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 Examination paper of Six Sigma Management

IIBM Institute of Business Management

IIBM Institute of Business Management

Examination Paper MM.100

Six Sigma Green Belt

Section A: Objective Type & Short Questions (40 Marks)

 This section consists of Multiple Choice questions.

 Answer all the questions.

 Each question carries 1 mark each.

Part One:

Multiple Choices:

1. The primary purpose of a control chart is to_________

a. Set Specifications and tolerances

b. Compare operations.

c. Determine the stability of a process.

d. Accept or reject a lot of material

2. When a control chart is used on a new process, capability can be assessed at which of the following

times?

a. Before the chart is first started

b. After the first ten points are plotted

c. When the plotted points hug the centerline

d. After the process is shown to be in control

3. Precision is best described as_______

a. A comparison to a known standard

b. The achievement of expected outgoing quality

c. The repeated consistency of results

d. The difference between an average measurement and the actual value

4. The overall ability of two or more operators to obtain consistent results repeatedly when measuring the

same set of parts and using the same measuring equipment is the definition of________

a. Repeatability

b. Precision

c. Reproducibility

d. Accuracy

5. Which of the following conditions must be met for a process to be in a state of statistical control?

a. Most of the product out by the process is in specification.

b. All subgroup averages and rang are within control limits.

c. All variation has been completely removed

d. Previously optimal process settings are used.

6. Which of the following measures of dispersion is equal to the sum of deviations from the mean squared

divided by the sample size?

a. Range

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b. Standard deviation

c. Variance

d. Mode

7. An X and R chart is used to_________

a. Indicate process variation

b. Specify design Limits

c. Interpret costs

d. Identify customer expectations

8. Which of the following is the most useful graphical tool for promoting and understanding the process

of capability?

a. A flowchart

b. A histogram

c. An affinity diagram

d. An Ishikawa diagram

9. The type of chart that presents the value of items in descending order is a________

a. Histogram

b. Pareto chart

c. U chart

d. Cusum chart

10. Measures of which of the following provide attributes data?

a. Temperature in degrees

b. Attendance at meetings

c. Weight in pounds

d. Length in metric units

11. The fraction of nonconforming products is plotted on which of the following types of control chart?

a. P chart

b. U chart

c. Np chart

d. C chart

12. A cause and effect diagram is a useful tool for doing which of the following?

a. Determining the flow of a process

b. Detecting shifts in a process

c. Developing theories based on symptoms

d. Arranging theories by defect count

13. Which of the following statistics would best describe the central tendency of a sample of data?

a. Mode

b. Mean

c. Standard deviation

d. Range

14. Which of the following type of tools or techniques is considered qualitative?

a. Histogram

b. Frequency distributions

c. Pareto chart

d. Process observations

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15. Out of the following which technique is most useful in narrowing issues and limiting discussion?

a. Brainstorming

b. Quality function deployment

c. Cause and effect analysis

d. Mutilating

16. In statistics, an estimation error that is persistent or systematic is called_________

a. Bias

b. Sensitivity

c. Random

d. Shift

17. For a normal distribution, two standard deviation on each side of the mean would include what

percentage of the total population_______

a. 47%

b. 68%

c. 95%

d. 99%

18. If a distribution is normal, u=50 s=15, what percentage of data will be less than 30?

a. 59.18%

b. 40.82%

c. 9.18%

d. 1.33%

19. A company is receiving an unusually high number of returns from various customers. The first step in

investigating the problem would be to_______

a. Check the inspection records

b. Establish the correlation of the returns to shipments

c. Brainstorm the potential causes

d. Classify the returns by type and degree of serious

20. Which of the following is the best definition of a flow chart?

a. A diagram used to structure ideas into useful categories

b. An illustration used to analyze variation in a process

c. A picture used to separate steps of a process in sequential order

d. An analytical tool used to clarify opposing aspects of a desired change

21. Which of the following activities would NOT contribute to the effective functioning of a team?

a. Eliminating unnecessary activities

b. Development team performance measures

c. Defining process in detail

d. Monitoring each member’s performance

22. What is the standard deviation of the population-10, 4, 16, 12, 8

a. 4.00

b. 4.47

c. 16.00

d. 20.00

23. Which of the following tools would be most appropriate for collecting data to study the symptoms of

a problem?

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IIBM Institute of Business Management

a. Check sheet

b. Flow diagram

c. Force-field analysis

d. Activity network diagram

24. Which of the following measures is a sufficient statistic for the parameter u?

a. Median

b. Mid-range

c. Mean

d. Mode

25. Positional, cyclical, and temporal variations are most commonly analyzed in_________

a. SPC charts

b. Multi-vari charts

c. Cause and effect diagram

d. Run charts

26. Which of the following describes the deming method for continuous improvement?

a. Cost of quality analysis

b. Process map

c. Tree Diagram

d. Plan-do-check-act cycle

27. In analysis of variance, which of the following distribution is the basis for determining whether the

variance estimates are all from the same population?

a. Chi square

b. Students

c. Normal

d. F

28. Which of the following statement best describes the set of value of a random variable?

a. It is finite.

b. It is an interval

c. It can be discrete or continuous.

d. It can be tracked by using control charts or scatter plots.

29. Which of the following is the best description of randomization?

a. A technique used to increase the precision of an experiment

b. A means of assuring representative sampling

c. The repetition of an observation or measurement

d. The relationship between two or more variables

30. When the order of items is not important, which of the following method is used to determine the

number of sets and subsets of items?

a. Combination

b. Permutation

c. Factorization

d. Simulation

31. Scatter diagrams are best described as_______

a. Histograms.

b. Correlation analysis.

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IIBM Institute of Business Management

c. Pareto analysis.

d. Ishikawa diagrams.

32. A __________ is created to determine customers of a specific process.

a. Pareto chart

b. Flow diagram

c. Cause and effect diagram

d. Scatter diagram

33. A production line uses signs at specific points on the line to indicate when components or raw

materials need to be replenished. This practice is an example of________

a. Kanban

b. Poka-yake

c. Checkpoints

d. Hoshin

34. Which of the following is a good tool for planning cycle time reduction and concurrent operations?

a. A timeline

b. A Pareto diagram

c. An X and R chart

d. A PERT chart

35. Attribute and variable data are best described as which of the following?

a. Counted values measured values

b. Counted values visual features

c. Measured values counted values

d. Visual features counted values

36. All of the following are common ways for people to react to conflict Except_________

a. Competing

b. Collaborating

c. Avoiding

d. Sabotaging

37. A quality manager has chosen to survey customer satisfaction by taking samples based on the

categories of frequency of use, categories of use, and demographic. This technique is known as_______

a. Random sampling

b. Data collection

c. Stratification

d. Customer classification

38. Which of the following actions is Not used to reduce process cycle time?

a. Analyzing current processes

b. Reducing queue times

c. Setting priorities

d. Implementing activity-based costing

39. A company’s accounts payable department is trying to reduce the time between receipt and payment

of invoices and has recently completed a flowchart. Which of the following tool is the next to be used by

them?

a. Fishbone diagram

b. Scatter diagram

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IIBM Institute of Business Management

c. Box and whisker plat

d. Histogram

40. In a manufacturing company, the machine shop is what kind of customer in relation to the human

resource department?

a. Intermediate

b. Hidden

c. External

d. Internal

Section B: Short Notes (30 Marks)

 This section consists of Short Notes.

 Answer all the questions.

 Each Short Note carries 6 marks.

1. Describe how QFD fits into the overall DFSS process.

2. What is interrelationship Digraph? Explain it with example.

3. Find the area under the standard normal curve between +1.50 standard deviations and +2.50

standard deviations.

4. Define terms related to One-Way ANOVA and interpret their results & data plots.

5. Define & describe the use of Rational Sub grouping ?

Section C: Applied Theory (30 Marks)

 This section consists of Long Questions.

 Answer all the questions.

 Each question carries 15 marks.

 Detailed information should from the part of your answer (Word limit 200 to 150 words).

1. Suppose you are cooking steak for 100 people, & the current approval rating is 75% acceptable.

You want to know the affect of different methods and approaches to see how the overall approval

or “yield” is affected. By using the Full Factorial method explain how the overall approval or

“yield” is affected.

2. Interpret Control Charts? Distinguish between common & special causes using rules for

determining stastical control.

END OF SECTION A

END OF SECTION B

END OF SECTION C

Examination paper of Six Sigma Management

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IIBM Institute of Business Management

IIBM Institute of Business Management

Examination Paper MM.100

Six Sigma Black Belt

Section A: Objective Type & Short Questions (40 Marks)

 This section consists of Multiple Choice questions.

 Answer all the questions.

 Part one questions carry 1 mark each & Part Two questions carry 2 marks each.

Part One:

Multiple Choices:

1. Calculate the estimated variance of the population from which the following values have been

randomly selected: 2.8 2.7 2.6 2.9 2.8 2.8 2.8

a. 095

b. 009

c. 088

d. 008

2. The mean, median and mode of a distribution have the same value. What can be said about the

distribution?

a. It is exponential

b. It is normal

c. It is uniform

d. None of the above

3. Approximately what percent of the data values are smaller than the mean?

a. 25%

b. 50%

c. 75%

d. None of above

4. A normal probability plot is used to________

a. Determine whether the distribution is normal

b. Plot Z value

c. Determine process capability

d. It percent out of specification

5. Nominal Group technique is used to_________

a. Help a group reach consensus

b. Generate a group on new ides

c. Provide a consistent stable group leadership

d. Provide a name for the group

6. An example of a project metric would be_______

a. The decrease in defect occurrence

b. The decrease in product cost

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IIBM Institute of Business Management

c. The decrease in cycle time

d. All the above

7. A correct statement about the relationship between the terms parameter and statistic is:

a. A population statistic is more accurate than a parameter

b. A sample parameter is used to estimate a statistic

c. A sample statistic is used to estimate a population parameter

d. Standard deviation calculation requires both statistics and parameters

8. A and B are events. P(A) = 0.80 and P(B) = 0.90:

a. Events A and B are disjoint or mutually exclusive

b. Events A and B are not disjoint or mutually exclusive

c. P (A and B) = 0

d. P(A and B) = 1.7

9. In a certain sampling situation, a=0, b=0.08. the power of the sampling plan this case is________

a. 0

b. 0.08

c. 1.00

d. 0.92

10. A newspaper article describes a high positive correlation between obesity and orange juice

consumption among six-year-old children’s. Parents who restrict the use of orange juice for their children

have:

a. Made a type I error

b. Made a type II error

c. Misunderstood margin of error

d. Confused correlation with causation

11. In an experimental design context, replications refer to________

a. Duplicating experimental result at another location

b. Repeating a test with the same factor levels

c. Obtaining the same or similar result from different factors

d. Repeating an experiment but using at least one different factor level

12. Find the upper control limit for a range chart if n=4 and the average range is 2.282

a. 2.282

b. 4.564

c. 5.208

d. 3.423

13. An x-bar control chart been established with control limits of 3.245 and 3.257, n=5. An engineer

collects the following sample and plots the average on the control chart:3.257, 3.256, 3.258, 3.259

a. The process is out of control

b. The process is not out of control

c. The engineer misused the control chart

d. The control limits are incorrect

14. TEIZ is an acronym which refers to________

a. A set of problem solving tools

b. An organization of quality professionals

c. An experiment using transitional results

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IIBM Institute of Business Management

d. A Russian general responsible for creative thinking

15. A robust design is one which.

a. Has high reliability

b. Has low maintenance frequency

c. Is simple to manufacture’

d. Is resistant to varying environmental condition

16. A frequent cause of system sub optimization is_________

a. Optimizing individual process

b. Failing to draw a system flow chart

c. Using data with outliers

d. Failing to consider the normal distribution

17. The x2 distribution is_______

a. Symmetric

b. Left skewed

c. Right skewed

d. Normal

18. An advantage of using standard deviation rather than range for measuring dispersion of a large sample

is that_______

a. Standard deviation has a simpler formula

b. Calculators have a standard deviation key but not a range Key

c. Standard deviation uses information from each measurement

d. Range calculation are not normally distributed

19. The team development stage characterized by expression of individual opinions and ideas often

without regard for team objectives is known as_______

a. Performing

b. Norming

c. Conflicting

d. Storming

20. SMED is an acronym for activity that________

a. Involve housekeeping in the work area

b. Makes mistake of a certain type impossible

c. Emphasizes the pull of the customer

d. Reduces set up the time

21. A principle advantage of fractional factorial experimental designs is_________

a. Reduced cost

b. Improved accuracy

c. Increased confounding

d. Higher confidence level

22. Dr. W Edwards Deming_______

a. Lectured in Japan after World War II

b. Was an author of several books in the US

c. Is considered an expert in the quality field

d. All of the above

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IIBM Institute of Business Management

PART TWO:

23. What percent of population falls below the lower specification limits?

a. 9.18%

b. 22.66%

c. 6.68%

d. 1.83%

24. Find the mean, median and mode of the following data set:9, 11, 12, 14, 18, 18, 18, 20, 23:

a. 15.5, 18, 18

b. 15, 14, 18

c. 15, 12, 18

d. 15.5, 16, 18

Use for problems 25-27:

A B Res.

25. Calculate the main effect of factor A:

a. 20

b. 25

c. 30

d. None of the above

26. Calculate the interaction effect:

a. 20

b. 25

c. 40

d. None of the above

27. If it is desirable to maximize the response R, the following levels should be used:

a. A+ and B+

b. A+ and Bc.

A- and B+

d. None of the above

Use for questions 28-30:

Here is an experimental design with result:

A B C

Responses

1

- - +

10 11 10

2 - + -

22 20 23

1 - - 20

2 - + 30

3 + - 40

4 + + 50

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IIBM Institute of Business Management

3 + + +

34 36 37

4 + - -

26 25 25

28. This experimental design is:

a. Full factorial

b. Half factorial

c. Quarter factorial

d. None of the above

29. The number of factors, levels and replications:

a. 3, 3, 3

b. 3, 2, 2

c. 3, 2, 3

d. None of the above

30. An indication of the experimental error is available because the design has:

a. Multiple replications

b. Multiple levels

c. Multiple factors

d. None of the above

31. The average number of defects is 21.6. Find the upper control limit for the C-chart.

a. 26.4

b. 24.6

c. 26.2

d. None of the above

Section B: Short Notes (30 Marks)

 This section consists of Short Notes.

 Answer all the questions.

 Each Short Note carries 6 marks.

1. Briefly define Affinity Diagram with an example.

2. By using imaginary figures draw a Run Chart.

3. Consider the following data & develop a normal probability graph paper & normal probability

plot:

7.9, 9.7, 10.6, 12.7, 12.8, 18.1, 21.2, 33.0, 43.5, 51.1, 81.4, 93.1

4. A painting process produces coatings with a thickness of 0.0005 & a standard deviation of

0.00002. What should the tolerance limits be for this process? Briefly explain Tolerance design?

5. What is Pugh matrix? State the steps which are used in Pugh matrix.

END OF SECTION A

Examination paper of Six Sigma Management

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IIBM Institute of Business Management

Section C: Applied Theory (30 Marks)

 This section consists of Long Questions.

 Answer all the questions.

 Each question carries 15 marks.

 Detailed information should from the part of your answer (Word limit 200 to 150 words).

1. Define & describe the purpose of root cause analysis? Recognize the issues involved in

identifying a root cause analysis and list various tools for resolving chronic problem?

2. Describe the purpose & elements of FMEA including risk priority number (RPN), and evaluate

FMEA results for processes, products, & services. Distinguish between design FMEA (DFMEA)

& process FMEA (PFMEA) and interpret results from each?

S-2-300813

END OF SECTION B

END OF SECTION C

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 DEVI AHILYA VISHWAVIDYALAYA DAVV BBA EXAM ANSWER SHEETS PROVIDED WHATAPP 91 9924764558

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CONTACT

DR. PRASANTH BE BBA MBA PH.D. MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com

ACCOMMODATION MANAGEMENT  IV [Max. Marks 70 Special Note : Word limit for answer of each question is 250 to 300 words. Note : Question no. 1 and 2 are compulsory. Attempt any four more questions. 1. Explain the concept of Heritage Hotels in India. Also explain with example the Heritage Hotels in India. Heritage Hotel is most profitable venture in Hotel Industry. Comment with justified reason. OR Write short note on the following : (a) Time Share Hotel (b) Floaters (c) Apartels. 2. The International Chain of Hotels are spreading there business by Franchising. Comment in support of your above statement. Also give example of International Group of Hotels which practice Franchising as an activity to expand business. 3. Write short note on any two of the following : (a) Health Clubs. (b) Amusement and Entertainment Management. (c) Adventure Sports. 4. Discuss the factors to be considered essential for planning and designing a Commercial Hotel. 5. Human Resource Planning for Accommodation Operation is different from usual HRP. Comment. Also explain what qualities are looked after in the people who are employed in Hospitality Industry. 6. Management of Non-Commercial Accommodation Services like Guest Houses, Government Circuit Houses and Clubs are different from Commercial Hotel. Explain the difference and also suggest the technique for improvement in management of non-commercial accommodation. 7. Plan Hotel Facilities : (a) Modern trend and norms in general facility planning. (b) Planning facilities as per specific guests requirements. 8. Write short note on any two of the following : (a) Occupancy Forecasting. (b) Basis of Tariff Charges. (c) Front Office Procedures. 

HOTEL PROJECT MANAGEMENT [Max. Marks 90 Special Note : Word limit for answer of each question is 250 to 300 words. Note : Attempt any six questions. All questions carry equal marks. 1. Deciding a particular customer segment, frame a Hotel Project discussing its size, place and marketing operations. 2. Frame a financial plan for a hypothetical Hotel project taking reasonable assumptions. 3. Discuss the various possible layouts for Hotels. 4. How is Manpower Planning done for a Hotel Project ? Discuss various human aspects involved. 5. What all legal aspects are involved in Hotel Projects ? 6. “Materials Management and Inventory Management is an inherent part of Hotel Project Management .” Justify. 7. Write a note on all the activities and their sequence during a Hotel Project. 8. Write short notes on any two of the following : (a) Interior Designing. (b) Equipment Analysis and Procurement. (c) Determining the type of Restaurant.

TOTAL QUALITY MANAGEMENT [Max. Marks 80 [Min. Marks 32 Special Note : Word limit for answer of each question is 250 to 300 words. Note : Attempt any four questions (out of seven questions) from Section A. Each question of Section A carries 15 marks. Section B carries 20 marks. (A Case Compulsory) Section A 1. (a) “Evolution of Quality was just need for excellence, concern for people and competition.” Explain the statement with history of Quality Management. (b) What are the Eight Building Blocks of TQM ? 2. (a) What are the salient points of Crosby’s Theory on Quality Management ? (b) Explain each point of Malcolm Baldrige National Quality Award. 3. (a) “Bench Marking is one of the tool of TQM.” Explain it through elements and process of Benchmarking. (b) What is Taguchi Quality Loss Function ? How it is used in Industry ? 4. (a) Explain the concept and need of Total Productive Maintenance (TPM). (b) Explain the features of Six Sigma. How it is implemented ? 5. (a) What are the seven tools of Quality ? How it is applied in practical ? (b) What are points of Process Capability ? How it is applied in a particular process ? Explain. 6. Compare and contrast ISO-9000-2000 and ISO-14000 Quality Management Systems. 7. (a) What are Control Charts ? Explain. (b) Explain the Concept of Kaizen. Section B

BBA-602 : RETAIL MANAGEMENT [Max. Marks 80 [Min. Marks 32 Special Note : Word limit for answer of each question is 250 to 300 words. Note : Attempt any four questions (out of seven questions) from Section A. Each question of Section A carries 15 marks. Section B carries 20 marks. (A Case Compulsory) Section A 1. What are the characteristics of Retail Business ? Also explain various retail formats in Indian context. 2. Define various Pricing Strategies adopted by retailers to attract customers. 3. What are various Marketing Strategies applied by Retailers ? 4. Explain need and impact of Foreign Direct Investment in Indian Retail Sector. 5. How could waste reduction be managed in Retail Stores ? 6. How would you fit service quality gap model in Retail Sector ? Suggest suitable solutions to reduce the gaps. 7. Write short notes on any three of the following : (a) Social Responsibility of Retailers. (b) Role of IT in Retail. (c) Open-to-Buy System. (d) Significance of Branding in Retail. Section B BOBCAT Bobcat India Limited revolutionized footwear selling in India. The company hit upon the idea of reaching customers through exclusive retail stores way back in 1932 and set up its own outlets, which numbered around 1,200. It was no mean task setting up such a large network of retail outlets, especially when 90% of them were owned and operated by the company, the rest being dealer-owned and operated. This chain store format identity has been a strong differentiating factor in the Indian retail sector, being the first of its kind. Combined with the high quality of the footwear, the brand soon had top-of-the-mind recall and stayed there for many years. Until a few years ago, the name `Bobcat’ was synonymous with organized retailing in India, the only one of its kind. The Chain Store Format The Bobcat chain store format had its own credo  a signature store-design with exclusive signage and windows in order to facilitate easy association in the minds of the Indian consumers. At present there are only two major categories of stores in the Bobcat Chain Store format : (a) Bobcat Family Stores (b) Bobcat Bazaar. (a) Bobcat Family Stores These are sub-divided into two formats again, based on the size of the stores. They are : (i) Super Stores, generally more than 5,000 sq. ft. catering to customers in the footwear category. (ii) High-street stores that are anywhere between 500 and 1,500 sq.ft., found in busy shopping areas. 2 K-823 (b) Bobcat Bazaar Bobcat Bazaar stores sell the company’s planned economy product lines and marked-down merchandise round the year. Known as R-Pair stores, their performance depends heavily upon the availability of marked-down merchandise. Such markdowns are done on products that have suffered quality accidents, are shop-soiled, lines that are closed-out etc. Recent Format Developments New retail formats have begun to supersede conventional ones. Independent big-box multi-brand department stores have started selling footwear as a category, especially in metros and cities. Malls are another new shopping format that is growing rapidly in the metros. Many upcoming footwear retailers are obtaining space inside the malls as mall partners to take advantage of the ready footfalls available. For the existing independent Bobcat stores it is expensive now to run campaigns and promotions to attain the required footfalls and expected conversions. Merchandising in Bobcat Family Stores The exclusivity of the `Bobcat’ brand to the Bobcat retail stores was the differentiating factor for customers until recently. However, a few years ago the company decided to sell Bobcat branded goods through its channel sales wing called Bobcat Wholesale. Hitherto, the wholesale channel had a different brand for itself called BSC. This wholesale channel supplies merchandise to footwear retailers across India through its authorized distributors. The brand Bobcat has now been extended to this wholesale channel too, which means that Bobcat branded goods are available in every other local footwear store. The exclusivity of the brand to its own outlets has come to an end. And, even as the sales of the wholesale division remain stagnant, what compelling reasons can a customer have to visit a Bobcat Store now ? A peculiar feature of the Bobcat Store was its odd price points : Rs 149.95, 199.95, etc. Merchandise Presentation and Visual Merchandising Bobcat pioneered the concept of show window displays in India with a style that was unique to the company. It was professionally managed, with an exclusive team handling the motif and the design. Every month the direction to decorate the show windows were given by a mailer prepared by special decorators. Sales personnel in each store were trained to be window decorations too. Recently, these windows had to be done away with because the company thought that they should follow the contemporary practice of free-access retailing, where all merchandise pairs are displayed in open shelves to enable customers to help themselves. Remember, in India footwear is always tried on a footstool and bought after considerable service extended by the salesperson personally. Free-access retailing may work when there is adequate space inside a store to move around. The effect of such `pigeon-hole’ free access is that they give an impression that they are Bobcat’s R-Pair outlets. What can now entice the customer into entering a Bobcat store ? Customer Service Though Bobcat faces tough manpower challenges (the store sales personnel and managers have separate labour unions), the sales personnel who are on its permanent rolls are trained in selling footwear. However, there is a large proportion of untrained temporary hand. Further, salespersons do not wear any uniform and hence customers can hardly identify them. There is as yet no loyalty programme to create customer stickness to any store or the brand, and most of the stores are not connected by a central information system or ERP (enterprise-wide resource planning) as the organization has its limitations when it comes to investing in such initiatives. Organized retail companies need to have non-negotiable standards of customer service or they will lose customers to its competitors. The company is now losing its market share despite its strong position in categories like men’s footwear, children’s uniform shoes, etc. However, the number of stores it has around the country is around the same, at 1,200. The company now needs to put together a plan for both its survival and growth on a war footing. The top management is revisiting its strategies in every functional area to turn the company around. 3 K-823 Questions for Discussion : 1. What store format mix would you recommend for the company ? 2. Did the company do the right thing by extending the in-store brand to the wholesale channel ? What should it do now ? 3. What course should the company take in the area of merchandise presentation and visual merchandising ? 4. What would you recommend to improve customer service in the stores ? 5. Should the organization plan a customer loyalty programme now ? 6. Can Bobcat recover its leadership status in retailing in terms of its differentiating capabilities ? Discuss.

STRATEGIC MANAGEMENT [Max. Marks 80 [Min. Marks 32 Special Note : Word limit for answer of each question is 250 to 300 words. Note : Attempt any four questions (out of seven questions) from Section A. Each question of Section A carries 15 marks. Section B carries 20 marks. (A Case Compulsory) Section A 1. Explain process of Strategic Management along with its merits and demerits. 2. Discuss relevance of vision, mission, objectives, goals and strategy in a Business Organisation. 3. Explain relevance and differences of ETOP and SWOT. 4. Explain Planned and Unplanned Changes with suitable examples. 5. Discuss relevance of creativity and innovation in building Learning Organisation. 6. Discuss the five generic competitive strategy with suitable examples. 7. Define criteria for evaluation and strategic control process.

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DR. PRASANTH BE BBA MBA PH.D. MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com

SUPPLY CHAIN MANAGEMENT AND DOCUMENTATION [Max. Marks 85 Special Note : Word limit for answer of each question is 250 to 300 words. Note : Attempt any eight questions from Section A. Each question carries 10 marks. Section B contains one question of 5 marks. Section A 1. Discuss the objectives of Supply Chain and explain how supply chain decisions affect the success of a firm taking an example. 2. Explain the different models of inventory used by warehouse to effectively stock the goods. Also explain the role of Cycle Inventory. 3. Discuss the role of information in the Supply Chain and how it supports Supply Chain Planning and Execution ? 4. “Material does not add value but adds to the cost.” Critically discuss the statement. 5. What are the factors which influence tailor transportation ? Also do comment on role of GPRS and e-tracking in transportation. 6. How packaging plays role in International Supply Chain Management ? 7. How optimum level of product availability can be achieved by a firm ? What are the advantages and disadvantages of the various measures of product availability ? 8. Suggest sourcing system in detail for a Pickle Manufacturing Company. 9. Describe in detail how logistics can be useful in gaining competitive advantage. 10. Discuss with examples : (a) Break Bulk Warehouse (b) Cross Docking. Section B 11. Explain with an example how supply chain can reduce safety inventory level without hurting product availability ? 

BUSINESS ETHICS AND ENVIRONMENT

 [Max. Marks 85 Special Note : Word limit for answer of each question is 250 to 300 words. Note : Attempt any four questions from Section A and Section B is compulsory. Section A 1. What do you mean by Business Environment ? Distinguish between Micro and Macro Environment of Business. 2. Define Globalization. What are the factors influencing globalization ? 3. Explain the importance and criticisms of Foreign Investment in developing countries. 4. What is ethical environment of Business ? Explain the factors influencing the ethical environment of a Business. 5. What do you mean by Corporate Governance ? Discus the importance of Corporate Governance for the development of a business. 6. Define Forex Reserve Management. Discuss its impact on business with particular reference to India. Section B 7. Analyse the following case and answer the questions given at the end :

CORPORATE GOVERNANCE AND GLOBAL BUSINESS ENVIRONMENT [Max. Marks 80 Special Note : Word limit for answer of each question is 250 to 300 words. Note : Attempt any eight questions. All questions carry equal marks. 1. Discuss Stakeholder Theory of Corporate Governance. 2. Criticise Hecksher-Ohlin Theory. 3. What are the key drivers of International Trade looking to the recent trade ? 4. What financial and marketing implications international marketer can draw looking to the Balance of Payment of host nation ? 5. Explain non-tariff barriers of International Trade. 6. Elucidate in detail about the importance of legal environment in International Trade. 7. Explain with example : (a) Mergers. (b) Strategic Alliance. (c) Acquisition. (d) Trunkey Operations. 8. Discuss any four methods of payment applicable in International Trade. 9. How FOI plays role in International Trade ? Also tell the factors affecting FDI. 10. How cultural differences play role in International Trade and how international marketer can have advantage and disadvantage of it ? 11. Explain Transfer Pricing and its types used in International Trade.

STRATEGIC MANAGEMENT [Max. Marks 80 Special Note : Word limit for answer of each question is 250 to 300 words. Note : Attempt any four questions from Section A. All questions in this section carries 15 marks each. Section B is compulsory and carries 20 marks. Section A 1. Explain the process of Strategic Management. Also elaborate on importance of SBU Organisation. 2. Explain the understanding of Business from Strategic Management point of view. Also relate the objectives and mission of an organization while highlighting the importance of each. 3. What do you understand by Strategy Alternatives ? Elaborate on related and unrelated alternatives, active and passive alternatives and horizontal and vertical alternatives. 4. Explain the application of GE Matrix from Strategic choice point of view. Elaborate on use of Strategic Gap Analysis. 5. Explain the concept of Strategic Implementation. How different aspects related with leadership and behavioural are connected with implementation. Discuss. 6. Explain the importance of Strategy evaluation and control and its process. 7. Write briefly on following : (a) SWOT and ETOP (b) Choice of Business Strategy. Section B 8. Analyse the case and answer the questions given at the end : DELL CHANGES ITS ORGANIZATIONAL CULTURE After spending years as the leader in the personal computer (PC) market. Dell has been overtaken by rival Hewlett-Packard. In an effort to regain the top spot, Dell is delving into the retail market and changing its organizational culture. Since its beginning in the 1980s, Dell has succeeded by selling PCs and computerrelated products via direct sales (over the phone or Internet). At the same time that Dell was having such success, many other computer companies sold their products through retail outlets. Dell’s direct sales technique allowed it to retain a cost advantage over competitors and pushed it into the number-one slot. However, almost two decades later, companies that sell their products via a combination of retail and direct sales are gaining ground. Hewlett-Packard now holds the number-one slot, and Acer, Toshiba, Apple, and others are picking up the pace. With Dell’s market share dropping to 15 percent, things need to change. To alter the organizational culture to be more responsive to changes in the market, Dell’s founder, Michael Dell, came back to lead the company during this cultural transformation, replacing former CEO Kevin Rollins. Michael Dell was responsible for creating the company’s model of building computers to order at a time when the concept was innovative. Analysts feel that he is just the person to lead the company in a new organizational culture focused on innovation. Dell had become complacent focusing on production, efficiency, and online one-to-one customer contacts. Perhaps the most notable change is Dell’s new affiliation with Wal-Mart stores. Although Dell has forayed into the retail sector before, selling in both Costco and CompUSA, its partnership with Wal-Mart takes a very different approach. Wal-Mart is considered by many to be the largest and most popular retail chain around. It is estimated that some 90 percent of Americans shop at Wal-Mart. Because of Wal-Mart’s popularity, Dell will now be approaching retail on a huge scale and with more fanfare than its previous forays warranted. This will change the marketing, organization, and to some extent overall production and operations. 2 K-510 If, in fact, Dell plans to continue its expansion into retail, the marriage of Dell and Wal-Mart should provide Dell with much needed experience. To sell retail, the company must make changes in areas such as supply chain and advertising. The overall culture of the organization will change to become more mass marketing focused, depending on retailers such as Wal-Mart to be a vital link in its marketing organization. These changes will also provide Dell with valuable information as it continues to expand to other retailers and change its culture to become more competitive ? Discussion Questions : 1. Why was Michael Dell the ideal person to change the corporate culture to become more competitive? 2. Why does changing the marketing and operations of a company require a new organizational culture ? 3. How will the information gained from retail partners such as Wal-Mart and Costco change the corporate culture at Dell ? 

INDUSTRIAL RELATIONS AND LABOUR LAW [Max. Marks 80 Special Note : Word limit for answer of each question is 250 to 300 words. Note : The paper has two Sections A and B. Section A, worth 48 marks will comprise of five theory questions out of which a student will be required to attempt any three questions. All questions carry equal marks i.e. 16 marks each. Section B, worth 32 marks will contain one or more cases. Section A 1. Throw light on the current Industrial Relations scenario in contrast with the before Independence Period. 2. What is the role of trade union in Industrial Relations ? What is the impact of economic reforms on Trade Union ? 3. “Industrial Disputes can not be avoided in Industrial Units.” Discuss. Also suggest different methods of settlement machinery for disputes. 4. Highlight the procedure for giving layoff and retrenchment to the employees. Also briefly discuss penalties for illegal layoff and retrenchment under I. D. Act, 1947. 5. Define the term Workers’ Participation in Management (WPIM). What are the merits of applying WPIM in an organization for improving quality of work life and industrial relations. 

COMPARATIVE INTERNATIONAL MANAGEMENT [Max. Marks: 85 Special Note% World limit for answer of each question is 250 to 300 words. Note% Attempt any seven questions from section A carrying 10 marks. Section B is compulsory carrying 15 marks. Section A 1. Explain the role of comparative management in economic growth of a country. 2- Comment on the corporate governance initiatives for management effectiveness in the organization. 3- Elucidate the cultural and environmental factors in the international management context. 4- Explain the role intercultural communication and its influence on culture in International management. 5- Mention the critical factors of foreign exchange financial decision. 6- Write short notes on :- (Any 2) ¼a) Technology Transfer Agreements ¼b) Skills for cross cultural industries ¼c) Koontz model of comparative management 7- Explain the various dimensions of international strategic planning. 8- Write a note on role of banks in managing foreign customers. 

INTERNATIONAL BUSINESS LAW [Max. Marks: 85 Special Note% World limit for answer of each question is 250 to 300 words. Note% Attempt any four questions from section A. Section B is compulsory and carry equal marks. Section A 1. Explain the meaning of ‘Authorized person under FEMA Act. What are the powers of ‘Authorized person’? 2- Explain in brief : ¼a) Difference between trademark and Patent ¼b) Registration procedure under copyright act. 3- Explain the features of marine-insurance contract. Explain its clauses. 4- Explain in brief : ¼a) Letter of credit ¼b) Geneva code of conduct 5- Explain any three offences and its penalties under IT act 2000. 6- Write short notes (any 2) ¼a) Features of Foreign trade development and regulation act 1992 ¼b) Arbitration Agreement ¼c) Avoidance of double taxation ¼d) Formalities for Transfer of Technology Section B Case study A ‘minor’ fraudulently represented to a moneylender that he was of full age and obtained a loan of Rs. 5000/-. Has the moneylender got any right of action against the minor for the money lent or for damages for fraudulent misrepresentation? Discuss. 

IIBM MBA PHARMACEUTICAL MANAGEMENT EXAM ANSWER PROVIDED WHATSAPP 91 9924764558

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DR. PRASANTH BE BBA MBA PH.D. MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com

Examination Paper of Pharmaceuticals Management

IIBM Institute of Business Management

Examination Paper

MM.100

Pharmaceuticals Management

Section A: Objective Type & Short Questions (30 Marks)

 This section consists of Multiple Choices & Short Notes type questions. 



 Answer all the questions. 



 Part one carries 1 mark each & Part Two carries 5 marks each. 

Part One:

Multiple Choices:

1. Which of the following not the principle of co-„ordination?

a. Principle of early beginning

b. Principle of continuity

c. Principle of time

d. Principle of reciprocity

2. Oral communication includes__________

a. Lecture

b. Poster

c. Union publication

d. Complaint procedure

3. Enthusiasm, co-operation, tact and skillful handling come under:

a. Intellectual quality

b. Character quality

c. Psychological quality

d. Physical quality

4. Which of the following is the demerit of formal communication?

a) Decay in accuracy

b) Time consuming

c) It is temporary

d) Fairly unsuitable

5. Arrange the following into decision making process__________

i. Conception

ii. Investigation

iii. Perception

iv. Selection

a) iv,i,iii, ii

b) ii,iv iii,i

c) iv,i,iii,ii

d) iii,i,ii, iv

IIBM Institute of Business Management

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Examination Paper of Pharmaceuticals Management

6. FIFO stands for _______________.

7. Record of all item of material and good in the store is recorded in which document?

a) Store ledger

b) Bin card

c) Both a & b

d) None of these

8. VED stands for ______________.

9. In the EOQ formula „C‟ is stand for-

a) Annual consumption

b) Cost of per unit of material

c) Cost per order

d) Storage

10. WTO stands for ________________.

Part Two:

1. What is questionnaire? Explain rules or guidelines for designing a good questionnaire?

2. Define drug store management? „Discuss the arrangements of drugs in drug store?

3. Name the various steps in the selection of a pharmacist?

4. What are the purposes of training given to a pharmacist?

END OF SECTION A

Section B: Caselets (40 Marks)

 This section consists of Caselets. 



 Answer all the questions. 



 Each case let carries 20 marks. 



 Detailed information should form the part of your answer (Word limit 150 to 200 words). 

Caselet 1

For the Indian Pharmaceutical Industry which has been presenting a robust performance during the last few years, the internet is a powerful tool. Web-enabling leverages the pharmaceutical firm‟s existing investment in IT. Customer Relationship Management (CRM) and Sales Force Automation (SFA) systems can be web-enabled to cost of operations, and on being effectively used, they establish immense customer goodwill.

The speed, efficiency and accuracy of a pharmaceutical company‟s response to customer queries determine the extent of customer satisfaction. About 200,000 doctors will be contacted by a typical mid-sized pharmaceutical company, on a regular basis. It is crucial that these doctors are kept

IIBM Institute of Business Management

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Examination Paper of Pharmaceuticals Management

abreast of product profiles, new introductions etc. also, during the sales calls made by the field force queries are raised by the doctors, which need to be addressed quickly. By possessing a comprehensive medical information system, pharmaceutical companies are able to fulfill their obligations, and, at the same time, lend support to their sales and business partnerships. A good CRM system incorporates features that enable information sharing and identification of trends in the market; at the same time, to accommodate growth, it runs on a scalable platform.

A good CRM system is characterized by two key functions:

 Tracking, organizing, prioritizing and responding to callers; and 



 Automating quick responses through letter, fax or e-mail, using a comprehensive data base. 

The CRM system can help make urgent responses. It will also have a system of archiving call sheets.

The benefits of a good CRM system include a facility to handle a large number of medical queries efficiently; tracking customer correspondence/exchanges; retrieval and dissemination of the latest medical information; providing statistical reports for the re-assessment of product profiles. A good CRM system arms the company with tools to implement measures for continuous improvement of its business practices; it can be an invaluable aid to the sales force in understanding the interests and concerns of medical practitioners.

Sales Force Automation (SFA) is a system related to the CRM system. This tool enables a company to manage a vast field force. The system provides up-tp-date information to the field force while they are on the field; it provides the managers with a facility to keep a tab on field force‟s activities and ensure they are going according to plan.

A good SFA system incorporates features as under:

 Customer Profiles: by maintain up-to-date, detailed profiles of customers, the system facilitates tailoring of the profile base for different needs; a comprehensive view on important business opportunities and important customer is generated. 



 Hospital Profiles: detailed hospital profiles maintained helps in implementing focused strategies. 



 Activity Planning: planning of activities by each member of the team is made possible by the SFA system. 



 Promotion/Call Reporting: detailed information about a particular promotion, and each sales call are made available; this enables planning of future activities that focus on specific needs. 



 Online Submission: daily call reports can be submitted online; call coverage reports and record of monthly target achievement can be maintained. 



 Analysis and Reports: to facilitate better planning and strategy formulation, the SFA system provides detailed statistics. 

If the traditional applications and expertise of pharmaceuticals companies can be leveraged by web-enabling them, then major benefits are in store for them. The companies can cut down costs, manage their markets with more effectiveness and also enter into new markets.

The following are some of the CRM/SFA systems available in the market for the pharmaceutical industry.

 FFReporting of Sarjen Systems Pvt. Limited. 

IIBM Institute of Business Management

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Examination Paper of Pharmaceuticals Management

 CrissSmart SFA/CRM of Oasis Infotech. 



 Online MR Reporting Software of Marg Compusoft Pvt. Limited. 

 Siebel-based Pharma CRM Implementation Kit of Infosys Technologies Limited. 

 Pharma Pulse of TVS-electronics. 

 Talisma of Talisma Corporation. 

Questions:

1. Briefly explain the concept of CRM & SFA systems.

2. State the features of a Good SFA system.

3. Write down some CRM/SFA systems which are available in the market for Pharmaceutical Industry.

4. What are the benefits of CRM system?

Caselet 2

Glenmark Pharmaceuticals uses a web-based tool for sales force automation. The tool helps the sales force in adding new contacts/accounts, deciding upon the appointments, planning their tour, planning joint working, submitting their daily call reports, submitting request for samples, promotional articles etc. based on the actual travel, the tool also calculates te necessary expenses to be paid to the field sales officer. The sample management and promo management modules in the software keep a complete track of samples and promo items. Te entire leave management system for the field sales staff runs on this software. A part from this , the software has multiple reports such as missed call report; call average report etc, which helps the entire sales force hierarchy to be aware of the developments and act accordingly.

Majority of the above features and functionalities are available on the mobile interface of the application as well. The software also allows the field force to capture certain important remarks made by the customers. The CRM team/medical support team can make the best utilization of this data gathered. These systems are upgraded on need basis. A part from the pure technical upgrades, the enrichment of features and functionalities happen through the new version release of the software. The sales force automation tool is in the form of portal. The portal has two components in terms of content- static Content and Dynamic content. The transactions happen on the dynamic content side, where as any circulars, information to the field force, product related FAQs, Manuals etc. are posted on the static content side. This section really helps to keep in touch with the field force. Any product information which would help the field force to upgrade the product knowledge can be posted here. Going forward, Glenmark also plans to have CBT (computer based training) programs to be made online on this portal. These types of interactive programs will really boost the process of learning for the field sales force.

Questions:

1. Explain the working of a Glenmark Pharmaceuticals.

2. State the features of a Glenmark Pharmaceuticals.

END OF SECTION B

IIBM Institute of Business Management

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Examination Paper of Pharmaceuticals Management

Section C: Applied Theory (30 Marks)

 This section consists of Applied Theory Questions. 



 Answer all the questions. 



 Each question carries 15 marks. 



 Detailed information should from the part of your answer (Word limit 200 to 250 words). 





1. Define „Pharmaceutical marketing? Explain objectives and importance of pharmaceutical marketing.

2. Define „Advertising‟? What are the advantages and disadvantages of advertising in pharmaceutical marketing?

END OF SECTION C

IIBM Institute of Business Management

5

Examination Paper of Pharmaceuticals Management

IIBM Institute of Business Management

Examination Paper

MM.100

Pharmaceutical Marketing

Section A: Objective Type & Short Questions (30 Marks)

 This section consists of Multiple Choice & Short Notes type questions. 



 Answer all the questions. 



 Part one carries 1 mark each & Part Two carries 5 marks each. 

Part One:

Multiple Choices:

1. What is the full form of „IPR‟?

a. Intellectual property rights

b. Intellectual patent rights

c. Intellectual process rights

d. International patent rights

2. The environment that poses tremendous opportunities for new products and services to alert marketer is an _________ environment.

a. Ecological

b. Social

c. Technological

d. Competitive

3. Arrange these market opportunities analysis step by step:

i. Evaluate new opportunities in new segments

ii. Build on your strengths

iii. Explore new market opportunities

iv. Analyze your existing markets

a. i, ii,iii,iv

b. ii,iv,i,iii

c. iv,ii,iii,i

d. i,iii,iv,ii

4. Marketing virtually the same product with two or more brand names is a strategy of_______

a. Family brand strategy

b. Multiple brand strategy

c. Individual brand

d. Private brand

5. The pricing that deals with the judgmental or subjective elements of pricing is a_______

a. Cost-based pricing

b. Petition based pricing

c. Market based pricing

d. Demand based pricing

IIBM Institute of Business Management

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Examination Paper of Pharmaceuticals Management

6. Which of the following is not a member of distribution channel?

a. The Physician

b. Manufacturer

c. The consumer

d. The transporter

7. Arrange the communication process in order:

i. Medium

ii. Feedback

iii. Sender

iv. Receiver

v. Message

a) ii,iv,v,i,iii

b) iii,v,i,iv,ii

c) iv,i,iii,v,ii

d) iii,ii,iv,i,v

8. The strategy used to create a demand for a product within a channel of distribution by appealing directly to the consumer is a________

a. Pull strategy

b. Push strategy

c. Combination strategy

d. Competitive strategy

9. Toward off a competitive threat or to create an entry barrier, some companies from different power blocks may temporarily form a cartel it is termed as_______

a. Franchise power

b. Integration power

c. Niche power

d. Coalition power

10. Which of the following „R‟ is not a part of good management principle?

a. Resources

b. Recognition

c. Responsibility

d. Reward

Part Two:

1. Define the term “Marketing Communication”.

2. Differentiate between „Product Item‟ and „Product Mix‟.

3. Differentiate between „Cost Based Pricing‟ and „Demand Based Pricing‟.

4. Describe “Boston Matrix”.

END OF SECTION A

IIBM Institute of Business Management

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Examination Paper of Pharmaceuticals Management

Section B: Caselets (40 Marks)

 This section consists of Caselets. 



 Answer all the questions. 



 Each Caselet carries 20 marks. 



 Detailed information should form the part of your answer (Word limit 150 to 200 words). 

Caselet 1

Apex Pharma was one of the Leading pharmaceutical companies with manufacturing plants spread all over India. Initially, the company produced bulk drugs as the activities expanded, the company started manufacturing formulation. The first formulation plant was commissioned at Mandideep, Bhopal in 1983. This plant was exclusively catering to the overseas demand in various countries including the US, South Africa, Australia and the UK.

The demand in pharmaceutical industry is not evenly spread throughout the year. There were months when the company operated at 50%-60% of its capacity, and there were months, when the company operated at more than the installed capacity, by working in three shifts. As a general policy, the company used to operate in two shifts. Third shift operations were only resorted to during the peak season. Apex, during the period of increased demand, outsourced medicines from other companies. However, the medicines which were outsourced were sold only in the domestic market. The company applied high quality standards so as to fulfill the requirements of the export market.

Apex‟s Bhopal plant was run as a cost center and hence, it was not supposed to report any profits or losses. The plant had three different blocks manufacturing different sets of medicines (capsules, tablets, dry syrups and injectibles).

 Semi Synthetic Penicillin Block (SSP): This block produced antibiotics and drugs based on amoxicillin and ampicillin. 



 General Block: This block produced non-antibiotic drugs. 

 C Block: this block produced third generation drugs based on cephalosporins. 

Apex had a policy to invest in a new plant and machinery only when the company foresaw a sustainable long-term demand for a particular product. For its cephalosporin‟s range of drugs, the company was experiencing an increased demand from the US markets for the past 2-3 years.

The total investment in C-block was Rs. 130 million with the existing capacity of 396 million capsules per year. The demand had increased to 590 million capsules per year. To meet the increased demand, the management decided to purchase a new machine. The finance manager, Ramesh Swami, had two options (Refer Table 1)

Table 1

Particulars

Machinery I

Machinery II

Brand

Zenhasi (USA)

Zentacs (Second hand machinery

from Russia)

Capacity

300 million capsules

per

200 million capsules per annum

annum

Cost of Machine

Rs. 11.70 million

Rs. 9.50 million

Life of Machine

5 years

3 years

IIBM Institute of Business Management

8

Examination Paper of Pharmaceuticals Management

Residual Value

Nil

Nil

Sales revenue (for 18 tones

material

equivalent to

194

Rs. 575.4 million

Rs. 575.4 million

million capsules per annum)

Material Cost

90.68% of sales price

90.68% of sales price

Cost

of

repair

and

overhauling

before

Nil

1.30 million

commissioning

Total indirect costs (65%

Rs. 26.91 million

Rs. 30.00 million

fixed, 35% variable)

Depreciation as per income

Rs. 0.87 million

Rs. 0.80 million

tax provisions

Total Interest (Non cash)

Rs. 7.86 million

Rs. 7.79 million

Income Tax rate (company

is paying

only

MAT

@

Rs. 2.08 million

Rs. 1.74 million

11.5% of EBT)

Investment

requirement

in

working

capital

for

operations

of the

machine

Rs. 63.39 million

Rs. 63.39 million

(assumed to be released at

the end of life of the

machine)

The interest was calculated on the aggregate of receivables, investment and the working capital. The details for the proportion of different components of total interest are given in Table.

Table 2

Particulars

Machinery I

Machinery II

Receivables

Rs. 0.06 million

Rs. 0.06 million

Investment (10.4% of the cost

Rs. 1.21 million

Rs. 1.12 million

of Machine)

Working Capital (10.4% of the

Rs. 6.59 million

Rs. 6.59 million

investment

required

in

working capital)

Total interest

Rs. 7.86 million

Rs. 7.79 million

After calculating the cash flows for the alternatives available, Swami decided to buy the first machinery. The policy of the company was to discount the cash flows at the rate of 16.59%. the order for the machine was placed in March 2000, with a delivery period of four months, and the machine was to be made operational in July, 2000. The payment was released in April, 2000. The machine was received in July, 2000 but it could not be made operational due to damage in the transit. The machine was finally made operational in October, 2000. The company was not able to generate revenues from that machine for the same period. Apex finalized its balance sheet on June, 30 every year.

Questions:

IIBM Institute of Business Management

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Examination Paper of Pharmaceuticals Management

1. If you were in the position of Swami, what would have been your decision? Justify keeping qualitative aspects in mind.

2. Discuss the various other factors, which should be considered while making capital investment decision.

Caselet 2

Geetha Laboratories Pvt. Ltd. Was established by Mohan Ramnath in 1985 at Chennai. He was a PhD in Chemistry, a soft spoken gentleman who did not believe in working under pressure. The company was a small scale unit manufacturing non-patented anti-malarial medicines. The company worked 6 days per week and was running smoothly. In 1978, CITU supported union came into existence. Industrial relations started deteriorating making it difficult for the company to service. In 1983, Ramnath decide to enter into partnership with three other partners, Chandan Keshav, Bharat Pathak and Veenu Ramachandan to overcome the difficulties faced by him. The company came to be known as Geetha Laboratories Ltd. Even after this, industrial relations did not improve till 1990 and it was during this period that 14 workers were sacked. In 1990, Ramnath decided to sell his shares to Emission Pharmaceuticals, a multinational, though other partners continued. Now, the company was called German Drug House (GDH) Pharmaceuticals. During this period CITU withdrew support to the union and BMS (Bhartiya Mazdoor Sangh) came into the picture. An average increment of Rs. 225/-was given to all workers and industrial relations improved to some extent.

IMPLA Pharmaceuticals Limited was another non-patented anti-malarial bulk drug manufacturing giant having units at Poona, Mysore, Hyderabad, and Coimbatore and having corporate office at Baroda. It wanted to have monopoly in anti-malarial drug manufacturing by taking over GDH, but before taking such step, they wanted to assess the internal condition of the company. Therefore, in January 1994 Vishal Shrivastav, a qualified Chartered Accountant, was inducted as Director by purchasing a requisite number of shares of the company. In September 1994, after IMPLA was convinced about the favorable conditions of GDH it formally took over the company. At that time the manpower strength of the plant was 210 in which 130 were workers and 80 were executives and staff members. After taking over, IMPLA made many changes and the major ones were:

1. They increased the salaries of executives and staff of the unit to reduce the gap in the pay structure of the executives and staff of this unit and their other units.

2. They invested 3-4 crores for up gradation of the plant.

3. They shifted from 6 days working per week to 7 days working per week to improve the productivity and enhance cost-effectiveness of the unit.

The shift from 6 days to 7 days working without any financial gains, made workers resists the change. At this junction Sumeet Joshi, Corporate Manager, (IR) intervened and promised the workers that they would be paid for 30 days instead of 26 days, but Ravi Shriman, Director (Personnel) and Vishal Shrivastav; GM (operations) refused to agree to this since they were not involved when Sumeet Joshi made the commitment. The promise was not fulfilled, further complicated problems. The issues kept on lingering for 6 months. No decision could be taken because of the difference of opinion among senior executives. In June 1995, the workers gheraoed Vishal Shrivastav to pressurize the management to take the decision. They were successful to some extent as it led to the agreement of management with workers that financial benefits would be given with retrospective effects of 4 years making it one additional year over and above 3 years of normal agreement. They were asked to give a notice of change which the Workers couldn‟t give till December 1995 because of disagreement among themselves. It was felt at this point of time by Shrivastav that the plant should have an Assistant Manager (Personnel) instead of having a Personnel Officer. Ajit Dubey, Assistant Manager

IIBM Institute of Business Management

10

Examination Paper of Pharmaceuticals Management

(Personnel) was appointed in October 1995 but even this appointment took 3-4 months because of difference of opinion between shrivastav and Shriman.

In December 1995, the workers gave a notice of change demanding an increase of Rs. 2200/- per month. In January 1996, a notice of change was given by management. In February 1996, the negotiations started and continued till July 1996. Shrivastav, Rajkumar, the new Corporate Manager (IR), Ajit Dubey and Kishore were to represent the management and nine members of the union were to represent the workers, besides V.D. Agarwal, the General Secretary of BMS. The first two rounds of meeting did not lead to any outcome as none of the parties were ready to budge. This made V.D. Agarwal withdraw as he was fed up with the rigid stand of the union leaders.

The third meeting was held without Agarwal, wherein the union leaders came down to Rs. 1,200/-from Rs. 2,200/- p.m. The minutes of the meeting were jotted down but the union leaders refused to sign. Taking advantage of the occasion, Dubey and Shrivastav had a secret meeting with Agarwal in a hotel. Agarwal advised the representatives of the management to maintain a low profile for a few months to crack down the workers‟ aspirations who had very high expectations. It was observed by

Dubey that there were perceptual differences between senior and junior union leaders. Taking clue from this, Dubey adopted a policy of divide and rule and took into confidence Devilal, the senior union leader and had secret meeting with him to explore the last settlement amount and apprised him that the management could go only upto Rs 450/- . He also took Janak Singh, the junior union leader into confidence and convinced him that the management was not going to bend before their demands and as such the workers were going to be the ultimate sufferers. Besides this, Dubey spread the message that no wages would be given retrospectively.

The next day the meeting resumed in which union representatives demanded Rs. 750/- (because of the pressure from the workers) beyond which they were not ready to come down. It was decided that instead of having a meeting with all the members, only two members, one senior union leader, Devilal and one junior union leader, Janak Singh would sit in the negotiations. Immediately a meeting between Shrivastav, Rajkumar, Devilal and Janak Singh was held and it was resolved that Rs. 575/- average per month would be given for 4 years retrospectively. A MOU was drafted by the legal consultant at the corporate office and was duly signed by Shrivastav, Rajkumar, Dubey and all the union representatives. In the evening a dinner was hosted in which all the negotiators were invited. When the papers were sent to R. Shriman, he objected to the MOU on the following points. First, the other plants were having 30 days pay system leading to less average per day and in Chennai plant it was to be given for 26 days leading to higher average per day. Second, the milk allowance given for overtime at Chennai unit was higher than other units. it took Shrivastav and Rajkumar two months to convince Shriman about the agreement, thereafter implementing the same. Rs. 14 to 15 lakhs were given to all the 160 workers within a week as arrears and the issue was settled.

Questions:

1. Was it right for V.D. Agarwal to withdraw half way during negotiations?

2. In view of the information given in the case, suggest the strategies for making IMPLA Pharmaceuticals a more progressive organization.

END OF SECTION B

Section C: Applied Theory (30 Marks)

IIBM Institute of Business Management

11

Examination Paper of Pharmaceuticals Management

 This section consists of Applied Theory Questions. 



 Answer all the questions. 



 Each question carries 15 marks. 



 Detailed information should from the part of your answer (Word limit 200 to 250 words). 



1. Explain the terms in the context of the “Pharmaceutical Marketing” :

a. Brand

b. Trademarks

c. Product line

2. Explain the important point that should be considered, while packaging pharmaceutical product? Also list the various dimensions of pharmaceutical market.

END OF SECTION C

S-2-300813

IIBM Institute of Business Management

Examination Paper of Managerial Economics

IIBM Institute of Business Management

IIBM Institute of Business Management

Subject Code-B106

Examination Paper

Managerial Economics

MM.100

Section A: Objective Type & Short Questions (30 marks)

Part one:

Multiple choice:

I.Demand is determined by

(1)

a) Price of the product

b) Relative prices of other goods

c) Tastes and habits

d) All of the above

II. When a firm’s average revenue is equal to its average cost, it gets (1)

a) Super profit

b) Normal profit

c) Sub normal profit

d) None of the above

III. Managerial economics generally refers to the integration of economic theory with business

(1)

a) Ethics

b) Management

c) Practice

d) All of the above

IV. Which of the following was not immediate cause of 1991 economic crisis (1)

a) Rapid growth of population

b) Severe inflation

c) Expanding Fiscal deficit

d) Rising current account deficit

V.Money functions refers to : (1)

a) Store of value

b) Medium of Exchange

c) Standard of deferred payments

d) All of the above VI. Given the price, if the cost of production increases because of higher price of raw materials, the supply (1) a) Decreases b) Increases c) Remains same d) Any of the above

 This section consists of multiple choices and Short Notes type questions.

 Answer all the questions.

 Part one questions carry 1 mark each & Part two questions carry 5 marks each.

Examination Paper of Managerial Economics

IIBM Institute of Business Management

VII. Total Utility is maximum when (1)

a. Marginal Utility is maximum

b. Marginal Utility is Zero

c. Both of the above

d. None Of The Above

VIII. Cardinal approach is related to (1)

a. Equimarginal Curve

b. Law of diminishing returns

c. Indifference Curve

d. All of the above

IX. Marginal Utility curve of a consumer is also his (1)

a) Supply Curve

b) Demand Curve

c) Both of above

d) None of above

X. Government of India has replaced FERA by (1)

a) The competition Act

b) FRBMA

c) MRTP Act

d) FEMA

Part Two:

1. What is Managerial Economics? What is its relevance to Engineers/Managers? (5)

2. “Managerial Economics is economics that is applied in decision making” Explain? (5)

3. Differentiate b/w, Micro economics vs. macroeconomics? (5)

4. Factors Affecting Price Elasticity of Demand? (5)

Section B: Caselets (40 marks)

END OF SECTION A

 This section consists of Caselets.

 Answer all the questions.

 Each Caselet carries 20marks.

 Detailed information should form the part of your answer (Word limit 150 to 200 words).

IIBM Institute of Business Management

Examination Paper of Managerial Economics

Caselet1

Dabur is among the top five FMCG companies in India and is positioned successfully on the specialist herbal platform. Dabur has proven its expertise in the fields of health care, personal care, home care and foods. The company was founded by Dr. S. K. Burman in 1884 as small pharmacy in Calcutta (now Kolkata), India. And is now led by his great grandson Vivek C. Burman, who is the Chairman of Dabur India Limited and the senior most representative of the Burman family in the company. The company headquarter is in Ghaziabad, India, near the Indian capital New Delhi, where it is registered. The company has over 12 manufacturing units in India and abroad. The international facilities are located in Nepal, Dubai, Bangladesh, Egypt and Nigeria. S.K. Burman, the founder of Dabur, was trained as a physician. His mission was to provide effective and affordable cure for ordinary people in far-flung villages. Soon, he started preparing natural remedies based on Ayurveda for diseases such as Cholera, Plague and Malaria. Due to his cheap and effective remedies, he became to be known as ‘Daktar’ (Indian izedversion of ‘doctor’). And that is how his venture Dabur got its name—derived from Daktar Burman. The company faces stiff competition from many multinational and domestic companies. In the Branded and Packaged Food and Beverages segment major companies that are active include Hindustan Lever, Nestle, Cadbury and Dabur. In case of Ayurvedic medicines and products, the major competitors are Baidyanath, Vicco, Jhandu, Himani and other pharmaceutical companies.

Vision statement of Dabur says that the company is “dedicated to the health and wellbeing of every household”. The objective is to “significantly accelerate profitable growth by providing comfort to others”. For achieving this objective Dabur aims to:

 Focus on growing core brands across categories, reaching out to new geographies, within and outside India, and improve operational efficiencies by leveraging technology.

 Be the preferred company to meet the health and personal grooming needs of target consumers with safe, efficacious, natural solutions by synthesizing deep knowledge of Ayurveda and herbs with modern science.

 Be a professionally managed employer of choice, attracting, developing and retaining quality personnel.

 Be responsible citizen with a commitment to environmental protection.

 Provide superior returns, relative to our peer group, to our shareholders.

Chairman of the company

Vivek C. Burman joined Dabur in 1954 after completing his graduation in Business Administration from the USA. In 1986 he was appointed as the Managing Director of Dabur and in 1998 he took over as Chairman of the Company.

IIBM Institute of Business Management

Examination Paper of Managerial Economics

Under Vivek Burman’s leadership, Dabur has grown and evolved as a multi-crore business house with a diverse product portfolio and a marketing network that traverses the whole of India and more than 50 countries across the world. As a strong and positive leader, Vivek C. Burman had motivated employees of Dabur to “do better than their best”—a credo that gives Dabur its status as India’s most trusted nature-based products company.

Leading brands

More than 300 diverse products in the FMCG, Healthcare and Ayurveda segments are in the product line of Dabur. List of products of the company include very successful brands like Vatika, Anmol, Hajmola, Dabur Amla Chyawanprash, Dabur Honey and Lal Dant Manjan with turnover of Rs.100 crores each.

Strategic positioning of Dabur Honey as food product, lead to market leadership with over 40% market share in branded honey market; Dabur Chyawanprash is the largest selling Ayurvedic medicine with over 65% market share. Dabur is a leader in herbal digestives with 90% market share. Hajmola tablets are in command with 75% market share of digestive tablets category. Dabur Lal Tail tops baby massage oil market with 35% of total share.

CHD (Consumer Health Division), dealing with classical Ayurvedic medicines, has more than 250 products sold through prescription as well as over the counter. Proprietary Ayurvedic medicines developed by Dabur include Nature Care Isabgol, Madhuvaani and Trifgol.

However, some of the subsidiary units of Dabur have proved to be low margin business; like Dabur Finance Limited. The international units are also operating on low profit margin. The company also produces several “me – too” products. At the same time the company is very popular in the rural segment.

Questions

1. What is the objective of Dabur? Is it profit maximisation of growth maximisation? (10)

2. Do you think the growth of Dabur from a small pharmacy to a large multinational company is an indicator of the advantages of joint stock company against the proprietorship form? Elaborate. (10)

Caselet2

The Regina Company„ one of the largest inakets of vacuum cleaners recent') had scv cfc ptollkins with the quality of its products. The market responsc to this 1ak of quality caused financial problems for Ow company. in late 1995. Regina began having return rates as high as 30 to 50 percent on some of its Housekeeper and Housekeeper Plus models. These models were sold primarily through discount stores. Further, Regina's Spectrum vacuum cleaner, an upgraded version sold in specialty stores, was introduced in 1995 with many quality problems. ef The specific problems identified for the Housekeeper and Housekeeper Plus models were associated with faulty belts and weak suction. In the Spectrum model, the agitator was melting; and making a loud noise, the foot pedals were breaking, and the steel-encased motor (which had been advertised as the

IIBM Institute of Business Management

Examination Paper of Managerial Economics

power source for the vacuum cleaner) had been replaced with a less desirable. less reliable motor.

As a result of these problems, Target stores discontinued Regina's Housekeeper Plus model after reporting that "at least half of those sold were returned." At Starmart, which accounts for about a quarter of the Housekeeper sales, I. out of every 5 machines sold was returned. To help service customer complaints, Regina set up an 800 telephone number for customers to contact the firm. directly. The sales returns caused Regina's shareholders to question the 1995 fiscal earnings report. Furthermore, both inventories and accounts receivable doubled during the 1995 fiscal year. At the end of that period, Regina's chairman and 40 percent stockholders

Resigned. The chairman’s resignation was closely followed by a company announcement stating that the financial results reported for the 1995 fiscal year were materially incorrect and had been withdrawn. This announcement brought a suit from shareholders who had bought Reoina stock on the basis of the 1995 camings report. It also prompted an audit of the 1995 results and a request to another accounting organization to work on Regina's business and accounting controls. A few months later, Regina 'agreed to be acquired by a unit of Magnum, a vacuum cleaner and Water-purification Company. Under Magnum, Regina shut down production while engineers worked to solve the problems inherent in the Housekeeper and Housekeeper Plus vacuums, particularly the suction difficulties. In September 1998, Magnum and Regina decided to separate the two companies again. Since then, Regina has been regaining market share with its Housekeeper models. The 'vacuums are popular because they carry on-board tools.

Questions:

1. What type of controls would you have established to preclude the major returns experienced by Regina? (10)

2. How would you have controlled the finished-goods -inventory to avoid its growing to twice the size that it was in the previous year. (10)

Section C: Applied Theory (30 marks)

1. What is the importance of demand analysis in business decision? (15)

2. Explain individual demand function and market demand function. (15)

S-2-010619

 This section consists of Applied Theory Questions.

 Answer all the questions.

 Each question carries 15marks.

 Detailed information should form the part of your answer (Word limit 200 to 250 words).

END OF SECTION C

END OF SECTION B