#anies that underwrite #ersonal and commercial insurance
#olicies. %nnual sales of the Bronson 4rou# are N1;; million. In recent !ears? the com#an! has suffered
o#erating losses. In 1::;? the com#an! was heavil! invested in com#uter hardware and software. One of
the #roblems the Bronson 4rou# faced Mas well as man! insurance com#aniesG was a conflict between
established manual #rocedures and the relativel! recent Mwithin the #ast ; !earsG introduction of
com#uter e)ui#ment. /his conflict was illustrated b! the fact that much information was ca#tured on
com#uter but #a#er files were still (e#t for #ractical and legal reasons.
%+9E C9E!7S
/he file de#artment em#lo!ed ; file cler(s who #ulled files from stac(s? refilled used files? and delivered
files to various de#artments including commercial lines? #ersonal lines? and claims. Once a file cler(
received the file. Cler(s delivered files to underwriters on an hourl! basis throughout the da!. /he
average file cler( was #aid N7?&;; #er !ear. One s#ecial file cler( was used full time to search for
re)uested files that another file cler( had not been able to find in the e=#ected #lace. It was estimated that
,; #ercent of the re)uested files were these Ano hitB files re)uiring a search. Often these Ano hitB files
were eventuall! found stac(ed in the re)uesterHs office. /he #rimar! AcustomersB of the file cler(s were
underwriters and claims attorne!s.
U58E!0!+T+5G
Com#an! management and o#erations anal!sts were consistentl! told that the greatest #roblem in the
com#an! was the inabilit! of file cler(s to su##l! files in a s#eed! fashion. /he entire com#an! from to#
to bottom viewed the #roductivit! and effectiveness of the de#artment as unacce#table. %n underwriter
used ;F.; files #er da!. Because of their distrust of the files de#artment? underwriters tended to hoard
often used files. % count b! o#erations anal!sts found that each underwriter (e#t from 1;;F;; files in his
or her office at an! one time. %n underwriter would re)uest a file b! com#uter and wor( on other
business until the file was received. Benson em#lo!ed . underwriters.
M252GEME5T +5%#!M2T+#5 S6STEM
C##er management was dee#l! concerned about this #roblem. /he 3I- de#artment had suggested using
video dis(s as a #ossible solution. % video dis( s!stem was found that would be sufficient for the
Semester II Examínatíon Papers
IIBM Instítute of Busíness Management
com#anies needs at a cost of about N1 million. It was estimated that the s!stem would ta(e two !ears to
install and ma(e com#atible with e=isting information s!stems. %nother? less attractive was using
microfilm. % microfilm s!stem would re)uire underwriters to go to a single (e!board to re)uest #a#er
co#ies of files. /he cost of a microfilm s!stem was N. million.
1. 'hat do !ou recommend8 -hould the com#an! im#lement one of the new technologies8 'h! or
wh! not8
. %n o#erations anal!st suggested that com#an! em#lo!ees shared a Adum# on the cler(sB
mentalit!. *=#lain.
Caselet 2
"arrison /. 'en( III is ,&? married? and has two children? ages 1; and 1,. "e has a masterHs degree
in education and teachers $unior high school music in a small town in Ohio. "arrisonHs father #assed
awa! two months ago? leaving his onl! child an unusual business o##ortunit!. %ccording to his
fatherHs will? "arrison has 1 months to become active in the famil! foodFcatering business? >areF
0ull >atering? Inc.? or it will be sold to two (e! em#lo!ees for a reasonable and fair #rice. If
"arrison becomes involved? the two em#lo!ees have the o#tion to #urchase a significant? but less
than ma$orit!? interest in the firm. "arrisonHs onl! involvement with this business? which his
grandfather established? was as an hourl! em#lo!ee during high school and college summers. "e is
confident that he could learn and #erha#s en$o! the mar(eting side of the business? and that he could
retain the longFtime head of accountingLfinance. But he would never reall! en$o! da!FtoFda!
o#erations. In fact? he doesnHt understand what o#erations management reall! involves. In 1::1
>areF0ull >atering? Inc. had N&.6. million in sales in central Ohio. Net #rofit after ta=es was N
1;.?;;;? the eleventh consecutive !ear of #rofitable o#erations and the seventeenth in the last ;
!ears. /here are 1; em#lo!ees in this laborFintense business. Institutional contracts account for
over 6; #ercent of sales and include #artial food services for three colleges? si= commercial
establishmentsG #rimaril! manufacturing #lants and ban(sG? two long Fterm care facilities? and five
grade schools. -ome customer location em#lo!s a #ermanent o#erations managerR others are served
from the main (itchens of >areF0ull >atering. "arrison believes that if he becomes active in the
business? one of the two (e! em#lo!ees? the vice #resident of o#erations? will leave the
firm."arrison has decided to com#lete the final two months of this school !ear and then s#end the
summer around >areF0ull >atering S as well as institutions with their own food services S to assess
whether he wants to become involved in the business. "e is #articularl! interested in finding out as
much as #ossible about o#erations. "arrison believes he owes it to his wife and children to fairl!
evaluate this o##ortunit!.
1. Pre#are a wor(sheet of o#erations activities that "arrison should in)uire about this summer.
. If !ou were "arrison? what would !ou do8 'h!8
1. Productivit! is an im#ortant tool for mangers as it hel#s them to trac( #rogress toward the more
efficient use of resources in #roducing goods and services. *lucidate.
. In additional to o#erations research? what are the other tools and techni)ues used b! organizations
to im#rove #roductivit!8
Pro:ect Mana"ement
3ulti#le Choices: /otal 3ar(s: 1;;
1. % ________________ is a tem#orar! endeavor underta(en to create a uni)ue #roduct? service? or
result.
aG Program
bG Process
cG Pro$ect
dG Portfolio
. 'hich of the following is not a #otential advantage of using good #ro$ect management8
aG -horter develo#ment times
bG "igher wor(er morale
cG 2ower cost of ca#ital
dG "igher #rofit margins
&. 'hich of the following is not an attribute of a #ro$ect8
aG Pro$ects are uni)ue
bG Pro$ects are develo#ed using #rogressive elaboration
cG Pro$ects have a #rimar! customer or s#onsor
dG Pro$ects involve little uncertaint!
,. 'hich of the following is not #art of the tri#le constraint of #ro$ect management8
aG 3eeting sco#e goals
bG 3eeting time goals
cG 3eeting communications goals
dG 3eeting cost goals
.. /he first stage of an! #ro$ect is
aG Pro#osal
bG Conce#tualization
cG Im#lementation
dG 3anagement
1. __________________ is the a##lication of (nowledge? s(ills? tools and techni)ues to #ro$ect
activities to meet #ro$ect re)uirements.
aG Pro$ect management
bG Program management
cG Pro$ect #ortfolio management
dG 9e)uirements management
6. Pro$ect #ortfolio management addresses ____________________ goals of an organization? while
#ro$ect management addresses _________________ goals.
aG -trategic? tactical
bG /actical? strategic
cG Internal? e=ternal
dG *=ternal? internal
7. -everal a##lication develo#ment #ro$ects done for the same functional grou# might best be
managed as #art of a
aG Portfolio
bG Program
cG Investment
dG Collaborative
:. 'hich of the following is not one of the to# ten s(ills or com#etencies of an effective #ro$ect
manager8
aG Peo#le s(ills
bG 2eadershi#
cG Integrit!
dG /echnical s(ills
1;. 'hat is the certification #rogram called that the Pro$ect 3anagement Institute #rovides8
aG 3icrosoft Certified Pro$ect 3anager M3CP3G
bG Pro$ect 3anager Professional MP3PG
cG Pro$ect 3anagement *=#ert MP3*G
dG Pro$ect 3anagement 3entor MP33G
11. % _________________ is a series of actions directed towards a #articular result.
aG 4oal
bG Process
cG Plan
dG Pro$ect
1. ____________________ Processes include coordinating #eo#le and other resource to carr! out
the #ro$ect #lans and #roduce the #roducts? service? or results of the #ro$ect or #hase.
aG Initiating
bG Planning
cG *=ecuting
dG 3onitoring < controlling
1&. 'hich #rocess grou# normall! re)uires the most resources and time8
aG Initiating
bG Planning
cG *=ecuting
dG 3onitoring and controlling
1,. % wor( brea(down structure? #ro$ect schedule? and cost estimates are out#uts of the #rocess.
aG Initiating
bG Planning
cG *=ecuting
dG 3onitoring and controlling
1.. 'hich #rocess grou# includes activities from each of the nine (nowledge areas8
aG Initiating
bG Planning
cG *=ecuting
dG 3onitoring and controlling
11. Pro$ect management as a #rofession is almost uni)ue in having institutions concerned with its
develo#ment who #romote what the! term their
aG Bod! of language
bG Bod! of (nowledge
cG -trateg!
dG 'or(
16. Initiating involves develo#ing a #ro$ect charter and #reliminar! #ro$ect sco#e statement? which
are #art of the #ro$ect _____________________ management (nowledge.
aG Integration
bG -co#e
cG Communications
dG 9is(
17. % ________________ describes how things should be done? and different organizations often
have different wa!s of doing things.
aG 9egulation
bG Process
cG -tandard
dG 3ethodolog!
1:. ___________________ involves measuring #rogress toward #ro$ect ob$ectives and tal(ing
corrective actions.
aG Initiating
bG Planning
cG *=ecuting
dG 3onitoring and controlling
;. 'hat t!#e of re#ort do #ro$ect teams create to reflect on what went right with the #ro$ect8
aG 2essons S learned re#ort
bG -tatus re#ort
cG 0inal #ro$ect re#ort
dG Business case
1. Pro$ect manager is res#onsible for
aG Overseeing change
bG Cross functional activities
cG *ver changing set of tas(s
dG %ll above
. 3an! #eo#le use ________________ to have a standard format for #re#aring various #ro$ect
management documents.
aG 3ethodologies
bG /em#lates
cG Pro$ect management software
dG -tandards
&. 'hat is the last ste# in the four S stage #lanning #rocess for selecting information technolog!
#ro$ects8
aG Information technolog! strateg! #lanning
bG Business area anal!sis
cG Pro$ect #lanning
dG 9esource allocation
,. % new government law re)uires an organization to re#ort data in anew wa!. Cnder which
categor! would a new information s!stem #ro$ect to #rovide this data fall8
aG Problem
bG O##ortunit!
cG 5irective
dG 9egulation
.. % __________________ is a document that formall! recognizes the e=istence of a #ro$ect and
#rovides direction on the #ro$ectHs ob$ectives and management.
aG Pro$ect charter
bG Preliminar! sco#e statement
cG Business case
dG Pro$ect management #lan
1. ICO3 model? which is one of the ma$or roles of #ro$ect manager? stand for
aG Integrated Constraint of 3echanism
bG In#uts? Out#uts? Constraints < 3echanism
cG In#uts? Out#uts? Constraints < 3one!
dG None
6. % _______________ often includes sensitive information? so it should not be #art of the overall
#ro$ect #lan for an!one to see.
aG Business case
bG Pro$ect charter
cG Personnel chart
dG -ta(eholder anal!sis
7. 'hich of the following is not a suggestion for #erforming integrated change control8
aG Cse good configuration management
bG 3inimize change
cG *stablish a formal change control s!stem
dG Eiew #ro$ect management as a #rocess of constant communication and negotiation
:. _______________ referMsG to all the wor( involved in creating the #roducts of the #ro$ects and
#rocesses used to create them.
aG 5eliverables
bG 3ilestones
cG -co#e
dG Product develo#ment
&;. %ssume !ou have a #ro$ect with ma$or categories called #lanning? anal!sis? design? and testing.
'hat level of the 'B- would these items fall under8
aG ;
bG 1
cG
dG &
&1. 'hich of the following is not a best #ractice that can hel# in avoiding sco#e #roblems on
information technolog! #ro$ects8
aG >ee# the sco#e realistic
bG Cse offFtheFshelf hardware and software whenever #ossible
cG 0ollow good #ro$ect management #rocesses
dG 5onHt involve too man! users in sco#e management
&. "aving ascertains the #ortfolio of #ro$ects obtained ob$ectives for each of them? we have to move
to the ne=t stage of the strateg! #rocess to balance the ob$ectives
aG Polic! de#lo!ment
bG -trateg! matri=
cG Pro$ect #erformance measurement
dG None
&&. 'hat ma$or restaurant chain terminated a large #ro$ect after s#ending N16; million on it?
#rimaril! because the! realized the #ro$ect sco#e was too much to handle8
aG Burger >ing
bG Pizza "ut
cG 3c5onalds
dG /aco Bell
&,. -co#e ____________________ is often achieved b! a customer ins#ection and then sign S off on
(e! deliverables.
aG Eerification
bG Ealidation
cG Com#letion
dG Close S out
&.. Pro$ect management software hel#s !ou develo# a _________________? which serves as a basis
for creating 4antt charts? assigning resources? and allocating costs.
aG Pro$ect #lan
bG -chedule
cG 'B-
dG 5eliverable
&1. 'B- M'or( Brea(down -tructureG is also (nown as
aG Chun(ing
bG Cnbundling
cG Both MaG < MbG
dG None
&6. 'hat is the first #rocess in #lanning a #ro$ect schedule8
aG 3ilestone definition
bG %ctivit! definition
cG %ctivit! resource estimation
dG %ctivit! se)uencing
&7. Predecessors? successes? logical relationshi#s? leads and lags? resource re)uirements? constraints?
im#osed dates? and assum#tions are all e=am#les of ___________________.
aG Items in an activit! list
bG Items on a 4antt chart
cG 3ilestone attributes
dG %ctivit! attributes
&:. %s the #ro$ect manager for a software develo#ment #ro$ect? !ou are hel#ing to develo# its
schedule. Dou decide that writing code for a s!stem cannot start until sign off on the anal!sis
wor(. 'hat t!#e of de#endenc! is this8
aG /echnical
bG 3andator!
cG 5iscretionar!
dG *=ternal
,;. Dou cannot start editing a technical re#ort until someone else com#letes the first draft. 'hat t!#e
of de#endenc! does this re#resent8
aG 0inish S to S start
bG -tart S to S start
cG 0inish S to S finish
dG -tart S to S finish
,1. \\\\\\\. Involves going through the c!cle several times to test the effects of the changes
ma(e on the outcomes.
aG Planning
bG -trateg!
cG Iterative
dG None
,.
%bove figure shows two activities % < BR B cannot start until % finished and the times for % <
B are . and 6 da!s res#ectivel!. /his logic is (nown as
aG 5e#endenc!
bG Precedence
cG 0reedom
dG None
,&.
In the above figure calculate the **/ Mearliest event timeG at ;.
aG 1;
bG ;
cG .
dG .
10
0
20
0
A
5Days
1 2
3
A B
5Days 7Days
,,. 'hat s!mbol on a 4antt chart re#resents a sli##ed milestone8
aG % blac( arrow
bG % white arrow
cG % blac( diamond
dG % white diamond
,.. 'hat t!#e of diagram shows #lanned and actual #ro$ect schedule information8
aG % networ(
bG % 4antt chart
cG % /rac(ing
dG % milestone chart
,1. ____________________ is a networ( diagramming techni)ue used to #redict total #ro$ect
duration.
aG P*9/
bG % 4antt chart
cG Critical #ath method
dG Crashing
,6. 'hich of the following statement is false8
aG A4rowing grassB was on the critical #ath for a large theme #ar( #ro$ect.
bG /he critical #ath is the series of activities that determine the earliest time b! which a
#ro$ect can be com#leted.
cG % forward #ass through a #ro$ect networ( diagram determines the earl! start and
earl! finish dates for each activit!.
dG 0ast trac(ing is a techni)ue for mar(ing cost and schedule tradeFoffs to obtain the
obtain the greatest amount of schedule com#arison for the least incremental cost.
,7. _____________________ is a method of scheduling that considers limited resources when
creating a #ro$ect schedule and includes buffers to #rotect the #ro$ect com#letion date.
aG Par(insonHs 2aw
bG 3ur#h!Hs 2aw
cG Critical #ath anal!sis
dG Critical chain scheduling
,:. _______________ is a resource scarified or foregone to achieve a s#ecific ob$ective or something
given u# in e=change.
aG 3one!
bG 2iabilit!
cG /rade
dG Cost
.;. 'hat is main goal of #ro$ect cost management8
aG /o com#lete a #ro$ect for as little cost as #ossible
bG /o com#lete a #ro$ect within an a##roved budget
cG /o #rovide truthful and accurate cost information on #ro$ects
dG /o ensure that an organizationHs mone! is used widel!
.1. % fundamental of O/heor! of ConstraintsH M/OCG is to manage s!stems b! focusing on the
constraints? termed as
aG 'atermar(
bG Bottlenec(
cG /ic(Fsheet
dG None
.. A%n activit! will e=#and to fill the time availableBR it is
aG NewtonHs 2aw
bG Par(insonHs 2aw
cG *insteinHs 2aw
dG None
.&. 'hich of the following is not a (e! out#ut of #ro$ect cost management8
aG % cost estimate
bG % cost management #lan
cG C#dates to the cost management #lan
dG % cost baseline
.,. If a com#an! loses N. for ever! N1;; in revenue for a certain #roduct? what is #rofit margin for
that #roduct8
aG F. #ercent
bG . #ercent
cG FN.
dG N.
... __________________ reserves allow for future situations that are un#redictable.
aG Contingenc!
bG 0inancial
cG 3anagement
dG Baseline
.1. Dou are #re#aring a cost estimate for a building based on its location? #ur#ose? number of s)uare
feet? and other characteristics. 'hat cost estimating techni)ue are !ou using8
aG Parametric
bG %nalogous
cG Bottom S u#
dG /o# S down
.6. ______________ involves allocating the #ro$ect cost estimate to individual wor( items over time.
aG 9eserve anal!sis
bG 2ife c!cle costing
cG Pro$ect cost budgeting
dG *arned value anal!sis
.7. _________________ is a #ro$ect #erformance measurement techni)ue that integrates sco#e time?
and cost data.
aG 9eserve anal!sis
bG 2ife c!cle costing
cG Pro$ect cost budgeting
dG *arned value anal!sis
.:. If the actual cost for a 'B- item is N1.;; and its earned value was N;;;? what is its cost
variance? and is it under or over budget8
aG /he cost variance is FN.;;? which is over budget
bG /he cost variance is FN.;;? which is under budget
cG /he cost variance is N.;;? which is over budget
dG /he cost variance is N.;;? which is under budget
1;. If a #ro$ect is halfwa! com#leted and its schedule #erformance inde= is 11;@ and its cost
#erformance inde= is :.@? how is it #rogressing8
aG It is ahead of schedule and under budget
bG It is ahead of schedule and over budget
cG It is behind schedule and under budget
dG It is behind schedule and over budget
11. /o determine the cost of #articular element in advance of the #ro$ect? which techni)ue can be
em#lo!ed8
aG Parametric estimating
bG %s\\\\but\\\\s
cG 0orecasts
dG %ll above
1. _______________ is the degree to which a set of inherent characteristics fulfills re)uirements.
aG Kualit!
bG Conformance to re)uirements
cG 0itness for use
dG 9eliabilit!
1&. 'hat is the #ur#ose of #ro$ect )ualit! management8
aG /o #roduce the highest )ualit! #roducts and services #ossible
bG /o ensure that a##ro#riate )ualit! standards are met
cG /o ensure that the #ro$ect will satisf! the needs for which it was underta(en
dG %ll of the above
1,. _______________ generates ideas for )ualit! im#rovements b! com#aring s#ecific #ro$ect
#ractices or #roduct characteristics to those of other #ro$ects or #roducts within or outside the
#erforming organization.
aG Kualit! audits
bG 5esign of e=#eriments
cG -i= -igma
dG Benchmar(ing
1.. 'hat tool could !ou use to determine whether a #rocess is in control or out of control8
aG % cause S and S effect diagram
bG % control chart
cG % run chart
dG % scatter chart
11. Com#lication to the critical #ath re#resents the formation of com#ound series of activities often
involving different #aths which has been termed
aG /he critical chain
bG /he critical #ath
cG /OC
dG 9esource #ath
16. -i= -igmaHs target for #erfection is the achievement of no more than ________________ defects?
errors? or mista(es #er million o##ortunities.
aG 1
bG :
cG &.,
dG 1
17. /he seven run rule states that if seven data #oints in a row on a control chart are all below the
mean? above the means? or all increasing or decreasing? then the #rocess needs to be e=amined for
_________________ #roblems.
aG 9andom
bG Non S random
cG -i= -igma
dG Kualit!
1:. 'hat is the #referred order for #erforming testing on information technolog! #ro$ects8
aG Cnit testing? integration testing? s!stem testing? user acce#tance testing
bG Cnit testing? s!stem testing? integration testing? user acce#tance testing
cG Cnit testing? s!stem testing? user acce#tance testing? integration testing
dG Cnit testing? integration testing? user acce#tance testing? s!stem testing
6;. ___________________ is (nown for his wor( on )ualit! control in Ja#an and develo#ed the 1,
#oints for 3anagement in his te=t Out of the Crisis.
aG Juran
bG 5eming
cG Crosb!
dG Ishi(awa
61. /he theor! of constraints M/OCG is successfull! a##lied in
aG Planning
bG Chec(ing
cG 3anufacturing
dG Controlling
6. P3IHs OP3& is an e=am#le of a ____________________ model or framewor( for hel#ing
organization im#rove their #rocesses and s!stems.
aG Benchmar(ing
bG -i= -igma
cG 3aturit!
dG Kualit!
6&. 'hich of the following is not #art of #ro$ect human resource management8
aG 9esource estimating
bG %c)uiring the #ro$ect team
cG 5evelo#ing the #ro$ect team
dG 3anaging the #ro$ect team
6,. _________________ causes #eo#le to #artici#ate in an activit! for their own en$o!ment.
aG Intrinsic motivation
bG *=trinsic motivation
cG -elf motivation
dG -ocial motivation
6.. %t the bottom of 3aslowHs #!ramid or hierarch! of needs are _____________ needs.
aG -elf S actualization
bG *steem
cG -afet!
dG Ph!siological
61. ________________ #ower is based on a #ersonHs individual charisma.
aG %ffiliation
bG 9eferent
cG Personalit!
dG 2egitimate
66. 'hat techni)ue can !ou use to resolve resource conflicts b! dela!ing tas(s8
aG 9esource loading
bG 9esource leveling
cG Critical #ath anal!sis
dG Over allocation
67. 'hich of the following is not a tool or techni)ue for managing #ro$ect team8
aG Observation and conversation
bG Pro$ect #erformance a##raisals
cG Issue logs
dG -ocial -t!les Profile
6:. 'hat do man! e=#erts agree is the greatest threat to the success of an! #ro$ect8
aG 2ac( of #ro#er funding
bG % failure to communicate
cG Poor listening s(ills
dG Inade)uate staffing
7;. 'hich communication s(ill is most im#ortant for information technolog! #rofessionals for career
advancement8
aG 'riting
bG 2istening
cG -#ea(ing
dG Csing communication technologies
71. 'hich of the following is not a #rocess in #ro$ect communication management8
aG Information #lanning
bG Information distribution
cG Performance re#orting
dG 3anaging sta(eholders
7. % building ma! not be constructed unless the #lanning #ermission for it has been obtained? this is
the
aG 2egal constraint
bG Kualit! constraint
cG Cost constraint
dG 2ogic constraint
7&. % ________________ re#ort describes where the #ro$ect stands at a s#ecific #oint in time.
aG -tatus
bG Performance
cG 0orecast
dG *arned value
7,. __________________ is an uncertainl! that can have a negative or #ositive effect on meeting
#ro$ect ob$ectives.
aG 9is( utilit!
bG 9is( tolerance
cG 9is( management
dG 9is(
7.. % #erson who is a ris( F ______________ receives greater satisfaction when more #a!offs is at
sta(e and is willing to #a! a #enalt! to ta(e ris(s.
aG %verse
bG -ee(ing
cG Neutral
dG %ware
71. 'hich ris( management #rocess involves #rioritizing based on their #robabilit! and im#act of
occurrence8
aG 9is( management #lanning
bG 9is( identification
cG Kualitative ris( anal!sis
dG Kuantitative ris( anal!sis
76. /he 6F- framewor( of #ro$ect management issues was #romoted b!
aG 3cJonald and Co.
bG 3c>insl! and Co.
cG J < > Co.
dG None
77. Dour #ro$ect involves using a new release of a software a##lication? but if that release is not
available? !our team has ______________ #lans to use the current release.
aG Contingenc!
bG 0allbac(
cG 9eserve
dG 3itigation
7:. % ris( _________________ is a document that contains results of various ris( management
#rocesses? often dis#la!ed in a table or s#readsheet format.
aG 3anagement #lan
bG 9egister
cG Brea(down structure
dG Probabilit! L im#act matri=
:;. Dour #ro$ect team has decided not to use an u#coming release of software because it might cause
!our schedule to sli#. 'hich negative ris( res#onse strateg! are !ou using8
aG %voidance
bG %cce#tance
cG /ransference
dG 3itigation
:1. 0or non critical activities? networ( diagrams build in \\\\\\\\\\. at the start of
activities.
aG /em#orar!
bG Buffer
cG -lac(
dG %n!where
:. If a #ro$ect being underta(en b! a #articular #ro$ect team? then these are referred as
aG 9esource ca#abilit!
bG 9esource ca#acit!
cG 9esource calendar
dG 9esource #ool
:&. /he term Ohedgehog s!ndromeH means
aG 3anagement #roblem
bG -olving #roblem
cG 9e#etition of #roblem
dG 0ind out a #roblem
:,. 'hat is the first #rocurement #rocess8
aG Planning contracting
bG Planning #urchasing and ac)uisitions
cG 9e)uesting seller res#onses
dG Procurement management #lanning
:.. /he _____________ is the #oint at which the contractor assumes total res#onsibilit! for each
additional dollar of contract cost.
aG % brea(even #oint
bG -hare ratio #oint
cG Point of reconciliation
dG Point of total assum#tion
:1. 'eHre standing on this hill here. 'e want to be on that hill over there? this is
aG Eiew
bG Eision
cG 3ission
dG %im
:6. % ______________________ is a document #re#ared b! a seller when there are different
a##roaches for meeting bu!er needs.
aG 90P
bG 90K
cG Pro#osal
dG Kuote
:7. Bu!ers often #re#are a ______________________ list when selecting a seller to ma(e this
#rocess more manageable.
aG Preferred
bG -hort
cG Kualified su##liers
dG B%0O
::. % #ro#osal evaluation sheet is an e=am#le of aMnG ______________________.
aG 90P
bG NPE anal!sis
cG *arned value anal!sis
dG 'eighted scoring model
1;;. __________________ is a term used to describe various #rocurement functions that are
now done electronicall!.
aG * S #rocurement
bG eBa!
cG * S commerce
dG *3E
E7/&#" I,/&#" M*'*(+,+'"
P*#" O'+
M%."/.+ C0&)+!
1. In case of goods beíng re|ected or wrong shípments whích sectíon of customer act
provídes drawback facíííty on the customer´s duty?
a. Sectíon 47
b. Sectíon 88
c. Sectíon 74
d. Sectíon 40
2. Rísks arísíng out of foreígn íaw due to________________.
a. Lack of knowíedge about foreígn market
b. Expensíve and compíex íítígatíon
c. A & B both
d. None of these
3. Import LC ís aíso known as ______________________.
a. Letter of Debt
b. Bííís of exchange
c. Open account
d. Letter of credít
4. How much dígíts are there ín IEC number?
a. 8
b. 10
c. 12
d. 15
5. What ís the fuíí form of RFID?
a. Ruraí fund ínformatíon deveíopment
b. Request for ínternatíonaí deveíopment
c. Radío frequency ídentíñcatíon system
d. Radío frequency ínternaí system
6. The Export Inspectíon Councíí ís a _____________________
b. Responsíbíe for the enforcement of OC
c. Admínístratíve controí of the mínístry of Commerce & índustry
d. Provídes consuítancy to export organízatíon
7. The Woríd Trade Organízatíon was formed ín_________________.
a. 1994
b. 1995
c. 1996
d. 1997
8. Government poíícíes are reíated to__________________________.
a. Income tax
b. Saíes tax
c. A & B both
d. None
9. Cíearíng and forwardíng agents are an ímportant íínk between_______________.
a. The exporter and varíous other agencíes
b. The ímporter and varíous other agencíes
c. Import and export of goods
d. Aíí of the above
10. Whích Regíonaí íssues are ímportant to commercíaí success?
a. Taxatíon matters
b. Importance of negotíatíons
c. Degree of market rísk
d. Aíí of the above
P*#" T1&
1. Deñne EDI procedure?
2. Díherentíatíon between "Measurement Ruíes" and "Paííet Ruíes"?
3. Expíaín the Beneñts of Eíectroníc Procurement?
4. What ís DGCI$S?
5. Deñne the roíe of íntermedíaríes ín Shíppíng Industry?
C*!+ .+" 2
"Large Package Meaí" ís a fuíí-package meaís servíce company, a íarge hoteí by the
Shanghaí Lí Yang coupíe of íaíd-oh workers, was founded ín 1994 and now has
deveíoped ínto a smaíí Suxíchang and Hang|íahu area famous food servíce
busínesses."Popuíar Package Meaí" servíce ís dívíded ínto two categoríes: íunch and
package deíívery servíces. Lunch maíníy by the meat dísh, vegetabíes, Lu Caí, popuíar
soup and fruít composítíon of normaí. Avaííabíe for customers to choose menu: síx
kínds of meat dísh, vegetabíes, 10 specíes of Lu Caí 4, three kínds of soup and the
generaí pubííc three kínds of fruít can aíso be adorned wíth custom-made drínks.
Despíte ííttíe change ín the menu, but the annuaí report on the poínt of víew, the
overaíí íeveí of demand for thís servíce faíríy stabíe, the oíd customers wííí caíí to
order a day usuaííy. However, as facííítíes and equípment reasons, the "pubííc packet
meaís" wííí ask the customers at 10 am before the teíephone bookíng, ín order to
ensure that the day of deíívery ín píace.
In the package of servíces, the company´s core competency ís to províde enterpríses
buhet receptíon, íarge gatheríngs, as weíí as the average famííy feast and ceíebratíon
dínner. Customers need a varíety of food and servíces can be pre-bookíng, but
because of the servíce híghíy seasonaí, but aíso wíth a varíety of communíty festívaís
and natíonaí hoíídays reíated to the demand ñuctuated, wíth hígh season and íow
season, so ask the customer a few weeks or even a month ahead of scheduíe to come
to book. Voíkswagen meaí package íayout ís símííar to the company´s facííítíes ín a
processíng píant. There are ñve work areas: thermaí system for food work areas, coíd
dísh work area, Lu Caí preparatíon area, soups and fruít preparatíon area, as weíí as a
work area cateríng specíñcaííy for the ínstaííatíon of the sets of díshes íunch box and
book Zhuangpen share. In addítíon, there are three smaíí refrígerators for storíng
frozen foods, a íarge dry storage rooms for non-períshabíe materíaís. As the facííítíes
and equípment íímítatíons and the rísk of food spoííage constraíned píant mass the
síze of the company´s deveíopment package meaís. Whííe the drínks and fruít can be
purchased, and some stores are wííííng to deííver door, but the overaíí package on the
íímíts of human congregatíon ohers ñexíbíe meaí servíce. Lí Yang coupíes empíoyed
10 stah: two chefs and eíght food preparatíon workers, part-tíme empíoyment duríng
the peak season other attendants.
Packet meaís sector, competítíon ís very íntense, hígh-quaííty food products, reííabíe
deíívery, ñexíbíe servíce and íow-cost carríers are aíí ín thís ííne of survívaí and
deveíopment ís fundamentaí. Recentíy, the pubííc packet meaís from the company
has began to feeí more and more díscerníng customers and severaí new packages
meaí províders of professíonaí competítíon. Customers íncreasíngíy need to díversífy
the menu of servíces, ñexíbíe, and the response-tíme. Lí Yang wífe recentíy attended
knowíedge of modern íogístícs traíníng courses, on the tíme of the operatíon and the
concept of thírd-party íogístícs servíces, was ímpressed by carefuí consíderatíon of
these concepts ís the pubííc packet meaís company to maíntaín íts competítíveness
need. But they are puzzíed, popuíar package Meaís Company´s abíííty to heíp thírd-
party íogístícs servíces
24 The pubííc package meaí companíes ímpíement servíce-tíme avaííabíííty of
dímcuítíes, píease expíaín?
<4 The íntroductíon of thírd-party íogístícs servíces to the pubííc packet meaís wouíd
you put forward any ñrm recommendatíons?
C*!+ .+" <
UPS ís a íarge ínternatíonaí express deíívery company, has hundreds of píanes ín
addítíon to íts own cargo píanes, he aíso rented hundreds of aírcraft cargo aírcraft, the
transport capacíty of more than 1,000 a day. UPS ín thís woríd has estabííshed more
than 10 aír transport transít center ín more than 200 countríes and regíons of the tens
of thousands of deíívery centers. UPS´s empíoyees to reach hundreds of thousands.
Annuaí turnover of the amount couíd reach tens of bííííons of doííars; express deíívery
companíes ín the woríd en|oy a hígh reputatíon.
UPS Company ís engaged ín correspondence, documents and parceí deíívery
busíness, the company quíckíy. It ís the woríd´s countríes and regíons have made
access to the aír tramc ríghts. In the Chína, whích estabííshed a number of deíívery
centers. A company to take advantage of hígh-tech means to achíeve rapíd and safe,
ís a wíde range of íogístícs servíces, ímage perfect.
Q%+!"&'!
1. Why do we say UPS ís an ínternatíonaí íogístícs busíness, and generaí transport
íogístícs
Company?
3. To descríbe the ínternatíonaí express íogístícs enterpríses ín the deveíopment
prospects?
1. Díscuss the roíe of Banks ín an export-ímport transactíon?
2. Descríbe bríeñy the steps ínvoíved ín export busíness to succeed ín the era of
Gíobaíízatíon?
CASE STUDY ANSWERS
ASSIGNMENT SOLUTIONS
PROJECT REPORTS AND THESIS
ISBM / IIBMS / IIBM / ISMS / KSBM /
NIPM
SMU / SYMBIOSIS / XAVIER / NIRM /
PSBM / NSBM / ISM / IGNOU / IICT /
ISBS / LPU / ISM&RC
MBA - EMBA - BMS - GDM - MIS - MIB
DMS - DBM - PGDM - DBM - DBA
www.mbacasest!"a#swe$s.c%m
www.casest!"s%&t'%#.'#
www.casest!'es.c%.'#
I'"+#'*"&'*. T#*6+
P*#" O'+-
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1. _________ís beneñcíaí between two natíons that have strong markets ín two díherent
sectors.
a. Economíc Growth
b. Internatíonaí Trade
c. Trade Integratíon
d. Trade Díversíon
2. What ís the fuíí form of UNCTAD?
a. Uníted Natíon Conference on Trade and Deveíopment
b. Uníon Natíons Commíttee of Trade and Deveíopment
c. Uníon Natíons Conference on Trade and Deveíopment
d. None of the above
3. ______ís ñxed through negotíatíon between the ímportíng country and the exportíng
country.
a. Taríh Ouota
b. Bííateraí Ouota
c. Míxíng Ouota
d. Unííateraí Ouota
4. Under whích Act Reserve Code Number ís requíred?
a. Foreígn Exchange Reguíatíon Act
b. Custom Act
c. Export Import Controí Act
d. Foreígn Trade Act
5. Whích poíícy of the government wííí have a dírect bearíng on the exchange rate of
the country?
a. Físcaí Poíícy
b. Instrument of Trade Poíícy
c. Monetary Poíícy
d. A and C both Examínatíon Paper of Export Import Management
CASE STUDY ANSWERS
ASSIGNMENT SOLUTIONS
PROJECT REPORTS AND THESIS
ISBM / IIBMS / IIBM / ISMS / KSBM /
NIPM
SMU / SYMBIOSIS / XAVIER / NIRM /
PSBM / NSBM / ISM / IGNOU / IICT /
ISBS / LPU / ISM&RC
MBA - EMBA - BMS - GDM - MIS - MIB
DMS - DBM - PGDM - DBM - DBA
www.mbacasest!"a#swe$s.c%m
www.casest!"s%&t'%#.'#
www.casest!'es.c%.'#
a$a+'#!.ba#a,a$-.ma'&.c%m
6. Whích scheme heíps the exporters ín procuríng ímported raw materíaís?
a. IES
b. C.C.S.
c. IRS
d. None of the above
7. Whích of the foííowíng factor ahectíng the Exchange rate?
a. Purchasíng power Paríty
b. Exchange Controí
c. Baíance of Payments
d. Aíí of the above
8. The system of permíttíng the currencíes to move wíthín a band ís caííed___________
a. Snake ín the tunneí
b. Turtíe Devíce
c. UNCTAD
d. None of the above
9. Períodíc, as often as daííy devaíuatíons of pre-announced magnítude means________
Managed Fíoat Regíme
b. The crawííng Peg Regíme
c. Síngíe currency Peg
d. Composíte currency Peg
10. The Export Poíícy of Government of Indía can be dívíded ínto_______ dístínct
phases.
a. 2
b. 3
c. 4
d. 5
P*#" T1&-
1. Wríte a bríef note on "INTERNATIONAL MONETARY FUND"?
2. Wríte the components of the Uruguay Round Agreement?
3. Díherentíate between Export Expansíon and Import Substítutíon.
4. Expíaín the Term:-
a. Bííí of Landíng
b. Maríne Insurance Poíícy
C*!+ .+" 2
Indía´s tea export rose to 46.74 mííííon kg duríng the ñrst quarter of the current
ñnancíaí year from 35.47 mííííon kg ín the prevíous comparabíe períod. Export
earníngs from thís ítem aggregates Rs. 81.61 crores duríng Apríí-|une 1981, agaínst
Rs. 68.03 crores ín the correspondíng períod íast year. Thus, aíthough ín terms of
quantíty our tea exports have íooked upon thís year, the unít vaíue reaíízatíon
dropped from Rs. 19.8 per kg, to Rs 17.46 per kg.
The drop ín unít vaíue reaíízatíon ís attríbuted to the síackness ín the ínternatíonaí tea
market due to the gíobaí oversuppíy ín thís commodíty. Sínce 1975, woríd tea
productíon has gone up by 41 percent whereas íncrease ín consumptíon by the tea
ímportíng countríes has been oníy of the order of the 9 percent. Naturaííy, the
prospects of a revívaí ín ínternatíonaí tea príce are dím at íeast ín the ímmedíate
future. The recommendatíons made by the recent natíonaí meet on tea; ´revítaííze´
the tea índustry ín the country have to be víewed ín thís context.
The natíonaí meet on tea, organízed by the Uníon Commerce Mínístry, was heíd ín the
ñrst week of August to take a cíose íook at the varíous probíems confrontíng the tea
índustry the meetíng whích was attended by the representatíves of the Centraí
Government, tea producíng states, píanter´s assocíatíons and smaíí growers, has
recommended a package of ñscaí reííefs -both at the Centraí and State íeveís.
The package íncíudes, among other thíngs, a substantíaí reductíon ín excíse duty on
tea, refund of índírect taxes paíd on tea exports, símpííñcatíon of drawback
procedures, substantíaí reductíon or removaí of the exercíse duty on packet tea untíí
further revíew,, suspensíon of saíes tax an auctíon teas, concessíonaí credít and a
sígníñcant cut ín the agrícuíture íncome tax and other íocaí taxed by the respectíve
state governments. It was aíso recommended that the state government shouíd
consíder grant of exemptíon from ruraí empíoyment cess to aíí export saíes of tea and
teas used for packagíng by the procedures themseíves. Accordíng to the avaííabíe
ínformatíon these recommendatíons are beíng consídered by the centraí and states
concerned by the centraí and states concerned for ímpíementatíon.
The basíc probíem that confronts the tea índustry ín the ínternatíonaí sphere ís one of
depressed príce. More and more bíack tea ís comíng ínto the ínternatíonaí markets
from severaí new tea producíng export countríes íeadíng to oversuppíy, íower
reaíízatíon. Among the tea producíng natíons area reaíízíng wíthout greater
cooperatíon among them, to bríng a better equíííbríum between demand and suppíy,
they cannot get íncentíves for tea exports. Because of íower productíon cost, some of
our competítors have an edge over us ín export makers, and íncentíves may be
necessary to an extent for ohsettíng thís príce dísadvantage. Símííaríy, assístance for
exports of non-tradítíonaí ítems such as tea bags and packet tea wouíd be
advantageous for estabííshíng markets for these hígh vaíue added ítems whose share
ín our overaíí a tea exports ís smaíí at present
Q%+!"&'!
1. Díscuss the probíem that comforts the Tea Industry ín the Internatíonaí sphere?
2. How you asses wouíd the Tea producíng states has recommended a package of
ñscaí reííefs.
C*!+ .+" <
August 12, 1992 was a reaííy bad day for |ohn Martín. That was the day Canada,
Mexíco and the Uníted States announced an agreement, ín príncípíe, to the North
Ameríca Free Trade Agreement (NAFTA). Under the pían, aíí taríhs between the three
countríes wouíd be eíímínated wíthín the next 10 to 15 years, wíth most beíng cut ín
ñve years. What dísturbed Martín most was the pían´s provísíon that aíí taríhs on
trade of textííes among the three countríes are to be removed wíthín 10 years. Under
the proposed agreement, Mexíco and Canada wouíd aíso be aííowed to shíp a specíñc
amount of cíothíng and textííes made from foreígn materíaís to the Uníted States each
year, and thís quota wouíd raíse sííghtíy over the ñrst ñve years of the agreement.
"My God!" thought Martín.
Martín ís the CEO of a New York based textííe company, Martín´s Textííes. The
company has been ín the Martín famííy for four generatíons, havíng been founded by
hís great grandfather ín 1910. Today, the company empíoys 1500 peopíe ín three New
York píants that produce cotton based cíothes, prímarííy underwear. Aíí productíon
empíoyees are uníon members and the company has a íong hístory of good íabour
reíatíons. The company has never had a íabour díspute and Martín, ííke hís father,
grandfather, and great -grandfather before hím, regards the workforce as part of the
"Martín famííy". Martín prídes hímseíf not oníy ín knowíng many of the empíoyees by
name, but aíso ín knowíng a great deaí about the famííy círcumstances of many of the
íong tíme empíoyees.
Over the past 20 years the company has experíenced íncreasíngíy tough competítíon,
both from overseas and at home. The míd 1980s was partícuíaríy dímcuít. The
strength of the doííar on the foreígn exchange market duríng that períod enabíed
Asían producers to enter the US market wíth very íow príces. Sínce then, aíthough the
doííar has weakened agaínst many ma|or currencíes, the Asían producers have not
raísed theír príces ín response to the faíííng dríven by wage rates and íabour
productívíty. Not surprísíngíy, most of Martín´s competítors ín the north-eastern Uníted
States respond to the íntense cost competítíon by movíng productíon south, ñrst to
states such as South Caroíína and Míssíssíppí where non -uníon íabour couíd be híred
for sígníñcantíy íess than ín the uníonízed North-east, and then to Mexíco, where
íabour costs for textííe workers were íess than $2 per hour. In contrast, wage rates are
$12.50 per hour at Martín´s New York píant and $8 to $10 per hour at non-uníon
textííe píants ín the south eastern Uníted States.
The íast three years have been partícuíaríy tough at Martín´s Textííes. The company
has regísters a smaíí íoss each year, and Martín knows the company cannot go on ííke
thís. Hís ma|or customers, whííe praísíng the quaííty of Martín´s products, have worríed
hím that hís príces are gettíng too hígh and they may not be abíe to contínue to do
busíness wíth hím, Hís íong-tíme banker has toíd hím he must get hís íabour costs
down. Martín agrees, but he knows of oníy one sureñre way to do that, to move
productíon south, way south, to Mexíco. He has aíways been reíuctant to do that, but
now he seems to have ííttíe choíce. Examínatíon Paper of Export Import Management
He fear as that ín a5 years the Us market wííí be ñooded wíth cheap ímports from
Asían, US and Mexícan companíes, aíí producíng ín Mexíco. It íooks ííke the oníy way
for Martín´s Textííes to survíve ís to cíose the New York píant and move productíon to
Mexíco. Aíí that wouíd be íeft ín the Uníted States wouíd be the Saíes force.
Martín´s mínd was spínníng. How couíd somethíng that throws good honest peopíe out
of work be good for the country? The poíítícíans saíd ít wouíd be good for trade, good
for economíc growth and good for the three countríes. Martín couíd not see ít that
way. What about Mary Morgan who has worked for Martín´s for 30 years? She ís now
54 year as oíd. How wííí she and others ííke her ñnd another |ob? What about hís
moraí obíígatíon to hís workers? What about the íoyaíty hís workers have shown hís
famííy over the years? Is thís a good way to repay ít? How wouíd he break the news to
hís empíoyees, many of whom have worked for the company for 10 to 20 years? And
what about the Mexícan workers? Couíd they be as íoyaí and productíon ín Mexíco, he
had heard storíes of íow productívíty, poor workmanshíp hígh turnover and hígh
absenteeísm. Is thís true? If so, how couíd be ever cope wíth that? Martín has aíways
feít that the success of Martín´s textííes was partíy due to the famííy atmosphere,
whích encourages worker íoyaíty, productívíty and attentíon to quaííty, an atmosphere
that has been buíít up over four generatíons. How couíd he repíícate that ín Mexíco
wíth a bunch of foreígn workers who speak a íanguage he doesn´t even understand?
Q%+!"&'!
1. What are the socíaí costs of beneñts to Martín´s Textííes of shíftíng productíon to
Mexíca?
2. What seems to be the most ethícaí actíon?
1. Descríbe the current íssues ahectíng the Exchange Rate of Indía?
2. Expíaín bríeñy "New Trade Theory"?
Examínatíon Paper of Foreígn Trade management
IIBM Instítute of Busíness Management 1
IIBM I'!""%"+ &= B%!'+!! M*'*(+,+'"
E7*,'*"&' P*/+# MM42::
I'6*' F&#+(' T#*6+
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_ Thís sectíon consísts of Muítípíe Choíce Ouestíons and Short Ouestíons
_ Answer aíí the questíons
? Part one carry 1 mark each and Part Two questíons carry 5 marks each.
P*#" O'+-
M%."/.+ )0&)+!-
1. Whích of the foííowíng ís NOT an ínítíatíve for attractíng a hígher Ouantum of FDI?
a. Further Líberaíízatíon of Foreígn Trade Poíícy
b. Ratíonaíízatíon of Labour Poíícy
c. Deveíopment of Infrastructure
d. Increase ín |oínt ventures
2. ECB stands for ______________________________
3. The textííe and garment exports have been ahected due to __________________
4. _____ ís a popuíar export ínductíve scheme.
5. To overcome many of the probíems assocíated wíth the advance íícensíng system
thís scheme was íntroduced
a. Passbook Scheme
b. EPGC Scheme
c. Post Export Duty Exemptíon Scheme
d. Duty Drawback Scheme
6. Whích of the foííowíng ís a potentíaí Export product
a. Automobííe Products c. Agrícuíturaí Products
b. Leather Products d. Engíneeríng Products
7. To gíve a specíaí trust for export of computer software whích of the foííowíng
scheme was deveíoped
a. DEPB Scheme c. EOU/EPI Scheme
b. EPCG Scheme d. Duty Exemptíon scheme
8. It ís a bííateraí agreement between two countríes to purchase specíñc amounts of
each other´s products over a specíñed períod of tíme
a. Swap c. Cíearíng
Examínatíon Paper of Foreígn Trade management
IIBM Instítute of Busíness Management 2
b. Swítch d. Evídence Accounts
9. TRIPS stands for ____________________________
10. Foreígn Investment Promotíon Board does not consíst whích of the foííowíng
member
a. Secretary Míníster of Externaí Ahaírs
b. Industry Secretary - Chaírman
c. Foreígn Investment Míníster
d. Fínance Secretary
P*#" T1&-
1. Wríte a short note on ´Gíobaíízatíon´?
2. Díherentíate between Current Account Convertíbíííty and Capítaí Account
Convertíbíííty?
3. Deñne ´Deemed Exports´?
4. Díscus the measures announced ín the Uníon Budget 1990 - 00 for Trade Poíícy
Reforms?
END OF SECTION A
S+)"&' B- C*!+.+"! @C: M*#A!B
_ Thís sectíon consísts of Caseíets
_ Answer aíí the questíons
_ Each Caseíet carríes 20 marks each.
_ Detaííed ínformatíon shouíd form the part of your answer (Word íímít 150 to 200
Words)
C*!+.+" 2
An Amerícan Woríd Wíde Corporatíon has decíded to expand aggressíveíy ín Asía. It
píans to source much of íts raw materíaís and subcontractíng there and manufacture
and market throughout Asía, from |apan ín the north to New Zeaíand ín the South.
You were appoínted to organíze and dírect thís ma|or new ehort and one questíon was
where to íocate the regíonaí headquarters for the Asían Dívísíon (ADR). After
consíderabíe study, you seíected the ísíand natíon of Luau.
Luau´s advantages are severaí. It ís about equídístant between New Zeaíand and
|apan. It was a Brítísh Coíony, so the maín íanguage ís Engíísh. It has a reíatíveíy
emcíent teíephone and teíegraph system and Examínatíon Paper of Foreígn Trade
management
IIBM Instítute of Busíness Management 3
good aír servíce to aíí the ma|or Asían destínatíons ín whích you are ínterested and to
the Uníted states, as weíí.
Not íeast ímportant, the Luau government ís deííghted to have your company íocate
and ínvest there. It has made very attractíve tax concessíons to the company and to
íts personneí who wííí move there.
The company moves ín, íeases one íarge buíídíng and puts out ínvítatíons to bíd on
the constructíon of a íarge buíídíng whích wííí be íts permanent headquarters. Now as
you begín to work much more wíth the prívate bankíng and busíness peopíe of íuau
and íess wíth government omcíaís, you begín to be more aware of íuau characterístícs
about whích you had not thought much prevíousíy. Aímost aíí of the míddíe and upper
management personneí ín the busíness and ñnance sector are of Chínese extractíon.
The natíve popuíatíon of íuau, whích ís the ma|oríty, ís a Mícronesían race.
On enquíry why the Chínese are domínant ín bankíng and busíness; whííe the
Mícronesíans stay wíth farmíng, ñshíng, government and manuaí íabor, you are toíd
that thís ís the way ít deveíoped hístorícaííy. The Chínese en|oy and are good at
bankíng and busíness; whííe the natíve Luauans do not ííke those actívítíes and have
stayed wíth theír tradítíonaí pastímes. The two groups buy and seíí from and to each
other, but there are aímost no socíaí reíatíons and very ííttíe busíness or professíonaí
overíap between the groups. Occasíonaííy, some of the Mícronesíans study abroad
and some work abroad for períods; when they return they frequentíy go to work ín a
bank or busíness or take a government posítíon.
You must stah your headquarters wíth míddíe and íower management peopíe and wíth
cíerícaí heíp. You ñnd that the oníy appíícants for the |obs are Chínese, and you seíect
the best avaííabíe. They are quíte satísfactory, and the operatíon gets oh to a good
start.
Then as the months pass, you notíce a graduaí change of attítude towards you and
the company among the government omcíaís and among the peopíe ín generaí. They
have become íess fríendíy, more evasíve, and íess co-operatíve. You ask your Chínese
stah about ít, but they have notíced nothíng unusuaí.
R+D%#+6
O. Gíve some suggestíons to ímprove the Government and Pubííc Reíatíons?
C*!+.+" <
Vertex, the tenth íargest bank ín the woríd has promoted woríd - cíass ínstítutíons ín
Indía. A few of such ínstítutíons buíít by Vertex are Natíonaí Stock Exchange, The
Natíonaí Securítíes Deposítory Servíces Límíted, Stock Hoídíng Corporatíon of Indía
etc. vertex ís a strategíc ínvestor ín a píethora of ínstítutíons, whích have
revoíutíonízed the Indían Fínancíaí Markets. Vertex promoted Vertex Bank to make the
formaí foray of the Vertex group ínto commercíaí bankíng. The bírth of Vertex Bank
took píace after RBI íssued guídeíínes to for the entry of new prívate sector banks ín
|anuary 19, 1993. Subsequentíy, Vertex as promoters sought permíssíon to estabíísh a
commercíaí bank and retaíned Examínatíon Paper of Foreígn Trade management
IIBM Instítute of Busíness Management 4
KPMG a management consuítant of ínternatíonaí repute to prepare the groundwork for
estabííshíng a commercíaí Bank.
Vertex successfuííy compíeted íts pubííc íssue ín February 1999, whích íed to íts paíd -
up capítaí expandíng to Rs. 1400 mííííon. The promoters hoídíng consequent to thís
pubííc íssue stood reduced to 71% wíth Vertex hoídíng 57% and SIDBI 14% of the paíd
-up capítaí of Vertex Bank. Thís was ín ííne wíth the requírement of RBI whích
stípuíated that eventuaííy the promoters hoídíng shouíd be bought down to 40%.
Bankíng as a whoíe was undergoíng a change ín Indía. Wíth the retaíí - bankíng sector
expected to grow at a rate of 30%, píayers were focusíng more and more on the retaíí
sector.
In 2000, there was a corporate shíft ín the emphasís of Vertex bank from corporate
bankíng to retaíí Bankíng. Thís shíft was maíníy ínítíated due to the change ín the top
management at corporate omce and aíso due to a paradígm shíft ín the gíobaí
bankíng índustry from corporate bankíng to retaíí Bankíng. The bank feít the need to
províde íts retaíí cííents wíth compíete bankíng soíutíons under one roof top penetrate
the retaíí sector. In ííne wíth the change ín emphasís, Vertex Bank decíded to dívíde
the functíons of Ra|endra Píííaí who was earííer íookíng after both corporate and retaíí
servíces, by appoíntíng a young and dynamíc management graduate San|ay Síngh to
head the retaíí bankíng segment. The foííowíng were some of the measures adopted
by the bank for promotíng íts retaíí products.
P#&6%)": The bank íntroduced a wíde array of retaíí bankíng products ín order to
penetrate the retaíí - bankíng segment. Earííer, the bank had concentrated on bíg
retaíí cííents. Oníy cííents havíng a mínímum baíance of Rs. 25,000 were aííowed to
open a savíngs account. However, the mínímum baíance requírement was íowered to
Rs. 5,000. The ñrst category consísted of cííents havíng an average quarteríy baíance
of Rs 5 íakh and above, and the second category consísted of customers havíng an
average quarteríy baíance of Rs. 25 íakh and above. These preferred customers were
províded specíaí facííítíes ííke home deíívery of demand drafts. The facííítíes were
hígher ín the ñrst category of cííents. State - of -the - art technoíogy was used ín the
bankíng servíces by íntroducíng ATMs, Internet bankíng, demat servíces, Internatíonaí
debít cards wíth muítípíe currency facíííty optíons avaííabíe gíobaííy etc.
_ Dírect Tax Payments: The Reserve Bank of Indía has authorízed Vertex bank to
conduct aíí government transactíons pertaíníng to the Centraí and State Government
mínístríes and non - cívíí mínísters e.g. Indían Raííways Income tax etc.
_ Investment Optíons: Bank heíped cííents to ínvest ín government bonds, reííef
bonds, Suvídha bonds, ínsurance poíícíes etc.
_ ATMs: Vertex bank had set up 7 ATMs ín Indore at promínent íocatíons to facííítate
better customer servíce. The cost of avaíííng an ATM card facíííty entaííed an annuaí
charge of Rs. 99. From theír ínceptíon, ATMs were beíng used mereíy as cash
díspensíng machínes. |ust four years back, peopíe were apprehensíve of usíng ATMs
for cheque/cash deposít. They feared the íoss/ mísuse of theír cheques/cash, íf they
deposíted ít ín the ATMs.
_ Demat Account: The bank offer the demat account deaííng ín physícaí securítíes.
The demat account took care of aíí customers worríes ínvoíved ín portfoíío
management whích was facííítated eíectronícaííy.
_ Debít Cards: Aíí the account hoíders of the bank were íssued debít cards. These
cards couíd be used for ATM transactíons and for payment of the purchase made at
severaí retaíí outíets. The bank díd not províde any Credít Card facííítíes.
Examínatíon Paper of Foreígn Trade management
IIBM Instítute of Busíness Management 5
_ Woríd Currency Card: Thís card was excíusíveíy desígned for ínternatíonaí traveíers´
needs. From a síngíe card, customers can make payments/wíthdrawís ín ñve foreígn
currencíes.
_ Gíft Cards: Thís card was íssued to Vertex savíng Account hoíders and had a
mínímum íímít of Rs. 51,000. The card enabíed cííents to make payment at varíous
gíft stores throughout the country.
_ Home Loans: The bank ohered home íoans at a competítíve ínterest rates for
purchase, constructíon, reñnance, extensíon etc.
_ Phone Bankíng and Mobííe Phone Bankíng: Bankíng servíces such as updated
baíance, detaíís of íast ñve transactíons, request for cheque book etc, were ohered
free of cost.
_ Internet Bankíng: Aíí bankíng soíutíons were ohered on the Vertex Websíte
www.vertexbank.com. The bank beííeved ín provídíng anywhere anytíme bankíng to
íts customers.
P#&,&"&': The corporate omce was promotíng the retaíí products through
natíonwíde ad campaígns. These campaígns used bíííboards and hoardíngs mounted
on kíosks. These campaígns were híghíy ínnovatíve usíng anímaís for promotíng ma|or
themes of customízed servíces. The bank was, however, not usíng any eíectroníc
medía for advertísíng and used saíes promotíon for seíííng some of the products ííke
gíft cards.
Inítíaííy, the branch was aííowed a promotíonaí budget of Rs. 2 - 3 íacs ín order to
estabíísh ítseíf ín the market.
D!"#$%"&': In order to support San|ay Síngh, a marketíng team was appoínted
whích consísted of two young saíes managers and 20 marketíng executíves who
operated ín the ñeíd. These marketíng representatíves engaged ín dírect marketíng
íncíuded personaí seíííng. The saíes force was totaííy target - oríented and varíous
íncentíves were províded to the star performers.
HR P&.)+!: In order to deveíop and motívate the saíes force the bank had come up
wíth key resuít areas ííke budgets, star performance íncentíves etc. under thís actívíty
each empíoyee´s performance was appraísed through a uníque ñve - tíer performance
appraísaí system. The empíoyee was aíso gíven a certíñcate of apprecíatíon for hís
exceííent performance. For creatíng a sense of beíongíngness, the bírthdays of
empíoyees were ceíebrated by ñashíng theír name and bírthday greetíngs on the
Intranet. The empíoyee was aíso presented wíth a bouquet.
The bank had been abíe to íncrease íts retaíí customers from 20,000 to 40,000 ín
Indore. The contríbutíon of retaíí servíces to the annuaí proñts had íncreased from Rs.
73 Crores to Rs. 123 Crores natíonwíde and from 1.50 Crores to 3.5 Crores for the
Indore branch. Vertex bank as a whoíe had the íowest Non Performíng Assets (NPA)
amongst prívate banks nameíy 0.2% and was known for íts emcíency. The Indore
branch had estabííshed ítseíf as number one prívate banks ín terms of overaíí
proñtabíííty. In the present scenarío, San|ay Síngh wondered whether the strategíes
adopted for penetratíng the retaíí market were sumcíent to retaín current customers
and attract new ones. Wíth aggressíve promotíonaí strategíes foííowed by other banks
and the proposed entry of Cítícorp, he pondered on whether the current strategíes
wouíd contínue to be ehectíve ín the íong run.
Q%+!"&'!
O 1. Díscuss the measures adopted by the bank for promotíng íts retaíí products?
O2. Evaíuate the ímpact of strategíes on ñnancíaí performance of the ñrm?
Examínatíon Paper of Foreígn Trade management
IIBM Instítute of Busíness Management 6
END OF SECTION B
S+)"&' C- A//.+6 T0+&#; @8: M*#A!B
_ Thís sectíon consísts of Long Ouestíons
_ Answer aíí the questíons
_ Each questíon carríes 10 marks each.
_ Detaííed ínformatíon shouíd form the part of your answer (Word íímít 200 to 250
Words
1. What are the ma|or features of EXIM poíícy 1992 - 97?
2. Díscuss the eíements of the Capítaí Account?
3. Descríbe the state´s roíe ín Export Promotíon?
F&#+(' E7)0*'(+ M*'*(+,+'"
M%."/.+ )0&)+!-
1. It ís estabííshed to heíp countríes ín reconstructíng theír economíes ín the post
Woríd War II?
a. Internatíonaí Monetary Fund
b. Woríd Bank
c. Internatíonaí Fínance Corporatíon
d. Internatíonaí Deveíopment Assocíatíon
2. The exchange rates whích ís varíabíe between currencíes and determíned by
demand and suppíy
a. Fíoatíng Exchange Rate System c. Fíxed Exchange Rate System
b. Free Fíoat d. Managed ñoat
3. The branches whích do not maíntaín índependent foreígn currency accounts but
have powers to operate the accounts faíís under
a. Category A c. Category B
b. Category C d. Category D
4. _____ quote ís gíven by a bank to íts retaíí customers
a. Merchant Ouote c. Interbank Ouote
b. Amerícan Ouote d. European Ouote
5. To take the base rate and add the appropríate margín to ít ís an
a. Spot TT Buyíng Rate c. Spot TT Seíííng Rate
b. Forward TT Buyíng Rate d. Forward TT Seíííng Rate
6. Whích of the foííowíng ís not an assumptíon to Law of One Príce
a. Movement of Goods c. No Transactíon Costs
b. No Taríhs d. Reíatíve Form of PPP
7. The approach ín whích the vaíue of a currency ís determíned by the reíatíve
demand and suppíy of money and, the reíatíve demand and suppíy of bonds ís
a. The Monetary Approach c. Exchange Rate Voíatíííty Approach
c. The Asset Approach d. The Portfoíío Baíance Approach
8. Whích of the foííowíng ís the most ímportant currency ín the woríd after the
coííapse of Bretten Woods
a. Yen c. US Doííar
b. Sterííng d. DM
9. Optíon Forward ís a
a. Forward Contract entered aíong wíth buyíng a caíí optíon.
b. Forward Contract entered aíong wíth wrítíng a put optíon
c. Forward Contract entered by buyíng or seíííng at a future date.
d. Forward Contract entered by buyíng or seíííng over a períod.
10. Hedgíng aíms to
a. Increase Proñts c. Reduce Costs
b. Maxímíze Proñts d. Mínímíze Rísk
P*#" T1&-
1. Díherentíate between Forward Rates and Expected Spot Rates?
2. Wríte a note on ´Swaps´?
3. Díherentíate between Bíd Rate and Ask Rate?
4. Wríte a note on ´Interest Rate Paríty´?
C*!+.+" 2
Internatíonaí asset swaps can be used to achíeve ínternatíonaí díversíñcatíon wíthout
erodíng the íeveí of foreígn exchange reserves and weakeníng íocaí market
deveíopment. These asset swaps demand íímíted foreígn currency ñows, whích
ímpííes that there ís a need for oníy net gaíns or íosses to be exchanged. Asset swaps
protect foreígn ínvestors from market manípuíatíon and expropríatíon rísk and have
much íower transactíon costs than outríght ínvestments. In spíte of aíí thís, asset
swaps are constraíned by the attractíveness of íocaí markets to foreígn ínvestors, and
by varíous reguíatory íssues coveríng counter-party rísk, coííateraí consíderatíons,
accountíng, vaíuatíon, and reportíng ruíes. Examínatíon Paper of Foreígn Trade
management
Instítutíonaí ínvestors, especíaííy pensíon funds and íífe ínsurance companíes, are
becomíng the ma|or partícípants ín the ñnancíaí systems of many deveíopíng
countríes. In some cases ííke Egypt, Maíaysía or Srí Lanka, the sector ís domínated by
pubííc agencíes, but ín severaí countríes, íncíudíng Argentína, Brazíí, Chííe, Cyprus,
Hungary, Maurítíus and especíaííy South Afríca prívate ínstítutíons píay a promínent
roíe ín the accumuíatíon of íong-term ñnancíaí resources. But ín most deveíopíng
countríes, pensíon funds and other ínstítutíonaí ínvestors operate under stríct
íímítatíons on theír foreígn ínvestments, maíníy because of the shortage of foreígn
exchange reserves and the fear of capítaí ñíght. The ímposítíon of exchange controís
on ínvestment ín foreígn assets ahects the ñnancíaí performance of pensíon funds and
ínsurance companíes. Exchange controís prevent an ínternatíonaí díversíñcatíon of
rísk and a reductíon ín the exposure of contractuaí savíngs ínstítutíons to domestíc
currency and market rísk. Pensíon funds and other ínstítutíonaí ínvestors ín most
deveíopíng countríes are not generaííy aííowed to ínvest overseas. Even OECD
countríes, untíí the earíy 1980s, used to appíy tíght quantítatíve restríctíons on
overseas ínvestments by íocaí ínstítutíons. The most common ratíonaíe for such
restríctíons ís to reduce the rísk of capítaí ´ñíght´, especíaííy ínstítutíonaíízed capítaí
ñíght. Another ratíonaíe ís to ínvest the íocaííy mobííízed íong-term savíngs ´at home´
to stímuíate the deveíopment of íocaí capítaí markets and enhance empíoyment
opportunítíes for the same workers. Even ín the absence of íegaí íímítatíons on foreígn
ínvestíng by íocaí ínstítutíonaí ínvestors, there are other sígníñcant barríers-the most
ímportant are rísk of expropríatíon by foreígn governments and transactíon costs.
These costs can be so íarge that they may ohset any díversíñcatíon beneñts that
wouíd otherwíse accrue, especíaííy when reíatíveíy íow voíumes of funds are ínvoíved.
Internatíonaí díversíñcatíon ímproves the rísk/return trade-oh of ínvestment portfoííos
by reducíng the exposure to cycíícaí and íong-term structuraí shífts ín íocaí economíc
performance. In the US, where the íarge íocaí economy ís híghíy díversíñed and where
presence of gíobaí corporatíons provídes an índírect avenue of ínternatíonaí
díversíñcatíon, overseas assets are íess than 12% of totaí assets, aíthough thís
represents a sígníñcant íncrease over tíme. Removíng exchange controís and fuííy
íntegratíng wíth ínternatíonaí capítaí markets shouíd be the uítímate ob|ectíve of
poíícy ín aíí deveíopíng countríes. However, compíete removaí of exchange controís ís
often constraíned by the paucíty of foreígn exchange reserves and the fear of
stímuíatíng capítaí ñíght, especíaííy íf conñdence ín future stabíííty ís íow. Asset swaps
are cíearíy a second best optíon compared to the ííftíng of exchange controís.
Deveíopíng countríes shouíd consíder authorízíng theír ínstítutíonaí ínvestors to
engage ín ínternatíonaí asset swaps. But they shouíd authoríze to use properíy
desígned swap contracts, preferabíy based on the basket of ííquíd securítíes, permít
oníy gíobaí ínvestment banks to act as counter-partíes, requíre use of gíobaí
custodíans, properíy monítor credít rísk, maíntaín adequate coííateraí, and adopt
market-to-market vaíuatíon ruíes.
Q%+!"&'!
O 1. How does the ínternatíonaí asset swap mechanísm work? Expíaín.
O2. Díscuss the varíous beneñts of ínternatíonaí asset swaps.
C*!+.+" <
The RBI heíd the víew, for íong, that strong exchange reserves need to be maíntaíned,
due to the bad experíence Indía had to go through ín 1991. It has been a wídeíy
known poíícy of the RBI to keep Examínatíon Paper of Foreígn Trade management
accumuíatíng doííar reserves, whenever there are strong ínñows of foreígn funds,
whích aíso ensures that the rupee does not apprecíate much. The poíícy has, over the
years, resuíted ín the foreígn exchange reserves íncreasíng to over $100 bííííon.
However, thís poíícy has aíso íed to the RBI beíng crítícízed for ínterferíng ín the
foreígn exchange markets too often. Severaí |ustíñcatíons have been gíven for thís
poíícy. The ñrst one, as mentíoned ín the openíng sentence, ís the íack of conñdence
ín the ínternatíonaí archítecture. That ís, the ííquídíty support avaííabíe to a country
when ít suhers from Baíance of Payments probíems couíd be ínadequate, not avaííabíe
when needed urgentíy, or be set wíth poíítícaí precondítíons not acceptabíe to the
country facíng the probíems. The second reason ís often the desíre to contaín the rísks
that may aríse from externaí shocks. Externaí prívate capítaí often comes ín when the
country ís doíng weíí and exíts at the ñrst índícatíon of troubíe. Havíng íarge reserves
ís essentíaí to contaín the paníc condítíons that prevaíí ín the markets ín such
sítuatíons. The thírd reason ís the opportuníty created by the current excessíve
ííquídíty ín the ínternatíonaí ñnancíaí markets and the assocíated íow ínterest rates. If
the ínterest rates escaíate íater, capítaí may agaín reverse íts dírectíon, and ñow to
the markets ín the deveíoped countríes. Reserves accumuíated at present wííí be
heípfuí to wíthstand such shocks íater. The ñnaí reason, whích ís no íess ímportant, ís
that foreígn currency reserves are requíred to wíthstand the períodícaí voíatíííty ín the
foreígn exchange markets. The markets of emergíng economíes are íess emcíent and
cannot be depended upon to make automatíc ad|ustments to correct the voíatíííty ín
the markets. Símííaríy, a poíítícaííy sensítíve event ííke the Pokhran bíasts or
skírmíshes wíth Pakístan on the border can cause a íot of Non-Resídent Indíans (NRIs)
who are currentíy pumpíng money ínto the country to wíthdraw ít over níght. Such
swíngs ín sentíment can píay havoc wíth the exchange rates, and the government wííí
be caííed on to píay a stabííízíng roíe ín such a sítuatíon. The consístent accumuíatíon
of doííars has been often stoppíng the rupee from apprecíatíng, though there have
been strong ínñows of the doííar, on numerabíe counts ín the past. The resuítant
ííquídíty reíeased ínto the system used to be sterííízed by the RBI through íssue of
government securítíes. To an extent, the íncíínatíon of the banks to ínvest ín
government securítíes beyond the statutory requírements has come ín handy for the
RBI ín achíevíng stabíííty ín the exchange rate of the rupee. However, the sítuatíon
changed from earíy íast year (2003), when the rupee started apprecíatíng agaínst the
doííar. At the same tíme, the rupee has been deprecíatíng agaínst other ma|or
currencíes ííke the Euro and Yen, índícatíng that the apprecíatíon ís basícaííy due to
the weakness of the doííar agaínst these currencíes. The RBI, thís tíme, chose to aííow
some amount of apprecíatíon of the rupee, agaínst
doííar. The apprecíatíon gaíned momentum due to ínñows of doííars contínuíng, wíth
the NRIs encouraged by the gaín of the rupee. Added to thís, the príces of crude oíí
feíí, easíng the pressure on the need for payments for oíí ímports. Wíth the fear of
íosíng out due to further ímprovement ín the rupee exchange rate, exporters aíso
rushed to remít the doííars to Indía, pushíng the exchange rate further up. The
sustaíned posítíve current account baíance aíso appears to have had íts ímpact ín
generatíng posítíve sentíments for the rupee. It has been aííeged, however, that most
of the fund ñows to Indía are to gaín from the arbítrage. Investors aíways prefer to
ínvest ín a currency that ís apprecíatíng, so that they can gaín from the ínterest and
aíso from the apprecíatíon íf the currency. However, thís argument ís refuted on
severaí counts. The spread on the NRI deposíts ís capped at 2.5% and ís often not
more than forward premíum on the doííar ín the Indían market. The ínvestment by the
FIIs ín debt funds ís íímíted to $1 bííííon, aíí the FIIs put together. Thís cap prevents
them from makíng any meaníngfuí arbítrage gaíns. The varíabíííty ín ínterest rates ín
the two currencíes ínvoíved, keepíng ín víew the narrow spreads, can add rísk to the
seemíngíy rísk-íess arbítrage. In víew of these arguments, ít Examínatíon Paper of
Foreígn Trade management
can be saíd that the ñow of doííars ínto Indía ís dríven by factors other than the
strength of the rupee and the resuítant opportunítíes for arbítrage.
Q%+!"&'!
-
O 1. What measures accordíng to you the RBI shouíd take to manage rupee-doííar
exchange rates?
O2. Do you thínk apprecíatíon of rupee agaínst doííar have any sígníñcant adverse
ímpact on the Indían economy? Díscuss.
1. How many types of Exposures are there ín terms of Exchange Rísk?
2. Wríte a note on
_ Internatíonaí Monetary Fund
_ Internatíonaí Fínance Corporatíon
_ Internatíonaí Deveíopment Assocíatíon
+normation Technolo", ; Mana"ement
Part #ne:
Multiple Choices:
1. Com#uter crime is defined b!
a. %I/P
b. -'%/
c. Both MaG < MbG
d. None of the above
. Protot!#ing is sometimes called
a. %-5
b. 9-5
c. 9%5
d. None of the above
&. Eirtual realit! is also called
a. Com#uterFsimulated realit!
b. Neurons
c. -oftware robots
d. /ele#resence
,. % trac(ball is a stationar! device related to the
a. >e!board
b. Jo!stic(
c. 3ouse
d. %ll of the above
.. "andFheld microcom#uter devices (nown as
a. Personal digital assistance
b. -u#er com#uters
c. Both MaG < MbG
d. None of the above
1. >3- stands for
a. >nowledge memor! s!stems
b. >nowledge ma(ing s!stem
c. >nowledge management s!stems
d. None of the above
6. % basic s!stem com#onent of information s!stems is
a. 3emor!
b. Processing
c. -torage
d. %ll of the above
7. "ow man! characters uses the 3IC9 s!stem
a. 1. characters
b. 17 characters
c. , characters
d. 1, characters
:. *BC5IC stands for
a. *=tended Binar! Coded 5ecimal Interchange Code
b. *=tended Binar! Coded 5ecimal Instruction Code
c. *=tended Binar! Coded 5ata Interchange Code
d. *lectronic Binar! Coded 5ata Interchange Code
1;. /he smallest element of data is called
a. B!te
b. Bit
c. 4iga b!te
d. None of the above
Part Two:
1. 'rite a note on OCache 3emor!H.
. 'hat do (now about O%ssemblerH8
&. 'rite a note on OO#tical Character 9ecognitionH.
,. *=#lain the term O*lectronic commerceH.
Caselet 1
It began as a trading site for nerds? the newl! $obless? homeFbound housewives? and bored retirees to sell
sub#rime goods: collectibles and attic trash. But eBa! Mwww.eba!.comG )uic(l! grew into a teeming
mar(et#lace of &; million? with its own laws and norms? such as a feedbac( s!stem in which bu!ers and
sellers rate each other on each transaction. 'hen that wasnHt )uite enough? eBa! formed its own #olice force
to #atrol the listings for fraud and (ic( out offenders. /he com#an! even has something a(in to a ban Its
Pa!#al #a!mentF#rocessing unit allows bu!ers to ma(e electronic #a!ments to eBa! sellers who canHt afford
a merchant credit card account. AeBa! is creating a second? virtual econom!?B sa!s '. Brian %rthur? an
economist at thin( tan( -anta 0e Institute. AItHs o#ening u# a whole new medium of e=change.B eBa!Hs
#owerful vorte= is drawing diverse #roducts and #la!ers into its #rofitable econom!? driving its sellers into
the heart of traditional retailing? a N trillion mar(et. %mong eBa!Hs 1 million dail! listings are #roducts
from giants such as -ears 9oebuc(? "ome 5e#ot? 'alt 5isne!? and even IB3. 3ore than a )uarter of the
offerings are listed at fi=ed #rices. /he result? sa!s Bernard ". /enenbaum? #resident of a retail bu!out firm?
is A/he!Ore coming right for the mainstream of the retail business.B -o what started out as a #ure consumer
auction mar(etF#lace is now also becoming a big time businessFtoFconsumer and even businessFtoFbusiness
bazaar that is earning record #rofits for eBa!Hs stoc(holders. %nd as the eBa! econom! e=#ands? C*O 3eg
'hitman and her team ma! find that managing it could get a lot tougher? es#eciall! because eBa!Hs millions
of #assionate and clamorous users demand a voice in all ma$or decisions. /his #rocess is clear in one of
eBa!Hs most cherished institutions: the voice of the Customer #rogram. *ver! cou#le of months? the
e=ecutives of eBa! bring in as man! as a dozen sellers and bu!ers? es#eciall! its high selling APower
-ellers?B to as( them )uestions about how the! wor( and what else eBa! needs to do. %nd at least twice a
wee(? it holds hourFlong teleconferences to #oll users on almost ever! new feature or #olic!? no matter how
small. /he result is that users feel li(e owners? and the! ta(e the initiative to e=#and the eBa! econom! S
often be!ond managementHs wildest dreams. -tung b! an aeros#ace downFturn? for instance? machineFtool
sho# 9eliable /ools Inc.? tried listing a few items on eBa! in late 1::7. -ome were huge? hul(ing chun(s of
metal? such as a N6?;;; ?&;;F#ound milling machine. Det the! sold li(e ice cream in %ugust. -ince then?
sa!s 9eliableHs auction manager? 9ichard -mith? the com#an!Hs eBa! business has Aturned into a monster.B
Now the Irwindale MCaliforniaG sho#Hs N1 million in monthl! eBa! sales constitutes 6.@ of its overall
business. Pioneers such as 9eliable #romoted eBa! to set u# an industrial #roducts mar(et#lace in Januar!
thatHs on trac( to to# N.;; million in gross sales this !ear./hen there is eBa! 3otors. 'hen eBa! manager
-imon 9othman first recognized a mar(et for cars on cars on eBa! in earl! 1:::? he )uic(l! realized that
such highFtic(et items would re)uire a different strateg! than sim#l! o#ening a new categor!. /o $um#Fstart
its su##l! of cars and customers? eBa! immediatel! bought a collectorFcar auction com#an!? >ruse
International? for N1.; million in stoc(? and later did a deal to include listings from online classifieds site?
%uto/rader.com. 9othman also arranged insurance and warrant! #lans? an escrow service? and shi##ing and
ins#ection services./his a##roach wor(ed wonder. -ales of cars and car #arts? at a N. billionF#lus annual
cli#? are eBa!Ps single largest mar(et. /hat has cata#ulted eBa! in front of No. 1 C.-. auto dealer
%utoNation in number of used cars sold. %bout half of the sellers are bric(FandFmortar dealers who now
have a much larger audience than their local area. AeBa! is b! far one of m! better sources for bu!ers?B sa!s
Bradle! Bonifacius? Internet sales director at 5ean -tallings 0ord in Oa( 9idge? /ennessee. %nd for now? the
big cor#orations? which still account for under . #ercent of eBa!Hs gross sales? seem to be bringing in more
customers then the! steal. 3otorola Inc.? for e=am#le? hel#ed (ic( off a new wholesale business for eBa!
last !ear? selling e=cess and returned cell #hones in large lots. /han(s to the initiative of established
com#anies such as 3otorola? eBa!Hs wholesale business $um#ed ninefold? to N& million? in the first
)uarter.%s businesses on eBa! grow larger? the! s#ur the creation of even more businesses. % new arm! of
merchants? for e=am#le? is ma(ing a *=amination Pa#er of Information /echnolog!
business out of selling on eBa! for other #eo#le. 0rom almost none a cou#le of !ears ago? these so called
/rading %ssistants now number nearl! &?;;;. /his (ind of organic growth ma(es it e=ceedingl! though to
#redict how far the eBa! econom! can go. 'hitman #rofesses not to (now. A'e donHt actuall! control this?B
she admits. A'e are not building this com#an! b! ourselves. 'e have a uni)ue #artner S million of #eo#le.B
1. 'h! has eBa! become such a successful and diverse online mar(et#lace8 Eisit the eBa! website to hel#
!ou answer? and chec( out their man! trading categories? s#ecialt! sites? international sites? and other
features.
. 'h! do !ou thin( eBa! has become the largest onlineLoffline seller of used cars? and the largest online
seller of certain other #roducts? li(e com#uters and #hotogra#hic e)ui#ment8
Caselet 2
ItHs no secret that somewhere in a bac( room in the t!#ical 0ortune .;; com#an!? thereHs a team of
anal!tical wizards running so#histicated data mining )ueries that mine for gems such as data about about the
com#an!Hs best customers S those to# ; #ercent of clients that #roduce 7; #ercent of the com#an!Hs #rofits.
/hese $ewels can be a businessHs most valuable intellectual #ro#ert!? which ma(es them ver! valuable to
com#etitors. 'hatHs to #revent that data set from wal(ing out the door or falling into the wrong hands8
-ome times? not much. 3an! com#anies lac( the internal controls to #revent that information from lea(ing.
/he #roblem is that such data is as hard to #rotect as it is to find. Owens < 3inor Inc. Mwww.ownesF
minor.comG? a N, billion medical su##lies distributor? counts some of the nationHs largest health care
organizations among its customers. In late 1::1? it started mining data internall! using business intelligence
software from Business Ob$ects -%. A0rom the beginning? we were aware of securit! issues around this
strategic information about our o#erations?B sa!s 5on -toller? senior director of information s!stems at
Owens < 3inor. A0or e=am#le? a sales e=ecutive in 5allas should onl! have access to anal!ses from his
region.B It is alwa!s #ossible that someone who has legitimate access will abuse that trust? but com#anies
can minimize that #otential b! strictl! limiting access to onl! those who need it. thus? Owens < 3inor uses
roleFlevel securit! functions that clearl! define who has access to which data. A/his meant we had to build a
se#arate securit! table in our Oracle database?B sa!s -toller. % few !ears later? when the com#an! wanted to
o#en its s!stems to su##liers and customers? securit! became even more im#ortant. In 1::7? Owens <
3inor moved )uic(l! to ta(e advantage of 'ebFintelligence software from Business Ob$ects thatHs designed
to 'ebFenable business intelligence s!stems. /he result was 'isdom? an e=tranet 'eb #ortal that lets
Owens < 3inorHs su##liers and customers access their own transactional data and generate so#histicated
anal!ses and re#orts from it.AIt businessFtoFbusiness transactions? securit! is (e!?B sa!s -toller. A'e had to
ma(e absolutel! sure that Jhonson < Jhonson? for e=am#le? could not see an! &3Hs information. /his meant
we had to set u# s#ecific customer and su##lier securit! tables? and we had to maintain new? secured
database views using the Oracle 5B3- and Business Ob$ects.B'isdom was such a success that Owens <
3inor decided to go into the intelligence business with the launch of wisdom in the s#ring of ;;;. A'e
ca#ture data out of a hos#italHs materials management s!stem and load it into our data warehouse?B -toller
e=#lains. % hos#ital can then ma(e full use of its businessFintelligence software to mine and anal!ze
#urchasing data. Owens < 3inor receives a licensing and maintenance fee for the services.2a!ers of
securit! and encr!#tion re)uire a considerable amount of overhead data for s!stems administration. Both
-toller and 3ichael 9asmussen? an anal!st at 4iga Information 4rou#? sa! thatHs the main reason securit!
concerns about business intelligence are often swe#t under the car#et. /he issues of authentication
Midentif!ing the userG and authorization Mwhat things the user is allowed to doG must be addressed? usuall!
across different a##lications? 9asmussen sa!s? adding? A-!stems *=amination Pa#er of Information
/echnolog!
administration can be a real nightmare.BA'e are going through some of this?B sa!s 5avid 3erager? director
of 'eb services and cor#orate a##lications at Eivendi Cniversal 4ames Inc. Mwww.vugames.comG. AOur
business intelligence needs more securit! attention.B Business intelligence re#orts come from two s!stems:
an OracleFbased for budgets on a 3icrosoft -K2 -erver database. /he heart of the business intelligence
s!stem consists of 3icrosoftHs O2%P a##lication and software from Comshare Inc. that #rovides the 'ebF
based front end for the anal!tics. AOur budget teams use these re#orts to do realFtime anal!ses?B sa!s
3erager. 9odger -a!les? manager of data warehousing at Eivendi Cniversal? sa!s one wa! to secure such a
s!stem is to assign roles to all users within the 3icrosoft a##lication. 9oles determine #recisel! what a user
is allowed to see and do and are usuall! managed within a director!. If !our com#uting architecture is
amenable to a single? centralized director! that su##orts roles? this ma! be an attractive solution. A/he
#roblem is that once !ou have over ,; distinct roles? !ou run into #erformance issues? and we have
identified about 6; user roles?B -a!les e=#lains. "e sa!s thereHs wa! around this difficult!. AI thin( we are
going to use a combination of 'eb #ortals and user roles. % user would sign on through a #articular 'eb
#ortal? which would effectivel! #lace the user in a role categor!. /his reduces the overhead burden on the
a##lication?B sa!s -a!les.
1. 'h! have develo#ments in I/ hel#ed to increase the value of the data resources of man! com#anies8
. "ow can com#anies use I/ to meet the challenges of data resources securit!8
1. 'hat #otential securit! #roblems do !ou see in the increasing use of intranets and e=tranets in business8
'hat might be done to solve such #roblems8 4ive several e=am#les8
. -u##ose !ou are a manager being as(ed to develo# eFbusiness and eFcommerce a##lications to gain a
com#etitive advantage in an im#ortant mar(et for !our com#an!. 'hat reservations might !ou have about
doing so8 'h!8
8ata-ase Mana"ement S,stems
Part #ne:
Multiple choices:
1. /he normal language of database is
a. P"P
b. -K2
c. CYY
d. Java
. 552? a database s!stem language
a. Creates table
b. 3ani#ulates table
c. Cannot wor( with table
d. None
&. -!mbol for one to one relationshi# is\\\\\\\\\\\\\\\\\\\\\
,. "5B3- stands for
a. "ello 5B3-
b. "ierarchical 5B3-
c. "!#er 5B3-
d. "igh 5B3-
.. In %nti $oining of 9]- means \\\\\\\\\\\\\\\\\\\\\\\
Part Two:
1. 'hat are A0oreign >e!sB8
. 5ifferentiate between O5B3-H and O95B3-H.
&. 'rite the s!nta= to Insert charts into a table from another table.
,. 'hat are O%rmstrongHs %=iomsH.
.. 'rite short OBo!ceFCodd Normal 0orm MBCN0GH.
1. *laborate the testing of -erializabilit! techni)ues with e=am#le.
. *=#lain the wor(ing of loc( manager.
&. 'hat is deadloc(8 "ow is a deadloc( detected8 *numerate the method for recover! from the
deadloc(.
,. *=#lain wh! a transaction e=ecution should be atomic. *=#lain %CI5 #ro#erties? considering the
following transaction.
Ti: read M%GR
% : X %F .;R
'rite M%GR
9ead MBGR
B : X B Y .;R
'rite MBG
1. /he "9 manager has decided to raise the salar! for all the em#lo!ees in de#artment number &; b!
;... 'henever an! such raise is given to the *3P2OD**-? a record for the same is maintained in the
*3PF9%I-* table. It includes the em#lo!ee number? the date when the raise was given and the actual
raise. 'rite a P2L-K2 bloc( to u#date the salar! of each em#lo!ee and insert a record in the *3PF
9%I-* table.
. 9etrieve the salesman name in ONew 5elhiH whose efforts have resulted into atleast one sales
transaction.
/able Name :
-%2*-F3%-/
Salesman<no
5ame Cit,
B;;;1
B;;;
B;;;&
B;;;,
B;;;.
Puneet >umar
Pravin >umar
9adha >rishna
Bri$esh >umar
/ushar >umar
Earanasi
Earanasi
New 5elhi
New 5elhi
%llahabad
B;;;1
B;;;6
Nitin >umar
3ahesh >umar
%llahabad
4r. Noida
+nternational Business Mana"ement
Part #ne:
Multiple choices:
1. 'hat is the series consideration for strateg! im#lementation8
a. -trategic orientation
b. 2ocation
c. 5imensions
d. Both MaG < MbG
. /he ma$or activit! in global mar(eting is
a. Pricing #olicies
b. Product lines
c. 3ar(et assessment
d. %ll of the above
&. /he third OPH in the international mar(eting mi= is
a. Product
b. Price
c. Promotion
d. Place
,. /he *uro#ean *conomic Communit! was established
a. 1:.7
b. 1:6.
c. 1:16
d. 1:.6
.. *nvironment Protection %ct
a. 1:71
b. 1:16
c. 1::;
d. None of the above
1. Peo#leHs attitude toward time de#end on
a. 2anguage
b. 9elationshi#
c. Culture
d. %ll of the above
6. Culture necessitates ada#tion of
a. Product
b. Price
c. Promotion
d. Place
7. /he legal term for brand is
a. -!mbol
b. Name
c. /rade mar(
d. %ll of the above
:. 05I flows are often a reflection of rivalr! among firms in
a. 4lobal mar(et
b. Indian mar(et
c. International mar(et
d. None of the above
1;. I-O certification is
a. *=#ensive #rocess
b. *laborate #rocess
c. *valuative Process
d. Both MaG < MbG
Part Two:
1. 'hat do understand b! OInwardForiented PoliciesH8
. 'hat is O0actor *ndowments /heor!H8
&. *=#lain the term O/otalitarianismH.
,. 'rite about OPersistent 5um#ingH.
Caselet 1
T/E EU=S 92GG+5G C#MPET+T+>E5ESS
In a re#ort #roduced for the *uro#ean Commission? #ublished in November 1::7? it was argued that the *C
lags behind the C-% and Ja#an on most measures of international com#etitiveness. 4ross domestic #roduct
#er ca#ita? sometimes used as an indicator of international com#etitiveness at the countr! level? was && #er
cent lower in the *C as a whole than in the C-% and 1& #er cent lower than in Ja#an. /he *CHs #oor record
in creating em#lo!ment was singled out for #articular criticism. %s this a##eared to a##l! across the board
in most industrial sectors? it suggested that the *CHs #oor #erformance related to the business environment
in general and? in #articular? to the infle=ibilit! of *uro#eHs labour mar(ets for goods and services. %
shortage of ris( ca#ital for advanced technological develo#ment and high cost and inefficienc! of *uro#eHs
financial services were also highlighted b! the re#ort. 0or one reason or another? *uro#ean industries
generall! lag behind in technolog! industries. If measured b! the number of inventions #atented in at least
two countries? the C-% is well ahead of most *uro#ean countries? as well as Ja#an. 5es#ite these
shortcomings? the re#ortHs authors focus attention on fle=ible mar(ets? mar(et liberalisation? and the creation
of a com#etitive business environment rather than on targeted intervention b! the *C or national authorities.
1. Is gross domestic #roduct #er ca#ita a useful indicator of International com#etitiveness in the *C8
. Is it fair to #oint the blame for the *CHs #oor international com#etitiveness at infle=ible labour mar(ets?
regulated goods and services mar(ets? and a general lac( of com#etition8 'hat alternative e=#lanations
might be suggested8
Caselet 2
PE!U
Peru is located on the west coast of -outh %merica. It is the third largest nation of the continent Mafter Brazil
and %rgentinaG? and covers almost .;;?;;; s)uare miles Mabout 1, #er cent of the size of the Cnited -tatesG.
/he land has enormous contrasts? with a desert Mdrier than the -aharaG? the towering snowFca##ed %ndes
mountains? s#ar(ling grassFcovered #lateaus? and thic( rain forests. Peru has a##ro=imatel! 6 million
#eo#le? of which about ; #er cent live in 2ima? the ca#ital. 3ore Indians Mone half of the #o#ulationG live in
Peru than in an! other countr! in the western hemis#here. /he ancestors of PeruHs Indians were the famous
Incas? who built a great em#ire. /he rest of the #o#ulation is mi=ed and a small #ercentage is white. /he
econom! de#ends heavil! on agriculture? fishing? mining? and services. 45P is a##ro=imatel! N11. billion
and #er ca#ita income in recent !ears has been around N,?&;;. In recent !ears the econom! has gained some
relative strength and multinationals are now beginning to consider investing in the countr!. One of these
#otential investors is a large New Dor( based that is considering a N. million loan to the owner of a
Peruvian fishing fleet. /he owner wants to refurbish the fleet and add one more shi#. 5uring the 1:6;s? the
Peruvian government nationalised a number of industries and factories and began running them for the
#rofit of the state. In most cases? these stateFrun ventures became disasters. In the late 1:6;s? the fishing
fleet owner was given bac( his shi#s and are getting old and he needs an influ= of ca#ital to ma(e re#airs
and add new technolog!. %s he e=#lained it to the N*' DO9> ban(er: Afishing is no longer $ust un art.
/here is a great deal of technolog! involved. %nd to (ee# costs low and be com#etitive on the world
mar(et ? !ou have to have the latest e)ui#ment for both locating as well *=amination Pa#er of
International Business 3anagement
as catching and then loading and unloading the fish.B"aving reviewed the fleet ownerH o#eration? the large
multinational ban( believes that the loan is $ustified. /he financial institution is concerned ? however ? that
the Peruvian government might ste# in during the ne=t cou#le of !ears and again ta(e over the business . If
this were to ha##en? it might ta(e an additional decade? for the loan to be re#aid. If the government were to
allow the fleet owner to o#erate the fleet the wa! he has over the last decade? the loan could be ra#id within
seven !ears. 9ight now? the ban( is deciding on the s#ecific terms of the agreement. Once these have been
wor(ed out ? either a loan officer will fl! down to lima and close the deal or the owner will be as(ed to come
to N*' DO9> for the signing. 'hichever a##roach is used? the ban( realize that final ad$ustments in the
agreement will have to be made on the s#ot. /herefore? if the ban( sends a re#resentative to 2ima? the
individual will have to the authorit! to commit the ban( to s#ecific terms. /hese final matters should be
wor(ed out within the ne=t ten da!s.
1. 'hat are some current issues 0acing Peru8 'hat is the climate for doing business in Peru toda!8
. 'ould the ban( be better off negotiating the loan in New Dor( or in 2ima8 'h!8
1. Imagine that !ou are the director of a ma$or international lending institution su##orted b! funds from
member countries. 'hat one area in newl! industrialized and develo#ing economics would be !our #riorit!
for receiving develo#ment aid8 5o !ou sus#ect that an! member countr! will be #oliticall! o##osed to aid
in this area8 'h! or 'h! not8
. /he #rinci#le #roblem in anal!sing different forms of e=#ort financing is the distribution of ris(s between
the e=#orter and the im#orter. %nal!se the following e=#ort financing instruments in this res#ect:
MaG 2etter of Credit
MbG Cash in advance
McG 5raft
MdG Consignment
MeG O#en %ccount
Glo-al Mar3etin" Mana"ement
Part #ne:
Multiple Choices:
1. %ll the ethnocentric orientations are collectivel!
called\\\\\\\\\\\\\\\\\\\\\\\.
. Presentl! number of members countries in O*C5 are
a. 1
b. ;
c. ,
d. :
&. If the value be OaH ? benefit be ObH and the #rice be OcH then relation between the threes is given b!
a. aXbLc
b. aXcLb
c. aXbYc
d. none
,. If the confidence limit be OtH standard deviation be ObH and the error limit be OcH then the sam#le size will
be given b!
a. nXtYbLc
b. nXt^bLc
c. nXt^cLb
d. none
.. %ccording to Bac(er s#ielvogel and BatesHs global scan the segment content of %chiever is
a. 1
b.
c. 1&
d. 17
1. C%/ stands for \\\\\\\\\\\\\\\\\\\\\\\\\\\\.\
6. Cave dwellers are\\\\\\\\\\\\\\\\\\\\\\\\\\\\
7. 2I0O stands for life in fire o#tion.M/L0G
*=amination Pa#er of International Business 3anagement
:. -tarbursts are
\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\
1;. Name one of the common wealth of inde#endent -tates MCI-G
\\\\\\\\\\\\\\\\\..
Part Two:
1. 'rite short A"ofstedeHs Cultural /!#olog!B.
. 'rite a short note on A5iffusion /heor!B.
&. %ccording to A5Harc! 3assius Benton < BowlesHs *uroconsumer -tud!B. 'ho are disaffected survivors.
,. 'hat do !ou understand b! APigg!bac( 3ar(etingB.
Caselet 1
0hich Compan, +s Transnational1
0our senior e=ecutives of com#anies o#erating in man! countries s#ea(s:
C#MP256 2
'e are transnational com#an!. 'e sell our #roducts in over 7; countries? and we manufacturer in 1,
countries. Our overseas subsidiaries manage our business in their res#ective countries. /he! have com#lete
res#onsibilit! for their countr! o#erations including strateg! formulation. 3ost of the (e! e=ecutives in our
subsidiaries are hostFcountr! nationals? although we still rel! on homeFcountr! #ersons for the C*O and
often the C0O Mchief financial officerG slots. 9ecentl!? we have divided the world regions and the Cnited
-tates. *ach of the world regions re#orts to our world trade organization? which is res#onsible for all of our
business outside Cnited -tates.
/he overseas com#anies are res#onsible for ada#ting to the uni)ue mar(et #references that e=ist in their
countr! or region and are )uite autonomous. 'e are #roud of our international reach: 'e manufacture not
onl! in the Cnited -tates but also in *uro#e and the Cnited >ingdom? 2atin %merica? and %ustralia.
'e have done ver! well in overseas mar(ets? es#eciall! in the highFincome countries with the e=ce#tion of
Ja#an. 'e would li(e to enter the Ja#anese mar(et? but letHs face it? Ja#an is a #rotected countr!. /here is no
level #la!ing field? and as !ou no doubt (now? the Ja#anese have ta(en advantage of the #rotection the!
en$o! in their home countr! to launch an e=#ort drive that has been a *=amination Pa#er of International
Business 3anagement
curse for us. Our industr! and our home countr! Mthe Cnited -tatesG has been a #rinci#le target of the
Ja#anese? who have ta(en a real bite out of our mar(et share here in the Cnited -tates. 'e are currentl!
lobb!ing for more #rotection from Ja#anese com#etition.
C#MP256 B
'e are a uni)ue transnational media com#an!. 'e do not dominate an! #articular area? but we have an
im#ortant #resence on three continents in magazines? news#a#ers? and television. 'e have a global strateg!.
'e are a global communications and entertainment com#an!. 'eHre in the business of informing #eo#le
around the world on the widest #ossible basis. 'e (now how to serve the needs of our customers who are
readers? viewers? and advertisers. 'e transfer #eo#le and mone! across national boundaries? and we (now
how to ac)uire and integrate #ro#erties as well as how to start u# a new business. 'e started out as
%ustralian? and then the weight of our main effort is in the Cnited -tates. 'e go where the o##ortunit! is
because we are mar(et driven.
-ure? there are lots of %ustralians in the to# management of this com#an!? but we started in %ustralia? and
those %ussies (now our business and the com#an! from the ground u#. 2oo( around and !ouHll see more
and more %mericans and Brits ta(ing the to# $obs. 'e stic( to *nglish because I donHt believe that we could
reall! succeed in foreign #rint or broadcast. 'e (now *nglish? and so far the *nglishFs#ea(ing world is big
enough for us. /he world is shrin(ing faster than we all realize? and to be in communications is to at the
center of all change. /hatHs the e=citement of what weHre doing S and also the im#ortance.
C#MP256 C
'eHre a transnational com#an!. 'e are committed do being the numberFone com#an! in our industr!
worldwide. 'e do all of our manufacturing in our home countr! because we have been able to achieve the
lowest cost and the highest )ualit! in the world b! (ee#ing all engineering and manufacturing in order to
maintain our cost advantage. 'e are doing this reluctantl! but we believe that the essence of being global is
dominating mar(ets and we #lan to do whatever we must do in order to maintain our #osition of leadershi#.
It is true that all of our senior managers at home and in most of our foreign mar(ets are homeFcountr!
nationals. 'e feel more comfortable with our own nationals in (e! $obs because the! s#ea( our language
and the! understand the histor! and the culture of our com#an! and our countr!. It would be difficult for an
outsider to have this (nowledge? which is so im#ortant to smoothFwor(ing relationshi#s.
C#MP256 8
'e are a transnational com#an!. 'e have , nationalities re#resented on our head)uarters staff? we
manufacture in 7 countries? we mar(et in : countries? and we are committed to leadershi# in our industr!.
It is true that we are bac(ing off on our commitment to develo# business in the /hird 'orld. 'e have found
it e=tremel! difficult to increase sales and earnings in the /hird 'orld? and we have been criticized for our
aggressive mar(eting in these countries. It is also true that onl! homeFcountr! nationals ma! own voting
shares in our com#an!. -o? even though we are global? we do have a home and a histor! and we res#ect the
traditions and sensibilities of our home countr!.
'e want to maintain our numberFone #osition in *uro#e? and over time achieve the same #osition of
leadershi# in our target mar(ets in North %merica and Ja#an. 'e are also (ee#ing a close e!e on the
develo#ing countries of the world? and whenever we see a countr! ma(ing the move from low income to
lower middle? or from lower middle to u##er middle? or from u##er middle to high income we commit our
best effort to e=#and our #ositions? or? if we donHt have a #ositions? to establish a #osition. -ince our
ob$ective is to achieve an undis#uted leadershi# #osition in our industr!? we sim#l! cannot afford not to be
in ever! growing mar(et in the world.
'e have alwa!s had a *uro#ean C*O? and this will #robabl! not change. /he e=ecutives in this com#an!
from *uro#e tend to serve all over the world? whereas the e=ecutives from the Cnited -tates *=amination
Pa#er of International Business 3anagement
and Ja#an serve onl! in their home countries. /he! are ver! able and valuable e=ecutives? but the! lac( the
necessar! #ers#ective of the world re)uired for the to# $obs here at head)uarters.
1. 'hich com#an! is transnational8
. 'hat are the attributes of a transnational com#an!8
&. 'hat is the difference between a domestic? international? multinational? global? and transnational
com#an!8
,. %t what stage of develo#ment is !our com#an! and !our line of business toda!8 'here should !ou be8
Caselet 2
Par3er Pen Co& ?2@
+5T!#8UCT+#5
/he meeting at sunn! Palm Beach concluded with nar! a whim#er of dissent from its #artici#ants. %fter
!ears of being run as a com#letel! decentralized com#an! whose managers in all corners of the world
en$o!ed a high degree of fle=ibilit!? Par(er Pen Co.? Janesville? 'isconsin? was forced to ree=amine itself.
/he com#an! had en$o!ed decade after decade of success until the earl! 1:7;s. B! this time? Par(er faced
strong com#etitive threats and a deteriorating internal situation. % new management team was bought in
from outside the com#an! S an un#recedented ste# for what had been until then an essentiall! famil!Frun
business. %t the 3arch 1:7, Palm Beach meeting? this new grou# of decision ma(ers would outline a course
of action that would ho#efull! set Par(er bac( on a #ath to success.
/he men behind the new strateg! were su#remel! confident of its chances for success S and with good
reason. *ach was recognized as a highl! s(illed #ractitioner of international business and their combined
e=tensive e=#erience gave them an air of invincibilit!. /he! had been recruited from larger com#anies? had
left highF#a!ing? rewarding $obs? and each had come to Janesville with a grand sense of #ur#ose. 0or
decades? Par(er had been a dominant #la!er in the #en industr!. In the earl! 1:7;s? hoeFever? the com#an!
had seen its mar(et share dwindle to a mere 1 #ercent and? in 1:7? net income #lunged a who##ing 1;
#ercent.
/o reverse this decline? Par(er recruited James Peterson? an e=ecutive vice #resident at 9.2. 9e!nolds? as the
new #resident and C*O. Peterson hired 3anville -mith as #resident of the writing instruments grou# at
Par(er -mith? who was born in *cuador and had a broad international bac(ground? came from &3 where he
had been a##ointed division #resident at the tender age of &;. 9ichard -wart was vice #residentLmar(eting
of the writing instruments grou#. "e s#ent 11 !ears at the advertising agenc! BB5O and was an e=#ert on
mar(eting #lanning and theor!. Jac( 3ar(s was head of writing instruments advertising. 3ar(s came to
Par(er from 4illette? where? among other things? he assisted in the worldwide mar(eting of Pa#er 3ate
#ens. 9ounding out the team was Carlos 5el Nero? manager of global mar(eting #lanning? who brought with
him considerable international e=#erience at 0isherFPrice. *ach of these men was convinced that Par(er
would right itself b! following the #lan the! unveiled at Palm Beach.
2 B!+E% /+ST#!6 #% P2!7E! PE5
/he A9olls 9o!ceB of the Pen Industr!
/he Par(er name has been identified with #ens since 1777 when 4eorge -. Par(er delighted in(Fs#lotched
#en users ever!where b! introducing a lea(#roof fountain model called the Par(er 2uc(! Curve. Par(er Pen
would eventuall! blossom into %mericaHs? if not the worldHs? largest and bestF(nown #en mar(et. Par(erHs
#roducts? which would eventuall! include ball#oint #ens? feltFti# #ens? *=amination Pa#er of International
Business 3anagement
des( sets? mechanical #encils? in(s? leads? erasers? and? of course? the fountain #en? were also (nown for
their #rice tags. In 1:1? for e=am#le? Par(er introduced the 5uofold #en. /he 5uofold? even though it was
com#arable to other N& #ens on the mar(et? was e=travagantl! #riced at N6. Par(er was able to charge a
#remium #rice because of its re#utation for )ualit! and st!le? and its s(ill in #ositioning #roducts in the to#
#rice segment.
Par(erHs #osition as %mericaHs leading #en mar(er was solidified during the !ears when the #en was mainl!
viewed as a gift item. "igh school and college graduates in the 1:,;s and 1:.;s? for e=am#le? were )uite
li(el! to receive a Par(er A.1B fountain #en M#riced at < 1..;G commemorating their achievement. Indeed?
it was with a A.1B that 4eneral 5ouglas 3ac%rthur signed the Ja#anese Peace /reat! in 1:,.. Par(erHs
st!lish #roducts and high #rofile name would (ee# it at the to# of the #en mar(et until the late si=ties as well
as a few foreign brands? (noc(ed them out of first #lace once and for all.
Of course? Par(er would not have lost its hold on the mar(et had it not made some oversights along the wa!.
In addition to a more com#etitive environment? Par(er failed to come to terms with a fundamental change in
the #en mar(et S the develo#ment of the dis#osable? ball#oint mar(et. 'hen Par(er unveiled the N. A6.B
#en in 1:1&? it showed that it remained committed to su##l!ing high showed that it remained committed to
su##l!ing high #riced #ens to the u##er end of the mar(et. %s the 1:1;s wore on? a clear trend toward chea#
ball#oint and softFti# #ens develo#ed. 3eanwhile? Par(erHs onl! ultimatel! successful addition to its #roduct
range in the late si=ties was the A6.B Classic line? !et another highF#riced #en.
% Brie 0lirtation with 2owFPriced Pens
Par(er did? however? ma(e an effort to com#ete in the lower #rice segment of the mar(et in the late 1:1;s
onl! to see it fail. In an attem#t to ca#italize on the trend toward ine=#ensive #ens? Par(er introduced the /F
Ball Jotter? #riced at N1. :7. /he success of the Jotter led it to move even further down the #rice ladder when
it ac)uired *vershar#. 'hereas the Jotter had given Par(er reason to believe it could ma(e the shift from
#ric! #ens to chea# #ens with little or no difficult!? the *vershar# e=#erience #roved to be different. 4eorge
Par(er? a grandne#hew of the com#an!Hs founder and #resident of Par(er at the time? stated the reasons for
the *vershar# failure? as well as its conse)uences:
%ll the mar(et research surve!s said go lower? go lower? go lower? thatHs where the business is. -o I said?
O4o lower8 0ine. But we donHt (now how.H 'e bought *vershar# and tried to run it ourselves? and we
couldnHt do it. our #eo#le $ust couldnHt thin( in terms of big units? and the! didnHt (now how to sell #eo#le
on the lowerF#riced end of the business S grocers? su#ermar(ets? rac( $obbers. /he result was? Bic and Pa#er
3ate were cleaning u# in the lowerF#riced end? Cross in the high? and Par(er was getting u#? but our costs
went u# faster? and our #rofits were s)ueezed.
/he 1:6;s: /he Illusion of -uccess
5es#ite the difficulties Par(er encountered when it left its niche in the u##er end of the #en mar(et? the
com#an! e=#erienced a health! #eriod of growth and #rofitabilit! for most of the 1:6;s. 5emand for its
#roducts remained strong? and its worldwide mar(ets e=#anded significantl! due to a rise in consumer
income and increasing literac! rates in much of the /hird 'orld. Par(er also chose to diversif! during this
decade? and its most noteworth! ac)uisition? 3an#ower? Inc.? #roved to be a tem#orar!Fhel# firm? Par(er
was the slightl! more #rofitable of the two. 'ith the boom in tem#orar! services in the late seventies and
earl! eighties? however? 3an#ower ecli#sed Par(er in sales and earnings and eventuall! subsidized its
#arent com#an! during down #eriods.
'h! did #ar(er fall from its #osition of leadershi# in the writing instrument mar(etB there were man!
reasons? and one of the most im#ortant was the wea(ening of the C.-. dollars. %t its #ea(? Par(er accounted
for half of all C.-. e=#orts of writing instruments and 7; #ercent of its total sales *=amination Pa#er of
International Business 3anagement
came from 1., foreign countries. Par(er was es#eciall! strong in *uro#e? most #articularl! in the Cnited
>ingdome. 'hen sales in the strong *uro#ean currencies were translated into dollars? Par(er earned huge
#rofits.
/he downside of a wea( dollar? however? was that it gave Par(er the illusion that it was a wellFrun com#an!.
In fact? throughout the 1:6;s? Par(er was a model of inefficienc!. 3anufacturing facilities were dated and
inefficient. Production was so erratic that the mar(eting de#artment often had no idea what t!#e of #ens the!
would be selling from !ear to !ear or even month to month. Cnder the leadershi# of 4eorge Par(er? nothing
was done b! com#an! head)uarters to u#date these facilities or to develo# new #roducts. %s a result?
subsidiaries and distributors around the world saw fit to develo# their own #roducts. B! the end of 4eorge
Par(erHs reign? the com#an!Hs #roduct line included .;; writing instruments.
/hat distant subsidiaries would have the leewa! to ma(e such decisions was not at all unusual at Par(er? for
it had long been (nown as one of the most globall! decentralized com#anies in the world. 5ecentralization ?
in fact? was something that Par(er too( #ride in and considered to be vital to its success as a multinational.
Det it was this ver! conce#t that Peterson and his new management team would hold to be res#onsible for
much of what ailed Par(er Pen.
P2!7E!=S G9#B29 #PE!2T+#5S BE%#!E PETE!S#5
In addition to having a hand in manufacturing and #roductFline decisions? Par(erHs subsidiaries develo#ed
their own mar(eting strategies. 3ore than ,; different advertising agencies #romoted Par(er #ens in all the
corners of the globe. 'hen Peterson came to Par(er? he was #roudl! informed that the com#an! was a
AfederationB of autonomous geogra#hical units. /he downside to the AfederationB conce#t? Peterson though?
was that home countr! management often lac(ed the information needed to ma(e and coordinate basic
business decisions. Control was so com#letel! decentralized that Par(er didnHt even (now how man! #ens it
was selling b! the time Peterson and his grou# arrived.
On the other hand? decentralization obviousl! had its #ositive as#ects? most noticeabl! in the field of
advertising. Pens mean different things to different #eo#le. 'hereas *uro#eans are more li(el! to choose a
#en based on its st!le and feel? a consumer from a lesserFdevelo#ed countr! in the seventies viewed the #en
as nothing less than a badge of literac!. In additional? tastes varied widel! from countr! to countr!. /he
0rench? for e=am#le? remained attached to the fountain #en. -candinavians? for their #art? showed a mar(et
#reference for the ball#oint. /he logic behind having so man! different advertising agencies was that? even
if it a##eared to be somewhat inefficient? in the end the com#an! was better off from a sales stand#oint.
-ome of the individual advertising agencies were able to devise e=cellent? imaginative cam#aigns that struc(
a res#onsive chord among their local audiences. One e=am#le was the 2owe "owardF-#in( agenc! in
2ondon. /he Par(er C.>. division became the com#an!Hs most #rofitable during the tenure of the 2owe
agenc!. %n e=am#le of its creativit! is an ad is a #icture of a dead #lumber? on his bac(? with a giant Par(er
#en #rotruding from his heart. Part of the te=t is as follows:
5o !ou (now #lumbers who never turn u#8
"airdressers who missed their vocations as butchers8
5r!cleaners who ma(e !our stains disa##ear S and !our clothes with them8
/oda!? we at Par(er give !ou the chance to get !our own bac(. *=amination Pa#er of International
Business 3anagement
Not onl! are we offering a beautiful new #en called the 2e)ue which owes its dee# luster to a Chinese
techni)ue ;;; !ears old? but we are attem#ting to revive something that went out when the tele#hone came
in.
/he wellFarmed? witt!? malicious dart.
%lthough the Par(er C.>. division was a success? however? the com#an!Hs general inefficiencies? loss of
mar(et share? and lac( of strategic direction were finall! revealed in the earl! 1:7;s with the rise of the C.-.
dollar. Par(erHs financial decline was even more #reci#itous than the dollarHs increase. 'hen the huge 1:7
losses were registered? Peterson was brought in from 9.J. 9e!nolds to tr! and turn things around for Par(er.
"e decided that ever! as#ect of the com#an! needed to be closel! e=amined? not the least of which was
Par(erHs decentralization of global o#erations.
1. 'hat would !ou do if !ou were in James PetersonHs shoes in Januar! 1:78
. 'hat changes? if an!? would !ou ma(e in Par(erHs mar(eting strateg!8
&. 'hich as#ects of Par(erHs structure would !ou discard8 'hich would !ou (ee#8
,. %ssume that !ou are James Peterson and !ou have $ust hired a new management team com#osed of highl!
)ualified e=ecutives from outside com#anies. Dou and !our new team are convinced that !ou have the
solution to Par(erHs #roblems but there are man! hold overs who disagree with !ou. "ow would !ou
im#lement !our #lan8 /o what e=tent would !ou incor#orate the views of Par(er management into !our
#lan8
1. Consider the e)uation DXfM%?B?C?5?*?0?4G? where D stands for consum#tion of soft drin(s and 5 is the
variable for cultural elements. "ow would this e)uation hel# a softFdrin( mar(eter understand demand for
soft drin(s in global mar(ets8
. /he #resident of ID_ 3anufacturing Com#an! of Buffalo? New Dor(? comes to !ou with a license offer
from a com#an! in Osa(a. In return for sharing the com#an!Hs #atents and (nowFhow? the Ja#anese
com#an! will #a! a license fee of .#ercent of the e=Ffactor! #rice of all #roducts sold based on the C.-.
com#an!Hs license. /he #resident wants !our advice what would !ou tell him8
+nternational %inancial Mana"ement
Part #ne:
Multiple choices:
1. 0oreign e=change mar(et in India is relativel! ver!:
a. Big
b. -mall
c. 3edium
d. None of the above
. Balance of #a!ment is a s!stematic record of all _______ during a given #eriod of time.
a. Political transactions
b. -ocial transactions
c. *conomic transactions
d. None of the above
&. 3erchandise trade balance? services balance < balance on unilateral transfer are the #art of
________ account
a. Current account
b. Ca#ital account
c. Official account
d. None of the above
,. Interest rate swa#s can be e=#lained as an agreement between _________ #arties
a. One
b. /wo
c. /hree
d. None of the above
.. Ca#ital account convertibilit! in India evolved in %ugust
a. 1::1
b. 1::.
c. 1::,
d. None of the above
1. Interest rate #arit! is an economic conce#t? e=#ressed as a basic algebraic identit! that relates
a. Ca#ital rate < interest rate
b. Interest rate < e=change rate
c. Currenc! rate < e=change rate
d. None of the above
6. /he two (ind of swa# in the forward mar(et are
a. 0orward < reverse swa#
b. 9everse swa# < o#tion swa#
c. 0orward < o#tion less swa#
d. 0orward swa# < o#tion swa#
7. 0*3% stands for
a. 0orward e=change mar(et
b. 0uture e=change mar(et
c. 0oreign e=change management act
d. None of the above
:. *=change rate )uotation methods are
a. 5irect and direct
b. Indirect and indirect
c. 5irect and indirect
d. None of the above
1;. International 0isher effect or generalized version of the 0isher effect is a combination of
a. PPP theor! and 0isher? s o#en #ro#osition
b. 0isher? s o#en and closed #ro#osition
c. PPP theor! and 0isher? s closed #ro#osition
d. None of the above
Part Two:
1. 'rite a short note on +Interest 9ate Parit! -!stem? for e=change rates.
. 'hat are 5irect < Indirect Kuotes of e=change rates8
&. 'hat is +International 3utual 0und? 8
,. Briefl! describe +swa#s in foreign e=changes mar(ets? .
Case let 1
Mana"in" E.chan"e !ate !is3
3ahindra International MIndiaG im#orted s#ares of an engine from a C- manufacturer for N .?;;; #er
annum at a #rice of N .. #er #iece. /he average e=change rate during ;;1F; was 9s. ,6.6;LN. /he
Indian com#an! im#orted the s#ares also from a British manufacturer. In fact? it had diversified its
im#ort in view of reducing the ris( associated with the su##l!. /he im#ort from the C-% was
com#etitive in view of the fact the same s#ares im#orted from the C> was slightl! costlier. /he
%merican s#ares cost 9s. 11:.. #er #iece? while the British s#ares cost 9s. 1;.;; #er #iece. In
;;F;&? C- dollar a##reciated to 9s. ,7.,; with the result that the cost of %merican s#ares turned
higher than the British s#ares. In the se)uel of the a##reciation of C- dollar? the Indian im#orter cut
its demand from ?;;; #ieces to .;; #ieces. /he loss to the C- e=#orter was colossal. But at the same
time? the Indian Im#orter suffered a lot. It had to #a! a higher #rice for the C- s#ares in terms of
ru#ee. %nd also? it had to divert its im#ort from the C-% to the C> insofar as the #ound sterling did
not a##reciate during this #eriod. %ll this ha##ened in the wa(e of the e=change rate changes.
Questions:
1. 3ention the loss borne b! the C- e=#orter in the se)uel of a##reciation of dollar.
. 'hat strateg! the Indian im#orter needs to follow to hedge the e=change rate ris(8
Case let 2
2B5 2mro Ban3 an) Correspon)ent Ban3in" in +n)ia
%BN %39O ban( has emerged as a ma$or corres#ondent ban( owing to a large networ(. In
India? it o#erates in si= ma$or cities? viz. Baroda? Chennai? >ol(ata? 3umbai? New 5elhi and
Pune. Being a corres#ondence ban(? its #roduct offerings are found #rimaril! in the area of
trade and clearing. It is doing well in these owing to strong tieFu# with local Indian ban(s
reaching &.; centres across the countr!. %s a result? #a!ments are effected s#eedil! and
effectivel!.
Cash Mana"ement
/he customized #roducts in the area of cash management include che)ues #a!able at #ar at all its
branches across the countr!? a#art from traditional collection services? such as collection of
outstationLu#countr! che)ues drawn on other ban(s. %BN %39O is a member of all ma$or clearing
centers in the ma$or financial centers. It has an electronic deliver! s!stem and structures multilateral
netting of cash.
Tra)e Services
Cnder trade services? the Ban( offers a com#rehensive range of #roducts? such as:
1. 2C reimbursement
. Indian ru#ee trade #a!ments
&. "andling documentar! bills for collection
,. Bills negotiation
.. 2etter of credit advising
1. 2etter of credit confirmation
6. 4uarantees
Treasur, Services
/reasur! services at %BN %39O Ban( MIndiaG are available roundFtheFcloc(. 9u#ee funding at its
treasur! des( is #rovided at com#etitive rates along with advice on mar(et trends and rates. It
#rovides also advisor! services on the re)uest of financial institutions and cor#orate in the area of
regulator!? economic and financial matters including de#ositor! services.
Questions:
1. 5escribe the networ( of %BN %39O Ban( in India.
. 'hat role does it #la! for global cash management8
1. 5iscuss the factors that affect foreign e=change mar(et. *=#lain the different t!#es of foreign
e=change )uotations.
. 'hat do !ou mean b! balance of #a!ment8 'hat are the (e! com#onents of balance of
Pa!ment
• /his section consists of 3ulti#le choice )uestions < -hort %nswer t!#e )uestions.
• %nswer all the )uestions.
• Part One )uestions carr! 1 mar( each < Part /wo )uestions carr! . mar(s each.
Part #ne:
Multiple choices:
1. Beta is useful for com#aring the relative _____________ of different stoc(s.
a. Business ris(
b. -!stematic ris(
c. 2i)uidit! ris(
d. Countr! ris(
. /he #rice #revailing in mar(et is called
a. 3ar(et securit!
b. 3ar(et value
c. 3ar(et #rice
d. None of the above
&. 2ine charts? Bar charts? Candles tic charts are the #arts of
a. 0undamental anal!sis
b. /echnical anal!sis
c. Com#an! anal!sis
d. None of the above
,. % mar(et #ortfolio is a #ortfolio consisting of a weighted __________ in the mar(et.
a. -um of ever! e)uit!
b. -um of ever! liabilities
c. -um of ever! assets
d. None of the above
.. /he date on the o#tion contract is called the ___________
a. *=#iration date
b. 5ate of maturit!
c. Both aG < bG
d. None of the above
*=amination Pa#er of 0inance 3anagement
6
IIB3 Institute of Business 3anagement
1. % forward contract is an agreement made toda! between a ___________ to e=change the
commodit!
a. Bu!er < bu!er
b. Bu!er < seller
c. -eller < seller
d. None of the above
6. Portfolio means a collection or combination of financial assets such as
a. -hares
b. 5ebentures
c. 4overnment securities
d. %ll of the above
7. C%P3 is the abbreviation of
a. Ca#ital %sset Pricing 3easure
b. Ca#ital %verage Pricing 3odel
c. Ca#ital %sset Pricing 3odel
d. None of the above
:. In India the secondar! mar(et for shares is regulated b!
a. 9BI
b. -*BI
c. Com#an! law board
d. /here is no regulator! authorit!
1;. /he ris( of the whole mar(et as measured b! +Beta? is
a. 1
b. ;
c. F1
d. None of the above
Part Two:
1. 'hat does +`? MBetaG mean in ris( management8
. 'rite a note on +o#tions? < +future? derivatives.
&. 5efine Ca#ital mar(et theor!.
,. 'rite a short note on C%P3.
Case let 1
/OC%I is a 0rench com#an! and is currentl! *uro#e? s no. 1 in shi##ing containers and river
barges? and no. in modular building and freight railcars. /he grou# #rovides o#erating leases to
customers around the world? both on its own account and for thirdF#art! investors. On June ,? ;;:?
/OC%I announced that its ca#ital increased b! waiving #referential subscri#tion rights but with
#riorit! for e=isting shareholders? launched on 17 June ;;: for a total of *16? 7.1?.1:.61 MgrossG
through the issue of :&1?.:1 new shares which were subscribed in the entirel!. 0ollowing #artial
a##lication of the e=tension clause? :.?6,6 shares were #laced or 1;1.6@ of the issueR total
#roceeds were *17? 1.:?&.6.7.
/his rights issue has enabled the 4rou# to strengthen its financial structure? to #osition itself with
advantage for #ossible ac)uisitions of tangible stoc(? and to gras# o##ortunities thrown u# b! the
crisis M#urchase of shi##ing containers? modular buildings? river barges and railcars? for hiring out on
mainl! longFterm leasesG. &6;?;1 new shares allotted under absolute entitlement were subscribed or
&:..1@ of the total number of new shares issue. %nother ...?17. shares were a##lied for sub$ect to
cutting bac( in the event of over subscri#tion? and orders for these were all filled. %nother 6?;;;
shares had been a##lied for b! the general #ublic? and following #artial a##lication of the e=tension
clause it #roved #ossible to fill orders for all of these.
%ll the result of the right issue? /OC%I is well #laced to res#ond to the boom in cor#orate
outsourcing of nonFcore assets? and ever! da! #rovides over .?;;; customers with )uic( and fle=ible
leasing solutions. /OC%I is now listed on *urone=t in Paris S ND-* *urone=t Com#artment C
MI-IN Code 09;;;;;&&;;&G? and features in the -B0 .; Inde=.
Questions:
1& %fter anal!zing the case? do !ou thin( all the com#anies that can afford? should o#t for right
issue to im#rove their financial status8
2& 'hat do !ou anal!ze as the two main advantages of the right issue8
Case let 2
In midF0ebruar! 1::,? the British #a#er? the -unda! times ran on article that alleged that a 1 billion
sterling MN 6.; 3G sale of e)ui#ment b! British com#anies to 3ala!sia was secured onl! after bribes had
been #aid to 3ala!sian government officials and after the British overseas develo#ment administration
MO5%G had agreed to a##rove a &, million sterling grant to the 3ala!sian government for a
h!droelectric dam of Maccording to the -unda! timesG dubious economic value. /he clear im#lication was
that C> officials? in their enthusiasm to see British com#anies win a large defence contract? had !ield to
#ressures from Acorru#tB 3ala!sian officials for bribes S both #ersonal and in the form of the &, million
sterling develo#ment grants.
'hat ha##ened ne=t too( ever!one b! sur#rise. /he 3ala!sian government #rom#tl! announced a an on
the im#act of all British goods and services into 3ala!sia and demanded an a#olog! from British
4overnment. Officiall! the ban a##lied onl! to government orders for British goods and servicesR the
#rivate sector was free to bus! as it chose. "owever? British com#anies with e=#erience in the region
were nervous that the #rivate sector would follow the government? s lead in shunning British #roducts. %t
sta(e was as much as , billion sterling in British e=#orts and construction activities in 3ala!sia and a
#resence in one of the world? s fastest growing develo#ing economies M3ala!sia? s economic growth has
averaged 7@ #er annum since 1:7:G. In announcing the ban? 3ala!sia? s Prime 3inister? 5r 3ahathir
3ohammad? noted that the British media #ortra!s 3ala!sians as corru#t because A /he! are not British
and not whiteB\%nd Awe believe the foreign media must learn the fact that develo#ing countries?
including a countr! led b! brown 3oslem? have the abilit! to manage their own affairs successfull!B.
/he British government res#onded b! stating? it could not tell the British #ress what and what not to
#ublish? to which 5r 3ahathir re#lied there would be Ano contracts for British #ress freedom to tell liesB.
%t the same time? the British government came under attac( from members of #arliament in Britain? who
sus#ected the government acted unethicall! and a##roved the O5% h!droelectric grant to hel# British
com#anies win orders in 3ala!sia.
Questions:
1. If !ou are the C*O of a British com#an! that now faces the loss of a lucrative contract in
3ala!sia because of the dis#ute. 'hat action should !ou ta(e8
. "ow do !ou thin( British government should res#ond to the 3ala!sian action8
1. 'hat do !ou mean b! ris( management8 *laborate the various (inds of s!stematic and nons!stematic
ris(s.
. 'hat do !ou mean b! Portfolio management8 'hat are the methods of calculating #ortfolio
#erformance evaluation8
+nternational Mar3etin" Mana"ement
1& International mar(eting includes activities that direct the flow of goods from
a. One countr! to one countr!
b. One countr! to another countr!
c. One countr! to multi#le countr!
d. %ll of the above
2& */C stands for
a. *=#ert trading com#anies
b. *ssential trading com#anies
c. *=#ort trading com#anies
d. None of the above
'& /ill 1:.;F.1 there was no clear e=im #olic! and no _________ restrictions of an! (ind
a. Im#ort
b. *=#ort
c. Both aG < bG
d. None of the above
(& /ariffs have been one of the classical methods of regulating ________ trade
a. International
b. National
c. 5omestic
d. None of the above
A& /he world trade organization M'/OG was established on 1st Januar!
a. 1::1
b. 1::.
c. 1::6
d. None of the above
• /his section consists of 3ulti#le choice )uestions < -hort %nswer t!#e )uestions.
• %nswer all the )uestions.
• Part One )uestions carr! 1 mar( each < Part /wo )uestions carr! . mar(s each.
*=amination Pa#er of 3ar(eting 3anagement
IIB3 Institute of Business 3anagement
B& *=#ort documentation is a ver! im#ortant area in _______ management
a. International
b. Im#ort
c. *=#ort
d. None of the above
C& 3ethods of e=#ort #ricing are
a. Cost #lus #ricing
b. Com#etitive #ricing
c. 3arginal #ricing
d. %ll of the above
D& OC*5 has been a destination of a ma$or #ortion of _______ e=#orts
a. Ja#an
b. C-%
c. India
d. C>
E& Ps!chogra#hic segmentation involves grou#ing #eo#le in terms of
a. %ttitudes
b. 2ife st!les
c. Ealues
d. %ll of the above
1F& 0oreign direct investment would be #ermitted u# to ________ in the develo#ment of the
zones
a. 1;;@
b. :;@
c. &7@
d. ,7@
Part Two:
1& 5ifferentiate between domestic < international mar(eting.
2& 'rite a short note on 'orld trade organization M'/OG.
'& Briefl! describe the e=im #olic! of India Mone #art of India? s e=#ort im#ort #olic!G.
(& 'rite a short note on tariff and non tariff barriers of international trade.
Case let 1
E.port Mar3etin":
/he trade in blac( #e##er is unha##! that e=#orts ma! not show a sign of revival in #rices in the
immediate future. 'orld #rices have been showing a downward trend for eighteen months and this
has resulted in much lower earnings for e=#orters. /he C>? 'est 4erman! and the Netherlands have
cut their im#ort re)uirement though the %merican demand has shown some growth. Brazil has been
resorting to aggressive selling at lower #rices and the e=#ectations are that its e=#orts will reach an
allFtime #ea( of &?;;; tones in the 1:71F7 season. /he 1:71F7 Indian season is onl! about si=
wee(s awa!. /he Brazilian offensive has forced India to withdraw so to an! from the C- and 'est
*uro#ean mar(ets and increase its reliance on communist bu!ers. %s man! as 1:7;F71.the -oviet
Cnion alone accounting for 1?1,6 tones. But e=#orters are concerned at the diversion on such a scale
of this trade.
Questions:
1. "ad !ou been the #e##er e=#orter? what would be !our short term and mediumFterm e=#ort
mar(eting strateg! in the above environment8
. Could !ou e=amine the wea( #oints in this case stud!8
Case let 2
SM2!T 7+8S G SE99+5G E8UC2T+#529 G2MES 258
!ES#U!CES T# T/E 0#!98
-mart >ids 2td. %n %uc(land com#an! that ma(es educational games and resources to read and
understand math? s has won a /rade New _ealand *=#ort %ward for its success in international
mar(ets in ;;&.*stablished eight !ears ago in the famil! home basement? -mart >ids is led b!
husband and wife team? $oint chief e=ecutives 5avid and -un 3ilne and their sons 5uncan and 0rase.
-he 3ilne? an e=Fteacher? sa!s from $ust &; #roducts when it started? the com#an! #roduces more
than ;; #roduces catering for student? s activities? grammar conce#ts and numerac!. -he sa!s the
international a##eal of -mart >ids #roducts was highlighted recentl!? when com#an!? s -3%9/
P"ONIC- was listed amongst the to# five #roducts out of almost 1;; in the education trade show in
the Cnited >ingdom. /he (e! re)uirement for ever! new -mart >ids #roducts is that it stimulates
student? s minds in the classroom? teaches them a s#ecific conce#t easil!? en$o!abl! and #ermanentl!
and enables #roblem solving. 5avid 3ilne sa!s -mart >ids started selling its educational games and
*=amination Pa#er of 3ar(eting 3anagement
IIB3 Institute of Business 3anagement ,
resources to New _ealand schools in 1::.? drawings an immediate and strong res#onse. It )uic(l!
became a#artment that the New _ealand mar(et was not large enough to sustain considerable
investment in #roduct develo#ment? and secondl!? that their #roducts have done so well that the!
deserved wider e=#osure.BOur e=#ort research came down to two o#tions. 0ind educational
distributors in other countries or setFu# our own o#erations. /he first o#tion was less ris(! and eas! to
manage but it meant that -mart >ids #roducts were lost in a wide range of materials. -o we went for
the second o#tion and over the ne=t few !ears established offices in %ustralia? in C> and CanadaB.
/his has successfull! branded -mart >ids as a leading su##lier of educational resources in these
countries. 3r. 3ilne sa!s the -mart >ids #roduct catalogue is now sent regularl! to teachers in more
than .;?;;; schools across the C>? Ireland? Canada and %ustralia. A'e also sell to schools in the C-.
In that mar(et we elected to wor( through a distributor? we didn? t have the financial resources to setu#
an o#eration that could cover almost 6;?;;; schools and com#ete with ever! established
educational #ublisherB. "e sa!s annual e=#orts now e=ceed N. million and account for more than
:;@ of turnover. In order to grow the business? sur#lus #rofits are reinvested bac( into #roduct
develo#ment? infrastructure S the com#an! recentl! moved its %uc(land o#eration into new ;?;;;
s)uare feet #remises in *llerslie. 3r. 3ilne sa!s the -mart >ids brand is now well established
internationall! with the com#an! en$o!ing man! com#etitive advantages? including its New _ealand
origin. New _ealand education is highl! regarded overseas and we find that international teachers to
get hold of educational #roducts made in this countr!.
Questions:
1& 'hat are the ma$or considerations for a firm in order to while deciding its mar(ets entr!
strateg!8
2& /o what e=tent direct control and ownershi# are critical for -mart (ids e=#ort distribution
strateg!8
1. 'hat do mean b! International mar(eting8 5iscuss the sco#e of International mar(eting.
. 5escribe the e=#ort documentation framewor( in India in detail.
!esearch Metho)olo",
• /his section consists of 3ulti#le choice )uestions < -hort %nswer t!#e )uestions.
• %nswer all the )uestions.
• Part One )uestions carr! 1 mar(s each < Part /wo )uestions carr! . mar(s each.
Part #ne:
Multiple Choices:
1. 9esearch is an art of _________ investigation
a. /echnological
b. -cientific
c. Political
d. None of the above
. *=#lorator! research is fle=ible and ver! ________ research
a. Eariable
b. Eisuals
c. Eersatile
d. None of the above
&. 0rame error? chance error and res#onse error are collectivel! called
a. /otal error
b. Non sam#ling error
c. -am#ling error
d. Cniversal error
,. "!#othesis testing is sometimes called _________ anal!sis
a. *=#lorator! data
b. Confirmator! data
c. *=#erimental data
d. Both aG < bG
.. *=ecution of the #ro$ect is a ver! im#ortant ste# in the ________ #rocess
a. Kuestions
b. Identification
c. 9esearch
d. None of the above
*=amination Pa#er of 3ar(eting 3anagement
IIB3 Institute of Business 3anagement 1
1. /hurstone scale is also (nown as _________ scale
a. *)ual a##earing interval
b. *)ual alternatives interval
c. *)ual alternatives item
d. None of the above
6. % ratio in which the units of numerator < denominator are not the same is termed as a
a. Class
b. 9ate
c. 5ata
d. None of the above
7. %NOE% stands for
a. %nal!sis of automobiles
b. %nal!sis of variable
c. %nal!sis of variance
d. None of the above
:. One tailed < two tailed test are the #art of _________ test
a. Null
b. "!#othesis
c. %lternative
d. None of the above
1;. Chi S s)uare is an im#ortant ______ test
a. Parametric
b. Probabilit!
c. Non S #arametric
d. None the above
Part Two:
1. 'hat is +-e)uential sam#ling? 8
. 'rite a short note on +nominal scale? .
&. 'rite a note on +_ S /est? . MOne of the #arametric test for h!#othesisG.
,. 'hat are the cautions to be ta(en on a Mchi s)uareG test8
Case let 1
-wasti(a Com#uter -!stem was established in 1:71 at 5elhi to #rovide com#uter training. In 1:7;s
com#uter education was relativel! new in India. Personal com#uters 71 e=isted and 3- 5O- was
the o#erating s!stem. 2anguages li(e Basic? Pascal? COBO2? 0O9/9%N were used in #rogramming.
-wasti(a Com#uter -!stems was established with their su##ort de#artments namel! com#uter
assembl!? facult! training and com#uter servicing de#artment. In the first financial !ear? it recorded a
turnover of 9s 11.. la(hs. 'ithin a few !ears of its e=istence? -wasti( Com#uter -!stem o#ened its
branches in eight ma$or cities of India and had a gross annual turnover of 9s 71 la(hs. /he
organization was highl! centralized. /he head office at 5elhi handled all accounts? recruitment? and
#lacement of students and servicing of com#uters. /he Bho#al branch of -wasti( Com#uter -!stems
was set u# in 3a! 1:76. /he branch was headed b! a d!namic branch manager "emant 4u#ta. "e
was a B-c in com#uters and had #reviousl! wor(ed in the data #rocessing de#artment of a
manufacturing concern. /o establish the Bho#al branch? "emant 4u#ta realized the need for ma(ing
-wasti( Com#uter -!stems? Bho#al (nown to the !ounger generation. 'ith this in mind he
introduced some innovative #romotional schemes li(e offering scholarshi#s to students doing well in
the intelligence tests administered b! the branch? giving #ersonal com#uters to students to de#osit
term fees at their convenience. "emant 4u#ta also ensured that teaching standards were high and
com#uters at the branch were well maintained? so a student once enrolled felt that he had made the
right decision b! $oining -wasti( Com#uter -!stems. "e also made himself available from 7.;; am to
6.;; #.m at the branch. -tudents were free to go to him with their #roblems? which he too( #ains to
solve. -oon -wasti( Com#uter -!stems was one of the leading com#uter training centres in Bho#al.
%s the Bho#al branch #ros#ered? the head office at 5elhi started ta(ing an active interest in the
running of this branch. /he 9egional 3anager who visited Bho#al once a month started ma(ing
fre)uent visits. 5uring one of his visits? his attention was drawn to rumors that branch funds were
being misa##ro#riated. 'hen the 9egional 3anager informed the 5elhi office about the rumor? a
team was sent to the Bho#al Branch to loo( into the matter. On investigation? the term was convinced
that the rumors had some truth in them. It was found that a larger number of students attended the
classes than were enrolled. It was felt that this fraud was not #ossible without the consent of "emant
4u#ta? and without an! further in)uir! a decision was ta(en to remove him forthwith. %mit Eerma
who was a senior facult! at -wasti( Com#uter -!stems? 5elhi was as(ed to ta(e over the Bho#al
branch as 3anager. "e was an 3C% and had been associated with the organization since its
ince#tion. %mit Eerma? s a##ointment at Bho#al was welcomed at the Bho#al branch b! both? staff
and facult! as he had the re#utation of being an eas! going #erson. %fter he $oined the Bho#al? it was
observed that %mit Eerma? although academicall! sound? was not an effective administrator. "is
a##roach towards staff and facult! was lenient. "e was not #articular about #unctualit! and was not
*=amination Pa#er of 3ar(eting 3anagement
IIB3 Institute of Business 3anagement 7
available during office hours. /his had an adverse effect on facult! in general and classes in
#articular. Not onl! did classes suffer but even administrative wor( was affected. 3onthl! re#orts to
the head office were not sent on time? as a result re)uisitions for com#uter servicing? reading material
and funds were undul! dela!ed. 5ue to lac( of maintenance? com#uter brea(downs became common?
students did not receive their reading material on time and #a!ment of building rent? and tele#hone
bills etc were unnecessaril! dela!ed. /he s!m#toms of deterioration at the Bho#al branch were
obvious. /he branch which had an annual turnover of 9s &;.6 la(hs fell to 9s. , la(hs. %s
enrollments decreased the head office at 5elhi started feeling the #inch. It started dela!ing transfer of
funds to the Bho#al branch. %s a result facult! salaries were undul! dela!ed. /he facult! started
leaving for greener #astures.
'orried b! the number of facult! turnover? the head office started a #ractice of recruiting onl!
those faculties willing to sign a bond of & !ears. /he organization started a #ractice of ta(ing a de#osit
of 9u#ees .;;; from the $oining facult!? which would be refunded after & !ears. In case the facult!
left before this duration? the de#osit stood forfeited. /his #olic! further reduced the )ualit! of facult!
$oining -wasti( Com#uter -!stems? Bho#al.
Questions:
1. 'hat according to !ou went wrong at the Bho#al branch8
. 'hat can be done to revive the Bho#al branch8
Case let 2
3ind tree which was founded in 1::: in India b! a grou# of I/ #rofessionals who wanted to chart a
somewhat distinctive #ath. /oda!? it has a to# line of N1: million and is rated as one of the most
#romising midFsized I/ services com#anies. Creditable as that is? 3ind /ree does not want to be $ust
that. /here is an element of serendi#it! about what it has been doing over the last !ear. In ;;7? it
designated one of its founders -ubroto Bagchi +4ardener? ? a gimmic(! signal? intended to declare
that he was moving out of the da!FtoFda! running of the com#an! to nurture talent which would run
the com#an! in the future. "e has now a re#ort card read! on a !ear as gardener. 5uring this one
!ear? he has also s#ent around ,. da!s travelling round the world tal(ing to clients and #ros#ective
ones which has !ield remar(able insights into what firms are doing in these traumatic times. 2astl!?
3ind /ree as a whole has s#ent the last !ear going through the e=ercise of redefining its mission
statement and vision for the ne=t five !ears. Kuite fortuitousl! these #rocesses have come together
with a unif!ing thread? #resenting a coherent big #icture. 3ind /ree wants to seed the future while
still !oung? and e=ecutive chairman %sho( -oota has declared that b! ;;? it will be led b! a nonfounder.
-o a !ear ago the gardener Bagchi set out to AtouchB 1;; to# #eo#le in the organization?
with a goal of doing .; in a !ear so as to eventuall! identif! the to# ; b! ;1.. 0rom among them
will emerge not $ust the leader but a team of ten who would eventuall!? as grou# heads? deliver N;;
million of turnover each. /hat will give a turnover of N billion. /o #ut it in #ers#ective? one one
ECFfunded com#an!? which has not closed or been bought over? has been able to get to N billion
and that is 4oogle. But to get there it has to #eriodicall! redefine its mission Mwh! we e=istG and its
vision S measurable goals for the ne=t five !ears. Its redefined mission is built around Asuccessful
*=amination Pa#er of 3ar(eting 3anagement
customers? ha##! #eo#le? and innovative solutionB. Its new vision targets a turnover of N1 billion b!
;1,. It wants to be among the globall! ; most #rofitable I/ services com#anies and also among
the ; globall! most admired ones. %dmired in terms of customer satisfaction M#a! for the courseG?
#eo#le #ractices McreditableG? (nowledge management Me=citingG and cor#orate governance Mthe
*nronF-at!am effectG. /he reall! interesting bit about 3ind /ree in the last one !ear is what Bagchi
has been u# to. "e has been embedding himself in the .; lives? wor(ing in a #ersonal #rivate
continuum? ma(ing it a rich learning #rocess Awhich has hel#ed connect so man! dots.B Of the
hundred who will be engaged? ma! be .; will leave? of them . ma! better themselves onl!
marginall!? and from the remaining . ten will emerge who will carr! the com#an! forward.
Questions:
1. 'hat do !ou anal!se as the main reason behind the success of 3ind tree8
. 5o !ou thin( that redefining the mission statement shows the lacunae on the #art of the
founder members of an organization8 'h!8
1. 'hat are the various methods of collecting statistical data8 *=#lain in brief their merits and
demerits.
. 'hat do mean b! 9esearch design. 'hat are basic t!#es of research design8
IIBM I'!""%"+ &= B%!'+!! M*'*(+,+'"
E7*,'*"&' P*/+# MM42::
F'*')*. S+#?)+!
S+)"&' A- O$>+)"?+ T;/+ @8: ,*#A!B
Thís sectíonb consísts of Muítípíe Choíce questíons & Short Answer type questíons.
Answer aííb the questíons.
Part Oneb questíons carríes 1 mark each & Part Two questíons carríes 5 marks each.
P*#" O'+-
M%."/.+ C0&)+!-
1. NBFS stands for ............................
2. ALCO ís a decísíon makíng unít responsíbíe for baíance sheet píanníng from rísk
return perspectíve. (T/F)
3. A contract of ´Indemníty´ ís one whereby
a. A person tríes to use the other´s property
b. A person promíses to save the other´s property from íoss caused.
c. A person tríes to tríck the property of other for some other person.
d. None
4. The transactíon between the íassor and the íessee beíng a demand saíe ís caííed
a. Fírst saíe
b. Second saíe
c. Thírd saíe
d. Fourth saíe
5. If the net present vaíue of íeasíng be ´a´ and net advantage of íeasíng be ´b´ then
decísíon críteríon ís gíven by
a. a/b
b. a+b
c. b/a
d. a-b
6. Break even íease rentaí BERL has NAL vaíue equaí to
a. 1
b. 2
c. 0
d. 0.5
7. The ríght under whích an unpaíd seííer who ís ín possessíon of the goods ís entítíed
to retaín them untíí payment of the príce ís done ís termed as
............... Examínatíon Paper of Bankíng & Fínancíaí Servíces
Management
6 IIBM Instítute of Busíness Management
8. If the no of íeveí ínvestments be ´t´, totaí no of íeveí ínstaííments be ´n´ and totaí
charge for credít be ´c´ then the ínterest rebate ís gíven
by................
9. The practíce of díscountíng accommodatíon bííís ís known as ...........
10. HUDCO stands for
.......................................
P*#" T1&-
1. What do you understand by "Lock-ín períod".
2. Wríte a short note "Hybríd Debt Capítaí Instruments".
3. What do you understand by "Bípartíte Lease".
4. What ís "Suít for Ouantum Meruít"?
END OF SECTION A
S+)"&' B- C*!+.+"! @C: ,*#A!B
Thís sectíonb consísts of Caseíets.
Answer aííb the questíons.
Each caseíetb carríes 20 marks.
Detaííedb ínformatíon shouíd form the part of your answer (Word íímít 200 to 250
words).
C*!+.+" 2
Sunííght Industríes Ltd manages íts accounts receívabíes ínternaííy by íts saíes and
credít department. The cost of saíes íedger admínístratíon stands at Rs 9 crore
annuaííy. It suppííes chemícaís to heavy índustríes. These chemícaís are used as raw
materíaí for further use of are dírectíy soíd to índustríaí uníts for consumptíon. There
ís good demand for both the types of uses. For the dírect consumers, the company
has a credít poíícy of 2/10, net 30. Past experíence of the company has been that on
average 40 per cent of the customers avaíí of the díscount whííe the baíance of the
receívabíes are coííected on average 75 days after the ínvoíce date. Sunííght
Industríes aíso has smaíí deaíer networks that seíí the chemícaís. Bad debts of the
company are currentíy 1.5 per cent of totaí saíes.
Sunííght Industríes ñnances íts ínvestment ín debtors through a míx of bank credít and
own íong-term funds ín the ratío of 60:40. The current cost of bank credít and íong-
term funds are 12 per cent and 15 per cent respectíveíy.
There has been a consístent ríse ín the saíes of the company due to íts proactíve
measures ín cost reductíon and maíntaíníng good reíatíons wíth deaíers and
customers. The pro|ected saíes for the next year are Rs 800 crore, up 15 per cent
from íast year. Gross proñíes have been maíntaíned at a heaíthy 22 per cent over the
years and are expected to contínue ín future.
Wíth escaíatíng cost assocíated wíth the ín-house management of debtors coupíed
wíth the need to unburden the management wíth the task so as to focus on saíes
promotíon, the CEO of Sunííght Industríes ís examíníng the possíbíííty of outsourcíng
íts factoríng servíce for managíng íts Examínatíon Paper of Bankíng & Fínancíaí
Servíces Management
7 IIBM Instítute of Busíness Management
receívabíes. He assígns the responsíbíííty of Aníta Guha, the CFO of Sunííght. Two
proposaís, the detaíís of whích are gíven beíow, are avaííabíe for Aníta´s consíderatíon.
Proposaí from Canbank Factors Ltd: The maín eíements of the proposaí are: (í)
Guaranteed payment wíthín 30 days (í) Advance, 88 per cent and 84 per cent for the
resource and non-recourse arrangements respectíveíy (ííí) díscount charge ín
advance, 21 per cent for wíth resource and 22 per cent wíthout resource (ív)
Commíssíon, 4.5 per cent wíthout resources 2.5 per cent and wíth resource.
Proposaí from Indbank Factors: (í) Guaranteed payment wíthín 30 days (íí) Advance,
84 per cent wíth resource and 80 per cent wíthout resource (ííí) Díscount charge
upfront, wíthout resource 21 per cent and wíth resource, 20 per cent and (ív)
Commíssíon upfront, wíthout resource 3.6 per cent and wíth resource 1.8 per cent.
The opíníon of the Chíef Marketíng Manager ís that ín the context of the factoríng
arrangement, hís stah wouíd be abíe to excíusíveíy focus on saíes promotíon whích
wouíd resuít ín addítíonaí saíes of Rs 75 crore.
R+D%#+6 The CFO of Sunííght Industríes seeks your advíce as a ñnancíaí consuítants
on the aíternatíve proposaís. What advíce wouíd you gíve? Why? Caícuíatíons can be
upto one dígít oníy.
C*!+.+" <
Foííowíng are the ñnancíaí statements for A Ltd and T Ltd for the current ñnancíaí
year. Both ñrms operate ín the same índustry.
BALANCE SHEETS P*#")%.*#! F#, A F#, B
Totaí current assets Rs 14,00,000 Rs 10,00,000
Totaí ñxed assets (net) 10,00,000 5,00,000
_____________ __________
Totaí assets 24,00,000 15,00,000
_____________ ___________
Equíty capítaí (of Rs 10 each) 10,00,000 8,00,000
Retaíned earníngs 2,00,000 _
14% Long-term debt 5,00,000 3,00,000
Totaí current ííabííítíes 7,00,000 4,00,000
_____________ ___________
24,00,000 15,00,000
WE ARE PRO/IDING CASE STUDY ANSWERS
ASSIGNMENT SOLUTIONS0 PROJECT REPORTS
AND THESIS
ISBM / IIBMS / IIBM / ISMS / KSBM /
NIPM
SMU / SYMBIOSIS / XAVIER / NIRM /
PSBM
ISM / IGNOU / IICT / ISBS / LPU /
ISM&RC
MBA - EMBA - BMS - GDM - MIS - MIB
DMS - DBM - PGDM - DBM - DBA
www.mbacasest!"a#swe$s.c%m
www.casest!'es.c%.'#
a$a+'#!.ba#a,a$-.ma'&.c%m
2viation Mana"ement
1. 'hich of the following is comes under +%ir safet! to#ic 8 ?
a. 2ightning
b. Ice < snow
c. 0ire
d. %ll of the above
. J%/O stands for _______
&. Beam movement? location of beam related to air#ort and loser stabilit! comes under which
of the following of anal!zing the hazard8
a. -ituational factor
b. O#erational factor
c. 2aserLbright factor
d. PilotLaircraft factor
,. 'hich of the followingFis not the aviation standard8
a. %9INC ,:
b. %9IN ,,
c. %9INC 1.&
d. %9INC ,,,.
.. /he total weight of the #assengers?: their luggage? and cargo is (nown as:
a. Pa!load
b. 9am# weight
c. Bra(e release weight
d. 2anding weight
1. 'hich of the following are not the #rimar! areas of concern8
a. *!e damage
b. /em#orar! flash blindness
c. 4lare < disru#tion
d. none of these
6. -/O2 stands for_______
7. % landing b! an aircraft made under factor outside the #ilot s control such as the failure of ?
engine? s!stem com#onent or weather? is (nown as__________
a. "ard landing
b. 0orced landing
c. 'ater landing
d. Bell! landing
:. 5eFcrab is the techni)ue of __________
a. Crosswind landing
b. Bell! landing
c. 5eadstic( landing
d. *mergenc! landing
1;. 9%/O stands for___________
Part Two:
1. 5iscus the areas of concern in +%viation . ?
. 5escribe classifications of +Indian %viation -ector ?
&. 5efine sources from which aircraft noise originates.
,. 'rite short note on A4lobal %ir /raffic 3anagementB.
1. Identif! the challenges faced b! the %us %irlines in a run to survive.
. 'hat t!#e of strateg! hel#s in increasing the revenues of the %viation Industr!8
&. 'hat strateg! should %ir India follow to satisf! its +PriceF sensitive customers without ?
losing mone!8 Comment.
-uggest some features that %ir India could ado#t to differentiate itself from its com#etitors.
5efine landing? and also e=#lain the t!#es of landing8
*=#lain aviation industr! in India? and list the challenges faced b! aviation industr!
/ospitalit, an) Tourism Mar3etin"
1. In -3*90? O-H stands for:
a. -ocial b.
-ervice c.
-ale
d. None of the above
. If the Kuestion 3ar( businesses are successful then the! become -tars.M/L0G
&. Customers can be considered under:
a. 3icro environment forces b.
3acro environment forces c.
None of the above
d. de#ending on the area of consideration an! of the above
,. 5emogra#h! is the stud! of\\\\\\\\\\\\\\\\\\\\\\\\\\\
.. 4eneration I consist of the #eo#le born between:
a. 1:,1 to 1:1, b.
1:1. to 1:61 c.
1:66 to 1::,
d. None of the above
1. In O-3*90H 3 stands for:
a. 3one! b.
3odel
c. 3ilitar! d.
3ar(et
6. %ural dimensions of environment are volume and #itch.M/L0G
7. N%3 stands for:
a. National %ccount 3anagement b.
National %ccounting 3ar(et
c. National %utonomous 3ar(et d.
Both MaG < MbG
:. 0i=ed costs are also (nown as OOverheadsH.M/L0G
1;. 2obb!ing is dealing with legislators and government officials to #romote or defeat legislation and
regulation.M/L0G
Part Two:
1. 'hat do !ou understand b! O"os#italit! 3ar(etingH8
. 'rite a note on O-ervuction modelH.
&. 'hat are OCash CowsH8
,. 'hat do understand b! OEertical conflictH in case channel behavior8
. 'hat can be done to encourage the sales force to engage in more crossFselling8
. 5iscuss what is needed in terms of sales incentives and sales controls to achieve the ob$ectives of
International /ravel %genc!.
1. /he count! commissioners need information to ma(e a decision on the golf tournament. Csing
the mar(eting research #rocess? develo# a research #lan that will #rovide the commissioners with
the information the! need.
. *=#lain wh! it is im#ortant on the economic contribution of social events? both before and after
the event.
1. % AhotB conce#t in fastFfood mar(eting is home deliver! of ever!thing from #izza to hamburgers to
fried chic(en. 'h! do !ou thin( the demand for this service is growing8 "ow can mar(eters gain
a com#etitive advantage b! satisf!ing the growing demand for increased services8
. Identif! a restaurant or hotel mar(et segment in !our communit! that !ou feel would be a good
mar(et segment to target. *=#lain the mar(eting mi= !ou would #ut together to go after this
mar(et segment.
M*'*('( "0+ L&6('(
O/+#*"&'!
1. are usuaííy ín a suburban or ísoíated ruraí íocatíon, wíth
specíaí recreatíon facííítíes
a. Conventíon Hoteís c. Resort Hoteís
b. Suíte Hoteís d. Fuíí- Servíce Hoteís
2. Whích of the foííowíng ís not a part of Court- Mandated
Securíty Standards a. Physícaí or property reíated c.
Operatíonaí reíated
b. Personaí reíated d. Admínístratíve reíated
3. LEARN stands for
a. Lísten, Empathíze, Apoíogíze,
React, Notífy b. Learn, Empathíze,
Apoíogíze, React, Notífy
c. Learn, Empathíze, Apoíogíze, Reward, Notífy
d. Lísten, Evaíuate, Apoíogíze, Reward, Notífy
4. ís a maíntenance that requíres advance píanníng, sígníñcant
tíme, specíaíízed equípment and co-ordínatíon between severaí
departments
a. Routíne maíntenance c. Preventíve maíntenance
b. Contract maíntenance d. Scheduíed maíntenance
5. Whích of the foííowíng ís not a component to Línen cost controí
a. Repíacement cost c. Purchasíng
cost b. Loss and Theft d. Processíng
cost
6. Is a resuít of empíoyees beíng gíven ínsumcíent ínformatíon
or traíníng to perform theír |obs
a. Roíe Ambíguíty c.
Roíe Conñíct b. Seíf-Monítoríng
d. |ob Unñt
7. A íeadershíp setup havíng 10- year vísíon to be "the Premíer Worídwíde
Províder of Luxury
Traveí and Hospítabíííty Products and Servíces" ís a
deñnítíon proposed by a. NIST
c. The Rítz-Caríton
b. Baídríge d. Masíow
8. Whích method ís used to promote the most expensíve or hígh
príced rooms to the customers
a. Bottom-up Method c. Cross Method
b. Rate-category Aíternatíves d. Top-down Method
9. ínvoíves passíng on some of the tradítíonaí functíons of
management to the empíoyee
a. Management by functíons c. |ob Enríchment
b. |ob Desígn d. Deíegatíon of Authoríty
10. Whích of the foííowíng ís a Performance Dímensíon
a. Teamwork c.
Responsíbíííty b. Recognítíon
d. Commítment
P*#" T1&-
1. Díscuss about the steps ínvoíved ín ´Budgetary Controí processes?
2. Deñne ´Capítaí Budgetíng´?
3. Díherentíate between Suggestíve Seíííng and Cross-Seíííng?
4. Deñne ´Empíoyee Empowerment´?
24 Wouíd thís kínd of pían work for any sort of hoteí chaín?
<4 Does thís type of strategy heíps ín íncreasíng the revenues of the hoteí.
1. How does the organízatíonaí cíímate ín a hoteí transíate ínto totaí satísfactíon
of guests?
2. What can managers do to ensure that such a cíímate ís beíng created ín hís
or her operatíons?
1. What are the eíements of the Maícoím Baídríge Ouaííty Award Program?
2. Descríbe the terms:
c Management by ob|ectíves
c |ob Redesígn
c Posítíve Reínforcement
c Teamwork
3. Descríbe the steps ínvoíved ín deveíopíng a marketíng pían?
Qualit, Control
1. 'rite short note on A4rou# ChartB.

. 'hat is A3easures of 5is#ersionB.

&. 'hat is ACollection of 5ataB.

,. 'rite short note on ABinomial Probabilit! 5istributionB.
1. If !ou were a #art of the to# management at 3<3 0*-? how would !ou have involved the
wor(ers in the 5eming #rogramme8
. 5o !ou thin( that 3<3 0*- has a strategic )ualit! management s!stem in #lace8
1. 'hat lessons can Indian com#anies ta(e from 0ed*=8
. 'hat are the factors that have gone against India and wh! did 0ed*= not start its o#erations
here8
1. %n electrician testing the incoming the voltage for a residential house obtains . readings: 11.?
11&? 11? 11.? 111. 'hat is the average8

. % single sam#ling #lan is desired with a consumerHs ris( of ;.1; of acce#ting &.;@
nonconforming #roduct and a #roducerHs ris( of ;.;. of not acce#ting ;.6@ nonconforming
#roduct. -elect the #lan with the lowest sam#le size.
9is( 3anagement and 0inancial Institutions
Part One:
3ulti#le Choices:
1. /he o#tions that come into e=istence or disa##ear when the #rice of the underl!ing asset
reaches a certain barrier.
a. %sian O#tions
b. Barrier o#tions
c. Bas(et O#tions
d. Binar! O#tions
. /he volatilit! of this model is changes with the #assage of time:
a. *3'% 3odel
b. 4%33% 3odel
c. E*4% 3odel
d. 4%9C" 3odel
&. /he office which consists of ris( managers who are monitoring the ris(s being is ta(en is called
a. 0ront Office
b. 3iddle Office
c. Bac( Office
d. None of the above
,. % se#arate issue from the number of e=ce#tions is:
a. Bunching
b. 4rou#ing
c. -tress testing
d. None
.. /his simulation is a ver! #o#ular a##roach for estimating Ea9:
a. "istorical -imulation
b. %ccurac!
c. *=tensions
d. None of the above
*=amination Pa#er: 9is( 3anagement
IIB3 Institute of Business 3anagement 7
1. Out of the following which rate is defined as the s)uare of the volatilit!8
a. -tandard 5eviation
b. Eariance
c. 3ean
d. 3edian
6. 9is( measures satisf!ing all four conditions are referred to as:
a. /ime "orizon
b. %uto Correlation
c. Confidence level
d. Coherent
7. Onl! bonds with ratings of Baa or above are considered to be:
a. Investment grade
b. Internal Credit 9atings
c. %ltmanHs _F -core
d. None of the above
:. /he b!F #roduct of an! #rogram to measure < understand o#erational ris( is li(el! to be the
develo#ment of:
a. 9is( < Control self assessment
b. >e! 9is( Indicators
c. O#erational ris( Ca#ital
d. Casual 9elationshi#
1;. /he -ecurities that are sub$ect to a discount are (nown as a:
a. Collateralization
b. 5owngrade /rigger
c. "aircut
d. None of the above
Part /wo:
1. *=#lain OCollateralizationH.
. Briefl! e=#lain the O2inear 3odelH.
&. *=#lain the O4%9C"F3O5*2H.
,. *=#lain the Conce#t of O*=changeF/raded 3ar(etsH.
.. 5ifferentiate between the -!stematic vs. Nons!stematic 9is(.
*ach Kuestion carries 1; mar(s. c
1. In the 1:7;s? Ban(ers /rust develo#ed inde= currenc! o#tion notes MICONsG. /hese are
bonds in which the amount received b! the holder at maturit! varies with a foreign
e=change rate. One e=am#le was its trade at maturit! varies with a foreign e=change rate.
One e=am#le was its trade with the 2ong /erm Credit Ban( of Ja#an. /he ICON
s#ecified that if the !enLC- dollar e=change rate? -/ ? is greater than 11: !en #er dollar at
maturit! Min 1::.G? the holder of the bond receives N1?;;;. If it is less than 11: !en #er
dollar? the amount received b! the holder of the bond is 1?;;;F ma= T;? 1?;;; M11: F 1G
-/ 'hen the e=change rate is below 7,..? nothing is received b! the holder at maturit!.
-how that this ICON is a combination of a regular bond and two o#tions.
. -u##ose that the ris(Ffree zero curves is flat at 6@ #er annum with continuous
com#ounding and that defaults can occur halfwa! through each !ear in a new .F !ear
credit default swa#. -u##ose that the recover! rate is &;@ and the default #robabilities
each !ear conditional on no earlier default are &@. *stimate the credit default swa#
s#read. %ssume #a!ments are made annuall!.
&. -u##ose that 1F month? 1Fmonth? 17Fmonth? ,Fmonth? and &;Fmonth zero rates are ,@?
,.@? ,.,@? ,.1@? and ,.7@ #er annum? res#ectivel!? with continuous com#ounding.
*stimate the cash #rice of a bond with a face value of 1;; that will mature in &; months
and #a!s a cou#on of ,@ #er annum semiannuall!.
,. -u##ose that the economic ca#ital estimates for two business units are as follows:
Business Cnit
1
3ar(et ris( 1; .;
Credit ris( &; &;
O#erational ris( .; 1;
/he correlation between mar(et ris( and credit ris( in the same business unit is ;.&. the
correlation between credit ris( in one business unit and credit ris( in another is ;.6. the
correlation between mar(et ris( in one business unit and mar(et ris( in the other is ;..
%ll other correlations are zero. Calculate the total economic ca#ital. "ow much should be
allocated to each business unit8
*N5 O0 -*C/ION B
5etailed information should from the #art of !our answer M'ord limit ;; to .; wordsG. c
1. % Ban( is considering e=#anding its asset management o#erations. /he main ris( is
o#erational ris(. It estimates that the e=#ected o#erational ris( loss from the new venture
in one !ear is N million and the ::.:6@ worstFcase loss Marising from a large investor
law suitG is N,; million. /he e=#ected fees it will receive from investors for the funds
under administration are N1 million #er !ear and administrative costs are e=#ected to be
N. million #er !ear. *stimate the beforeFta= 9%9OC8 %lso e=#lain the two different
wa!s in which 9%9OC can be used8
. 'h! is there an addFon amount in Basel I for derivatives transactions8 ABasel I could be
im#roved if the addFon amount for a derivatives transaction de#ended on the value of the
transaction.B "ow would !ou argue this view#oint8
&. A% long forward contract sub$ect to credit ris( is a combination of a short #osition in a
noFdefault #ut and a long #osition in a call sub$ect to credit ris(.B *=#lain this statement.
-FF1;&11
Saíes Management
Sectíon A: Ob|ectíve Type (30 marks)
Part One:
Muítípíe Choíces:
1. Saíes executíves have responsíbííítíes for
coordínatíon whích ínvoíves
a. Indívíduaí
b. The organízatíon
c. The company
d. None of the above
2. Who researched buyer-seííer Dyads ín the
Lífe Insurance busíness
a. Hanrí Tosí
b. McMurry
c. Arnoíd
d. Frankíín Evans
3. Formuía for caícuíatíng Gross Margín ís
a. Saíes - Cost of saíes
b. Gross proñt - Cost of saíes
c. Saíes - Expenses
d. None of the above
4. Coach- and - pupíí method ís
a. Company Informatíon
b. Saíes Techníque
c. On - the - |ust Traíníng
d. Both (a) & (c)
5. Term ín whích ratío measures the
ehectíveness of saíes personneí ín securíng
order
a. "Loweríng Average"
b. "Battíng Average"
c. "Muítípíe Average"
d. None of the average
6. Dístríct saíes manager and píanníng
report ís caííed
a. Manager pían
b. Dístríct pían
c. Dístríct saíes pían
d. None of the above
7. Numerícaí expressíon índícatíng the
degree to whích one or more factor
assocíated wíth a gíven
products demand ís
a. Saíes Index
b. Product Index
c. Market Index
d. Company Index
8. Event that strengthens the buyers
tendency to make a partícuíar response ís
caííed
a. Reínforcement
b. Cue
c. Dríves
d. Both (a) & (b)
9. 2 Types of dríve ín íearníng process are
a. Innate and íearned dríve
b. Mutuaí and íearned dríve
c. Innate and mutuaí dríve
d. None of the above
10. The weak stímuíí whích determíne when
the buyer wííí respond
a. Cue
b. Response
c. Dríve
d. None of the above
Part Two:
1. Wríte a short note on "Saíes Resístance"?
2. What ís "Controíííng Seíííng Expenses"?
3. Wríte short note on "Product Líne Poíícy"?
4. What do you understand by "Straíght-
Commíssíon Pían"?
1. Evaíuate the Aííen Specíaíty Company´s
organízatíon and pían for coordínatíng saíes
and
advertísíng?
2. How shouíd Bíggerstah answer Haííoram´s
compíaínt?
1. *valuate "oldenHs recruiting #rogram? suggesting whether or not the com#an! should have
continued its college recruiting of sales engineers8
. 'hat criteria should a good sales engineer should im#lement to u#lift the com#an! sales8
1. 'rite in brief about motivation of sales #ersonnel8
. 'rite in brief about setting u# a sales organization8
S2P Consultanc,
/his section consists of 3ulti#le Choice Kuestions c < /rueL0alse.
%nswer all the Kuestions. c
*ach )uestion carries 1 3ar(. c
Part one:
3ulti#le choices:
1. 'hich feature or element not found on ever! screen of the -%P a##lication window8
a. /itle bar
b. Central wor( area
c. -tandard toolbar
d. None of the above
. -%P *as! %ccess -creen contains a set of folders called________________.
a. 0avorites 3enu
b. -!stem 3enu
c. *nvironment 3enu
d. -tandard /oolbar
&. 'hat will be dis#la! when the s!stem shortcut menu icon clic(ed8
a. -ervice order
b. -hort menu of command
c. -!stem menu
d. -mall a##lication bar
,. "ow much buttons contain in a##lication toolbar for issuing commands that are related to
these screen elements8
a. 1
b. 6
c. 7
d. :
.. /he ____________allows to ad$ust the size < sha#e of the a##lication window b! clic(ing <
dragging it into a new #osition.
a. 0rame grabber
b. Panel
c. 0rames
d. -election bo=
1. 'hat will be highlight when a selection bo= is clic(ed8
a. -elected bo=
b. Ob$ect codes
c. 2ist icon
d. 0rame
*=amination Pa#er: -%P Consultanc!
IIB3 Institute of Business 3anagement .
6. /he #rocedure begins at the ____________in the a##lication toolbar of the table.
a. 5elete button
b. Choose la!out screen
c. 2a!out setting button
d. None of the above
7. ___________are created in -%P ,.6 to trac( the activities < cost of installing and maintaining
technical e)ui#ment.
a. 3aintenance Processing
b. 2ogistics
c. Plant maintenance
d. %ll of the above
:. 'hich screen contains seven data fields in which the eFmail < its attached documents are
described8
a. 5ocument content sub screen
b. %ttribute sub screen
c. Create < send document screen
d. 9eci#ient sub screen
1;. /he 2in(s for all the transaction in the financial and controlling modules which are use to
manage budgets and costs are hold b!________.
a. %ccounting folder
b. Cser menu folder
c. 0avorites folder
d. 2ogistics folder
/rue < 0alse:
1. 9oot folder is (nown as -%P menu.
. Clic( the customizing of local la!out button to dis#la! its menu? then follow the menu #ath
Mcustomizing of local la!out d new visual designG
&. /he title bar dis#la!s the name of the screen in the a##lication window.
,. /he command buttons e=ecute internal tas(s.
.. -%P 9L& is a #ac(age of integrated a##lication.
1. /he re#orting transaction creates < change ob$ects in their database records.
6. Business wor(#lace screen hel#s to create and send new email.
7. /he create document and send screen a##ears when clic( the mail reci#ient button.
:. In saving a dis#la! variant? second ste# of #rocedure is o#tional.
1;. 2ine item fields are strings of fields in which !ou can enter several bits of coded <
short te=t data about an ob$ect.
1. 'hat is -%P 9L&8
. *=#lain ACentral 'or( %reaB.
&. "ow man! formats of 5ata entr! field a##ears on initial screen8
,. 5efine Plant 3aintenance.
%ttem#t an! & Kuestions. c
1. "ow can !ou change the names of folders < lin(s in !our favorites folders at an! time8
. "ow can !ou use (e!stro(es to e=ecute commands on ob$ects in !our favourites folders8
&. "ow to customizing the -%P eas! access screen8
,. 'hat is a #rocedure to filtering a line item re#ort8 *=#lain with e=am#le.
1. 'ith the hel# of #ro#er diagram e=#lain the ste#s use to customizing with the new visual
design command.
. *=#lain the elements which are found on ever! screen of the -%P a##lication window.
S2P Consultanc,
-ection %: Ob$ective /!#e M; mar(sG
/his section consists of 3ulti#le Choice Kuestions c < /rueL0alse.
%nswer all the Kuestions. c
*ach Kuestion carries 1 3ar(. c
3ulti#le choices:
1. 'hich one of the following is a (e! com#onent of -%P 'eb a##lication s!stem8
a. J**
b. EB.Net
c. Java
d. -K2
. -%P has o#timized the data flow between the _______and the _______servers.
a. -P55? -P%C
b. Presentation ? a##lication
c. K%-? P95
d. None of the above
&. ___________ is the -%P transaction that is used to generate the %B%P loads.
a. -4*N
b. I34
c. K%-
d. -P%C
,. __________ are areas of tem#orar! storage that hel# to access more ra#idl! data and e=ecute
%B%P #rograms faster.
a. 9%3
b. Buffer
c. 9O3
d. %ll of the above
.. 'hich 9oadma# #rovides a methodolog! for the im#lementation of global customer solution8
a. /echnical 9oadma#
b. -olution 9oadma#
c. Im#lementation 9oadma#
d. 4lobal /em#late 9oadma#
1. /he rectangular bo=es that are found on nearl! ever! initial and out#ut screen in the -%P
s!stem are referred as_______________
a. -torage 0older
b. Central 'or( %rea.
c. Chec( Bo=es
d. 5ata 0ields
*=amination Pa#er: -%P Consultanc!
IIB3 Institute of Business 3anagement
6. 'hile entering user #rofile data? the third ste# is to____________
a. 4o to the menu bar
b. Clic(s the defaults tab
c. 3aintain user #rofile #o#u# screen
d. Clic( the save button
7. -%P 9L& is #ac(ages of integrated a##lications called _______ that record and trac( the
activities and costs of doing business.
a. 3odule
b. /rac(er
c. Pro$ect
d. Controller
:. 'hat allows !ou to ad$ust the size and sha#e of the a##lications window b! clic(ing and
dragging it into a new #osition8
a. -!stem 5ata 0ield
b. 0rame 4rabber
c. 3essage 0ield
d. None of the above
1;. /he wait time should fall under 1;@ of the total _______.
a. 2oad /ime
b. 9es#onse /ime
c. 5atabase /ime
d. *n)ueue /ime
/rue < 0alse:
1. -%PHs standard smartFcard authentication allows a AsaferB authentication #rocess.
. Proof of obligation is not necessar! for confirming and guaranteeing.
&. % digital signature is e)uivalent to the traditional hand written signature on #a#er documents.
,. /he #ur#ose of the #ro$ect #re#aration is to #rovide initial #lanning and #re#aration for -%P
#ro$ect.
.. CC3s stand for Common Center 3anagement -!stem.
1. "//P is the default #rotocol for transferring files on the 'orld 'ide 'eb.
6. /o send a short message to another -%P user on the same s!stem? select s!stem short
message from an! screen.
7. %B%P #rocessor is a free wor( #rocess? ma(ing o#timal use of s!stem resources and
balancing the s!stem load.
:. 5ebugger is a tas( similar to running a #rogram.
1;. %##lication 2in( < *nables M%2*G not allows integration between a##lications in distributed
-!stems.
*ach Kuestion carries . mar(s. c
1. *=#lain the Process for starting < sto##ing -%P s!stems.
. 5istinguish between -P%55 and -P%PC.
&. 5efine O2ightweight 5irector! %ccess ProtocolH.
,. *=#lain the 9e#ositor! Information -!stem8
1. *=#lain Installation and Planning Conce#ts of -%P.
. 5escribe the %B%P dictionar! in -%P -!stem.
&. 'hat is -%P u#grade Pro$ect < e=#lain its (e! success factors8
,. *=#lain the different t!#es of buffering table.
1. *=#lain the ste#s for the creation #rocess of a 'eb 5!n#ro %##lication.
. *=#lain the Cser 3aster 9ecord 0ids and its available o#tions. Briefl!.
Services Mar3etin"
3ulti#le Choices:
1. /he e=tent to which customers recognize and willing to acce#t this variation is called:
a. _one of tolerance
b. _one of fitness
c. _one of acce#tance
d. None of the above
. -*9EKC%2 is used to measure service )ualit!. M/L0G
&. -'IC- stands for\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\
,. 9eal L#erceived and monetar!Lnon monetar! costs are termed as switching costs.M/L0G
.. /%9P stands for \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\.
1. If the direct cost be OaH? overhead cost be ObH and #rofit margin be OcH then the cost based #ricing
can be calculated b!:
a. aYbYc
b. aFbYc
c. aLb^c
d. None of the above
6. If the #ercentage change in )ualit! #urchased be OaH and the #ercentage change in #rice be HbH
then elasticit! is given b!:
a. a^b
b. aLb
c. aYb
d. aFb
7. If the actual revenue be OaH and the #otential revenue be ObH then the !ield can be given b!:
a. aFb
b. aYb
c. aLb
*=amination Pa#er: Customer 9elationshi# 3anagement
7
IIB3 Institute of Business 3anagement
d. bLa
:. 9eactors ma(e ad$ustments unless forced to do so b! environmental #ressures.M/L0G
1;. 2east #rofitable customers are categorized in:
a. Platinum
b. 4old
c. Iron
d. 2ead
Part /wo:
1. 'hat do !ou understand b! ACustomer 4a#B8
. 'rite the difference between #erce#tions of service )ualit! and customer satisfaction.
&. 'rite short A-*9EKC%2B surve!.
,. 'hat are different t!#es of ACom#lainerB8
1. "ow do !ou thin( 4iordano hadLwould have to ada#t its mar(eting and o#erations strategies and tactics when
entering and #enetrating !our countr!8
. 'hat general lessons can be learned from 4iordano for other ma$or clothing retailers in !our
countr!8
1. 'hat did J!s(e Ban( change to enable it to deliver its new com#etitive #ositioning8
. "ow did J!s(e Ban( im#lement those changes8
1. Choose a firm !ou are familiar with. 5escribe how !ou would design an ideal service recover!
strateg! for that organization.
. 5iscuss the customerHs role as a #roductive resource for the firm. 5escribe a time when !ou
#la!ed this role. 'hat did !ou do and how feel8 5id the firm hel# !ou #erform !our role
effectivel!8 "ow8
Strate"ic Mana"ement
-ection %: Ob$ective /!#e M&; mar(sG
Part one:
3ulti#le choices:
1. /hese are the #lans formulated to achieve strategic goals.
a. /actical #lans
b. -trategic #lans
c. O#erational #lans
d. -tanding #lans
. /his strateg! facilities s#ecialization b! establishing a #osition of overall cost leadershi#?
differentiation? or both? but onl! within a #articular segment? in an entire mar(et.
a. -#ecific
b. 0ocus
c. 5irective
d. 5ifferentiation
&. /his #lan basicall! defines the actions of ma$or de#artments and other subFunits that are re)uired
in the e=ecution of a strategic #lan.
a. /actical #lan
b. O#erational #lan
c. -ingleFuse #lan
d. 2ongFterm #lan
,. /his is a distinctive business or collection of related business? that can be managed relativel!
inde#endent of other businesses within the organization
a. 0unctional unit
b. 5e#artment unit
c. Organizational unit
d. -trategic business unit
.. /hese strategic #lans of the organization have a timeFframe e=ceeding five !ears.
a. -hortFterms #lans
b. -ingleFuse #lans
c. 2ongFterm #lans
d. Intermediate #lans
-emester II *=amination Pa#ers
IIB3 Institute of Business 3anagement
1. O#erational #lans are mainl! oriented towards issues that usuall! have a time horizon of
a. %bout five !ears
b. & to . !ears
c. 1 to !ears
d. One !ear or less
6. /hese refer to the determination of the #ur#ose and the basic longFterm ob$ectives of an
enter#rise? and the ado#tion of courses of action and allocation of resources necessar! to achieve
these aims.
a. -trategies
b. Plans
c. Policies
d. Procedures
7. /hese strategies #rovide guidelines for organizational growth
a. Organizational
b. 0inance
c. 3ar(eting
d. 4rowth
:. /here are the three ma$or (inds of standing #lans: #olicies? rules? and
a. Pro$ects
b. Programs
c. Procedures
d. -tandards
1;. /his ste# in the #lanning #rocess involves #utting the #lan into action.
a. Im#lementation
b. -election
c. *valuation
d. 9eview
Part /wo:
1. *=#lain the O%da#tive modeH of strategic management.
. 'hat is OBehavioral theor!H8
&. 'rite about O5el#hi techni)ueH of forecasting.
,. 'hat are the basic ste#s one should follow for the OEalue chain anal!sisH8
1. If !ou were a##ointed as a C*O of %*2? 'ould !ou li(e to go for a se#arate design division8
. Criticall! evaluate the future #lans of %*2.
&. 5o !ou thin( the target set b! %*2 was realistic8 Comment.
,. Comment on the management strategies ado#ted b! %*2.
1. %s >arti(? what would have been !our strategies to deal with the defaulters8
. 'hat ste#s should >arti( ado#t before e=#ansion and diversification8 'ould it be a wise decision
to diversif! at this stage8
1. -trategic #lanning involves both? the develo#ment of organizational ob$ectives and the
la!ing down of s#ecifications about how the! will be accom#lished. In this conte=t?
outline the ma$or ste#s in the strategic #lanning #rocess.
. Im#lementing strategies effectivel! is of great im#ortance. /he success of a strateg!
de#ends on how effectivel! it is im#lemented. *lucidate.
Telecom Mana"ement
Telecom Technolo"ies
3ulti#le Choices:
1. 'hich technolog! is among the earl! starter in #roviding Eo'i0i solutions for enter#rises with
wireless networ(s8
a. -!mbol /echnologies
b. Eocera /echnologies
c. -#ectra lin( /echnologies
d. None of the above
. In wireless networ(s ___________ refers to the measure of the #erformance for a s!stem
reflecting its transmission )ualit! < service availabilit!.
a. Internet s#eeds
b. Kualit! of -ervice MKO-G
c. Intero#erabilit!
d. 2ine of -ight
&. % single IPFbased core networ( handling the full range of telecom services.
a. Power line Communication MP2CG
b. EOIP
c. O0CO3
d. Ne=t 4eneration Networ(s
,. 'hich countr! has the strong com#etitive broadband mar(et with a #enetration of 11@8
a. India
b. C-%
c. Ja#an
d. China
.. Out of the following which #ro$ect aims to substantiall! re#lace all of BtHs e=isting networ(
#latform MP-/5N? I-5N etcG with a single unified IP #latform.
a. %5-2
b. 1CN
c. %/3
d. -"5-
*=amination #a#er: /elecom 3anagement
IIB3 Institute of Business 3anagement 6
1. 'hich generation of mobile tele#hon! will serve both voice < data a##lications8
a. 14
b. 4
c. &4
d. ,4
6. /his is a high bandwidth wireless networ(ing service that o#erates in the fre)uenc! s#ectrum of
7F&1 4"z range.
a. 335-
b. 235-
c. B'
d. None
7. 'hich management establishes the right architecture to deliver more #roducts? better leveraging
develo#ment < de#lo!ment e=#enditures8
a. Product Portfolio 3anagement
b. Partner 3anagement
c. Platform 3anagement
d. None of the above
:. ___________ 0re)uencies allow multi#le service #roviders to utilize the same section of the
s#ectrum < com#ete with each other for customers.
a. 2icensed
b. Cnlicensed
c. Both
d. None of the above
1;. 2%-FC53% stands for ____________________.
Part /wo:
1. 'hat is Bac(hauling solution8
. 'hat is Broadband8
&. 'hat is 'i3%I8
,. 'hat is /"IPON8
.. 'hat is a EO'i0i8
1. Comment on the strateg! which is ado#ted b! the 0CC Abroadband wire line Internet access
servicesB is fruitful or not8
1. *=#lain the conce#t of %/5I.
. 'hat are the measures which are behind the success of the %/5I methodolog!8
&. 'hat is 4-3L&4 technolog!8
,. 'rite down the ste#s which are to be (nown in auto #lanning.
1. 'i0iLmobile roaming and Eo'i0i ma! #la! an im#ortant role for fi=edFmobile convergence.
*=#lain.
. 5oes a Olight touchH regulation regime ma(e sense within the N4N environment8 'hat benefits
< ris(s do !ou see with a OlightFtouchH8
Telecom Mana"ement
-ection %: Ob$ective /!#e M&; 3ar(sG
Part One:
3ulti#le Choices:
1. /his band transmits u#lin( around the 14"z range < downlin( around the ,4"z range.
a. CFBand
b. >uFBand
c. >aFBand
d. 2FBand
. On these trun(s? traffic flows in both the incoming < outgoing directions.
a. 5O5 trun(s
b. 5I5 trun(s
c. /woFwa! local e=change trun(s
d. None of the above
&. %s networ(s become more digitized? fewer conversions ta(e #lace? and voice can be carried at a
higher )ualit! over fewer flower bits #er second.
a. PC3
b. %5PC3
c. 5C-s
d. 52Cs
,. _____________ is a standard for storage < retrieval of moving #ictures < audio on storage
media.
a. 3P*4F1
b. 3P*4F
c. 3P*4F,
d. 3P*4F6
.. It is an o#en standard for digital video transmission over cable that was defined b! */-I <
ratified in 1::,.
a. 5EBF"
b. 5EBF/
c. 5EBFC
d. 5EBF- < 5EBF-
1. It is the oldest of 5-2 technologies < a s!mmetrical service? measuring that it #rovides e)ual
bandwidth in the both directions.
a. "5-2
b. -5-2
c. 4. -"5-2
d. %5-2
6. It is the newest s#read s#ectrum techni)ue? and its main #ur#ose is to resolve the #roblems.
a. C53%
b. /53%
c. O053
d. %5PC3
7. It is a new conce#t in multimedia mobile broadcasting service? converging broadcasting and
telecommunications.
a. 53B
b. O053
c. E0
d. None of the above
:. It is a Niche broadband wireless technolog! that at first a##ears to com#lete for mar(et share with
mobile 'i3a= < 3obileF0i.
a. "i#er%ccess
b. "i#er3an
c. iBursrt
d. */-I B9%N
1;. InF0C-IOHs Mwww. Infusion.comG __________ is best (nown for its business model? which
su##orts a variet! of revenue models? including #a!F#erFlevel and -3- high scores.
a. Java3*
b. B9*'
c. *I*n
d. 3o#hun
Part /wo:
1. -tate the #rotocols < im#lementations which are associated with 3esh Networ(.
. 'rite a short note on "0C %rchitecture and draw the to#olog! of an "0C networ(.
&. 'hat is the IP multimedia s!stem8
,. 'hat is -!mmetric *ncr!#tions8
.. Briefl! e=#lain the ma$or la!ers of IP/ networ( ta=onom!.
1. "ow does this case demonstrate the im#ortance of data transmission rates in business8 5oes it
im#l! that #eo#le in Ja#an are willing to acce#t lower data rates than #eo#le in the C.-.8
. -ome #eo#le sa! that the Internet fosters globalization b! #roviding world wide access to the
'eb. 5iscuss arguments for and against this statement
1. 'h! might #ortable com#uting and des(to# com#uting call for different t!#es of micro#rocessors8
. 9eview the #erformance variables. In which areas did the /ransmeta chi# tr! to e=cel
1. 5N- is a distributed database s!stem that o#erates on the basis of a hierarch! of names. *=#lain
the statement < also e=#lain how 5N- servers wor(.
. *=#lain the wor(ings of 4-3? C'C? CdmaOne < P5C technologies of digital cellular.
CASE STUDY ANSWERS
ASSIGNMENT SOLUTIONS
PROJECT REPORTS AND THESIS
ISBM / IIBMS / IIBM / ISMS / KSBM /
NIPM
SMU / SYMBIOSIS / XAVIER / NIRM /
PSBM / NSBM / ISM / IGNOU / IICT / ISBS
/ LPU / ISM&RC
MBA - EMBA - BMS - GDM - MIS - MIB
DMS - DBM - PGDM - DBM - DBA
www.mbacasest!"a#swe$s.c%m
www.casest!"s%&t'%#.'#
www.casest!'es.c%.'#
a$a+'#!.ba#a,a$-.ma'&.c%m

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