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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 Export and Import Management
1
IIBM Institute Of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Export Import Management
Section A: Objective Type & Short Questions (30 Marks)
This section consists of Multiple Choice and Short Note type questions.
Answer all the questions
Part one carries 1 mark each and Part two carries 4 marks each.
Part One:
Multiple Choices:
1. In case of goods being rejected or wrong shipments which section of customer act provides
drawback facility on the customer‟s duty?
a. Section 47
b. Section 88
c. Section 74
d. Section 40
2. Risks arising out of foreign law due to______________
a. Lack of knowledge about foreign market
b. Expensive and complex litigation
c Both „a‟ & „b‟
d. None of the above
3. Import LC is also known as _______________
a. Letter of Debt
b. Bills of exchange
c. Open account
d. Letter of credit
4. How much digits are there in IEC number?
a. 8
b. 10
c. 12
d. 15
5. What is the full form of RFID?
a. Rural Fund Information Development
b. Request For International Development
c. Radio Frequency Identification System
d. Radio Frequency Internal System
6. The Export Inspection Council is a ________________
a. Support the export corporation
b. Responsible for the enforcement of QC
c. Administrative control of the ministry of Commerce & industry
d. Provides consultancy to export organization
7. The World Trade Organization was formed in_______________
a. 1994
Examination Paper of Export and Import Management
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IIBM Institute Of Business Management
b. 1995
c. 1996
d. 1997
8. Government policies are related to__________________
a. Income tax
b. Sales tax
c. Both „a‟ & „b‟
d. None of the above
9. Clearing and forwarding agents are an important link between_______________
a. The exporter and various other agencies
b. The importer and various other agencies
c. Import and export of goods
d. All of the above
10. Which Regional issues are important to commercial success?
a. Taxation matters
b. Importance of negotiations
c. Degree of market risk
d. All of the above
Part Two:
1. Define EDI procedure.
2. Differentiation between “Measurement Rules” and “Pallet Rules”.
3. Explain the Benefits of Electronic Procurement.
4. What is DGCI$S?
5. Define the role of intermediaries in Shipping Industry.
Section B: Caselets (40 marks)
This section consists of Case lets.
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
“Large Package Meal” is a full-package meals service company, a large hotel by the Shanghai Li Yang
couple of laid-off workers, was founded in 1994 and now has developed into a small Suxichang and
Hangjiahu area famous food service businesses.“Popular Package Meal” service is divided into two
categories: lunch and package delivery services. Lunch mainly by the meat dish, vegetables, Lu Cai,
popular soup and fruit composition of normal. Available for customers to choose menu: six kinds of meat
END OF SECTION A
Examination Paper of Export and Import Management
3
IIBM Institute Of Business Management
dish, vegetables, 10 species of Lu Cai 4, three kinds of soup and the general public three kinds of fruit can
also be adorned with custom-made drinks. Despite little change in the menu, but the annual report on the
point of view, the overall level of demand for this service fairly stable, the old customers will call to order
a day usually. However, as facilities and equipment reasons, the “public packet meals” will ask the
customers at 10 am before the telephone booking, in order to ensure that the day of delivery in place.
In the package of services, the company‟s core competency is to provide enterprises buffet reception,
large gatherings, as well as the average family feast and celebration dinner. Customers need a variety of
food and services can be pre-booking, but because of the service highly seasonal, but also with a variety of
community festivals and national holidays related to the demand fluctuated, with high season and low
season, so ask the customer a few weeks or even a month ahead of schedule to come to book. Volkswagen
meal package layout is similar to the company‟s facilities in a processing plant. There are five work areas:
thermal system for food work areas, cold dish work area, Lu Cai preparation area, soups and fruit
preparation area, as well as a work area catering specifically for the installation of the sets of dishes lunch
box and book Zhuangpen share. In addition, there are three small refrigerators for storing frozen foods, a
large dry storage rooms for non-perishable materials. As the facilities and equipment limitations and the
risk of food spoilage constrained plant mass the size of the company‟s development package meals. While
the drinks and fruit can be purchased, and some stores are willing to deliver door, but the overall package
on the limits of human congregation offers flexible meal service. Li Yang couples employed 10 staff: two
chefs and eight food preparation workers, part-time employment during the peak season other attendants.
Packet meals sector, competition is very intense, high-quality food products, reliable delivery, flexible
service and low-cost carriers are all in this line of survival and development is fundamental. Recently, the
public packet meals from the company has began to feel more and more discerning customers and several
new packages meal providers of professional competition. Customers increasingly need to diversify the
menu of services, flexible, and the response-time. Li Yang wife recently attended knowledge of modern
logistics training courses, on the time of the operation and the concept of third-party logistics services, was
impressed by careful consideration of these concepts is the public packet meals company to maintain its
competitiveness need. But they are puzzled, popular package Meals Company‟s ability to help third-party
logistics services.
Questions:
1. The public package meal companies implement service-time availability of difficulties, Explain.
2. The introduction of third-party logistics services to the public packet meals would you put forward
any firm recommendations?
Caselet 2
UPS is a large international express delivery company, has hundreds of planes in addition to its own cargo
planes, he also rented hundreds of aircraft cargo aircraft, the transport capacity of more than 1,000 a day.
UPS in this world has established more than 10 air transport transit center in more than 200 countries and
regions of the tens of thousands of delivery centers. UPS‟s employees to reach hundreds of thousands.
Annual turnover of the amount could reach tens of billions of dollars; express delivery companies in the
world enjoy a high reputation.
UPS Company is engaged in correspondence, documents and parcel delivery business, the company
quickly. It is the world‟s countries and regions have made access to the air traffic rights. In the China, this
established a number of delivery centers. A company to take advantage of high-tech means to achieve
rapid and safe, is a wide range of logistics services, image perfect.
Questions:
1. Why do we say UPS is an international logistics business, and general transport logistics
company?
Examination Paper of Export and Import Management
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IIBM Institute Of Business Management
2. To describe the international express logistics enterprises in the development prospects.
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 form the part of your answer (Word limit 200 to 250 words).
1. Discuss the role of Banks in an export-import transaction.
2. Describe briefly the steps involved in export business to succeed in the era of globalization.
END OF SECTION B
END OF SECTION C
Examination Paper of Export and Import Management
5
IIBM Institute Of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
International Trade
Section A: Objective Type & Short Questions (30 Marks)
This section consists of Multiple Choice & Short Note type Questions.
Answer all the questions
Part one carries 1 mark each and Part two carries 5 marks each.
Part One:
Multiple Choices:
1. _________is beneficial between two nations that have strong markets in two different sectors.
a. Economic Growth
b. International Trade
c. Trade Integration
d. Trade Diversion
2. What is the full form of UNCTAD?
a. United Nation Conference on Trade and Development
b. Union Nations Committee of Trade and Development
c. Union Nations Conference on Trade and Development
d. None of the above
3. ______is fixed through negotiation between the importing country and the exporting country.
a. Tariff Quota
b. Bilateral Quota
c. Mixing Quota
d. Unilateral Quota
4. Under which Act Reserve Code Number is required?
a. Foreign Exchange Regulation Act
b. Custom Act
c. Export Import Control Act
d. Foreign Trade Act
5. Which policy of the government will have a direct bearing on the exchange rate of the country?
a. Fiscal Policy
b. Instrument of Trade Policy
c. Monetary Policy
d. Both „a‟ & „c‟
6. Which scheme helps the exporters in procuring imported raw materials?
a. IES
b. C.C.S.
c. IRS
d. None of the above
7. Which of the following factor affecting the Exchange rate?
a. Purchasing power Parity
Examination Paper of Export and Import Management
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IIBM Institute Of Business Management
b. Exchange Control
c. Balance of Payments
d. All of the above
8. The system of permitting the currencies to move within a band is called___________.
a. Snake in the tunnel
b. Turtle Device
c. UNCTAD
d. None of the above
9. Periodic, as often as daily devaluations of pre-announced magnitude means________.
a. Managed Float Regime
b. The crawling Peg Regime
c. Single currency Peg
d. Composite currency Peg
10. The Export Policy of Government of India can be divided into_______ distinct phases.
a. 2
b. 3
c. 4
d. 5
Part Two:
1. Write a brief note on “International Monetary Fund”.
2. Write the components of the Uruguay Round Agreement.
3. Differentiate between Export Expansion and Import Substitution.
4. Explain the Term:-
a. Bill of Landing
b. Marine Insurance Policy
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
India‟s tea export rose to 46.74 million kg during the first quarter of the current financial year from 35.47
million kg in the previous comparable period. Export earnings from this item aggregates Rs. 81.61 crores
during April-June 1981, against Rs. 68.03 crores in the corresponding period last year. Thus, although in
terms of quantity our tea exports have looked upon this year, the unit value realization dropped from Rs.
19.8 per kg, to Rs 17.46 per kg.
The drop in unit value realization is attributed to the slackness in the international tea market due to the
global oversupply in this commodity. Since 1975, world tea production has gone up by 41 percent whereas
increase in consumption by the tea importing countries has been only of the order of the 9 percent.
END OF SECTION A
Examination Paper of Export and Import Management
7
IIBM Institute Of Business Management
Naturally, the prospects of a revival in international tea price are dim at least in the immediate future. The
recommendations made by the recent national meet on tea; „revitalize‟ the tea industry in the country have
to be viewed in this context.
The national meet on tea, organized by the Union Commerce Ministry, was held in the first week of
August to take a close look at the various problems confronting the tea industry the meeting which was
attended by the representatives of the Central Government, tea producing states, planter‟s associations and
small growers, has recommended a package of fiscal reliefs –both at the Central and State levels.
The package includes, among other things, a substantial reduction in excise duty on tea, refund of indirect
taxes paid on tea exports, simplification of drawback procedures, substantial reduction or removal of the
exercise duty on packet tea until further review,, suspension of sales tax an auction teas, concessional
credit and a significant cut in the agriculture income tax and other local taxed by the respective state
governments. It was also recommended that the state government should consider grant of exemption from
rural employment cess to all export sales of tea and teas used for packaging by the procedures themselves.
According to the available information these recommendations are being considered by the central and
states concerned by the central and states concerned for implementation.
The basic problem that confronts the tea industry in the international sphere is one of depressed price.
More and more black tea is coming into the international markets from several new tea producing export
countries leading to oversupply, lower realization. Among the tea producing nations area realizing without
greater cooperation among them, to bring a better equilibrium between demand and supply, they cannot
get incentives for tea exports. Because of lower production cost, some of our competitors have an edge
over us in export makers, and incentives may be necessary to an extent for offsetting this price
disadvantage. Similarly, assistance for exports of non-traditional items such as tea bags and packet tea
would be advantageous for establishing markets for these high value added items whose share in our
overall a tea exports is small at present.
Questions:
1. Discuss the problem that comforts the Tea Industry in the International sphere.
2. How you asses would the Tea producing states has recommended a package of fiscal reliefs?
Caselet 2
August 12, 1992 was a really bad day for John Martin. That was the day Canada, Mexico and the United
States announced an agreement, in principle, to the North America Free Trade Agreement (NAFTA).
Under the plan, all tariffs between the three countries would be eliminated within the next 10 to 15 years,
with most being cut in five years. What disturbed Martin most was the plan‟s provision that all tariffs on
trade of textiles among the three countries are to be removed within 10 years. Under the proposed
agreement, Mexico and Canada would also be allowed to ship a specific amount of clothing and textiles
made from foreign materials to the United States each year, and this quota would raise slightly over the
first five years of the agreement. “My God!” thought Martin.
Martin is the CEO of a New York based textile company, Martin‟s Textiles. The company has been in the
Martin family for four generations, having been founded by his great grandfather in 1910. Today, the
company employs 1500 people in three New York plants that produce cotton based clothes, primarily
underwear. All production employees are union members and the company has a long history of good
labour relations. The company has never had a labour dispute and Martin, like his father, grandfather, and
great -grandfather before him, regards the workforce as part of the "Martin family". Martin prides himself
not only in knowing many of the employees by name, but also in knowing a great deal about the family
circumstances of many of the long time employees.
Over the past 20 years the company has experienced increasingly tough competition, both from overseas
and at home. The mid 1980s was particularly difficult. The strength of the dollar on the foreign exchange
market during that period enabled Asian producers to enter the US market with very low prices. Since
then, although the dollar has weakened against many major currencies, the Asian producers have not raised
their prices in response to the falling driven by wage rates and labour productivity. Not surprisingly, most
of Martin‟s competitors in the north-eastern United States respond to the intense cost competition by
moving production south, first to states such as South Carolina and Mississippi where non –union labour
Examination Paper of Export and Import Management
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IIBM Institute Of Business Management
could be hired for significantly less than in the unionized North-east, and then to Mexico, where labour
costs for textile workers were less than $2 per hour. In contrast, wage rates are $12.50 per hour at Martin‟s
New York plant and $8 to $10 per hour at non-union textile plants in the south eastern United States.
The last three years have been particularly tough at Martin‟s Textiles. The company has registers a small
loss each year, and Martin knows the company cannot go on like this. His major customers, while praising
the quality of Martin‟s products, have worried him that his prices are getting too high and they may not be
able to continue to do business with him, His long-time banker has told him he must get his labour costs
down. Martin agrees, but he knows of only one surefire way to do that, to move production south, way
south, to Mexico. He has always been reluctant to do that, but now he seems to have little choice. He fear
as that in a5 years the Us market will be flooded with cheap imports from Asian, US and Mexican
companies, all producing in Mexico. It looks like the only way for Martin‟s Textiles to survive is to close
the New York plant and move production to Mexico. All that would be left in the United States would be
the Sales force.
Martin‟s mind was spinning. How could something that throws good honest people out of work be good
for the country? The politicians said it would be good for trade, good for economic growth and good for
the three countries. Martin could not see it that way. What about Mary Morgan who has worked for
Martin‟s for 30 years? She is now 54 year as old. How will she and others like her find another job? What
about his moral obligation to his workers? What about the loyalty his workers have shown his family over
the years? Is this a good way to repay it? How would he break the news to his employees, many of whom
have worked for the company for 10 to 20 years? And what about the Mexican workers? Could they be as
loyal and production in Mexico, he had heard stories of low productivity, poor workmanship high turnover
and high absenteeism. Is this true? If so, how could be ever cope with that? Martin has always felt that the
success of Martin‟s textiles was partly due to the family atmosphere, which encourages worker loyalty,
productivity and attention to quality, an atmosphere that has been built up over four generations. How
could he replicate that in Mexico with a bunch of foreign workers who speak a language he doesn‟t even
understand?
Questions:
1. What are the social costs of benefits to Martin‟s Textiles of shifting production to Mexica?
2. What seems to be the most ethical action?
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 form the part of your answer (Word limit 200 to 250 words).
1. Describe the current issues affecting the Exchange Rate of India.
2. Explain briefly “New Trade Theory”.
S-2-300813
END OF SECTION C
END OF SECTION B
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
