Professional Documents
Culture Documents
MBA-III Semester
FT301C: Strategic Management
Note: Attempt any 4 questions from Section A. Each question carries 10 marks. Section B is
compulsory and carries 20 marks.
Section A
1. (a) Distinguish between mission, vision and objectives. Explain the importance of these components
in an organization.
[8 Marks]
(b) What is a distinctive competence and how is it important for strategy formulation?
2. Describe the application of techniques for strategic control.
[2 Marks]
[10 Marks]
3. Strategy includes the determination and evaluation of alternative paths to an already established
mission or objective and eventually choice of the alternatives to be adopted Explain the statement
underlining the process of strategy formulation.
[10 Marks]
4. (a) Why have mergers and acquisitions strategies gained popularity in India?
[5 Marks]
(b) Distinguish between related and unrelated diversifications. Examine the merits and demerits of
each.
[5 Marks]
5. Write short notes on following: (Any Two)
a) BCG matrix
b) Procedural Implementation
c) Strategic Control v/s Operational Control
d) Matrix Structure
Section B
[5x2=10 Marks]
6. Analyze the case and answer the questions given at the end.
MYSORE FOODS LIMITED
Mysore Foods Limited produces and distributes packaged food products such as cereals, biscuits, spices,
jams and jellies, syrups, etc. The company has a national market and also exports small quantities to
neighbouring countries. It conducts a large national advertising campaign. It has 75 plants located all
over the country and markets 70 different products, each under its own trade mark. Though its products
are all food products, they are not otherwise closely related. They vary from long margin specialities
with comparatively small volume to large-volume items with smal profit margins. Different raw
materials and other articles are used in their processing and packing. All products are, however, sold
through the same channel. i.e., retail and provision stores. Gross sales are Rs. 25 crore and total assets
exceed Rs. 12 crore.
The management of Mysore Foods Limited is centralised. The Chairman of the Board, the President and
four Vice-Presidents who are responsible for sales, production, purchasing and law make up the topmost
executive level of the company and operate as a committee on all general policy matters.
Sales, advertising and sales promotion come under the Sales Vice-President. All plant operations as well
as the research and engineering department report to the Production Vice-President. Purchasing is the
responsibility of its Vice-President who also governs traffic. Public relations, law and corporate
functions fall under the General Counsel. Financial responsibilities are handled by the President and
employee relations are covered by each Vice-President in his own area of responsibility.
The company was set up by combining several food products organisations and it has acquired others
since One of the theories of the organisers was that there would be great advantage in wholesale
distribution if one salesman could cover an entire line on one call as against a number of salesmen, each
calling to sell a single line. Saving in time alone would be of great value to the distributor. This principle
has been retained and has proved successful as the company has grown. One sales organisation handles
all the products. Each product is given specific time and attention by the sales organisation in
accordance with its demands.
The head of the field sales organisation reports to the Vice-President. The Advertising Manager and the
Sales Promotion Manager take care of advertising and sales promotion for the entire line but each
product has its own advertising campaign and appropriation. The Sales Promotion Manager is in-charge
of the missionary salesman who contacts retailers.
To avoid neglect or error, single product or a group of products are assigned to one of the 20 Product
Managers. Each Product Manager is responsible for seeing that his product receives due attention from
the sales organisation, the production department, and the advertising and promotion departments. He
specialises in the pricing and sales appeal questions of his product. He reports, however, to the Sales
Vice President, who has the overall control. The Sales Vice-President can curtail any efforts of the
Product Managers if he is using his sales force for special efforts on some other product or products.
There is no institutional advertising. All advertising is coordinated and placed by the Advertising
Manager while the final authority rests with Sales Vice-President.
Each plant is operated by a superintendent who is in-charge of wages, maintenance, cost, output, quality,
hiring, inspection and other normal plant operation responsibilities. Superintendents report to eight
Regional Production Managers who are responsible to the Production Vice-President. The volume of
production in each plant is scheduled by the production control group reporting to the Operating Vice
President. Final schedules are set after consulting the Sales Vice-President.
The business has more than doubled in the last ten years and profits, both gross and net, have increased.
The number of plants has also more than doubled. Purchases have increased proportionately. New taxes
and new reports to the government have added to the complexity. The management feels that certain
problems are potentially dangerous and should be solved before they become serious.
There have been periods in which a product has got into difficulty because of loss of favour with the
public, bad management or even neglect. Attention of the Sales Vice-President to the problems of some
products has caused him, at times, to fail to recognise difficulties in other products even though the
Product Manager of such products had recognised them and brought them to his attention. The burden
on the present officers is becoming too heavy to ensure proper attention to all their responsibilities.
Employment of assistants erodes the personal touch of the top group that is necessary for sucessful
management.
Opportunities for increasing product-lines and expanding the business are being lost because of lack of
executives' time to study them or to manage new products. In any business where specialities are sold
under trade marks and brands are the major business of a company, it is necessary for the company to
continually bring out new products and to study old ones to determine the point of no return regarding
promotion and advertising expenses.
Once the top executives group has approved the idea of a new product, it is put under one of the Vice
Presldents. He develops an organisation and brings it along. At first, the advertising appropriation for a
new product is not the responsibility of the Sales Vice-President but of the Developing Vice President.
Eventually, if the product proves to be successful it is turned over to the regular line of organisation.
With new products and growth in the old ones, the weight, complexing and number of decisions that
have to be taken by the very few men at the top, mean a heavier burden for them.
The management feels that in addition to the lost opportunities, market poiential and the need for
development of present products are not being fully recognised. The business may have grown too big
for the form of management. Executives require more responsible attention for each product. At the
same time they wish to retain the advantages of central management in purchasing, traffic, institutional
reputation and minimum sales approach and to maintain the high-calibre advice and experience now
present in law, advertising, accounting and public relations.
Questions:
(i)
How far is the existing organizational structure effective in the changed conditions of the
company?
[5 Marks]
(ii)
Indicate : (a) How the desired product responsibility can be achieved ?, (b) Any changes in line
authority, and (c) The use, if any, of staff, functional authority or committees.
[5 Marks]
(iii)
What policy and organizational structure changes do You recommend, and why ?
[5 Marks]
(iv)
[5 Marks]
Note: Q.1 is compulsory and carries 20 marks. Attempt any 4 Question from Q.2 to Q.6, each question
carries 10 marks.
1. (a) Sulabh International is evaluating a Project whose expected cash flows are as follows:
Year
Cash Flow
(1000000)
100000
200000
300000
600000
300000
(i) What is the NPV of the project , if the discount rate is 14 % for the entire period?
[5 Marks]
(ii) What is the NPV of the project if the discount rate is 12% for year 1 and rises every year by 1 percent?
[5 Marks]
(b) Explain the difficulties faced in capital expenditure decision.
[5 Marks]
[5 Marks]
2. A project consists of 12 activities and their time estimates are shown below:
[2x5=10Marks]
Activity
Time in weeks
to
tm
tp
1-2
10
1-3
12
1-4
1-7
2-4
10
20
2-6
2-7
15
3-4
12
4-5
5-6
3-7
6-7
25
30
40
45
50
30
This investment is a ZERO-NPV investment. Calculate the economic rate of return and the book return on
income(assuming straight line depreciation method over 6- year life) for the above project.
4. The sales of a certain product during a fourteen year period have as follow:
[10 Marks]
2000
4000
2200
3900
2100
10
4000
2300
11
4200
2500
12
4300
3200
13
4900
3600
14
5300
Find the least squares regression line for the data given.
5. a) Why should post-audit should be done?
[2 Marks]
b) What is performance analysis ? What are the dimension along which monitoring is done in
performance analyses?
[2 Marks]
c) How would you characterize the market?
[2 Marks]
[2 Marks]
6. A Project has begun on 1st April 2011 and was expected to be completed by 31st December 2011. The project
is being reviewed on 30th September 2011when the following information has been developed:
[2 x 5=10 Marks]
Budgeted cost for work scheduled (BCWS) :Rs.9000000
:13000000
:8000000
:8800000
Determine the following (i) cost variance,(ii) schedule variance in cost terms,(iii) cost performance index,(iv)
schedule performance index, and (v) estimate cost performance index.
by
Brand
Equity?
Explain
various
(b) Explain the Hofstele Model for understanding Core Value of Brand?
methods of
[5 Marks]
[5 Marks]
3. Brand is built in the minds of people. Do you agree? Explain this in context
to Asian Paints.
[10 Marks]
OR
Write short notes on the following:a)
b)
c)
d)
e)
[2 x 5 = 10 Marks]
Brand Differentiation
Co-branding
Celebrity Endorsement Pros and Cons
Brand Positioning
Brand Extension
4. A leading hair oil company plans to enter into the antiseptic skin cream business in competition
with the market leader Boroline. Discuss the positioning and Brand building strategies that the
company can use.
[10 Marks]
5. (a) Define seven stages of Product Life Cycle along with the Managerial Applications?
[5 Marks]
(b) Why is the product deletion important to the health of the company?
SECTION B
6. Read the case given below and answer the questions given at the end of the case.
[5 Marks]
your premium product to the rich farmer in Gurgaon," said Tahil. "In its absence, reaching out to the
dispersed consumer will be prohibitively costly. Also, it will be difficult to get the required volumes."
Raja had other plans. He wanted to enter the super premium segment so that Eva could be Electra's
image leader. "Why did Titan launch Tanishq ? Certainly not for volumes." he argued. "The premium
range has a positive rub-off on the medium range. If a company launches a super premium product, its
image becomes so overwhelming that the consumer does not question the price or the quality of its other
product." he said.
"That 'image leader' angle is a double-edged sword," countered Tahil. "If the super premium product
fails to make a mark in three years' time, its image as well as the company's image will take a beating."
Raja cited the example of BPL. "When it entered the refrigerator market, BPL was aware it was taking
on the might of Videocon, a sturdy, reliable, home grown brand. To gain a quantum leap over Videcon's
image perception, BPL first launched the three door refrigerator. Its launch stoked the interest of
consumers,who gushed and gawked and went home and told their neighbours about it. So, the next time
someone wanted to buy a basic 165-litre refrigerator, he first checked out a BPL fridge. Soon after that,
BPL launched its home entertainment system, another super premium product. No one questioned the
price or whether the product would be successful because they all knew that there were buyers for the
quality that BPL had to offer. Thereafter, every offering from BPL was viewed with respect," he said.
Brand building, Tahil felt, worked when it ran parallelto volume building. "The middle class is very
aware and iscontinuously upgrading its information. It will want toknow how many Indians are buying
Electra and we need to answer that with some volumes," he said.
In such a scenario, the launch of Eva appeared to bea wasteful exercise. "The premium you can charge
on aproduct must have a meaningful price to quality/valueratio," argued Tahil. "Price is no longer the
deciding factor, it is value instead. As we go along you'll find consumers are less likely to compare
prices than they didin the past," declared Raja.
Tahil disagreed with Raja on the significance of price. "Price will always be a key factor in the purchase
decision.The people you are targeting for Eva watch the market, evaluate products and are very aware.
They may buy a pair of Reebok shoes for Rs. 2,000, but a refrigerator for Rs. 1 lakh ? That's going too
far," he said.
Raja left after coffee, but Tahil carried hisdisagreement to the squash court. "Raja is trapped in
amythical view of the Indian middle class," he said to Sarin."All around us lie the debris of companies
whichoverestimated the middle class' willingness to pay forglobal brands. Yet he believes that Eva has
potential," he said.
Sarin felt Tahil was underestimating the market. "Inthe wake of liberalization, there was a lot of
brouhaha -over the relevance of some of the products entering India.
People asked, 'Who needs KFC ? Who needs Reebok ?'But we must realize that the consumers aspired
for anything global. Now they are asking for particular fearures and design improvement, he said.
"Who are these consumers ?" asked Tahil. "Theglorious middle class ?"
"Tahil, in durables you have to benchmarkdifferently. When you are selling potato chips or cornflakes,
you are looking at one set of consumer behaviourpatterns. But in durables, which can replace manual
tasks,the consumer is seeking higher value delivery. Within this,there is also a segment which is
indifferent to high prices the self-employed and the high-flying executive. Theyhave access to soft loans
and hefty perk. Money is noobject for thern. They are eating out twice a week, buying shoes worth Rs.
2,000 and paying Rs. 1 lakh for healthclub memberships.
Questions:
a) Critically evaluate the price band being suggested forEva. Do you agree with Rajan's assessment
of the targeted consumer or with Tahil's ? Justify you answer.
[10 Marks]
b) What in your view are the target customers for this kind of product ? What is the brand
positioning that you would suggest for Eva in view of the target market identified by you ?
[10 Markls]
Section A
1. a) Briefly describe environmental influence on consumer behavior with examples.
[4 Marks]
[3 Marks]
[3 Marks]
[6 Marks]
[2 Marks]
[2 Marks]
[5x2=10 Marks]
[5 Marks]
[5 Marks]
[5 Marks]
[5 Marks]
Section B
6. Read the case below and answer the questions given at end.
The Meine desh ka namak khaya hai TATA advertisement campaign in 2002 offered viewers an instant
connection. In India, salt and loyalty have been associated from time immemorial. Namak halal and Namak
Haram are commonly used terms for honest and dishonest people respectively. According to cultural
connotations, after consuming salt at a persons house the one who has consumed the salt should not cheat his/her
host. The campaign connected with the consumer at an emotional level.
TATA Chemicals Ltd (TCL) started manufacturing salt in 1939 after establishing a solar salt works at Mithapur,
Gujarat. It pioneered the concept of iodized and vacuum-evaporated salt in India in the early 1980s and created a
need that was not felt by consumers before. Interestingly, the opportunity came accidentally, when in 1983, the
company needed fresh water for its boilers that produced soda ash at its Mithapur plant in Gujarat. As fresh water
was scarce in the area, the company began processing sea water. Salt of high quality was the by-product.
Estimated to be worth Rs.10 billion, TATA has a 21% share in the packaged iodized salt industry in India.
According to A.C. Neilson in Brand Track 2002-03, 90% of the people surveyed across the country had tried
TATA salt at least once. The salt market is pegged at five million tones out of which 1.5 million tones are of the
branded variety. TATA salt leads the market with a 40% share. According to analysts, TATA was able to get the
leadership position in the category as it had the first mover advantage. Some competing brands include
Annapurna from HLL, Dandi from Kumwar Ajay industries, Shudh from the Mirma Group, Captain Cook from
DCW Home foods, Ashiwaad from the ITC stable, besides some international brand likeCargil and Congra. From
vacuum-evaporated to iodized from free flow to danedar, one does not see much brand differential among
competitive brands, hence the need for a strong and memorable advertising plank and better packaging. One finds
vigorous advertising by major players in the mass media. Looking at the overseas potential, TATA, according to
industry buzz, is exploring the Middle East market and those of neighboring countries like Nepal and Bangladesh.
Tetleys overseas distribution network could come in handy for marketing the salt in these countries. In order to
expand the user base, TATA salt that is priced at Rs 8 per kilogram, against un-branded salts at Rs 3-4 per kg.
The company has launched its economy brand Samundar at Rs 5 per kg. Purity, trust, and value have been the
planks of its communication strategy. The earlier catch-line, Namak ho TATA ka, TATA namak, when more
competitors came into the market, and the need for an emotional bond was felt. Besides an aggressive approach to
branding, the company improved packaging, sales, and supply chain management. According to company
sources, consumer research by TATA Chemicals in June 2002 revealed that people had a sense of insecurity and a
disgust for corruption, which they thought were eroding Indian democracy. The insights that the research
provided helped in tapping patriotic and nationalist favor. TATA took the opportunity to be associated with the
universal theme of remaining ture to ones salt and to ones country. This was the philosophy behind the
Meine desh ka namak khaya hai tagline. The new packaging, with the visual of delectable cuisine, backed this.
Vacuum evaporated and iodized were clearly written on the pack a plank that other competitors also used.
The advertisement with the visual of a banana leaf and a pinch of salt in a corner ( a traditional serving in south
India) with the headline (figure 1.12): To Indian housewives, our salt always comes first and the catch line
Meine desh ka namak khaya hai was considered by analysts as amongst the greatest advertisements when it
appeared. In order to connect with communities, TATA salt has used public relations to sustain the brand on a
ling term basis. Since the launch of the Desh ka namak campaign in 2002, during some specified months, a
small percentage of money that accrues from the sale of TATA salt is set aside for economically disadvantaged
children. In the two years since the launch, 25,000 children have been provided with one year of education.
QUESTIONS:
1. Salt is a generic product and is basic to human existence. Why then in your view, is there so
much competition and rigorous marketing in this category?
[10 Marks]
2. Who are the major players in the branched salt category and what are their consumer
strategies?
[10 Marks]
Section A
1. (a) You are the sales executive of a company, how would you be handling the objections ofyour
customers while personally selling the product? Explain. (Make assumptions if required)
[5 Marks]
(b) Explain the Objective and Task method of preparing advertising budget. What are its merits and
demerits?
[5 Marks]
2. What are the various components of advertising-copy? Explain structure/lay-out of the ad-copy.
[10 Marks]
3. What do you mean by DAGMAR? Explain the characteristics of advertising objectives given in the
DAGMAR approach and also explain the criticism of DAGMAR.
[10 Marks]
4. What do you mean by pre testing and post testing methods of measuring ad effectiveness? Why does
Advertising manager evaluate the effectiveness of advertising?
[10 Marks]
5. (a) what are the various sales promotion techniques? Discuss them in short.
(b) In what conditions should following techniques be used?
Sampling
Exchange offer
Frequency program
Trade fair and exhibitions
Section B
6. Analyze the case and answer the questions given at the end.
[6 Marks]
[4 Marks]
1. (a) Mr.Injamam a Pakistan cricket player, comes India since 2000-2001 every year to play cricket
and stay here for 120 days. State his residential status for assessment year 2011-12.
[5 Marks]
(b) X joins a company on December 1,2007 in the pay scale of Rs.10000-Rs.1000Rs.25000(salary at the time of joining is fixed at Rs.12000).As per the terms of employment
salary becomes due on the first day of the month, and it is generally paid on the fifth day of the
next month. Find out the salary taxable for the assessment year2011-12.
[5 Marks]
(c) Mr. Mayank Shukla is the owner of a house at Gwalior particular in respect of
year ended 31st March 2011 are as below:
Actual rent received (monthly)
Municipal Valuation (Annual)
Fair Rent (monthly)
Total Municipal Tax
Municipal Tax paid by Mayank
Municipal Tax paid by tenant
Interest on loan taken for renovation of the house
Rs.14500
Rs.142500
Rs.14000
Rs.16300
Rs.8000
Rs.8300
Rs38400
(d) Discuss the provision relating to disallowance of cash payment in excess of Rs.20000/-.
[5 Marks]
2. Profit and loss account of a trader shows Net profit Rs.138000 after debiting following items[10 Marks]
Income tax paid Rs.7000 and Income tax procedure expenses Rs.1100
Interest on loan taken for payment of Income tax Rs.1000.
Sales tax Rs.18000 and penalty interest Rs.5000 for delay in payment of sales tax. Penalty for Sales
tax evasion Rs.4000.
Cash payment to a creditor A Rs.28000. On 28th January 2010 in two parts Rs. 15000 & 13000
respectively and B Rs. 29700 (on 28th January Rs.19700 and 30th January Rs.10000).
Municipal tax Rs1800. The 1/3 portion of the house is used for business and half portion is used for
self residence and the remaining portion is let out.
The aforesaid Net Profit includes Rs.3000 for recovery of old bad debts which were
disallowed by Income Tax Officer. Depreciation on business assets regarding the pervious year
2009-10 is allowed for Rs.16800 according to section 32 of Income Tax Act was not recorded in the
books. Find out taxable income from business.
3. On 1st July, 2010 Dhirendra Dave sold share of Infosis Ltd. For RS.400000/- and earned a long term
capital gain amounting Rs.150000/-.on 1st November,2010 he invested Rs.50000/- to purchased
bond issued by National Highway Authority of India through public issue. On 1st February, 2011 he
purchased a residential house costing RS.240000/- for his own residence. Remaining amount
Rs.110000/- invested in debentures.
Find out taxable amount of Capital Gain for assessment year 2011-12.
[10 Marks]
[10 Marks]
1. He took a house on the rent of RS.1000 per month and let it out again for Rs.1600 per month.
Besides it he received Rs.5000 rent from his ownership house.
2. Dividend from a Foreign Company Rs.4000
3. Speculation business profit of Rs.6000 and Rs. 500 from cricket gambling.
4. Agriculture income in Pakistan Rs.10000 was not brought in India Rs.18000 income from
agricultural land situated at kanpur.
5. Salary as M.L.A. Rs.90000/- daily allowance Rs.44000/-, constituency allowance Rs.48000 and
other allowance Rs.30000/6. Share in H.U.F. income RS. Rs.8500/7. on the occasion of his birthday (10.01.2010) he has been gifted Rs.80000/- by his father and Rs.
50000/- by his friends father. Apart from this he also received Rs.5000/- each from 10 friends.
8. Dividend Received Rs.6000/- from co-operative society.
Compute Income from other source for the assessment year 2011-12.
5. (a) Discuss the deduction under section 80C of Income Tax against Gross Total Income. [5 Marks]
(b) Discuss briefly Deduction in respect of interest paid on loan taken for higher education (Sec.80E).
[5 Marks]
6. Mr. Rajeev Kumar Zalani is Principal in a college. His basic salary is Rs.13500 per month. He gets
48% D.A. and 12.5% House Rent Allowance. He contributes 10 % of basic salary 25% of D.A.
towards provident fund. He also paid life insurance premium Rs.3800.
Professional Tax is Rs.1200 and he lives in a rental house which rent is Rs.2500 per
month. He also gets principal ship allowance Rs.5000 per month.
Calculate taxable income and TDS amount for the A.Y.2011-12.
[10 Marks]
Months
[10 Marks]
Sales
Purchase
Wages
Expense
Jan.
(Actual)
80000
45000
20000
5000
Feb.
(Actual)
80000
40000
18000
6000
March
(Actual)
75000
42000
22000
6000
April
(Budgeted)
90000
50000
24000
7000
May
(Budgeted)
85000
45000
20000
6000
June
(Budgeted)
80000
35000
18000
5000
Additional Information:
a. 10% of the purchase and 20% of the sale for cash
b. The average collection period of the company is half month and the credit purchase are paid off
regularly after one month.
c. Wages are paid half monthly and the rent of Rs.500/-included in expense is paid monthly.
d. Cash Balance as on April 1, may be taken at Rs.15000/B. You are required to prepare a statement showing the working capital needed to finance a level of annual
activity of 52,000 units of output. The following information is available:
[10 Marks]
Element of cost
(Rs.per unit)
Raw material
Direct labour
Overheads
Total
16
Profit
Selling price
20
Raw materials are in stock, on an average for 4 weeks. Materials are in process, on an average, for
2.Finihed goods are in stock, on an average, for 6 weeks. Credit allowed to customer is for 8 weeks.
Credit allowed by suppliers of raw material is for 4 weeks. Lag in payment of wages 1.5 weeks. It is
necessary to hold cash in hand and at bank amounting to Rs 75000. It may be noted that production is
carried on evenly during the year and wages and overheads accrued.
C. The following are the details regarding the operation of a firm during a period of 12 months:
Sales
Rs.12,00,000
10
one month
The firm is considering a proposal for a more liberal credit by increasing the average collection period
from one month to two months. This relaxation is expected to increase sales by 25%.
You are required to advise the firm regarding adopting the new credit policy, presuming that the firms
required return on investment is 25%.
You are required to prepare a statement showing the working capital needed to finance a level of annual
activity of 52,000 units of output.
[10 Marks]
2. What do you mean by Working Capital. What are the various sources of working capital financing
available to business organizations? Explain in detail.
[10 Marks]
3. The following information is available for Sintex ltd.
Particulars
[10 Marks]
(Rs000)
400
600
360
600
360
20
[3 Marks]
[3 Marks]
B. (i) What do you understand by receivables management? Discuss the factors which influence the
size of receivables.
[5 Marks]
(ii) What are the objectives of cash management? Explain the factors determining the level of cash
in a firm.
[5 Marks]
5. (a) What is meant by inventory? Discuss as to why Inventory management is important explaining the
items of stock kept by a manufacturing company.
[5 Marks]
(b) What do you mean by ABC analysis? Describe its advantages?
[5 Marks]
6. The turnover of Rudraksha ltd. is Rs.60 lakhs of which 80% is on credit. Debtors are allowed one month
to clear off the dues. A factor is willing to advance 90% of the bills raised on credit for a fee of 2% a
month plus a commission of 4% on the total amount of debts. Rudraksha ltd. as a result of this
arrangement is likely to save Rs.21,600 annually in management costs and avoid bad debts at 1% on the
credit sales.
A bank has come forward to make an advance equal to 90% of the debts at an annual interest rate of 18%.
However, its processing fee will be at 2% on the debts. Suggest whether you would accept factoring or
the offer from the bank?
[10 Marks]
1. (a) Explain the term Derivative. Describe and explain in detail the various types of derivatives?
[5 Marks]
(b) Explain the different categories of traders in the derivatives market.
[5 Marks]
[5 Marks]
Rs. 180
[5 Marks]
2. Shares of Pranav Ltd. Are being quoted at rs.500.3 months futures contract rate is Rs. 520 per share
for a lot size of 500 shares. If the Pranav Ltd. is not expected to distribute any dividend in the interim,
risk free rate of return 9%,what is recommended course of action for a trader in share?
If the 3-month futures contract rate is Rs.500, what should be action? And make Arbitrage Table.
[10 Marks]
3. Sunder Ramanujam had entered into 5 put Option and % Call option in the different securities the
particulars of which are given below along with their exercise price and actual market price on the
date of exercise[10 Marks]
Put option
Securities
Exercise Price
120
122
758
758
350
340
65
69
225
220
Call option
Securities
Exercise Price
369
376
450
444
1790
1700
136
140
953
953
4. Companies X and Y have been offered the following rates per annum on a $ % million 10 year
investment:
[10 Marks]
Fixed Rate
Floating rate
Company X
8%
LIBOR
Company Y
8.8%
LIBOR
Company X requires a fixed rate investment; Company Y requires a floating rate investment
.Design a swap and that will net a bank, acting as intermediary, 0.2% per annum and will appear
equally attractive to X and Y.
5. (a) Difference between future and forward.
[5 Marks]
(b) What is In the Money,At the Money, and Out of The Money with reference to option.
[5 Marks]
6. Explain the following terms relating to options:
a. BSE & NSE
b. NCDEX & MCX
c. Buyer of an option
d. Writer of an option
e. American & European Option
[2x5=10 Marks]
(a) Define HRD. How important is the role of line managers and top management in
implementing HRD in organizations? Explain with examples.
[7 Marks]
(b) Why HRD is needed in any organization? Explain
2.
3.
[3 Marks]
Explain various sub-systems of HRD? Briefly discuss how do sub-systems of HRD facilitates
growth and development of organizations. Explain with suitable examples.
[10 Marks]
(a) Explain the three important methods of training.
[6 Marks]
[4 Marks]
4. (a) Performance appraisal should be two-way street. Supervisors evaluate their subordinates and
subordinates should evaluate their supervisors. Do you agree or disagree? Discuss. [5 marks]
(b) Explain Modern methods of performance appraisal.
5.
[5 marks]
[5x 2=10 Marks]
HRD Competencies
Balance Score Card
Transactional Analysis
Section B
6.
Read the following case and answer the questions given at the end.
Training for Whom?
Microelectronics, a California-based electronics defense contractor, has enjoyed a smooth growth curve
over the past five years, primarily because of favorable defense funding during the Reagan
administration's build-up of U.S. military defenses. Microelectronics has had numerous contacts to
design and develop guidance and radar systems for military weaponry.
Although the favorable funding cycle has enabled. Microelectronics to grow at a steady rate, the
company is finding it increasingly difficult to keep its really good engineers, based on extensive
turnover analyses conducted by Ned Jackson, the human resources planning manager, Microelectronics
problem seems to be its inability to keep engineers beyond the "critical" five year point. Apparently, the
probability of turnover drops dramatically after five years of service. Ned's conclusion is that
Microelectronics has been essentially serving as an industry college. Their staffing strategy has always
been to hire the best and brightest engineers from the best engineering schools in the United States.
Ned believes that these engineers often get lost in the shuffle at the time they join the firm. For example,
most (if not all) of the new hires must work on non-classified projects until cleared by security to join a
designated major project. Security clearance usually takes anywhere from six to ten months. In the
meantime the major project has started, and these young engineers frequently miss out on its design
phase, considered the most creative and challenging segment of the program. Because of the nature of
project work, new engineering often have difficulty learning the organizational culture - such as who to
ask when you have a problem, what the general dos and don'ts are, and why the organization does things
in a certain way.
After heading a task force of human resource professionals within Microelectronics, Ned has been
designated to present to top management a proposal designed to reduce turnover among young
engineering recruits. The essence of his plan is to create a mentor program, except that in this plan the
mentors will not be the seasoned graybeards of Microelectronics, but rather those engineers in the
critical three-to-five year service window, the period of highest turnover, These engineers will be paired
with new engineering recruits before the recruits actually report to Microelectronics for work.
According to the task force, the programme is twofold: (1) it benefits the newcomer by easing the
transition into the company, and (2) it helps the three-to-five-year service engineers by enabling them to
serve an important role for the company. By performing the mentor role, these engineers will become
more committed and hence less likely to leave. As Ned prepared his fifteen-minute presentation for top
management, he wondered it he had adequately anticipated the possible objections to the program in
order to make an intelligent defense of it. Only time would tell.
Questions:
a) Identify the salient issues from HR point of view for this case.
[5 Marks]
b) lf you were to study this turnover problem, how would you conduct a needs analysis or evolve a
counseling program ?
c) What are the causes of dissatisfaction and turnover in Microelectronics?
[5 Marks]
[5 Marks]
d) Do you find the mentoring programme suitable to reduce turnover? Justify your answer. [5 Marks]
[5 Marks]
(b) Write briefly how trade unions are registered and certificates of certificate of registration
thereof under the Trade Unions Act, 1926?
[5 Marks]
Or
Industrial relations in India are not conducive to rapid Industrial Growth Do you agree?
Suggest measures to bring about harmonious industrial relations for sustained growth?
[10 Marks]
2.
3.
[4 Marks]
[5 Marks]
(b) State the general provisions regarding the benefits under the the ESI act 1948.
4.
(a) Time and piece rate systems are like double edged weapon, if not adopted properly they do
more of harm than good.
[5 Marks]
(b) Write a note on Fringe Benefits.
5.
[5 Marks]
[5x2=10 Marks]
Minimum Wages
Payment of wages
Provident Fund
Gratuity Act, 1972
Section B
6.
[5 Marks]
Read the following case and answer the questions given at the end.
As George House, Vice-president of finance, and Helen Robbins, controller walked into the office of
Adrian Barnes, chairperson and chief executive officer of Kappa Corporation, they were met with the
following outburst from the companys top officer.
Why doesnt someone tell me things? Why cant know what is going on around here? Why am
I kept in the dark? No one informs me about how the company is doing and I never seem to hear of our
problems until they become crises. Now, I want you both to work out a system for keeping me informed,
and I want to know by next Monday how you will do it. I am tired of being isolated from the things I
must know if am to take responsibility for this company
After George House had left Mr. Barness office, he turned to his controller and muttered, That
silly jerk! Everything he wants to know or could possibly want to know is in that stack of reports on the
table in back of his desk.
Questions:
1. Who was right Adrian Barnes or George House? Was barnes getting information?
[5 Marks]
2.
3. What would you do to makes sure that the chair person did get the information he needed for control
purposes?
[5 Marks]
7.
[10 Marks]
In Reliance Stores Co. Ltd. Which is engaged in shoes making business, violated the condition of
license by employing sales girls at their shops. They were paid low rate of wages, and they were
disallowed to marry for three years after employment and given birth to a child within five years. The
contractors did not pay any attention to the demand of women workers when they complained to the
director they started detaining them during night shifts. The workers were compelled to wear obscene
uniform too.
It was found that such sort practices continued indirectly by contractor at the instance of
Personnel Officer of the company and the management kept long silence. Suggest how the workers
union can prosecute the culprits exercising conspiracy and committing of non cognizable offence within
the factory premises and under which provisions the workers can get relief.
2.
3.
[2 Marks]
[4 Marks]
[4 Marks]
[6 Marks]
[4 Marks]
(a) What is OD? Explain the operational goals of OD with suitable examples.
[5 Marks]
[5 Marks]
OR
Explain OCTAPACE Culture in detail.
[10 Marks]
4.
Discuss the foundations of OD. Explain various fields involving OD contribution. [10 Marks]
5.
(a) Briefly mention the objectives of OD. Describe how and when T-Group method can be used
as an OD Intervention, citing an example.
[6 Marks]
(b) Explain any Team Intervention with example.
[4 Marks]
Section B
6. Read the following case and answer the questions given at the end.
TransAct Insurance Corporation (TIC) provides automobile insurance throughout the south-eastern
United States. Last year a new president was brought in by TIC'S Board of Directors to improve the
company's competitiveness and customer service. After spending several months assessing the situation,
the new president introduced a strategic plan to improve TIC'S competitive position. He also replaced
three vice presidents. Ram Kumar was hired as vice president of claims, TIC's largest division with
1,500 employees, 50 claims center managers, and 5 regional directors.
Ram Kumar immediately met with all claims managers and directors, and visited employees at TIC's 50
claims centers. As an outsider, this was a formidable task, but his strong interpersonal skills and
uncanny ability to remember names and ideas helped him through the process. Through these visits and
discussions, Ram Kumar discovered that the claims division had been managed in a relatively
authoritarian, top down manner. He could also see that morale was extremely low and employeemanagement relations were guarded. High workloads and isolation (claims adjusters work in tiny
cubicles) were two other common complaints. Several managers acknowledged that the high turnover
among claims adjusters was partly due to these conditions.
Following discussions with TIC's president, Ram Kumar decided to make morale and supervisory
leadership his top priority. He initiated a divisional newsletter with a tear-off feedback form for
employees to register their comments. He announced an open-door policy in which any claims division
employee could speak to him directly and confidentially without going first to the immediate supervisor.
Ram Kumar also fought organizational barriers to initiate a flextime program so that employees could
design work schedules around their needs. This program later became a model for other areas of TIC.
One of Ram Kumar's most pronounced symbols of change was the "Claims Management Credo"
outlining the philosophy that every claims manager would follow. At his first meeting with the complete
claims management team, Ram Kumar presented a list of what he thought were important philosophies
and actions of effective managers. The management group was asked to select and prioritize items from
this list. They were told that the resulting list would be the division's management philosophy and all
managers would be held accountable for abiding by its principles. Most claims managers were uneasy
about this process, but they also understood that the organization was under competitive pressure and
that Ram Kumar was using this exercise to demonstrate his leadership.
The claims managers developed a list of 10 items, such as encouraging teamwork, fostering a trusting
work environment, setting clear and reasonable goals, and so on. The list was circulated to senior
management in the organization for their comment and approval and sent back to all claims managers
for their endorsement. Once this was done, a copy of the final document was sent to every claims
division employee. Jim also announced plans to follow up with an annual survey to evaluate each claims
manager's performance. This worried the managers but most of them believed that the credo exercise
was a result of Ram Kumar's initial enthusiasm and that he would be too busy to introduce a survey after
setting into the job.
One year after the credo had been distributed; Ram Kumar announced that the first annual survey would
be conducted. All claims employees were to complete the survey and return it confidentially to the
human resources department where the survey results would be compiled for each claims center
manager. The survey asked the extent to which the manager had lived up to each of the 10 items in the
credo. Each form also provided space for comments.
Claims center managers were surprised that the survey Ram Kumar had promised a year ago would be
conducted, but they were even more worried about Ram's statement that the results would be shared
with employees. What "results" would employees see? Who would distribute these results? What
happens if a manager gets poor ratings from his or her subordinates? "We'll work out the details later,"
said Ram in response to these questions. "Even if the survey results aren't great, the information will
give us a good baseline for next year's survey.
The claims division survey had a high response rate. In some centers, every employee completed and
returned a form. Each report showed the claims center managers average score for each of the 10 items
and how many employees rated the manager at each level of the five point scale. The reports also
included every comment made by employees at that center.
No one was prepared for the results of the first survey; most managers received moderate or poor ratings
on the 10 items. Very few managers averaged above 3.0 (out of a five-point scale) on more than a
couple of items. This suggested that, at best, employees were ambivalent about whether their claims
center manager had abided by the 10 management philosophy items. The comments were even more
devastating than the ratings. Comments ranged from mildly disappointed to extremely critical of their
claims manager. Employees also described their long-standing frustration with TlC, high workloads, and
isolated working conditions. Several people bluntly stated that they were skeptical about the changes
that Ram had promised. "We've heard the promises before, but now we've lost faith." wrote one claims
adjuster.
The survey results were sent to each claims manager, the regional director, and employees at the claims
center. Ram Kumar instructed managers to discuss the survey data and comments with their regional
manager and directly with employees. The claims center managers, who thought employees only
received average scores, were shocked to learn that the reports included individual comments; some
managers went to their regional director, complaining that revealing the personal comments would ruin
their careers. Many directors sympathized, but the results were already available to employees.
When Ram heard about these concerns, he agreed that the results were lower than expected and that the
comments should not have been shown to employees. After discussing the situation with the regional
directors, he decided that the discussion meetings between claims managers and their employees should
proceed as planned. To delay or withdraw the reports would undermine the credibility and trust that
Ram was trying to develop with employees. However, the regional director in that area attended the
meeting in each claims center to minimize direct conflict between the claims center manager and
employees.
Although many of these meetings went smoothly, a few created harsh feelings between managers and
their employees. The source of some comments was easily identified by their content, and this created a
few delicate moments in several sessions. A few months after these meetings, two claims center
managers quit and three others asked for transfers back to non-management positions in TIC.
Meanwhile, Ram wondered how to manage this process more effectively, particularly since employees
expected another survey the following year.
Questions:
(a) Carry out SWOT analysis of above case.
[5 Marks]
(b) Identify the forces pushing for change and the forces restraining the change effort in this case.
[5 Marks]
(c) Was Ram Kumar successful at bringing about change? Why or why not?
[5 Marks]
[5 Marks]
Note: Question No. 1 is compulsory and carries 20 marks. Attempt any four Questions from Q.
No. 2 to Q.6. Each question carries 10 marks.
1.
2.
3.
4.
5.
6.
(a)
What are the benefits of Object Oriented Programming over Procedure Oriented
Programming?
[6 Marks]
(b)
[6 Marks]
(c)
[4 Marks]
(d)
[4 Marks]
(a)
[5 Marks]
(b)
How class templates are used to provide scope to out side functions.
[5 Marks]
(a)
(b)
(a)
(b)
(a)
(b)
[4 Marks]
[4 Marks]
[2 Marks]
[4 x 2=10 Marks]
Note: Question No. 1 is compulsory and carries 20 marks. Attempt any four from Q. 2 to Q.6.
Each question carries 10 marks.
1.
2.
[10 Marks]
(b)
[5 Marks]
(c)
[5 Marks]
(a)
[5 Marks]
(b)
[5 Marks]
3.
Explain switching techniques. Differentiate between circuit and packet switching. [10 Marks]
4.
(a)
[5 Marks]
(b)
[5 Marks]
5.
[5 x 2 = 10 Marks]
a. NOS
b. DSL
c. Data Compression
6.
[5 x 2 = 10 Marks]
Note: Question No. 1 is compulsory and carries 20 marks. Attempt any four Questions from Q. 2
to Q.6. Each question carries 10 marks.
1.
2.
3.
(a)
What do you understand by software process model. Draw process model to represent
your current approach to developing a software.
[8 Marks]
(b)
[6 Marks]
(c)
[6 Marks]
(a)
What are Software Matrics? What is the role of matrices in Project Management and in
Process Management.
[5 Marks]
(b)
What are the relative advantages of using PERT chart and Gantt charts in Scheduling
and Monitoring Projects.
[5 Marks]
(a)
What are the components of SRS Documents? Discuss the Characteristics of SRS.
[5 Marks]
4.
5.
6.
(b)
What do you understand by Software Risks? Discuss typical Software Risks.[5 Marks]
(a)
[5 Marks]
(b)
[5 Marks]
(a)
[5 Marks]
(b)
[5 Marks]
(a)
[5 Marks]
(b)
[5 Marks]
Note: Attempt any 4 questions from section A. Each question carries 10 marks. Section B is
compulsory and carries 20 marks.
Section A
1.
2.
3.
4.
5.
(a)
[5 Marks]
(b)
[5 Marks]
(a)
[5 Marks]
(b)
[5 Marks]
(a)
Describe the relationship between market demand APP, Master production schedule
and
MRP through a flow diagram, showing capacity planning and finished assembly
schedules inserted in the diagram.
[6 Marks]
(b)
[4 Marks]
(a)
[4 Marks]
(b)
List the four criteria for determining the effectiveness of a scheduling decision. How do
there criteria relate to the criteria for sequencing decisions?
[6 Marks]
[2 x 4 = 10 Marks]
(a)
(b)
Under what conditions an organization should convert from a job shop production system
to a cellular system?
(c)
(d)
How does hybrid push-pull system works? What stages of supply chain use push system
& what stages use pull system?
Section B
5.
(a)
The following jobs are waiting to be processed at the same machine centre. Jobs are
logged as they arrive.
[10 Marks]
313
312
16
325
40
314
314
In what sequence should the jobs be sequenced according to the following rules:
(i) FCFS
(ii) EDD
(iii)
SPT
All dates are specified as manufacturing planning calendar dates. Assume that all jobs arrive
on day 275.
6.
[5 x 2 =10 Marks]
a) Describe three lean tools & how they contribute to lean objectives?
b) Six jobs are to be processed through a two-step operation. The first operation involved
sanding & second involves painting. Processing times are as follows:
Job Operation I Operation II
A
10
Note: Attempt any four Questions from Section A each carry 10 marks. Section B is
compulsory and carries 20 marks.
Section A
1.
2.
3.
4.
5.
(a)
[5 Marks]
(b)
[5 Marks]
(a)
[5 Marks]
(b)
[5 Marks]
(a)
[5 Marks]
(b)
[5 Marks]
(a)
[5 Marks]
(b)
[5 Marks]
(a)
[5 Marks]
(b)
[5 Marks]
[5 X 4 = 20 Marks]
2.
3.
4.
5.
(a)
[5 Marks]
(b)
[5 Marks]
(a)
[5 Marks]
(b)
[5 Marks]
(a)
[5 Marks]
(b)
[5 Marks]
(a)
[5 Marks]
(b)
[5 Marks]
(a)
[5 Marks]
(b)
[5 Marks]
[10 x 2 = 20 Marks]