M B A PDF
M B A PDF
Seat
No.
M.B.A. – I (Semester – I) Examination, 2014
PERSPECTIVES OF MANAGEMENT (Paper – I)
1. Case : 14
Hari Nayak had been employed with Trident Data System for five years. During
that time, he progressed from programmer to senior programmer analyst. He was
generally pleased with the company and enjoyed the creative demand of his job.
One Saturday afternoon during the tennis game with his friend and coworker
Ramesh, Hari discovered that his department had hired a recent university graduate
as a programmer analyst. Although Hari was good-natured, he got upset when he
learned the new person’s starting salary was only Rs. 500 lesser than him. Hari
was confused and felt that he was being treated unfairly. He started thinking
continuously on this issue. The following Monday morning, Hari, went to Devdas
Shenoy, the personnel director and asked whether what he heard was true. Devdas
Shenoy admitted that it was true and tried to explain company’s situation. He said
“Hari, the market of programmer analyst is very tight. In order for the company to
attract qualified prospects, we have to offer a premium starting salary. We
desperately needed another analyst and this was the only way we could get one”.
Hari Nayak asked Devdas Shenoy whether his salary would be increased
accordingly. Devdas answered “your salary will be evaluated at the regular
performance appraisal time. You are doing a good job and I am sure the boss
recommends the increase in salary”. Hari thanked Devdas for spending his time
but left the office with very low spirit and demotivated. Hari was worried about
his future with the company.
1) Analyse the above case
2) Identify problem in this case
3) Suggest alternative solutions
4) Identify best alternative.
P.T.O.
SLR-A – 1 *SLRA1*
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*SLRA10* SLR-A – 10
Seat
No.
1. ABC Ltd. Is considering the purchase of machinery two machines X and Y are
available each costing Rs. 1,00,000. Company uses Straight Line Depreciation
method. 14
Year Machine X Machine Y
1 40000 20000
2 50000 40000
3 50000 50000
4 40000 70000
5 30000 40000
Consider tax rate is 35%. Which machine should be purchased ? With the help of
the above given information you are required to calculate :
1) Payback period
2) ARR
3) Net Present Value at 10%
4) PI.
(PV@10% 1) 0.909, 2) 0.826, 3) 0.751, 4) 0.683, 5) 0.621)
P.T.O.
SLR-A – 10 -2- *SLRA10*
5. Royal cement Ltd. Sell its products on a gross profit of 20% on sales. The
following information is extracted from its annual accounts for the year ended
31st December. 14
Particulars Rs.
Sales at 3 months credit 40,00,000
Raw material 12,00,000
Wages paid 15 days in arrears 9,60,000
Manufacturing expenses paid one month in arrears 12,00,000
Administrative expenses paid one month in arrears 4,80,000
Sales promotion expenses payable Half yearly in advance 2,00,000
Income tax payable quarterly last instalment falls due in next year 4,00,000
The company enjoys one month’s credit from the suppliers of raw material and
maintains 2 months stock of raw materials and one and half month’s of finished
goods. Cash balance is maintained at Rs. 1,00,000. Assuming 10% margin for
contingencies. Find out the working capital requirements of Royal Cement Ltd.
*SLRA10* -3- SLR-A – 10
6. Following are the financial statements of ABC Ltd. for the year 2012-13 14
Balance Sheet as on 31st March 2013
Liabilities Rs. Assets Rs.
7% Preference share capital 2,00,000 Buildings 6,00,000
Equity share capital 8,00,000 Plant and Machinery 4,00,000
General Reserves 9,00,000 Furniture 2,00,000
Retained Earnings 25,000 Patents 50,000
6% Debentures 1,00,000 Cash 2,20,000
Long term loan 80,000 Bank 1,30,000
8% bond 20,000 Short term investment 1,80,000
Creditors 60,000 Sundry Debtors 1,15,000
Bills Payable 20,000 Bills Receivables 80,000
Bank overdraft 20,000 Stock 3,00,000
Outstanding expenses 20,000 Prepaid expenses 20,000
Proposed dividend 50,000
Total 22,95,000 22,95,000
Additional Information for the year ended 31-3-2013 :
Sales 24,00,000
Less : Cost of goods sold 16,00,000
Gross profit 8,00,000
Expenses 7,00,000
Net profit 1,00,000
You are required to compute the following ratios :
1) Current Ratio
2) Acid test Ratio
3) Gross profit Ratio
4) Debt-Equity Ratio
5) Net Profit Ratio
6) Total Assets Turnover Ratio
7) Operating Ratio.
7. What do you mean by long term financing ? Discuss various sources of long
term financing ? 14
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*SLR-A-11* SLR-A – 11
Seat
No.
P.T.O.
SLR-A – 11 -2- *SLR-A-11*
5. Define plant layout. Describe the types of plant layout with suitable diagrams. 14
7. What do you mean by materials management ? Explain its primary and secondary
objectives. 14
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*SLRA13* SLR-A – 13
Seat
No.
1. Read the following passage carefully and answer the following questions. 14
The dominant modem belief is that the soundest foundation of peace would be
universal prosperity. One may look in vain for historical evidence that the rich
have regularly been more peaceful than the poor, but then it can be argued they
have never felt secure against the poor; that their aggressiveness stemmed from
fear; and that the situation would be quite different if every body were rich. Why
should rich man go to war ? He has nothing to gain. Are not the poor, the exploited
the oppressed most likely to do so, as they have nothing to loose but their chains ?
The road to peace, it is argued is to follow the road to riches.
This dominant modem belief has an almost irresistible attraction as it suggests
that the faster you get one desirable thing the more securely do you attain another
is doubly attractive because it completely bypasses the whole question of ethics.
There is no need for renunciation or sacrifice on the contrary ! We have science
and technology to help us along the road to peace and plenty, and all that is
needed is that we should not behave stupidly, irrationally, cutting in to our own
flesh. The message to the poor and discontented is that the must not impatient
by upset or kill the goose that will assuredly, in due course, lay golden eggs also
for them. And the message to the rich is that they must be intelligent enough
from time to time help the poor, because this is the way by which they will
become richer still.
P.T.O.
SLR-A – 13 *SLRA13*
6. What do you mean by International Liquidity ? What are the efforts made by the
IMF to solve the problems ? 14
7. Define Industrial sickness. What are the stapes taken by BIFR to solve the
problem ? 14
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*SLRA14* SLR-A – 14
Seat
No.
Instructions : 1) Q. 1 is compulsory.
2) Attempt any two questions from Q. 2 to Q. 4.
3) Attempt any two questions from Q. 5 to Q. 7.
4) All questions carry equal marks.
1. Case study :
Mr. Sujay Sakare is the project manager at Al Saba Construction Company in
Dubai. It is a flourishing company with several construction projects in Dubai
and abroad. It is known for completing projects on time and with high quality
construction. The company’s chairman is a rich and highly educated Omani. A
German Engineer is Sujay’s Vice-President for urban and foreign construction
projects.
Three months ago, Al Saba had submitted a tender for a major construction
project in Kuwait. Its quotation was for US$40 million, in Kuwait. The project was
sponsored and announced by a US based construction company called Fema.
According to Al Saba, their bid of 40 million dollars was modest but had included
a high margin of profit.
On 25th March, Sujay was asked to go to Kuwait to find out from the Fema
project manager the status of their construction proposal. Sujay was delighted to
know that Fema had decided to give his company the construction project work,
the project meant a lot for Al Saba as they had already put a lot of effort and
money in planning the proposed construction in Kuwait.
But before Sujay could thank the Fema project manager he was told that their bid
should be raised to $43 million. Sujay was surprised. He tried to convince the
Fema project manager that his company had the best reputation for doing
construction work in a cost effective way. However he could always raise the bid
by $3 million. But he wanted to know why he was required to do so.
P.T.O.
SLR-A – 14 -2- *SLRA14*
The Fema manager’s reply was “That is the way we do our business”, in this part
of the world. $1 million will go to our MD in USA, I shall get $1 million, you
Mr. Sujay will get $1 million in a specified account in Swiss bank.
Sujay asked “but why me” ? “So that you will never talk about it to anyone” the
fema manager said. Sujay promised never to leak it out to anyone else, and he
tried to bargain to raise the bid by $2 million. Sujay was familiar with the practice
of “Pay of Ts”, involved in doing business with the middle east. But he was never
personally involved in any such thing. He thought it was against his loyalty to his
company and his personal ethics.
Sujay promised the Fema project manager that the bid would be raised to $43
million and fresh paper would be put in. He did not want to lose the job.
He came back to Dubai and kept trying to figure out how he should place the
whole thing before his German Vice President. He was obviously at a loss.
Questions :
1) Analyze the case 5
2) Analyze the reason for Sujay Sakare’s dilemma. 4
3) In your view what should Sujay Sakare do ? Should he disclose it to his
German Vice President ? 5
The incumbent should be MBA (Marketing) degree holder from a reputed institute
with at least 3 years of experience in relevant field. Knowledge of Marathi language
in essential. Pay band for the post is Rs. 15,600 – Rs. 39,100 with grade pay
Rs. 6,600/- per month. Additional increments can be considered for higher
qualification/experience. The company name and address is : Shah and Sons,
M. G. Road, Pune – 01. 14
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*SLRA15* SLR-A – 15
Seat
No.
6. What do you mean by scaling in research ? Explain any three scaling techniques
with examples.
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*SLRA16* SLR-A – 16
Seat
No.
Instructions : 1) Q. 1 is compulsory.
2) Solve any two questions from Q. 2, Q. 3 and Q. 4.
3) Solve any two questions from Q. 5, Q. 6 and Q. 7.
c) What is Decision Theory and what are various decision making environments ?
Player B
B1 B2 B3 B4
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⎢ ⎥
A 2 ⎢5 6 4 5⎥
Player A ⎢ ⎥
A 3 ⎢⎣7 2 0 3 ⎥⎦
b) Explain steady state condition of Markov Chain with procedure for determining
steady state.
5. A company has three factories where goods are produced and four warehouses
to store that. The requirement at warehouse and capacities of factories are given
below. Table contains transportation cost from each factory to each warehouse. 14
5. What is primary data ? Explain in detail the various sources of primary data. 14
6. What is research design ? Explain the various types of research design used in
research. 14
7. Assume you are the head of marketing research department of ‘X’ mobile phone
company, you are going to study the satisfaction level of the customer towards
your brand , prepare the questionnaire with considering all type of questions. 14
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*SLRA18* SLR-A – 18
Seat
No.
1. Analyze the following case, identify the problem, provide alternate and best
solution for the same : 14
DD is the India’s premier public service broadcaster with more than 1,000
transmitters covering 90% of the country’s population across on estimated
70 million homes. It has more than 20,000 employees managing its metro and
regional channels. Recent years have seen growing competition from many private
channels numbering more than 65, and the cable and satellite operators (C and S).
The C and S network reaches nearly 30 million homes and is growing at a very
fast rate.
DD’s business model is based on selling half – hour slots of commercial time to
the programme producers and charging them a minimum guarantee. For instance,
the present tariff for the first 20 episodes of a programme Rs. 30 lakhs plus the
cost of production of the programme. In exchange the procedures get 780 seconds
of commercial time that he can sell to advertisers and can generate revenue.
Break-even point for procedures, at the present rates, thus is Rs. 75,000 for a
10 second advertising spot. Beyond 20 episodes, the minimum guarantee is
Rs. 65 lakhs for which the procedures has to charge Rs. 1,15,000 for a 10 second
sport in order to break-even. It is at this point the advertisers face a problem –
the competitive rates for a 10 second spot is Rs. 50,000. Procedures are
P.T.O.
SLR-A – 18 *SLRA18*
possessive about buying commercial time on DD. As a result the DD’s projected
growth of revenue is only commercial time on DD. As a result the DD’s projected
growth of revenue is only 6-10% as against 50-60% for the private sector channels.
Software suppliers, advertisers and audiences are deserting DD owing to its
unrealistic pricing policy. DD has options before it. First, it should privates, second
it should remain purely public service broadcaster and third, a middle path. The
challenge seems to be exploit DD’S immense potential and emerge as a formidable
player in the mass media.
a) Analyse the case.
b) From the above case what are the two reasons for failure of ERP solutions ?
c) What should have been the realistic operating scenarios for success ?
7. Explain corporate level strategy. What are four alternatives of Corporate Level
Strategy ? 14
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*SLRA19* SLR-A – 19
Seat
No.
1. For production of 10,000 Electrical Automatic Irons the following are budgeted
expenses : 14
Per Unit
(Rs.)
Direct materials 60
Direct labour 30
Variable overheads 25
Fixed overheads (Rs. 1,50,000) 15
Variable expenses (Direct) 5
Selling expenses (10% fixed) 15
Administration expenses (Rs. 50,000 5
rigid for all levels of production)
Distribution expenses (20% fixed) 5
Total cost of sale per unit 160
Prepare a flexible budget for production of 6,000, 7,000 and 8,000 irons showing
distinctly marginal cost and total cost.
P.T.O.
SLR-A – 19 -2- *SLRA19*
5. The following information is obtained from Joseph and Co. in the year 2010-11 : 14
Sales Rs. 2,50,000
Variable costs
Material Rs. 1,00,000
Labour Rs. 50,000
Fixed cost Rs. 75,000
Units 10,000
a) Find P/V Ratio, Break Even Point and Margin of Safety at this level.
b) Calculate effect of the following on P/V Ratio, Break Even Point and Margin of
Safety :
i) Rs. 5,000 increase in fixed costs
ii) 10% increase in labour cost per unit
iii) 10% decrease in sales volume
iv) 10% decrease in selling price per unit
v) 10% decrease in material cost per unit.
*SLRA19* -3- SLR-A – 19
6. a) A company manufacturing two products furnishes the following data for a year : 7
Product Annual output Total Machine Total number of Total number
(units) hours purchase orders of set-ups
A 5,000 20,000 160 20
B 60,000 1,20,000 384 44
The annual overheads are as under :
Rs.
Volume related activity costs 5,50,000
Set-up related costs 8,20,000
Purchase related costs 6,18,000
You are required to calculate the cost per unit of each product A and B
based on :
i) Traditional method of charging overheads
ii) Activity based costing method.
b) Explain the concept of management accounting. 7
P.T.O.
SLR-A – 2 -2- *SLRA2*
Insurance 1,000
Drawings 8,000
Accounts receivable 15,000
3,38,000 3,38,000
You are required to prepare Trading and Profit and Loss Account for the year
31st March 2012 and Balance Sheet as on that date. Adjustment to be made
are given below :
1) Closing inventory Rs. 20,000
2) Depreciation 10% on all assets
3) Provision for bad and doubtful receivables at 5% on debtors
4) Outstanding salary Rs. 5,000 and outstanding wages Rs. 3,000.
1. Analyse the following case, identify the problem, provide alternate and best
solution for the same. 14
Raghu is running a small shop in a small town is content with earning his limited
living. He is religious in outlook and compassionate towards others. One afternoon,
when it was raining, an old man, a poor vendor of herbs named Satya comes to
his shop. He is suffering from high temperature. Raghu provides him food, shelter
and needed care to recover from his illness. In the morning, the visitor is again
provided hospitality. He then leaves for another destination leaving behind a
pouch containing six gold coins and a ring studded with gems. Raghu waits for
several months for the visitor to return to collect the valuables. At last, on the
persuasion of his wife Jamuna, he sells the contents of the pouch one by one,
sets up a bigger shop, and builds a comfortable house for himself to live in. He
starts life with dignity in society.
One fine day, suddenly Satya makes his appearance. Raghu is shocked. He is
not as hospitable as before. On the contrary, he wishes that Satya leaves quickly.
As Satya is about to leave, conscientious Raghu asks : “Did you leave behind
something here when you visited last time ?” Satya says : “I don’t know. God
knows everything.”
a) Analyse the above case.
b) Identify the problem in the above case.
c) Provide alternate solutions to the problem identified
d) Identify the best solution and justify.
P.T.O.
SLR-A – 20 *SLRA20*
6. Define ethics and business ethics. Describe in detail ethics in marketing and
media. 14
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*SLRA21* SLR-A – 21
Seat
No.
1. Twelve years ago computer chips, in the eyes of consumers, were a generally
unknown component of PCs – a commodity product. From a competitive standpoint,
a computer chip is a typical commodity. Chips are something most customers
don’t see, many don’t understand, and large numbers don’t care about. But Intel
has built a brand around a commodity. Intel already had an established reputation
as a quality producer of microprocessors amongst the OEMs. However, Intel
needed to differentiate itself from its competitors and build a consumer brand.
Intel believed it could position its chips as a premium product, which it could in
turn sell at a premium price to computer manufacturers. To give computer
manufacturers and their retail customers more reason to identify Intel in their
marketing, Intel chose to market its product as a branded component. They
chose to invest in “ingredient” branding – the creation of equity as an input brand.
In 1991, Intel launched the successful co-op program in which they convinced
manufacturers to place the “Intel inside” logo unit in their advertising and other
marketing material. The name “Intel inside” became the first trademark in the
electrical component industry. This campaign focused the entire organization
around the brand and created a highly effective advertising campaign. The Intel
Inside campaign aimed to-educate both the retail sales associated and the
consumers about the value of Intel microprocessors, and to explain to them the
differences between the microprocessors- without the technical jargon. Ten years
into the campaign, products that dont boast the presence of Intel inside are
bound to arouse suspicion among consumers. People will wonder, “Why don’t
they use Intel chips ? Are they using something cheaper, or not as good ?”
P.T.O.
SLR-A – 21 *SLRA21*
“Intel inside” was the first, and arguably the best, “ingredient” branding and thanks
to that campaign everyone knows that Intel chips are inside computers. But the
success of that ad push, which made its debut in 1991, created an image of Intel
as a staid chipmaker. ‘Intel inside’ did a great job of making a brand out of
something like chips at a time when ingredient branding was unheard of. But 10
or 20 years later, their whole identity was wrapped up in that little ‘Intel inside’
logo. So the tech titan turned to a new marketing strategy, called “Sponsors of
Tomorrow”, to change those perceptions. ‘Sponsors of Tomorrow’ is more than a
tagline; it is clearly the DNA of Intel. It highlights intel’s “amazing” talent and their
“future-looking” abilities, while showing consumers what Intel can do for them.
1) Discuss how Intel could be successful in ingredient branding. 5
2) What do you think are the major sources of brand equity for Intel ? 5
3) Despite of success in ‘Intel inside’ campaign, what is the new strategy adopted
by Intel and why ? 4
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*SLRA22* SLR-A – 22
Seat
No.
1. Case Study. 14
Mr. Amar, B.Tech. is working in one of the top MNC on reputed post, earning
amounting Rs. 60,000/- per month. Still he is single and shouldering responsibilities
of his widow mother, one brother studying in Engineering (passed in second
class) and one sister completed her graduation and not thoroughly interested in
further education as well as doing job. He own his house and living happily with
his family. He is single earner and holding lot of responsibilities on his shoulder
like marriage of his sister and education of his brother and his own settlement.
Help Mr. Ram for safe and secure retirement life.
1) Analyse the above case.
2) Identify problem in the case.
3) Suggest alternative solutions.
4) Identify best alternative.
5. Define mutual fund in detail. Write history of mutual fund and structure. Explain
the concept of SIP, STP, SWP and NAV. 14
6. Explain the role of various regulator working in India like SEBI, RBI and IRDA
with its establishment, structure and functions. 14
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*SLR-A-23* SLR-A – 23
Seat
No.
1. Study the following case carefully and answer the questions given at the end.
CASA Co. was named the first ever ERP implementer in the Canadian Industry
when it transformed one of its MIS 4 projects into an ORACAL ERP implementation
in a large sized steel manufacturer in Canada. Although having proficiency in IT
as their core competence CASA Co. has so far used its skill in developing
several solutions for E-commerce and E-government, hence standing among the
leading transaction and infrastructure solution provider in both sectors. An
interview with a system analysis expert in purchasing system resulted in the
following practicalities.
First and foremost, companies are interested in adopting IT based purchasing
management systems in order to ;
• Have their purchasing cycle and activities organized;
• Omit manual communications, all redundant work, and their inevitable errors ;
• Ensure about the effectiveness of company guidelines on all purchases;
• Find purchasing bottleneck;
• Obtain a comprehensive database of supplier, and suitable tools to evaluate
them;
• Increase the purchasing visibility for managers; enhance the collaboration
between purchasing and other departments;
• Unify the documentation; and
• Reducing total purchasing costs.
P.T.O.
SLR-A – 23 -2- *SLR-A-23*
On the negative side, there are always problems and hardships with implementation
such a system. Among all the tendency for keeping business data private, rather
than sharing it ; fear from being monitored amongst operational levels; natural
resistance to change; lack of knowledge about the customers; suppliers resistance
to change; and human factors related to strict obedience of the IT based purchasing
systems working methods.
a) Analyze the case 5
b) Identify the problem 2
c) Find out alternative solutions 5
d) Give the best solution. 2
5. Define Purchase Management. What are the major factors affecting accuracy of
forecasting ? 14
7. What is meant by Store layout ? Discuss the factors considered while planning
layout of stores. 14
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*SLRA24* SLR-A – 24
Seat
No.
Unexpectedly one day Arvind was shifted to Unit – 2 where he was posted in
purchasing. Arvind took it as a challenge especially he did a lot of work in
purchasing function in respect of introducing new purchase system, vendor
development. Being honest himself, Arvind ensured that nobody else made money
through questionable means. After two years in purchasing, Arvind was
surprisingly shifted to stores. It was difficult for Arvind accept from finance to
purchasing to stores.
He was unable to control his anger and burst out before unit head. Arvind put in
his papers too. The unit head was shocked at this development but did nothing to
P.T.O.
SLR-A – 24 *SLRA24*
support Arvind. He forwarded the papers to the V.P. Finance, Unit – I. The V.P.
Finance called in Arvind, heard him for a couple of hours, advised him not to lose
heart, assured him that his interests would be taken care of and requested him to
resume duties in purchasing in Unit – 2. Arvind was also assured that no action
would be taken on papers he had put in.
After six months when the list of promotes was announced and to his
disappointment, Arvind found that his name was missing. Angered, Arvind met
the unit head who calmly told Arvind that he could collect his dues and pack off
to his house for good. It was great disloyalty for Arvind.
1) Analyse the case 5
2) Identify the problem 2
3) Alternative solutions 5
4) Best solution. 2
2. Write short note on (any two) : 14
1) Job design and approaches
2) Competency mapping
3) Selection instruments
3. Write short notes on (any two) : 14
1) Merit based promotions
2) Cross cultural training
3) Employee market segmentation.
4. Write short notes on (any two) : 14
1) Economic value added
2) ESOP’s
3) Elements in redesigning work system.
6. “The HR environment is changing and so is the role of HRM to adopt the changing
trends”. Comment your opinion by discussing environmental factors of HRM. 14
1. Case Study : 14
Papaya has been identified as a crop with the potential to be very profitable for
smallholder and commercial farmers in Solapur District. However, small farmers
have been facing several constraints in this chain : highly restricted quarantine
regulations/requirements, food safety and quality requirements, expensive inputs,
small dispersed land holdings with difficult access to the road network, competition
from larger countries, and poor communication and information sharing among
value chain actors. Nature’s Care Cooperative (India) Ltd. (NCCL) was formed
in 1995 to undertake mandatory quarantine treatment on behalf of Indian fruit
export industry. The company has over 120 shareholders, vast majority of the
shareholders are small farmers who, without the services provided by NCCL,
would not have access to export markets.
A domestic market for the red papaya has emerged that works through sales
channels such as hotels, restaurants, market vendors and supermarkets. NCCL
managed to mobilize stakeholders along the value chain, including input suppliers,
growers (11 larger papaya farmers and 100 small farmers), transport agents,
and exporters (4 major export companies). In addition, a number of domestic
buyers compete with exporters for the produce.
There is no government interference in the operations of the business. The role
of Government has been confined to the initial provision of capital and in the
P.T.O.
SLR-A – 25 -2- *SLR-A-25*
A
carrying out of core quarantine functions. Since NWC has meanwhile, attracted
donor funding and retained Government support, different project initiatives are
now being coordinated by a group of stakeholder representatives, who meet
regularly.
1) Analyse the case. 5
2) Identify the problem 2
3) Explain causes and consequences. 5
4) Explain the alternatives from agricultural point of view. 2
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*SLRA26* SLR-A 26
S e a t
N o .
Kirsch and her management staff have several lively discussions before coming
up with a plan for the growth of Travel Wise. Then she gathers the entire staff
together to discuss the new goals and plans. She solicits ideas from them, and
later incorporates those that appear to be viable. Ultimately, Travel Wise has a
strategy for its next level of growth. Kirsch is excited but nervous, knowing that
her employees are counting on the firms success. But she knows that they will
work around the clock if necessary to make Travel Wise the brand that travellers
turn to for more than just accessories-now it will be clothing, guidebooks and
online support. In the next few years, Travel Wise will be taking travel to even
greater heights.
a) Analyze the case study
b) Identify the problem
c) Generate possible alternatives
d) Choose the best alternatives.
7. Reasons for growing dominance of MNCs. Discuss the role of MNCs in India. 14
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*SLRA27* SLR-A – 27
Seat
No.
1. Analyse the following case, identify the problem, and provide alternate and best
solution for the same : 14
Unique Traders are in the business of the buying and selling a wide range of
electronic components. Unique traders having a computerized billing system.
For each component, a standard selling price is stored in a table. Every time the
sale takes place across the counter, an invoice is generated on a printer connected
to the PC on the counter. The software picks up the price for the item from the
master table stored in the database.
However, at times, the sales person at the counter has to make an on-the-spot
decision to offer a discount to the customer to the customer. There are various
reasons due to which such a discount is to be offered. The software allows the
sales person at the counter to visit the “price per unit” field in the screen and
overwrite the price that is picked up from the master table in the database. Thus,
the sales person at the counter can override the price per unit stored in the
database and make an invoice at a special price.
The invoices generated thought the system are checked by the auditors. There
is generally a time gap of few weeks between the date of the invoice and the date
on which they are audited. But, at the time of auditing, the auditors were asking
the reason for special prices and the authentication of the person who gave the
discount. But the person seating at the counter find it difficult to remember details.
Sales person as well as auditors spend considerable time in resolving such
cases. Many times, auditors used to take objections and need manager’s time to
resolve the issue.
P.T.O.
SLR-A – 27 *SLRA27*
As a solution to this ongoing hassle, the auditor suggested that whenever such
special discount are offered, the salesperson should fill out a form noting the
details and obtain an approval from the manager before preparing invoice.
The salespersons find it difficult as filing a form and getting approval will involve
time and what if the manager is not in his seat ?
5. Explain in detail the Accounting Information System and the flow of data in the
Accounting Information System along with input elements and output reports
expected. 14
7. What is Database Management System (DBMS) ? Which role does DBMS play
in information systems ? 14
_____________
*SLR-A-28* SLR-A – 28
Seat
No.
1. Case study :
Vikram was a sales supervisor with a stationery company with around a twelve
salesmen reporting to him. He was fond of good things in life and had a good
lifestyle. Vikram had been appointed a supervisor on the strength of his seniority.
He lacked the other qualities of a supervisory position. When he was a salesman,
he obtained results by hook or crook. As a supervisor, he treated his subordinates
as his pet (obey his orders). He wanted food, wine at the cost of his subordinates.
His selling efforts was minimal. He wanted his subordinates to pay the bills of his
journeys. He wanted them to provide him a pack of cigarettes every now and
then.
Such behavior of Govind had its negative effect on his subordinates. Some left
the job. A few who continued to work where working with a feeling of anger and
displeasure. All this affected sales very badly.
Govind was replaced by a new supervisor. But what went wrong because of
Govind would not be so easy to cure.
1) Analyse the case 5
2) Identify the problem 2
3) Alternative solution 5
4) Best solution. 2
5. Define sales management. What is its nature ? Explain the role of sales
management in Marketing. 14
6. What is a sale force ? What are its objectives ? Explain in detail motivation to
sales force. 14
_____________________
*SLRA29* SLR-A 29
S e a t
N o .
Instructions : 1) Q. 1 is compulsory.
2) Attempt any two questions from Q.2 to Q.4.
3) Attempt any two questions from Q.5 to Q.7.
4) All questions carry equal marks.
1. Case study. 14
The following summarized balance sheet of S and S Co. Ltd.
Balance Sheet
Liabilities 2012 2013 Assets 2012 2013
Sundry creditors 79,000 82,270 Cash at bank 5,000 5,400
Bills payable 67,560 23,050 Sundry debtors 1,74,980 1,46,720
Bank overdraft 1,19020 0 Stock 2,22,080 1,94,740
Provision for taxation 80,000 100,000 Land and Building 2,97,000 2,88,500
Reserves 100,000 100,000 Plant and machinery 2,25,900 2,32,400
Profit and Loss A/c 79,380 82,440 Goodwill 0 40,000
Share capital 4,00,000 5,20,000
9,24,960 9,07,760 9,24,960 9,07,760
Additional Information :
a) During the year 2013, an interim dividend of Rs. 52000 was paid.
b) The assets of another company were purchased for Rs. 1,20,000 payable in
fully paid shares of the company. The assets consisted of stock Rs. 44,000,
machinery Rs. 36,000 and goodwill Rs. 40,000.
c) Purchase of plant for cash Rs. 11,200 was made in 2013.
d) Income tax paid during 2013 Rs. 50,000.
e) The net profit for the year 2013 before tax was Rs. 125,060.
Prepare the fund flow statement and statement showing changes in working
capital.
P.T.O.
SLR-A 29 -2- *SLRA29*
2. Write short notes on (any two) : 14
a) EBIT-EPS Analysis
b) Vendor Management
c) Lease financing V/s hire purchase financing.
3. Attempt any two : 14
a) Cost of equity and cost of debt
b) Innovative Financial Engineering
c) The chief executive of a company thinks that shareholders always look for
the earnings per share. Therefore, he considers maximization of the earnings
per share as his companys objective. His companys current net profits are
Rs. 80 lakh and EPS is Rs. 4. The current market price is Rs. 42. He wants to
buy another firm which has a current income of Rs. 15.75 lakh, EPS of Rs.
10.50 and the market price per share of Rs. 85.
i) What is the maximum exchange ratio which the chief executive should
offer so that he could keep EPS at the current level ?
ii) If the chief executive borrows funds at 15 percent rate of interest and
buys-out another company by paying cash, how much should he offer to
maintain his EPS ? Assume a tax rate to 52 percent.
4. Attempt any two : 14
a) Market value added approach
b) Types of employees and compensation strategy
c) A company has been following capital structure :
C a p i t a l S t r u c t u r e B o o k V a l u e ( R s ) A f t e r T a x c o s t ( i n p e r c e n t )
E q u i t y c a p i t a l 8 , 5 0 , 0 0 0 1 5
R e t a i n e d e a r n i n g s 2 , 2 5 , 0 0 0 1 0
P r e f e r e n c e c a p i t a l 1 , 5 0 , 0 0 0 1 8
D e b e n t u r e 1 0 , 0 0 , 0 0 0 0 6
2 2 , 2 5 , 0 0 0
From the above information, you are required to find out the weighted average cost of
capital of a company.
*SLRA29* -3- SLR-A 29
5. What is corporate structuring ? Explain the legal and procedural aspects of
merger. 14
6. What do you mean by SFM ? Discuss how 9S model of SFM helps to manage
business financially. 14
_____________________
*SLRA3* SLR-A – 3
Seat
No.
Instructions : 1) Q. 1 is compulsory.
2) Attempt any two questions from Q. 2 to Q. 4.
3) Attempt any two questions from Q. 5 to Q. 7.
4) Figures to the right indicate full marks.
1. Find the Total Cost, Average fixed cost, Average Total Cost and Marginal Cost
from the following table : 14
Total Total
Total Total Average Average Marginal
Fixed Variable
Output Cost Fixed cost Total Cost cost
Cost Cost
1 300 300 – – – –
2 300 400 – – – –
3 300 450 – – – –
4 300 500 – – – –
5 300 600 – – – –
6 300 720 – – – –
P.T.O.
SLR-A – 3 *SLRA3*
_______________
*SLRA30* SLR-A – 30
Seat
No.
1. XYZ LTD. producing about 1,000 products ranging from household goods to
personal care, has five of its warehouses situated in the four zones of India that
receive products from all the production plants on a regular basis in container
and by road transport. The company has more than 50 plants situated in various
regions in India. The warehouses are responsible for taking care of stocks, order
placement for next arrivals, loading and unloading, protective storage, stock
recording, a part from order processing and transshipment of goods to C and F
agents of respective zone whose numbers come around 150 per warehouse.
After receiving goods from various plants, these warehousing are first entered
into the personal computer for inventory recording purpose, respective storage
spaces are assigned after taking into considerations the quantity to be stored,
physical dimension, characteristics of items, frequency of flow and availability of
space. The racking, which are used for storage of goods, is back-to-back in
pallet blocks which are 5 storied and in one block there are about 350-400
back-to-back racks.
In certain areas for selected heavy weight and bulky items, 50 selectors drive
forklift trucks and in the remaining areas as many as 350 selectors pick the
goods manually and use hand trolley. Selectors are normally less educated and
highly experienced, who have well defined areas of selection.
Because of the above setup there has been under-utilization of space, traffic
congestion in aisles, wrong assortment, difficult to track goods, difficult to fill
one single order as it contains a variety of items, etc. Also a trucker is required
P.T.O.
SLR-A – 30 *SLRA30*
to collect items from different places of the warehouse to make up the order.
Almost they have to wait for a full load. The driver then has to collect challan and
other required papers. Normally this entire process took seven to ten days subject
to availability of goods in the stock. In case of stock out items, it goes anywhere
in between 15 to 30 days. That is why replenishment cycle time for nearby C and
F agents is about 15 days and for others, it comes around 3 weeks.
a) Analyze the case. 5
b) Identify the problem. 2
c) Find out alternative solutions. 5
d) Give the best solution. 2
_____________________
*SLRA31* SLR-A 31
S e a t
N o .
1. Case study : 14
ABCD one of the major accounting firms provides accounting, auditing and tax
service. Majority of its employees are Charted Accountants. The company has
ambitious plans for expansion in view of boom in consultancy industry consequent
upon globalisaiton. Companys policy is promoting within and therefore, most of
its senior level employees are promoted from entry-level accountants. In the
view of its promotion policy, the company invest heavily on training of employees
in the form of development of in-house educational and training facilities. Majority
of training investment of the company is on technical and procedural training for
entry-level accountants in the areas of accounting, finance, tax auditing, project
report and report writing. Most of its employees receive training at frequent
intervals in the companys training colleges. ABCD has problems in attracting
dynamic and energetic young graduates. This situation sometimes discourages
clients to continue with ABCD. This situation is due to the fast-in, fast-out style
of bit time consulting. Employees are also lagging in interpersonal skills.
The training colleges of the company therefore suggested to provide training in
interpersonal skills. But the line managers point out that the company has
conducted training in client and customer relations, just two year back. They
P.T.O.
SLR-A 31 *SLRA31*
added that there is no improvement in customer relations and the return on
money spent on training cant be justified. The senior managers of the company
feel that investment in training is unnecessary as some of the trained employees
join other organisations. However most of managers feel that investment in training
is essential, but the dilemma is that which part of the skill should receive more
attention and investment.
a) Analyse the case
b) Identify the problem
c) Suggest alternative solution
d) Best solution for the case.
5. Define training evaluation and explain any two modules of training evaluation. 14
_____________________
*SLRA32* SLR-A – 32
Seat
No.
1. Case study : 14
So far contract farming exists only in certain pockets of India. Some examples
are tomatoes, mustard, potatoes in Punjab, wheat in Madhya Pradesh, milk in
Maharashtra, Maize horticulture and floriculture and gherkin (a small variety of
cucumber).
Jay Kisan Pvt. Ltd. signed a contract with small farmers in Atamkur (Andhra
Pradesh) and provided them with the required inputs and technical advice for
cultivating lettuce. The same farmer then became a supplier of lettuce to five
major hotel chains in the country, which previously used to import lettuce. Realising
the potential of lettuce and its profitability, other farmers too entered the race and
soon 300 farmers in Atamkur were growing lettuce.
Sometimes, companies face problems in enforcing contracts. When the open
market price is significantly higher than the contract price, farmers may default
on the contract and try to sell it in the market. It is interesting to note that, quite
often the contacts themselves are only verbal commitments, with no written
proof. Companies say that, taking the legal route in case of a default by farmer is
quite cumbersome and so they find it easier to enforce the contracts through
more informal ways, usually the companies simply boycott the defaulting farmers
or even the entire group.
However, not everybody thinks contract farming is a good idea. Some rural
economists say farmers could be exploited by the corporate.
P.T.O.
SLR-A – 32 *SLRA32*
_____________
*SLRA33* SLR-A – 33
Seat
No.
1. Analyze the following case, identify the problem, generate possible alternatives
and choose the best alternative : 14
Basmati is aromatic rice grown in Northern India and Pakistan. In September
1997, Rice Tec, a small food technology company based in Texas, United States,
was granted a patent by the US patent office to call an aromatic rice variety
developed in USA Basmati. India challenged the case, arguing that Basmati is
unique aromatic rice grown in Northern India, and not a name Rice Tec could
claim. In fact only inventions can be patented. Consequently, the US patent
office accepted India’s basic position, and Rice Tec had a drop 15 of the 20
claims that it had made. Of the remaining claims, Rice Tec managed to evolve
three new varieties of rice for which it got a patent from United States Patent and
Trademarks Office (USPTO), as India had not objected to these. The ruling has
not handed over Rice Tec the Basmati brand. Rather, it provides it a patent for
superior three strains’ of Basmati developed by cross-breeding a Pakistani basmati
with a semi-dwarf American variety.
According to the WTO Agreement, geographical indications like basmati can be
legally protected and their misuse can be thus prevented. The unfortunate thing
is that Government of India has not taken timely steps for protected over
geographical indications and biodiversity. Although a Geographical indication of
Goods Bill was introduced in Indian Parliament in 1999, even at the end of 2001,
it had not become an Act. Can any of the following, viz., turmeric, neem and the
name Basmati be patented ? Substantiate your answer. Evaluate the role played
by Government of India in prevented the misuse of the name basmati.
P.T.O.
SLR-A – 33 *SLRA33*
5. State the concept export and import. Explain current trends of Indian Import
and Export in global trade. 14
6. What are export payment terms ? Explain in detail main features of payment
terms. 14
7. What is the term EXIM ? Explain the nature and characteristics feature of EXIM
documents. 14
_____________________
*SLRA34* SLR-A – 34
Seat
No.
1. Read the following case, analyse it, state whether it is a success story or a
failure story of ERP implementation. Justify your answer by giving at least five
reasons with proper narrations. 14
MM Foods, a 50-year-old food and beverage manufacturer and distributor, has
grown from a supplier to restaurants into a much larger customer base that now
includes Trader Joe’s, Costco, Sam’s Club and Whole Foods. The company
started with no functional ERP system, which put them at a disadvantage when it
came to managing and tracking their business.
In a world full of ERP implementation failures, MM Foods conducted a very
successful phased implementation of AGE ERP X3. The ERP now enables MM
Foods to run its business more profitably by increasing data accuracy with more
visibility into product and production data. This is especially critical as they
transform from a food distributor to a manufacturer. According to Michael
Siegmund, President of MM Foods, previously they had no capability for
manufacturing or manufacturing resource planning prior to the implementation.
Siegmund was already familiar with AGE software products and their approach
from his previous work as a food and manufacturing consultant. He used this
experience to his advantage in establishing the foundation for a successful ERP
implementation.
P.T.O.
SLR-A – 34 -2- *SLRA34*
_______________
*SLRA35* SLR-A – 35
Seat
No.
P.T.O.
SLR-A – 35 *SLRA35*
––––––––––––––––––––
*SLRA36* SLR-A – 36
Seat
No.
P.T.O.
SLR-A – 37 *SLRA37*
5. Give the characteristics of services marketing and explain how there is growing
need and importance of services in India. 14
7. Explain in detail the five gaps highlighted in the service quality model developed
by PZB. 14
_____________________
*SLRA39* SLR-A 39
S e a t
N o .
P.T.O.
SLR-A 39 *SLRA39*
an investment plan for the family by considering age and future requirements
(make necessary assumption). 14
7. What do you mean by investment ? Explain any five non marketable investment
avenues with its importance. 14
_____________________
*SLRA4* SLR-A – 4
Seat
No.
Within a span of two years, based on his good performance appraisal, Arun was
promoted to the position of Assistant Marketing Manager. Under his new
assignment, Arun had 8 sales representatives reporting to him and also to ensure
that the sales target of his shop was met. Arun took to his new promoted
assignments with the same zeal and enthusiasm. Arun now set the targets to be
met by his team members for the first month and communicated the same,
clearly indicating that all the team members have to meet the target without fail.
P.T.O.
SLR-A – 4 -2- *SLRA4*
The eight team members (sales representatives) felt that the targets set was too
ambitious but declined to comment on it directly. After the meeting, during the
informal chat all the team members discussed the matter amongst themselves
and then dispersed.
Arun called for a review meeting at the end of a fortnight to take stock of the
situation and was shocked and disappointed to learn that all the representatives
were well behind the target set for them. Arun could not control his disappointment
and openly and bluntly condemned them for not reaching the target. He once
again reiterated that the expected all his team members to achieve their targets
by the end of the month. After the meeting, the team members amongst themselves
admitted that they found Arun to be a difficult person with an unapproachable
mind set. However, they also decided to give in their best efforts to achieve the
targets assigned to them. But even with their sustained efforts they could achieve
only 70 per cent of the target set by Aurn, by the end of the month.
At the end of the month, when Arun reviewed the sales statements of his team,
he was disappointed though slightly happy with the marginal improved efforts of
his team. However, in the meeting instead of praising and encouraging his team’s
efforts, Arun communicated his displeasure and once again was emphatic and
told his team that lack of commitment from them was stopping them from attaining
their target, so they had to try hard once again. This outburst was not liked by his
team. And in the next month end briefing, Arun was greeted with well below the
target set. Arun now openly rebuked his sales representatives team, for their,
slow performance and refused to accept that he had set too high targets for his
team. Ultimately the team members met their Marketing Manager Madhuraj and
conveyed everything to him. Madhuraj was shocked but promised to talk to
Arun.
*SLRA4* -3- SLR-A – 4
5. Define Group. Explain its different types with the stages of group development. 14
6. Define Organisational Change. Explain why do people resist change and how to
manage resistance to change. 14
_____________________
*SLRA40* SLR-A – 40
Seat
No.
P.T.O.
SLR-A – 40 *SLRA40*
5. Discuss the role of leadership for successful quality management. How does
leadership relate to strategic planning ? 14
_____________________
*SLRA41* SLR-A – 41
Seat
No.
P.T.O.
SLR-A – 41 *SLRA41*
5. Incentives are attractive weapon for employer to attract and satisfy the employees.
What are the various employee incentives and recognition program implemented
in the various organisations ? 14
6. Define fringe benefits with its objectives. Explain its various types of fringe
benefits. 14
7. Define personnel administration. Write its nature, objective and principles which
are followed in the organisation. 14
_____________________
*SLR-A-42* SLR-A – 42
Seat
No.
_____________________
*SLRA43* SLR-A – 43
Seat
No.
_____________________
*SLRA44* SLR-A – 44
Seat
No.
P.T.O.
SLR-A – 44 *SLRA44*
7. What is advertisement ? Explain in detail the 5 M’s of advertising with the problems
in communication. 14
_______________
*SLRA45* SLR-A – 45
Seat
No.
P.T.O.
SLR-A – 45 -2- *SLRA45*
6. The price index increased from 120 to 135 in U.S.A. over two years. For the
same period the price index in Japan showed an increase from 110 to 115. If
today’s spot rate is US $ = 125 ¥, what might be the spot rate after two years ? 14
_____________________
*SLRA46* SLR-A – 46
Seat
No.
P.T.O.
SLR-A – 46 -2- *SLRA46*
6. Discuss the importance of JIT system in manufacturing firms. State the relevance
of JIT to TQM. 14
_____________________
*SLRA47* SLR-A – 47
Seat
No.
P.T.O.
SLR-A – 47 *SLRA47*
5. Define Human resource Audit. What are its objectives, benefits and methods ? 14
_____________________
*SLRA48* SLR-A – 48
Seat
No.
_____________________
*SLRA49* SLR-A – 49
Seat
No.
P.T.O.
SLR-A – 49 -2- *SLRA49*
_____________________
*SLR-A-5* SLR-A – 5
Seat
No.
1. The daily wages paid to workers in two factories E and F are given below : 14
Daily wages
120 – 130 130 – 140 140 – 150 150 – 160 160 – 170 170 – 180 180 – 190
(Rs.)
No. of workers
15 30 44 60 30 14 7
factory E
No. of workers
25 40 60 35 12 15 5
factory F
2. Attempt any 2 : 14
a) Attributes A and B represent regular morning walk activity and being physically
fit. Compute Yule’s coefficient of association between attributes A and B given
N = 100, (A) = 60, (B) =50, and (AB) =35. Interpret the result.
P.T.O.
SLR-A – 5 -2- *SLR-A-5*
Marks 0 – 10 10 – 20 20 – 30 30 – 40 40 – 50 50 – 60 60 – 70 70 – 80
N o. of
5 8 7 12 28 20 10 10
stu dents
c) Write down the Binomial, Poisson and normal probability functions. Narrate
relation between binomial and normal distribution.
3. Attempt any 2 : 14
a) A problem in mathematics is given to 4 students A, B, C and D whose chances
of solving it are 50%, 60%, and 70% and 80% respectively. If the students
attempt to solve the problem independently what is the probability that the
problem may be solved.
b) Calculate Spearman’s Rank Correlation Coefficient for scores in Psychological
Tests (X) and arithmetical ability (Y) of 10 children.
X 12 18 32 18 25 24 25 40 38 22
Y 16 15 28 16 24 22 28 36 34 19
4. Attempt any 2 : 14
a) What is correlation analysis ? Explain the difference between regression and
correlation.
b) Calculate Karl Pearson’s coefficient of Correlation from the following data :
X 80 60 51 69 58 62 64 72 56 58
Y 45 71 60 57 62 58 48 50 62 69
*SLR-A-5* -3- SLR-A – 5
c) For the following data find the missing frequency (L) if arithmetic mean is 953
Class
0 – 500 500 – 1000 1000 – 1500 1500 – 2000 2000 – 2500 2500 – 3000
Interval
Frequency 90 L 100 80 70 10
5. The following data shows experience in years of machine operators and their
performance rating as given by number of parts turned out per 100 pieces. 14
Experience in Years 16 12 18 4 3 10 5 12
Performance Rating 87 88 89 68 78 80 75 83
6. The mean and standard deviation of sample A are 54.4 and 8 respectively whereas
the mean and standard deviation of sample B are 50.3 and 7 respectively. The
size of sample A is 50 and of sample B is 100. Find the combined mean and
standard deviation of the two samples. 14
7. For the given data, draw a less than and more than ogive curve on the same
graph and from these find the value of median income.
Monthly Income
10 – 20 20 – 30 30 – 40 40 – 50 50 – 60 60 – 70 70 – 80
(Rs. '000)
No. of families 60 170 200 60 50 40 20
_______________
*SLRA50* SLR-A 50
S e a t
N o .
Instructions : 1) Q. 1 is compulsory.
2) Solve any two questions from Q. 2, Q. 3 and Q. 4.
3) Attempt any two questions from Q, 5, Q. 6 and Q. 7.
1. Case study :
While still in junior college at Sydenham in Mumbai, Vijay Nair took the first
steps in professional career with Procter and Gamble, one of the worlds largest
consumer companies. He was part of a focus group that was reviewing their
teen-focused portal and ended up working for the website. He was charged with
building a nation-wide team constituting teenagers like myself and managing the
website and this served as a fantastic springboard to learn the ropes of being an
entrepreneur at the age of 16. After two years of working with X company, a
chance encounter with Sandeep Mittal, the founder of a website called gigpad.com
aimed at bringing together musicians across the country, led to joining gigpad. It
seemed far more challenging and helped cultivate taste in music at the same
time. The work at gig pad involved reviewing shows and keeping the site alive,
but he soon discovered that my true calling was organizing concerts and working
backstage with the bands, rather than a desk job writing about them. When Vijay
Nair was 18, a band called Acquired Funk Syndrome approached to manage
their band and it sounded like an interesting project. Since there were not many
independent managers operating in India, it was uncharted territory for him, and
indeed for the people he worked with. They tasted success within the first few
months, managing to perform more shows than any other bands in the country.
He soon started managing more bands including Zero, PDV and Pentagram,
among the biggest rock bands in the country, and booked over a 100 shows in
the first year. This phase exposed me to difficulties and gaps in the existing
music industry in India and he started focusing on other core areas of this industry,
such as distribution, production, organizing concerts etc. The big picture was
always to have a complete Do-It-Yourself (DIY) setup. In late 2002, he founded
P.T.O.
SLR-A 50 -2- *SLRA50*
company Only Much Louder (OML), an entity that would manage bands and
produce music albums to begin with. He tied up with Sony, one of the worlds
biggest media and entertainment corporations. Soon, OML-managed artists were
being distributed at all major music stores across India. There were other
significant milestones along the way. Pentagram, OMLs marquee band earned
the distinction of being the first band to play at Estonias Sun Dance Music
Festival and later at the prestigious Glastonbury Music Festival in England. In
2005 OML became a private limited company. It started Counter Culture records,
which became the record label arm of OML. In 2007, while travelling with bands
across the country, we developed healthy relationships with colleges where bands
performed. Over the last two years, OML established a strong network with
these campuses, including the leading engineering colleges such as the IITs and
elite business schools such as the IIMs, as our artists were invited to perform
time and again. At OML, all aim to work with these independent artists and help
them be more successful while maintaining their independent streak. Once bands
and artists are part of the OML family, they are recorded and distributed, their
videos are produced and they perform live shows across the country. They
serve as a one-of-its-kind, end-to-end Artist Management Company, helping our
artists integrate all aspects of their careers. The next step for OML is to take
Indian bands international as many of them have the talent but not enough exposure
to launch internationally. At OML, they are looking at new media with a fresh
perspective and exploring new options such as online distribution and use of
other digital formats. They believe the future lies in finding a balance between
online and off-line promotions and both will co-exist. It intends to propel OML into
one of Indias most well known and independent music firms, operating across a
gamut of business successfully. Vijay Nair has been extremely lucky that his
passion for music is aligned with the work he does at OML. The freedom to paint
his own canvas as an entrepreneur is exhilarating and the challenges he face
every day make his life far richer than it would have been if I had followed the
well-trodden path.
1) Read the case and analyse it. 4
2) Describe Vijay Nairs journey as an entrepreneur. 5
3) Write a note on OML a music firm. 5
_____________________
*SLR-A-51* SLR-A – 51
Seat
No.
Instructions : 1) Q. 1 is compulsory.
2) Solve any two questions from Q. 2, Q. 3 and Q. 4.
3) Attempt any two questions from Q. 5, Q. 6 and Q. 7.
1. Case Study :
This case study deals with an employee who exhibited a serious behavioral
problem that negatively impacted an entire team. His name was Harish, a highly
competent computer systems analyst. Whenever a technical problem arose in
programming or working with the newest software, Harish was the man who had
the answers. He was willing to help anyone at any time, even if his confidence
was sometimes resulting in arrogance. The coach, appreciated Harish for his
abilities. Harish’s problem was that he liked his female coworkers a little too
much, he occasionally made inappropriate comments. Meena, a coworker, found
working closely with Harish very uncomfortable. And there was no avoiding him,
because her job required that she be in constant contact with him. She actually
admired Harish’s skills at tackling difficult problems and squashing all those
awful job-related bugs. But even though she learned a lot about the job from
Harish, which she knew would benefit her immensely in the future ; she could not
ignore the fact that he crossed the line with his uprofessional behavior.
Fed up day, Meena approached her coach and told him all about Harish’s improper
side. She was hesitant at first, knowing that coach was a fan of Harish and his
technical expertise. She remembered his initial orientation to her about the
importance of communication between the employee and the coach. He had
advised her on day one to come to him with any problems or concerns that she
might have, and that he would do his best to help her find the solutions to remedy
any wrongs. So she told coach the whole story, not holding back the fact that
other female members of the staff didn’t appreciate these same aspects of Harish’s
P.T.O.
SLR-A – 51 -2- *SLR-A-51*
personality. She made clear that while she admired Harish’s supreme competence
in his job role, as well as his willingness to help others ; she nevertheless couldn’t
tolerate any more of his tricks.
Coach listened like a good coach should, asked questions, and promised
immediate action. True to coaching methods, he called Harish into his office the
following day. He gave great thought to what he was going to say to him and how
he was going to say it. When Harish sat down before him, coach informed him
that a serious problem had been brought to his attention. He proceeded to tell
Harish of the complaint lodged against him. He intermingled his negative feedback
– about the unacceptability of Harish’s professional behavior – with positive
feedback on his consistently solid job performance. Coach told Harish, “your
knowledge and skills is an asset to the company. You wouldn’t want to see your
future impeded by behaviour unbecoming a man of your talents.” Harish was
quite surprised at what he was told. Like so many people with such behavioral
excesses, they often don’t get it. They don’t see their antics as in any way a
problem, and they can’t understand why anybody would be offended. Coach got
his point across with the help of the sensitivity-plus approach. He allowed Harish
his ample say in response, and ultimately the two reached solutions to a positive
outcome. Harish agreed to be strictly business from that moment forward. He
also set out to apologize to all the injured parties. He told Coach that his job was
extremely important to him, and that he didn’t want to hinder, in any way, his
climbing up the organizational ladder. Meena also agreed to wipe the slate clean,
and graciously accepted Harish’s apology and promise to rectify his behavior.
This was a positive outcome to a very difficult, negative situation. Performance-
related problems are usually clearer cut than are these dicey interpersonal
situations.
Analyse the case, state the problem, and suggest alternative solutions and best
alternative. 14
_______________
*SLRA52* SLR-A – 52
Seat
No.
P.T.O.
SLR-A – 52 *SLRA52*
3. Short notes on (any 2) : 14
A) Media buying strategies
B) Attribution Theory
C) Cognitive dissonance.
B) Reference groups
C) Influence of culture on consumer behavior.
________________
*SLRA53* SLR-A 53
S e a t
N o .
1 6 , 0 0 , 0 0 0 1 . 2 2
2 3 , 0 0 , 0 0 0 0 . 9 5
3 7 , 0 0 , 0 0 0 1 . 2 0
4 9 , 0 0 , 0 0 0 1 . 1 8
5 4 , 0 0 , 0 0 0 1 . 2 0
6 8 , 0 0 , 0 0 0 1 . 0 5
Y e a r C F A T ( R s . )
1 2 0 , 0 0 , 0 0 0
2 2 4 , 0 0 , 0 0 0
3 3 0 , 0 0 , 0 0 0
4 1 6 , 0 0 , 0 0 0
5 1 0 , 0 0 , 0 0 0
The rate of inflation during the period is expected to be 8 percent and the
projects cost of capital in real terms would be 10 percent. Should the machine
be purchased if it costs Rs. 50 lakhs ? 7
P.T.O.
SLR-A 53 -2- *SLRA53*
Particulars Rs.
Overheads 19.5
Profit 09.75
Selling price 65.00
*SLRA53* -3- SLR-A 53
Average raw material in stock : one month ; average materails in process : half a
month. Credit allowed by suppliers : one month ; credit allowed to debtors : two
months. Time lag in payment of wages : One month. Overheads : one month.
One fourth of sales are on cash basis. Cash balance is expected to be Rs. 60,000/-
Finished goods : one month.
You are required to prepare a statement showing the working capital needed to
finance a level of activity of 60,000 units of output. Add 10 percent to your
computed figure to allow for contingencies. You may assume that production is
carried on evenly throughout the year and wages and overheads accrue similarly.
5. ABC Ltd. has currently annual sales of Rs. 5,00,000 and an average collection
period of 30 days. The company is considering of liberalizing its credit policy. If
the collection period is extended, sales and bad debts are expected to increase
in the following way.
I n c r e a s e i n E x p e c t e d i n c r e a s e P e r c e n t o f
P r o p o s e d
c o l l e c t i o n i n a n n u a l s a l e s B a d d e b t s
c r e d i t p o l i c y
p e r i o d ( d a y s ) ( R s . ) l o s s e s
I 1 5 4 0 , 0 0 0 1 . 5
I I 3 0 4 5 , 0 0 0 1 . 7
I I I 4 5 5 5 , 0 0 0 2 . 0
I V 6 0 7 0 , 0 0 0 2 . 5
The firm sells its product for Rs. 10 per unit. Average cost at current level of
sales is 90 per cent of sales and variable cost is 80 per cent of sales. If the
current bad debts loss is 1 per cent of sales and the required return is 20 percent,
which credit policy should be pursued ? (Assume a 360 day year). State
your assumptions. 14
SLR-A 53 -4- *SLRA53*
6. Prepare the cash budget for January to June from the following information :
i) The estimated sales, expenses, etc are as follows.
(Rs. in thousands)
D e c e m b e r J a n u a r y F e b r u a r y M a r c h A p r i l M a y J u n e
S a l e s 7 0 8 0 8 0 1 0 0 1 0 0 1 2 0 1 3 0
P u r c h a s e s 2 8 3 2 3 4 4 0 4 0 5 0 5 6
W a g e s a n d
2 4 2 8 2 8 3 6 3 6 4 0 4 4
s a l a r i e s
M i s c e l l a n e o u s
1 0 1 2 1 2 1 2 1 4 1 4 1 4
e x p e n s e s
I n t e r e s t
4 - - 4 - - 4
r e c e i v e d
S a l e o f s h a r e s - - 4 0 - - - -
ii) 20 percent of the sales are on cash and the balance on credit.
iii) 1 percent of the credit sales are returned by the customers, 2 percent debts
are uncollectable; 50 percent of the debtors are collected in the month of the
sales and the rest during the next month.
iv) The time lag is payment of miscellaneous expenses and purchase is
one month. Wages and salaries are paid fortnightly with a time lag of 15 days.
v) The company keeps a minimum cash balance of Rs. 10,000. Cash in excess
of Rs. 14000 is invested in government securities in multiplies of Rs. 1000.
Shortfalls in the minimum cash balance are made good by borrowings from
the bank. Ignore interest received and paid. 14
7. Explain the term sick units. What are the causes and symptoms of sickness
in a particular unit ? 14
_____________________
*SLRA54* SLR-A 54
S e a t
N o .
1. Study the following case carefully and answer the questions given at the end :
Productivity and quality had recently taken a backseat at Lee Appliances which
led to strained Labour Union-Management relations.
Workers of late were finding novel ways to go slow on their jobs. They hid
defective parts so that management would not find them and when machines
broke down workers waited till some senior operator would come to fix it. This
had resulted in a increased revenue loss, defective products and piling inventory
which management found hard to tackle.
Faced with the possibility of the plant being shut down, management and labour
came together to find a way to keep the plant open. They agreed that the way
forward was to increase productivity without using more resources.
The improvement in productivity came not by using advanced tools but with an
emphasis on quality using the existing tools and fixtures. There was a paradigm
shift from volume of production to production of quality goods. To motivate workers
the company introduced a plan that rewarded workers by increasing their pay for
increase in productivity.
As quality improved, productivity increased and costs went down due to fewer
defective parts that had to be scrapped or reworked. Workers were quick to
understand the connection between their efforts to improve quality and productivity.
P.T.O.
SLR-A 54 *SLRA54*
There was now less defective output both at the factory and for warranty repairs.
The next important task Management had identified and was keen to control was
the cost of inventory. Management had decided to bring down this cost drastically
in the next 6 months and the same had to be communicated to the Labour union.
Questions :
i) Analyze the case 5
ii) Identify the problem 2
iii) Find out alternative solutions 5
iv) Give the best solution 2
6. Explain the various factors that affect productivity. Discuss the ways in which
productivity can be increased. 14
N o .
P.T.O.
SLR-A 55 *SLRA55*
what your people are asking for. You know the precarious finances of the
company. You better explain to them how ridiculous the demands are.
A victim of divided loyalities, he himself was unable to understand whose side he
was on. Perhaps he should resign both from the board and the union. Either
resigns from employment and seeks a job elsewhere. Or stay in and solve the
problem.
Identify the problem 2
Analyze the problem 5
Provide Alternatives 5
Best solution. 2
5. Define the term industrial dispute and explain in detail the various causes
responsible for industrial dispute. 14
6. What is collective bargaining ? What are the essential condition for success and
causes for failure of collective bargaining ? 14
7. What do you mean by labour welfare ? Explain in detail a list of welfare measures
given to employees. 14
_____________________
*SLRA56* SLR-A – 56
Seat
No.
P.T.O.
SLR-A – 56 *SLRA56*
about farming techniques is responsible for low output. Farmers are unaware
about efficient farming technique, proper use of fertilizer, good quality of seeds
and pesticide. Thus we can say that due to unawareness our production is low.
For the removal of this problem Government should launch programmers and try
to literate the farmer and give them awareness about the professional and efficient
techniques of production. On average unawareness, poor education, lack of capital
and uncertain condition are responsible for low productivity. Low productivity will
affect the farmers’ socio-life.
a) Analyse the case. 3
b) Describe the major factors for low productivity. 3
c) Land tenure is really a cause of low productivity ? Give your opinion. 4
d) How the low productivity will affect the farmers’ socio-life. 4
6. Describe in detail co-operative farming and corporate farming with its advantages
and disadvantages. 14
_____________________
*SLRA57* SLR-A – 57
Seat
No.
1. Case study : 14
Natural Trust
Balsara Hygiene Products Ltd., which had some fairly successful household
hygiene products introduced in 1978 a toothpaste, promise, with clove oil (which
has been traditionally regarded in India as an effective deterrent to tooth decay
and tooth ache) as a unique selling proposition. By 1986 Promise captured a
market share of 16 percent and became the second largest selling toothpaste
brand in India. There was, however, an erosion of its market share later because
of the fighting back of the multinationals. Hindustan Lever’s Close-Up gel appealed
to the consumers, particularly to the teens and young, very well and toppled
Promise from the second position.
Supported by the Export Import Bank of India’s Export Marketing Finance (EMF)
programme and development assistance, Balsara entered the Malaysian market
with Promise and another brand of tooth paste, Miswak.
P.T.O.
SLR-A – 57 -2- *SLRA57*
The emphasis on the clove oil ingredient of the Promise evoked good response
in Malaysia too. There was good response to Miswak also in the Muslim dominated
Malaysia. Its promotion highlighted the fact that miswak (Latin name : Salvadora
Persica) was a plant that had been used for centuries by as a tooth cleaning
twig. It had references in Koran. Quoting from Faizal-E-Miswak, it was pointed
out that prophet Mohammed used “Miswak before sleeping at night and after
awakening.” The religious appeal in the promotion was reinforced by the findings
of scientists all over the world, including Arabic ones, of the antibacterial property
of clove and its ability to prevent tooth decay and gums.
Market intelligence revealed that there was a growing preference in the advanced
countries for nature based products. Balsara tied up with Auromere Imports Inc.
(AAII), Los Angeles. An agency established by American followers of Aurobindo,
an Indian philosopher saint. Eight months of intensive R and D enabled Balsara
to develop a tooth paste containing 24 herbal ingredients that would satisfy her
required parameters. Auromere was voted as the No. 1 toothpaste in North Eastern
USA in a US Health Magazine Survey in 1991.
b) Brand management
c) International trade product life cycle.
6. Explain the concept of international product design. Also explain the importance
of labelling, packaging, branding and support services in terms of product support
services. 14
_____________________
*SLRA58* SLR-A 58
S e a t
N o .
Instructions : a) Q. 1 is compulsory.
b) Solve any two from Q. 2, 3 and 4 and any two from Q. 5, 6 and 7.
1. Case study : 14
An Educational Institute wants to computerize its student management system.
The details are as follows :
1) Institute has departments.
2) Department conducts various full time courses.
3) Department has various teachers teaching subjects of various courses.
4) Course has subjects with unique code.
5) Student appear for an exam for which he gets result.
For the above case, draw the E-R diagram.
P.T.O.
SLR-A 58 *SLRA58*
_____________________
*SLRA59* SLR-A – 59
Seat
No.
P.T.O.
SLR-A – 59 -2- *SLRA59*
Questions :
1) Analyse the case.
2) Find the problem.
3) Give alternative solution.
4) Find the best solution.
6. Explain the importance of retail formats and write different kinds of formats. 14
7. What are the challenges and opportunities for retailing in India through foreign
direct investment in retail in India. 14
_____________________
*SLR-A-6* SLR-A – 6
Seat
No.
1. Case study :
Assume you are the Administrative Manager of Soniya Technologies in Pune. You
have just received a call from your boss complaining about the employees who are
shopping on-line. This could affect work in the organization. The Management is
considering monitoring software and blocking of websites.
Questions :
4) What solution would you suggest to solve the problem in an amicable manner ? 4
a) Explain the term ‘feedback’. What are the ways of improving feedback ?
b) Differentiate between hearing and listening. What are the barriers to listening ?
P.T.O.
SLR-A – 6 -2- *SLR-A-6*
7. There have been constant complaints from your customers about late delivery of
goods and shortage in the goods supplied. As Head of the dispatch section you
have been asked to look into the matter and report with recommendation. Draft
your report. 14
_____________________
*SLR-A-60* SLR-A – 60
Seat
No.
5. Mr. Ashwini is currently holding five securities is her portfolio. The details of her
portfolio are given below : 14
Securities Return(%) Probability
1 25 .7
2 30 .5
3 35 .6
4 40 .4
5 45 .3
You are required to :
a) Check the performance of present portfolio on the basis of expected return
and standard deviation.
b) Give the analysis of your answer.
c) Suggest the investor about continuation of the securities.
6. What is portfolio management ? Comment on the formulation of portfolio strategy,
selection of asset mix and performance evaluation. 14
7. Explain credit rating concept. Briefly discuss about various credit rating agencies
in India. 14
_____________________
*SLRA61* SLR-A – 61
Seat
No.
1. Study the following case carefully and answer the questions given at the end.
Wilson was recently promoted as General Manager of status Hotels, Melbourne.
He had previously been an Assistant General Manager at the corporations’s
hotel at Sydney. The Sydney hotel was a team based organization. Wilson had
seen the benefits to team work which had led the hotel to the top of the corporation
in quality of service and customer satisfaction ratings. This was the reason for
his transfer to Melbourne on promotion. The previous General Manager’s policies
at Melbourne’s hotel had created large turnover among the staff and a loss in the
market share.
To identify the reasons why employees were reluctant to be team players, Wilson
called a meeting with the hotel staff at Melbourne. Some of the reasons that the
staff put forward were : Many of the workers who were functionally illiterate
seemed to be uncomfortable with other associates, child care obligations, classes
and other family commitments made it difficult for some associates to meet
before or after shifts, several associates felt that their jobs were too demanding
to take on additional meetings which led some to disrupt the meeting to enable a
fast closure, some felt that the expectations from the team would increase and if
the team failed they would be personally held responsible.
P.T.O.
SLR-A – 61 *SLRA61*
The earlier General Manager had created a lot of cynicism among the workers
and many did not trust the management. There seemed to be a widespread
attitude of “what is in it for me” ?
After the meeting Wilson looked at this notes and thought about the task at hand.
Questions :
i) Analyze the case. 5
ii) Identify the problem. 2
iii) Find out alternative solutions. 5
iv) Give the best solution. 2
_____________________
*SLRA62* SLR-A 62
S e a t
N o .
P.T.O.
SLR-A 62 -2- *SLRA62*
Under the new, integrated system, all the retail functions-invenitability
calculations, sales and customer tracking, returns and adjustments, accounting
and profitability calculations-would be joined together and operated out of the
same data base. Further, all stores would be linked together, giving headquarters
better ongoing control of company as a whole and of store and departments in
particular.
As a result of this migration. Virtually every job in a company was changed in
some way. The jobs of the sales associates changed most : virtually every
product, customer, or financial transaction was to be done differently. While the
complexity of any task might be small, the combined weight of all the changes
resulted in major learning stresses on employees. They had to learn how to
operate the system, access it, complete all transactions through it, and make
any needed corrections directly on the point of sale terminal-all while the customer
waited across the counter.
As the kick-off date for the conversion to the new system neared, all employees
were brought in for a comprehensive four day training program. Managers and
supervisors were trained first so that they could serve as aides and coaches to
the other employees once the WIZARD was operational. Bob and Pat attended
one of the early programs together.
Bob was impressed by how much the program covered. The trainees went through
every conceivable transaction and procedure, demonstrating and explaining them.
Each participant in the class was able to practice some of the procedures on the
demo terminal. The notebook provided in the program was reasonably through,
even if it was poorly organized.
As was characteristic, Pat Dekkar approached the training gust and with
enthusiasm. Pat had never worked much with computers before, and his anxiety
about learning how to use the system was more than was offset by his motivation
to learn. Bob was particularly pleased with this matter because he was concerned
that Pats strong people orientation might not have a corresponding technical
aptitude.
It has now a more than month since the new system started up. All the associates
in the store completed the system training shortly before the conversion date
and by now, most are operating fairly well with it.
Indeed, thats what it so troubling to Bob. In spite of the training and the time on
the system, Pat just hasnt made satisfactory progress mastering it. Bob sees
*SLRA62* -3- SLR-A 62
Pats problems in various ways like the instance he has just witnessed. There
was Pat, working with one of of his sales associates, trying to complete a distinct,
but not that unusual, procedure. It was clear that the associate could actually
complete the procedure better than Pat. Pat was following the trial-and-error
process of running through different key combinations to see if any worked. The
customer was growing annoyed.
Bob thought about other instances. For example, Pat had asked Bob about how
to complete the same procedure on four different occasions in the course of ten-
day period. At times, Bob would watch Pat refer a customer to another sales
station or have the customer wait while he asked another associate to process a
complete transaction. At one point, Bob asked Pat to check manual, but Pat
could not say it didnt help him that much, and besides, he wast sure where he
had left it.
On top of it all, Bob is now sensing that Pat is becoming more frustrated and
stressed by the situation. He now thinks that Pat is trying to hide from Bob his
discomfort with the system. In a way, this is Pats method of signaling to Bob
that Pats knowledge of the new system cannot be discussed.
Bob wonders how much longer he can go without taking action. Already, there
are some grumblings from the other associates that Pat cannot be counted on to
help them with their problems. Bob has noticed how Pats unease with the process
is putting some additional burdens on the other employees, as well as the
customers. Bob knows that Pat is smart enough to learn this material, but cannot
understand why it is so difficult. Bob wants to help but also feels that Pat needs
to show some progress-and fairly soon-or else Bob may be forced to take some
actions he would rather not take.
Questions :
1) Analyse the case.
2) Find the problem.
3) Give alternative solution.
4) Find the best solution.
5. What are the various incentives given to sales people, Managers and Executives. 14
6. Explain the procedure and advantages of job evaluation. What are the various
problems to evaluation are found while evaluating jobs. 14
_____________________
*SLRA63* SLR-A – 63
Seat
No.
1. Pour milk dairies (PD) is known for its quality dairy products (like cheese, butter,
dry milk, etc.). It meets most of it need of milk – the basic ingredient for its
products – from milk cooperatives situated nearby as transportation of milk over
longer distances is not possible, given the quality of transportation facilities. PD
is satisfied with the quality of milk and the regularity of supply of these
cooperatives. However, the milk supply in the spot market lacks quality and
reliability and its prices are also volatile. PD turns to spot market for meeting any
deficit in supply or for selling any surplus supplies of milk.
Conventionally, the major producers of dairy products in the region (including
pour milk Dairies) and the major milk cooperatives sit down once every year to
negotiate the price of milk for the next year. Till now, this arrangement worked
well. Lately the milk cooperatives have started feeling that such a pricing
agreements work to their disadvantage as these do not reflect the “market –
sensitiveness” for their product. The major cooperatives are, therefore, demanding
change in the “period of agreement” from once a year to every sixty days. Since
the current projections of demand and supply of milk suggest that milk prices will
go up in near future, such a change in period of agreement cannot, obviously, be
liked by PD.
After a round of negotiations between PD and the major milk cooperatives, an
agreement is reached to change the price agreement period from annual to quarter.
1) Analyze the case. 14
2) Identify the major issues.
3) Recommend alternative solution.
4) Suggest the best solution.
P.T.O.
SLR-A – 63 *SLRA63*
6. Explain the role of performance of cottage and small scale industries in Indian
Economy. 14
_____________________
*SLRA64* SLR-A – 64
Seat
No.
1. Case study : 14
State Governance and Development
The path leading to the Crisis Korea up to well into the 1960s represented a truly
backward economy based on subsistence agriculture. Its per capita income in
1961 was $82 (in 1960 prices), which was then below those of Haiti, Ethiopia,
Peru, Honduras and Yemen and about 40% below India’s. In the immediate
post-Korean War period the country was an economic basket case. It relied on
foreign aid for sheer survival. Undisciplined capitalism during this period did
very little for development. Beginning with the military coup in 1961, the country’s
economy began to make a dramatic turnaround. In two decades the country’s
real per capita income more than tripled, placing Korea in the top third of all
middle-income countries. By 1996 Korea with its 42 million populations and per
capita income of over US $10,000 emerged as the world’s eleventh largest trading
nation. In 1992 a civilian president was elected for the first time after three
decades of authoritarian regimes. Externally, Korea began to play active roles in
global affairs by joining the World Trade Organization (WTO) and the Organization
of Economic Cooperation and Development (OECD). Behind this transition to a
modern economy has been an evolution in the complex and subtle ways that the
economy was managed by the state. Guided by the belief that a well-managed,
state-led economy would function better than one based on unfettered market
P.T.O.
SLR-A – 64 -2- *SLRA64*
forces, the state begun to take an active role in development in the early stage of
industrialization. Korea had what Myrdal referred to as a ‘hard state’ whose
interventions focused on the development of the areas of the economy perceived
to have longer term potentials. Korea’s authoritarian state pursued pragmatic
approaches to industrialization, accommodating to market forces only when it
was perceived that they would work. The market system did not serve as an
organizing principle of the economy but as an instrument in attaining the national
goal of industrial transformation. The centerpiece of the strategy was
industrialization via export promotion. An extensive system of industrial targeting
was introduced in which a set of promising industries for export was chosen for
government support. The most important means of supporting the targeted firms
was the allocation of financial resources by the state. While high-leveraged
financing for targeted firms relied heavily on state guaranteed external borrowing,
the domestic banks were restricted in credit decisions by government regulations
and were required to hold large amounts of monetary stabilization bonds which
paid below-market rates. This practically inhibited the development and growth
of interbank money markets and established a centralized banking system. As
all the support and incentives were to be given to those firms in the targeted
sectors, the large conglomerates in Korea, known as the cabals, received the
lion’s share in subsidized loans. Large-scale enterprises can capitalize on scale
economies in production and were in a better position to outbid smaller firms in
government-financed projects. This practice of ‘policy loans’ not only led to a
rapid rise in industrial concentration but also rendered Korea’s corporate sector
and the economy vulnerable to external shocks, financially unstable and fragile.
As bankers complied with government guidance in credit allocation, they placed
a trust in the state’s unspoken guarantee of bank loans. They became lax in
examining loan applications, particularly from large conglomerates and extended
loans indiscriminately for profitable but risky ventures. While bankers did not
take very seriously the risk factor in lending, the centralized economic systems
in Korea created clientelistic relations between the state and the corporate sector
— a kind of crony capitalism. The cabals cultivated a symbiotic relationship with
the government, which could help them out if something went wrong with
investment. Their operations were rendered precarious, particularly in bad times
*SLRA64* -3- SLR-A – 64
when the economy was in downturn as was the case in the early 1980s. By the
end of 1996 the average debt-equity ratio of the top 30 chaebols reached 400%,
which was twice the international banking norm of 200%. When Korea joined the
OECD in 1996, it further encouraged capital inflows by opening its financial
market. The domestic banks, mostly merchant banks, heavily imported foreign
capital, mostly of short-term maturity. The cumulative external debt rose from
$42 billion in 1992 to $157 billion in November 1997, the eve of the crisis.
Significantly, almost 90% of the debt originated from the private sources of
merchant and commercial banks. The debt issues aside, it is worth noting further
that the industrial targeting policy of the past three decades has led to serious
structural imbalances and distortions in the Korean economy. The past targeting
approach specified only what sectors of the economy should be promoted for
expansion. Loans tended to be approved on the basis of superficial compliance
with the administrative guidelines and not on merits of individual projects. Many
worthwhile projects failed to win acceptance. These weaknesses were manifest
as early as the late 1970s when a number of government-supported projects had
to be discarded. Too many production units were crowded into a few sectors,
resulting in overcapacity of these industries. On the other hand, the borrowed
money was all too often lavishly invested in speculative real estate markets and
other unproductive non tradable activities. Korea’s developmental state also
rewarded successful exporters by basing support on the quantitative results of
their exports. This policy not only resulted in an economy-wide inefficiency in
resource allocation but also created structural imbalance biased against the
development of domestic goods industries. Moreover, such a support system
favored production of assembly-type exports that relies heavily on foreign raw
materials. This led to the need for more imports through exports with the
consequent chronic pressures on trade balance. In summary, Korea’s past strategy
for growth maximization led to serious structural distortions and imbalances, as
reflected by the syndromes of business concentration, stagnant productivity,
fragile corporate financial structure, corporate bankruptcies, and tenuous inter
industry linkage. The Korean state’s failure to reform flawed industrial and financial
systems in preparation for global economic integration turned out to be the major
structural cause of the current crisis.
SLR-A – 64 -4- *SLRA64*
Instructions : 1) Q. 1 is compulsory.
2) Attempt any two questions from Q. 2, Q. 3 and Q. 4.
3) Attempt any two questions from Q. 5, Q. 6 and Q. 7.
4) Figures to the right indicate full marks.
1. Analyse the following case, identify the problem, suggest alternative solutions
and suggest the best solution. 14
In 2004, Gartner, Inc. (Gartner) issued the first warning to organizations about
the threats they faced from the portable devices carried by the employees. The
Gartner report, which made the headlines at that time, inspired Usher to come up
with the term ‘pod slurping’ in 2005 in his blog Sharp-ideas.net. Usher developed
a proof of concept piece of software named Slurp.exe, which ran directly on an
iPod, to prove the dangers of modern IT devices and to forewarn the companies
of the impending dangers.
Data theft, one of the major security issues facing the companies, could lead to
heavy financial and economic loss to the organizations, according to experts.
Apart from the more prevalent forms of data theft like online hacking of the
organization’s networks and stealing of hard copies of the files of the organization,
the companies were now waking up to yet another ‘physical’ way of data theft
with innocent looking IT gadgets like iPods, digital cameras, MP3 players, and
smart phones. The expenses incurred on preventing the theft of data were slowly
taking a major part of the IT budget for many organizations.
P.T.O.
SLR-A – 65 -2- *SLRA65*
Employees could easily use their advantage of access to the internal resources
of the company to steal vital data. An employee could engage in pod slurping for
various reasons, according to experts. The main motives for stealing the data
were : monetary gain, malicious intent, and curiosity. Corporate data was profitable
in many ways; patented fromulae, tender details, plans for future expansion were
some bits of information which could be very useful to competitors and fetch a
good sum of money in the market. Dishonest employees could steal data and
sell it to their competitors.
The possible threats posed by these portable devices were also becoming a HR
dilemma for the organizations. Insider information was the biggest threat to the
safety of the data resources of the organization.
Statistics showed that internal security breaches were growing faster than the
external security breaches; and it constituted almost half of the total security
breaches in the organization.
While the debate continued on the dangers of pod slurping, there were some who
argued that it was more of hype than a real threat. Though there was every
possibility of the data getting stolen and used for malicious purposes, some
experts opined that the threat had been over-publicized in the media. Vladimir
Chrenavsky (Chrenavsky), CEO of advanced force, a maker of security software,
remarked that the threat was “overblown”.
As the companies initiated steps to tackle data theft, the costs pertaining to
these in the IT budgets of organizations were adding up. Companies had to bear
the costs if they wanted to win the confidence of their stakeholders.
At a time when all the companies (mostly banks and governments) were
encouraging the customers to transact online, a considerable amount of
confidential customer data was stored in the company’s database; and there
could not be any question of complacency on the part of the organizations in
safeguarding this data.
*SLRA65* -3- SLR-A – 65
2) IP sec
3) Types of firewalls.
1) Authentication protocols
2) Major security threats to information systems function
3) Certification authorities.
2) SHA – 1
3) Lattice Based Access Control.
5. Briefly define what is meant by a security program. What are the eight major
steps that must be undertaken during the conduct of a security program ? 14
6. Identify the five common security services required to achieve security goals
and prevent security attacks. 14
_____________________
*SLRA66* SLR-A – 66
Seat
No.
1. Case study :
Balsara Hygiene Products Ltd. in 1978 introduced a tooth paste “Promise” with
clove oil {lavang} as a unique selling proposition. By 1986 Promise became the
second largest selling toothpaste in India. But later the market share was reduced
because of the multinationals. Hindustan Lever’s Close Up gel appealed to the
consumers particularly the teens and young. Balsara entered the Malaysian market
with Promise and another brand of tooth paste “Miswak”. Promise got good
response in Malaysia too because of its clove oil. There was good response to
Miswak also in Muslim dominated Malaysia. Its promotion highlighted the fact
that Miswak was a plant that had been used for centuries for tooth cleansing. It
has references in Koran.
Market intelligence revealed that there was a growing preference in the advanced
countries for nature based products. Balsara tied-up with an agency Auromere
Imports., Los Angeles. An agency established by American followers of Aurobindo,
an Indian philosopher and saint. After eight months of R & D, Balsara developed
a toothpaste containing 24 herbal ingredients. Auromere was voted as the No. 1
toothpaste in North USA.
The product line was extended by introducing several variants of Auromere. A
saccharine free toothpaste was introduced. When the company realized that
Auromere was not doing well in Germany because of the foaming agent used in
the product, it introduced a chemical free variant of the product.
1) Analyse the case. 5
2) Identify the problem. 2
3) Alternative solutions. 5
4) Best solution. 2
P.T.O.
SLR-A – 66 *SLRA66*
5. Define pricing. What are its objectives ? Which are the factors influencing
international pricing decisions ? 14
_____________________
*SLRA67* SLR-A – 67
Seat
No.
P.T.O.
SLR-A – 67 *SLRA67*
6. The price index increased from 120 to 135 in U.S.A. over two years. For the
same period the price index in Japan showed an increase from 110 to 115. If today’s
spot rate is US $ = 125Y , what might be the spot rate after two years ? 14
_____________________
*SLRA68* SLR-A – 68
Seat
No.
1. Study the following case carefully and answer the questions given at the end.
Perfect Braking Solutions (PBS) manufactures truck engine brakes. The company
is a typical example of adhering to batch manufacturing. The company’s products
were usually delivered a month after the due date and in batches on a monthly
basis. There was a mismatch between Perfect Braking Solutions’ delivery and
its clients, requirements which caused the Vice President-Production to radically
alter the company’s functioning by rigorously employing and monitoring lean
production practices.
The principles underlying Perfect Braking Solutions were standardization,
measurement, and innovation, all guided by the objective of continuous
improvement. This enabled the company to make whatever widget they
manufactured at a cost less than most of its competitors. The focus on lean
manufacturing and quality was also taken into the back office and into its sales
and marketing functions thus inculcating a culture of continuous improvement in
the organization.
Since its inception, PBS had been buying out smaller companies and squeezing
out greater efficiencies from them by deploying lean methods with the objective
of reducing inventory levels and hastening the pace of production. This it did in
great part by scrutinizing and bettering the movement of components and products
through its plants. From around 2001 to 2005, takeovers had been responsible
for around 66% of PBS’s average yearly sales growth of 20%. The acquisitions
enabled the company increase its share price by 15 times during the same time
frame. The company grew by one-fifth per annum, and took advantage of a
P.T.O.
SLR-A – 68 *SLRA68*
constant flux of fresh takeovers financed by the surplus accruing from the lean
initiatives at the existing setup. Partly because of the efficiency of its operations,
PBS produced considerable discretionary cash flow.
Some analysts expressed concerns about the increased geopolitical risks that
PBS faced because of its significant global presence. They were also of the view
that if there was a rise in oil prices for extended periods of time, PBS’s operating
margins might come down. Experts were skeptical about PBS’s ability in future
to convert larger companies with institutionalized conventions, embedded cultures,
and a greater number of employees to its lean manufacturing practices.
Questions :
i) Analyze the case. 5
ii) Identify the problem. 2
iii) Find out alternative solutions. 5
iv) Give the best solution. 2
P.T.O.
SLR-A – 69 *SLRA69*
The management team liked recruitment advertisement, but realized that they
did not consider the salary for these new positions. Since the organization has
never hired managers to work outside UK before, they do not know how to start
determining the compensation. They are provided with the following information
that they found on the Internet :
• Existing salary for managers is £ (pound) 30,000 (45,000 Euros) plus bonuses.
• Surveys show that the average salary for hotel managers in France is 60,000
Euros with no opportunity to earn bonuses.
The directors want to have a consistent approach as to how they compensate
expatriates because they expect their overseas business to expand in the future.
They also want existing employees to be enticed into working abroad and want to
have a good range of incentives.
5. What are the challenges for HRM in global business ? Explain the impact of inter
country differences on HRM. 14
7. State the various steps in setting a global pay system and strategies in international
reward. 14
_____________________
*SLRA7* SLR-A – 7
Seat
No.
Instructions : 1) Q. 1 is compulsory.
2) Attempt any two questions from Q. 2, Q. 3 and Q. 4.
3) Attempt any two questions from Q. 5, Q. 6 and Q. 7.
1. Attempt the following problem giving reasons for your answer (any 4) : 14
1) M promises N in consideration of Rs. 1 Lakh, never to marry throughout his
life. Is this a valid restrain ?
2) A young widow was forced to adopt a boy under the threat of preventive the
body of her husband, who had just died, from being removed for cremation.
Is this adoption valid under law ?
3) Snehal promised to give Saroj Rs. 500/- as birthday present on Saroj’s birthday.
Snehal fails to give Rs. 500/- Can Saroj sue Snehal ?
4) A sells a dog to be knowing fully well that the horse is vicious. A does not
disclose the nature of the dog to B. Is the sale valid ?
5) A, a minor fraudulently represented to a moneylender that, he was of major
and obtained a loan of Rs. 25,000/-. Has the moneylender any right of action
against the minor ?
6) X and Y contract to marry each other. Before the time fixed for marriage,
X dies. State the legal effect of this fact on the contract.
P.T.O.
SLR-A – 7 *SLRA7*
2) Importance of IT Act.
3) District Forum.
1) Mismanagement.
2) Kinds of Companies.
_____________________
*SLRA70* SLR-A 70
S e a t
N o .
Primary producers, processors and agents are members of AZULES and all
have clearly defined roles in the production chain. Primary producers are
responsible for agricultural production, while processors are responsible for
processing the raw material to obtain the final product. The product is placed on
consignment at the associations marketing unit, which employs members who
have marketing experience. International clients place orders for indigo powder
with the marketing unit which is, in turn, responsible for collecting, packaging
P.T.O.
SLR-A 70 *SLRA70*
and transporting the product to the loading dock. The relationship between
producers and the marketing unit is through a formal agreement. The marketing
unit does not pay cash for the product-producers receive payment when clients
have paid. The producer also gives the marketing unit a percentage of his
production as samples. A small percentage of production is sold at different
prices on the domestic market. Producers require support for training and
marketing aspects in case of export. 14
_____________________
*SLRA71* SLR-A 71
S e a t
N o .
5. Discuss the role that efficient and effective logistics systems play in encouraging
a high level of foreign trade. 14
6. What are 3PL and 4PL service providers ? Its role in global logistics management ?
Considerations fo hiring 3PL and 4PL service providers. 14
_____________________
*SLRA72* SLR-A 72
S e a t
N o .
6. Write a program using user define function to calculate addition and subtraction
of two numbers (values should be passed as parameter to function). 14
7. Explain LOOKUP, VLOOKUP and HLOOKUP functions in Excel with example. 14
_____________________
*SLRA8* SLR-A – 8
Seat
No.
1. Analyse the following case, identify the problem, provide alternate and best
solution for the same. 14
KSPHC undertakes the construction of buildings that house employees of the
State Government in the police, prisons, home guards and fire departments. In
2000, when the Right to Information Act was enacted, they were compelled to set
up the electronic tendering system.
The conventional tendering process led to the KSPHC overshooting tender cycle
times, resulting in delays in project completions. Prior to the implementation of
the e-tendering solution, KSPHC had its own web based project management
system. The need to speed up the process was felt as well. Driven by the need,
KSPHC had to look for an e-tendering solution provider. The search for the
e-tendering solution ended with Wipro, which deployed a system with an online
reverse auction. The system facilitated the display of notices inviting tenders
incorporating the qualifying requirements on the KSPHC’s website. It enabled
KSPHC to post and amend tender documents, and view and compare bids online.
‘The solution enabled us and the other departments to leverage the system and
conduct online tendering with ease. It is helping the State Government to save
immensely on costs.
The system provides for a registration process which is open ended, and those
agencies which are registered with KSPHC can participate in the tender process.
It facilitates vendors to electronically download and upload tender documents,
track the status of the tenders and receive e-mail alerts. The bids are stored in
P.T.O.
SLR-A – 8 *SLRA8*
the computer and can be opened only at the specified date and time of opening of
the tender. Before the closed bids are opened, an online reverse auction is
conducted and the bidders have the option of revisiting their closed bids. During
the reverse auction process, the bidders get to know only the prevailing lowest
bid at any given point of time and the identity of the other bidders, including the
one with the lowest bid is kept a secret.
The system facilitates the bidders to enter their bids from the place of their
choice, and a username and password is given to them to regulate their entry
into the auction rooms. After the online reverse auction is completed, the lowest
bid is determined therein. The solution also provides for payment gateways, and
issues digital certificates to ensure secure online transactions between the
department and the vendors.
Instructions : 1) Q. 1 is compulsory.
2) Attempt any two questions from Q. No. 2, Q. No. 3 and
Q.No. 4.
3) Attempt any two questions from Q. No. 5, Q. No. 6 and
Q. No. 7.
P.T.O.
SLR-A – 9 *SLRA9*
7. Define marketing research. Explain the process of market research. State its
limitations. 14
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