XIBMS ONGOING EXAM ANSWER SHEETS PROVIDED.
MBA EMBA BMS DMS ANSWERS PROVIDED. DR.
PRASANTH BE BBA MBA PH.D. MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521
EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com
PART – A (10
x 5 = 50)
Answer Any FIVE Questions
1. What is Advertising? Discuss its objectives and point out the
problems of advertising in India
2. How is
Advertising effectiveness tested?
3. What are
the important features of an Advertisement Copy?
4. Discuss
the essential features of a sound advertising policy.
5. Mention the functions of an advertising agency.
6. Examine the function to be considered in the selection of Media
for advertising.
7. What is sales promotion? Why it is importance in marketing
industrial product?
8. Distinguish
between Coupon and Sampling.
9. What are the factors governing basic Promotional strategy?
10. Outline the different methods of providing discounts in the
selling process.
PART – B
(2 x 15 = 30)
Answer Any TWO
Questions
11. “Advertising Sells Product”. Do you agree with this statement?
Give reasons and explain the functions performed by advertising.
12. “The success of Advertisement campaign depends on proper selection
of Media” – Discuss.
13. “Advertising brings long-term benefits but Sales promotion is for
quicker result”. Explain with an example.
14. Analyze the distinctive features of various elements of the
Promotional mix. Illustrate with a suitable example.
15. Outline the different methods of providing discounts in the
selling process.
Brand Management
Maximum Marks: 80
Question
No. 1 is compulsory and is for 16 Marks. Please attempt any 4 questions from
question number 2 to 9.
1. Case Study : (Compulsory)
BURNOL
Burnol has been around for six decades as a yellow
burns-relief ointment. It has almost
become a generic brand. Its yellow
colour reminds one of turmeric, the traditional burns-relief remedy.
The brand has been recently acquired by Dr. Morepen (a
subsidiary of Morepen Laboratories Ltd.) from Reckit Piramal. The brand has high recall value. Morepen is the brand’s third owner (Boots is
the first, Pirmal second).
Burnol’s position in the mind space of the consumer is
that of the burns ointment. It is open
to marketers to reposition the brand.
But sometimes the brand does not budge from its original position. Burnol is a typical example. It is so strong as anti-burn ointment that it
has become intractable.
Burnol introduced by Boots started domestic
manufacturing in 1948. JWT handled the account.
Formerly, it was sold on prescription.
In 1960 it became over-the counter (OTC) product.
As Indian housewives depended upon kerosene or
wood-fed stoves, Burnol became an integral part of the household. In 1967, Burnol’s application was far
widened, to include antiseptic properties against cuts and other wounds. But it
did not succeed and Boots reverted to its original anti-burns position. In 1972, Shield was launched by SKF as a
competitive brand. It was followed by
Medigard by J.L. Morison. But they could
not affect Burnol.
In 1980, a commercial on DD showed a daughter entering
kitchen and getting burns due to oil splash. The mother uses Burnol and the VO
says “Haath jal gaya? Shukar hai ghar mein Burnol jo hai”.
Kitchen became safer in 85s after the switch-over to
LPG-based cooking and the use of gas-lighter instead of the match boxes. Burnol started stagnating.
Though the product had high recall, the actual reality
was that households did not keep the product handy. Plain water was being recommended to treat
burns. Turmeric, as it causes stains,
was becoming a liability. The product
composition was changed by changing colour from deep yellow to non-staining
light yellow. People were coaxed to keep
the product within easy reach, Sales showed some improvement.
In 1995, again it was repositioned as antiseptic for
multiple usages. The colour was made even lighter. It was given a new
perfume. But the brand failed to compete
with other antiseptic creams such as Boroline and Dettol. The brand could not
be moved from its ‘burns’ spot in the consumer mind. It’s becoming generic as a
burns remedy proved to be its cause for stagnation.
In 2000, Burnol was sold to Reckitt Pirmal for 12.5
crore. It became Burnol Plus. It was positioned as ‘first aid cream’. It registered a turnover of ` 6.2 crore in
2002. As Reckit Pirmal joint venture came apart, Burnol was sold to Dr. Morepen
in 2003. It is being relaunched in April
2004.
Burns market including dressings stand as ` 39 crore.
Antiseptic market stands at `
210 crore. The
old need is passing into history. The strategy should be to retain its original
uniqueness, and still broad-base it.
There are new dangers such as geysers, irons, ovens and so on. Burnol can become a cream that ensures safety
if present. Burnol should be promoted as brand that cares.
Burnol is now marketed by Dr. Morepen Lab as
protective cream which should be kept handy always.
Question:
As a Management consultant give your comments on Burnol as a brand.
2. What do you understand by the concept
of a Brand? Describe the characteristics
of Brands.
3. a. Define
the Brand Image. Explain the dimensions of Brand Image.
b. What is
meant by Brand Identity? Explain the different elements of Brand Identity.
4. Discuss in detail the different stages
of brand building process.
5. a. What
is Brand Audit? Explain its importance.
b. Describe the two steps in
brand audit.
6. “Positioning is an outcome of our
perceptions about the brand relative to the competing brands” – Discuss with examples.
7. How do consumers perceive and choose
brands? Discuss.
8. What are the different phases of
strategic brand management process?
9. Discuss the “TEN COMMANDMENTS” of
Global Branding.
BUSINESS ENVIRONMENT
Note: Attempt any five
questions. All questions carry equal marks
1. Discuss the changing scenario of
business environment in India and its principal implications for the business.
2. (a) Explain the dualistic character of
Indian economy and the problem of uneven income distribution.
(b) Outline the development of consumer
movement in India.
3. (a) Write notes on (i) adjudication machinery
for settlement of disputes, and (ii) Employees Pension Scheme, 1995.
(b) Enumerate the powers of the Central
Government to control production, supply and distribution of essential
commodities under the Essential Commodities Act, 1955.
4. Describe the important amendments
proposed under the Companies (Amendment) Bill, 2003 and the additions proposed
thereto by lrani Panel.
5. (a) Can SEBI compel a public company to
get its securities listed on the stock exchanges while making a public issue?
On what grounds can the listed securities be delisted by a stock exchange?
State the rules in this regard.
(b) "The role of stock exchanges in
India need not be over - emphasized”. Comment.
6. Describe the evolution of the concept
of corporate governance and outline the various measures adopted in India to
ensure good corporate governance.
7. Make a critical assessment of New
Economic Policy keeping in view the long term objectives of economic
development.
8. (a) What are the objectives of EXIM
policy 2002 - 07? Explain its main provisions.
(b) Write an explanatory note on functions
and coverage of WTO.
9. Distinguish between the following:
(a) Micro Environment and Macro
Environment
(b) Economic Growth and Economic
Development
(c) Money Market and Capital Market
(d) Entrepreneurship, Role and Promotional
Role of Government
Marks - 80
SECTON-A
ANSWER ALL QUESTIONS (5X3=15)
1. Define business ethics?
2. What is kick-back in business?
3. What is unfair discrimination?
4. What is acid rain?
5. Define the term social responsibility in business?
SECTION-B
ANSWER any 5 QUESTIONS (5X5=25)
6. Difference between transactional & transformational leadership?
7. Business & ethics are contradictory?
8. Explain the term 'stealing trade secrets'
9. Explain whistle blowing
10. Mention 3 unethical practices in marketing?
11. What are the primary reasons for resources depletion?
12. Explain the objectives of social audit?
SECTION-C
ANSWER any 4 questions (10 X 4=40)
13.discuss the role & import of ethics in business
14.explain the types of ethical issues in business
15.discuss about the qualities & features of CEO in business
16.analyses the various causes of pollution in developing countries
explain the principle obligations of a business firm
17.discuss in detail about unfair trade discrimination?
ANSWER ALL QUESTIONS (5X3=15)
1. Define business ethics?
2. What is kick-back in business?
3. What is unfair discrimination?
4. What is acid rain?
5. Define the term social responsibility in business?
SECTION-B
ANSWER any 5 QUESTIONS (5X5=25)
6. Difference between transactional & transformational leadership?
7. Business & ethics are contradictory?
8. Explain the term 'stealing trade secrets'
9. Explain whistle blowing
10. Mention 3 unethical practices in marketing?
11. What are the primary reasons for resources depletion?
12. Explain the objectives of social audit?
SECTION-C
ANSWER any 4 questions (10 X 4=40)
13.discuss the role & import of ethics in business
14.explain the types of ethical issues in business
15.discuss about the qualities & features of CEO in business
16.analyses the various causes of pollution in developing countries
explain the principle obligations of a business firm
17.discuss in detail about unfair trade discrimination?
BUSINESS
STRATEGY
Marks: 100
NOTE:
I. Answer ANY FIVE questions.
II. All questions carry 20 marks each.
III. Total numbers of questions are EIGHT.
----------------------------------------------------------------------
Q.1. Write short notes on ANY TWO of the following
a. Globalization
b. Task and processes in formulating business strategy
c. TQM Philosophy
d. Characteristics of well formulated corporate objectives
Q.2. Describe Vision and Mission statements with suitable illustrations. What is the difference between vision and mission? How does business definition help in articulating the Mission statement?
Q.3. Describe Porter’s five forces model to analyse competition with reference to light commercial vehicle industry.
Q.4. Describe the GE multifactor portfolio matrix and state how the GE matrix is superior tool Vis a Vis the BCG matrix.
Q.5. a) Describe Ansoff’s matrix
b) What is the difference between market penetration and market development? Illustrate with suitable examples.
Q.6. What is “Best cost provider” strategy? What are the risks in pursuing this strategy?
Q.7. What strategic options a firm could follow when the firm is operating in a maturing industry?
Q.8. Describe the role of strategy supportive reward system with suitable illustrations.
NOTE:
I. Answer ANY FIVE questions.
II. All questions carry 20 marks each.
III. Total numbers of questions are EIGHT.
----------------------------------------------------------------------
Q.1. Write short notes on ANY TWO of the following
a. Globalization
b. Task and processes in formulating business strategy
c. TQM Philosophy
d. Characteristics of well formulated corporate objectives
Q.2. Describe Vision and Mission statements with suitable illustrations. What is the difference between vision and mission? How does business definition help in articulating the Mission statement?
Q.3. Describe Porter’s five forces model to analyse competition with reference to light commercial vehicle industry.
Q.4. Describe the GE multifactor portfolio matrix and state how the GE matrix is superior tool Vis a Vis the BCG matrix.
Q.5. a) Describe Ansoff’s matrix
b) What is the difference between market penetration and market development? Illustrate with suitable examples.
Q.6. What is “Best cost provider” strategy? What are the risks in pursuing this strategy?
Q.7. What strategic options a firm could follow when the firm is operating in a maturing industry?
Q.8. Describe the role of strategy supportive reward system with suitable illustrations.
CORPORATE LAW
N.B.:
1 Attempt any Twelve Questions
2) Last two Questions are compulsory
Q.1. In the following statements only one is correct
statement. Explain Briefly?
(5 Marks)
i) An
invitation to negotiate is a good offer.
ii) A
quasi-contract is not a contract at all.
iii) An
agreement to agree is a valid contract.
Q.2. A ship-owner agreed to carry to cargo of sugar belonging to A from
Constanza to Busrah. He knew that there
was a sugar market in Busrah and that A was a sugar merchant, but did not know
that he intended to sell the cargo, immediately on its arrival. Owning to Shipment’s default, the voyage was
delayed and sugar fetched a lower price than it would have done had it arrived
on time. A claimed compensation for the
full loss suffered by him because of the delay.
Give your decision. Explain Briefly?
(5 Marks)
Q.3. The proprietors of a medical preparation called the “Carbolic Smoke
Ball” published in several newspapers the following advertisement:-
“£ 1000 reward will be paid by the Carbolic Smoke Ball Co. to
any person who contracts the increasing epidemic influenza after having used
the Smoke Ball three times daily for two weeks according to printed directions
supplied with each ball. £ 1000 is deposited with the Alliance Bank showing our
sincerity in the matter.
On the faith in this advertisement, the plaintiff bought a
Smoke Ball and used it as directed. She was attacked by influenza. She sued the company for the reward. Will she succeed? Explain Briefly (5 Marks)
Q.4. Fazal consigned four cases of Chinese crackers at Kanpur
to be carried to Allahabad the 30th May,
1987 . He intended to sell
them at the Shabarat festival of 5th
June 1987 . The railway
discovered that the consignment could not be sent by passenger train and asked
Fazal either to remove them or authorize their dispatch by goods train. He took no action and the goods arrived at Allahabad
Fazal filed a suit against Railways for damages due to late
delivery of the goods which deprived him of the special profits at the festival
sale. Decide & explain briefly ?
(5 Marks)
Q.5. ‘Lifeoy’ Soap company advertised that it would give a reward of Rs.
2000 who contracted skin disease after using the ‘Lifeoy’ soap of the company
for a certain period according to the printed directions. Mrs. Jacob purchased the advertised ‘Lifeboy’
and contracted skin disease inspite of using this soap according to the printed
instructions. She claimed reward of Rs.
2000. The claim is resisted by the company on the ground that offer was not
made to her and that in any case she had not communicated her acceptance of the
offer. Decide whether Mrs. Jacob can
claim the reward or not. Give reasons.
Explain briefly?
(5 Marks)
Q.6. In each set of statements, only one is correct. State the correct statements & Explain
briefly?
a) i) A bailee has a
general lien on the goods bailed.
ii) The ownership of
goods pawned passes to the pawnee.
iii)
A gratuitous
bailment can be terminated by the bailor even
before the stated time.
b) i) A
substituted agent is as good an agent of the agent as a sub-
agent.
ii)
An ostensible
agency is as effective as an express agency.
iii)
A principal can
always revoke an agent’s authority. (5 Marks)
Q.7. A, an unpaid seller, sends goods to B by
railway. B becomes insolvent
And A sends a telegram to Railway authorities
not to deliver the goods to B. B. goes to the Parcel office of Railway Yard and
by presenting R. R. (Railway Receipt)
takes delivery of the goods and starts putting them in the cart. Meanwhile the Station Master comes running
with the telegram in hand and takes possession of the goods from B. Discuss the rights of A and B to the goods in
possession of Railway authorities. (5 Marks)
Q.8. X needs Rs. 10,000 but cannot raise this amount because his credit
is not good enough. Y whose credit is
good accommodates. X by giving him a
pronote made out in favour of X, though Y owes no money to X. X endorses the pronote to Z for value
received. Z who is holder in due
course demands payment from Y. Can Y refuse
and plead the arrangement between him and X Explain briefly? (5 Marks)
Q.9. Will C has the right of further negotiation in the following cases:
(B signs the endorsements) Explain
briefly? (5 Marks)
i) ‘Pay C for my
use’
ii) ‘Pay C’)
iii)
‘Pay C or order
for the account of B’
Q.10. A promissory note was made without mentioning any time for
payment. The holder added the words’ on
demand on the face of the instrument.
State whether it amounted to material alteration and explain the effect
of such alteration. Explain briefly? (5 Marks)
Q.11. State whether the following instruments are valid promissory
notes:
i) I promise to pay Rs. 5000 to B on the dearth of ‘B’s uncle
provided that D in his will gives me a legacy sufficient for the promise of
payment of the said sum.
ii) I hereby acknowledge that I owe X Rs. 5,000 on account of rent
due and I agree that the said sum will be paid be me in regular installments.
iii)
I acknowledge
myself indebted to B in Rs. 5000 to be paid on demand for value received. (5 Marks)
Q.12. A Payee holder of a bill of exchange. He endorses it in blank and delivers it to
B. B endorses in full to C or
order. C without endorsement transfers
the bill to D. State giving reasons
whether D as bearer of the bill of exchange is entitled to recover the payment
from A or B or C. Explain briefly?
(5 Marks)
Q.13. Write a short note on the Doctrine of Indoor Management?
Explain briefly? (5 Marks)
Q.14. The shareholders at an annual general meeting passed a
resolution for the payment of dividend at a rate higher than that recommended
by the Board of Directors. Examine the
validity of the resolution. Explain briefly?
(5 Marks)
Q.15. In a prospectus issued by a company the
Managing Director stated that the company had paid dividend every year during
1921 – 27, which was a fact. However,
the company had sustained losses during the relevant period and had paid
dividends out of secret reserves accumulated in the past. Examine the consequences of the observation
made by the Managing Director. Explain briefly? (5 Marks)
Q.16. In a prospectus issued by a company the Managing Director
stated that the company had paid dividend every year during 1921-27, which was
a fact. However, the company had
sustained losses during the relevant period and had dividends out of secret
reserves accumulated in the past.
Examine the consequences of the observation made by the Managing
Director. Explain briefly? (5 Marks)
Q.17. A buys from B 400 shares in a company on the
faith of a share certificate issued by the company. A tender to the company a transfer deed duly
executed together with B’s share certificate.
The company discovers that the certificate in the name of B has been
fraudulently obtained and refuses to register the transfer. Advise A. Explain
briefly? (5 Marks)
Q.18. A insured his house against fire. Later while insure, A killed his wife,
severely injured his only son, set fire to the house and died in the fire. The son survived and sued the insurer for the
fire loss, advice the insurer. Explain
briefly? (5 Marks)
Q.19. a) Satrang Singh
admitted his only infant son in a private nursing home. As a result of strong dose of medicine
administered by the nursing attendant, the child has become mentally retarded.
Satrang Singh wants to make a complaint to the District Forum under the
Consumer Protection Act, 1986 seeking relief by way of compensation on the
ground that there was deficiency in service by the nursing home. Does his complaint give rise to a consumer
dispute? Who is the consumer in the
instant case? Explain briefly?
b) Smart booked a motor vehicle through one of the dealers. He was informed subsequently that the
procedure for purchasing the motor vehicle had changed and was called upon to
make further payment to continue the booking before delivery. On being aggrieved, Smart filed a complaint
with the State Commission under the Consumer Protection Act, 1986. Will he succeed? Explain briefly?
c) Brittle and Company, a small-scale industry, sought nursing and
financing facilities from its bankers by means of grant of further advances and
adequate margin money in anticipation of good demand for its products. In failing to obtain this and having become
sick, it proceeds against its bankers under the Consumer Protection Act, 1986,
Will it succeed? Explain briefly?
(5 Marks)
Q.20. X who was working as a truck driver had taken a general
insurance policy to cover the risk of injuries for a period from 1.11.1998 to
30.11.1999. He renewed the policy for a
further period of one year on 10.11.1999.
On the same day, he met with an accident and suffered multiple injuries
including fractures. X submitted the
claim along with documents to the insurance company. The insurance company
repudiated the claim on the ground that the premium for the renewed policy was
received in the office only at 2.30
p.m. on 10.11.1999, while the accident had taken place at 10.00 a.m. on that day and hence
there was no policy at the time of accident.
Will X succeed if he files a complaint against the insurance company for
this claim? Explain briefly? (5
Marks)
Q.21. Avinash booked his goods with Superfast Freight Carriers at Delhi Mumbai Court Delhi
Q.22. With reference to the provisions of the Consumer Protection
Act, 1986, decide the following giving reasons in support of your answer.
i) Sukh Dukh Ltd. dispatched certain consignments of goods by road
through Fastrack Roadways Ltd. The goods were unloaded and stored in a godown
enroute on the suggestion of consignee. A
fire broke out in the neighbouring godown spread to the godown and goods were
destroyed. The Fastrack Roadways Ltd.
claimed that there was neither negligence nor deficiency in service on their
part and goods were being carried at “Owner risk” and since no special premium
was paid, they were not responsible for the loss caused by fire. Whether Fastrack Roadways Ltd. is liable to
pay damages to consignor?
ii) Life Insurance Corporation (LIC) formulated a scheme called
‘salary saving scheme’ under which employees of an organisation could buy an
insurance policy. Premium due on each
policy was collected by the employer from the salary of the employees nor did
it issue any premium notice. When the
widow of the deceased employee made a claim to LIC on the death of her husband,
the LIC repudiated the claim on the ground that four installments of premium
had not been paid. The widow was
approached the consumer forum for redressal. Is the LIC liable for deficiency
in service? Explain?
iii) Raman booked a ticket from Delhi to
New York New Delhi New York New York
Q.23. With reference to the provisions of the Consumer Protection
Act, 1986, decide the following giving reasons in support of your answer.
i) Sohn sent all relevant documents in an envelope regarding
consignment of goods to a buyer in the USA
ii) Mahesh purchased a machine from Astute Ltd. to operate it
himself for earning his liverhood. He
took the assistance of a person to assist him in operating the machine. The machine developed fault during the
warranty period. He filed a claim in the consumer forum against the company for
deficiency in service. Astute Ltd.
alleged that Mahesh did not operate the machine himself but had appointed a
person exclusively to operate the machine.
Will Mahesh succeed?
iii) Pillai purchased a car by taking a loan from Kerala cooperative
Bank Ltd. and gave post-dated cheques to the bank not only in respect of
repayment of loan instalments but also of premium of insurance policy for two
succeeding years. On the expiry of the policy.
Pillai’s car met with an accident.
Will Pillai succeed in getting a claim against the
Bank ? (10
Marks)
: Finance Management
Maximum Marks: 80
Note : Attempt any five questions. All questions
carry equal marks.
Q1. What do you understand by Internal Audit ? How do
the functions of an internal auditor differ from that of External Auditor ?
Q2. Explain the
consistency concept and Accrual Concept of Accounting. How is the Accrual
Concept adhered to while preparing the final accounts of a company ?
Q3. What are intangible assets of a firm ? Why are
they shown in the Balance Sheet ? What
is meant by amortisation of such assets ? Give reason
for the same.
Q4. What do you
understand by Appropriation of profit of a company? How are the profits
appropriated ? How will the profits to be
appropriated, affected, if the company issues debentures, instead of equity
shares to finance its activities ? Discuss how?
Q5. Distinguish between:
a. FIFO and LIFO methods of Inventory valuation.
b. Rights Shares and Bonus Shares
c. Direct Material Price Variance and Direct Material
Usage Variance
d. Imputed Costs and Opportunity Costs.
Q6. What do you understand by Break-even analysis ?
Discuss the assumptions underlying the break-even analysis. How do these
assumptions make the break-even analysis unrealistic ? Explain and prepare a
Break-even chart assuming relevant figures.
Q7. What do you
understand by Flexible Budget ? How does it differ from a Fixed Budget ?
Explain its utility to a business organisation.
Q8. What do you mean by Control Ratios ? Explain the
three important control ratios
and discuss their significance.
Q9. Explain fully the following statements :
a. Operating cycle plays a decisive role in estimating
the working capital requirement
of a firm.
b. As there is no explicit cost of retained earnings,
they are free of cost.
c. Depreciation acts as a tax shield
d. An investor in shares consi
Human Resource
Management
Total Marks - 80
(1) Answer any
five questions.
(2) All
questions carry equal marks.
(3) Draw
diagrams / sketch wherever necessary.
Q.1) Define the term
Human Resource Management. State its objectives and
What the challenges of HRM in
today’s scenario?
Q.2) (A) Explain
Process of Human Resource Planning.
(B) What are the various Sources
of Recruitment?
Q.3) (A) Explain need
and importance of Training.
(B) What are the different
methods of Training Programme?
Q.4) What is Performance
Appraisal? Explain its various methods.
Q.5) (A) Define Exit
Policy and also state its procedure.
(B) Explain effects of Excess
Manpower on an Organisation.
Q.6) (A) Explain
Concept of Absenteeism. What are the various Causes of
Labour Absenteeism?
(B) State various effects of
Labour Absenteeism on Labour Turnover.
Q.7) Write short
notes: (Any Four)
(a) Role of HR Manager
(b) Personnel Audit
(c) Dismissal
(d) Significance of Record
(e) Transfer Policy
(f) HR Accounting
INTERNATIONAL
BUSINESS
N. B.: 1) Attempt any four
cases 2) All
cases carries equal marks.
No: 1
BPO – BANE OR BOON ?
Several MNCs are increasingly
unbundling or vertical disintegrating their activities. Put in simple language, they have begun
outsourcing (also called business process outsourcing) activities formerly
performed in-house and concentrating their energies on a few functions. Outsourcing involves withdrawing from certain
stages/activities and relaying on outside vendors to supply the needed
products, support services, or functional activities.
Take Infosys, its 250 engineers
develop IT applications for BO/FA (Bank of America Novato , California Massachusetts
General Hospital
2500 college educated men and women
are buzzing at midnight at
Wipro Spectramind at Delhi US
insurance company and providing help-desk support for a big US Internet service
provider-all at a cost upto 60 percent lower than in the US
Another activist in BOP is
Evalueserve, headquarterd in Bermuda and having main operations near Delhi
Evaluserve provides services like
patent writing, evaluation and assessment of their commercialization potential
for law firms and entrepreneurs. Its
market research services are aimed at top-rung financial service firms, to
which it provides analysis of investment opportunities and business plans. Another major offering is multilingual
services. Evalueserve trains and
qualifies employees to communicate in Chinese, Spanish, German, Japanese and
Italian, among other languages. That
skill set has opened market opportunities in Europe
and elsewhere, especially with global corporations.
ICICI infotech Services in Edison , New Jersey , is
another BOP services provider that is offering marketing software products and
diversifying into markets outside the US
In its first year after setting up
shop in March 1999, ICICI infotech spent $33 million acquiring two information
technology services firms in New Jersy-Object Experts and ivory Consulting –
and command Systems in Connecticut US US market offensive, which would go towards R
& D and back-end infrastructure support, and creating new versions of its
products to comply with US Berlin , Germany with the Fraunhofer Institute for
Software and Systems Engineering, which is based in Berlin
and Dortmund , Germany
A relatively late entrant to the US
ICICI Infotech’s expansion into new
overseas markets has paid off. Its $50
million revenue for its latest financial year ending March 2003 has the US operations generating some $15 million, while
the Middle East and Far East markets brought
in another $9 million. It new boasts more than 700 customers in 30 countries,
including Dow Jones, Glazo-Smithkline, Panasonic and American Insurance Group.
The outsourcing industry is indeed
growing form strength. Though technical
support and financial services have dominated India
Outsourcing of human resource
services or HR BPO is emerging as big opportunity for Indian BPOs with global
market in this segment estimated at $40-60 billion per annum. HR BPO comes to about 33 percent of the
outsourcing revenue and India has immense potential as more than 80 percent of
Fortune 1000 companies discuss offshore BOP as a way to cut costs and increase
productivity.
Another potential area is ITES/BOP
industry. According to A NASSCOM survey,
the global ITES/BOP industry was valued at around $773 billion during 2002 and
it is expected to grow at a compounded annual growth rate of nine percent
during the period 2002 – 06, NASSCOM lists the major indicators of the high
growth potential of ITES/BOP industry in India
During 2003 – 04, The ITES/BPO
segment is estimated to have achieved a 54 percent growth in revenues as
compared to the previous year. ITES exports
accounted for $3.6 billion in revenues, up form $2.5 billion in 2002 – 03.
The ITES-BPO segment also proved to be a major opportunity for job
seekers, creating employment for around 74,400 additional personnel in India
Legal outsourcing sector is another
area India India India
Research firms such as Forrester
Research, predict that by 2015 , more than 489,000 US
Many more new avenues are opening up
for BOP services providers. Patent
writing and evaluation services are markets set to boom. Some 200.000 patent applications are written
in the western world annually, making for a market size of between $5 billion
and $7 billion. Outsourcing patent
writing service could significantly lower the cost of each patent application,
now anywhere between $12,000 and $15,000 apiece-which would help expand the market.
Offshoring of equity research is another
major growth area. Translation services
are also becoming a big Indian plus. India produces some 3,000 graduates in German
each year, which is more than that in Switzerland
Though going is good, the Indian BPO
services providers cannot afford to be complacent. Phillppines, Maxico and Hungary Russia China
BOP is based on sound economic
reasons. Outsourcing helps gain cost
advantage. If an activity can be
performed better or more cheaply by an outside supplier, why not outsource it ?
Many PC makers, for example, have shifted from in – house assembly to utilizing
contract assemblers to make their PCs.
CISCO outsources all productions and assembly of its routers and
witching equipment to contract manufactures that operate 37 factories, all
linked via the internet.
Secondly, the activity (outsourced)
is not crucial to the firm’s ability to gain sustainable competitive advantage
and won’t hollow out its core competence, capabilities, or technical know
how. Outsourcing of maintenance
services, date processing, accounting, and other administrative support
activities to companies specializing in these services has become common
place. Thirdly, outsourcing reduces the
company’s risk exposure to changing technology and / or changing buyer
preferences.
Fourthly, BPO streamlines company
operations in ways that improve organizational flexibility, cut cycle time,
speedup decision making and reduce coordination costs. Finally, outsourcing allows a company to
concentrate on its core business and do what it does best. Are Indian companies listening ? If they listen,
BPO is a boon to them and not a bane.
Questions:
1. Which of the theories of international
trade can help Indian services providers gain competitive edge over their
competitors?
2. Pick up some Indian services
providers. With the help of Michael
Porter’s diamond, analyze their strengths and weaknesses as active players in
BPO.
3. Compare this case with the case given at
the beginning of this chapter. What
similarities and dissimilarities do you notice? Your analysis should be based
on the theories explained.
No: 2
One of these potential investors is
a large New York
During the 1970s, the Peruvian
government nationalized a number of industries and factories and began running
them for the profit of the state in most cases, these state – run ventures
became disasters. In the late 1970s the fishing fleet owner was given back his
ships and allowed to operate his business as before. Since then, he has managed to remain
profitable, but the biggest problem is that his ships are getting old and he
needs an influx of capital of make repairs and add new technology. As he explained it to the new York
Having reviewed the fleet owner’s
operation, the large multinational bank believes that the loan is
justified. The financial institution is
concerned, however, that the Peruvian government might step in during the next
couple of years and again take over the business. If this were to happen, it
might take an additional decade for the loan to be repaid. If the government were to allow the fleet owner
to operate the fleet the way he has over the last decade, the fleet the
way he has over the last decade, the
loan could be repaid within seven years.
Right now, the bank is deciding on
the specific terms of the agreement.
Once theses have been worked out, either a loan officer will fly down to
Lima and close the deal or the owner will be
asked to come to New York Lima
Questions:
1. What are some current issues facing Peru Peru
2. What type of political risks does this
fishing company need to evaluate? Identify and describe them.
3. What types of integrative and protective
and defensive techniques can the bank use?
4. Would the bank be better off negotiating
the loan in New York or in Lima
No: 3
RED BECOMING THICKER
The
Backdrop
There seems to
be no end to the troubles of the coloured – water giant Coca Cola. The cola
giant had entered India India
The
Story
It was in the
early 1990s that India India
Jayadeva Raja, the flamboyant
management expert was made the first CEO of Coke India
Raja was replaced by the hard –
nosed Richard Niholas in 1995. The first thing Nicholas did was to give an
ultimatum to the bottlers to expand their plants or sell out. Coke also
demanded equity stakes in many of the bottling plants. The bottlers had their own difficulties as
well. They were running on low profit
margins. Nor was Coke willing to finance
the bottlers on soft terms. The
ultimatum backfired. Many bottlers switched their loyalty and went to
Pepsi. Chauhan allegedly supported the
bottlers, of course, from the sidelines.
Coke thought it had staged a coup
over Pepsi when it (Coke) clamed the status of official drink for the 1996
Cricket World Cup tournament. Pepsi took
on Coke mightily with the famous jingle “Nothing official about it”. Coke could
have capitalized on the sporty image of Thums Up to counter the campaign, but
instead simply caved in.
Donald Short replaced Nicholas as
CEO in 1997. Armed with heavy financial
powers, Short bought out 38 bottlers for about $700 million. This worked out to about Rs 7 per case, but
the cost – effective figure was Rs 3 per case. Short also invested heavily in
manpower. By 1997, Coke’s workforce
increased to 300. Three years later, the
parent company admitted that investment in India
It is not in the culture of Coke to
admit failure. It has decided to fight
back. Coke could not only sustain the
loss, it could even spend more money on Indian operations. It hiked the ad budget and appointed Chaitra
Leo Burnett as its ad agency. During
1998 – 99, Coke’s ad spend was almost three times that of Pepsi.
Coke is taking a look at its human
resources and is taking initiatives to re – orient the culture and inject an
element of decentralization along with empowerment. Each bottling plant is expected to meet
predetermined profit, market share, and sales volumes. For newly hired management trainees, a
clearly defined career path has been drawn to enable them to become profit
centre heads shortly after completion of their probation. Such a decentralized
approach is something of a novelty in the Coke culture worldwide.
But Alezander “Von Behr, who
replaced Short as Chef of Indian operations, reiterated Coke’s commitment to
decentralization and local responsiveness.
Coke has divided India
Coke started cutting down its
costs. Executives have been asked to
shift from farm houses to smaller houses and rentals of Gurgaon headquarters
have been renegotiated. Discount rates
have been standardized and information systems are being upgraded to enable the
Indian headquarters to access online financial status of its outposts down to
the depot level.
Coke has great hopes in Indian as
the country has a huge population and the current per capita consumption of
beverages is just four bottles a year.
Right now, the parent company (head
– quartered in the US
Meddling
Board
Coke’s star- studded group of
directors, many of whom date back to the Goizueta era, has built a reputation
for meddling.
Moribund
Marketing
Once world class critics say that
today the soda giant has become too conservative, with ads that don’t resonate
with the teenagers and young adults that made up its most important audience.
Lack
of Innovation
In the US
Friction
with Bottlers
Over the past decade, Coke has often
made its profit at the expenses of bottlers, pushing aggressive price hikes on
the concentrate it sells them. But key
bottlers are now fighting back with sharp increases in the price of coke at
retail.
International
Worries
Coke desperately needs more
international growth to offset its flagging US
business, but while some markets like Japan
When its own house is not in order
in the large country, will the company be able to focus enough on the Indian
market?
Questions:
1. Why is that Coke has not been able to
make profit in its Indian operations?
2. Do you think that Coke should continue to
stay in India
3. What cultural adaptations would you
suggest to the US
4. Using the Hofstede and the value
orientations cultural models, how can you explain some of the cultural
differences noted in this case?
NO. 4
THE ABB PBS
JOINT VENTURE IN OPERATION
ABB Prvni Brnenska Stojirna Brno,
Ltd. (ABB-PBS), Czechoslovakia April
15, 1993 .
Business for the joint venture in
its first two full years was good in most aspects. Orders received in 1994, the first full year
of the joint venture’s operation, were higher than ever in the history of
PBS. Orders received in 1995 were 2½
times those in 1994. The company was
profitable in 1995 and ahead of 1994s results with a rate of return on assets
of 2.3 per cent and a rate of return on sales of 4.5 per cent.
The 1995 results showed substantial
progress towards meeting the joint venture’s strategic goals adopted in 1994 as
part of a five year plan. One of the
goals was that exports should account for half of the total orders by
1999. (Exports had accounted for more
than a quarter of the PBS business before 1989, but most of this business
disappeared when the Soviet Union Collapsed).
In 1995 exports increased as a share of total orders to 28 per cent, up
from 16 per cent the year before.
The external service business,
organized and functioning as a separate business for the first time in 1995,
did not meet expectations. It accounted
for five per cent of all orders and revenues in 1995, below the 10 per cent
goal set for it. The retrofitting
business, which was expected to be a major part of the service business, was
disappointing for ABB-PBS, partly because many other small companies began to
provide this service in 1994, including some started by former PBS employees
who took their knowledge of PBS-built power plants with them. However, ABB-PBS managers hoped that as the
company introduced new technologies, these former employees would gradually
lose their ability to perform these services, and the retrofit and repair service
business, would return to ABB-PBS.
ABB-PBS dominated the Czech boiler
business with 70 per cent of the Czech market in 1995, but managers expected
this share to go down in the future as new domestic and foreign competitors
emerged. Furthermore, the west European
boiler market was actually declining because environmental laws caused a surge
of retrofitting to occur in the mid -1980 s, leaving less business in the 1990
s. Accordingly ABB-PBS boiler orders
were flat in 1995.
Top managers at ABB-PBS regarded
business results to date as respectable, but they were not satisfied with the
company’s performance. Cash flow was not
as good as expected. Cost reduction had
to go further. The more we succeed, the
more we see our shortcomings” said one official.
Restructuring
The first round of restructuring was
largely completed in 1995, the last year of the three-year restructuring
plan. Plan logistics, information
systems, and other physical capital improvements were in place. The restricting included :
- Renovating
and reconstructing workshops and engineering facilities.
- Achieving
ISO 9001 for all four ABB-PBS divisions. (awarded in 1995)
- Transfer
of technology from ABB (this was an ongoing project)
- Intallation
of an information system.
- Management
training, especially in total quality assurance and English language.
- Implementing
a project management approach.
A
notable achievement of importance of top management in 1995 was a 50 per cent
increase in labour productivity, measured as value added per payroll
crown. However, in the future ABB-PBS
expected its wage rates to go up faster than west European wage rates (Czech
wages were increasing about 15 per cent per year) so it would be difficult to
maintain the ABB-PBS unit cost advantage over west European unit cost.
The Technology
Role for ABB-PBS
The joint venture was expected from
the beginning to play an important role in technology development for part of
ABB’s power generation business worldwide.
PBS a.s. had engineering capability in coal – fired steam boilers, and
that capability was expected to be especially useful to ABB as more countries
became concerned about air quality.
(When asked if PBS really did have leading technology here, a boiler
engineering manager remarked, “Of course we do.
We burn so much dirty coal in this country; we have to have better
technology”)
However, the envisioned technology
leadership role for ABB-PBS had not been realized by mid – 1996. Richard Kuba, the ABB-PBS managing director,
realized the slowness with which the technology role was being fulfilled, and
he offered his interpretation of events.
“ABB did not promise to make the
joint venture its steam technology leader. The main point we wanted to achieve
in the joint venture agreement was for ABB-PBS to be recognized as a
full-fledged company, not just a factory.
We were slowed down on our technology plans because we had a problem
keeping our good, young engineers. The annual employee turnover rate for
companies in the Czech
Republic
ABB-PBS had benefited
technologically from its relationship with ABB.
One example was the development of a new steam turbine line. This project was a cooperative effort among
ABB-PBS and two other ABB companies, one in Sweden
and one in Germany
Questions:
1. Where does the joint venture meet the needs of both the
partners? Where does it fall short?
2. Why had ABB-PBS failed to realize its technology leadership?
3. What lessons one can draw from this incident for better
management of technology transfers?
NO. 5.
CHINESE
EVOLVING ACCOUNTING SYSTEM
Attracted by its rapid
transformation from a socialist planned economy into a
market economy,
economic annual growth rate of around 12 per cent, and a population in excess
of 1.2 billion, Western firms over the past 10 years have favored China China as an
emerging economic superpower, with an economy that will be as large as that of Japan by 2000 and that of the US
The Chinese government sees foreign
direct investment as a primary engine of China China China China , many Western firms
find themselves struggling to comply with the complex and often obtuse nature
of China
Accounting in China
Although the system is changing
rapidly, many problems associated with the old system still remain.
One problem for investors is a
severe shortage of accountants, financial managers, and auditors in China China
A further problem concerns the
somewhat halting evolution of China China China
In the meantime, current Chinese
accounting principles present difficult problems for Western firms. For example, the former Chinese accounting
system didn’t need to accrue unrealized losses.
In an economy where shortages were the norm, if a state-owned company
didn’t sell its inventory right away, it could store it and use it for some
other purpose later. Similarly,
accounting principles assumed the state always paid its debts –
eventually. Thus, Chinese enterprises
don’t generally provide for lower-of-cost or market inventory adjustments or
the creation of allowance for bad debts, both of which are standard practices
in the West.
Questions:
1. What factors have shaped the accounting system currently in
use in China
2. What problem does the accounting system, currently in sue in
China, present to foreign investors in joint ventures with Chinese companies?
3. If the evolving Chinese system does not adhere to IASC
standards, but instead to standards that the Chinese governments deem
appropriate to China’s “Special situation”, how might this affect foreign firms
with operations in China ?
NO. 6
UNFAIR PROTECTION OR VALID DEFENSE ?
“Mexico
International trade theories argue
that nations should open their doors to trade.
Conventional free trade wisdom says that by trading with others, a
country can offer its citizens a greater volume and selection of goods at
cheaper prices than it could in the absence of it. Nevertheless, truly free trade still does not
exist because national governments intervene.
Despite the efforts of the World Trade Organization (WTO) and smaller
groups of nations, governments seem to be crying foul in the trade game now
more than ever before.
We see efforts at protectionism in
the rising trend in governments charging foreign producers for “dumping” their
goods on world markets. Worldwide, the
number of antidumping cases that were initiated stood at about 150 in 1995, 225
in 1996, 230 in 1997 , and 300 in 1998.
There is no shortage of similar
examples. The Untied States charges Brazil , Japan ,
and Russia with dumping
their products in the US United States United
States
Emerging markets, too, are jumping
into the fray. Mexico Mexico India Argentina , China ,
Indonesia , South Africa , South
Korea , and Thailand
Why is dumping on the rise in the
first place? The WTO has made major inroads on the use of tariffs, slashing tem
across almost every product category in recent years. But the WTO does not have
the authority to punish companies, but only governments. Thus, the WTO cannot pass judgments against
individual companies that are dumping products in other markets. It can only pass rulings against the
government of the country that imposes an antidumping duty. But the WTO allows countries to retaliate
against nations whose producers are suspected of dumping when it can be shown that : (1) the
alleged offenders are significantly hurting domestic producers, and (2) the
export price is lower than the cost of production or lower than the home –
market price.
Supporters of antidumping tariffs
claim that they prevent dumpers from undercutting the prices charged by
producers in a target market and driving them out of business. Another claim in support of antidumping is
that it is an excellent way of retaining some protection against potential
dangers of totally free trade.
Detractors of antidumping tariffs charge that once such tariffs are
imposed they are rarely removed. They
also claim that it costs companies and governments a great deal of time and
money to file and argue their cases. It
is also argued that the fear of being charged with dumping causes international
competitors to keep their prices higher in a target market than would other wise
be the case. This would allow domestic
companies to charge higher prices and not lose market share – forcing consumers
to pay more for their goods.
Questions
1. “You can’t tell consumers that the low
price they are paying for a particular fax machine or automobile is somehow
unfair. They’re not concerned with the
profits of companies. To them, it’s just a great bargain and they want it to
continue.” Do you agree with this statement? Do you think that people from
different cultures would respond differently to this statement? Explain your
answers.
2. As we’ve seen, the WTO cannot currently
get involved in punishing individual companies for dumping – its actions can
only be directed toward governments of countries. Do you think this is a wise policy ? Why or
why not? Why do you think the WTO was not given the authority to charge
individual companies with dumping? Explain.
3. Identify a recent antidumping case that
was brought before the WTO. Locate as many articles in the press as you can
that discuss the case. Identify the nations, products (s), and potential
punitive measures involved. Supposing you were part of the WTO’s Dispute
Settlement Body, would you vote in favor of the measures taken by the retailing
nation? Why or why not?
Logistics Management
Maximum: 100 marks
PART A — (5 X 8 = 40 marks)
Answer any FIVE questions.
All questions carry equal marks.
1. What are life cycle logistics?
2. Compare and contrast a performance cycle and a link.
3. Explain the considerations should be employed to identify the appropriate customer service measures.
4. What criteria might be applied in order to determine a minimum order quantity?
5. Explain the significance of costing in logistics.
6. Describe the difference between demand and replacement cycle.
7. Explain the merits of distribution information system.
8. What is the logic for considering a warehouse a ‘‘necessary evil’’?
PART B — (4 X 15 = 60 marks)
Answer any FOUR questions.
9. Explain the recent developments in logistics management.
10. Discuss the fundamental similarities and difference between procurement, manufacturing support and physical distribution performance cycle as they relate to logistical control.
11. Discuss and illustrate the economic justification for establishing a warehouse.
12. Why does customer service not increase proportionately to increases in total cost when a logistical system is being designed?
13. What is sensitivity analysis? What is its role in system design and analysis?
14. What is SWOT? Why it is required?
15. Explain how diversion and reconsignment can be used to increase logistical efficiency and effectiveness with an example.
MANAGEMENT CONTROL
SYSTEMS
Marks: 80
Note: Attempt any five questions. All questions carry equal marks.
1. Explain the various components of
control systems.
2. Explain the following models and
highlight their usefulness in formulating business unit strategies:
(a) The BCG Model
(b) General Electric (GE) Planning Model
(a) The BCG Model
(b) General Electric (GE) Planning Model
3. Explain the boundary conditions in the
context of profit centre. Also explain the process of performance measurement
of profit centers.
4. What do you understand by Investment
Centres? Explain the methods used for measuring investment centre performance.
5. What do you mean by budgetary control
system? Explain the process of budgetary control in an organization.
6. Describe the criteria on which the
incentives of business unit managers are decided.
7. What are the various special control
issues faced by Multi National Corporations?
8. What are the characteristics of a
project organization? Explain how these characteristics affect the control
system design of a project.
Marketing Management
Max. Marks : 80
Instructions :
(1) Attempt any five questions.
(2) All questions carry equal marks.
Q.1) Define Marketing Management. Discuss its importance and scope in today's
dynamic Competitive Environment.
Q.2) What is 'Product Life Cycle' ? How Marketing Mix Decisions have to
be adjusted at different stages of PLC (Product Life Cycle) ?
Q.3) Explain various pricing strategies a firm can adopt.
Q.4) What is Product Mix ? Explain various Product Mix Strategies with suitable
examples.
Q.5) Discuss various cultural issues involved in International Marketing.
Q.6)
(A) What is Consumer Buying Behaviour ?
(B) Explain various steps involved in Buying Consumer Goods.
Q.7) Write short notes : (Any Two)
(a) Promotion through International Exhibitions and Trade Fares
(b) Use of Internet as a Marketing Tool
(c) Channel Conflicts
Instructions :
(1) Attempt any five questions.
(2) All questions carry equal marks.
Q.1) Define Marketing Management. Discuss its importance and scope in today's
dynamic Competitive Environment.
Q.2) What is 'Product Life Cycle' ? How Marketing Mix Decisions have to
be adjusted at different stages of PLC (Product Life Cycle) ?
Q.3) Explain various pricing strategies a firm can adopt.
Q.4) What is Product Mix ? Explain various Product Mix Strategies with suitable
examples.
Q.5) Discuss various cultural issues involved in International Marketing.
Q.6)
(A) What is Consumer Buying Behaviour ?
(B) Explain various steps involved in Buying Consumer Goods.
Q.7) Write short notes : (Any Two)
(a) Promotion through International Exhibitions and Trade Fares
(b) Use of Internet as a Marketing Tool
(c) Channel Conflicts
No comments:
Post a Comment