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Examination Paper of Human Resource Management
IIBM Institute of Business Management
Examination Paper MM.100
Human Resource Development & Training
Section A: Objective Type & Short Questions (30 marks)
This section consists of Multiple Choi ces and 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. HRD is the process of helping people to acquire________
a. Competition
b. Completeness
c. Competencies
d. None of the above
2. Techniques of human resource development are also called_______
a. HRD Methods
b. HRD Instruments
c. HRD Mechanism
d. All of above
3. In India HRD began only in______
a. 1970s
b. 1980s
c. 1910s
d. 1990s
4. BARS Stand for______
a. Behaviorally Anchored Rating Scale
b. Behaviorally Anchoring Rating Scale
c. Behaviorally Appraisal Rating Scale
d. None of the above
5. Levels of evaluations of Training programme are:
a. 7
b. 6
c. 5
d. 10
6. Performance appraisal in a _________process of identifying, planning, developing
employee Performance.
a. Multi-Stages
b. Single-Stages
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IIBM Institute of Business Management
Examination Paper of Human Resource Management
c. Dual-Stages
d. All of the above
7. Halo effect is the tendency to the judge all aspects of a________
a. Person’s behaviour
b. Perspective behaviour
c. Performance appraisal
d. All of the above
8. QWL Stand for_______
a. Quality of work life
b. Quality of worker life
c. Quantity of work life
d. None of the above
9. 360- degree feedback can be used s a tool for performance_______
a. Appraisal
b. Analyze
c. Assessment
d. None of the above
10. Career planning is a _______that constitute what a person does for a living.
a. Sequence of career
b. Sequence of jobs
c. Sequence of sum
d. None of the above
Part Two:
1. Discuss the various methods of Appraisal?
2. Briefly explain ‘On the job and Off the job’ methods of Training and Development.
3. Explain the objectives of ‘Performance Appraisal’.
4. Differentiate between HRM and HRD concept.
END OF SECTION A
Section B: Case lets (40 marks)
This section consists of caselets.
Answer all the questions.
Each Caselets carries 20 marks.
Detailed information should from the part of your answer ( Word limit 150 to 200 words.)
Case let 1
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IIBM Institute of Business Management
Examination Paper of Human Resource Management
Introduction to the Organization:
XYZ Company was established 20 years ago, to manufacture gearbox components for diesel engines.
It employs around 250 people, having a head office, which employs a wide range of personnel who
are generally well educated and enthusiastic about their work, and a factory, which employs semiskilled
local people who are generally disinterested in the products of the company and who have an
instrumental attitude to work, seeing salary as the only reward.
Brief Description of the Problem:
The performance of the company has not been good and the records revealed the following facts:
Wastage within the factory was costing the company approximately Rs.100,000 a month.
There was wide spread differences in individual work standards.
Processes were non-standardized resulting in repeated problems.
Management made all decisions and cascaded the results down to employees.
The top management become concerned about the performance of the factory and they hired.
Mr. Tanmoy Deb, an OD consultant to study the problem and suggest specific changes to
relationship and tasks with the following objectives:
To review and improve communication systems.
To restructure the organization and to review teamwork and quality practices.
To review leadership issues across all levels.
Mr. Tanmoy Deb carried out discussions, interviews and surveys and made the following
observation:
There’ and ‘us’ attitude was widely prevalent between head office and factory personnel.
Production personnel lacked technical skills.
Factory employees felt alienated from sharing the Company’s success.
Production systems were adhoc and defective because of frequent variation in standards set.
Many times raw material was found to be of inferior quality.
Rigidly defined job descriptions.
Questions:
1. What in your view are the central human resource issues involved in this case?
2. What Strategy should Mr. Tanmoy Deb develop and implement for improving the present system?
Case let 2
Introduction to the Organization:
XYZ Company is an existing profit making FMCG Company. The company has 600 personnel and
has branches all other the country. It has a separate training department with a Training Manager, Mr.
A.P. Mohan as its head who is supported by two qualified training officers. Mr. Mohan has been in
the company for the last 8 years and is very efficient.
Brief Description of the problem:
Mr. Mohan wants to have the organization. He is fed up with organization politics. He is dissatisfied and
in fact frustrated. There are several reasons attachment to it. First and foremost is that he is not paid
adequately despite the fact that he has brought 12% growth in revenue to the company. Second reason is
that he is not consulted and constantly neglected while making decision on training aspects. Lastly, he
considers himself to be a victim of politics played in the organization. Production Manager
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IIBM Institute of Business Management
Examination Paper of Human Resource Management
is constantly hurting him and interferes with the work. Dr. Ashok Sarao, boss of Mr. A.P. Mohan does
not want him to leave the organization, as he known that the effectively will come down if he leaves
Dr. Ashok tries to convince Mohan that he should adjust himself with the environment and also talk of
how Mohan is constantly neglected. He talks of how politics is played in the organization and
strengths and weaknesses of Mohan but does nothing to convince Mohan. Rather he says that they
have to adjust, as they are part of family run business. In this setting, personal equation rather than
merit works. Mohan is not convinced and says he is leaving.
Questions:
1. Why a high performer like Mr. Mohan decided to leave the organization he has been long part of?
2. Do you think Mr. A.P. Mohan took the right decision to leave the organization? What would you
have done if you were in his shoes?
END OF SECTION B
Section C: Applied Theory (30 marks)
This section consists of Applied Theory Questions.
Answer all the questions.
Each questions carry 15 marks.
Detailed information should from the part of your answer (Word limit 200 to 250 words).
1. What do you mean by Quality of Work Life? Discuss the various techniques for improving
the Quality of work life with the principles of QWL?
2. Discuss the basic concepts of management development. What is the important of
management development in the changing business?
END OF SECTION C
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IIBM Institute of Business Management
Examination Paper of Human Resource Management
IIBM Institute of Business Management
Examination Paper MM.100
Industrial Relations & Labour Laws
Section A: Objective Type & Short Questions (30 marks)
This section consists of Multiple choices a nd 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. Workers participation in management decision-making is a highly________ concept.
a. Duplex
b. Complex
c. Simplex
d. None of the above
2. The origin of industrial relations in India can be traced in to the:
a. Second world war
b. First world war
c. Third world war
d. British rule
3. Under the payment of wages act, 1936, no wages period shall exceed for one.
a. Four month
b. Two month
c. One month
d. None of the above
4. Collective bargaining is the process of bargaining between________
a. employees & employer
b. workers & workers
c. employees & employees
d. None of the above
5. Layoff can also cause a ________
a. Retirement
b. Grievance
c. Conflict
d. None of the above
6. As per payment of bonus act, accounting year for a company is ________
a. One year
b. Period for which balance sheet is prepared
c. Period for which cash flow is prepared
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IIBM Institute of Business Management
Examination Paper of Human Resource Management
d. Period for which profit and loss account is prepared
7. WPM stands for_________
a. Workers’ Participation in Management
b. Workers’ Payment of Management
c. Well fare Payment of Management
d. None of the above
8. Causes of Industrial disputes are_________
a. Economic causes
b. Political causes
c. Technological causes
d. All of the above
9. Trade unions of workers in an organization formed by workers to protect their________
a. Working condition
b. Interest
c. Both a & b
d. None of the above
10. A grievance causes in any organization are_________
a. Work environment
b. Supervision
c. Work group
d. All of the above
Part two:
1. What are the steps of Grievances handling Process? Explain it.
2. What are the objectives of ‘Industrial Relations’?
3. Briefly explain the term ‘evolution of Trade unions in India’.
4. Explain the ‘workers’ participation in management’.
END OF SECTION A
Section B: Case lets (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).
Case let 1
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IIBM Institute of Business Management
Examination Paper of Human Resource Management
Star Automobiles Ltd. Pimpary is in the field of manufacturing of two wheelers. They manufacture and
market mopeds. These are available in the brand names ‘arrow’ and ‘double arrow’ where ‘arrow’ is
their traditional product and ‘double arrow’ is the improved version. The company was started about 20
yrs ago. Their product ‘arrow’ enjoys a reasonably good reputation and they were comfortable in the
market. However, with the entry of the new generation of fuel-efficient mopeds the company started
loosing its market. They immediately started developing the improved ‘double arrow’ but by the time
they came out with this new model the competitors had already strengthened their position in the
market. The arrow model was still acceptable by a segment of the market as it was cheapest vehicle.
‘Double arrow’ is new generation vehicle. It was costlier than Jet but its performance was much
superior. It is compared favorably with the competitors’ products; however it was yet to gain a foot hold
in the market.
The company had to refurbish the marketing activities in order to get back their market share. They
employed young sales engineer to launch a strong sales drive. Mr. Ramesh Tiwari, Btech and a diploma
holder in marketing got selected and was put on the job. Mr. Ramesh Tiwari started well in his new job.
He was given a territory to contact the prospective customers’ and to book the orders. The company had
introduced a new financial assistance scheme. Under this scheme, buyers were given easy loans. It was
particularly advantageous for group booking by employees working in an organization. Mr. Ramesh
Tiwari was able to contact people in different organization, arrange for group bookings and facilitate
the loans. His performance was good in the first year and in the second year of his service. The
company had its own system of rewarding those whose performance happened to be good. They usually
arranged a paid holiday trip for the good performer along with his wife. Mr. Ramesh Tiwari was
accordingly informed by the marketing manager to go to Chennai with his wife on company expenses.
Mr. Ramesh Tiwari asked him as to how much it would cost to the company. The marketing manager
calculated and told him that it would cost about 8000/-. He quickly asked him whether he could get that
8000/- in cash instead of the trip as he had better plans. The marketing manager countered this saying
that it might not be possible to doso. It was not the trading of the company, however he would check
with the personnel manager. After a couple of days, Mr. Tiwari was informed that it would not be
possible to give him a cash reward. Mr. Tiwari grudgingly went for the trip and returned. On his return,
he was heard complaining to one of his colleagues his little daughter was also along with him. The
marketing manager and the personnel manager thought he was a bit too fusy about the money and some
of his colleagues also thought so. During the subsequent days Mr. Ramesh Tiwari’s performance was
not all that satisfactory this showed his lukewarm attitude towards his job and the subordinates.
Questions:
1. Did the personnel manager handle the issue properly?
2. What is your recommendation to avoid such situations in future?
Case let 2
In 1950, with the enactment of the Insurance Act, Government of India decided to bring all the
insurance companies under one umbrella of the Life Insurance Corporation of India (LIC). Despite the
monopoly of LIC, the insurance sector was not doing well. Till 1995, only 12% of the country’s people
had insurance cover. The need for exploring the insurance market was felt and consequently the
Government of India set up the Malhotra Committee. On the basis of their recommendation, Insurance
Development and Regulatory Authority (IRDA) Act was passed in parliament in 2000. This moved
allowed the private insurers in the market with the strong foreign partners with 74:26% stakes. XYZMoon
life was one of the first three private players getting the license to operate in India in the year
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IIBM Institute of Business Management
Examination Paper of Human Resource Management
2000. XYZ Moon life Insurance was a joint venture between the XYZ Group and Moon Inc. of US.
XYZ started off its operations in 1965, providing finance for industrial development and since then it
had diversified in to housing finance, consumer finance, mutual funds and now its latest venture was
Life Insurance. Its foreign partner Moon Inc. had its presence in Asia since the past 75 years catering to
over 1 million customers across 11Asian countries. Within a span of two years, twelve private players
obtained the license from IRDA.IRDA had provided certain base policies like, Endowment Policies,
Money back Policies, Retirement Policies, Team Policies, Whole Life Policies, and Health Policies.
They were free to customize their products by adding on the riders. In the year 2003, the company
becomes one of the market leaders amongst the private players. Till 2003, total market share of private
insurers was about 4%, but Moon Life was performing well and had the market share of about 30% of
the private insurance business. In June 2002, XYZ Moon Life started its operations at Nagpur with one
Sales Manager(SM) and ten Development Officers (DO). The role of a DO was to recruit the agents and
sell a career to those who have an inclination towards insurance and could work either on part time or
full time basis. They were very specific in recruiting the agents, because their contribution directly
reflected their performance. All DOs faced three challenges such as Case Rate (number of policies),
case size (amount of premium), and recruitment of advisors by natural market, personal observations,
nominators, and centre of influence. Incentive of offered by the company to development officers and
agents were based on their performance, which resulted in to internal competition and finally converted
into rivalry. In August 2002, a branch manager joined along with one more sales manager and ten
development officers. Initially, the branch was performing well and was able to build their image in the
local market. As the industry was dynamic in nature, there were frequent opportunities bubbling in the
market. In order to capitalize the outside opportunities, one sales manager left the organization in
January 2003. As the sales manager was a real performer, he was able to convince all the good
performers at XYZ Moon Life Insurance to join the new company. In april 2004, the company faceda
grave problem, when the Branch Manager left the organization for greener pastures. To fill the position,
in May 2004, the company appointed a new branch manager, Shashank Malik, and a sales manager,
Rohit pandey. The branch manager in his early mthirties had an experience of sales and training of
about 12 years and was looking after two branches i.e., Nagpur and Nasik. Malik was given one
Assistant Manager and 25 Development Officers. Out of that, ten were reporting to him. He was given
the responsibility of handling all the operations and the authority to make all the decisions, while
informing the Branch Manager. Malik opined that the insurance industry is a sunrise industry where
manpower plays an important role as the business is based on relationship. He wanted to encourage
one-to-one interaction, transparency and discipline in his organization. While managing his team, he
wanted his co-workers to analyze themselves i.e., to understand their own strengths and weaknesses. He
wanted them to be result-oriented and was willing to extend his full support. Finally, he wanted to
introduce weekly analysis in his game plan along with inflow of new blood in his organization. Using
his vast experience, he began informal interactions among the employees, by organizing outings and
parties, to inculcate the feelings of friendliness and belonging. He wanted to increase the commitment
level and integrity of his young dynamic team by facilitating proper channelization of their energy. He
believed that proper training could give his team a proper understanding of the business and the
dynamics of insurance industry.
Questions:
1. If you were Malik, what strategies would you adopt to solve the problem?
2. With high employee turnover in insurance industry, how can the company retain a person like Malik?
END F SECTION B
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IIBM Institute of Business Management
Examination Paper of Human Resource Management
Section C: Applied Theory (30 marks)
This section consists o f Applied Theory Questions.
Answer all the questions.
Each question carries 15 marks.
Detailed information should form the part of your answer (Word limit 200 to 250 words).
1. What is the Collective Bargaining? Explain the Characteristics and types of Collective
Bargaining and write down the different levels of Collective Bargaining?
2. Discuss the wage policy in India with reference to detailed evaluation of the act.
END F SECTION C
S-2-300813
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IIBM Institute of Business Management
Examination Paper of Computer Fundamental
IIBM Institute of Business Management
• 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.
IIBM Institute of Business Management
Subject Code-B112
Examination Paper
Computer Fundamental
MM.100
Section A: Objective Type & Short Questions (30 marks)
Part one:
Multiple choice:
I.A Light Sensitive device that converts drawing, printed text or other image into digital from is (1)
a) Keyboard
b) Plotter
c) Scanner
d) OMR
II. The basic operations performed by a computer are (1)
e) Arithmetic operation
f) Logical operation
g) Storage and relative operation
h) All the above l
III. The two major types of computer chips are (1)
a. External memory chip
b. Primary memory chip
c. Microprocessor chip
d. Both b and c
IV. Microprocessors as switching devices are for which generation computers (1)
a. First Generation
b. Second Generation
c. Third Generation
d. Fourth Generation
Examination Paper of Computer Fundamental
IIBM Institute of Business Management
END OF SECTION A
V.What is the main difference between a mainframe and a super computer?
a. A Super computer is much larger than the mainframe computers.
b. Super computers are smaller than the mainframe computers.
c. Supercomputers are focused to execute few programs as fast as possible while mainframe computers use its power to execute as many programs concurrently.
d. Supercomputers are focused to execute as many programs as possible while mainframe
VI. ASCII and EBCDIC are the popular character coding systems. What does EBCDIC stand for?
a) Extended Binary Coded Decimal Interchange Code
b) Extended Bit Code Decimal Interchange Code
c) Extended Bit Case Decimal Interchange Code
d) Extended Binary Case Decimal Interchange Code
VII. The brain of any computer system is
a) ALU
b) Memory
c) CPU
d) Control unit
VIII. Storage capacity of magnetic disk depends on
a) tracks per inch of surface
b) bits per inch of tracks
c) disk pack in disk surface
d) All of above
IX. The two kinds of main memory are:
a) Primary and secondary
b) Random and sequential
c) ROM and RAM
d) All of above
X. A storage area used to store data to a compensate for the difference in speed at which the different units can handle data is
a) Memory
b) Buffer
c) Accumulator
d) Address
Part Two:
1. What is Windows? (5)
2. What is Windows? (5)
3. What is Computer Virus? (5)
4. What is the meaning of ‘CC’ in case of E-mail? (5)
Examination Paper of Computer Fundamental
IIBM Institute of Business Management
• 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).
Section B: Caselets (40 marks)
Caselet 1
Mr. and Mrs. Sharma went to Woodlands Apparel to buy a shirt. Mr. Sharma did not read the price tag on the piece selected by him. At the counter, while making the payment he asked for the price. Rs. 950 was the answer.
Meanwhile, Mrs. Sharma, who was still shopping came back and joined her husband. She was glad that he had selected a nice black shirt for himself. She pointed out that there was a 25% discount on that item. The counter person nodded in agreement.
Mr. Sharma was thrilled to hear that “It means the price of this shirt is just Rs. 712. That‟s fantastic”, said Mr. Sharma. He decided to buy one more shirt in blue color.In no time, he returned with the second shirt and asked them to be packed. When he received the cash memo for payment, he was astonished to find that he had to pay Rs.. 1,900 and Rs.1,424.
Mr. Sharma could hardly reconcile himself to the fact that the counter person had quoted the discounted price which was Rs. 950. The original price printed on the price tag was Rs.1,266.
Questions
1. What should Mr. Sharma have done to avoid them is understanding? (10)
2. Discuss the main features involved in this case. (10)
Caselet 2
I don’t want to speak to you. Connect me to your boss in the USA,” hissed the Alfred is a do-it yourself entrepreneur who built up his fortune in trading. He traded in anything and everything and kept close control of every activity. That was now he had grown rich enough to indulge in his own dream-to build a college in his home town. A college that would be at par to the ones in the better cities, the one in which he could not study himself.
Work started a year hack and the buildings were coming along well He himself did not use computers much and became hooked to the Internet and e-mail only recently. He was determined to provide a PC with Internet connectivity to every students and faculty member. He was currently engrossed in plans for the 100 seater computer lab.
What was confusing him was the choice of Internet connectivity. He had about a dozen quotations in front of him, Recommendations ranged from 64 Kbps ISDN all the way to 1 Gbps leased line to Guwahati which was almost 200 kms away. Prices ranged from slightly under a lakh all the way upto 25 lakh and beyond. He did not understand most of the equipment quoted firewall, proxy server, cache appliance, nor was he sure what the hidden cost were. Although it went against his very nature, he would have to identify a trustworthy consultant who would help him make sense of the whole thing.
Examination Paper of Computer Fundamental
IIBM Institute of Business Management
END OF SECTION B
• 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
Questions
1. In the context of the given case, what managerial issues need to be addressed by Alfred. Why is It Important for managers to be tech savvy? (10)
2. What is the importance of a 'Systems consultant' to an organization? What skills should he/she possess? (10)
Section C: Applied Theory (30 marks)
1. What are Web sites & URL(s)? (15)
2. Explain how data is organized on a magnetic tape? (15)
S-2-010619
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
