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Human Resource Management
Subject Code-B102
Section A: Objective Type & Short Questions (30 marks)
 This section consists of Multiple Choice and Short Answer type questions.
 Answer all the questions.
 Objective Question carries 1 mark each &Short Question carries 5 marks each.
Part One
Multiple Choices:
1. It is a cultural attitude marked by the tendency to regard one’s own culture as superior to others
a. Geocentrism
b. Polycentrism
c. Ethnocentrism
d. Egocentrism
2. It is the systemic study of job requirements & those factors that influence the performance of
those job requirements
a. Job analysis
b. Job rotation
c. Job circulation
d. Job description
3. This Act provides an assistance for minimum statutory wages for scheduled employment
a. Payment of Wages Act, 1936
b. Minimum Wages Act, 1948
c. Factories Act, 1948
d. Payment of Gratuity act, 1972
4. __________ is the actual posting of an employee to a specific job
a. Induction
b. Placement
c. Attrition
d. None
5. Broadening an individual’s knowledge, skills & abilities for future responsibilities is known as
a. Training
b. Development
c. Education
d. Mentoring
Examination Paper of Human Resource Management
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6. Change that is designed and implemented in an orderly and timely fashion in anticipation of
future events
a. Planned change
b. Technology change
c. Structural change
d. None
7. It is a process for setting goals and monitoring progress towards achieving those goals
a. Performance appraisal
b. Performance gap
c. Performance factor
d. Performance management system
8. A method which requires the rates to provide a subjective performance evaluation along a scale
from low to high
a. Assessment centre
b. Checklist
c. Rating scale
d. Monitoring
9. It is the sum of knowledge, skills, attitudes, commitment, values and the liking of the people in an
organization
a. Human resources
b. Personal management
c. Human resource management
d. Productivity
10. A learning exercise representing a real-life situation where trainees compete with each other to
achieve specific objectives
a. Executive development
b. Management game
c. Programmed learning
d. Understudy
Part Two:
1. What is the importance of Career Planning in industry?
2. List the various features of HRM.
3. How can you explain the concept of Performance Appraisal?
4. Differentiate between on- the- job and off- the- job training.
END OF SECTION A
Examination Paper of Human Resource Management
3
IIBM Institute of Business 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 150-200 words).
Caselet 1
Uptron Electronics Limited, is a pioneering and internationally reputed firm in the electronics
industry. It is one of the largest firm in the country. It attracted employees from internationallyreputed
institute and industries by offering high salaries, perks, etc. It has advertized for the position
of an electronic engineer recently. Nearly 150 candidates applied for the jobMr. Sashidhar, an
electronics Engineering Graduate from the Indian Institute Of Technology with 5 years working
experience in a medium sized electronics firm, was selected from among the 130 candidates who took
tests and interview. The interview board recommended an enhancement in his salary by Rs 5,000
more than his present salary at his request. Mr Sashidhar was very happy to achieve this and he was
congratulated by a number of people including his previous employer for his brilliant interview
performance, and wished him good luck.
Mr Sashidhar joined Uptyron Electronics Ltd., on 21st January, 2002, with greater enthusiasm. He
also found his job to be quite comfortable and a challenging one and he felt it was prestigious to work
with this company during the formative years of his career. He found his superiors as well as
subordinates to be friendly and cooperative. But this climate did not live long. After one year of his
service, he slowly learnt about a number of unpleasant stories about the company, management, the
superior subordinate relations, rate of employee turnover, especially at higher level But he decided to
stay on as he has promised several things to the management in the interview. He wanted to please
and change the attitude of management through his diligent performance, firm commitment and
dedication. He started maximizing his contributions and the management got the impression that Mr.
Sashidhar had settled down and will remain in the company.
After some time, the superiors started riding rough- shod over Mr Sashidhar. He was overloaded with
multifarious jobs. His freedom in deciding and executing was cut down. He was ill treated on a
number of occasions before his subordinates. His colleagues also started assigning their
responsibilities to Mr Sashidhar. Consequently there were imbalances in his family life and
organizational life. But he seemed to be calm and contented. Management felt that Mr Sashidhar had
the potential to bear with many more organizational responsibilities.
So the general manager was quite surprised to see the resignation letter of Mr Sashidhar along with a
cheque equivalent to a month’s salary one fine morning on 18th January, 2004. The General Manager
failed to convince Mr Sashidhar to withdraw his resignation. The General Manager relieved him on
25th January, 2004. The General Manager wanted to appoint a committee to go into the matter
immediately, but dropped the idea later.
Questions:
1. What is wrong with the recruitment policy of the company?
2. Why did Mr. Sashidhar’s resignation surprise the General Manager?
Examination Paper of Human Resource Management
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Caselet 2
The contexts in which human resources are managed in today’s organizations are constantly,
changing. No longer do firms utilize one set of manufacturing processes, employ a homogeneous
group of loyal employees for long periods of time or develop one set way of structuring how work is
done and supervisory responsibility is assigned. Continuous changes in who organizations employ
and what these employees do require HR practices and systems that are well conceived and
effectively implemented to ensure high performance and continued success.
1. Automated technologies nowadays require more technically trained employees possessing
multifarious skills to repair, adjust or improve existing processes. The firms can’t expect these
employees (Gen X employees, possessing superior technical knowledge and skills, whose attitudes
and perceptions toward work are significantly different from those of their predecessor organizations:
like greater self control, less interest in job security; no expectations of long term employment;
greater participation urge in work activities, demanding opportunities for personal growth and
creativity) to stay on without attractive compensation packages and novel reward schemes.
2. Technology driven companies are led by project teams, possessing diverse skills, experience and
expertise. Flexible and dynamic organizational structures are needed to take care of the expectations
of managers, technicians and analysts who combine their skills, expertise and experience to meet
changing customer needs and competitive pressures.
3. Cost cutting efforts have led to the decimation of unwanted layers in organizational hierarchy in
recent times. This, in turn, has brought in the problem of managing plateau employees whose careers
seem to have been hit by the delivering process. Organizations are, therefore, made to find alternative
career paths for such employees’
4. Both young and old workers, these days, have values and attitudes that stress less loyalty to the
company and more loyalty to oneself and one’s career than those shown by employees in the past,
Organizations, therefore, have to devise appropriate HR policies and strategies so as to prevent the
flight of talented employees
Question:-
1. Discuss that technological breakthrough has brought radical changes in HRM.
END OF SECTION B
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 150-200 words).
1. Several types of interviews are commonly used depending on the nature & importance of the
position to be filled within an organization. Explain the different types of Interviews.
2. How would you explain Organizational Change and Development?
END OF SECTION C
S-2-250613


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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
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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


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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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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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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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INFORMATION TECHNOLOGY IIBM ONGOING EXAM ANSWER SHEETS PROVIDED

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Information Technology
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 & Part two carries 5 marks each. 
Part One:
Multiple Choices:
1. It means data that have been processed in a form that is meaningful and useful to the user.
a. Data
b. Information
c. System
d. None of the above
2. BCR stands for____________
a. Bar code reader
b. Basic code reader
c. Business code reader
d. None of the above
3. Which of the following comes under output devices?
a. Printer
b. Speaker
c. Both (a) & (b)
d. None
4. A trackball is a stationary device related to the_______
a. Keyboard
b. Joystick
c. Mouse
d. All of the above
5. ___________is a volatile memory and everything disappears if power goes off or is turned off abruptly in the middle of work.
a. RAM
b. ROM
c. CDROM
d. None of the above
6. IC stands for____________
a. Integrated Circuit
b. Information Circuit
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IIBM Institute of Business Management
Examination Paper of Information Technology
c. Interrelated Circuit
d. None of the above
7. DSS stands for____________
a. Decision Support System
b. Direction Support System
c. Both (a) & (b)
d. None of the above
8. How many characters uses the MICR system?
a. 15 characters
b. 18 characters
c. 24 characters
d. 14 characters
9. One Megabyte contains:
a. 1000 KB
b. 1000 Bytes
c. 1000 MB
d. None of the above
10. The smallest element of data is called_______
a. Byte
b. Bit
c. Giga byte
d. None of the above
Part Two:
1. Write a note on „Cache Memory‟.
2. List the different types of information systems.
3. Write a short note on „Value Chain Analysis‟
4. Discuss peer- to – peer model in distributed computing system.
END OF SECTIONA
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 200 to 250 words). 
Caselet 1
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IIBM Institute of Business Management
Examination Paper of Information Technology
It began as a trading site for nerds, the newly jobless, home-bound housewives, and bored retirees to sell subprime goods: collectibles and attic trash. But eBay (www.ebay.com) quickly grew into a teeming marketplace of 30 million, with its own laws and norms, such as a feedback system in which buyers and sellers rate each other on each transaction. When that wasn‟t quite enough, eBay formed its own police force to patrol the listings for fraud and kick out offenders. The company even has something akin to a bank: Its Paypal payment-processing unit allows buyers to make electronic payments to eBay sellers who can‟t afford a merchant credit card account. “eBay is creating a second, virtual economy,” says W. Brian Arthur, an economist at think tank Santa Fe Institute. “It‟s opening up a whole new medium of exchange.” eBay‟s powerful vortex is drawing diverse products and players into its profitable economy, driving its sellers into the heart of traditional retailing, a $2 trillion market. Among eBay‟s 12 million daily listings are products from giants such as Sears Roebuck, Home Depot, Walt Disney, and even IBM. More than a quarter of the offerings are listed at fixed prices. The result, says Bernard H. Tenenbaum, president of a retail buyout firm, is
“They„re coming right for the mainstream of the retail business.” So what started out as a pure consumer auction market-place is now also becoming a big time business-to-consumer and even business-to-business bazaar that is earning record profits for eBay‟s stockholders. And as the eBay economy expands, CEO Meg Whitman and her team may find that managing it could get a lot tougher, especially because eBay‟s millions of passionate and clamorous users demand a voice in all major decisions. This process is clear in one of eBay‟s most cherished institutions: the voice of the Customer program. Every couple of months, the executives of eBay bring in as many as a dozen sellers and buyers, especially its high selling “Power Sellers,” to ask them questions about how they work and what else eBay needs to do. And at least twice a week, it holds hour-long teleconferences to poll users on almost every new feature or policy, no matter how small. The result is that users feel like owners, and they take the initiative to expand the eBay economy – often beyond management‟s wildest dreams. Stung by an aerospace down-turn, for instance, machine-tool shop Reliable Tools Inc., tried listing a few items on eBay in late 1998. Some were huge, hulking chunks of metal, such as a $7,000 2,300-pound milling machine. Yet they sold like ice cream in August.
Since then, says Reliable‟s auction manager, Richard Smith, the company‟s eBay business has “turned into a monster.” Now the Irwindale (California) shop‟s $1 million in monthly eBay sales constitutes 75% of its overall business. Pioneers such as Reliable promoted eBay to set up an industrial products marketplace in January that‟s on track to top $500 million in gross sales this year.Then there is eBay Motors. When eBay manager Simon Rothman first recognized a market for cars on cars on eBay in early 1999, he quickly realized that such high-ticket items would require a different strategy than simply opening a new category. To jump-start its supply of cars and customers, eBay immediately bought a collector-car auction company, Kruse International, for $150 million in stock, and later did a deal to include listings from online classifieds site, AutoTrader.com. Rothman also arranged insurance and warranty plans, an escrow service, and shipping and inspection services.This approach worked wonder. Sales of cars and car parts, at a $5 billion-plus annual clip, are eBay’s single largest market. That has catapulted eBay in front of No. 1 U.S. auto dealer AutoNation in number of used cars sold. About half of the sellers are brick-and-mortar dealers who now have a much larger audience than their local area. “eBay is by far one of my better sources for buyers,” says Bradley Bonifacius, Internet sales director at Dean Stallings Ford in Oak Ridge, Tennessee. And for now, the big corporations, which still account for under 5 percent of eBay‟s gross sales, seem to be bringing in more customers then they steal. Motorola Inc., for example, helped kick off a new wholesale business for eBay last year, selling excess and returned cell phones in large lots. Thanks to the initiative of established companies such as Motorola, eBay‟s wholesale business jumped ninefold, to $23 million, in the first quarter.As businesses on eBay grow larger, they spur the creation of even more businesses. A new army of merchants, for example, is making a business out of selling on eBay for other people. From almost none a couple of years ago, these so called Trading Assistants now number nearly 23,000. This kind of organic growth makes it
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Examination Paper of Information Technology
exceedingly though to predict how far the eBay economy can go. Whitman professes not to know.
“We don‟t actually control this,” she admits. “We are not building this company by ourselves. We have a unique partner – million of people.”
Questions:
1. Why has eBay become such a successful and diverse online marketplace? Visit the eBay website to help you answer, and check out their many trading categories, specialty sites, international sites, and other features.
2. Why do you think eBay has become the largest online/offline seller of used cars, and the largest online seller of certain other products, like computers and photographic equipment?
Caselet 2
It‟s no secret that somewhere in a back room in the typical Fortune 500 company, there‟s a team of analytical wizards running sophisticated data mining queries that mine for gems such as data about about the company‟s best customers – those top 20 percent of clients that produce 80 percent of the company‟s profits. These jewels can be a business‟s most valuable intellectual property, which makes them very valuable to competitors. What‟s to prevent that data set from walking out the door or falling into the wrong hands? Sometimes, not much. Many companies lack the internal controls to prevent that information from leaking. The problem is that such data is as hard to protect as it is to find. Owens & Minor Inc. (www.ownes-minor.com), a $4 billion medical supplies distributor, counts some of the nation‟s largest health care organizations among its customers. In late 1996, it started mining data internally using business intelligence software from Business Objects SA. “From the beginning, we were aware of security issues around this strategic information about our operations,” says Don Stoller, senior director of information systems at Owens & Minor. “For example, a sales executive in Dallas should only have access to analyses from his region.” It is always possible that someone who has legitimate access will abuse that trust, but companies can minimize that potential by strictly limiting access to only those who need it. thus, Owens & Minor uses role-level security functions that clearly define who has access to which data. “This meant we had to build a separate security table in our Oracle database,” says Stoller. A few years later, when the company wanted to open its systems to suppliers and customers, security became even more important. In 1998, Owens & Minor moved quickly to take advantage of Web-intelligence software from Business Objects that‟s designed to Web-enable business intelligence systems. The result was Wisdom, an extranet Web portal that lets Owens & Minor‟s suppliers and customers access their own transactional data and generate sophisticated analyses and reports from it.“It business-to-business transactions, security is key,” says Stoller. “We had to make absolutely sure that Jhonson & Jhonson, for example, could not see any 3M‟s information. This meant we had to set up specific customer and supplier security tables, and we had to maintain new, secured database views using the Oracle DBMS and Business Objects.”Wisdom was such a success that Owens & Minor decided to go into the intelligence business with the launch of wisdom2 in the spring of 2000. “We capture data out of a hospital‟s materials management system and load it into our data warehouse,” Stoller explains. A hospital can then make full use of its business-intelligence software to mine and analyze purchasing data. Owens & Minor receives a licensing and maintenance fee for the services.Layers of security and encryption require a considerable amount of overhead data for systems administration.
Both Stoller and Michael Rasmussen, an analyst at Giga Information Group, say that‟s the main reason security concerns about business intelligence are often swept under the carpet. The issues of authentication (identifying the user) and authorization (what things the user is allowed to do) must be addressed, usually across different applications, Rasmussen says, adding, “Systems
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Examination Paper of Information Technology
administration can be a real nightmare.”“We are going through some of this,” says David Merager, director of Web services and corporate applications at Vivendi Universal Games Inc.
(www.vugames.com). “Our business intelligence needs more security attention.” Business intelligence reports come from two systems: an Oracle-based for budgets on a Microsoft SQL Server database. The heart of the business intelligence system consists of Microsoft‟s OLAP application and software from Comshare Inc. that provides the Web-based front end for the analytics. “Our budget teams use these reports to do real-time analyses,” says Merager. Rodger Sayles, manager of data warehousing at Vivendi Universal, says one way to secure such a system is to assign roles to all users within the Microsoft application. Roles determine precisely what a user is allowed to see and do and are usually managed within a directory. If your computing architecture is amenable to a single, centralized directory that supports roles, this may be an attractive solution. “The problem is that once you have over 40 distinct roles, you run into performance issues, and we have identified about 70 user roles,” Sayles explains. He says there‟s way around this difficulty. “I think we are going to use a combination of Web portals and user roles. A user would sign on through a particular Web portal, which would effectively place the user in a role category. This reduces the overhead burden on the application,” says Sayles.
Questions:
1. Why have developments in IT helped to increase the value of the data resources of many companies?
2. How can companies use IT to meet the challenges of data resources security?
END OF SECTION B
Section C: Applied Theory (30 marks)
 This section consists of Long Questions. 

 Answer all the questions. 

 Each question carries 15 marks. 

 Detailed information should form the part of your answer (Word limit 150 to 200 words). 
1. Explain distributed systems. What are the advantages and disadvantages of distributed systems?
2. What do you mean by database? List the different types of database model.
END OF SECTIONC
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IIBM Institute of Business Management
Examination Paper of Information Technology
IIBM Institute of Business Management
Examination Paper
MM.100
Database Management Systems
Section A: Objective Type & Short Questions (30 Marks)
 This section consists of Multiple Choice and Short answer type questions. 

 Answer all the questions. 

 Part one carries 2 marks each & Part Two carries 5 marks each. 
Part One:
Multiple choices:
1. A collection of related sets of data items along with necessary data/ information associated with it.
a. Data
b. Information
c. Process
d. Database
2. ___________connects computers which are very remotely placed.
a. Local Area Network
b. Wide Area Network
c. Both (a) & (b)
d. None
3. A column in a table is called__________
a. Field
b. Record
c. Tuple
d. Link
4. DDL stands for ___________
a. Data Definition Language
b. Data Decision Language
c. Database Definition Language
d. None
5. SQL stands for ___________
a. Structured Query Language
b. Statement Query Language
c. Strict Query language
d. None
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Examination Paper of Information Technology
Part Two:
1. List the different types of DBMS.
2. Differentiate between „DBMS‟ and „RDBMS‟.
3. What do you mean by „Data Dictionary‟?
4. Differentiate between discretionary access control and mandatory access control.
END OF SECTION A
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 200 to 250 words). 
Caselet 1
Database management system is the complex software which is aimed at the management of the information stored in the database effectively. A high-quality management system helps organize, manipulate, transform, store, retrieve and create data professionally. It is important that the whole information kept in the database could be accessible, manageable, and easy for manipulation. A successful DBMS should possess a strict logical structure, which enables everyone to find the required data easily. The high-quality management system gives the opportunity for the user to change the required information without any harm to the whole application. Database management systems are extremely important today, because the humanity lives in the age of information and the whole information is kept in databases which require professional skilful management and flexibility.
Every organization, private and public, connected with business or not possesses the necessary information which is essential for its proper functioning. The information is supposed to be stored in security and only the employees of an organization can have access to it. The idea of a good database management system is to make the work of an organization easier, faster and of higher quality, because the easier and the faster the access to the data is, the faster the work will be. Moreover, if the information becomes out-of-date, the experts can modify it and introduce the necessary changes to make it valid.
1. What are the roles of a database in present scenario?
Caselet 2
The most dramatic advance of the past decade in software technology has been the development of database management systems (DBMS). There is little question about the potential of these systems for enhancing system support to managers and users while reducing design, structuring, and
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Examination Paper of Information Technology
maintenance problems. Database systems also provide a way of improving information system flexibility by decoupling user-oriented data structures from physical storage methods. In spite of the vast potential of database management systems, the information systems community has not reacted with the total enthusiasm that might have been expected. Significant resistance has been encountered in some organizations, both from users, systems managers, and programming staff members. Although the literature on the features of database systems is substantial, there is little discussion of resistance problems encountered during the actual implementation and use of these systems in organizations. The purpose of this panel is to examine issues related to resistance toward DBMS in organizations. The panel members, each of whom is experienced in this area, will examine a number of organizational, technical, and application issues pertinent to the problem of resistance. The discussion will focus on why this resistance has occurred and how, if at all possible, it could have been avoided. Both behavioral and technical issues will be examined. This session should be of interest to both the practitioner and theorist alike. Database management systems are collectively the most significant software product advance in the last decade. There is little question about the potential of these systems for improving data management in organizations. Yet not all persons show a level of enthusiasm for these systems that their capabilities would merit. Users and systems persons alike have been known to resist acquisition and/or introduction of database management systems, sometimes strongly. In the discussion that follows, the problem of resistance as it applies to database management systems is introduced. The intent is to raise issues for research and investigation rather than to provide concrete answers to problems.
1. Discuss various anomalies in databases. How would you improve data management in organizations?
END OF SECTION B
Section C: Applied Theory (30 marks)
 This section consists of Long Questions. 

 Answer all the questions. 

 Each question carries 15 marks. 

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


1. What do you understand by relational data model? Explain relational constraints and relational database schemas
2. What are the similarities and dissimilarities in the software development life cycle and database development life cycle?
END OF SECTION C
S-2-300813
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IIBM Institute of Business Management


HOSPITALITY MANAGEMENT IIBM ONGOING EXAM ANSWER SHEETS PROVIDED

HOSPITALITY MANAGEMENT IIBM ONGOING EXAM ANSWER SHEETS PROVIDED WHATSAPP 91 9924764558
Hospitality Management
Section A: Objective Type (30 marks)
 This section consists of True and False and Short Note Types Questions.
 Answer all the questions.
 Part one carries1 mark each and Part Two carries 5 marks each.
Part One:
True and False:
1. ADA stands for Americans with Disabilities Act.
2. NOT stands for National Offices of Tourism.
3. Management contracts have been responsible for the hotel industry‟s rapid boom since the 1960s.
4. High-speed Internet service is free form of information technology that these businesses can utilize.
5. One of the most crucial IT decisions is choosing the right POS system.
6. Forecasting is the prediction of present outcomes.
7. The top independent restaurant in terms of sales is the Tavern on the Green in New York City, which opened in 1976.
8. A fine dining restaurant is one where a good selection of seat arranged is offered.
9. Terms to understand in B&I foodservices are contractors, self-operators, & Liaison personnel.
10. Every manager must function the as a leader, motivating and encouraging employees is called spokesperson role.
Part Two:
1. List the various types of Hotel operation Theories?
2. Discuss the different types of activities of front office in Hotel?
3. Write the Short note on Housekeeping?
4. What are the guidelines for security of cash?
Examination Paper of Hospitality Management
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END OF SECTION A
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 200 to 250 words).
Caselet 1
Airline Commission Caps
Travel agents have begun legal action and public campaigns to combat several airlines‟ decisions to lower commissions for writing tickets, and have warned of higher ticket costs if other airlines follow. Most U.S. airlines have lowered the commission rate on tickets for domestic flights to a $20 cap for a round-trip fare. International commissions also fell and vary from airline to airline.As consumers begin to balk at rising prices and Wall Street presses for continued earnings growth, airlines must cut costs by turning to their second largest expense, the $12 billion spent annually for costs such as travel agent commissions. It has become clear that airlines can do nothing about fuel prices management has any power over is the area of distinction expenses.American Express Corporate Services Agencies, which books mostly business travelers, warned that if other airlines follow suit, some travel agencies will go out of business. That would send more businesses to airlines‟ reservation agents, who do not offer the lowest available fares from all carries, or could result in travel agents passing costs along to consumers.The American Society of Travel Agents, which represent 24,000 agents, and The Association of Retail Travel Agents, a trade group that represents 4,000 travel agents, have announced they will seek U.S. congressional approval to allow small, “business-sized” travel agents to bargain collectively with the major airlines and to steer customers to “friendly” airlines when negotiating fails. The associations believe that the cut in commissions in less than three years is a slap in the face.After the introduction of the initial cap of $25 for one-way domestic tickets and $50 for round-trip tickets, many agents complained caps would eliminate jobs and reduce earnings. A class action lawsuit followed on behalf of 33,000 travel agents, alleging price fixing. Some travel agents also steered customers away from other airlines such as Delta in retaliation.In September 1996, American, Delta, Northwest, and United agreed to pay $72 million in cash to settle the lawsuit.
1. If you owned a travel agency, what would your reaction to the reduced commission cap be?
2. What options would you consider?
Caselet 2
Java Coffee House
Michelle Wong is manager of the Java Coffee House at a busy location on Union Street in San Francisco. Michelle says that there are several challenges in operating a busy coffeehouse, such as training staff to handle unusual circumstances. For example, one guest consumed a cup of coffee and ate two-thirds of a piece of cake and then said he didn‟t like the cake. Another problem is suppliers who quote good prices to get her business and then, two weeks later, raise the price of some of the items.Michelle says that young employees she has at the Java Coffee House are her greatest challenge of all. According to Michelle, there are four kinds of employees – lazy; good , but not responsible; those who steal; and great ones who are no trouble.
Examination Paper of Hospitality Management
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IIBM Institute of Business Management
1. What are some suggestions for training staff to handle unusual circumstances?
2. How do you ensure that suppliers are delivering the product at the price quote?
END OF SECTION B
Section C: Applied Theory (30 marks)
 This section consists of Long Questions.
 Answer all the questions.
 Each question carries 10 marks.
 Detailed information should form the part of your answer (Word limit 150 to 200 words).
1. What do you mean by Hotel Management? What are the functions of Hotel Management?
2. Define the term operational strategy? And also explain the Model framework for Hotel organizations?
3. What do you mean by Food Services? List the Different types of Food service?
END OF SECTION C
Examination Paper of Hospitality Management
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IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Hospitality & Tourism Marketing
Section A: Objective Type (30 marks)
 This section consists of Multiple Choice and Short Notes Type Questions.
 Answer all the questions.
 Part one carries 1 mark each and Part Two questions carry 5 marks each.
Part One:
Multiple forms:
1. In SMERF, S stands for_____________
a. Social
b. Service
c. Sale
d. None of the above
2. If the Question Mark businesses are successful then they become Stars.(T/F)
3. Customers can be considered under_____________
a. Micro environment forces
b. Macro environment forces
c. none
d. depending on the area of consideration any of the above
4. Demography is the study of________________
5. Generation X consist of the people born between__________
a. 1946 to 1964
b. 1965 to 1976
c. 1977 to 1994
d. None of the above
6. In „SMERF‟ M stands for____________
a. Money
b. Model
c. Military
d. Market
7. Aural dimensions of environment are volume and pitch.(T/F)
8. NAM stands for_____________
a. National Account Management
b. National Accounting Market
c. National Autonomous Market
Examination Paper of Hospitality Management
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IIBM Institute of Business Management
d. Both (a) & (b)
9. Fixed costs are also known as „Overheads‟.(T/F)
10. Lobbying is dealing with legislators and government officials to promote or defeat legislation and regulation.(T/F)
Part Two:
1. What do you understand by „Hospitality Marketing‟?
2. Explain the various types of Marketing in service Industries?
3. Write a short note on Hospitality Marketing Mix?
4. Describe the factors influencing the consumer Behaviour?
END OF SECTION A
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 200 to 250 words).
Caselet 1
International Travel Agency
The president of International Travel Agency was concerned about the performance of the sales force. It was felt that members of the sales force did not really utilize their sales opportunities, but instead though only about selling a ticket to a customer from point A to point B. The sales force did not seem to have an interest in maximizing sales and profits by aggressively selling the entire product mix. In total, the agency had a sales force of eight. Three members of the sales force were referred to as executive sales consultants. These people called on commercial accounts and were expected to spend more of their time outside the office. The remaining five persons were referred to as travel counselors and worked entirely within the agency. None of the travel counselors who worked within the agency were assigned a quota. The executive sales consultants, who worked outside the office, were assigned a sales quota. Failure to meet a quota would be discussed with the salesperson, but no other action was usually taken unless this failure continued for several months. If serious and persistent deficiencies existed, the salesperson could be subject to discharge.The agency provided nine to twelve familiarization (fam) trips for members of the sales force each year. This meant that each salesperson could experience at least one trip per year, as they were assigned on a rotating basis. These trips did not reduce time from the salesperson‟s guaranteed number of days of annual vacation. The purpose of a fam trip was to acquaint travel agents with destination areas and the services of airlines, hotels, restaurants, and so on. The president felt that the agency could maximize profits by selling more
Examination Paper of Hospitality Management
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IIBM Institute of Business Management
travel services to clients and that the sales force was concerned only about selling tickets. An analysis of the product mix of International Travel revealed that approximately 85 percent was accounted for by airline tickets. The remaining 15 percent consisted of allied travel services, including hotels, rental cars, and entertainment. Of these, the majority consisted of hotel reservations. Less than one percent was accounted for by the sale of traveler‟s checks. One of the members of management offered the analogy of a businessman entering a clothing store. If a customer purchases a suit, the salesclerk asks if the customer might need a new shirt or tie to go with the suit. Travel agents are no different. They write a ticket from Chicago to Hong Kong or London for a client and never bother to ask if the client needs hotel accommodations, rental cars, travelers checks, or other services that an agency handles. The president of International Travel had tried to encourage the sales force to sell other services but felt that they seemed uninterested in taking the time and effort required. The president believed that maximizing sales of the complete product mix would lead to maximum profits and that something must be done to encourage cross-selling.
1. What can be done to encourage the sales force to engage in more cross-selling?
2. Discuss what is needed in terms of sales incentives and sales controls to achieve the objectives of International Travel Agency.
Caselet 2
TANGLEWOOD PARK: VANTAGE GOLF TOURNAMENT
Tanglewood Park has a budget of $4.8 million per year and golf is the primary moneymaker for the park, but over the past four years, Tanglewood has steadily lost money on its golf greens. In 1994, golfers paid about $1 million to play on the championship course where the Vantage is held. However, the amount of maintenance needed to keep this course in top shape and the loss of revenue when the course is shut down for repairs have created an economic problem. The general public who pays county taxes has been restricted from the greens to ensure that the course will be in shape for the Vantage tournament. Revenue from the championship course was expected to be $428,000 less in 1997 than in 1994. “We‟re trying to product our investment,” said Rich Schmidt, finance officer for the park. The dilemma is that golfers who are viewed as “big-buck spenders” want to play where the pros play, said Francie Bray, director of marketing for the park. How much does the county get from these players and the thousands of visitors who attend the three-day tournament? Nobody knows! Officials with the Country Tourism and Development Authority don‟t know and neither do officials of the tournament, but most are from Forsyth and surrounding counties. So its doubtful that these people add much revenue to the county. They don‟t stay in hotels or make extra trips to the restaurant as a result of the tournament. Many observers feel that the only real spenders are the 500 people directly associated with the Vantage. That includes golfers, caddies, guest, and the media, said Richard Habeggar, tournament director. John Wise, general manager of the Adam‟s Mark Hotel in nearby Winston-Salem, said he expects some of the 615 rooms to be filled with tournament guests, but when asked how much the tournament helped, he said, “That‟s tough to say. If we didn‟t have the Vantage, we‟d attract business from other events.” An official from the Ramada Inn said that the 147 rooms for the tournament period were booked, but some had been sold to people attending weddings. Despite a budget of $3 million by R.J. Reynolds to sponsor the Vantage, the company started the 1996 tournament with a $250,000 deficit. Tournament officials have noticed a slump in ticket sales and cut expenditures by airing the event on the Golf Channel rather than ESPN, which broadcast the event for ten years. Pete Brunstetter said he wasn‟t certain of the future for the tournament but said that the county couldn‟t help to subsidize it. The lack of reliable statistics concerning the economic advantages of the tournament to the county and to the local visitor industry undoubtedly hurt. Elected officials responsible for the careful expenditure of tax money and professional managers of a county
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IIBM Institute of Business Management
public park must support their decisions. The absence of reliable data makes it nearly impossible to mount a defense the public will accept.
1. The county commissioners need information to make a decision on the golf tournament. Using the marketing research process, develop a research plan that will provide the commissioners with the information they need.
2. Explain why it is important on the economic contribution of social events, both before and after the event.
END OF SECTION B
Section C: Applied Theory (30 marks)
 This section consists of Long Questions.
 Answer all the questions.
 Each question carries 15 marks.
 Detailed information should form the part of your answer (Word limit 150 to 200 words).
1. What is the meaning of Tourism Marketing? How would you explain the role of Tourism organization in Tourism Marketing?
2. Identify a restaurant or hotel market segment in your community that you feel would be a good market segment to target. Explain the marketing mix you would put together to go after this market segment.
END OF SECTION C
S-2-300813


FINANCIAL MANAGEMENT IIBM ONGOING EXAM ANSWER SHEETS PROVIDED

FINANCIAL MANAGEMENT IIBM ONGOING EXAM ANSWER SHEETS PROVIDED WHATSAPP 91 9924764558
Financial Management
Subject Code-B-103
Section A: Objective Type & Short Questions (30 marks)
 This section consists of multiple choice & Short Notes.
 Answer all the questions.
 Part One carries 1 mark each & Part two carries 5 marks each.
Part one:
Multiple choices:
1. The approach focused mainly on the financial problems of corporate enterprise.
a. Ignored non-corporate enterprise
b. Ignored working capital financing
c. External approach
d. Ignored routine problems
2. These are those shares, which can be redeemed or repaid to the holders after a lapse of the
stipulated period.
a. Cumulative preference shares
b. Non-cumulative preference shares
c. Redeemable preference shares
d. Perpetual shares
3. This type of risk arises from changes in environmental regulations, zoning requirements, fees,
licenses and most frequently taxes.
a. Political risk
b. Domestic risk
c. International risk
d. Industry risk
4. It is the cost of capital that is expected to raise funds to finance a capital budget or investment
proposal.
a. Future cost
b. Specific cost
c. Spot cost
d. Book cost
5. This concept is helpful in formulating a sound & economical capital structure for a firm.
a. Financial performance appraisal
b. Investment evaluation
c. Designing optimal corporate capital structure
d. None of the above
Examination Paper of Financial Management
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IIBM Institute of Business Management
6. It is the minimum required rate of return needed to justify the use of capital.
a. From investors
b. Firms point
c. Capital expenditure point
d. Cost of capital
7. It arises when there is a conflict of interest among owners, debenture holders and the
management.
a. Seasonal variation
b. Degree of competition
c. Industry life cycle
d. Agency costs
8. Some guidelines on shares & debentures issued by the government that are very important for the
constitution of the capital structure are:
a. Legal requirement
b. Purpose of finance
c. Period of finance
d. Requirement of investors
9. It is that portion of an investments total risk that results from change in the financial integrity of
the investment.
a. Bull- bear market risk
b. Default risk
c. International risk
d. Liquidity risk
10. _____________ measure the systematic risk of a security that cannot be avoided through
diversification.
a. Beta
b. Gamma
c. Probability distribution
d. Alpha
Part Two:
1. What do you understand by wealth maximization?
2. Discuss the concept of factoring.
3. Define Annuity.
4. What is the Difference between NPV and IRR?
END OF SECTION A
Section B: Case lets (40 marks)
Examination Paper of Financial Management
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IIBM Institute of Business Management
 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
Case1: Credit Decision – Agarwal Case
On August 30, 2006, Agarwal Cast Company Inc., applied for a $200,000 loan from the main office
of the National bank of New York. The application was forwarded to the bank’s commercial loan
department. Gupta, the President and Principal Stockholder of Agarwal cast, applied for the loan in
person. He told the loan officer that he had been in business since February 1976, but that he had
considerable prior experience in flooring and carpets since he had worked as an individual contractor
for the past 20 year. Most of this time, he had worked in Frankfert and Michigan. He finally decided
to “work for himself” and he formed the company with Berry Hook, a former co-worker. This
information seemed to be consistent with the Dun and Bradstreet report obtained by the bank
According to Gupta, the purpose of the loan was to assist him in carrying his receivables until they
could be collected. He explained that the flooring business required him to spend considerable cash
to purchase materials but his customers would not pay until the job was done. Since he was relatively
new in the business, he did not feel that he could compete if he had to require a sizeable deposit or
payment in advance. Instead, he could quote for higher profits, if he were willing to wait until
completion of the job for payment. To show that his operation was sound, he included a list of
customers and projects with his loan application. He also included a list of current receivables.
Gupta told the loan officer that he had monitored his firm’s financial status closely and that he had
financial reports prepared every six months. He said that the would send a copy to the bank. In
addition, he was willing to file a personal financial statement with the bank.
Question:
1. Prepare your recommendation on Agarwal Cast Company
Caselet 2
This case has been framed in order to test the skills in evaluating a credit request and reaching a
correct decision. Perluence International is large manufacturer of petroleum and rubber-based
products used in a variety of commercial applications in the fields of transportation, electronics, and
heavy manufacturing. In the northwestern United States, many of the Perluence products are
marketed by a wholly-owned subsidiary, Bajaj Electronics Company. Operating from a headquarters
and warehouse facility in San Antonio, Strand Electronics has 950 employees and handles a volume
of $85 million in sales annually. About $6 million of the sales represents items manufactured by
Perluence. Gupta is the credit manager at Bajaj electronics. He supervises five employees who handle
credit application and collections on 4,600 accounts. The accounts range in size from $120 to
$85,000. The firm sells on varied terms, with 2/10, net 30 mostly. Sales fluctuate seasonally and the
average collection period tends to run 40 days. Bad-debt losses are less than 0.6 per cent of sales.
Gupta is evaluating a credit application from Booth Plastics, Inc., a wholesale supply dealer serving
the oil industry. The company was founded in 1977 by Neck A. Booth and has grown steadily since
Examination Paper of Financial Management
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IIBM Institute of Business Management
that time. Bajaj Electronics is not selling any products to Booth Plastics and had no previous contact
with Neck Booth. Bajaj Electronics purchased goods from Perluence International under the same
terms and conditions as Perluence used when it sold to independent customers. Although Bajaj
Electronics generally followed Perluence in setting its prices, the subsidiary operated independently
and could adjust price levels to meet its own marketing strategies. The Perluence’s cost-accounting
department estimated a 24 per cent markup as the average for items sold to Pucca Electronics. Bajaj
Electronics, in turn, resold the items to yield a 17 per cent markup. It appeared that these percentages
would hold on any sales to Booth Plastics. Bajaj Electronics incurred out-of pocket expenses that
were not considered in calculating the 17 per cent markup on its items. For example, the contact with
Booth Plastics had been made by James, the salesman who handled the Glaveston area. James would
receive a 3 per cent commission on all sales made Booth Plastics, a commission that would be paid
whether or not the receivable was collected. James would, of course, be willing to assist in collecting
any accounts that he had sold. In addition to the sales commission, the company would incur variable
costs as a result of handling the merchandise for the new account. As a general guideline,
warehousing and other administrative variable costs would run 3 per cent sales. Gupta Holmstead
approached all credit decisions in basically the same manner. First of all, he considered the potential
profit from the account. James had estimated first-year sales to Booth Plastics of $65,000. Assuming
that Neck Booth took the, 3 per cent discount. Bajaj Electronics would realize a 17 per cent markup
on these sales since the average markup was calculated on the basis of the customer taking the
discount. If Neck Booth did not take the discount, the markup would be slightly higher, as would the
cost of financing the receivable for the additional period of time. In addition to the potential profit
from the account, Gupta was concerned about his company’s exposure. He knew that weak customers
could become bad debts at any time and therefore, required a vigorous collection effort whenever
their accounts were overdue. His department probably spent three times as much money and effort
managing a marginal account as compared to a strong account. He also figured that overdue and
uncollected funds had to be financed by Bajaj Electronics at a rate of 18 per cent. All in all, slow –
paying or marginal accounts were very costly to Bajaj Electronics. With these considerations in mind,
Gupta began to review the credit application for Booth Plastics.
Questions:
1. How would you judge the potential profit of Bajaj Electronics on the first year of sales to Booth
Plastics and give your views to increase the profit?
2. Suggestion regarding Credit limit. Should it be approved or not, what should be the amount of
credit limit that electronics give to Booth Plastics.
END OF SECTION B
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 200-250 words).
Examination Paper of Financial Management
5
IIBM Institute of Business Management
1. Define Capital Structure. Discuss the important factors that should be considered while
determining Capital Structure.
2. What is the concept of working capital? Discuss the dangers of inadequate as well as excessive
working capital.
END OF SECTION C
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Guidelines for paper
 Total No. of Question is 100.
 The minimum passing mark is 40%.
 Each Question carries 1 mark.
 Answer all the Questions.
Multiple Choices:
1. The First Form of Mass-Media advertising was born in_______
a) 17th Century
b) 18th Century
c) 20th Century
d) 19th Century
2. Which one is the new and latest force of the advertising?
a) Radio
b) Internet
c) Newspaper
d) Television
3. Printing press, radio, television and internet are all examples of:
a) Major breakthroughs in technology
b) Digital Marketing
c) Global communication
d) None of these
4. ARPA Stand for_____________
a) Advanced report project agency
b) Advanced research project agency
c) Advanced report packet agency
d) None of these
5. The conversion of an analogue signal to a digital format is called__________
a) Decoding
b) Embedded Format
c) Emoticons
d) Encoding
6. What is the full form of W3C?
a) World Wild Web computer
b) World Wide Web consortium
c) World West Web computer
d) World Wide Web communicated
7. Advertising that is targeted to the content on the web page being viewed by a user at that specific time
is called______
a) Contextual Advertising
Examination Paper of Digital Marketing Professional
IIBM Institute of Business Management 2
b) Content Advertising
c) Conversion Advertising
d) Commission Advertising
8. Which of the following is not come under Four Ps of product?
a) Place
b) People
c) Price
d) Promotion
9. Search engine optimization (SEO) is related to_________
a) Promotion
b) Process
c) Product
d) None of these
10. “Small opportunities are after the beginning of great enterprise” is written by_________
a) Kathy Ireland
b) Jeff Bezos
c) Demosthenes
d) All of the above
11. Making sure everything works the way, it should before you let it out is known as___________
a) Designing
b) Testing
c) Planning
d) Developing
12. Every website on the Internet has a unique address is called_________
a) Domain Name
b) Numeric address
c) IP address
d) All of the above
13. Which of the following is most common and cheapest form of hosting?
a) Virtual dedicated hosting
b) Shared hosting
c) Dedicated hosting
d) Cloud-based hosting
14. Write down the full name of SERP_______
15. In the header section of the code on each of your web pages known as_______
a) Link
b) Body
c) Tag
d) Title
16. Which type of links are reside on pages that do not belong to your domain?
a) External
b) Internal
c) Internal/External
d) None of these
Examination Paper of Digital Marketing Professional
IIBM Institute of Business Management 3
17. IAB Stand for_________
18. A page with no meaningful content that is full of ads and the webmaster makes money from if someone
Clicks on them is called_________
a) Cloaking
b) Doorway page
c) Spam page
d) Interlinking
19. What is the second method of page Tagging?
a) Process
b) Developing
c) Designing
d) None of these
20. Every Transaction your web server makes is recorded in:
a) User file
b) Log file
c) Page tags
d) All of these
21. What is the full form of KPI________
a) Key process indicator
b) Key present indicator
c) Key performance indicator
d) Key Prospective identity
22. Which version produces the best result when two different version running of an ads or a page and
measuring the result to identity?
a) Testing
b) Tweaking
c) Investing
d) A/B split testing
23. Putting the theory into practice means:
a) Taking intelligence gleaned
b) Taking advertising creative
c) Taking Decisive action
d) Taking measurable action
24. “The new information technology internet and e-mail have practically eliminated the physical costs of
communication” said by________
a) Sims Jenkins
b) Signal vs noise
c) Matt Lindermann
d) Peter Drucker
25. Which marketing is the most powerful element in your digital marketing toolbox?
a) Digital Marketing
b) Direct Marketing
c) E-mail Marketing
d) Personal Marketing
Examination Paper of Digital Marketing Professional
IIBM Institute of Business Management 4
26. Fusion of marketing savvy and imagination copy is related to_________
a) Promotional Marketing
b) E-mail Marketing
c) Digital Marketing
d) None of these
27. Write down the full name of CAN-SPAM act________
28. Software and service that allow users to come together online and exchange, discuss, communication in
any form of social interaction is:
a) Social Paradigm
b) User Interface
c) E-mail
d) Social Media
29. The main problem with A/B split Testing is that ___________
a) You can use it to test variances of a single page element at a time
b) Double page element at a time
c) More than 2 page element at a time
d) All of the above
30. Personal interaction, creating, exchanging and sharing they all are different form of__________
a) Social Book marketing
b) Social media
c) Social paradigm
d) None of these
31. Which of the following is social media submission site?
a) www.digg.com
b) www.reddit.com
c) www.stumbleupon.com
d) All of the above
32. A series of digital media files (Audio or video) distributed over the internet is known as________
a) Blogs
b) Podcasts
c) Micro Blogging
d) Wikis
33. What is the essentially a short-message broadcast service that lets people keep people up to data via
short, public text posts upto 140 characters?
a) Facebook
b) SMS
c) Twitter
d) Linkedln
34. Online collection of web pages that are literally open for anyone to create, edit, discuss, comment on
and generally contribute to is:
a) Micro Blogging
b) Social media dash board
c) Wikis
d) None of these
Examination Paper of Digital Marketing Professional
IIBM Institute of Business Management 5
35. In which year the Chartered Institute of Public relation is define online PR (Public Relation) relations?
a) 2009
b) 2008
c) 2007
d) 2006
36. The process whereby a brand site, attracts customers by recording a third party for promoting their
Products and driving converting traffic website is called_________
a) Digital Marketing
b) Affiliate Marketing
c) E-mail Marketing
d) Strategic partnership
37. _______ the amount paid by an advertising for a click on their sponsored search listing.
a) Cost per action
b) Cost per acquisition
c) Cost per click
d) Cost per mille
38. The consumer performs the desired action on the merchant’s site, and a small piece of embedded code
on the merchant’s site inform the___________
a) Affiliate Marketing
b) Affiliate Network
c) Affiliate Site
d) None of these
39. Online Advertising content that appears over the top of the web page is called_________
a) Organic search results
b) Overlay
c) Opt-out
d) Opt-in
40. A computer file format that compresses audio files up to a factor of 12 from a wav file is known
as_________
a) MP3
b) MISSAN
c) MPEG
d) MPU
41. ___________ is a set of practices that enable organizations to communicate and engage with their
audience in an interactive and relevant manner through any mobile device or network.
a) Mobile Marketing
b) E-mail Marketing
c) Digital Marketing
d) All of the above
42. Which Advertising is now recognized as an opportunity for brands, advertisers and publishers to
engage consumers in a targeted and contextual manner?
a) Radio advertising
b) News paper advertising
c) Mobile advertising
d) Television advertising
Examination Paper of Digital Marketing Professional
IIBM Institute of Business Management 6
43. Which of the following language is used by many Internet application for exchanging information:
a) HTML
b) XHTML
c) XML
d) JAVA
44. Which is the example of popular Key performance Indicator (KPIs) for mobile campaigns?
a) Total downloads
b) Total Application user
c) Frequency and duration visit
d) All of these
45. Write down the full form of GPS__________
46. Which one of the company was launched its first play station back in 1995?
a) Apple
b) Nokia
c) Sony
d) Blackberry
47. In which year the first advertising agency, set up in Boston?
a) In 1855
b) In 1847
c) In 1843
d) In 1850
48. In 1983 which one started using TCP/IP protocol?
a) W3C
b) DNS
c) DARPA
d) ARPA NET
49. The first web page on the Internet was built at________
a) TCP
b) CERN
c) ARPA
d) All of the above
50. Who are becoming better informed, better connected, more communicative in the market?
a) Buyers
b) Customer
c) Consumers
d) None of these
51. Which Technology become more ubiquitous in people lives that consumers can satisfy their need more
quickly, more easily and with fewer barriers?
a) Advance Technology
b) Digital Technology
c) Both (a) & (b)
d) None of these
52. ___________ Technology that allows the use of a broadband internet connection to make telephone
Examination Paper of Digital Marketing Professional
IIBM Institute of Business Management 7
calls.
a) Video on demand
b) Virtual mobile network operator
c) Wireless application protocol
d) Voice over internet protocol
53. Who is the most important element in any form of marketing?
a) People
b) Customer
c) Seller
d) Consumer
54. Press releases, articles syndication and blogs they all are related to which channels?
a) Personal Channels
b) Offline Channels
c) Online Channels
d) None of these
55. Everything you do, online and offline, to get your product in front of your prospects is called_______
a) Promotion
b) Influencing
c) Advertising
d) All of the above
56. What is the first step of building your websites?
a) Testing
b) Design
c) Planning
d) Development
57. The process of designing your website to be equally accessible to everyone, in relation to the web is:
a) Usability
b) Accessibility
c) W3C & web standards
d) None of the above
58. You can buy multiple domain names is true or false.
a) True
b) False
59. Which of the following have ability to connect to the internet wirelessly?
a) Wi-Fi
b) Wiki
c) Web 2.0
d) Wilfing
60. The difference between effective web writing and effective print writing reflect the nature of:
a) People
b) Web designers
c) Both (a) & (b)
d) Audience
61. “Learning is the beginning of wealth, health and spirituality” this is said by________
Examination Paper of Digital Marketing Professional
IIBM Institute of Business Management 8
a) William Randolph Hearst
b) Marissa Mayer
c) Jim Rohn
d) None of these
62. Process a huge volume of searchers, scanning billions of items and delivering pages of relevant, ranked
results in a fraction is:
a) Engines
b) Browser
c) Search Engines
d) Scouring the web
63. Which of the following is not a traditional marketing channels ________
a) Commercial television
b) Radio
c) Print Publication
d) Yahoo
64. Short-tail Keyword is simple and very general in nature is:
a) True
b) False
65. Which type of tail keyword have more complex and more specific in nature?
a) Short- tail
b) Long-tail
c) Medium- tail
d) All of these
66. If you take it literally, encompasses everything on your website is called_______
a) Search results
b) Context
c) Content
d) Spiders
67. _________ is a technique that uses code to show one search engine friendly page to the spiders, and a
completely different page to a human visitor.
a) Cloaking
b) Interlinking
c) Keyword stuffing
d) Invisible Text
68. Your log files capture visits by search engines spiders and other automated bots as well as________
a) Analytics Software
b) Machines
c) Human user
d) All of these
69. ___________ will work even if you can’t access your web server logs?
a) Logs files
b) Page Tagging
c) Both (a) & (b)
d) None of these
Examination Paper of Digital Marketing Professional
IIBM Institute of Business Management 9
70. Junk paper mail become_______
a) Junk virtual mail
b) Junk business mail
c) Junk mail
d) Virtual mail
71. A host computer which maintains websites, newsgroup and e-mail service is known as_________
a) Session
b) Server
c) Simulcast
d) Skyscraper
72. When a legitimate E-mail is blocked by a spam filter is known as:
a) False Positive
b) True Positive
c) Tricky Proposition
d) None of these
73. Which one of the following is one of the most important steps in writing E-mail?
a) Creating Copy
b) Great subject line
c) Crafting the e-mail subject line
d) Ambiguous e-mail
74. To grab the attention to the audience in your e-mail which one of the option is best?
a) Point to point
b) Briefly
c) Interesting
d) All of the above
75. E-mail are delivered to the people on your list is another crucial element in your_________
a) E-mail marketing
b) Digital Marketing
c) Direct Marketing
d) Both (a) & (b)
76. __________ is that you deliver your message directly to an individual who actually wants to hear from
you.
a) Direct Marketing
b) E-mail Marketing
c) Digital Marketing
d) None of these
77. __________ is umbrella term for web based software and service.
a) Social Media
b) Social Media Submission
c) Social Bookmarking
d) None of these
78. People who are most active in social media circles will be the element of your target market can be
classified as________
a) Influencers
b) Influence
Examination Paper of Digital Marketing Professional
IIBM Institute of Business Management 10
c) Listener
d) All of these
79. Social bookmarking site is known as_______
a) www.delicious.com
b) www.ma.gnolia.com
c) Both (a) & (b)
d) None of these
80. What is the main work of review and rating sites?
a) Allow user to review and rate companies
b) Allow user to show the status of the companies
c) Allow user to give suggestion
d) Allow user to view the status
81. Facebook, Linkedlns, Google these all are comes under_______
a) Social Network Sites
b) Social Media Sites
c) Media sharing Sites
d) Forums and Discussion Sites
82. People all over the world are using blogs to______
a) Report Local News
b) Offer their opinion
c) Share their experience
d) All of these
83. Which of the following content is available to both media professionals and consumers?
a) PR
b) CRM
c) Both (a) & (b)
d) None of these
84. What is the right way of getting prominent, newsworthy stories about your product, brand or company?
a) Online Press release
b) Offline press release
c) Offline Equivalent
d) Standard Press release
85. Your headline and first paragraph should capture reader’s_________
a) Attention
b) Interest
c) Views
d) Suggestion
86. Who are working in affiliate Marketing?
a) Brand/Seller
b) Affiliate
c) Customer
d) all of these
87. The companies who want their product and services advertising on the interest and are trying to attract
new business called_______
Examination Paper of Digital Marketing Professional
IIBM Institute of Business Management 11
a) The Affiliate
b) The Merchants
c) The Consumers
d) The Customers
88. __________ is refers to that free brand exposure free as merchant only pay for action.
a) Affiliate marketing
b) Digital Marketing
c) Strategic Marketing
d) None of these
89. Innovation and human desire for something newer and better are driving the rapid evolution of:
a) Laptop
b) Tablet
c) Mobile Device
d) Radio
90. Mobile gaming has been described as the wide-open battle ground of the:
a) Professional Industry
b) Application Industry
c) Entertainment Industry
d) All of these
91. For mobile marketing to work, consumers need to have confidence that their privacy will be________
a) Well crafted
b) Imaginative
c) Entertaining
d) Protected
92. Lots of energy and investment currently flowing into_______
a) Mobile cloud
b) Mobile data
c) Mobile Privacy
d) Mobile Apps
93. Technology has enhanced the process of refining the_________
a) Brand & quality
b) Products & brand
c) Products & Service
d) Quality & Quantity
94. What type of Marketing, Uniquely allows us to both broaden our scope and narrow our focus at the
same time_________
a) Digital Marketing
b) E-mail Marketing
c) Direct Marketing
d) All of these
95. Which one of the following is used for exchanging SMS messages.
a) SMPP
b) SMSC
c) SMS
d) SIM
Examination Paper of Digital Marketing Professional
IIBM Institute of Business Management 12
96. The Technology that allows user to store video content on their computer for viewing at a later date is
known as________
a) Deep-linking
b) Uploading
c) Downloading
d) None of these
97. Web design software that creates animation interactive elements and quick to download is:
a) Flash
b) Coral
c) Photoshop
d) Flash Impression
98. A group of computer connected together which are at one physical location is.
a) MAN
b) LAN
c) WAN
d) Link
99. The area where an Advertising is displayed/placed within a publisher’s mobile content is:
a) Placement
b) Podcasting
c) Pharming
d) Phishing
100. When a user makes a purchase from online advertiser is called______
a) Buy
b) Sale house
c) Sale
d) Both (a) & (c)
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Strategic Management
MM.100
Section A: Objective Type & Short Questions (30 marks)
Part one:
Multiple choice:
I. Horizontal integration is concerned with
(1)
a) Production
b) Quality
c) Product planning
d) All of the above
II. It refers to formal and informal rules, regulations and procedures that complement the company structure (1)
a) Strategy
b) Systems
c) Environment
d) All of the above
III. Strategic management is mainly the responsibility of (1)
a. Lower management
b. Middle management
c. Top management
d. All of the above
IV. Formal systems are adopted to bring ________ & amalgamation of decentralized units into product groups.
(1)
a. Manpower
b. Co-ordination
c. Production
d. All 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 Strategic Management
IIBM Institute of Business Management
IV.Like roots of a tree, ________of organization is hidden from direct view. (1)
a. Performance
b. Strategy
c. Core competence
d. All of the above
V. The actual performance deviates positively over the budgeted performance. This is an indication of ……….. Performance. (1) a. Superior b. Inferior c. Constant d. Any of the above
VI. Criteria for making an evaluation is (are)
(1)
a. Consistency with goals
b. Consistency with environment
c. Money
d. All of the above
VII. Changes in company ………. also necessitates changes in the systems in various degrees (1)
a. structure
b. system
c. strategy
d. turnover
VIII. Micro environment is the ………. environment of a company. (1)
a. Working
b. Human
c. External
d. Internal
X Techniques used in environmental appraisal are (1)
a.Single-variable
extrapolation/multivariable
interaction analysis
b.Structured/ unstructured
expert/inexpert opinion
c.Dynamic modes and mapping
d.All of the above
Part Two:
1. Distinguish between a strategy and tactics. (5)
2. Give an outline of relation between ‘Strategy and Customer’ in brief? (5)
3. Explain in brief the concept of strategic thinking? (5)
4. What are the basic elements of planning? (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 Strategic Management
Caselet 1
Apple’s profitable but risky strategy
When Apple’s Chief Executive – Steven Jobs – launched the Apple iPod in 2001 and the iPhone in 2007, he made a significant shift in the company’s strategy from the relatively safe market of innovative, premium-priced computers into the highly competitive markets of consumer electronics. This case explores this profitable but risky strategy.
Early beginnings
To understand any company’s strategy, it is helpful to begin by looking back at its roots. Founded in 1976, Apple built its early reputation on innovative personal computers that were particularly easy for customers to use and as a result was priced higher than those of competitors. The inspiration for this strategy came from a visit by the founders of the company – Steven Jobs and Steven Wozniack – to the Palo Alto research laboratories of the Xerox Company in 1979. They observed that Xerox had developed an early version of a computer interface screen with the drop-down menus that are widely used today on all personal computers. Most computers in the late 1970s still used complicated technical interfaces for even simple tasks like typing – still called ‘word-processing’ at the time.
Jobs and Wozniack took the concept back to Apple and developed their own computer – the Apple Macintosh (Mac) – that used this consumer-friendly interface. The Macintosh was launched in 1984. However, Apple did not sell to, or share the software with, rival companies. Over the next few years, this non-co-operation strategy turned out to be a major weakness for Apple.
Battle with Microsoft
Although the Mac had some initial success, its software was threatened by the introduction of Windows 1.0 from the rival company Microsoft, whose chief executive was the well-known Bill Gates. Microsoft’s strategy was to make this software widely available to other computer manufacturers for a license fee – quite unlike Apple. A legal dispute arose between Apple and Microsoft because Windows had many on-screen similarities to the Apple product. Eventually, Microsoft signed an agreement with Apple saying that it would not use Mac technology in Windows 1.0. Microsoft retained the right to develop its own interface software similar to the original Xerox concept.
Coupled with Microsoft’s willingness to distribute Windows freely to computer manufacturers, the legal agreement allowed Microsoft to develop alternative technology that had the same on-screen result. The result is history. By 1990, Microsoft had developed and distributed a version of Windows that would run on virtually all IBM-compatible personal computers – see Case 1.2. Apple’s strategy of keeping its software exclusive was a major strategic mistake. The company was determined to avoid the same error when it
IIBM Institute of Business Management
Examination Paper of Strategic Management
came to the launch of the iPod and, in a more subtle way, with the later introduction of the iPhone.
Apple’s innovative products
Unlike Microsoft with its focus on a software-only strategy, Apple remained a full-line computer manufacturer from that time, supplying both the hardware and the software. Apple continued to develop various innovative computers and related products. Early successes included the Mac2 and PowerBooks along with the world’s first desktop publishing program – PageMaker. This latter remains today the leading program of its kind. It is widely used around the world in publishing and fashion houses. It remains exclusive to Apple and means that the company has a specialist market where it has real competitive advantage and can charge higher prices.
Not all Apple’s new products were successful – the Newton personal digital assistant did not sell well. Apple’s high price policy for its products and difficulties in manufacturing also meant that innovative products like the iBook had trouble competing in the personal computer market place.
Apple’s move into consumer electronics
Around the year 2000, Apple identified a new strategic management opportunity to exploit the growing worldwide market in personal electronic devices – CD players, MP3 music players, digital cameras, etc. It would launch its own Apple versions of these products to add high-value, user-friendly software. Resulting products included iMovie for digital cameras and I DVD for DVD-players. But the product that really took off was the iPod – the personal music player that stored hundreds of CDs. And unlike the launch of its first personal computer, Apple sought industry co-operation rather than keeping the product to itself.
Launched in late 2001, the iPod was followed by the iTunes Music Store in 2003 in the USA and 2004 in Europe – the Music Store being a most important and innovatory development. iTune was essentially an agreement with the world’s five leading record companies to allow legal downloading of music tracks using the internet for 99 cents each. This was a major coup for Apple – it had persuaded the record companies to adopt a different approach to the problem of music piracy. At the time, this revolutionary agreement was unique to Apple and was due to the negotiating skills of Steve Jobs, the Apple Chief Executive, and his network of contacts in the industry. Apple’s new strategy was beginning to pay off. The iPod was the biggest single sales contributor in the Apple portfolio of products.
In 2007, Apple followed up the launch of the iPod with the iPhone, a mobile telephone that had the same user-friendly design characteristics as its music machine. To make the iPhone widely available and, at the same time, to keep control, Apple entered into an exclusive contract with only one national mobile telephone carrier in each major country – for example, AT&T in the USA and O2 in the UK. Its mobile phone was premium priced – for
IIBM Institute of Business Management
Examination Paper of Strategic Management
example, US$599 in North America. However, in order to hit its volume targets, Apple later reduced its phone prices, though they still remained at the high end of the market. This was consistent with Apple’s long-term, high-price, high-quality strategy. But the company was moving into the massive and still-expanding global mobile telephone market where competition had been fierce for many years.
And the leader in mobile telephones – Finland’s Nokia – was about to hit back at Apple, though with mixed results. But other companies, notably the Korean company Samsung and the Taiwanese company, HTC, were to have more success later.
So, why was the Apple strategy risky?
By 2007, Apple’s music player – the iPod – was the premium-priced, stylish market leader with around 60 per cent of world sales and the largest single contributor to Apple’s turnover. Its iTune download software had been re-developed to allow it to work with all Windows-compatible computers (about 90 percent of all PCs) and it had around 75 percent of the world music download market, the market being worth around US$1000 million per annum. Although this was only some 6 percent of the total recorded music market, it was growing fast. The rest of the market consisted of sales of CDs and DVDs direct from the leading recording companies.
In 2007, Apple’s mobile telephone – the iPhone – had only just been launched. The sales objective was to sell 10 million phones in the first year: this needed to be compared with the annual mobile sales of the global market leader, Nokia, of around 350 million handsets. However, Apple had achieved what some commentators regarded as a significant technical breakthrough: the touch screen. This made the iPhone different in that its screen was no longer limited by the fixed buttons and small screens that applied to competitive handsets. As readers will be aware, the iPhone went on to beat these earlier sales estimates and was followed by a new design, the iPhone 4 in 2010.
The world market leader responded by launching its own phones with touch screens. In addition, Nokia also launched a complete download music service. Referring to the new download service, Rob Wells, senior Vice President for digital music at Universal commented: ‘This is a giant leap toward where we believe the industry will end up in three or four years’ time, where the consumer will have access to the celestial jukebox through any number of devices.’ Equally, an industry commentator explained: ‘[For Nokia] it could be short-term pain for long-term gain. It will steal some of the thunder from the iPhone and tie users into the Nokia service.’ Readers will read this comment with some amazement given the subsequent history of Nokia’s smart phones that is described in Case 9.2.
‘Nokia is going to be an internet company. It is definitely a mobile company and it is making good progress to becoming an internet company as well,’ explained Olli PekkaKollasvuo, Chief Executive of Nokia. There also were hints from commentators that Nokia was likely to make a loss on its new download music service. But the company was determined to ensure that Apple was given real competition in this new and unpredictable market.
IIBM Institute of Business Management
Examination Paper of Strategic Management
Here lay the strategic risk for Apple. Apart from the classy, iconic styles of the iPod and the iPhone, there is nothing that rivals cannot match over time. By 2007, all the major consumer electronics companies – like Sony, Philips and Panasonic – and the mobile phone manufacturers – like Nokia, Samsung and Motorola – were catching up fast with new launches that were just as stylish, cheaper and with more capacity. In addition, Apple’s competitors were reaching agreements with the record companies to provide legal downloads of music from websites.
Apple’s competitive reaction
As a short term measure, Apple hit back by negotiating supply contracts for flash memory for its iPod that were cheaper than its rivals. Moreover, it launched a new model, the iPhone 4 that made further technology advances. Apple was still the market leader and was able to demonstrate major increases in sales and profits from the development of the iPod and iTunes. To follow up this development, Apple launched the Apple Tablet in 2010 – again an element of risk because no one really knew how well such a product would be received or what its function really was. The second generation Apple tablet was then launched in 2011 after the success of the initial model. But there was no denying that the first Apple tablet carried some initial risks for the company.
All during this period, Apple’s strategic difficulty was that other powerful companies had also recognized the importance of innovation and flexibility in the response to the new markets that Apple itself had developed. For example, Nokia itself was arguing that the markets for mobile telephones and recorded music would converge over the next five years. Nokia’s Chief Executive explained that much greater strategic flexibility was needed as a result: ‘Five or ten years ago, you would set your strategy and then start following it. That does not work anymore. Now you have to be alert every day, week and month to renew your strategy.’
If the Nokia view was correct, then the problem for Apple was that it could find its market-leading position in recorded music being overtaken by a more flexible rival – perhaps leading to a repeat of the Apple failure 20 years earlier to win against Microsoft. But at the time of updating this case, that looked unlikely. Apple had at last found the best, if risky, strategy.
Questions
1. using the concepts in this chapter undertake a competitive analysis of both Apple and Nokia – who is stronger? (10)
2. What are the problems with predicting how the market and the competition will change over the next few years? What are the implications for strategy development? (10)
IIBM Institute of Business Management
Examination Paper of Strategic Management
Caselet 2
Mr. Ashwin is the marketing manager of the cosmetics. division of the Medwin Drug Company. The company was well known as a leader in new proprietary drug and toiletry products and had a good record of profitability. The cosmetics division had been especially successful in women’s toiletries and .1/4.-o..,unctitk.:s and in the introduction of new products, It always based its new-product development on market research respect to what Would appeal to women and, after almost invariably test marketing a new product in a few almost invarariably test marketing a new product in selected cities, launched it with a heavy advertising and sales promotion program. It had hoped in this way not only to get a large initial share of the markets but also to become so well entrenched that competitors. who soon copy a successful product would not dislodge it from its market share.
After being cautioned by the president of Medwin Drug about the necessity for watching costs more carefully, the division manager became increasingly concerned with two opposing factors in his marketing strategy: ( 1) test marketing of new products (offering them for sale first in a few test cities with area advertising and sales programs) tended increasingly to give competitors advance information on new products, and certain competitors had been able to copy a product almost as soon as Medwin could offer it nationally and profited thereby from Medwin’s advertising; and (2) national advertising and sales promotion expenses were rising so fast that a single major product failure would have an important impact on division profits, on which his annual bonus was primarily determined. On the one hand, he recognized the wisdom of test marketing, but he disliked the costs and dangers involved. On the other hand, he hardly wished to take an unknown risk of embarking on a national program until a test showed that the product did in fact have a good market demand. Yet, he wondered whether all products should be test marketed.
Mr. Ashwin was asked to put this problem to his marketing department subordinates and ask them what should be done. To give the strategy some meaning, he used as a case at point the company’s new hair conditioner which had been developed on the basis of promising, although preliminary, market research. He asked his sales manager whether he thought the product would succeed and what he thought his “best estimate” of sales would be. He also asked his advertising manager to give some cost estimates on launching the product.
Mr. Kiran, division sales manager, thought a while, then said he was convinced that the product was a winner and that his best estimate would be sales of Rs. 5 crores per year for at least five years. Mr. Desai, the advertising manager, said that the company could launch the product for a cost of Rs. 1 crore the first year and some Rs. 25 lakhs per year thereafter. He also pointed out that the test-marketing program would cost Rs. 15 lakhs, of which half would be saved if these test cities were merely a part of a national program, and that the testing program would delay the national program for six months. But he warned Mr. Ashwin that test marketing would save the gamble of so much money on the national promotion program. At this point, Mr. Sachdev, the new marketing research manager, suggested that the group might come to a better decision if they used a proper decision-making technique.
Question:
1. Which decision-making technique can be used in this situation? Why? (20)
IIBM Institute of Business Management
Examination Paper of Strategic Management
Section C: Applied Theory (30 marks)
1. What are the main characteristics of strategic decisions? (15)
2. What specific entrepreneurial aspects include the strategy formation process? (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


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Production and Operations Management
MM.100
Section A: Objective Type & Short Questions (30 marks)
Part one:
Multiple choice:
I.The purpose of the transportation approach for locational analysis is to minimize (1)
a) Total costs
b) Total shipping costs
c) Total variable costs
d) Total fixed costs
II. Which of the following would not generally be a motive for a firm to hold inventories? To (1)
e) Take advantage of quantity discounts
f) Minimize holding costs
g) Reduce stock out risks
h) Decouple production from distribution
III. Which of the following are assignable cause? (1)
a. Large variations in hardness of material
b. Tool wear
c. Errors in setting
d. All of the above
IV. Like roots of a tree, ________of organization is hidden from direct view.
(1)
a. Goodwill
b. Core competence
c. Higher management
d. Capital investment
 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 Production and Operations Management
IIBM Institute of Business Management
V.Inadequate production capacity ultimately leads to (1)
a. Poor quality
b. Poor Customer Service
c. Poor inventory control
d. All of the above
VI. Limitations of Traditional cost accounting are (1) a. Assumes factory as an isolated entity b. It measures only the cost of producing c. Both (A) and (B) d. None of the above
VII. Business is rated on which dimensions
(1)
a. Market attractiveness
b. Business strength
c. Both (A) and (B)
d. None of the above
VIII. How does ‘structure’ reduce external uncertainty arising out of human behavior (1)
a. Research and planning
b. Forecasting
c. Both (A) and (B)
d. None of the above
IX. Objective of Work Study is to improve _______ (1)
a. Cycle time
b. Productivity
c. Production
d. All of the above
X. Which of the following are activities of corrective maintenance? (1)
a. Overhauling
b. Emergency repairs
c. Modifications and improvements
d. All of the above
Part Two:
1. What are the dimensions of quality? (5)
2. What is Quality? (5)
3. What is Materials Planning? (5)
4. Need for Inventory Management – Why do Companies hold inventories? (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 Production and Operations Management
Caselet 1
The pizza business did well and by 1965, Thomas was able to open two more stores in the town -Pizza King and Pizza from the Prop. Within a year, Varti opened a pizza store in a neighborhood town with the same name, DomiNick’s Pizza. Thomas decided to change the name of his first store, DomiNick’s Pizza, and one of his employees suggested the name Domino’s Pizza(Domino’s). The advantage of this name Thomas felt was that it would be listed after DomiNick in the directory. Domino’s philosophy rested on two principles – limited menu and delivering hot and fresh pizzas within half-an-hour. In 1967, it opened the first franchise store in Ypsilanti, and in 1968, a franchise store in Burlington, Vermont. However, the company ran into problems when its headquarters (the first store) and commissary were destroyed by fire. In the early 1970s, the company faced problems again when it was sued by Amstar, the parent company of Domino Sugar for trademark infringement. Thomas started looking for a new name and came up with Red Domino’s and Pizza’s Dispatch. However, there wasn’t any need for it because Domino’s won the lawsuit in 1980.In 1982, Domino’s Pizza established Domino’s Pizza International (DPI) that was made responsible for opening Domino’s stores internationally. The first store was opened in Winnipeg, Canada. Within a year, DPI spread to more than 50 countries and in 1983, it inaugurated its1000th store. Around the same time, new pizza chains like Pizza Hut and Little Caesar established themselves in the USA. Domino’s Pizza faced intense competition because it had not changed its menu of traditional hand-tossed pizza. The other pizza chains offered low-priced breadsticks, salads and other fast food apart from pizzas. Domino’s faced tough competition from Pizza Hut in the home delivery segment also. Little Caesar was eating into Domino’s market share with its innovative marketing strategies. By 1989, Domino’s sales had reduced significantly and cash flows were affected due to the acquisition of assets. In 1993, Thomas took measures to expand Domino’s product line, in an attempt to revive the company and tackle competition. The company introduced pan pizza and bread sticks in the USA. In late 1993, Domino’s introduced the Ultimate Deep Dish Pizza and Crunchy Thin Crust Pizza. In 1994, it rolled out another non-pizza dish – Buffalo wings. Though Domino’s did not experiment with its menu for many years, the company adopted innovative ways in managing a pizza store. Thomas gave about 90% of the franchisee agreements in the USA to people who had worked as drivers with Domino’s. The company gave ownership to qualified people, after they had successfully managed a pizza store for a year and had completed a training course. Domino’s also gave franchises to candidates recommended by existing franchisees. Outside the USA, most of Domino’s stores were franchise-owned. Domino’s was also credited for many innovations in the pizza industry and setting standards for other pizza companies. It has developed dough trays, corrugated pizza boxes, insulated bags for delivering pizzas, and conveyor ovens.
In 1993, Domino’s withdrew the guarantee of delivering pizzas within 30-minutes of order andstarted emphasizing on Total Satisfaction Guarantee (TSG) which read: “If for any reason, you are dissatisfied with your Domino’s Pizza dining experience, we will re-make your pizza or refund your money.” Domino’s entered India in 1996 through a franchise agreement with VamBhartia Corp in Delhi. With the overwhelming success of the first outlet, the company opened another outlet in Delhi. By 2000, Domino’s had outlets in all major cities in India. When
IIBM Institute of Business Management
Examination Paper of Production and Operations Management
Domino’s entered India, the concept of home delivery was still in its nascent stages. It existed only in some major cities and was restricted to delivery by the friendly neighborhood fast food outlets. Eating out at ‘branded’ restaurants was more common. To penetrate the Indian market, Domino’s introduced an integrated home delivery system from a network of company outlets within 30 minutes of the order. Goutham Advani (Advani), Chief of Marketing, Domino’s Pizza India, said, “What really worked its way into the Indian mind set was the promised 30-minute delivery.” Domino’s also offered compensation: Rs.30/- off the price tag if there was a delay in delivery. For the first 4 years in India, Domino’s concentrated on its ‘Delivery’ strategy.
Domino’s Logistics Model
Analysts felt that Domino’s took a cue from McDonald’s supply chain model. However, they opined that the level of complexity in McDonald’s system in India was not as high as that of Domino’s. Commented Bhatia ,”McDonald’s operations are not as spread out as ours. They are in four cities while we are in 16.Centralizing wouldn’t work on such a geographical scale”. The logistics model adopted by Domino’s offered some obvious benefits including lower transportation costs, cheaper procurement and economies of scale. Domino’s had already cut out the duplication in procurement and processing of raw materials across each of the three commissaries. The old model of self-contained commissaries had another disadvantage: adding new outlets did not translate into greater economies of scale. Bhatia planned to extend the model to other parts of the country as well. The commissary was to be located near the largest market in that region. Bhatia said, “Our roll-out began only after we mapped out our procurement strategy.” Based on the agricultural map of India, Domino’s looked McDonald’s had one of the best logistics models in India. To maintain consistency and quality of its products, McDonald’s shipped all the raw materials lettuce, patties et al to a cold storage close to the main market. Based on a daily demand schedule that was prepared a day in advance, the required amount of raw material was transported to individual outlets to get the best product at the lowest cost.
Thus, tomatoes would come from Bhubaneswar, spices from the south, baby corn from Nepal (where it’s 40% cheaper than in India) and vegetables from Sri Lanka. Similarly, Domino’s India planned to extend its operations to Nepal, Sri Lanka and Dhaka. The company planned to establish a commissary in Sri Lanka. Domino’s also identified specialty crops in each region. The commissary in that region was entrusted with the task of processing that specialty crop. For instance, the commissary for the eastern region in Kolkata was responsible for buying tomatoes, processing them and then sending them to all the other commissaries. Similarly, the northern commissary had to deliver pizza bases. This way, Domino’s minimized duplication as well as the dangers of perish ability. Once the new model was formalized, Bhatia planned to use Domino’s 25 refrigerated trucks to transport products for other companies on the same route. For instance, if an operator in Kochi(Kerala) needed to transport specialty cheese, he could use the Domino’s fleet to transport his products. Said Bhatia, “Not too many people have refrigerated trucks in the country. And we can offer them quality service because we will be giving them standards we use for ourselves.” Company sources said that enquiries from clients for such transport facilities had started coming in. Bhatia said he was in the process of selecting a person to head the logistics operation, which would be spun off as a separate profit centre. Bhatia seemed confident that the profit centre had the potential to bring in Rs 10 by 2006. However, he said the profit center would not be allowed to impede the growth of the pizza
IIBM Institute of Business Management
Examination Paper of Production and Operations Management
business, Domino’s core operation. Only those deliveries that did not delay or deroute the truck would be considered
Questions
1. Describe about the Article for Logistics and Operations Management Domino’s Pizza’s Process Technology (20)
Caselet 2
ABC Ltd. is the country’s largest manufacturer of spun yarn with well-established market. ABC Ltd. has good reputation for quality and service. Their marketing department identified that the potential for global market is expanding rapidly and hence the company undertook exercise for expansion of the capacity for export market. The company formed team of Marketing and Materials department to study the global logistics possibilities. After extensive study, the team came up with a report on global logistics and submitted that global logistics is essentially same as domestic due to following similarities: • The conceptual logistics framework of linking supply sources, plants, warehouses and customers is the same. • Both systems involve managing the movement and storage of products. • Information is critical to effective provision of customer service, management of inventory, vendor product and cost control. • The functional processes of inventory management, warehousing, order processing, carrier selection, procurement, and vendor payment are required for both. • Economic and safety regulations exist for transportation. The company had very economical and reliable transportation system in existence. For exports as well they decided to evaluate capabilities of their existing transporter and entrusted them with the job of transport till port. For customs formalities they engaged a good CHA after proper cost evaluation and entered into contract for freight with shipping company agent. The response for company’s export was very good and the company could get as many as 15 customers within first two months and reached to a level of USD 250,000 per month by the end of first half of the year. Based on this response the export volumes were expected to grow to a level of USD 400,000 per month by the end of the year. When the review was made at the end of the year, company found that export volumes had in fact come down to the level of USD 120,000 which was much lower than it had reached in the first half of the year. The managing committee had an emergency meeting to discuss this and the export manager was entrusted with the task of identifying the reasons for this decline. Mr. Ganesh decided to visit the customers for getting the first hand information. When he discussed the matter with the customers, the feedback on the quality and price were good but the customers were very upset on the logistic services due to delayed shipments, frequent changes in shipping schedules, improper documentation, improper identifications, package sizes, losses due to transit damages etc. After coming back, the export manager checked the dispatch schedules and found that production and ex-works schedules were all proper. Then he studied the logistics systems and found that the logistics cost was very high and all the logistics people were demotivated due to the overwork and were complaining of total lack of co-ordination and the system had become totally disorganized.
Questions
1. Explain the problems experienced by ABC Ltd. What is the main cause of these problems? (20)
END OF SECTION B
IIBM Institute of Business Management
Examination Paper of Production and Operations Management
Section C: Applied Theory (30 marks)
1. The Advantages & Disadvantages of Economic Order Quantity (EOQ)? (15)
2. Distinguish between just-in-time and just-in-case as stock management systems?(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


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Management Information Systems
MM.100
Section A: Objective Type & Short Questions (30 marks)
Part one:
Multiple choice:
I.A person machine-system and a highly integrated grouping of information-processing functions designed to provide management with a comprehensive picture of specific operation is called (1)
a) DSSB
b) MISC
c) IISD
II. Which one of the following is not an important characteristic of useful and effective information? (1)
a) Accuracy
b) Timelines
c) Completeness
d) Economy
d) All of the above
III. The most important reason for failure of MIS is (1)
a) Use of improper tools for design
b) Noninvolvement of end-user
c) Improper specification
d) None of the above
IV. Top level Managers use (1)
a) Strategic information
b) Tactical information
c) Operational information
d) None of these
V.System is an important factor of MIS. There are various types of systems. Which one of the following is not a system? (1)
a) Physical system
b) Integrated system
c) Open system
d) Open system
VI. Which one of the following is not an approach for development of MIS? (1) a) Hierarchical approach b) Integrative approach c) Modular approach d) Elective approach
 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 Management Information Systems
IIBM Institute of Business Management
VII. Management is linked to information by (1)
a. Decisions
b. Data
c. Both [A] And [B]
d. None Of The Above
VIII. Which pattern reflects a pure executive form of management?
(1)
a. Functional
b. Line
c. Line and Staff
d. Committee
IX. The term financial engineering is related to (1)
a) Cost of production
b) Financial restructuring
c) Product planning
d) Capital issue
X. The goal of financial management is to (1)
a) Maximize the wealth of preference share holders
b) Maximize the wealth of debenture holders
c) Maximize the wealth of equity share holders
d) All of the above
Part Two:
1. What is purpose of information system from a business perspective? (5)
2. What are Enterprise System? How do they benefit businesses? (5)
3. Differentiate DSS from MIS. (5)
4. What do you mean by Data visualizations? (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 Management Information System
Caselet -1
A waiter takes an order at a table, and then enters it online via one of the six terminals located in the restaurant dining room. The order is routed to a printer in the appropriate preparation area: the cold item printer if it is a salad, the hot-item printer if it is a hot sandwich or the bar printer if it is a drink. A customer’s meal check-listing (bill) the items ordered and the respective prices are automatically generated. This ordering system eliminates the old three-carbon-copy guest check system as well as any problems caused by a waiter’s handwriting. When the kitchen runs out of a food item, the cooks send out an ‘out of stock’ message, which will be displayed on the dining room terminals when waiters try to order that item. This gives the waiters faster feedback, enabling them to give better service to the customers. Other system features aid management in the planning and control of their restaurant business. The system provides up-to-the-minute information on the food items ordered and breaks out percentages showing sales of each item versus total sales. This helps management plan menus according to customers’ tastes. The system also compares the weekly sales totals versus food costs, allowing planning for tighter cost controls. In addition, whenever an order is voided, the reasons for the void are keyed in. This may help later in management decisions, especially if the voids consistently related to food or service. Acceptance of the system by the users is exceptionally high since the waiters and waitresses were involved in the selection and design process. All potential users were asked to give their impressions and ideas about the various systems available before one was chosen.
Questions
1. What would make the system a more complete MIS rather than just doing transaction processing? (10)
2. Explain the probable effects that making the system more formal would have on the customers and the management? (10)
Caselet 2
The Company is considered to be a leader in the design and production of industrial and commercial air-conditioning equipment. While most of the products were standard items, a considerable number involving large sales volume were specially designed for installation in big office buildings and factories. Besides being an innovator in product design and having an exceptionally good customer service department, the company is well known for its high-quality products and its ability to satisfy the customer requirements promptly.
Because of its rapid growth, the company had to be careful with its cash requirements, especially for accounts receivable and for inventories. For many years, the company had kept inventories under close control at a level equal to 1.7 times the monthly sales, or a turnover of nearly 6 times per year. But, all of a sudden, inventories soared to triple monthly sales, and the company found itself with Rs.30 crores of inventories above a normal level. Calculating a cost of carrying inventory at 30 percent of the value of
IIBM Institute of Business Management
Examination Paper of Management Information System
inventories (including the cost of money, storage and handling, and obsolescence), it was estimated that this excess inventory was costing the company Rs.9 crores per year in profits before taxes. In addition, it forced the to call on its bank for more loans than had company been expected.
Mr. Dcepak Mehra, president of Connair, was understandably worried and incensed when this matter came to his attention. He was told that the primary reasons for this rise in inventory were excessive buying of raw materials in advance because of anticipated shortages and the failure of a new computer software, with the result the people in the production and purchasing departments were not having complete information as to what was happening to inventory for several months.
Mr. Mehra, taking the stand that no company should let something like this surplus inventory occur without advance notice and that no manager can be expected to control a business on the basis of history, instructed his vice-president for finance to come up with a program to get better control of inventories in the future.
Questions for Discussion:
1. What do you find wrong with Connair’s controls? (10)
2. Are there any other techniques or approaches to control that you would suggest? (10)
Section C: Applied Theory (30 marks)
1. List and describe the information systems serving each of the major functional areas of business? (15)
2. What are the characteristics of MIS? How MIS do differs from TPS? (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


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Examination Paper Business Communication

Section A: Objective Type & Short Questions (30 marks)
Part one:
Multiple choice:
I.The most important goal of business communication is_________. (1)
a) favorable relationship between sender and receiver
b) organizational goodwill
c) receiver response
d) receiver understanding
II. Down ward communication flows from_________ to_________. (1)
e) Upper to lower
f) Lower to upper
g) Horizontal
h) Diagonal
III. Horizontal communication takes place
between_________. (1)
a. superior to subordinate
b. subordinate to superior
c. employees with same status
d. none of these
IV. The study of communication through touch is_________. (1)
a. chronemics
b. haptics
c. proxemics
d. semantic
V._____________ channel of communication is known as grapevine (1)
a. Formal
b. Informal
c. Horizontal
d. Vertical
VI. The following is (are) the most effective ways of communication. (1) a. Verbal b. Non verbal c. Written d. All of the above
Examination Paper of Business Communication

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).
VII. The handshake that conveys confidence is (1)
a. Limp
b. Firm
c. Loose
d. Double
VIII. ________ of the letter consists of main message. (1)
a. Heading
b. Body
c. Greeting
d. Closing
IX. Body of a letter is divided into ________
parts. (1)
a. 1
b. 2
c. 3
d. 4
X. X. A persuasive message will fail if_____ (1)
a. it does not focus on what is in it for the reader
b. it only lists facts
c. it moves too slowly
d. all of the above
Part Two:
1. Brief Grapevine communication? (5)
2. List the 7 C’s of Communication? (5)
3. Describe the various barriers of communication? (5)
4. Write the negotiation process. (5)
Section B: Caselets (40 marks)
Caselet 1
Barry and Communication Barriers Effective Communication as a Motivator One common complaint employees voice about supervisors is inconsistent messages – meaning one supervisor tells them one thing and another tells them something different. Imagine you are the supervisor/manager for each of the employees described below. As you read their case, give
Examination Paper of Business Communication

consideration to how you might help communicate with the employee to remedy the conflict. Answer the critical thinking questions at the end of the case then compare your answers to the Notes to Supplement Answers section. Barry is a 27-year old who is a foodservice manager at a casual dining restaurant. Barry is responsible for supervising and managing all employees in the back of the house. Employees working in the back of the house range in age from 16 years old to 55 years old. In addition, the employees come from diverse cultural and ethnic backgrounds. For many, English is not their primary language. Barry is Serv Safe® certified and tries his best to keep up with food safety issues in the kitchen but he admits it’s not easy. Employees receive “on the job training” about food safety basics (for example, appropriate hygiene and hand washing, time/temperature, and cleaning and sanitizing). But with high turnover of employees, training is often rushed and some new employees are put right into the job without training if it is a busy day. Eventually, most employees get some kind of food safety training. The owners of the restaurant are supportive of Barry in his food safety efforts because they know if a food safety outbreak were ever linked to their restaurant; it would likely put them out of business. Still, the owners note there are additional costs for training and making sure food is handled safely. One day Barry comes to work and is rather upset even before he steps into the restaurant. Things haven’t been going well at home and he was lucky to rummage through some of the dirty laundry and find a relatively clean outfit to wear for work. He admits he needs a haircut and a good hand scrubbing, especially after working on his car last evening. When he walks into the kitchen he notices several trays of uncooked meat sitting out in the kitchen area. It appears these have been sitting at room temperature for quite some time. Barry is frustrated and doesn’t know what to do. He feels like he is beating his head against a brick wall when it comes to getting employees to practice food safety. Barry has taken many efforts to get employees to be safe in how they handle food. He has huge signs posted all over the kitchen with these words: KEEP HOT FOOD HOT AND COLD FOOD COLD and WASH YOUR HANDS ALWAYS AND OFTEN. All employees are given a thermometer when they start so that they can temp food. Hand sinks, soap, and paper towels are available for employees so that they are encouraged to wash their hands frequently.
Questions
1. What are the communication challenges and barriers Barry faces? (10)
2. What solutions might Barry consider in addressing each of these challenges and barriers? (10)
Caselet 2
Mr. Dutta, newly appointed president of century Airlines, knew the company’s survival depended on customer service, which in turn depended on motivated employees. So he created the Century Spirit program to build team spirit by encouraging employee participation, individual initiative, and open communication. Among the program’s early successes was newspaper started by a group of flight attendants. The plane truth published information about benefits and work conditions as well as feature stories and humorous articles. It quickly became popular not only with flight attendant but with pilot, machinists, and baggage handlers.
As time went on, though, the plane truth began to run articles critical of the company. When management cut back worker’s hours, the, newspaper questioned what sacrifices the executive were making. When the technical services department releases figures showing long turnaround times, the paper questioned the machinist’s work ethic. Worried that customer might see the newspaper; Mr. Dutta wanted to cancel it. The president of the flight attendants union also wanted to see it was stirring up trouble with the machinists.
Examination Paper of Business Communication
IIBM Institute of Business Management
• 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
Ms. Rachel, Century’s human resource director, was asked to stop the publication. But she hesitated. She knew the employee morale was on the brink, but she did not know whether the newspaper was venting worker’s frustrations and reinforcing team spirit or stirring up old animosities and bringing the whole company down. Was it creating more tension than unity or vice-versa?
Questions
1. What Communication issues are involved at Century Airlines? (10)
2. What Communication Channels are being Utilized (10)
Section C: Applied Theory (30 marks)
1. Explain the various non verbal communications with an example in business
Scenario? (15)
2. Delineate the types of parts of business report writing? (15)


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Strategic Management
Section A: Objective Type (30 marks)
 This section consists of multiple choice questions & Short notes type questions.
 Answer all the questions.
 Part one questions carry 1 mark each & Part two questions carry 5 marks each.
Part One:
Multiple choices:
1. A plan of action designed to achieve a particular goal is:
a. Tactic
b. Strategy
c. Financial benefits
d. None of the above
2. It is important to develop mission statement for:
a. Allocating organizational resources
b. Provide useful criteria
c. Company creed
d. Customer orientation
3. The five forces model was developed by :
a. Airbus
b. Karin Larsson
c. Michael E.Porter
d. Boeing
4. How many elements are involve in developing in an organizational strategy:
a. Six
b. Two
c. Four
d. Nine
5. The three important steps in SWOT analysis are:
a. Identification, Conclusion, Translation
b. Opportunities, Threats, Strengths
c. People, Corporate cultures, Labour
d. Power, Role, Task
Examination Paper: Semester II
IIBM Institute of Business Management
6. GE matrix consists of how many cells?
a. Nine cells
b. Six cells
c. Eight cells
d. Three cells
7. Which of these is the type of Games:
a. Simultaneous Games
b. Sequential Games
c. Repeated Games
d. All of the above
8. SBU stands fora.
Simple Basic Unit
b. Strategic Basic Unit
c. Strategic Business Unit
d. Speed Business Unit
9. The BCG matrix is known as:
a. Growth share matrix
b. Directional policy matrix
c. GE nine-cell matrix
d. Space matrix
10. ______________ specifies sales revenues and selling distribution and marketing costs.
a. Financial budget
b. Sales budget
c. Operating budget
d. Expenses budget
Part Two:
1. What are the dimensions of Strategic management?
2. Critically analyze the concept of BCG Matrix.
3. What is SWOT analysis?
4. What are the characteristics of Short-term Objectives?
END OF SECTION A
Examination Paper: Semester II
IIBM Institute of Business Management
Section B: Case lets (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).
Case let 1
National Competitive Advantage of IKEA Group, a Swedish company founded in 1943 with its
headquarters in Denmark, is a multinational operator of a chain of stores for home furnishing and
furniture. It is the world’s largest retailer, which specializes, in stylish but inexpensive Scandinavian
designed furniture. At the end of 2005 the IKEA Group of Companies had a total of 175 stores in 31
countries. In addition there are 19 IKEA stores owned and run by franchisees, outside the IKEA store
around the world.
In Sweden, nature and a home both play a big part in people’s life. In fact one of the best ways to describe
the Swedish home furnishing style is to describe nature-full of light and fresh air, yet restrained and
unpretentious.
To match up the artist Carl and Karin Larsson combined classical influences with warmer Swedish folk
styles .They created a model of Swedish home furnishing design that today enjoys world-wide renown. In
the 1950s the styles of modernism and functionalism developed at the same time as Sweden established a
society founded on social equality .The IKEA product range –The IKEA product range- modern but not
trendy, functional yet attractive, human-centered and child friendly – carries on these various Swedish
home furnishing traditions.
The IKEA Concept, like lots founder, was born in Samaland. This is a part of Southern Sweden where the
soil is thin and poor. The people are famous for working hard, living on small means and using their
heads to make the best possible use of the limited resources they have. This way of doing things is at the
heart of the IKEA approach to keeping prices low.
IKEA was founded when Sweden was fast becoming an example of the caring society, where rich and
poor alike were well looked after. This is also a theme that fits well with the IKEA vision. In order to give
the many people a better everyday life, IKEA asks the customer to work as a partner. The product range is
child-friendly and covers the need of the whole family, young and old. So together we can a better
everyday life for everyone.
In addition to working about around 1,800 different suppliers across the world, IKEA produces many of
its own products through sawmills and factories in the IKEA industrial group, Swedwood.
Swedwood also has a duty to transfer knowledge to other suppliers, for example by educating them in
issues such as efficiency, quality and environmental work.
Swedwood has 35 industrial units in 11 countries.
Examination Paper: Semester II
IIBM Institute of Business Management
Purchasing: IKEA has 42 Trading Service Offices (TSO’s) in 33 countries. Proximity to their suppliers
is the key to rational, long term cooperation. That’s why TSO co-workers visit suppliers regularly to
monitor production, test new ideas, negotiate prices and carry out quality audits and inspection.
Distribution: The route from supplier to customer must be as direct, cost- effective and environmentally
friendly as possible. Flat packs are important aspects of this work: eliminating wasted space means we
can transport and store goods more efficiently. Since efficient distribution plays a key role in the work of
creating the low price, goods routing and logistics are a focus for constant development.
The business Idea: The IKEA business idea is to offer a wide range of home furnishings with good design
and function at prices so low that as many people as possible will be able to afford them. And still have
many left! The company targets the customer who is looking for value and is willing to do a little bit of
work serving themselves, transporting the items home and assembling the furniture for a better price. The
typical IKEA customer is young low to middle income family.
The Competition Advantage: The competition advantage strategy of IKEA’s product is reflected through
IKEA’s success in the real industry. It can be attributed to its vast experience in the retail market, product
differentiation, and cost leadership.
IKEA Product Differentiation: A wide product range The IKEA product range is wide and versatile in
several ways. First, it’s versatile in function. Because IKEA think customer, shouldn’t have to run from
one small specialty shop to another to furnish their home, IKEA gather plants, living room furnishings,
toys , frying pans, whole kitchens i.e.; everything which in a functional way helps to build a home – in
one place , at IKEA stores.
Second, it’s wide in style. The romantic at heart will find choices just as many as the minimalist at IKEA.
But There is only one thing IKEA don’t have, and that is, the far- out or the over-decorated. They only
have what helps build a home that has room for good living.
Third, by being coordinated, the range is wide in function and style at the same time. No matter which
style you prefer, there’s an armchair that goes with the bookcase that goes with the new extending table
that goes with the armchair. So their range is wide in a variety of ways.
Cost Leadership: A wide range with good form and function is only half the story. Affordability has a part
to play – the largest part. A wide range with good form and function is only half the story. Affordability
has a part to play- the largest part. And the joy of being able to own it without having to forsake
everything else. And the customers help, too, by choosing the furniture, getting it at the warehouse,
transporting it home and assembling it themselves , to keep the price low.
Questions
1. Do you think that IKEA has been successful to utilize Porter’s Five force analysis?
Give reasons.
2. Where do you think can IKEA improve?
Examination Paper: Semester II
IIBM Institute of Business Management
Case let 2
For ITC Ltd., 2007-2008 continued to be year of quiet growth. Just more launches in its relatively new
segment of non-cigarettes fast moving consumer goods, and solid growth. As in the past few years, ITC’s
non-cigarettes businesses continued to grow at a scorching pace, accounting for a bigger share of overall
revenues. “The non-cigarette portfolio grew by 37.6% during 2006-2007 and accounted during that year
for 52.3% of the company’s net turnover.” An ITC spokesman said. In fact, over the first three quarters of
2007-08, ITC’s non-cigarette FMCG businesses have grown by 48% on the same period last year,
“Indicating that its plans for increasing market share and standing are succeeding.”
The branded packaged foods business continued to expand rapidly, with the focus on snacks range Bingo.
The biscuit category continued its growth momentum with the ‘Sun feast’ range of biscuits launching
‘Coconut’ and ‘Nice’ variants and the addition of ‘ Sunfeast BenneVita Flaxseed’ biscuits. Aashirwad atta
and kitchen ingredients retained their top slots at the national level, with the spices category adding an
organic range. In the confectionery category which grew by 38% in the third quarter, ITC cited AC
Nielsen data it claims market leader status in throat lozenges. Instant mixes and pasta powdered the sales
of its ready to eat foods under the kitchens of India and Aashirwad brands.
In Lifestyle apparel, ITC launched Miss Players fashion wear for young women to compliment its range
for men.
Overall, the biscuit category grew by 58% during the last quarter, ready to eat foods under the kitchens of
India and Aashirwad brands by 63% and the lifestyle business by 26%.
For the Industry, the most significant initiative to watch the ITC foray into premium personal care
products with its Fiama Di Wills range of shampoos , conditioners, shower gels, and soaps. In the popular
segment, ITC has launched a range of soaps and shampoos under the brand name Superia.
Ravi Naware, Chief executive of ITC’s food business was quoted recently as saying that the business will
make a positive contribution to ITC’s bottom line in the next two to three years.
In hotels, ITC’s Fortune Park brand was making the news during the year, with a rapid rollout of first
class business hotels.
In the agri-business segment, the e-choupal network is trying out a pilot in retailing fresh fruits and
vegetables. The e-choupals have already specialized in feeding ITC high quality wheat and potato, among
other commodities grown by farmers with help from e-choupal.
Questions:
Q1. Do you think the progress of ITC Ltd. is realistic?
Q2. After analyzing the above case, do you think every company should aim at cost leadership with high
quality product?
END OF SECTION B
Examination Paper: Semester II
IIBM Institute of Business 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 form the part of your answer (Word limit 200 to 250 words).
1. What are the basic principles of Organizational structure? What are the types of
Organizational structures?
2. Though BCG matrix can be very helpful in forcing decisions in managing a
portfolio of products, it can be employed as a sole men of determining strategies
for a portfolio of the product. Do you agree with this statement or not? Why or
why not?
END OF SECTION C
S-1-280111


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Caselet 1
Export Marketing:
The trade in black pepper is unhappy that exports may not show a sign of revival in prices in the
immediate future. World prices have been showing a downward trend for eighteen months and this has
resulted in much lower earnings for exporters. The UK, West Germany and the Netherlands have cut
their import requirement though the American demand has shown some growth. Brazil has been
resorting to aggressive selling at lower prices and the expectations are that its exports will reach an alltime
peak of 32,000 tones in the 1981-82 season. The 1981-82 Indian season is only about six weeks
away. The Brazilian offensive has forced India to withdraw so to any from the US and West European
markets and increase its reliance on communist buyers. As many as 1980-81.the Soviet Union alone
accounting for 12,647 tones. But exporters are concerned at the diversion on such a scale of this trade.
Questions:
1. Had you been the pepper exporter, what would be your short term and medium-term export
marketing strategy in the above environment?
2. Could you examine the weak points in this case study?
Caselet 2
SMART KIDS – SELLING EDUCATIONAL GAMES AND
RESOURCES TO THE WORLD
Smart Kids Ltd. An Auckland company that makes educational games and resources to read and
understand math‟s has won a Trade New Zealand Export Award for its success in international markets
in 2003.Established eight years ago in the family home basement, Smart Kids is led by husband and
wife team, joint chief executives David and Sun Milne and their sons Duncan and Frase. She Milne, an
ex-teacher, says from just 30 products when it started, the company produces more than 200 produces
catering for student‟s activities, grammar concepts and numeracy. She says the international appeal of
Smart Kids products was highlighted recently, when company‟s SMART PHONICS was listed amongst
the top five products out of almost 100 in the education trade show in the United Kingdom. The key
requirement for every new Smart Kids products is that it stimulates student‟s minds in the classroom,
teaches them a specific concept easily, enjoyably and permanently and enables problem solving. David
Milne says Smart Kids started selling its educational games and resources to New Zealand schools in
1995, drawings an immediate and strong response. It quickly became apartment that the New Zealand
market was not large enough to sustain considerable investment in product development, and secondly,
that their products have done so well that they deserved wider exposure.”Our export research came
down to two options. Find educational distributors in other countries or set-up our own operations. The
first option was less risky and easy to manage but it meant that Smart Kids products were lost in a wide
range of materials. So we went for the second option and over the next few years established offices in
Australia, in UK and Canada”. This has successfully branded Smart Kids as a leading supplier of
educational resources in these countries. Mr. Milne says the Smart Kids product catalogue is now sent
Examination Paper of Marketing Management
IIBM Institute of Business Management 4
regularly to teachers in more than 50,000 schools across the UK, Ireland, Canada and Australia. “We
also sell to schools in the US. In that market we elected to work through a distributor, we didn‟t have
the financial resources to set-up an operation that could cover almost 70,000 schools and compete with
every established educational publisher”. He says annual exports now exceed $2.2 million and account
for more than 90% of turnover. In order to grow the business, surplus profits are reinvested back into
product development, infrastructure – the company recently moved its Auckland operation into new
20,000 square feet premises in Ellerslie. Mr. Milne says the Smart Kids brand is now well established
internationally with the company enjoying many competitive advantages, including its New Zealand
origin. New Zealand education is highly regarded overseas and we find that international teachers to get
hold of educational products made in this country.
Questions:
1. What are the major considerations for a firm in order to while deciding its markets entry
strategy?
2. To what extent direct control and ownership are critical for Smart kids export distribution
strategy?

 

Caselet 1
Swastika Computer System was established in 1981 at Delhi to provide computer training. In 1980s
computer education was relatively new in India. Personal computers 286 existed and MS DOS was the
operating system. Languages like Basic, Pascal, COBOL, FORTRAN were used in programming.
Swastika Computer Systems was established with their support departments namely computer
assembly, faculty training and computer servicing department. In the first financial year, it recorded a
turnover of Rs 11.5 lakhs. Within a few years of its existence, Swastik Computer System opened its
branches in eight major cities of India and had a gross annual turnover of Rs 86 lakhs. The organization
was highly centralized. The head office at Delhi handled all accounts, recruitment, and placement of
students and servicing of computers. The Bhopal branch of Swastik Computer Systems was set up in
May 1987. The branch was headed by a dynamic branch manager Hemant Gupta. He was a BSc in
computers and had previously worked in the data processing department of a manufacturing concern.
To establish the Bhopal branch, Hemant Gupta realized the need for making Swastik Computer
Systems, Bhopal known to the younger generation. With this in mind he introduced some innovative
promotional schemes like offering scholarships to students doing well in the intelligence tests
administered by the branch, giving personal computers to students to deposit term fees at their
convenience. Hemant Gupta also ensured that teaching standards were high and computers at the
branch were well maintained, so a student once enrolled felt that he had made the right decision by
joining Swastik Computer Systems. He also made himself available from 8.00 am to 7.00 p.m at the
branch. Students were free to go to him with their problems, which he took pains to solve. Soon
Swastik Computer Systems was one of the leading computer training centres in Bhopal. As the Bhopal
branch prospered, the head office at Delhi started taking an active interest in the running of this branch.
The Regional Manager who visited Bhopal once a month started making frequent visits. During one of
his visits, his attention was drawn to rumors that branch funds were being misappropriated. When the
Regional Manager informed the Delhi office about the rumor, a team was sent to the Bhopal Branch to
look into the matter. On investigation, the term was convinced that the rumors had some truth in them.
It was found that a larger number of students attended the classes than were enrolled. It was felt that this
fraud was not possible without the consent of Hemant Gupta, and without any further inquiry a decision
was taken to remove him forthwith. Amit Verma who was a senior faculty at Swastik Computer
Systems, Delhi was asked to take over the Bhopal branch as Manager. He was an MCA and had been
associated with the organization since its inception. Amit Verma‟s appointment at Bhopal was
welcomed at the Bhopal branch by both, staff and faculty as he had the reputation of being an easy
going person. After he joined the Bhopal, it was observed that Amit Verma, although academically
sound, was not an effective administrator. His approach towards staff and faculty was lenient. He was
not particular about punctuality and was not available during office hours. This had an adverse effect on
Examination Paper of Marketing Management
IIBM Institute of Business Management 8
faculty in general and classes in particular. Not only did classes suffer but even administrative work
was affected. Monthly reports to the head office were not sent on time, as a result requisitions for
computer servicing, reading material and funds were unduly delayed. Due to lack of maintenance,
computer breakdowns became common, students did not receive their reading material on time and
payment of building rent, and telephone bills etc were unnecessarily delayed. The symptoms of
deterioration at the Bhopal branch were obvious. The branch which had an annual turnover of Rs 30.7
lakhs fell to Rs. 4 lakhs. As enrollments decreased the head office at Delhi started feeling the pinch. It
started delaying transfer of funds to the Bhopal branch. As a result faculty salaries were unduly delayed.
The faculty started leaving for greener pastures.
Worried by the number of faculty turnover, the head office started a practice of recruiting only
those faculties willing to sign a bond of 3 years. The organization started a practice of taking a deposit
of Rupees 5000 from the joining faculty, which would be refunded after 3 years. In case the faculty left
before this duration, the deposit stood forfeited. This policy further reduced the quality of faculty
joining Swastik Computer Systems, Bhopal.
Questions:
1. What according to you went wrong at the Bhopal branch?
2. What can be done to revive the Bhopal branch?
Caselet 2
Mind tree which was founded in 1999 in India by a group of IT professionals who wanted to chart a
somewhat distinctive path. Today, it has a top line of $269 million and is rated as one of the most
promising mid-sized IT services companies. Creditable as that is, Mind Tree does not want to be just
that. There is an element of serendipity about what it has been doing over the last year. In 2008, it
designated one of its founders Subroto Bagchi „Gardener‟, a gimmicky signal, intended to declare that
he was moving out of the day-to-day running of the company to nurture talent which would run the
company in the future. He has now a report card ready on a year as gardener. During this one year, he
has also spent around 45 days travelling round the world talking to clients and prospective ones which
has yield remarkable insights into what firms are doing in these traumatic times. Lastly, Mind Tree as
a whole has spent the last year going through the exercise of redefining its mission statement and
vision for the next five years. Quite fortuitously these processes have come together with a unifying
thread, presenting a coherent big picture. Mind Tree wants to seed the future while still young, and
executive chairman Ashok Soota has declared that by 2020, it will be led by a non-founder. So a year
ago the gardener Bagchi set out to “touch” 100 top people in the organization, with a goal of doing 50
in a year so as to eventually identify the top 20 by 2015. From among them will emerge not just the
leader but a team of ten who would eventually, as group heads, deliver $200 million of turnover each.
That will give a turnover of $2 billion. To put it in perspective, one one VC-funded company, which
has not closed or been bought over, has been able to get to $2 billion and that is Google. But to get
there it has to periodically redefine its mission (why we exist) and its vision – measurable goals for the
next five years. Its redefined mission is built around “successful customers, happy people, and
innovative solution”. Its new vision targets a turnover of $1 billion by 2014. It wants to be among the
globally 20 most profitable IT services companies and also among the 20 globally most admired ones.
Examination Paper of Marketing Management
IIBM Institute of Business Management 9
Admired in terms of customer satisfaction (pay for the course), people practices (creditable),
knowledge management (exciting) and corporate governance (the Enron-Satyam effect). The really
interesting bit about Mind Tree in the last one year is what Bagchi has been up to. He has been
embedding himself in the 50 lives, working in a personal private continuum, making it a rich learning
process “which has helped connect so many dots.” Of the hundred who will be engaged, may be 50
will leave, of them 25 may better themselves only marginally, and from the remaining 25 ten will
emerge who will carry the company forward.
Questions:
1. What do you analyse as the main reason behind the success of Mind tree?
2. Do you think that redefining the mission statement shows the lacunae on the part of the founder
members of an organization? Why?

 

Caselet 1
Orion is a global co. That sells copiers. Orion currently sells 10 variants of a copier, with all inventory
kept in finished-goods form. The primary component that differentiates the copiers is the printing
subassembly. An idea being discussed is to introduce commonality in the printing subassembly so
that final assembly can be postponed and inventories kept in component form. Currently, each copier
costs $1,000 in terms of components. Introducing commonality in the print subassembly will increase
component cost to$1.025.One of the 10 variants represents 80 percent of the total demand. Weekly
demand for this variant is normally distributed ,with a mean of 1,000 and a standard deviation of
200.Each of the remaining nine variants has a weekly demand of 28 with a standard deviation of
20.Orion aims to provide a 95per level of services .Replacement lead time for components is four
weeks. Copier assembly can be implemented in a matter of hours. Orion manages all inventories
using a continuous review policy and uses a holding cost of 20 percent.
1. How much safety inventory of each variant must Orion keep without component commonality?
What are the annual holding costs?
2. How much safety inventory must be kept in component form if Orion uses common components
for all variants? What is the annual holding cost? What is the increase in component cost using
commonality? Is commonality justified across all variants?
3. At what cost of commonality will complete commonality be justified?
4. At what cost of commonality will commonality across the low-volume variants be justified?
Caselet 2
An electronic manufacturer has outsourced production of its latest MP3 player to a contract
manufacturer in Asia. Demand for the players has exceeded all expectations whereas the contract
manufacturers sell three types of players- a 40-GB player, a 20-GB player, 6-GB player. For the
upcoming holiday season, the demand forecast for the 40-GB player is normally distributed, with a
mean of 20,000and a standard deviation Dard deviation of 11,000, and the demand forecast for the 6-
GB player has a mean of 80,000 and a standard deviation of 16,000. The 40-GB player has a sale
Examination Paper of Supply Chain Management
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IIBM Institute of Business Management
price of $200, a production cost of $100, and a salvage value of $80 .The 20-GB player has a price of
$150, a production cost of $70, and a salvage value of $50.
1. How many units of each type of player should the electronics manufacturer order if there are no
capacity constraints?
2. How many times of each type of player should the electronics manufacturer order if the available
is 140,000? What is the expected profit?

 

 

Caselet 1
ADAPTABILITY IN ACTION: A CASE OF RSL
Rajasthan Synthetics Ltd. (RSL) was established in the year 1994 at Bhilwara, Rajasthan to
manufacture synthetic yarn with a licensed capacity of 29,000 spindles. Manish Kumar, a Harvard
Business School graduate, established RSL with 8% equity participation from Itochu Corporation
Japan to manufacture synthetic yarn for shirting, a promising business at that time. The demise of the
NTC textile mills was fresh in the minds of the promoters and therefore, state of the art technology
imported from U.K., Germany, Japan and France was used in the manufacturing facility. By the time
the company started manufacturing yarn the competition in shirting yarn had become fierce and the
returns had diminished. The company incurred losses in the first four years of its operations and the
management was looking for opportunities to turn things around. The manufacturing plant started
functioning with an installed capacity of 26,000 spindles, a small unit considering yarnmanufacturing
industry, in the year 1996 to manufacture synthetic yarn for shirting only. Initially, the
major fabric manufactures of India such as Raymonds, Donear, Grasim, Amartex, Siyaram, Pantaloon
and Arviva were the main customers of the company and the total produce of the company was sold
within the domestic market. These fabric manufactures used to import the premium quality yarn
before RSL started supplying the yarn to them. The company in the first year of its operations
realized that shirting yarn was one of the fiercely competitive products and the company with its high
interest liability was unlikely to earn the desired profits. Also, the company had a narrow product mix
limited to only two more blow room lines were installed in the first quarter of 1997. The addition of
two blow room lines helped RSL to manufacture four different types of yarns at the same time.
Utilizing this added flexibility, RSL began manufacturing yarn for suitings.Since the suiting yarn was
providing better returns, the company was keen to increase manufacturing of suiting yarn but was
hampered by the two for one doubling (TFO) facility, which was limited to only 40% of the total
produce. To remove this bottleneck, 12 more TFO machines were added to the existing 8 TFO
machines. The addition of these machines increased the doubling capacity to 70% of the production
providing additional product mix flexibility to the company. This enabled the company to
manufacture yarn to cater to the requirements of suiting, industrial fabric and carpet manufacturers. In
the initial years of its operations, RSL realized that the promises made by the Government of
Rajasthan to provide uninterrupted power supply of the required quality (stable voltage and
frequency) and ample quantity of water were unlikely to be met through the public distribution
system. The voltage and frequency of electric power provided through the public distribution system
were erratic and frequent announced and unannounced power cuts stopped production on a regular
basis. In these circumstances, meeting quality requirements of the customers and adhering to delivery
schedules was a herculean task. To ensure smooth and uninterrupted operations RSL installed inhouse
power generation facility of 4 megawatts capacity and dug 10 tube-wells.RSL faced stiff
competition in the domestic market from Gujarat Spinning and Weaving Mills, Surat, Rajasthan
Textile Mills, Bhawani Mandi, Charan Spinning Mills, Salem and Indorama Synthetics Ltd.,
Pithampur in all their product categories and the returns were low. In order to combat stiff
Examination Paper of Supply Chain Management
8
IIBM Institute of Business Management
competition in the domestic market and improve returns the company started developing export
markets for their products in the year 1998. Initially, RSL started exporting carpet yarn to Belgium
and till 2001; carpet yarn formed the major component of their exports. A trade agreement was signed
with Fibratex Corporation, Switzerland to share profits equally for expanding their overseas
operations. During the same period, RSL continued to scout for new export markets and was
successful in entering top-of-the-line fancy for premium fashion fabric manufactures of international
repute like Mango and Zara. Rajasthan Synthetics Ltd. also exported fancy yarn to a number of fabric
manufacturers located in Italy, France, England, Spain and Portugal. Yarn manufacturers from
Indonesia, Korea and Taiwan gave stiff competition to RSL when it entered the international market.
The companies from South Asian countries had a major cost advantage over RSL because of cheap,
uninterrupted availability of power and high labour productivity. Currencies had been sharply
devalued during the South Asian financial crisis, which rendered the products manufactured by these
companies still cheaper in international markets. Despite all these disadvantages, RSL was able to
gain a foothold through constant adaption of their products according to the customer requirements in
the highly quality conscious international yarn market and was exporting 95% of its total produce by
the beginning of the year 2002.
Rajasthan Synthetics Ltd. had fine-tuned its distribution channels according to the type of markets
and size of orders from the customers. In line with this policy the export to Middle East, Far East and
Turkey was carried out through agents. Similarly, low volume export of fancy yarn requirements was
also catered through agents. While dealing with importers directly, RSL strictly followed the policy
of exports against confirmed Letter of Credits only. The company directly exported to important
clients in Belgium, England and France. The domestic market was also served through an agency
system. Rajasthan Synthetics Ltd. considered inventories as an unnecessary waste and kept minimum
possible inventories while ensuring required level of service. To ensure that the inventories were held
to a minimum, the manufacturing plan consisted of 60 to 70% against customer orders, 30 to 40%
against anticipated sales and 2% capacity was reserved for new product development. A Strategic
Management Committee (SMC) consisting of MD, CEO, GM (marketing) and GM (technical)
reviewed the production plan of the manufacturing plant on quarterly basis. The SMC also developed
the plans for profitability, product mix and cost minimization. Delivering high-quality products and
meeting delivery commitments for every shipment were essential pre-requisites to be successful in the
global market place. The company had understood this very early and to ensure that the products
manufactured by RSL met the stringent quality requirements of its international customers, the
company had developed a full-fledged testing laboratory equipped with ultra modern testing
machines like User Tester-3 and Classifault. The company had stringent quality testing checks at
every stage of tarn production right from mixing of fiber to packing of finished cones. Its in-house
Research and Development and Statistical Quality Control (SQC) divisions ensured consistent
technical specifications with the help of sophisticated state-of-the-art machines. A team of
professionally qualified and experienced personnel to ensure that the yarn manufactured by the
company was in line with international standards backed the company. The company continuously
upgraded its product mix and at the same time, new products developed by in-house research and
development department were added to the product mix form time to time. RSL‟s management was
quick to analyze the potential of these in-house developments and followed a flexible approach in
determining the level of value addition. The company had developed a new yarn recently and was
selling it under the Rajtang brand name. This new yarn was stretchable in three dimensions, absorbed
moisture quickly, was soft and silky and fitted the body. This yarn was extracted from natural
products and being body-friendly, was in great demand in international markets. Looking at the
higher value addition possibilities RSL decided to forward integrate and started manufacturing fabric,
using Rajtang and provided ready-made garments like swimming suit, tracksuit, undergarments, tops,
slacks and kids dresses. The ready-made dresses from the fabric were being manufactured on the
specifications and designs of RSL. The management decided to market these products under the
brand name “Wear-it” through Wearwell Garments Pvt. Ltd., an associate company of RSL, to ensure
Examination Paper of Supply Chain Management
9
IIBM Institute of Business Management
that RSL did not lose its focus. The Managing Director of RSL felt that continuous adaptability to
market requirements through a flexible approach, cost cutting in every sphere of operations and team
approach to management had taken them ahead. However, RSL had become highly dependent on the
volatile export market and if it was not able to retain the international market it would have to reestablish
itself in the domestic market, which was not an easy task.
1. What marketing strategy should RSL adopt to remain competitive in the international market?
2. Has the company taken the right decision to forward integrate and enter into the highly volatile
garment market?
Caselet 2
Popular mythology in the United States likes to refer to pre-World War II Japan as a somewhat
backward industrial power that produced and exported mostly trinkets and small items of dubious
quality bought by Americans impoverished by the Great Depression. Few bring up the fact that, prior
to the Pearl Harbor attack, Japan had conquered what are now Korea, Manchuria, Taiwan, and a large
portion of China, Vietnam, and Thailand; and by the end of 1942 Japan had extended its empire to
include Burma, the Philippines, Indonesia, Malaysia, Thailand, Cambodia, New Guinea, plus many
strings of islands in the eastern Pacific Ocean. Its navy had moved a large armada of worships 4,000
miles across the Pacific Ocean, in secret and in silence, to attack Pearl Harbor and then returned
safely home. Manufacturers capable of producing only low-grade goods don‟t accomplish such feats.
High-quality standards for military hardware, however, did not extend to civilian and export goods,
which received very low priority during the war years. Thus the perception in the United States for a
long time before and then immediately after the war had nothing to do with some inherent character
flaw in Japanese culture or industrial capability. It had everything to do with Japan‟s national
priorities and the availability of funds and material. Following Japan‟s surrender in 1945, General
MacArthur was given the task of rebuilding the Japanese economy on a peaceful footing. As part of
that effort an assessment of damage was to be conducted and a national census was planned for 1950.
Deming was asked in 1947 to go to Japan and assist in that effort. As a result of his association with
Shewhart and quality training, he was contacted by representatives from the Union of Japanese
Scientists and Engineers (JUSE), and in 1950, Deming delivered his now famous series of lectures on
quality control. His message to top industry leaders, whom he demanded to attend, and to JUSE was
that Japan had to change its image in the United States and throughout the world. He declared that it
could not succeed as an exporter of poor quality and argued that the tools of statistical quality control
could help solve many quality problems. Having seen their country devastated by the war, industry
and government leaders were eager to learn the new methods and to speed economic recovery.
Experience was to prove to Deming and others that, without the understanding, respect, and support
of management, no group of tools alone could sustain a long-term quality improvement effort.
1. How could have the SQC approach, been useful in solving the immediate problems of Japan?
2. If you were among one of the management members, what would have been your first insight?

 

Case let 1
National Competitive Advantage of IKEA Group, a Swedish company founded in 1943 with its
headquarters in Denmark, is a multinational operator of a chain of stores for home furnishing and
furniture. It is the world’s largest retailer, which specializes, in stylish but inexpensive Scandinavian
designed furniture. At the end of 2005 the IKEA Group of Companies had a total of 175 stores in 31
countries. In addition there are 19 IKEA stores owned and run by franchisees, outside the IKEA store
around the world.
In Sweden, nature and a home both play a big part in people’s life. In fact one of the best ways to describe
the Swedish home furnishing style is to describe nature-full of light and fresh air, yet restrained and
unpretentious.
To match up the artist Carl and Karin Larsson combined classical influences with warmer Swedish folk
styles .They created a model of Swedish home furnishing design that today enjoys world-wide renown. In
the 1950s the styles of modernism and functionalism developed at the same time as Sweden established a
society founded on social equality .The IKEA product range –The IKEA product range- modern but not
trendy, functional yet attractive, human-centered and child friendly – carries on these various Swedish
home furnishing traditions.
The IKEA Concept, like lots founder, was born in Samaland. This is a part of Southern Sweden where the
soil is thin and poor. The people are famous for working hard, living on small means and using their
heads to make the best possible use of the limited resources they have. This way of doing things is at the
heart of the IKEA approach to keeping prices low.
IKEA was founded when Sweden was fast becoming an example of the caring society, where rich and
poor alike were well looked after. This is also a theme that fits well with the IKEA vision. In order to give
the many people a better everyday life, IKEA asks the customer to work as a partner. The product range is
child-friendly and covers the need of the whole family, young and old. So together we can a better
everyday life for everyone.
In addition to working about around 1,800 different suppliers across the world, IKEA produces many of
its own products through sawmills and factories in the IKEA industrial group, Swedwood.
Swedwood also has a duty to transfer knowledge to other suppliers, for example by educating them in
issues such as efficiency, quality and environmental work.
Swedwood has 35 industrial units in 11 countries.
Examination Paper: Semester II
IIBM Institute of Business Management
Purchasing: IKEA has 42 Trading Service Offices (TSO’s) in 33 countries. Proximity to their suppliers
is the key to rational, long term cooperation. That’s why TSO co-workers visit suppliers regularly to
monitor production, test new ideas, negotiate prices and carry out quality audits and inspection.
Distribution: The route from supplier to customer must be as direct, cost- effective and environmentally
friendly as possible. Flat packs are important aspects of this work: eliminating wasted space means we
can transport and store goods more efficiently. Since efficient distribution plays a key role in the work of
creating the low price, goods routing and logistics are a focus for constant development.
The business Idea: The IKEA business idea is to offer a wide range of home furnishings with good design
and function at prices so low that as many people as possible will be able to afford them. And still have
many left! The company targets the customer who is looking for value and is willing to do a little bit of
work serving themselves, transporting the items home and assembling the furniture for a better price. The
typical IKEA customer is young low to middle income family.
The Competition Advantage: The competition advantage strategy of IKEA’s product is reflected through
IKEA’s success in the real industry. It can be attributed to its vast experience in the retail market, product
differentiation, and cost leadership.
IKEA Product Differentiation: A wide product range The IKEA product range is wide and versatile in
several ways. First, it’s versatile in function. Because IKEA think customer, shouldn’t have to run from
one small specialty shop to another to furnish their home, IKEA gather plants, living room furnishings,
toys , frying pans, whole kitchens i.e.; everything which in a functional way helps to build a home – in
one place , at IKEA stores.
Second, it’s wide in style. The romantic at heart will find choices just as many as the minimalist at IKEA.
But There is only one thing IKEA don’t have, and that is, the far- out or the over-decorated. They only
have what helps build a home that has room for good living.
Third, by being coordinated, the range is wide in function and style at the same time. No matter which
style you prefer, there’s an armchair that goes with the bookcase that goes with the new extending table
that goes with the armchair. So their range is wide in a variety of ways.
Cost Leadership: A wide range with good form and function is only half the story. Affordability has a part
to play – the largest part. A wide range with good form and function is only half the story. Affordability
has a part to play- the largest part. And the joy of being able to own it without having to forsake
everything else. And the customers help, too, by choosing the furniture, getting it at the warehouse,
transporting it home and assembling it themselves , to keep the price low.
Questions
1. Do you think that IKEA has been successful to utilize Porter’s Five force analysis?
Give reasons.
2. Where do you think can IKEA improve?
Examination Paper: Semester II
IIBM Institute of Business Management
Case let 2
For ITC Ltd., 2007-2008 continued to be year of quiet growth. Just more launches in its relatively new
segment of non-cigarettes fast moving consumer goods, and solid growth. As in the past few years, ITC’s
non-cigarettes businesses continued to grow at a scorching pace, accounting for a bigger share of overall
revenues. “The non-cigarette portfolio grew by 37.6% during 2006-2007 and accounted during that year
for 52.3% of the company’s net turnover.” An ITC spokesman said. In fact, over the first three quarters of
2007-08, ITC’s non-cigarette FMCG businesses have grown by 48% on the same period last year,
“Indicating that its plans for increasing market share and standing are succeeding.”
The branded packaged foods business continued to expand rapidly, with the focus on snacks range Bingo.
The biscuit category continued its growth momentum with the ‘Sun feast’ range of biscuits launching
‘Coconut’ and ‘Nice’ variants and the addition of ‘ Sunfeast BenneVita Flaxseed’ biscuits. Aashirwad atta
and kitchen ingredients retained their top slots at the national level, with the spices category adding an
organic range. In the confectionery category which grew by 38% in the third quarter, ITC cited AC
Nielsen data it claims market leader status in throat lozenges. Instant mixes and pasta powdered the sales
of its ready to eat foods under the kitchens of India and Aashirwad brands.
In Lifestyle apparel, ITC launched Miss Players fashion wear for young women to compliment its range
for men.
Overall, the biscuit category grew by 58% during the last quarter, ready to eat foods under the kitchens of
India and Aashirwad brands by 63% and the lifestyle business by 26%.
For the Industry, the most significant initiative to watch the ITC foray into premium personal care
products with its Fiama Di Wills range of shampoos , conditioners, shower gels, and soaps. In the popular
segment, ITC has launched a range of soaps and shampoos under the brand name Superia.
Ravi Naware, Chief executive of ITC’s food business was quoted recently as saying that the business will
make a positive contribution to ITC’s bottom line in the next two to three years.
In hotels, ITC’s Fortune Park brand was making the news during the year, with a rapid rollout of first
class business hotels.
In the agri-business segment, the e-choupal network is trying out a pilot in retailing fresh fruits and
vegetables. The e-choupals have already specialized in feeding ITC high quality wheat and potato, among
other commodities grown by farmers with help from e-choupal.
Questions:
Q1. Do you think the progress of ITC Ltd. is realistic?
Q2. After analyzing the above case, do you think every company should aim at cost leadership with high
quality product?


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Caselet 1
Uptron Electronics Limited, is a pioneering and internationally reputed firm in the electronics
industry. It is one of the largest firm in the country. It attracted employees from internationallyreputed
institute and industries by offering high salaries, perks, etc. It has advertized for the position
of an electronic engineer recently. Nearly 150 candidates applied for the jobMr. Sashidhar, an
electronics Engineering Graduate from the Indian Institute Of Technology with 5 years working
experience in a medium sized electronics firm, was selected from among the 130 candidates who took
tests and interview. The interview board recommended an enhancement in his salary by Rs 5,000
more than his present salary at his request. Mr Sashidhar was very happy to achieve this and he was
congratulated by a number of people including his previous employer for his brilliant interview
performance, and wished him good luck.
Mr Sashidhar joined Uptyron Electronics Ltd., on 21st January, 2002, with greater enthusiasm. He
also found his job to be quite comfortable and a challenging one and he felt it was prestigious to work
with this company during the formative years of his career. He found his superiors as well as
subordinates to be friendly and cooperative. But this climate did not live long. After one year of his
service, he slowly learnt about a number of unpleasant stories about the company, management, the
superior subordinate relations, rate of employee turnover, especially at higher level But he decided to
stay on as he has promised several things to the management in the interview. He wanted to please
and change the attitude of management through his diligent performance, firm commitment and
dedication. He started maximizing his contributions and the management got the impression that Mr.
Sashidhar had settled down and will remain in the company.
After some time, the superiors started riding rough- shod over Mr Sashidhar. He was overloaded with
multifarious jobs. His freedom in deciding and executing was cut down. He was ill treated on a
number of occasions before his subordinates. His colleagues also started assigning their
responsibilities to Mr Sashidhar. Consequently there were imbalances in his family life and
organizational life. But he seemed to be calm and contented. Management felt that Mr Sashidhar had
the potential to bear with many more organizational responsibilities.
So the general manager was quite surprised to see the resignation letter of Mr Sashidhar along with a
cheque equivalent to a month’s salary one fine morning on 18th January, 2004. The General Manager
failed to convince Mr Sashidhar to withdraw his resignation. The General Manager relieved him on
25th January, 2004. The General Manager wanted to appoint a committee to go into the matter
immediately, but dropped the idea later.
Questions:
1. What is wrong with the recruitment policy of the company?
2. Why did Mr. Sashidhar’s resignation surprise the General Manager?
Examination Paper of Human Resource Management
4
IIBM Institute of Business Management
Caselet 2
The contexts in which human resources are managed in today’s organizations are constantly,
changing. No longer do firms utilize one set of manufacturing processes, employ a homogeneous
group of loyal employees for long periods of time or develop one set way of structuring how work is
done and supervisory responsibility is assigned. Continuous changes in who organizations employ
and what these employees do require HR practices and systems that are well conceived and
effectively implemented to ensure high performance and continued success.
1. Automated technologies nowadays require more technically trained employees possessing
multifarious skills to repair, adjust or improve existing processes. The firms can’t expect these
employees (Gen X employees, possessing superior technical knowledge and skills, whose attitudes
and perceptions toward work are significantly different from those of their predecessor organizations:
like greater self control, less interest in job security; no expectations of long term employment;
greater participation urge in work activities, demanding opportunities for personal growth and
creativity) to stay on without attractive compensation packages and novel reward schemes.
2. Technology driven companies are led by project teams, possessing diverse skills, experience and
expertise. Flexible and dynamic organizational structures are needed to take care of the expectations
of managers, technicians and analysts who combine their skills, expertise and experience to meet
changing customer needs and competitive pressures.
3. Cost cutting efforts have led to the decimation of unwanted layers in organizational hierarchy in
recent times. This, in turn, has brought in the problem of managing plateau employees whose careers
seem to have been hit by the delivering process. Organizations are, therefore, made to find alternative
career paths for such employees’
4. Both young and old workers, these days, have values and attitudes that stress less loyalty to the
company and more loyalty to oneself and one’s career than those shown by employees in the past,
Organizations, therefore, have to devise appropriate HR policies and strategies so as to prevent the
flight of talented employees
Question:-
1. Discuss that technological breakthrough has brought radical changes in HRM.

 

Caselet 1
Ask the company top brass what „almost there‟ means. The answer: a premier Indian retail company
that has come to be known as a specialty chain of apparel and accessories. With 52 product categories
under one roof, Shoppers‟ Stop has a line-up of 350 brands. Set up and headed by former Corona
employee, B. S. Nagesh, Shoppers‟ Stop is India‟s answer to Selfridges and Printemps. As it proudly
announces, „We don‟t sell, we help you buy.‟ Back in 1991, there was the question of what to retail.
Should it be a supermarket or a departmental store? Even an electronics store was considered. Finally,
common sense and understanding won out. The safest bet, for the all-male team was to retail men‟s
wear. They knew the male psyche and felt that they had discerning taste in men‟s clothing. The
concept would be that of a lifestyle store in a luxurious space, which would make for a great shopping
experience. The first Shoppers‟ Stop store took shape in Andheri, Mumbai, in October 1991, with an
investment of nearly Rs. 20 lakh. The original concept that formed the basis of a successful marketing
campaign for seven years is here to stay. And the result is an annual turnover of Rs. 160 crores and
five stores, nine years later. Everything went right from the beginning, except for one strange
happening. More than 60 per cent of the customers who walked into Shoppers‟ Stop in Mumbai were
women. This gave rise to ideas. Soon, the store set up its women‟s section. Later, it expanded to
include children‟s wear and then, household accessories. The second store in Bangalore came in
1995. The store at Hyderabad followed in 1998 with the largest area of 60,000 sq. ft. The New Delhi
and Jaipur stores were inaugurated in 1999. All this while, the product range kept increasing to suit
customer needs. The most recent experiment was home furnishings. Secure in the knowledge that
organized retailing in global brands was still in its infancy in India, Shoppers‟ Stop laid the ground
rules which the competition followed. The biggest advantage for Shoppers‟ Stop is that it knows how
the Indian consumer thinks and feels while shopping. Yes, feeling – for in India, shopping remains an
outing. And how does it compare itself to foreign stores? While it is not modeled on any one foreign
retailer, the „basic construct‟ is taken from the experience of a number of successfully managed retail
companies. It has leveraged expertise for a critical component like technology from all over the
world, going as far as hiring expatriates from Littlewoods and using state-of-the-art ERP models.
Shoppers‟ Stop went a step further by even integrating its financial system with the ERP model.
Expertise was imported wherever it felt that expertise available in-house was inadequate. But the
store felt there was one acute problem. A shortage of the most important resource of them all was
trained humans. Since Indian business institutes did not have professional courses in retail
management, people were hired from different walks of life and the training programme was
internalized. By 1994, the senior executives at Shoppers‟ Stop were taking lectures at management
institutes in Mumbai. The Narsee Monjee Institute of Management Studies (NMIMS) even
restructured its course to include retail management as a subject. Getting the company access to the
latest global retail trends and exchange of information with business greats was an exclusive
membership to the Intercontinental Group of Department Stores (IGDS). It allows membership by
invitation to one company from a country and Shoppers‟ Stop rubs shoulders with 29 of the hottest
names in retailing – Selfridges from the UK, C.K. Tang from Singapore, Lamcy Plaza from Dubai
and the like. With logistics I in place, the accent moved to the customer. Shoppers‟ Stop conducted
Examination Paper of Marketing Management
4
IIBM Institute of Business Management
surveys with ORG-MARG and Indian Market Research Bureau (IMRB) and undertook in-house
wardrobe audits. The studies confirmed what it already knew. The Indian customer is still evolving
and is very different from, say, a European customer, who knows exactly what he wants to purchase,
walks up to a shelf, picks up the merchandise, pays and walks out. In India, customers like to touch
and feel the merchandise, and scout for options. Also, the majority of Indian shoppers still prefer to
pay in cash. So, transactions must be in cash as against plastic money used the world over.
Additionally, the Indian customer likes being served – whether it is food, or otherwise. The
company‟s customer profile includes people who want the same salesperson each time they came to
the store to walk them through the shop floors and assist in the purchase. Others came with families,
kids and maids in tow and expected to be suitably attended to. Still others wanted someone to carry
the bags. So, the shops have self-help counters, with an assistant at hand for queries or help. The inhouse
wardrobe audit also helped with another facet of the business. It enabled Shoppers‟ Stop to
work out which brands to stock, based on customer preferences. In fact, the USP of Shoppers‟ Stop
lies in judiciously selected global brands, displayed alongside an in-house range of affordable
designer wear. The line-up includes Levi‟s, Louis Philippe, Allen Solly, Walt Disney, Ray Ban and
Reebok, besides in-house labels STOP and I. Brand selection is the same across the five locations,
though the product mix may be somewhat city-based to accommodate cuts and styles in women‟s
wear, as well as allowing for seasonal variations (winter in Delhi, for instance, is a case in point).
Stocking of brands is based on popular demand – recently, Provogue, MTV Style, and Benetton have
been added. In-house labels are available at competitive prices and target the value-for-money
customer and make up around 12 per cent of Shoppers‟ Stop‟s business. Sometimes in-house brands
plug the price gap in certain product categories. To cash in on this, the company has big plans for its
in-house brands: from re-branding to repositioning, to homing in on product categories where existing
brands are not strong. Competition between brands is not an issue, because being a trading house, all
brands get equal emphasis. The in-house brand shopper is one who places immense trust in the
company and the quality of its goods and returns for repeat buys. And the company reposed its faith
in regular customers by including them in a concept called the First Citizen‟s Club (FCC). With
60,000 odd members, FCC customers account for 10 per cent of entries and for 34 per cent of the
turnover. It was the sheer appeal of the experience that kept pulling these people back. Not one to let
such an opportunity pass, the company ran a successful ad campaign (that talks about just this factor)
in print for more than eight years. The theme is still the same. In 1999, a TV spot, which liked the
shopping experience to the slowing down of one‟s internal clock and the beauty of the whole
experience, was aired. More recently, ads that spell out the store‟s benefits (in a highly oblique
manner) are being aired.
The campaign is based on entries entered in the Visitors‟ Book. None of the ads has a visual or text –
or any heavy handedly direct reference to the store or the merchandise. The ads only show shoppers
having the time of their lives in calm and serene locales, or elements that make shopping at the store a
pleasure – quite the perfect getaway for a cosmopolitan shopper aged between 25 and 45. The brief to
the agency, Contract, ensured that brand recall came in terms of the shopping experience, not the
product. And it has worked wonders. Value-addition at each store also comes in the form of special
care with car parks, power backup, customer paging, alteration service and gift-wrapping. To top it
all, cafes and coffee bars make sure that the customer does not step out of the store. In Hyderabad, it
has even created a Food Court. Although the food counter was not planned, it came about as there
was extra space of 67,000 sq. ft. Carrying the perfect experience to the shop floor is an attempt to
stack goods in vast open spaces neatly. Every store has a generic structure, though regional customer
variances are accounted for. Each store is on lease, and this is clearly Shoppers‟ Stop‟s most
expensive resource proposition – renting huge spaces in prime properties across metros, so far
totaling 210,000 sq. ft of retail space. Getting that space was easy enough for Shoppers‟ Stop, since
its promoter is the Mumbai-based Raheja Group, which also owns 62 per cent of the share capital.
Examination Paper of Marketing Management
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IIBM Institute of Business Management
Questions:
1. What are the significant factors that have led to the success of Shoppers‟ Stop?
2. How should Shoppers‟ Stop develop its demand forecasts?
Caselet 2
The rise of personal computers in the mid 1980s spurred interest in computer games. This caused a
crash in home Video game market. Interest in Video games was rekindled when a number of different
companies developed hardware consoles that provided graphics superior to the capabilities of
computer games. By 1990, the Nintendo Entertainment System dominated the product category. Sega
surpassed Nintendo when it introduced its Genesis System. By 1993, Sega commanded almost 60 per
cent of Video game market and was one of the most recognized brand names among the children.
Sega‟s success was short lived. In 1995, Saturn (a division of General Motors) launched a new 32-bit
system. The product was a miserable failure for a number of reasons. Sega was the primary software
developer for Saturn and it did not support efforts by outside game developers to design compatible
games. In addition, Sega‟s games were often delivered quite late to retailers. Finally, the price of the
Saturn system was greater than other comparable game consoles. This situation of Saturn‟s misstep
benefited Nintendo and Sony greatly. Sony‟s Play Station was unveiled in 1994 and was available in
70 million homes worldwide by the end of 1999. Its “Open design” encouraged the efforts of outside
developers, resulting in almost 3,000 different games that were compatible with the PlayStation. It too
featured 32-bit graphics that appealed to older audience. As a result, at one time, more than 30 per
cent of PlayStation owners were over 30 years old. Nintendo 64 was introduced in 1996 and had eyepopping
64-bit graphics and entered in more than 28 million homes by 1999. Its primary users were
between the age of 6 and 13 as a result of Nintendo‟s efforts to limit the amount of violent and adultoriented
material featured on games that can be played on its systems. Because the company
exercised considerable control over software development, Nintendo 64 had only one-tenth the
number of compatible games as Sony‟s PlayStation did. By 1999, Sony had captured 56 per cent of
the video game market, followed by Nintendo with 42 per cent. Sega‟s share had fallen to a low of
1%. Hence, Sega had two options, either to concede defeat or introduce an innovative video machine
that would bring in huge sales. And Sega had to do so before either Nintendo or Sony could bring
their next-generation console to market. The Sega Dreamcast arrived in stores in September 1999
with an initial price tag of $199. Anxious gamers placed 300,000 advance orders, and initial sales
were quite encouraging. A total of 1.5 million Dreamcast machines were bought within the first four
months, and initial reviews were positive. The 128-bit system was capable of generating 3-D visuals,
and 40 different games were available within three months of Dream cast‟s introduction. By the end
of the year, Sega had captured a market share to 15 per cent. But the Dreamcast could not sustain its
momentum. Although its game capabilities were impressive, the system did not deliver all the
functionality Sega had promised. A 56K modem (which used a home phone line) and a Web browser
were meant to allow access to the Internet so that gamers could play each other online, surf the Web,
and visit the Dreamcast Network for product information and playing tips. Unfortunately, these
features either were not immediately available or were disappointing in their execution. Sega was not
the only one in having the strategy of adding functionality beyond games. Sony and Nintendo
followed the same approach for their machines introduced in 1999. Both Nintendo‟s Neptune and
Sony‟s PlayStation 2 (PS2) were built on a DVD platform and featured a 128-bit processor. Analysts
applauded the move to DVD because it is less expensive to produce and allows more storage than
CDs. It also gives buyers the ability to use the machine as CD music player and DVD movie player.
As Sony marketing director commented, “The full entertainment offering from Play Station 2
definitely appeals to a much broader audience. I have friends in their 30s who bought it not only
Examination Paper of Marketing Management
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IIBM Institute of Business Management
because it‟s a gaming system for their kids, but also a DVD for them.” In addition, PlayStation 2 is
able to play games developed for its earlier model that was CD-based. This gives the PS2 an
enormous advantage in the number of compatible game titles that were immediately available to
gamers. Further enhancing the PS2‟s appeal is its high-speed modem and allows the user‟s easy
access to the Internet through digital cable as well as over telephone lines. This gives Sony the ability
to distribute movies, music, and games directly to PS2 consoles. “We are positioning this as an allround
entertainment player,” commented Ken Kutaragi, the head of Sony Computer Entertainment.
However, some prospective customers were put off by the console‟s initial price of $360. Shortly
after the introduction of Neptune, Nintendo changed its strategies and announced the impending
release of its newest game console, The GameCube. However, unlike the Neptune, the GameCube
would not run on a DVD platform and also would not initially offer any online capabilities. It would
be more attractively priced at $199. A marketing vice president for Nintendo explained the
company‟s change in direction, “We are the only competitor whose business is video games. We want
to create the best gaming system.” Nintendo also made the GameCube friendly for outside developers
and started adding games that included sports titles to attract an older audience. Best known for its
extra ordinary successes with games aimed at the younger set, such as Donkey Kong, Super Mario
Bros, and Pokemon, Nintendo sought to attract older users, especially because the average video
game player is 28. Youthful Nintendo users were particularly pleased to hear that they could use their
handheld Game Boy Advance systems as controllers for the GameCube. Nintendo scrambled to
ensure there would be an adequate supply of Game Cubes on the date in November 2001, when they
were scheduled to be available to customers. It also budgeted $450 million to market its new product,
as it anticipated stiff competition during the holiday shopping season. With more than 20 million
PlayStation 2 sold worldwide, the GameCube as a new entry in the video game market would make
the battle for market share even more intense. For almost a decade, the video game industry had only
Sega, Nintendo, and Sony; just three players. Because of strong brand loyalty and high product
development costs, newcomers faced a daunting task in entering this race and being competitive. In
November 2001, Microsoft began selling its new Xbox, just three days before the GameCube made
its debut. Some observers felt the Xbox was aimed to rival PlayStation 2, which has similar functions
that rival Microsoft‟s Web TV system and even some lower level PCs. Like the Sony‟s PlayStation 2,
Xbox was also built using a DVD platform, but it used an Intel processor in its construction. This
open design allowed Microsoft to develop the Xbox in just two years, and gave developers the option
of using standard PC tool for creating compatible games. In addition, Microsoft also sought the
advice of successful game developers and even incorporated some of their feedback into the design of
the console and its controllers. As a result of developers‟ efforts, Microsoft had about 20 games ready
when the Xbox became available. By contrast, the GameCube had only eight games available.
Microsoft online strategy was another feature that differentiated of the Xbox from the GameCube.
Whereas Nintendo had no immediate plans for Web-based play, the Xbox came equipped with an
Ethernet port for broadband access to Internet. Microsoft also announced its own Web-based network
on which gamers can come together for online head-to head play and for organized online matches
and tournaments. Subscribers to this service were to pay a small monthly fee and must have highspeed
access to the Internet. This is a potential drawback considering that a very low percentage of
households world over currently have broadband connections. By contrast Sony promoted an open
network, which allows software developers to manage their own games, including associated fees
charged to users. However, interested players must purchase a network adapter for an additional
$39.99. Although game companies are not keen on the prospect of submitting to the control of a
Microsoft-controlled network, it would require a significant investment for them to manage their own
service on the Sony-based network. Initially the price of Microsoft‟s Xbox was $299. Prior to the
introduction of Xbox, in a competitive move Sony dropped the price of the PlayStation 2 to $299.
Nintendo‟s GameCube already enjoyed a significant price advantage, as it was selling for $100 less
than either Microsoft or Sony products. Gamers eagerly snapped up the new consoles and made 2001
Examination Paper of Marketing Management
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IIBM Institute of Business Management
the best year ever for video game sales. For the first time, consumers spent $9.4 billion on video
game equipment, which was more than they did at the box office. By the end of 2001 holiday season,
6.6 million PlayStation 2 consoles had been sold in North America alone, followed by 1.5 million
Xbox units and 1.2 million Game Cubes. What ensued was an all out price war. This started when
Sony decided to put even more pressure on the Microsoft‟s Xbox by cutting the PlayStation 2 price to
$199. Microsoft quickly matched that price.
Wanting to maintain its low-price status, Nintendo in turn responded by reducing the price of its the
GameCube by $50, to $149. By mid 2002, Microsoft Xbox had sold between 3.5 and 4 million units
worldwide. However, Nintendo had surpassed Xbox sales by selling 4.5 million Game Cubes. Sony
had the benefit of healthy head start, and had shipped 32 million PlayStation 2s. However, seven
years after the introduction of original PlayStation, it was being sold in retail outlets for a mere $49. It
had a significant lead in terms of numbers of units in homes around the world with a 43 per cent
share. Nintendo 64 was second with 30 per cent, followed by Sony PlayStation 2 with 14 per cent.
The Xbox and GameCube each claimed about 3 per cent of the market, with Sega Dreamcast
comprising the last and least market share of 4.7 per cent. Sega, once an industry leader, announced in
2001 that it had decided to stop producing the Dreamcast and other video game hardware
components. The company said it would develop games for its competitors‟ consoles. Thus Sega
slashed the price of the Dreamcast to just $99 in an effort to liquidate its piled up inventory of more
than 2 million units and immediately began developing 11 new games for the Xbox, four for
PlayStation 2, and three for Nintendo‟s Game Boy Advance. As the prices of video game consoles
have dropped, consoles and games have become the equivalent of razors and blades. This means the
consoles generate little if any profit, but the games are a highly profitable proposition. The profit
margins on games are highly attractive, affected to some degree by whether the content is developed
by the console maker (such as Sony) or by an independent game publisher (such as Electronic Arts).
Thus, the competition to develop appealing, or perhaps even addictive, games may be even more
intense than the battle among players to produce the best console. In particular, Nintendo, Sony, and
Microsoft want games that are exclusive to their own systems. With that in mind, they not only rely
on large in-house staffs that design games but they also pay added fees to independent publishers for
exclusive rights to new games. The sales of video games in 2001 rose to 43 per cent, compared to just
4 per cent increase for computer-based games. But computer game players are believed to be a loyal
bunch, as they see many advantages in playing games on their computers rather than consoles. For
one thing, they have a big advantage of having access to a mouse and a keyboard that allow them to
play far more sophisticated games. In addition, they have been utilizing the Internet for years to
receive game updates and modifications and to play each other over the Web. Sony and Microsoft are
intent on capturing a portion of the online gaming opportunity. Even Nintendo has decided to make
available a modem that will allow GameCube users to play online. As prices continue to fall and
technology becomes increasingly more sophisticated, it remains to be seen whether these three
companies can keep their names on the industry‟s list of “high scorers”.
Questions:
1. Considering the concept of product life cycle, where would you put video games in their life cycle?
2. Should video game companies continue to alter their products to include other functions, such as
email?

 

Caselet 1
Mr. Vincent, the Manager of a large supermarket, was taking a management course in the evening
programme at the local college. The Professor had given an interesting but disturbing lecture the
previous night on the various approaches to management. Vincent had always thought that
management involved just planning, organizing and controlling. Now this Professor was saying that
management could also be thought of as quantitative models, systems theory and analysis, and even
something called contingency relationships. Vincent had always considered himself a good manager,
and his record with the supermarket chain had proved it. He thought of himself, “I have never used
operations research models, thought of my store as an open system, or developed or utilized any
contingency relationship. By doing a little planning ahead, organizing the store, and making some
things got done, I have been a successful manager. That other stuff just does not make sense. All the
professor was trying to do was complicate things. I guess I will have to know it for the test, but I am
sticking with my old plan, organize and control approach to managing my store.”
Questions:
1. Critically analyze Mr. Vincent‟s reasoning.
2. If you were the professor and you knew what was going through Vincent‟s mind, what would you say
to Vincent?
Caselet 2
The Regional Administration Office of a company was hastily set up. Victor D‟Cuhna a young
executive was directly recruited to take charge of Data Processing Cell of this office. The data
processing was to help the administrative office in planning and monitoring. The officer cadre of the
administrative office was a mix of directly recruited officers and promote officers (promotion from
within the organization).
Females dominated the junior clerical cadre. This cadre was not formally trained. The administrative
office had decided to give these fresh recruits on-the-job training because when results were not upto
the expectations blame was brought on the Data Processing Cell. Victor D‟Cuhna realized that the
administrative office was heading for trouble. He knew that his task would not be easy and that he had
been selected because of his experience, background and abilities. He also realized that certain
functional aspects of the administrative office were not clearly understood by various functionaries,
and systems and procedures were blindly and randomly followed. Feedback was random, scanty and
controversial, and Data Processing Cell had to verify every item of feedback. Delays were inevitable.
D‟Cuhna sought the permission of senior management to conduct a seminar on communication and
feedback of which he was an expert. The permission was grudgingly given by the senior management.
Everyone appreciated the seminar. Following the first seminar, D‟Cuhna conducted a one week
 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 150-200 words).
Principles and Practices of Management
IIBM Institute of Business Management 4
training course for the clerical cadre, especially for the junior, freshly recruited clerks. Amongst other
topics, D‟Cuhna laid emphasis on
Questions:
1. Diagnose the problem and enumerate the reasons for the failure of D‟Cuhna?
2. What could D‟Cuhna have done to avoid the situation in which he found himself?

 

Caselet 1
M/s. ABC Ltd is a medium-sized engineering company producing a large-range of product lines
according to customer requirements. It has earned a good reputation as a quick and reliable supplier to
its customers because of which its volume of business kept on increasing. However, over the past one
year, the Managing Director of the company has been receiving customer complaints due to delays in
dispatch of products and at times the company has to pay substantial penalty for not meeting the
schedule in time. The Managing Director convened an urgent meeting of various functional managers
to discuss the issue. The marketing manager questioned the arbitrary manner of giving priority to
products in manufacturing line, causing delays in wanted products and over-stocking of products
which are not required immediately. Production Control Manager complained that he does not have
adequate staff to plan and control the production function; and whatever little planning he does, is
generally overlooked by shop floor manager. Shop floor managers complained of unrealistic
planning, excessive machine breakdowns, power failure, and shortage of materials for scheduled
products because of which it is impossible to stick to the schedule. Maintenance manager says that he
does not get important spares required for equipment maintenance because of which he cannot repair
machines at a faster rate. Inventory control manager says that on one hand the company often accuses
him of carrying too much stock and on other hand people are grumbling over shortages. Fed up by
mutual mud-slinging, the Managing Director decided to appoint you, a bright management consultant
with training in business management to suggest ways and means to put his “house in order”.
Questions:-
1. What would you suggest to avoid delays in dispatch of products?
2. What action should be taken by various functional managers to meet the scheduled dates?
Caselet 2
Rajender Kumar was a production worker at competent Motors Limited (CML) which made
components and accessories for the automotive industry. He had worked at CML for almost seven
years as a welder, along with fifteen other men in the plant. All had received training in welding both
on the job and through company sponsored external programmes. They had friendly relations and got
along very well with one another. They played Volleyball in the playground regularly before retiring
to the quarters allotted by the company. They work together in the company canteen, cutting Jokes on
each other and making fun of everyone who dared to step into their privacy during lunch hour. Most
of the fellows had been there for some length of time, except for two men who had joined the ranks
only two months back. Rajender was generally considered to be the leader of the group, so it was no
surprise that when the foreman of the new was transferred and his job was posted, Rajender applied
for the job and got it.
Examination Paper of Organizational Behaviour
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IIBM Institute of Business Management
There were only four other applicants for the job, two from mechanical section and two from outside,
when there was a formal announcement of the appointment on a Friday afternoon, everyone in the
group congratulated Rajender. They literally carried him on their shoulders, and bought him snacks
and celebrated. On Monday morning, Rajender joined duty as Foreman. It was company practice for
all foremen to wear blue jacket and a white shirt. Each man‟s coat had his name badge sewn onto the
left side pocket. The company had given two pairs to Rajender. He was proud to wear the coat to
work on Monday. People who saw him from a distance went up to him and admired the new blue
coat. There was a lot of kidding around calling Rajender as „Hero‟, „Raja Babu‟ and „Officer‟ etc.
One of the guys went back to his locker and returned with a long brush and acted as though he were
removing dust particles on the new coat. After about five minutes of horseplay, all the men went back
to work. Rajender went to his office to familiarize himself with the new job and environment. At
noon, all the men broke for Lunch and went to the canteen to eat and take a break as usual. Rajender
was busy when they left but followed after them a few minutes later. He bought the food coupon,
took the snacks and tea and turned to face the open canteen. On the left-side corner of the room was
his old work group; on the right-hand side of the canteen sat the other entire foreman in the plant—all
in their smart blue coats.
At that point of time, silence descended on the canteen. Both groups looked at Rajender anxiously,
waiting to see which group he would choose to eat with.
Questions:
1. Whom do you think Rajender will eat with? Why?
2. If you were one of the other foremen, what could you do to make Rajinder‟s transition easier?

 

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 the misunderstanding?
2. Discuss the main features involved in this case.
Caselet 2
I don‟t want to speak to you. Connect me to your boss in the US,” hissed the American on the
phone. The young girl at a Bangalore call centre tried to be as polite as she could. At another call
centre, another day, another young girl had a Londoner unleashing himself on her, “Young lady,
do you know that because of you Indians we are losing jobs?”
The outsourcing backlash is getting ugly. Handling irate callers is the new brief for the young
men and women taking calls at these outsourced job centres. Supervisors tell them to be „cool‟.
Avinash Vashistha, managing partner of NEOIT, a leading US-based consultancy firm says,
“Companies involved in outsourcing both in the US and India are already getting a lot of hate
mail against outsourcing and it is hardly surprising that some people should behave like this on
the telephone.” Vashistha says Indian call centre‟s should train their operators how to handle
such calls. Indeed, the furor raised by the Western media over job losses because of outsourcing
Examination Paper of Business Communication
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IIBM Institute of Business Management
has made ordinary citizens there sensitive to the fact that their calls are being taken not from
their midst, but in countries such as India and the Philippines.
The angry outbursts the operators face border on the racist and sexist, says the manager of a call
centre in Hyderabad. But operators and senior executives of call centres refuse to go on record
for fear of kicking up a controversy that might result in their companies‟ losing clients overseas.
“It‟s happening often enough and so let‟s face it,” says a senior executive of a Gurgaon call
centre, adding, “This doesn‟t have any impact on business.”
Questions
1. Suppose you are working as an operator in a call centre in India and receiving calls
from Americans and Londoners. How would you handle such calls?
2. Do you agree with the view such abusive happenings on the telephone do not have any
impact on business?

 

Caselet 1
Overview of our Client’s Strategy
Our client had an online store. They were spending $15,000 each month on pay per click
advertising. This resulted in about $225,000 per month in sales. They didn‟t know which clicks
were leading to sales because they didn‟t track the clicks. There rankings in the natural listings was
minimal because they hadn‟t done keywords research on what visitors were using to try to find a
site like there‟s. They weren‟t able to quantity results because their we statistics program only
showed very general traffic information. They were also doing an irregular email newsletter even
though they had more than 32,000 e-mails in their database.
Analysis of the situation
In the natural listings we suspected they were being penalized by the search enines for duplicate
content. The search engines frown on this because they feel this is trying to fool them. Google will
often give a site like this something called “Supplement Results”, which means that the search
engines know the page exists but doesn‟t have any content in their database. We also suspected
their email newsletter was being blocked by many spam blockers because the names of the products
they sold were often on used in spam e-mails.
Implementation of a Solution
For the pay per click advertising we started tracking the clicks down to the individual terms and the
actual results that came from them. We were able to delete terms that were not getting enough sales
and increase the bids on ones that brought sales. For the natural listings we did keywords research
and focused on the main keywords on the content for the home page and in the META tags. We
also found that visitors search on product names rather than manufactures, so in the title tag for the
page we switched and put the product name before the manufacturer. With the newsletter, we used
a good mix of graphics and content to appease the spam blockers, as well as put the product names
in graphics so they wouldn‟t be blocked. In order to analyze of the site‟s traffic, we implemented a
powerful web statistics program.
Results of our work
Through our tactics, our clients were able to move up to #4 on Google for their main search term,
which got a lot of traffic. With pay per click, they went from $.43. They decrease their budget to
$10,000 per month, yet were able to increase their traffic by 33 percent. Through our optimization
of their pay per click, their cost per conversion to sale decreased by at least 45 percent. The
deliverability of their newsletter increased as well. Within a year, their sales increased to over
$600,000 per month.
Questions:
1. Discuss the client strategy for the success of store.
2. Suppose if you are the client maker what would you suggest for the client.
Caselet 2
Examination Paper of Management Information Systems
IIBM Institute of Business Management 4
Data Warehouse is a massive independent business database system that is populated with data that
has been extracted from a range of sources. The data is held separately from its origin and is used to
help to improve the decision-making process.
Many traditional Databases are involved in recording day to day operational activities of the
business, called Online Transaction Processing (OLTP), COMMONLY IMPLEMENTED IN
Airline Bookings and Banking Systems, for faster‟s response and better control over data.
After establishment of OLTP Systems, reports and summaries can be drawn for giving inputs to
decision-making process and this process is called Online Analytical Processing (OLAP).
For better customer relationships management strategy, the call centre‟s and data Warehouse works
as a strategic tool for decision-support which requires lot of time for establishment, and needs to be
updated with operational information on daily weekly or monthly basis.
Data Warehouse is used for proactive strategies formulation strategies formulation in critical and
complex situations. A number of CRM vendors are advocating for single integrated customer
database which includes call centre, web sites, branches and direct mail, but it lacks in analytical
functioning of data warehouse. This Database can‟t be expanded also, and carry decision support
operations on call centre Database becomes slow & the query processing and inquiries andling
operations also become slow & inefficient for agents dealing with customers.
Data Warehouse is must for identifying most profitable & loyal customers and those customers can
be offered better customized services which increase the chances of additional profits.
Although call centre system & data warehouse are altogether different systems yet dependent on
each other to fully exploit their potential respectively.
Questions:
1. Explain the role of data warehousing in the functioning of a call centre.
2. How the response time in performing OLAP queries can be improved?

 

Caselet 1
Company Background
The Bronson Insurance Group was originally founded in 1900 in Auxvasse, Missouri, by James Bronson.
The Bronson Group owns a variety of companies that underwrite personal and commercial insurance
policies. Annual sales of the Bronson Group are $100 million. In recent years, the company has suffered
operating losses. In 1990, the company was heavily invested in computer hardware and software. One of
the problems the Bronson Group faced (as well as many insurance companies) was a conflict between
established manual procedures and the relatively recent (within the past 20 years) introduction of
computer equipment. This conflict was illustrated by the fact that much information was captured on
computer but paper files were still kept for practical and legal reasons.
File Clerks
The file department employed 20 file clerks who pulled files from stacks, refilled used files, and delivered
files to various departments including commercial lines, personal lines, and claims. Once a file clerk
received the file. Clerks delivered files to underwriters on an hourly basis throughout the day. The average
file clerk was paid $8,300 per year. One special file clerk was used full time to search for requested files
that another file clerk had not been able to find in the expected place. It was estimated that 40 percent of
the requested files were these “no hit” files requiring a search. Often these “no hit” files were eventually
found stacked in the requester‟s office. The primary “customers” of the file clerks were underwriters and
claims attorneys.
Underwriting
Company management and operations analysts were consistently told that the greatest problem in the
company was the inability of file clerks to supply files in a speedy fashion. The entire company from top to
bottom viewed the productivity and effectiveness of the department as unacceptable. An underwriter used
20-50 files per day. Because of their distrust of the files department, underwriters tended to hoard often
used files. A count by operations analysts found that each underwriter kept from 100-200 files in his or her
office at any one time. An underwriter would request a file by computer and work on other business until
the file was received. Benson employed 25 underwriters.
Management Information System
Upper management was deeply concerned about this problem. The MIS department had suggested using
video disks as a possible solution. A video disk system was found that would be sufficient for the
companies needs at a cost of about $12 million. It was estimated that the system would take two years to
install and make compatible with existing information systems. Another, less attractive was using
microfilm. A microfilm system would require underwriters to go to a single keyboard to request paper
copies of files. The cost of a microfilm system was $5 million.
Questions:
1. What do you recommend? Should the company implement one of the new technologies, if yes,
why?
Examination Paper of Production and Operations Management
4
IIBM Institute of Business Management
2. An operations analyst suggested that company employees shared a “dump on the clerks”
mentality. Explain.
Caselet 2
Harrison T. Wenk III is 43, married, and has two children, ages 10 and 14. He has a master‟s degree
in education and teachers junior high school music in a small town in Ohio. Harrison‟s father passed
away two months ago, leaving his only child an unusual business opportunity. According to his
father‟s will, Harrison has 12 months to become active in the family food-catering business, Kare-
Full Katering, Inc., or it will be sold to two key employees for a reasonable and fair price. If Harrison
becomes involved, the two employees have the option to purchase a significant, but less than
majority, interest in the firm. Harrison‟s only involvement with this business, which his grandfather
established, was as an hourly employee during high school and college summers. He is confident that
he could learn and perhaps enjoy the marketing side of the business, and that he could retain the longtime
head of accounting/finance. But he would never really enjoy day-to-day operations. In fact, he
doesn‟t understand what operations management really involves. In 1991 Kare-Full Katering, Inc. had
$3.75 million in sales in central Ohio. Net profit after taxes was $ 105,000, the eleventh consecutive
year of profitable operations and the seventeenth in the last 20 years. There are 210 employees in this
labor-intense business. Institutional contracts account for over 70 percent of sales and include partial
food services for three colleges, six commercial establishments) primarily manufacturing plants and
banks), two long -term care facilities, and five grade schools. Some customer location employs a
permanent operations manager; others are served from the main kitchens of Kare-Full Katering.
Harrison believes that if he becomes active in the business, one of the two key employees, the vice
president of operations, will leave the firm. Harrison has decided to complete the final two months of
this school year and then spend the summer around Kare-Full Katering – as well as institutions with
their own food services – to assess whether he wants to become involved in the business. He is
particularly interested in finding out as much as possible about operations. Harrison believes he owes
it to his wife and children to fairly evaluate this opportunity.
Questions:
1. Prepare a worksheet of operations activities that Harrison should inquire about this summer.
2. If you were Harrison, what would you do? Why?

 

Caselet 1
National Competitive Advantage of IKEA Group, a Swedish company founded in 1943 with its
headquarters in Denmark, is a multinational operator of a chain of stores for home furnishing and
furniture. It is the world‟s largest retailer, which specializes, in stylish but inexpensive Scandinavian
designed furniture. At the end of 2005 the IKEA Group of Companies had a total of 175 stores in 31
countries. In addition there are 19 IKEA stores owned and run by franchisees, outside the IKEA store
around the world.
In Sweden, nature and a home both play a big part in people‟s life. In fact one of the best ways to describe
the Swedish home furnishing style is to describe nature-full of light and fresh air, yet restrained and
unpretentious.
To match up the artist Carl and Karin Larsson combined classical influences with warmer Swedish folk
styles .They created a model of Swedish home furnishing design that today enjoys world-wide renown. In
the 1950s the styles of modernism and functionalism developed at the same time as Sweden established a
society founded on social equality .The IKEA product range –The IKEA product range- modern but not
trendy, functional yet attractive, human-centered and child friendly – carries on these various Swedish
home furnishing traditions.
The IKEA Concept, like lots founder, was born in Samaland. This is a part of Southern Sweden where the
soil is thin and poor. The people are famous for working hard, living on small means and using their
heads to make the best possible use of the limited resources they have. This way of doing things is at the
heart of the IKEA approach to keeping prices low.
IKEA was founded when Sweden was fast becoming an example of the caring society, where rich and
poor alike were well looked after. This is also a theme that fits well with the IKEA vision. In order to give
the many people a better everyday life, IKEA asks the customer to work as a partner. The product range is
child-friendly and covers the need of the whole family, young and old. So together we can a better
everyday life for everyone.
In addition to working about around 1,800 different suppliers across the world, IKEA produces many of
its own products through sawmills and factories in the IKEA industrial group, Swedwood.
Swedwood also has a duty to transfer knowledge to other suppliers, for example by educating them in
issues such as efficiency, quality and environmental work.
Swedwood has 35 industrial units in 11 countries.
Examination Paper of Strategic Management
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IIBM Institute of Business Management
Purchasing: IKEA has 42 Trading Service Offices (TSO‟s) in 33 countries. Proximity to their suppliers
is the key to rational, long term cooperation. That‟s why TSO co-workers visit suppliers regularly to
monitor production, test new ideas, negotiate prices and carry out quality audits and inspection.
Distribution: The route from supplier to customer must be as direct, cost- effective and environmentally
friendly as possible. Flat packs are important aspects of this work: eliminating wasted space means we
can transport and store goods more efficiently. Since efficient distribution plays a key role in the work of
creating the low price, goods routing and logistics are a focus for constant development.
The business Idea: The IKEA business idea is to offer a wide range of home furnishings with good design
and function at prices so low that as many people as possible will be able to afford them. And still have
many left! The company targets the customer who is looking for value and is willing to do a little bit of
work serving themselves, transporting the items home and assembling the furniture for a better price. The
typical IKEA customer is young low to middle income family.
The Competition Advantage: The competition advantage strategy of IKEA‟s product is reflected through
IKEA‟s success in the real industry. It can be attributed to its vast experience in the retail market, product
differentiation, and cost leadership.
IKEA Product Differentiation: A wide product range The IKEA product range is wide and versatile in
several ways. First, it‟s versatile in function. Because IKEA think customer, shouldn‟t have to run from
one small specialty shop to another to furnish their home, IKEA gather plants, living room furnishings,
toys , frying pans, whole kitchens i.e.; everything which in a functional way helps to build a home – in
one place , at IKEA stores.
Second, it‟s wide in style. The romantic at heart will find choices just as many as the minimalist at IKEA.
But There is only one thing IKEA don‟t have, and that is, the far- out or the over-decorated. They only
have what helps build a home that has room for good living.
Third, by being coordinated, the range is wide in function and style at the same time. No matter which
style you prefer, there‟s an armchair that goes with the bookcase that goes with the new extending table
that goes with the armchair. So their range is wide in a variety of ways.
Cost Leadership: A wide range with good form and function is only half the story. Affordability has a part
to play – the largest part. A wide range with good form and function is only half the story. Affordability
has a part to play- the largest part. And the joy of being able to own it without having to forsake
everything else. And the customers help, too, by choosing the furniture, getting it at the warehouse,
transporting it home and assembling it themselves , to keep the price low.
Questions
1. Do you think that IKEA has been successful to utilize Porter‟s Five force analysis? Give
reasons.
2. Where do you think can IKEA improve?
Examination Paper of Strategic Management
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IIBM Institute of Business Management
Caselet 2
For ITC Ltd., 2007-2008 continued to be year of quiet growth. Just more launches in its relatively new
segment of non-cigarettes fast moving consumer goods, and solid growth. As in the past few years, ITC‟s
non-cigarettes businesses continued to grow at a scorching pace, accounting for a bigger share of overall
revenues. “The non-cigarette portfolio grew by 37.6% during 2006-2007 and accounted during that year
for 52.3% of the company‟s net turnover.” An ITC spokesman said. In fact, over the first three quarters of
2007-08, ITC‟s non-cigarette FMCG businesses have grown by 48% on the same period last year,
“Indicating that its plans for increasing market share and standing are succeeding.”
The branded packaged foods business continued to expand rapidly, with the focus on snacks range Bingo.
The biscuit category continued its growth momentum with the „Sun feast‟ range of biscuits launching
„Coconut‟ and „Nice‟ variants and the addition of „ Sunfeast BenneVita Flaxseed‟ biscuits. Aashirwad atta
and kitchen ingredients retained their top slots at the national level, with the spices category adding an
organic range. In the confectionery category which grew by 38% in the third quarter, ITC cited AC
Nielsen data it claims market leader status in throat lozenges. Instant mixes and pasta powdered the sales
of its ready to eat foods under the kitchens of India and Aashirwad brands.
In Lifestyle apparel, ITC launched Miss Players fashion wear for young women to compliment its range
for men.
Overall, the biscuit category grew by 58% during the last quarter, ready to eat foods under the kitchens of
India and Aashirwad brands by 63% and the lifestyle business by 26%.
For the Industry, the most significant initiative to watch the ITC foray into premium personal care
products with its Fiama Di Wills range of shampoos , conditioners, shower gels, and soaps. In the popular
segment, ITC has launched a range of soaps and shampoos under the brand name Superia.
Ravi Naware, Chief executive of ITC‟s food business was quoted recently as saying that the business will
make a positive contribution to ITC‟s bottom line in the next two to three years.
In hotels, ITC‟s Fortune Park brand was making the news during the year, with a rapid rollout of first
class business hotels.
In the agri-business segment, the e-choupal network is trying out a pilot in retailing fresh fruits and
vegetables. The e-choupals have already specialized in feeding ITC high quality wheat and potato, among
other commodities grown by farmers with help from e-choupal.
Questions:
Q1. Do you think the progress of ITC Ltd. is realistic?
Q2. After analyzing the above case, do you think every company should aim at cost leadership with high
quality product?

 

Caselet 1
Database management system is the complex software which is aimed at the management of the
information stored in the database effectively. A high-quality management system helps organize,
manipulate, transform, store, retrieve and create data professionally. It is important that the whole
information kept in the database could be accessible, manageable, and easy for manipulation. A
successful DBMS should possess a strict logical structure, which enables everyone to find the required
data easily. The high-quality management system gives the opportunity for the user to change the
required information without any harm to the whole application. Database management systems are
extremely important today, because the humanity lives in the age of information and the whole
information is kept in databases which require professional skilful management and flexibility.
Every organization, private and public, connected with business or not possesses the necessary
information which is essential for its proper functioning. The information is supposed to be stored in
security and only the employees of an organization can have access to it. The idea of a good database
management system is to make the work of an organization easier, faster and of higher quality,
because the easier and the faster the access to the data is, the faster the work will be. Moreover, if the
information becomes out-of-date, the experts can modify it and introduce the necessary changes to
make it valid.
1. What are the roles of a database in present scenario?
Caselet 2
The most dramatic advance of the past decade in software technology has been the development of
database management systems (DBMS). There is little question about the potential of these systems
for enhancing system support to managers and users while reducing design, structuring, and
END OF SECTION A
Examination Paper of Information Technology
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IIBM Institute of Business Management
maintenance problems. Database systems also provide a way of improving information system
flexibility by decoupling user-oriented data structures from physical storage methods. In spite of the
vast potential of database management systems, the information systems community has not reacted
with the total enthusiasm that might have been expected. Significant resistance has been encountered
in some organizations, both from users, systems managers, and programming staff members. Although
the literature on the features of database systems is substantial, there is little discussion of resistance
problems encountered during the actual implementation and use of these systems in organizations. The
purpose of this panel is to examine issues related to resistance toward DBMS in organizations. The
panel members, each of whom is experienced in this area, will examine a number of organizational,
technical, and application issues pertinent to the problem of resistance. The discussion will focus on
why this resistance has occurred and how, if at all possible, it could have been avoided. Both
behavioral and technical issues will be examined. This session should be of interest to both the
practitioner and theorist alike. Database management systems are collectively the most significant
software product advance in the last decade. There is little question about the potential of these
systems for improving data management in organizations. Yet not all persons show a level of
enthusiasm for these systems that their capabilities would merit. Users and systems persons alike have
been known to resist acquisition and/or introduction of database management systems, sometimes
strongly. In the discussion that follows, the problem of resistance as it applies to database management
systems is introduced. The intent is to raise issues for research and investigation rather than to provide
concrete answers to problems.
1. Discuss various anomalies in databases. How would you improve data management in
organizations?

 

Caselet 1
Tech Knowledge is a start-up founded in 1997 by Robert Thyer. The company is a distributer of
presentation technologies, including computer based projection systems, video equipment, and
display technologies. The firm has 25 employees and does $5 million in sales. It is growing rapidly.
The owner, Robert Thyer, would like to net source the back-office functions of the firm because the
company does not have an internal IT capability. The applications to be net sourced would include
sales and distribution, financial accounting, and inventory management.
Tech Knowledge would like to source SAP or another ERP vendor via a hosting arrangement. It
does not expect to do much customization, and it does not have any legacy systems.
Questions:
1. What factors should it use to evaluate each of these potential hosts?
2. What controls should be in place to monitor the hosting arrangement?
Caselet 2
ITM is a company specializing in network implementation and management. It provides networking
services to mid-sized companies, which do not have an internal networking analyst or IT, manager.
These organizations include real estate companies, law offices, medical practices, architectural /
engineering firms, construction companies, business services providers, country clubs, community
organizations, and churches.
ITM uses a legacy accounting system to handle its financial accounting and financial management
functions. It has added on a billing package for client services. The next step is to obtain a CRM
capability to manage information about current and prospective customers more effectively.
You have been assigned to identify potential sources for a net-sourcing arrangement with an ERP
vendor, which provides CRM capabilities.
Questions:
1. Identify potential sources of software.
2. Determine five criteria you will recommend be used to evaluate each of alternative providers.

 

Caselet 1
Case1: Credit Decision – Agarwal Case
On August 30, 2006, Agarwal Cast Company Inc., applied for a $200,000 loan from the main office
of the National bank of New York. The application was forwarded to the bank’s commercial loan
department. Gupta, the President and Principal Stockholder of Agarwal cast, applied for the loan in
person. He told the loan officer that he had been in business since February 1976, but that he had
considerable prior experience in flooring and carpets since he had worked as an individual contractor
for the past 20 year. Most of this time, he had worked in Frankfert and Michigan. He finally decided
to “work for himself” and he formed the company with Berry Hook, a former co-worker. This
information seemed to be consistent with the Dun and Bradstreet report obtained by the bank
According to Gupta, the purpose of the loan was to assist him in carrying his receivables until they
could be collected. He explained that the flooring business required him to spend considerable cash to
purchase materials but his customers would not pay until the job was done. Since he was relatively
new in the business, he did not feel that he could compete if he had to require a sizeable deposit or
payment in advance. Instead, he could quote for higher profits, if he were willing to wait until
completion of the job for payment. To show that his operation was sound, he included a list of
customers and projects with his loan application. He also included a list of current receivables.
Gupta told the loan officer that he had monitored his firm’s financial status closely and that he had
financial reports prepared every six months. He said that the would send a copy to the bank. In
addition, he was willing to file a personal financial statement with the bank.
Question:
1. Prepare your recommendation on Agarwal Cast Company
Caselet 2
This case has been framed in order to test the skills in evaluating a credit request and reaching a
correct decision. Perluence International is large manufacturer of petroleum and rubber-based
products used in a variety of commercial applications in the fields of transportation, electronics, and
heavy manufacturing. In the northwestern United States, many of the Perluence products are
marketed by a wholly-owned subsidiary, Bajaj Electronics Company. Operating from a headquarters
and warehouse facility in San Antonio, Strand Electronics has 950 employees and handles a volume
of $85 million in sales annually. About $6 million of the sales represents items manufactured by
Perluence. Gupta is the credit manager at Bajaj electronics. He supervises five employees who handle
credit application and collections on 4,600 accounts. The accounts range in size from $120 to
$85,000. The firm sells on varied terms, with 2/10, net 30 mostly. Sales fluctuate seasonally and the
Examination Paper of Financial Management
IIBM Institute of Business Management 4
average collection period tends to run 40 days. Bad-debt losses are less than 0.6 per cent of sales.
Gupta is evaluating a credit application from Booth Plastics, Inc., a wholesale supply dealer serving
the oil industry. The company was founded in 1977 by Neck A. Booth and has grown steadily since
that time. Bajaj Electronics is not selling any products to Booth Plastics and had no previous contact
with Neck Booth. Bajaj Electronics purchased goods from Perluence International under the same
terms and conditions as Perluence used when it sold to independent customers. Although Bajaj
Electronics generally followed Perluence in setting its prices, the subsidiary operated independently
and could adjust price levels to meet its own marketing strategies. The Perluence’s cost-accounting
department estimated a 24 per cent markup as the average for items sold to Pucca Electronics. Bajaj
Electronics, in turn, resold the items to yield a 17 per cent markup. It appeared that these percentages
would hold on any sales to Booth Plastics. Bajaj Electronics incurred out-of pocket expenses that
were not considered in calculating the 17 per cent markup on its items. For example, the contact with
Booth Plastics had been made by James, the salesman who handled the Glaveston area. James would
receive a 3 per cent commission on all sales made Booth Plastics, a commission that would be paid
whether or not the receivable was collected. James would, of course, be willing to assist in collecting
any accounts that he had sold. In addition to the sales commission, the company would incur variable
costs as a result of handling the merchandise for the new account. As a general guideline,
warehousing and other administrative variable costs would run 3 per cent sales. Gupta Holmstead
approached all credit decisions in basically the same manner. First of all, he considered the potential
profit from the account. James had estimated first-year sales to Booth Plastics of $65,000. Assuming
that Neck Booth took the, 3 per cent discount. Bajaj Electronics would realize a 17 per cent markup
on these sales since the average markup was calculated on the basis of the customer taking the
discount. If Neck Booth did not take the discount, the markup would be slightly higher, as would the
cost of financing the receivable for the additional period of time. In addition to the potential profit
from the account, Gupta was concerned about his company’s exposure. He knew that weak customers
could become bad debts at any time and therefore, required a vigorous collection effort whenever
their accounts were overdue. His department probably spent three times as much money and effort
managing a marginal account as compared to a strong account. He also figured that overdue and
uncollected funds had to be financed by Bajaj Electronics at a rate of 18 per cent. All in all, slow –
paying or marginal accounts were very costly to Bajaj Electronics. With these considerations in mind,
Gupta began to review the credit application for Booth Plastics.
Questions:
1. How would you judge the potential profit of Bajaj Electronics on the first year of sales to Booth
Plastics and give your views to increase the profit?
2. Suggestion regarding Credit limit. Should it be approved or not, what should be the amount of
credit limit that electronics give to Booth Plastics.

 

Caselet 1
END OF SECTIONA
Examination Paper of Information Technology
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IIBM Institute of Business Management
It began as a trading site for nerds, the newly jobless, home-bound housewives, and bored retirees to
sell subprime goods: collectibles and attic trash. But eBay (www.ebay.com) quickly grew into a
teeming marketplace of 30 million, with its own laws and norms, such as a feedback system in
which buyers and sellers rate each other on each transaction. When that wasn‟t quite enough, eBay
formed its own police force to patrol the listings for fraud and kick out offenders. The company even
has something akin to a bank: Its Paypal payment-processing unit allows buyers to make electronic
payments to eBay sellers who can‟t afford a merchant credit card account. “eBay is creating a
second, virtual economy,” says W. Brian Arthur, an economist at think tank Santa Fe Institute. “It‟s
opening up a whole new medium of exchange.” eBay‟s powerful vortex is drawing diverse
products and players into its profitable economy, driving its sellers into the heart of traditional
retailing, a $2 trillion market. Among eBay‟s 12 million daily listings are products from giants such
as Sears Roebuck, Home Depot, Walt Disney, and even IBM. More than a quarter of the offerings
are listed at fixed prices. The result, says Bernard H. Tenenbaum, president of a retail buyout firm, is
“They„re coming right for the mainstream of the retail business.” So what started out as a pure
consumer auction market-place is now also becoming a big time business-to-consumer and even
business-to-business bazaar that is earning record profits for eBay‟s stockholders. And as the eBay
economy expands, CEO Meg Whitman and her team may find that managing it could get a lot
tougher, especially because eBay‟s millions of passionate and clamorous users demand a voice in all
major decisions. This process is clear in one of eBay‟s most cherished institutions: the voice of the
Customer program. Every couple of months, the executives of eBay bring in as many as a dozen
sellers and buyers, especially its high selling “Power Sellers,” to ask them questions about how they
work and what else eBay needs to do. And at least twice a week, it holds hour-long teleconferences
to poll users on almost every new feature or policy, no matter how small. The result is that users
feel like owners, and they take the initiative to expand the eBay economy – often beyond
management‟s wildest dreams. Stung by an aerospace down-turn, for instance, machine-tool shop
Reliable Tools Inc., tried listing a few items on eBay in late 1998. Some were huge, hulking chunks
of metal, such as a $7,000 2,300-pound milling machine. Yet they sold like ice cream in August.
Since then, says Reliable‟s auction manager, Richard Smith, the company‟s eBay business has
“turned into a monster.” Now the Irwindale (California) shop‟s $1 million in monthly eBay sales
constitutes 75% of its overall business. Pioneers such as Reliable promoted eBay to set up an
industrial products marketplace in January that‟s on track to top $500 million in gross sales this
year.Then there is eBay Motors. When eBay manager Simon Rothman first recognized a market for
cars on cars on eBay in early 1999, he quickly realized that such high-ticket items would require a
different strategy than simply opening a new category. To jump-start its supply of cars and
customers, eBay immediately bought a collector-car auction company, Kruse International, for $150
million in stock, and later did a deal to include listings from online classifieds site, AutoTrader.com.
Rothman also arranged insurance and warranty plans, an escrow service, and shipping and
inspection services.This approach worked wonder. Sales of cars and car parts, at a $5 billion-plus
annual clip, are eBay’s single largest market. That has catapulted eBay in front of No. 1 U.S. auto
dealer AutoNation in number of used cars sold. About half of the sellers are brick-and-mortar dealers
who now have a much larger audience than their local area. “eBay is by far one of my better sources
for buyers,” says Bradley Bonifacius, Internet sales director at Dean Stallings Ford in Oak Ridge,
Tennessee. And for now, the big corporations, which still account for under 5 percent of eBay‟s
gross sales, seem to be bringing in more customers then they steal. Motorola Inc., for example,
helped kick off a new wholesale business for eBay last year, selling excess and returned cell phones
in large lots. Thanks to the initiative of established companies such as Motorola, eBay‟s wholesale
business jumped ninefold, to $23 million, in the first quarter.As businesses on eBay grow larger,
they spur the creation of even more businesses. A new army of merchants, for example, is making a
business out of selling on eBay for other people. From almost none a couple of years ago, these so
called Trading Assistants now number nearly 23,000. This kind of organic growth makes it
Examination Paper of Information Technology
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IIBM Institute of Business Management
exceedingly though to predict how far the eBay economy can go. Whitman professes not to know.
“We don‟t actually control this,” she admits. “We are not building this company by ourselves. We
have a unique partner – million of people.”
Questions:
1. Why has eBay become such a successful and diverse online marketplace? Visit the eBay website
to help you answer, and check out their many trading categories, specialty sites, international
sites, and other features.
2. Why do you think eBay has become the largest online/offline seller of used cars, and the largest
online seller of certain other products, like computers and photographic equipment?
Caselet 2
It‟s no secret that somewhere in a back room in the typical Fortune 500 company, there‟s a team of
analytical wizards running sophisticated data mining queries that mine for gems such as data about
about the company‟s best customers – those top 20 percent of clients that produce 80 percent of the
company‟s profits. These jewels can be a business‟s most valuable intellectual property, which
makes them very valuable to competitors. What‟s to prevent that data set from walking out the door
or falling into the wrong hands? Sometimes, not much. Many companies lack the internal controls to
prevent that information from leaking. The problem is that such data is as hard to protect as it is to
find. Owens & Minor Inc. (www.ownes-minor.com), a $4 billion medical supplies distributor,
counts some of the nation‟s largest health care organizations among its customers. In late 1996, it
started mining data internally using business intelligence software from Business Objects SA. “From
the beginning, we were aware of security issues around this strategic information about our
operations,” says Don Stoller, senior director of information systems at Owens & Minor. “For
example, a sales executive in Dallas should only have access to analyses from his region.” It is
always possible that someone who has legitimate access will abuse that trust, but companies can
minimize that potential by strictly limiting access to only those who need it. thus, Owens & Minor
uses role-level security functions that clearly define who has access to which data. “This meant we
had to build a separate security table in our Oracle database,” says Stoller. A few years later, when
the company wanted to open its systems to suppliers and customers, security became even more
important. In 1998, Owens & Minor moved quickly to take advantage of Web-intelligence software
from Business Objects that‟s designed to Web-enable business intelligence systems. The result was
Wisdom, an extranet Web portal that lets Owens & Minor‟s suppliers and customers access their
own transactional data and generate sophisticated analyses and reports from it.“It business-tobusiness
transactions, security is key,” says Stoller. “We had to make absolutely sure that Jhonson &
Jhonson, for example, could not see any 3M‟s information. This meant we had to set up specific
customer and supplier security tables, and we had to maintain new, secured database views using the
Oracle DBMS and Business Objects.”Wisdom was such a success that Owens & Minor decided to
go into the intelligence business with the launch of wisdom2 in the spring of 2000. “We capture data
out of a hospital‟s materials management system and load it into our data warehouse,” Stoller
explains. A hospital can then make full use of its business-intelligence software to mine and analyze
purchasing data. Owens & Minor receives a licensing and maintenance fee for the services.Layers of
security and encryption require a considerable amount of overhead data for systems administration.
Both Stoller and Michael Rasmussen, an analyst at Giga Information Group, say that‟s the main
reason security concerns about business intelligence are often swept under the carpet. The issues of
authentication (identifying the user) and authorization (what things the user is allowed to do) must
be addressed, usually across different applications, Rasmussen says, adding, “Systems
Examination Paper of Information Technology
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IIBM Institute of Business Management
administration can be a real nightmare.”“We are going through some of this,” says David Merager,
director of Web services and corporate applications at Vivendi Universal Games Inc.
(www.vugames.com). “Our business intelligence needs more security attention.” Business
intelligence reports come from two systems: an Oracle-based for budgets on a Microsoft SQL Server
database. The heart of the business intelligence system consists of Microsoft‟s OLAP application
and software from Comshare Inc. that provides the Web-based front end for the analytics. “Our
budget teams use these reports to do real-time analyses,” says Merager. Rodger Sayles, manager
of data warehousing at Vivendi Universal, says one way to secure such a system is to assign roles to
all users within the Microsoft application. Roles determine precisely what a user is allowed to see
and do and are usually managed within a directory. If your computing architecture is amenable to a
single, centralized directory that supports roles, this may be an attractive solution. “The problem is
that once you have over 40 distinct roles, you run into performance issues, and we have identified
about 70 user roles,” Sayles explains. He says there‟s way around this difficulty. “I think we are
going to use a combination of Web portals and user roles. A user would sign on through a particular
Web portal, which would effectively place the user in a role category. This reduces the overhead
burden on the application,” says Sayles.
Questions:
1. Why have developments in IT helped to increase the value of the data resources of many
companies?
2. How can companies use IT to meet the challenges of data resources security?


SUPPLY CHAIN MANAGEMENT IIBM ONGOING EXAM ANSWER SHEETS PROVIDED

SUPPLY CHAIN MANAGEMENT IIBM ONGOING EXAM ANSWER SHEETS PROVIDED WHATSAPP OR CALL 91 9924764558
Supply Chain Management
Section A: Objective Type & Short Questions (30 Marks)
 This section consists of Multiple Choice questions& Short Answer type questions.
 Answer all the questions.
 Part One questions carry 1 mark each & Part Two questions carry 2 marks each.
Part One:
Multiple Choices:
1. When demand is steady, the cycle inventory for a given lot size (Q) is given by
a. Q/4
b. Q/8
c. Q/6
d. Q/2
2. There are two firms „x‟ and „y‟ located on a line of distance demand(0-1) at „a‟ and „b‟
respectively, the customers are uniformly located on the line, on keeping the fact of splitting of
market, the demand of firm „x‟ will be given by,
a. (a+b)/2
b. a+(1-b-a)/2
c. (1+b-a)/2
d. a+(a-b)/2
3. Push process in supply chain analysis is also called
a. Speculative process
b. Manufacturing process
c. Supplying process
d. Demand process
4. If the Throughput be „d‟ and the flow time be „t‟ then the Inventory „I‟ is given by
a. I *d=t
b. I=t+d
c. d=I*t
d. I =d*t
5. Forecasting method is
a. Time series
b. causal
c. Qualitative
d. All the above
Examination Paper of Supply Chain Management
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IIBM Institute of Business Management
6. Component of order cost include
a. Handling cost
b. Occupancy cost
c. Receiving costs
d. Miscellaneous costs
7. How many distinct types of MRO inventory are there
a. One
b. Four
c. Three
d. Two
8. Supply chain driver is
a. Inventory
b. Return ability
c. Fulfillment
d. All of above
9. SRM stands for
a. Strategic Relationship Management
b. Supply Return ability Management
c. Supplier Relationship Management
d. None of the above
10. Discount factor equals to, where k is the rate of return.
a. 1/1+k
b. 2/1+k
c. 1/1-k
d. 1/2+k
Part Two:
1. Explain “zone of strategic fit”.
2. Explain “scope of strategic fit”.
3. What do you understand by “stimulation forecasting method”?
4. Write a note on “obsolescence (or spoilage) cost”.
5. Define “square law” in safety inventory of supply chain management.
6. What does the word “postponement” signifies in supply chain?
7. What do you understand by the term “tailored sourcing”?
8. Explain the term “outsourcing”.
9. Write a note on “threshold contracts” for increasing agent efforts.
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10. What is “dynamic pricing”?
END OF SECTION A
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 200 to 250 words).
Caselet 1
Orion is a global co. That sells copiers. Orion currently sells 10 variants of a copier, with all inventory
kept in finished-goods form. The primary component that differentiates the copiers is the printing
subassembly. An idea being discussed is to introduce commonality in the printing subassembly so
that final assembly can be postponed and inventories kept in component form. Currently, each copier
costs $1,000 in terms of components. Introducing commonality in the print subassembly will increase
component cost to$1.025.One of the 10 variants represents 80 percent of the total demand. Weekly
demand for this variant is normally distributed ,with a mean of 1,000 and a standard deviation of
200.Each of the remaining nine variants has a weekly demand of 28 with a standard deviation of
20.Orion aims to provide a 95per level of services .Replacement lead time for components is four
weeks. Copier assembly can be implemented in a matter of hours. Orion manages all inventories
using a continuous review policy and uses a holding cost of 20 percent.
1. How much safety inventory of each variant must Orion keep without component commonality?
What are the annual holding costs?
2. How much safety inventory must be kept in component form if Orion uses common components
for all variants? What is the annual holding cost? What is the increase in component cost using
commonality? Is commonality justified across all variants?
3. At what cost of commonality will complete commonality be justified?
4. At what cost of commonality will commonality across the low-volume variants be justified?
Caselet 2
An electronic manufacturer has outsourced production of its latest MP3 player to a contract
manufacturer in Asia. Demand for the players has exceeded all expectations whereas the contract
manufacturers sell three types of players- a 40-GB player, a 20-GB player, 6-GB player. For the
upcoming holiday season, the demand forecast for the 40-GB player is normally distributed, with a
mean of 20,000and a standard deviation Dard deviation of 11,000, and the demand forecast for the 6-
GB player has a mean of 80,000 and a standard deviation of 16,000. The 40-GB player has a sale
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price of $200, a production cost of $100, and a salvage value of $80 .The 20-GB player has a price of
$150, a production cost of $70, and a salvage value of $50.
1. How many units of each type of player should the electronics manufacturer order if there are no
capacity constraints?
2. How many times of each type of player should the electronics manufacturer order if the available
is 140,000? What is the expected profit?
END OF SECTION B
Section C: Applied Theory (30 marks)
 This section consists of Long Questions.
 Answer all the questions.
 Each question carries 15 marks.
 Detailed information should form the part of your answer (Word limit 150 to 200 words).
1. Consider two products with the same margin carried by a retail store. Any leftover units of one
product are worthless. Leftover units of the other product can be sold to outlet stores. Which
product should have a higher level of availability? Why?
2. McMaster-Carr sells maintenance, repair, and operations equipment from five warehouses in the
United States. W.W. Grainger sells products from more than 350 retail locations, supported by
several warehouses. In both cases, customers place orders using the Web or on the phone. Discuss
the pros and cons of the two strategies.
END OF SECTION C
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IIBM Institute of Business Management
Examination Paper MM.100
Statistical Quality Control
Section A: Objective Type & Short Questions (30 Marks)
 This section consists of Multiple choice questions & Short Answer type questions.
 Answer all the questions.
 Part One questions carry 1 mark each & Part Two questions carry 4 marks each.
Part One:
Multiple choices:
1. If in a hall there are 18 persons then how many handshakes are possible
a. 18*18
b. 18*17/2
c. 18*17
d. None
2. If the number of trials be „n‟ and the probability of occurrence be „p‟ then the standard deviation
with respect to np, is given by
a. (np)1/2
b. (np(1-p))1/2
c. (np)1/4
d. (np(1-p))1/4
3. For a biased coin the probability of occurrence of head is 0.4 ,if the coin is tossed twice then the
probability of occurrence of at least one head will be
a. 0.76
b. 0.48
c. 0.64
d. 0.16
4. Factorial of 5 equals
a. 60
b. 120
c. 24
d. 5
5. Combinatory of (4,2) equals
a. 12
b. 8
c. 6
d. None
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6. „Economic Control of Quality of Manufactured Product‟, a book by Walter A Shewhart in
a. 1931
b. 1941
c. 1930
d. 1956
7. Quality is judged by…………
a. Retailer
b. Government
c. Customer
d. Hole seller
8. A run chart is a special chart of…………
a. Pie chart
b. Line chart
c. R chart
d. C chart
9. Universes may differ
a. In average
b. In above average
c. At higher level
d. All of the above
10. ASQC and ANSI began in
a. 1956
b. 1976
c. 1978
d. 1960
Part Two:
1. Differentiate between „defect‟ and „defective‟.
2. Explain the need of „short method‟.
3. What does „Tchebycheff‟s inequality theorem‟ say?
4. Explain the usability of „stochastic limit‟.
5. Write a note on „Cause and Effect‟ diagram.
END OF SECTION A
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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 200 to 250 words).
Caselet 1
ADAPTABILITY IN ACTION: A CASE OF RSL
Rajasthan Synthetics Ltd. (RSL) was established in the year 1994 at Bhilwara, Rajasthan to
manufacture synthetic yarn with a licensed capacity of 29,000 spindles. Manish Kumar, a Harvard
Business School graduate, established RSL with 8% equity participation from Itochu Corporation
Japan to manufacture synthetic yarn for shirting, a promising business at that time. The demise of the
NTC textile mills was fresh in the minds of the promoters and therefore, state of the art technology
imported from U.K., Germany, Japan and France was used in the manufacturing facility. By the time
the company started manufacturing yarn the competition in shirting yarn had become fierce and the
returns had diminished. The company incurred losses in the first four years of its operations and the
management was looking for opportunities to turn things around. The manufacturing plant started
functioning with an installed capacity of 26,000 spindles, a small unit considering yarnmanufacturing
industry, in the year 1996 to manufacture synthetic yarn for shirting only. Initially, the
major fabric manufactures of India such as Raymonds, Donear, Grasim, Amartex, Siyaram, Pantaloon
and Arviva were the main customers of the company and the total produce of the company was sold
within the domestic market. These fabric manufactures used to import the premium quality yarn
before RSL started supplying the yarn to them. The company in the first year of its operations
realized that shirting yarn was one of the fiercely competitive products and the company with its high
interest liability was unlikely to earn the desired profits. Also, the company had a narrow product mix
limited to only two more blow room lines were installed in the first quarter of 1997. The addition of
two blow room lines helped RSL to manufacture four different types of yarns at the same time.
Utilizing this added flexibility, RSL began manufacturing yarn for suitings.Since the suiting yarn was
providing better returns, the company was keen to increase manufacturing of suiting yarn but was
hampered by the two for one doubling (TFO) facility, which was limited to only 40% of the total
produce. To remove this bottleneck, 12 more TFO machines were added to the existing 8 TFO
machines. The addition of these machines increased the doubling capacity to 70% of the production
providing additional product mix flexibility to the company. This enabled the company to
manufacture yarn to cater to the requirements of suiting, industrial fabric and carpet manufacturers. In
the initial years of its operations, RSL realized that the promises made by the Government of
Rajasthan to provide uninterrupted power supply of the required quality (stable voltage and
frequency) and ample quantity of water were unlikely to be met through the public distribution
system. The voltage and frequency of electric power provided through the public distribution system
were erratic and frequent announced and unannounced power cuts stopped production on a regular
basis. In these circumstances, meeting quality requirements of the customers and adhering to delivery
schedules was a herculean task. To ensure smooth and uninterrupted operations RSL installed inhouse
power generation facility of 4 megawatts capacity and dug 10 tube-wells.RSL faced stiff
competition in the domestic market from Gujarat Spinning and Weaving Mills, Surat, Rajasthan
Textile Mills, Bhawani Mandi, Charan Spinning Mills, Salem and Indorama Synthetics Ltd.,
Pithampur in all their product categories and the returns were low. In order to combat stiff
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competition in the domestic market and improve returns the company started developing export
markets for their products in the year 1998. Initially, RSL started exporting carpet yarn to Belgium
and till 2001; carpet yarn formed the major component of their exports. A trade agreement was signed
with Fibratex Corporation, Switzerland to share profits equally for expanding their overseas
operations. During the same period, RSL continued to scout for new export markets and was
successful in entering top-of-the-line fancy for premium fashion fabric manufactures of international
repute like Mango and Zara. Rajasthan Synthetics Ltd. also exported fancy yarn to a number of fabric
manufacturers located in Italy, France, England, Spain and Portugal. Yarn manufacturers from
Indonesia, Korea and Taiwan gave stiff competition to RSL when it entered the international market.
The companies from South Asian countries had a major cost advantage over RSL because of cheap,
uninterrupted availability of power and high labour productivity. Currencies had been sharply
devalued during the South Asian financial crisis, which rendered the products manufactured by these
companies still cheaper in international markets. Despite all these disadvantages, RSL was able to
gain a foothold through constant adaption of their products according to the customer requirements in
the highly quality conscious international yarn market and was exporting 95% of its total produce by
the beginning of the year 2002.
Rajasthan Synthetics Ltd. had fine-tuned its distribution channels according to the type of markets
and size of orders from the customers. In line with this policy the export to Middle East, Far East and
Turkey was carried out through agents. Similarly, low volume export of fancy yarn requirements was
also catered through agents. While dealing with importers directly, RSL strictly followed the policy
of exports against confirmed Letter of Credits only. The company directly exported to important
clients in Belgium, England and France. The domestic market was also served through an agency
system. Rajasthan Synthetics Ltd. considered inventories as an unnecessary waste and kept minimum
possible inventories while ensuring required level of service. To ensure that the inventories were held
to a minimum, the manufacturing plan consisted of 60 to 70% against customer orders, 30 to 40%
against anticipated sales and 2% capacity was reserved for new product development. A Strategic
Management Committee (SMC) consisting of MD, CEO, GM (marketing) and GM (technical)
reviewed the production plan of the manufacturing plant on quarterly basis. The SMC also developed
the plans for profitability, product mix and cost minimization. Delivering high-quality products and
meeting delivery commitments for every shipment were essential pre-requisites to be successful in the
global market place. The company had understood this very early and to ensure that the products
manufactured by RSL met the stringent quality requirements of its international customers, the
company had developed a full-fledged testing laboratory equipped with ultra modern testing
machines like User Tester-3 and Classifault. The company had stringent quality testing checks at
every stage of tarn production right from mixing of fiber to packing of finished cones. Its in-house
Research and Development and Statistical Quality Control (SQC) divisions ensured consistent
technical specifications with the help of sophisticated state-of-the-art machines. A team of
professionally qualified and experienced personnel to ensure that the yarn manufactured by the
company was in line with international standards backed the company. The company continuously
upgraded its product mix and at the same time, new products developed by in-house research and
development department were added to the product mix form time to time. RSL‟s management was
quick to analyze the potential of these in-house developments and followed a flexible approach in
determining the level of value addition. The company had developed a new yarn recently and was
selling it under the Rajtang brand name. This new yarn was stretchable in three dimensions, absorbed
moisture quickly, was soft and silky and fitted the body. This yarn was extracted from natural
products and being body-friendly, was in great demand in international markets. Looking at the
higher value addition possibilities RSL decided to forward integrate and started manufacturing fabric,
using Rajtang and provided ready-made garments like swimming suit, tracksuit, undergarments, tops,
slacks and kids dresses. The ready-made dresses from the fabric were being manufactured on the
specifications and designs of RSL. The management decided to market these products under the
brand name “Wear-it” through Wearwell Garments Pvt. Ltd., an associate company of RSL, to ensure
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that RSL did not lose its focus. The Managing Director of RSL felt that continuous adaptability to
market requirements through a flexible approach, cost cutting in every sphere of operations and team
approach to management had taken them ahead. However, RSL had become highly dependent on the
volatile export market and if it was not able to retain the international market it would have to reestablish
itself in the domestic market, which was not an easy task.
1. What marketing strategy should RSL adopt to remain competitive in the international market?
2. Has the company taken the right decision to forward integrate and enter into the highly volatile
garment market?
Caselet 2
Popular mythology in the United States likes to refer to pre-World War II Japan as a somewhat
backward industrial power that produced and exported mostly trinkets and small items of dubious
quality bought by Americans impoverished by the Great Depression. Few bring up the fact that, prior
to the Pearl Harbor attack, Japan had conquered what are now Korea, Manchuria, Taiwan, and a large
portion of China, Vietnam, and Thailand; and by the end of 1942 Japan had extended its empire to
include Burma, the Philippines, Indonesia, Malaysia, Thailand, Cambodia, New Guinea, plus many
strings of islands in the eastern Pacific Ocean. Its navy had moved a large armada of worships 4,000
miles across the Pacific Ocean, in secret and in silence, to attack Pearl Harbor and then returned
safely home. Manufacturers capable of producing only low-grade goods don‟t accomplish such feats.
High-quality standards for military hardware, however, did not extend to civilian and export goods,
which received very low priority during the war years. Thus the perception in the United States for a
long time before and then immediately after the war had nothing to do with some inherent character
flaw in Japanese culture or industrial capability. It had everything to do with Japan‟s national
priorities and the availability of funds and material. Following Japan‟s surrender in 1945, General
MacArthur was given the task of rebuilding the Japanese economy on a peaceful footing. As part of
that effort an assessment of damage was to be conducted and a national census was planned for 1950.
Deming was asked in 1947 to go to Japan and assist in that effort. As a result of his association with
Shewhart and quality training, he was contacted by representatives from the Union of Japanese
Scientists and Engineers (JUSE), and in 1950, Deming delivered his now famous series of lectures on
quality control. His message to top industry leaders, whom he demanded to attend, and to JUSE was
that Japan had to change its image in the United States and throughout the world. He declared that it
could not succeed as an exporter of poor quality and argued that the tools of statistical quality control
could help solve many quality problems. Having seen their country devastated by the war, industry
and government leaders were eager to learn the new methods and to speed economic recovery.
Experience was to prove to Deming and others that, without the understanding, respect, and support
of management, no group of tools alone could sustain a long-term quality improvement effort.
1. How could have the SQC approach, been useful in solving the immediate problems of Japan?
2. If you were among one of the management members, what would have been your first insight?
END OF SECTION B
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Section C: Practical Problems (30 marks)
 This section consists of Long Questions.
 Answer all the questions.
 Each question carries 15 marks.
1. A sample of 30 is to be selected from a lot of 200 articles. How many different samples are
possible?
2. In Dodge‟s CSP-1, it is desired to apply sampling inspection to 1 piece out of every 15 and to
maintain an AOQL of 2%. What should be the value of i?
END OF SECTION C
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International Marketing Management
Section A: Objective Type & Short Questions (30 Marks)
Part One:
Multiple choices:
1. International marketing includes activities that direct the flow of goods from:
a. One country to one country
b. One country to another country
c. One country to multiple country
d. All of the above
2. ETC stands for______________
a. Expert trading companies
b. Essential trading companies
c. Export trading companies
d. None of the above
3. Till 1950-56 there was no clear exim policy and no __________ restrictions of any kind.
a. Import
b. Export
c. Both a) & b)
d. None of the above
4. Tariffs have been one of the classical methods of regulating ___________ trade.
a. International
b. National
c. Domestic
d. None of the above
5. The world trade organization (WTO) was established on 1st January____________
a. 1996
b. 1995
c. 1997
d. None of the above
6. Export documentation is a very important area in ___________ management.
a. International
b. Import
 This section consists of Multiple Choice & Short Answer Type Questions.
 Answer all the questions.
 Part One carries 1 mark each & Part Two carries 5 marks each.
Examination Paper of Marketing Management
IIBM Institute of Business Management 2
c. Export
d. None of the above
7. Methods of export pricing are_____________
a. Cost plus pricing
b. Competitive pricing
c. Marginal pricing
d. All of the above
8. OCED has been a destination of a major portion of ___________exports.
a. Japan
b. USA
c. India
d. UK
9. Psychographic segmentation involves grouping people in terms of:
a. Attitudes
b. Life styles
c. Values
d. All of the above
10. Foreign direct investment would be permitted up to __________ in the development of the
zones.
a. 100%
b. 90%
c. 38%
d. 48%
Part Two:
1. Differentiate between domestic & international marketing.
2. Write a short note on World trade organization (WTO).
3. Briefly describe the exim policy of India (one part of India‟s export import policy).
4. Write a short note on tariff and non tariff barriers of international trade.
END OF SECTION A
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 150to 200).
Examination Paper of Marketing Management
IIBM Institute of Business Management 3
Caselet 1
Export Marketing:
The trade in black pepper is unhappy that exports may not show a sign of revival in prices in the
immediate future. World prices have been showing a downward trend for eighteen months and this has
resulted in much lower earnings for exporters. The UK, West Germany and the Netherlands have cut
their import requirement though the American demand has shown some growth. Brazil has been
resorting to aggressive selling at lower prices and the expectations are that its exports will reach an alltime
peak of 32,000 tones in the 1981-82 season. The 1981-82 Indian season is only about six weeks
away. The Brazilian offensive has forced India to withdraw so to any from the US and West European
markets and increase its reliance on communist buyers. As many as 1980-81.the Soviet Union alone
accounting for 12,647 tones. But exporters are concerned at the diversion on such a scale of this trade.
Questions:
1. Had you been the pepper exporter, what would be your short term and medium-term export
marketing strategy in the above environment?
2. Could you examine the weak points in this case study?
Caselet 2
SMART KIDS – SELLING EDUCATIONAL GAMES AND
RESOURCES TO THE WORLD
Smart Kids Ltd. An Auckland company that makes educational games and resources to read and
understand math‟s has won a Trade New Zealand Export Award for its success in international markets
in 2003.Established eight years ago in the family home basement, Smart Kids is led by husband and
wife team, joint chief executives David and Sun Milne and their sons Duncan and Frase. She Milne, an
ex-teacher, says from just 30 products when it started, the company produces more than 200 produces
catering for student‟s activities, grammar concepts and numeracy. She says the international appeal of
Smart Kids products was highlighted recently, when company‟s SMART PHONICS was listed amongst
the top five products out of almost 100 in the education trade show in the United Kingdom. The key
requirement for every new Smart Kids products is that it stimulates student‟s minds in the classroom,
teaches them a specific concept easily, enjoyably and permanently and enables problem solving. David
Milne says Smart Kids started selling its educational games and resources to New Zealand schools in
1995, drawings an immediate and strong response. It quickly became apartment that the New Zealand
market was not large enough to sustain considerable investment in product development, and secondly,
that their products have done so well that they deserved wider exposure.”Our export research came
down to two options. Find educational distributors in other countries or set-up our own operations. The
first option was less risky and easy to manage but it meant that Smart Kids products were lost in a wide
range of materials. So we went for the second option and over the next few years established offices in
Australia, in UK and Canada”. This has successfully branded Smart Kids as a leading supplier of
educational resources in these countries. Mr. Milne says the Smart Kids product catalogue is now sent
Examination Paper of Marketing Management
IIBM Institute of Business Management 4
regularly to teachers in more than 50,000 schools across the UK, Ireland, Canada and Australia. “We
also sell to schools in the US. In that market we elected to work through a distributor, we didn‟t have
the financial resources to set-up an operation that could cover almost 70,000 schools and compete with
every established educational publisher”. He says annual exports now exceed $2.2 million and account
for more than 90% of turnover. In order to grow the business, surplus profits are reinvested back into
product development, infrastructure – the company recently moved its Auckland operation into new
20,000 square feet premises in Ellerslie. Mr. Milne says the Smart Kids brand is now well established
internationally with the company enjoying many competitive advantages, including its New Zealand
origin. New Zealand education is highly regarded overseas and we find that international teachers to get
hold of educational products made in this country.
Questions:
1. What are the major considerations for a firm in order to while deciding its markets entry
strategy?
2. To what extent direct control and ownership are critical for Smart kids export distribution
strategy?
END OF SECTION B
Section C: Applied Theory (30 marks)
 This section consists of Applied theory.
 Answer all the questions.
 Each question carries 15 marks.
 Detailed information should form the part of your answer (Word limit 150 to 200 words).
1. What do mean by International marketing? Discuss the scope of International marketing.
2. Describe the export documentation framework in India in detail.
END OF SECTION C
Examination Paper of Marketing Management
IIBM Institute of Business Management 5
IIBM Institute of Business Management
Examination Paper MM.100
Research Methodology
Section A: Objective Type & Short Questions (30 Marks)
 This section consists of Multiple Choice & Short Answer Type questions.
 Answer all the questions.
 Part One carries 1 marks each & Part Two carries 5 marks each.
Part One:
Multiple Choices:
1. Research is an art of ____________ investigation.
a. Technological
b. Scientific
c. Political
d. None of the above
2. Exploratory research is flexible and very ___________ research.
a. Variable
b. Visuals
c. Versatile
d. None of the above
3. Frame error, chance error and response error are collectively called____________
a. Total error
b. Non sampling error
c. Sampling error
d. Universal error
4. Hypothesis testing is sometimes called ____________ analysis.
a. Exploratory data
b. Confirmatory data
c. Experimental data
d. Both a) & b)
5. Execution of the project is a very important step in the ____________ process.
a. Questions
b. Identification
c. Research
d. None of the above
Examination Paper of Marketing Management
IIBM Institute of Business Management 6
6. Thurstone scale is also known as ____________ scale.
a. Equal appearing interval
b. Equal alternatives interval
c. Equal alternatives item
d. None of the above
7. A ratio in which the units of numerator & denominator are not the same is termed as a:
a. Class
b. Rate
c. Data
d. None of the above
8. ANOVA stands for______________
a. Analysis of automobiles
b. Analysis of variable
c. Analysis of variance
d. None of the above
9. One tailed & two tailed test are the part of ____________ test.
a. Null
b. Hypothesis
c. Alternative
d. None of the above
10. Chi – square is an important ____________ test.
a. Parametric
b. Probability
c. Non – parametric
d. None the above
Part Two:
1. What is „Sequential sampling‟?
2. Write a short note on „nominal scale‟.
3. Write a note on „Z – Test‟. (One of the parametric test for hypothesis).
4. What are the cautions to be taken on χ2 (chi square) test?
END OF SECTION A
Examination Paper of Marketing Management
IIBM Institute of Business Management 7
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
Swastika Computer System was established in 1981 at Delhi to provide computer training. In 1980s
computer education was relatively new in India. Personal computers 286 existed and MS DOS was the
operating system. Languages like Basic, Pascal, COBOL, FORTRAN were used in programming.
Swastika Computer Systems was established with their support departments namely computer
assembly, faculty training and computer servicing department. In the first financial year, it recorded a
turnover of Rs 11.5 lakhs. Within a few years of its existence, Swastik Computer System opened its
branches in eight major cities of India and had a gross annual turnover of Rs 86 lakhs. The organization
was highly centralized. The head office at Delhi handled all accounts, recruitment, and placement of
students and servicing of computers. The Bhopal branch of Swastik Computer Systems was set up in
May 1987. The branch was headed by a dynamic branch manager Hemant Gupta. He was a BSc in
computers and had previously worked in the data processing department of a manufacturing concern.
To establish the Bhopal branch, Hemant Gupta realized the need for making Swastik Computer
Systems, Bhopal known to the younger generation. With this in mind he introduced some innovative
promotional schemes like offering scholarships to students doing well in the intelligence tests
administered by the branch, giving personal computers to students to deposit term fees at their
convenience. Hemant Gupta also ensured that teaching standards were high and computers at the
branch were well maintained, so a student once enrolled felt that he had made the right decision by
joining Swastik Computer Systems. He also made himself available from 8.00 am to 7.00 p.m at the
branch. Students were free to go to him with their problems, which he took pains to solve. Soon
Swastik Computer Systems was one of the leading computer training centres in Bhopal. As the Bhopal
branch prospered, the head office at Delhi started taking an active interest in the running of this branch.
The Regional Manager who visited Bhopal once a month started making frequent visits. During one of
his visits, his attention was drawn to rumors that branch funds were being misappropriated. When the
Regional Manager informed the Delhi office about the rumor, a team was sent to the Bhopal Branch to
look into the matter. On investigation, the term was convinced that the rumors had some truth in them.
It was found that a larger number of students attended the classes than were enrolled. It was felt that this
fraud was not possible without the consent of Hemant Gupta, and without any further inquiry a decision
was taken to remove him forthwith. Amit Verma who was a senior faculty at Swastik Computer
Systems, Delhi was asked to take over the Bhopal branch as Manager. He was an MCA and had been
associated with the organization since its inception. Amit Verma‟s appointment at Bhopal was
welcomed at the Bhopal branch by both, staff and faculty as he had the reputation of being an easy
going person. After he joined the Bhopal, it was observed that Amit Verma, although academically
sound, was not an effective administrator. His approach towards staff and faculty was lenient. He was
not particular about punctuality and was not available during office hours. This had an adverse effect on
Examination Paper of Marketing Management
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faculty in general and classes in particular. Not only did classes suffer but even administrative work
was affected. Monthly reports to the head office were not sent on time, as a result requisitions for
computer servicing, reading material and funds were unduly delayed. Due to lack of maintenance,
computer breakdowns became common, students did not receive their reading material on time and
payment of building rent, and telephone bills etc were unnecessarily delayed. The symptoms of
deterioration at the Bhopal branch were obvious. The branch which had an annual turnover of Rs 30.7
lakhs fell to Rs. 4 lakhs. As enrollments decreased the head office at Delhi started feeling the pinch. It
started delaying transfer of funds to the Bhopal branch. As a result faculty salaries were unduly delayed.
The faculty started leaving for greener pastures.
Worried by the number of faculty turnover, the head office started a practice of recruiting only
those faculties willing to sign a bond of 3 years. The organization started a practice of taking a deposit
of Rupees 5000 from the joining faculty, which would be refunded after 3 years. In case the faculty left
before this duration, the deposit stood forfeited. This policy further reduced the quality of faculty
joining Swastik Computer Systems, Bhopal.
Questions:
1. What according to you went wrong at the Bhopal branch?
2. What can be done to revive the Bhopal branch?
Caselet 2
Mind tree which was founded in 1999 in India by a group of IT professionals who wanted to chart a
somewhat distinctive path. Today, it has a top line of $269 million and is rated as one of the most
promising mid-sized IT services companies. Creditable as that is, Mind Tree does not want to be just
that. There is an element of serendipity about what it has been doing over the last year. In 2008, it
designated one of its founders Subroto Bagchi „Gardener‟, a gimmicky signal, intended to declare that
he was moving out of the day-to-day running of the company to nurture talent which would run the
company in the future. He has now a report card ready on a year as gardener. During this one year, he
has also spent around 45 days travelling round the world talking to clients and prospective ones which
has yield remarkable insights into what firms are doing in these traumatic times. Lastly, Mind Tree as
a whole has spent the last year going through the exercise of redefining its mission statement and
vision for the next five years. Quite fortuitously these processes have come together with a unifying
thread, presenting a coherent big picture. Mind Tree wants to seed the future while still young, and
executive chairman Ashok Soota has declared that by 2020, it will be led by a non-founder. So a year
ago the gardener Bagchi set out to “touch” 100 top people in the organization, with a goal of doing 50
in a year so as to eventually identify the top 20 by 2015. From among them will emerge not just the
leader but a team of ten who would eventually, as group heads, deliver $200 million of turnover each.
That will give a turnover of $2 billion. To put it in perspective, one one VC-funded company, which
has not closed or been bought over, has been able to get to $2 billion and that is Google. But to get
there it has to periodically redefine its mission (why we exist) and its vision – measurable goals for the
next five years. Its redefined mission is built around “successful customers, happy people, and
innovative solution”. Its new vision targets a turnover of $1 billion by 2014. It wants to be among the
globally 20 most profitable IT services companies and also among the 20 globally most admired ones.
Examination Paper of Marketing Management
IIBM Institute of Business Management 9
Admired in terms of customer satisfaction (pay for the course), people practices (creditable),
knowledge management (exciting) and corporate governance (the Enron-Satyam effect). The really
interesting bit about Mind Tree in the last one year is what Bagchi has been up to. He has been
embedding himself in the 50 lives, working in a personal private continuum, making it a rich learning
process “which has helped connect so many dots.” Of the hundred who will be engaged, may be 50
will leave, of them 25 may better themselves only marginally, and from the remaining 25 ten will
emerge who will carry the company forward.
Questions:
1. What do you analyse as the main reason behind the success of Mind tree?
2. Do you think that redefining the mission statement shows the lacunae on the part of the founder
members of an organization? Why?
END OF SECTION B
Section C: Applied Theory (30 marks)
 This section consists of Applied Theory.
 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 are the various methods of collecting statistical data? Explain in brief their merits and
demerits.
2. What do mean by Research design. What are basic types of research design?
END OF SECTION C
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Business Communication
Section A: Objective Type & Short Questions (30 marks)
 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 4 marks each.
Part one:
Multiple choice:
1. __________is an essential function of Business Organizations:
a. Information
b. Communication
c. Power
d. None of the above
2. Physiological Barriers of listening are:
a. Hearing impairment
b. Physical conditions
c. Prejudices
d. All of the above
3. Which presentation tend to make you speak more quickly than usual:
a. Electronic
b. Oral
c. Both „a‟ and „b‟
d. None of the above
4. What is the main function of Business Communication:
a. Sincerity
b. Positive language
c. Persuasion
d. Ethical standard
5. The responsibilities of the office manager in a firm that produces electronics spares is:
a. Everything in the office runs efficiently
b. Furniture and other equipment in the office is adequate
c. Processing all the incoming official mail and responding to some
d. All of the above
Examination Paper of Business Communication
2
IIBM Institute of Business Management
6. Labov‟s Storytelling Model based on:
a. Communication through speech
b. Language learning
c. Group Discussions
d. None of the above
7. Diagonal Communication is basically the:
a. Communication across boundaries
b. Communication between the CEO and the managers
c. Communication through body language
d. Communication within a department
8. How to make Oral Communication Effective?
a. By Clarity
b. By Brevity
c. By Right words
d. All of the above
9. Direct Eye contact of more than 10 seconds can create:
a. Discomfort & Anxiety
b. Emotional relationship between listeners and speakers
c. Excitement
d. None of the above
10. Encoding means:
a. Transmission
b. Perception
c. Ideation
d. None of the above
Part Two:
1. Define 7C‟s of effective communication.
2. Explain „Space Language‟.
3. Differentiate between good listeners and bad listeners.
4. List the different types of business report.
5. Define „Kinesics‟.
END OF SECTION A
Examination Paper of Business Communication
3
IIBM Institute of Business 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
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 the misunderstanding?
2. Discuss the main features involved in this case.
Caselet 2
I don‟t want to speak to you. Connect me to your boss in the US,” hissed the American on the
phone. The young girl at a Bangalore call centre tried to be as polite as she could. At another call
centre, another day, another young girl had a Londoner unleashing himself on her, “Young lady,
do you know that because of you Indians we are losing jobs?”
The outsourcing backlash is getting ugly. Handling irate callers is the new brief for the young
men and women taking calls at these outsourced job centres. Supervisors tell them to be „cool‟.
Avinash Vashistha, managing partner of NEOIT, a leading US-based consultancy firm says,
“Companies involved in outsourcing both in the US and India are already getting a lot of hate
mail against outsourcing and it is hardly surprising that some people should behave like this on
the telephone.” Vashistha says Indian call centre‟s should train their operators how to handle
such calls. Indeed, the furor raised by the Western media over job losses because of outsourcing
Examination Paper of Business Communication
4
IIBM Institute of Business Management
has made ordinary citizens there sensitive to the fact that their calls are being taken not from
their midst, but in countries such as India and the Philippines.
The angry outbursts the operators face border on the racist and sexist, says the manager of a call
centre in Hyderabad. But operators and senior executives of call centres refuse to go on record
for fear of kicking up a controversy that might result in their companies‟ losing clients overseas.
“It‟s happening often enough and so let‟s face it,” says a senior executive of a Gurgaon call
centre, adding, “This doesn‟t have any impact on business.”
Questions
1. Suppose you are working as an operator in a call centre in India and receiving calls
from Americans and Londoners. How would you handle such calls?
2. Do you agree with the view such abusive happenings on the telephone do not have any
impact on business?
END OF SECTION B
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. What do you by Communication Barriers? How and why do they occur? What can be
done to overcome the Barriers to Communication?
2. Define and explain the term Negotiation and also briefly explain the phases of
Negotiation.
END OF SECTION C
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Strategic Management
Section A: Objective Type (30 marks)
 This section consists of multiple choice questions & Short notes type questions.
 Answer all the questions.
 Part one questions carry 1 mark each & Part two questions carry 5 marks each.
Part One:
Multiple choices:
1. A plan of action designed to achieve a particular goal is:
a. Tactic
b. Strategy
c. Financial benefits
d. None of the above
2. It is important to develop mission statement for:
a. Allocating organizational resources
b. Provide useful criteria
c. Company creed
d. Customer orientation
3. The five forces model was developed by :
a. Airbus
b. Karin Larsson
c. Michael E.Porter
d. Boeing
4. How many elements are involve in developing in an organizational strategy:
a. Six
b. Two
c. Four
d. Nine
5. The three important steps in SWOT analysis are:
a. Identification, Conclusion, Translation
b. Opportunities, Threats, Strengths
c. People, Corporate cultures, Labour
d. Power, Role, Task
Examination Paper: Semester II
IIBM Institute of Business Management
6. GE matrix consists of how many cells?
a. Nine cells
b. Six cells
c. Eight cells
d. Three cells
7. Which of these is the type of Games:
a. Simultaneous Games
b. Sequential Games
c. Repeated Games
d. All of the above
8. SBU stands fora.
Simple Basic Unit
b. Strategic Basic Unit
c. Strategic Business Unit
d. Speed Business Unit
9. The BCG matrix is known as:
a. Growth share matrix
b. Directional policy matrix
c. GE nine-cell matrix
d. Space matrix
10. ______________ specifies sales revenues and selling distribution and marketing costs.
a. Financial budget
b. Sales budget
c. Operating budget
d. Expenses budget
Part Two:
1. What are the dimensions of Strategic management?
2. Critically analyze the concept of BCG Matrix.
3. What is SWOT analysis?
4. What are the characteristics of Short-term Objectives?
END OF SECTION A
Examination Paper: Semester II
IIBM Institute of Business Management
Section B: Case lets (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).
Case let 1
National Competitive Advantage of IKEA Group, a Swedish company founded in 1943 with its
headquarters in Denmark, is a multinational operator of a chain of stores for home furnishing and
furniture. It is the world’s largest retailer, which specializes, in stylish but inexpensive Scandinavian
designed furniture. At the end of 2005 the IKEA Group of Companies had a total of 175 stores in 31
countries. In addition there are 19 IKEA stores owned and run by franchisees, outside the IKEA store
around the world.
In Sweden, nature and a home both play a big part in people’s life. In fact one of the best ways to describe
the Swedish home furnishing style is to describe nature-full of light and fresh air, yet restrained and
unpretentious.
To match up the artist Carl and Karin Larsson combined classical influences with warmer Swedish folk
styles .They created a model of Swedish home furnishing design that today enjoys world-wide renown. In
the 1950s the styles of modernism and functionalism developed at the same time as Sweden established a
society founded on social equality .The IKEA product range –The IKEA product range- modern but not
trendy, functional yet attractive, human-centered and child friendly – carries on these various Swedish
home furnishing traditions.
The IKEA Concept, like lots founder, was born in Samaland. This is a part of Southern Sweden where the
soil is thin and poor. The people are famous for working hard, living on small means and using their
heads to make the best possible use of the limited resources they have. This way of doing things is at the
heart of the IKEA approach to keeping prices low.
IKEA was founded when Sweden was fast becoming an example of the caring society, where rich and
poor alike were well looked after. This is also a theme that fits well with the IKEA vision. In order to give
the many people a better everyday life, IKEA asks the customer to work as a partner. The product range is
child-friendly and covers the need of the whole family, young and old. So together we can a better
everyday life for everyone.
In addition to working about around 1,800 different suppliers across the world, IKEA produces many of
its own products through sawmills and factories in the IKEA industrial group, Swedwood.
Swedwood also has a duty to transfer knowledge to other suppliers, for example by educating them in
issues such as efficiency, quality and environmental work.
Swedwood has 35 industrial units in 11 countries.
Examination Paper: Semester II
IIBM Institute of Business Management
Purchasing: IKEA has 42 Trading Service Offices (TSO’s) in 33 countries. Proximity to their suppliers
is the key to rational, long term cooperation. That’s why TSO co-workers visit suppliers regularly to
monitor production, test new ideas, negotiate prices and carry out quality audits and inspection.
Distribution: The route from supplier to customer must be as direct, cost- effective and environmentally
friendly as possible. Flat packs are important aspects of this work: eliminating wasted space means we
can transport and store goods more efficiently. Since efficient distribution plays a key role in the work of
creating the low price, goods routing and logistics are a focus for constant development.
The business Idea: The IKEA business idea is to offer a wide range of home furnishings with good design
and function at prices so low that as many people as possible will be able to afford them. And still have
many left! The company targets the customer who is looking for value and is willing to do a little bit of
work serving themselves, transporting the items home and assembling the furniture for a better price. The
typical IKEA customer is young low to middle income family.
The Competition Advantage: The competition advantage strategy of IKEA’s product is reflected through
IKEA’s success in the real industry. It can be attributed to its vast experience in the retail market, product
differentiation, and cost leadership.
IKEA Product Differentiation: A wide product range The IKEA product range is wide and versatile in
several ways. First, it’s versatile in function. Because IKEA think customer, shouldn’t have to run from
one small specialty shop to another to furnish their home, IKEA gather plants, living room furnishings,
toys , frying pans, whole kitchens i.e.; everything which in a functional way helps to build a home – in
one place , at IKEA stores.
Second, it’s wide in style. The romantic at heart will find choices just as many as the minimalist at IKEA.
But There is only one thing IKEA don’t have, and that is, the far- out or the over-decorated. They only
have what helps build a home that has room for good living.
Third, by being coordinated, the range is wide in function and style at the same time. No matter which
style you prefer, there’s an armchair that goes with the bookcase that goes with the new extending table
that goes with the armchair. So their range is wide in a variety of ways.
Cost Leadership: A wide range with good form and function is only half the story. Affordability has a part
to play – the largest part. A wide range with good form and function is only half the story. Affordability
has a part to play- the largest part. And the joy of being able to own it without having to forsake
everything else. And the customers help, too, by choosing the furniture, getting it at the warehouse,
transporting it home and assembling it themselves , to keep the price low.
Questions
1. Do you think that IKEA has been successful to utilize Porter’s Five force analysis?
Give reasons.
2. Where do you think can IKEA improve?
Examination Paper: Semester II
IIBM Institute of Business Management
Case let 2
For ITC Ltd., 2007-2008 continued to be year of quiet growth. Just more launches in its relatively new
segment of non-cigarettes fast moving consumer goods, and solid growth. As in the past few years, ITC’s
non-cigarettes businesses continued to grow at a scorching pace, accounting for a bigger share of overall
revenues. “The non-cigarette portfolio grew by 37.6% during 2006-2007 and accounted during that year
for 52.3% of the company’s net turnover.” An ITC spokesman said. In fact, over the first three quarters of
2007-08, ITC’s non-cigarette FMCG businesses have grown by 48% on the same period last year,
“Indicating that its plans for increasing market share and standing are succeeding.”
The branded packaged foods business continued to expand rapidly, with the focus on snacks range Bingo.
The biscuit category continued its growth momentum with the ‘Sun feast’ range of biscuits launching
‘Coconut’ and ‘Nice’ variants and the addition of ‘ Sunfeast BenneVita Flaxseed’ biscuits. Aashirwad atta
and kitchen ingredients retained their top slots at the national level, with the spices category adding an
organic range. In the confectionery category which grew by 38% in the third quarter, ITC cited AC
Nielsen data it claims market leader status in throat lozenges. Instant mixes and pasta powdered the sales
of its ready to eat foods under the kitchens of India and Aashirwad brands.
In Lifestyle apparel, ITC launched Miss Players fashion wear for young women to compliment its range
for men.
Overall, the biscuit category grew by 58% during the last quarter, ready to eat foods under the kitchens of
India and Aashirwad brands by 63% and the lifestyle business by 26%.
For the Industry, the most significant initiative to watch the ITC foray into premium personal care
products with its Fiama Di Wills range of shampoos , conditioners, shower gels, and soaps. In the popular
segment, ITC has launched a range of soaps and shampoos under the brand name Superia.
Ravi Naware, Chief executive of ITC’s food business was quoted recently as saying that the business will
make a positive contribution to ITC’s bottom line in the next two to three years.
In hotels, ITC’s Fortune Park brand was making the news during the year, with a rapid rollout of first
class business hotels.
In the agri-business segment, the e-choupal network is trying out a pilot in retailing fresh fruits and
vegetables. The e-choupals have already specialized in feeding ITC high quality wheat and potato, among
other commodities grown by farmers with help from e-choupal.
Questions:
Q1. Do you think the progress of ITC Ltd. is realistic?
Q2. After analyzing the above case, do you think every company should aim at cost leadership with high
quality product?
END OF SECTION B
Examination Paper: Semester II
IIBM Institute of Business 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 form the part of your answer (Word limit 200 to 250 words).
1. What are the basic principles of Organizational structure? What are the types of
Organizational structures?
2. Though BCG matrix can be very helpful in forcing decisions in managing a
portfolio of products, it can be employed as a sole men of determining strategies
for a portfolio of the product. Do you agree with this statement or not? Why or
why not?
END OF SECTION C
S-1-280111


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Operations Research

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 & Part Two carries 5 marks each 
Part One: Multiple Choices
1. In case of (<=) inequality, to convert the inequality to an equation, we used to add a slack variable to the left hand side of the constraint, this slake variable should be________
a. Negative
b. Positive
c. May be positive or negative
d. Zero
2. In a set of m Χ n equations (m<n) the maximum number of corner points is given by :
3. According to penalty rule for artificial variables, the objective coefficient of the artificial variable represents an appropriate penalty, positive or negative depending on the problem, but the necessary condition required to hold this is, the value should be:
a. ∞
b. 0
c. 1
d. None
4. The cases of the Simplex method in which the value of the variables may increased indefinitely without change in the constraints is________
a. Degeneracy
b. Alternative optima
c. Unbounded solutions
d. Nonexisting solutions
5. An arc in network model is said to be ‘Directed’ if it allows positive flow in one direction and___________
a. Negative flow in negative direction
b. Zero flow in negative direction
c. Negative flow in perpendicular direction
d. None
Examination Paper of Operations Management
IIBM Institute of Business Management 2
6. PERT stands for______________
7. In preemptive method for goal programming , the optimum value of a higher priority goal is never degraded by a lower priority goal.(T/F)
8. The column dropping rule does not guarantee the non degradation of higher priority goals.(T/F)
9. The additive algorithm developed by E Balas for solving ILP problems was based on pure binary variables.(T/F)
10. According to inventory model for commodity possession for smooth business operation, Holding cost represents:
a. Price per unit of an inventory item.
b. The fixed charge incurred when an order is placed regardless of its size.
c. The cost of maintaining inventory in stock.
d. None.
Part Two:
1. What do you understand by ‘Degeneracy’ found in using simplex method?
2. What do know about ‘The Balancing of Transportation Model’? If unbalanced then remedy?
3. Explain ‘Vogel Approximation Model (VAM)’?
4. Explain ‘Dijkstra’s Algorithm’ for routing?
END OF SECTION A Section B: Practical Problems (40 marks)
 This section consists of Practical Problems. 
 Answer all the questions. 
 Each Practical Problem is of 10 marks. 

1. The stock of WalMark Stores, Inc., trades on the New York Stock Exchange under the symbol WMS. Historically, the price of WMS goes up with the increase in the Dow average 60% of the time and goes down with the DOW 25% of the time. There is also a 5% chance that WMS will go up when the Dow goes and 10% that it will go down when the Dow goes up.
a) Determine the probability that WMS will go up regardless of the Dow.
b) Find the probability that probability that WMS goes up given that the Dow is up?
c) What is the probability WMS goes down given that Dow is down?
2. Prove that if the probability P {A/B} = P {A}, then A and B must be independent?
Examination Paper of Operations Management
IIBM Institute of Business Management 3
3. Tasco Oil owns a pipeline booster unit that that operates continuously. The time between breakdowns for each booster is exponential with a mean of 20 hours. The repair time is exponential with mean 3 hours. In a particular station, two repairpersons attend 10 boosters. The hourly wage for each repairperson is $18. Pipeline losses are estimated to be $30 per broken booster per hour. Tasco is studying the possibility of hiring an additional repairperson.
a) Will there be any cost savings in hiring a third repairperson?
b) What is the schedule loss in dollars per breakdown when the number of repairpersons on duty is two? Three?
4. Cars arrive at a one-bay car wash facility the interarrival time is exponential, with a mean of 10 minutes. Arriving cars line up in a single lane can accommodate at most five waiting cars. If the lane is full, newly arriving cars will go elsewhere. It takes between 10 and 15 minutes, uniformly distributed, to wash a car. Simulate the system for 960 minutes, and estimate the time a car spends in the facility?
END OF SECTION B Section C: Long Answers (30 marks)
 This section consists of Long answer type questions. 
 Answer all the questions. 
 Each Question carries 10 marks. 

1. Define Transportation Model and its variant in brief?
2. Explain in detail Game Theory. Support you answer examples?
END OF SECTION C
Examination Paper of Operations Management
IIBM Institute of Business Management 4
IIBM Institute of Business Management
Examination Paper
MM.100
Logistics Management 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 & Part Two carries 5 marks each. 
Part One: Multiple Choices:
1. Analysis method in which evaluation of alternative design configuration using multiple criteria is_________
a. Level of repair analysis
b. Maintenance task analysis
c. Evaluation of design alternatives
d. None of the above
2. Orientation of Logistic are________________
a. Product among organization
b. Total benefits among organization
c. Towards managing of labour
d. Towards managing the physical flow of material & product among organization
3. LMI stands for_______________
a. Logistics Management Information
b. Legal Management Information
c. Logistics Managerial Information
d. None of the above
4. Technical performance measures (TPMs) is applied for_____________
a. Evaluation of prime mission related system & elements for expenses
b. Evaluation of prime mission related system & elements for labour
c. Evaluation of prime mission related system & elements for support
d. None of the above
5. System structure should facilitate:
a. Design on an evolutionary basis
b. Design a system with in a minimum cost
c. Design on an evolutionary basis & with minimum cost
d. Both (a) & (b)
6. Conceptual design is initiated in response of_________
a. Identification of customer need
b. Identification of consumer demand
Examination Paper of Operations Management
IIBM Institute of Business Management 5
c. Identification of Industry demand
d. None of the above
7. Industrial engineering refers to_______________
a. Design & development of a product
b. Design & development of industrial tools
c. Design & development of expenses
d. Design & development of production capability
8. Contractor logistic support (CLS) refers to_______________
a. System maintenance activities
b. System evaluation activities
c. Both (a) & (b)
d. None of the above
9. Discounting refers to______________
a. Application of selected rate of interest
b. Application of selected difference measure
c. Application of selected of interest & measure differences
d. None of the above
10. A plan which is directed towards covering of logistic support for a system is_______
a. System Retirement Plan
b. Post production Support plan
c. Facilities plan
d. Computer Resource plan
Part Two:
1. Personal training requirement are based on what factor?
2. What is meant by Design criteria? Provide some examples?
3. Briefly describe evaluation of logistic’s elements?
4. What are the advantages & disadvantages of functional organization?
END OF SECTION A 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 200 to 250 words). 
Caselet 1
Examination Paper of Operations Management
IIBM Institute of Business Management 6
Company Profile Indian Steels Limited (ISL) is a Rs 6000 crore company established in the year 1986. The company envisaged being a continuously growing top class company to deliver superior quality and cost effective products for infrastructure development. The company performed with a mission to attain 7 million ton liquid steel capacity through technological up-gradation, operational efficiency and expansion; to produce steel with the international standards of cost and quality; to meet the aspirations of the stakeholders. The production started in the year 1988 and initially, it manufactured Angles, Pig Irons, Beams and Wire Rods that were mainly used for constructing roads, dams and bridge. The products were mainly supplied to Public Sector Undertaking such as Railway ,Public Work Department (PWD), Central Public Work Department (CPWD), Rashtriya Setu Nigam, Audyogik Kendrya Vikas Nigam Ltd.and various foundry units. The company had its headquarters at Raipur with three stockyards The company has establish itself well and is said to be considering its expansion plan and proposed merger with another steel making giant in the country. The company was awarded ISO 9001, ISO 14001 and ISO 18001 certifications. The temperature in the plant premises is reportedly about 6 degrees Celsius lesser than that of the township, thanks to the greenery being maintained therein. Logistics Outsourcing Outbound logistics, which basically connects the source of the supply with the sources of demand with an objective of bridging the gap between the market demand and capabilities of the supply sources, was always a problem for companies operating in this industry. Consisting of components like warehousing network, transportation network, inventory control system and supporting information systems, outbound logistics was always playing a key role in making the right product available at the right place, at the right time at the least possible cost. In 1996, owing to the cut throat competition in the emerging dynamic global markets, ISL emphasized on both effectiveness and efficiency. The company strongly believed in focusing on its core competency and outsourcing the rest to its reliable partners. Outsourcing of its outbound logistics was one such move in the direction. Recognizing the growing demand for its products from the big, diversified and geographically dispersed customers, the company started expanding the number of warehousing stockyards. From a humble beginning, the company today has 26 stock yards; most of them is outsourced. Each of the outsourced stockyards was managed by the third party, which the company referred to sa Consignment Agent in the area. The CA was selected on the annual basis through competitive bidding process. The performance of CA was closely monitored by a company representative. The CA was responsible for the entire distribution of the products within the geographical limits of the allotted market segments and was paid by the company according to the loads of transaction dealt by him. Based on the sales turnover, CAs were trifurcated into A, B, and C categories. The CAs with a monthly turnover of Rs 150-200 crore fell under A category, whereas those with Rs 100-150 crore were B and less than Rs 100 crore were C category.
In addition to the company representative, a team of marketing division operated in the town where the site of CA was located. This department was responsible for estimating the-future demand, translating it into orders and sending to the manufacturing plant. Material dispatch was done using either one or a combination of the two modes: rail, road. While rail as the mode of transportation, the company had a choice to book a Normal Rake or a Jumbo Rake. At times, the company was engaging the services of the CONCOR (Container Cooperation of India) where a train of 62 to 70 wagons, each wagon with about 26tonnes capacity was used for transportation. Instead, if the company decided to send the material by road, the company had a choice between Trailer (25 to 30 tones) and Truck (52 to 20 tones). The choice of transportation mode was majorly based on the quantity of dispatch.
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As soon as the material was dispatched from the manufacturing plant, the respective CA used to get a Stock Transfer Chalaan electronically through Virtual Private Network, which was develop by a professional software service provider. In-transit, monitoring was generally done with the help of Indian railways, if the mode was Rail. Otherwise, truck/trailer drivers were contact through mobile phones. Transit generally took 5-6 days, providing time for CA took plan for receiving material. The CA use to utilize this time for arranging material handling devices like: Heavy cranes and required labour. The material thus unloaded was reaching the warehousing stock yard where CA was responsible for arranging the material as per the warehousing norms of ISL. The company broadly classified materials into Long Products and Rounds. Products following into each category were further classified by their size, shape and utility and the company used a distinct colour code for this purpose. Each sub category of material had a specific place for down loading. The company used Bin System for this purpose. While downloading the material in stockyard, the company norms insisted that CA arrange for providing Dunnage Material. This unable the CA to store material without a direct contact with land surface and thus reduced the probability of material deterioration. Material was stored in the stockyard until an authorized representative of the customer used to come and collect it. While dispatching material to the customer, a Loading Slip was generated against the Delivery Order. The company also belived in maintaining long-term relationships with the suppliers as well as the buyers. It always prioritized the needs of its regular and important customers over others and this worked out to be a win-win strategy. Operational problems were majorly because of uncertainties in transportation, fluctuations in supply of electricity and the load bearing capacity of the soil in the stockyard. Some more problems were encountered whenever there was a change in CA and these were overcome by training the employees of the new CA and keeping the old CA responsible for the material in his stockyard for six months after the contract as well. Observations reveal that, at times there were situations wherin CAs had to do those things which they were not legally supposed to do because of the pressures mounted by political leaders with selfish interests. Conclusions Despite these problems, this model of outsourcing logistics was working out very well for the company. The practices, which were started in the year 1996 have sustained major changes in the environment and are being practiced even in 2006. It has enhanced the supply chain competency of the company by enabling it leverage more on its core competency, which leads to increased productivity.
1. Analyze the case in view of the logistics outsourcing practices of the ISL?
2. Discuss the importance of logistics outsourcing with reference to supply chain management?
Caselet 2
Introduction
S.K Das established ABC Pharma in 1961 in New Delhi, marketed antibiotics and became brand leaders in Amphicilin and Cephalexin orals. The company went public in the year 1973. In 1983, ABC established a plant in Mandideep (MP, India) with various dosage form facilities. In 2004, it became India’s largest pharmaceutical company, manufacturing and marketing world-class generics, branded generic pharmaceuticals and active pharmaceutical ingredients. It was ranked amongst the top 10 generic companies worldwide. The company’s product were sold in over 100 countries with manufacturing operations in 7 countries and ground presence in 44. The company had an expanding international
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portfolio of affiliates, joint ventures and representative offices across the globe with joint venture/ subsidiaries in US, UK, Germany, France, Spain, Ireland, Netherlands, India, China, Brazil, South Africa, etc.While ABC aggressively pursued the internationalization of its business, the growth strategy equally foucoused on enhancing market share n India. The company had a strong brand marketing team and distribution network in India. Milestones By the end of December 31, 2004, global sales had reached US $ 1178 million and registered a growth of 21%. Overseas market accounted for 78% of the global sales. US accounted for 36%, while Europe and BRIC (Brazil, Russia, India and China) countries contributed 16% and 26% to global sales, with a combined turnover of US $924 million. The company’s vision was to achieve significant business in proprietary prescription products with a strong presence in developed markets. It also aspired to be amongst the top 5 generic players with a US $5 billion sale by next decade. To translate these objectives into reality and to optimize value creation, the Company had adopted a multi-pronged strategy. The major thrust areas for future were acquisition of brands overseas, emphasis on brand marketing in the US and Europe and entering high potential new marets with value added product offerings. The company had established state-of-the-art multi-disciplinary R&D facilities at Gurgaon, India. ABC was one of the largest investor on R&D in the Indian pharmaceutical industry, with 7% of its sales during 2004. The company’s major research focus was in the areas of Urology, Anti-invectives, Respiratory, Anti-inflammatory and Metabolic disorders segments. ABC’s continued focus on R&D had resulted in several approvals in developed markets and significant progress in New Drug Delivery Response (NDDR). Fourth Party Logistics (4PL) The company believes in building strong and long term relationships with limited number of logistics service providers. They also focoused on outsourcing the activities like warehouse management, packing and custom clearance through Freight Forwarders. They always believed in their core competencies. The logistics service providers took care of storage and inventory management and ensured the availability of the right product at the right place and at right time. Through outsourcing, they achieved focus on the core competencies, cost saving, effective supply chain management, cross-pollination of better available practices and wider and effective geographical coverage. The company practiced Fourth Party Logistics (4PL) services by providing ERP as a backbone system for the third party logistics service providers. The palette packing services were outsourced from a local company including the packing material. The responsibility of complete documentation and custom clearance for import and export of goods had also been outsourced through Custom House Agents (CHA) and Freights Forwarders (FF) under the supervision of GM – Global Supply Chain.
The warehouse management was done with the help of Bar-code Technology, which facilitied in tracing of materials on a single click of a mouse resulting into smooth inward and outward flow of materials. In future, ABC was planning to have Radio Frequency Identification (RFID) Technology to manage the warehouse activities in a more effective and efficient manner. The company had divided its global operations into four regions viz., R1-Middle East with headquarter at India; R2-CIS, Africa and Europe with headquarter at London; R3-Far East ad Latin America with headquarter at Singapore; R4-US with headquarters at New York on the basis of convenience, market potential and market share. Collaborative Relationship
The company established its global supply chain hub at Mandideep (near Bhopal, India). They managed their operations with one GM-Supply Chain, one Senior Manager Commercial and four Shipment Officers. Each Shipment Officer had four support employees outsourced through freight forwarders. These people were responsible for the day-to-day activities under the administrative control of ABC. GM-
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Supply Chain was responsible for managing the relations with Supply Chain Partners, Freight forwarders and Custom House Agents (CHA). The company had been a pioneer in launching the genetic versions of products on the same day at which the product to get off patent, which helped them in getting an edge over competitors. They managed to maintain the dignity, discipline and business ethics without violating the laws of patent. This was possible because of the strong and long term relationship with logistic service providers. There was a strong level of belonging, faith and trust amongst the supply chain partners. To maintain the good relations, the company practiced making timely payments to the service providers. They also opened the account in the same bank in which the service providers had their account so that prompt money transfer could take place. As a result of this, service providers were so concerned about the shipments of the company that they dedicated 25 refrigerated cargos each equipped with location tracking facility to track the status of the shipments. The relationship and commitments of service providers was endorsed on January 10, 2003 when Ramipril was going off patents in Europe. ABC having strong presence n Germany wanted to encash the oppournity by making its Rampril available in Germany right on January 11, 2003, so as to take lead in available generic market. However, ABC did not know the number and size of competition they would be facing. The underlying fear of getting the shipment late and therby losing the advantage of being first was very clear on the faces of ABCs top managers. The task was urgent and important; any delay in availability was to cost heavily. The D-day was January 10, 2003 and the shipment was to be airlifted from Mumbai so as to reach Germany after midnight of January 10, 2003 but before dawn of January 11, 2003. Two Boeing were chartered to lift the goods from Mumbai Airport, but the task was not simple, as the goods were to be surface transported from Mandideep to Mumbai in a carvan of 70 cargos. To worsen the things, the transporters had announced strike during that period. The urgency was briefed to freight forwarder, who was caught between relationship with ABC and membership of the Transporters’ Association. He had the option of pleasing any one of them.
The long association and the relationship with ABC got priority and the freight forwarder assured ABC’s Senior Commercial Manager to carry out the assigned responsibility. Going against the directives of association, the freight forwarder contacted the police authorities and obtained a security cover throughout Maharastra. The freight owner consider himself as one of the responsible members of ABC and was personally receiving the cargo and getting it loaded at Mumbai airport. The scheduled departure had a lead-time of two days. However, he freight forwarder insisted and stayed at Mumbai at his own cost to see the goods leaving India successfully. It was a mission for ABC and the freight forwarder in which collaborative relationship surpassed all limitations and the goods landed in Germany-just-in-time.
1. What modification would you suggest in enhancing the existing logistics system?
2. Critically analyze the efforts of ABC in launching generic versions of products going off patents?
END OF SECTION B Section C: Applied Theory (30 marks)
 This section consists of Long Questions. 

 Answer all the questions. 
 Each question carries 15 marks. 
 Detailed information should form the part of your answer (Word limit 150 to 200 words).

1. Define Logistic support in the context of the production /construction phase. What are
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the elements of Logistic support?
2. Define reliability & maintainability. What are their major characteristics?
END OF SECTION C S-2-300813


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Customer Relationship Management
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 & Part Two carries 4 marks each.
Part One:
Multiple Choices:
1. High congruence means:
a. High probability of success
b. Low probability of success
c. Zero probability of success
d. None
2. Novo Jim‟s excellent resource book for Recency, Frequency and Monetary is:
a. Drilling high
b. Digging the top
c. Cutting edges
d. Drilling down
3. In „FURPS‟ R stands for___________
a. Responsibility
b. Resource
c. Retention
d. Reliability
4. NAICS stands for_____________
a. National American Industry Coding System
b. North American Industry Cooling System
c. National American Industry Cooling System
d. North American Industry Coding System
5. The book „Reengineering the corporation‟ is written by:
a. Michael Hammer and James Champy
b. Michael Champy and James Hammer
c. Michael Douglus and James Ferrari
d. Michael Ferrari and James Douglus
6. The book „Building the Data warehouse‟ is written by:
a. Michael Doglus
b. James Champy
c. Bill Inmon
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d. James Ferrari
7. Which of the following is considered as the bible of database marketing?
a. „Drilling High‟
b. „Building the Data warehouse‟
c. „The complete database marketer‟
d. „Drilling down‟
8. CASE stands for____________
a. Customer Aided Software Engineering
b. Computer Aided Software Engineering
c. Customer Aided System Engineering
d. Computer Aided System Engineering
9. In „BBB‟ B stands for____________
a. Bail
b. Buffer
c. Bureau
d. Block
10. If high quality is one of the attribute then:
a. It will be suicidal to ship products with high DOA
b. It will be beneficial to ship products with high DOA
c. It will be suicidal to ship products with low DOA
d. It will be beneficial to ship products with low DOA
Part Two:
1. Why e- CRM is important in present life?
2. Describe the 3 phases of „Waterfall Model‟.
3. Explain the type of CRM in short?
4. What is „Life time value‟ related with customer?
5. What are „Warehouse data(s)‟?
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 200 to 250 words).
END OF SECTION A
SESSECTION A
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Caselet 1
Project Energized:
Indian Synthetics Limited was established in the year 1987 by Seth Gopichand, who was an NRI based
in Singapore. The company‟s main products were blended synthetics, polyester and cotton yarn; which
were suitable for readymade garments. The company had achieved an outstanding success with an
annual turnover of Rs. 1,500 crores and was awarded the „Exporter of the Year Award‟ since 1988, for
four consecutive years by the Government of India. Encouraged by the profitability of the Jabalpur
plant, the company set up another manufacturing plant at Nasik. The company was a typically family
run business wherein no outsiders were inducted at the top management positions. Even the Chartered
Accountant was from the family. The plant at Jabalpur had 1,300 workers with an average age of 28
years and an educational qualification of either high school or secondary school. 60 percent of the
workers were from Bihar and the rest were from Orissa. They were highly paid with reference to the
industry average and were provided with residential accommodation on the factory premises. All the
employees were men with no woman employee on the plant‟s payroll. Among the workers and staff it
was common that the management had not initiated the appointment. Since the past 12 years of its
existence, the company was functioning in a traditional pattern in spite of the modernization of the
plant and had no HR practices whatsoever. With the growing competition in the market, the
profitability of the plant had declined which greatly concerned the top management. After reviewing
the situation, it was found that the human element was the biggest hurdle in achieving the set targets.
There was a need to bring in attitudinal change, as both, the absenteeism and the union interference
were high. This union was formed after the workers had felt that the management was exploiting them.
Most of the workers had been there since the inception of the plant and the turnover was almost
negligible. There was a strong union present in the plant, which was affiliated to INTUC. The plant
managers entered into a long term settlement with the union to set the daily wages and the terms and
conditions of work. The long term settlement was renewed every 3 years. The workers were working
in 30-day night shifts in a month. Being a textile unit, it was a process industry wherein hurdle at one
point of the process would stop the whole production. Moreover, if there were delay in the takeover of
the shift, the output of the entire day would be affected. In the matters of indiscipline, the workers
were charge sheeted and dismissed arbitrarily. In chronic cases, the worker had to wear a badge with a
slogan “I will not repeat the mistake again” for the entire day on his uniform.
The company started thinking of corporate governance and hired the services of Narayan Murthy,
AGM (P & A and ER) for the Jabalpur plant in May 2001. Since its establishment, the plant had seen
eight Personnel Managers come and go. Narayan Murthy who was in his late thirties had been working
with a multi-national company and had a wide exposure to the human resource practices. He was given
complete autonomy by the corporate office to transform the existing organizational culture. After
Narayan Murthy took over the charge, he formed the “Workers Committee” with one representative
who would frame the report, discuss with him and help out in counseling the workers. He changed the
traditional designations like the “Khata Adhikari” to the “Shop Floor Manager”. He also made training
and development programs, an integral part of the employee development. His first attempt in this
direction was an ice-breaking workshop called the “Project Energized” which was conducted by
women trainers. To bring women closer to the system, he had taken an initiative to form a ladies‟ club
for the wives of all the employees, which became an uphill task for him as he was facing a lot of
problems in getting the people together. Narayan Murthy also introduced the concept of multi-skilling
where the worker was persuaded to work in different stages of the process. Although, the worker did
not get a monetary incentive for the same, he developed enrichment of the skills. Many a times the
union resisted to this and then the supervisor had to tackle the situation diplomatically. Another
measure, which Murthy adopted, was to develop an incentive plan for the workers. Any worker who
recorded 26 attendances in a month was given an extra Rs. 10 per day for the month, and so on till 23
attendances per month. Any worker who recorded 26 attendances consecutively for three months was
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given an additional benefit of Rs 500. 100 employees responded positively to this scheme. He also
started educating the union and was planning to provide an office and separate notice board for the
union office bearers. He was also planning to reduce the 30 days night shift to 15 days night shift per
month. As per this agenda, he had also planned to employ a lady as the Deputy Manager of Training,
preferably more than 35 years of age who was expected to have completed the social obligations in
terms of her marriage and child rearing. He felt that a woman would be more successful in overcoming
the suspicion among the workers towards the management as he had observed that the workers were
receptive to women summer trainees who had visited the plant for about six weeks last summer. Even
at the Nasik plant, when a lady doctor was appointed as a physician, the workers went in for a strike
objecting the appointment. The workers had afterwards shown a positive response though they had
initially shown a stiff resistance to her appointment. In spite of taking these measures, Murthy felt that
there was too much interference from the union and the employees were not enthusiastic about the
changes. And he wondered what else he should do to transform the culture of the organization.
Questions:
1. In what way would multi-skilling help in solving the problems of the plant?
2. Do you think that the company‟s policy of entering into term settlement is appropriate? Give
reasons.
Caselet 2
Mitsubishi Motor Sales: Implementing Customer Relationship Management Systems
Until the late 1990s, Mitsubishi Motor Sales of America Inc. was only about cars and its approach to
retail customer service reflected that. There were more than 18 toll-free customer service numbers that
callers had to navigate to find information on topics ranging from financing to sales to repairs, “We
were fragmented in our approach, and we clearly lacked a customer focus,” says Greg O‟Neill,
executive vice president and general manager.Mitsubishi decided to change that. As part of a
company-wide shift to an increased focus on customers, executives challenged the call center to
provide “one voice and one set of ears for the customer,” says CIO Tony Romero. That was the
beginning of a continuing drive toward improved customer service through a customer relationship
management (CRM) initiative that would eventually engage multiple departments and 18 vendors.
Today, Mitsubishi has one call center and an outsourced service provider that handles the most
basic calls. The cost per call has decreased by about two-thirds, and that savings alone paid for the
system in 18 months, according to Rich Donnelson, director of customer relations. The system saves
agents time and uncertainty and enabled the call center to handle 38 percent more volume, with an
even staffing level. Meanwhile, the company‟s customer satisfaction rate rose by 8 percent, according
to a survey by J.D. Power and Associates. Mitsubishi call center project team included members from
its sales, marketing, finance, and IT departments, all of which contributed resources as needed. Early
on, the team members established some rules of the road. First, they would selectively choose best-ofbreed
CRM software components, not the integrated CRM suits that seemed intent on force-fitting
Mitsubishi‟s needs into fixed product offerings. But that required a constant struggle to keep 18
vendors heading in the same direction. The team members also decided to implement changes slowly,
adding a technology only when all employees were using the last one implemented. This approach
allowed call center agents to get comfortable with the new technology over time. To accommodate the
deliberate, modular approach, all products had to pass the “three S” test: Is it simple? Does it satisfy?
Is it scalable? “If we couldn‟t answer yes to all three, we didn‟t do it,” says Greg Stahl, Mitsubishi‟s
director of advertising. The journey began in earnest in June 1999, when Mitsubishi chose to outsource
its most basic level of customer calls to Baltimore-based Sitel Corp. within two months, Mitsubishi‟s
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18 toll-free customer numbers and the multiple call centers behind them were consolidated, and call
center software from Siebel Systems was implemented. Also, as part of the companywide customer
focus, a new customer-centric data-base was consolidated in-house the next year. The database became
the engine powering the call center, but unfortunately, dirty data were a major stumbling block. The
project stalled for months as the data were cleansed and updated.
In early 2001, a digital phone switch from Avaya Inc. was installed that allowed flexible skillsbased
call routing. Callers to the single toll-free number routed on menu choices. About half the callers
got the information they needed from an interactive voice response unit, which can answer fairly
sophisticated queries without live contact. Simple calls went to Sitel, and the rest were routed to call
center agents with appropriate skills. In March 2001, graphical user interface upgrades put 11 screens‟
worth of customer information on one screen of call center agents. And Smart Scripts workflow
software from Siebel provided agents with decision-tree scripts and automated customer
correspondence. In May 2001, Mitsubishi managers began listening to outsourced service calls, and
they could see agents‟ screens with Avaya IP Agent software. The next month, the company started
using workforce management software from Blue Pumpkin Software to hourly forecast call center
coverage. Then Nice log software from Nice Systems was installed to record agents‟ voice and screen
activity for quality assurance and training.
Aside from happier customers, the benefits to call center employees include career growth and
higher pay. Previously, agents in separate call centers handled specific areas: accounts, vehicles, titles,
or retailer queries. Now the silos are gone and agents can learn new skills in multiple areas, greatly
increasing call center flexibility. The workforce management software schedules training time during
lags, and agents who learn multiple skills earn more money. Call center turnover, which has
traditionally been more than 20 percent, was about 7 percent last year. O‟Neill says the executive team
members regularly listen in on service calls to get a feel for customer concerns, and they act on what
they hear. “ that bubble up of information has driven more early marketing decisions and made us
more effective earlier on than I could have ever thought,” O‟Neill says. “That‟s been a huge dividend.”
Questions:
1. What are the key application components of Mitsubishi‟s CRM system? What is the business
purpose of each of them?
2. Do you approve of Mitsubishi‟s approach to acquiring and installing its CRM system? Why or
why not?
Section C: Applied Theory (30 marks)
 This section consists of Long Questions.
 Answer all the questions.
 Each question carries 15 marks.
 Detailed information should form the part of your answer (Word limit 150 to 200 words).
END OF SECTION B
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1. What is the CRM? Define all the Customer Retention Strategies.
2. If all the numbers are large, the project is way too big. Can you identify a logical chunk of the
problem that would make a setup toward improving the situation? What kind of “offer” would
you want to make to your customers as a result of completing the small chunk?
END OF SECTION C
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IIBM Institute of Business Management
Examination Paper MM.100
Services Marketing
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 & Part Two carries 5 marks each.
Part One:
Multiple Choices:
1. The extent to which customers recognize and willing to accept this variation is called:
a. Zone of tolerance
b. Zone of fitness
c. Zone of acceptance
d. None
2. SERVQUAL is used to measure service quality. (T/F)
3. SWICS stands for_________
4. Real /perceived and monetary/non monetary costs are termed as switching costs.(T/F)
5. TARP stands for _________
6. If the direct cost be „a‟, overhead cost be „b‟ and profit margin be „c‟ then the cost based pricing
can be calculated by:
a. a+b+c
b. a-b+c
c. a/b*c
d. none
7. If the percentage change in quality purchased be „a‟ and the percentage change in price be ‟b‟
then elasticity is given by:
a. a*b
b. a/b
c. a+b
d. a-b
8. If the actual revenue be „a‟ and the potential revenue be „b‟ then the yield can be given by:
a. a-b
b. a+b
c. a/b
d. b/a
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9. Reactors make adjustments unless forced to do so by environmental pressures.(T/F)
10. Least profitable customers are categorized in:
a. Platinum
b. Gold
c. Iron
d. Lead
Part Two:
1. What do you understand by “Customer Gap”?
2. Write the difference between perceptions of service quality and customer satisfaction.
3. Write short “SERVQUAL” survey.
4. What are different types of “Complainer”.
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 200 to 250 words).
Caselet 1
Giordano is a retailer of casual clothes in East Asia, South-East Asia, and the Middle East. In 1999, it
operated outlets in China, Dubai, Hong Kong, Macao, Philippines, Saudi Arabia, Singapore, South Korea,
and Taiwan. Giordano‟s sales grew from HK$712 million in 1989 to HK$3,092 million in 1999. This
case study describes the success factors that allowed Giordano to grow rapidly in some Asian countries. It
looks at three imminent issues that Giordano faced in maintaining its success in existing markets and in
its plan to enter new markets in Asia and beyond. The first concerns Giordano‟s positioning. In what
ways, if at all, should Giordano change its current positioning? The second concerns the critical factors
that have contributed to Giordano‟s success. Would these factors remain critical over the coming years?
Finally, as Giordano‟s seeks to enter new markets, the third issues, whether its competitive strengths can
be transferred to other markets, needs to be examined.
Being Entrepreneurial and Accepting Mistakes as Learning Opportunities
The willingness to try new ways of doing things and learning from past errors was an integral part of
Lai‟s management philosophy. The occasional failure represented a current limitation and indirectly
pointed management to the right decision in the future. To demonstrate his commitment to this
philosophy. Lai took the lead by being a role model for his employees “. . . Like in a meeting, I say, look,
I have made this mistake, I‟m sorry for that. I hope everybody learns from this. If I can make mistakes,
END OF SECTION A
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who the hell do you think you are that you can‟t make mistakes?” He also believed strongly in
empowerment – if everyone is allowed to contribute and participate, mistakes can be minimized.
Service
Giordano‟s commitment to excellent service was reflected in the list of service-related awards it had
received. It was ranked number one by the Far Eastern Economic Review, for being innovative in
responding to customers‟ needs, for three consecutive years – 1994, 1995, and 1996. And when it came to
winning service awards, Giordano‟s name kept cropping up. In Singapore, it won numerous service
awards over the years. It was given the Excellent Service Award for three consecutive years: 1996, 1997,
and 1998. It also received three tourism awards: “Store of the Year” in 1991, “Retailer of the Month” in
1993, and “Best Shopping Experience – Retailer Outlet” in 1996. These were just some of the awards
won by Giordano.
How did Giordano achieve such recognition for its commitment to customer service? It began with the
Customer Service Campaign in 1989. In that campaign, yellow badges bearing the words “Giordano
Means Service” were worn by every Giordano employee. This philosophy had three tents: We welcome
unlimited try-ons; we exchange – no questions asked; and we serve with a smile. The yellow badges
reminded employees that they were there to deliver excellent customer service.
Since its inception, several creative, customer-focused campaigns and promotions had been launched to
extend its service orientation. For instance, in Singapore, Giordano asked its customers what they thought
would be the fairest price to charge for a pair of jeans and charged each customer the price that they were
willing to pay. This one-month campaign was immensely successful, with some 3,000 pairs of jeans sold
every day during the promotion. In another service-related campaign, customers were given a free T-shirt
for criticizing Giordano‟s service. Over 10,000 T-shirts were given away. Far from only being another
brand-building campaign, Giordano responded seriously to the feedback collected. For example, the
Giordano logo was removed from some of its merchandise, as some customers liked the quality but not
the “value –for – money” image of the Giordano brand.
Against advice that it would be abused, Lai also introduced a no-questions-asked and no-timelimit
exchange policy, Which made it one of the few retailers in Asia outside Japan with such a generous
exchange policy. Giordano claimed that returns were less than 0.1 percent of sales.
To ensure that every store and individual employee provided excellent customer service, performance
evaluations were conducted frequently at the store level, as well as for individual employees. The service
standard of each store was evaluated twice every month, while individual employees were evaluated once
every two months. Internal competitions were designed to motivate employees and store teams to do their
best in serving customers. Every month, Giordano awarded the “Services Star” to individual employees,
based on nominations provided be shoppers. In addition, every Giordano star was evaluated every month
by mystery shoppers. Based on the combined results of these evaluations, the “Best Services Shop” award
was given to the top store.
Aggressive advertising and Promotion
Fung said, “Giordano spends a large proportion of its turnover on advertising and promotions. No retailer
of our size spends as much as us.” For the past five years, Giordano in Singapore had been spending
about S$1.5 million to S$2 million annually on its advertising and promotional activities. It won the Top
Advertiser Award from 1991 to 1994. Up to June 30, 2000, total advertising and promotional expenditure
for the group amounted to HK$41.5 million, or 3 percent of the group‟s retail turnover. In addition to its
big budget, Giordano‟s advertising and promotional campaigns were creative and appealing. One such
campaign was the “Round the Clock Madness Shopping” with the Singapore radio station FM93.3 on 1
May 1994. Different clothing items were offered at a 20 percent discount from 12 A.M. to 1 A.M.,
whereas polo shirts and T-shirts and T-shirts were given a 30 percent discount from 1 A.M. to 2 A.M. and
then shorts at a 40 percent discount from 2 A.M. to 3 A.M. To keep listeners awake and excited, the
product categories that were on sale at each time slot were released only at the specified hour, so that
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nobody knew the next items that would be on this special sale. Listeners to the radio station were cajoled
into coming to Giordano stores throughout the night (Ang 1996). In 1996, Giordano won the Singapore
Ear Award. Its English radio commercial was voted by listeners to be one of the best, with the most
creative English jingle.
Another success was its “Simply Khakis” promotion, launched in April 1999, which emphasized
basic, street-culture style that “mixed and matched” and thus fitted all occasions. In Singapore, within
days of its launch, the new line sold out and had to be relaunched two weeks later. By October 1999, over
a million pairs of khaki trousers and shorts had been sold. This success could be attributed partly to its
clearly defined communications objectives. As Garrett Bennett, Giordano‟s Executive Director in charge
of merchandising and operations, said, “We want to be the key provider of the basics: khakis, jeans, and
the white shirt.” Elsewhere in the region, sales were booming for Giordano, despite only moderate
recovery experienced in the retail industry. Its strength in executing innovative and effective promotional
strategies helped the retailer to reduce the impact of the Asian crisis on its sales and take advantage of the
slight recovery seen in early 1999. Aggressive advertising and promotions also played a significant role in
the successful remarketing of its core brand relaunch or introduction of sister brands, Giordano Ladies‟,
Giordano Junior, and Bluestar Exchange.
Giordano’s Growth Strategy
As early as the 1980s, Giordano realized that it was difficult to achieve substantial growth and economies
of scale if it operated only in Hong Kong. The key was in regional expansion. By 1999, Giordano had
opened 740 stores in 23 markets, out of which Giordano directly managed 317 stores. Until 2000, four
markets dominated its retail and distribution operations – Hong Kong, Taiwan, China, and Singapore. By
2000, Giordano had 895 Giordano stores in 25 markets.
Giordano cast its sights on markets beyond Asia, driven partially by its desire for growth and
partially to reduce its dependence on Asia in the wake of the 1998 economic meltdown. In Giordano‟s
first full year of operation in Australia, sales turnover reached HK$29 million (US$3.72 million) in
December 2000. The number of retail outlets increased from 4 in 1999 to 14 in 2000. With the opening up
of its first retail outlet in Sydney in September 2000, Giordano outlets could now be found in both
Melbourne and Sydney. As part of Giordano‟s globalization process, it planned to open up its first shops
in Germany and Japan during the first half of 2001. Currently, Giordano planned to focus its globalization
efforts on new markets like Germany, Japan, Australia, Indonesia, and Kuwait.
When the crisis made Giordano rethink its regional strategy, it was still determine to enter and
further penetrate new Asian markets. This determination led to the successful expansion of Giordano in
Mainland China, which saw the retail outlets grow from 253 stores in 1999 to 357 stores in 2000. Due to
the expanded retail network in Mainland China and improvements made to the product line, sales
turnover increased by 30.9 percent to HK$712 million (US$91.3 million) in 2000. Faced with the
imminent accession of Mainland China to the World Trade Organization, Giordano‟s management
foresees both challenges and opportunities ahead. In Indonesia, Giordano opened up 7 more stores in
2000, brining the total number of retail stores to 10. These stores covered areas in Jakarta, Surabaya, and
Bali. However, with the political and social instability in Indonesia, coupled with the downward pressure
on the Rupiah, Giordano was cautiously optimistic about further expansion and planned to proceed with
caution. In Malaysia, Giordano planned to refurnish its Malaysian outlets and intensify its local
promotional campaigns to consolidate its leadership position in the Malaysia market.
Giordano‟s success in these markets would depend on its understanding of them, and consumer tastes
and preferences for fabrics, colors, and advertising. In the past, Giordano relied on a consistent strategy
across different countries, and elements of this successful strategy included its positioning and service
strategies, information systems and logistics, and human resource policies. However, tactical
implementation (e.g., promotional campaigns) was left mostly to local managers in their respective
countries. A country‟s performance (e.g., sales, contribution, service levels, and customer feedback) was
monitored by regional headquarters (e.g., Singapore for South-East Asia) and the head office in Hong
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Kong. Weekly performance reports were made accessible to all managers. In recent years, it appeared that
as the organization expanded beyond Asia, different strategies had to be developed for different regions or
countries.
Questions:
1. How do you think Giordano had/would have to adapt its marketing and operations strategies and
tactics when entering and penetrating your country?
2. What general lessons can be learned from Giordano for other major clothing retailers in your
country?
Caselet 2
In 2003, Jyske Bank Group‟s primary operations consisted of Jyske Bank, which was the third largest
bank in Denmark after Den Danske Bank and Nordea‟s Danish operations. Jyske Bank was created in
1967 through the merger of four Danish banks having their operations in Jutland, Jyske being Danish for
“Jutlandish.” Jutland was the large portion of Denmark attached to the European mainland to the north of
Germany. Until the late 1990s, Jyske Bank was characterized as a typical Danish bank: prudent,
conservative, well-managed, generally unremarkable, and largely undifferentiated.
Beginning in the mid-1990s, Jyske Bank embarked on a change process that led to its no longer being
characterized as either unremarkable or undifferentiated. By 2003 its unique “flavor” of service made it a
leader in customer satisfaction among Danish banks. At the heart of these changes was the bank‟s
determination to be, in the words of one executive, “the most customer-oriented bank in Denmark.” The
bank achieved its goal by focusing on what it called Jyske Forskelle, or Jyske Differences.
JYSKE DIFFERENCES
Jyske Differences stemmed from Jyske Bank‟s core values. These stood as central tents, guiding virtually
all aspects of the organization‟s life. As one manager pointed out, the values were consistent with the
bank‟s Jyske heritage: “Really, when we started talking about our core values, and their Jyskeness, we
just became overt about values we had long held.” Jyske Bank‟s core values, published for employees,
customers, and shareholders, were that the bank shouls (1) have common sense; (2) be open and honest;
(3) be different and unpretentious; (4) have genuine interest and equal respect for people; and (5) be
efficient and persevering.
The core values led management to reevaluate how the bank did business with its customers.
Managers determined that if the bank were to be true to its values, it would have to deliver service
differently from both how it had in the past, and how other banks delivered service. Jyske Differences
were thus operationalized as specific practices that distinguished Jyske Bank.
Competitive Positioning
Managers looked to Jyske values and differences for the bank‟s competitive positioning. This process was
aided by a Dutch consultant, whose market research indicated that Jyske bank‟s core target market of
Danish families and small-to-medium sized Danish companies (earnings were 40 % commercial, 60%
retail) generally liked the idea of a bank that was jyske. Additional research suggested that what managers
described as the “hard factors” of price, product, and location had become sine qua non in the eyes of
customers. In contrast, “soft factors” relating to an individual customer‟s relationship with her service
providers served as the basic for differentiation, specially, “being nice,” “marketing time for the
customer,” and “caring about the customer and his family.”
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Managers felt that the “genuine interest” component of the bank‟s values dictated a shift from
traditional product focused selling to a customer-solution approach. They characterized the new approach
by contrasting the statement, “Let me tell you about our demand-deposit account,” with the question,
“What do you need?”
Although he bank‟s core financial products remained essentially similar to those of other Danish
banks,3 the way they were delivered changed. This required significant changes in the branches, both
tangible and intangible, and how they were supported. Tools were developed to support solution-based
service delivery. For example, new IT systems helped employees take customers through processes to
determine their needs and final appropriate solutions. In one, the customer and her banker filled out an
on-line investor profile to determine what style of investment products were most appropriate for her
based on risk aversion, time frame, and return goals, among other factors. A manager commented that,
“The tools themselves aren‟t proprietary. We‟ve seen other financial services with similar programs – it‟s
how our people use them that makes the difference.” Another stated, “Our tools are designed either to
enhance our ability to deliver solutions, or to reduce administrative tasks and increase the amount of time
our people can spend with customers – delivering solutions.”
Finally, being overtly Jyske meant that the bank would no longer be a good place for any customer
meeting its demographic criteria for two reasons. First, delivering this type of service was expensive. As a
result, the bank charged a slight premium, and targeted only those customers who were less likely to
represent a credit risk. Second, the bank would have a personality. According to one manager, “The
danger in having a personality is, someone, inevitably, won‟t like you.” Senior management considered
this the price of being candid, and welcomed the effect it had on some customers. For example, Jyske
Bank‟s cash/debit card had a picture of a black grouse on it, black grouses being found in Jutland‟s rural
countryside. When a few customers complained that the bird didn‟t seem very business-like, or wasn‟t hip
(one was “embarrassed to pull it out at the disco”) managers were happy to invite them to open accounts
at competitor institution. A manager noted:
Actually, if no one reacts to our materials, they‟re not strong enough. Some people should
dislike us. After all, we‟re only about 6% of the market. I don‟t want everyone to like us –
we‟re not for everyone and don‟t want to be.
Tangible Differences
Account Teams
Delivering on the banks competitive positioning required a number of tangible changes in its service
delivery system. These began with assigning each customer a branch employee to serve as primary point
of contact. Over time, managers discovered that this created problems, because customers often arrived at
a branch when their service provider was busy with other customers or otherwise unavailable.
Nevertheless, managers were committed to providing individualized service. According to one, “How can
we be honest in saying we care about customers as individuals if we don‟t get to know them as
individuals? And without knowing them, we can‟t identify and solve their problems.” The solution was
found in account teams: each customer was assigned to a small team of branch bankers. These employees
worked together to know and serve their customers, sitting in close physical proximity within the branch.
Branch Design
Jyske Bank planned to spend approximately DKK 750 million to physically redesign its branches (most
of this had been spent by 2003). Danish observers described the new branches as looking “like an
advertising agency” or “a smart hotel.” These effects were accomplished through the use of modern, upscale
materials such as light wood, warm colors, and original art. Branch redesign also included changes
in the way customers interacted with their bankers, made possible by architectural and design changes.
For example, customers waiting for their banker could help themselves to fresh coffee in a small part of
the branch resembling a café. A customer commented on the café, “It means more than you initially think
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– it makes you feel welcome, it says they‟re really interested in me.” Fruit juice was available for
children, who could amuse themselves with toys in the play center. Bankers‟ desks were now round
tables, signifying equally. A team of three or four bankers sat at a single large round table, with customers
making themselves comfortable between the bankers‟ work stations. Customers could see bankers‟
computer screens, reinforcing openness. Customers‟ ability to view the screens also facilitated the use of
IT programs designed to structure interactions between account team members and customers. As equals,
bankers and customers sat in the same type of chairs, and bankers no longer sat on a raised dais, the
origins of which went back to feudal times when the heads of certain people were supposed to be higher
than those of others. If a conversation required more discretion, specially designed meeting rooms giving
the feeling of “home” were available.
Intangible Differences
Delivering the bank‟s new competitive positioning also required numerous intangible changes and other
changes not immediately visible to the customer. Managers stated that the most important of these
involved training and empowering those employees closest to the customer to serve the customer.
Training
Before a branch was remodeled, all staff took part in special training sessions. These included
teambuilding and customer service, drawing on best practices from the “traditional” retail sector.
Management Style
A senior manager commented:
You can train and educate all day long, but unless your managers and employees are committed to Jyske
Differences, they just won‟t happen. Getting them required a great deal of my effort.
When we started this process there were times when it was hard – really hard. The branch managers
didn‟t think strategically – they sat in their offices and focused on their day-to-day work. I wanted the
branch manager to get up on a hill and look around, to get a bigger picture. To get them to change I asked
them questions: What‟s the market? Where – and who – are your competitors? What are your strengths
and weaknesses, how do they tie to Jyske Differences? Now, contrast what you need with what you have.
Are the teams in your branch living up to the demands? What do you need to do to ensure that they will?
There will be resistance; understand where it is coming from. One way to deal with it is to make
agreements with individuals on how they will develop new skills. If there is a complete mismatch you
may need new team members, but for the most part, you can coach your people through this kind of
change – you can lead them.
According to another executive:
The branch managers have to be able to motivate employees to work a little harder, and differently. The
most successful give their employees a lot of latitude for decision making. They do a lot of training, 80%
of which is on the job. When it isn‟t, it‟s mostly role playing. There aren‟t any high-powered incentives to
offer, but there are really good tools coming out of IT. it‟s more how the branch managers do it than what
employees to share the values and act on them.
A third noted:
When I have a difficult situation I look for what I call a “culture carrier.” I try put that person into the
middle of it, because they live our values. What I usually see is that the other employees who are on the
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fence about the values start to come over – they see the example and they like what they see. This leaves
the few people who really don‟t want to be Jyske on the outside, and they tend not to last long. Most
people are willing to change, but they‟ve got to be supported in the process.
CONCLUSION
The bank‟s leadership believed that Jyske values and differences, and the bank‟s value chain, provided
ways to achieve the balance they wanted among their three stakeholders: employees, customers, and
shareholders. Several leaders commented that with the large capital investments behind them as of 2003,
net income would increase considerably in the coming years, assuming the recession of 2001 and 2002
was over. Shareholders had received a 17.8% annual return on their investment for the ten years prior to
year-end 2002. Anders Dam‟s 2002-2003 goal for shareholders was to increase the bank‟s stock multiple
approximately 40% to the level of Danske Bank‟s, the largest and most richly-priced bank in Denmark.
This was achieved in July 2003.6 While the bank‟s leadership was pleased with the bank‟s success, they
were more interested in determining how the bank would remain in a position of leadership while still
keeping the interests of its key stakeholders in balance.
Questions:
1. What did Jyske Bank change to enable it to deliver its new competitive positioning?
2. How did Jyske Bank implement those changes?
Section C: Applied Theory (30 marks)
 This section consists of Long Questions.
 Answer all the questions.
 Each question carries 15 marks.
 Detailed information should form the part of your answer (Word limit 150 to 200 words).
1. Choose a firm you are familiar with. Describe how you would design an ideal service recovery
strategy for that organization.
2. Discuss the customer‟s role as a productive resource for the firm. Describe a time when you
played this role. What did you do and how feel? Did the firm help you perform your role
effectively? How?
S-2-300813
END OF SECTION B
END OF SECTION C


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International Finance
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 & Part Two carries 5 marks each.
Part One:
Multiple choices:
1. Foreign exchange market in India is relatively very ________.
a. Big
b. Small
c. Medium
d. None of the above
2. Balance of payment is a systematic record of all _______ during a given period of time.
a. Political transactions
b. Social transactions
c. Economic transactions
d. None of the above
3. Merchandise trade balance, services balance & balance on unilateral transfer are the part of
________ account.
a. Current account
b. Capital account
c. Official account
d. None of the above
4. Interest rate swaps can be explained as an agreement between _________ parties.
a. One
b. Two
c. Three
d. None of the above
5. Capital account convertibility in India evolved in August
a. 1996
b. 1995
c. 1994
d. None of the above
6. Interest rate parity is an economic concept, expressed as a basic algebraic identity that
relates.
a. Capital rate & interest rate
b. Interest rate & exchange rate
Examination Paper of Finance Management
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c. Currency rate & exchange rate
d. None of the above
7. The two kind of swap in the forward market are_________
a. Forward & reverse swap
b. Reverse swap & option swap
c. Forward & option less swap
d. Forward swap & option swap
8. FEMA stands for_________
a. Forward exchange market
b. Future exchange market
c. Foreign exchange management act
d. None of the above
9. Exchange rate quotation methods are________
a. Direct and direct
b. Indirect and indirect
c. Direct and indirect
d. None of the above
10. International Fisher effect or generalized version of the Fisher effect is a combination
of_______
a. PPP theory and Fisher‟s open proposition
b. Fisher‟s open and closed proposition
c. PPP theory and Fisher‟s closed proposition
d. None of the above
Part Two:
1. Write a short note on „Interest Rate Parity System‟ for exchange rates.
2. What are Direct & Indirect Quotes of exchange rates?
3. What is „International Mutual Fund‟?
4. Briefly describe „swaps in foreign exchanges markets‟.
END OF SECTION A
Section B: Case lets (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).
Case let 1
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Managing Exchange Rate Risk
Mahindra International (India) imported spares of an engine from a US manufacturer for $ 5,000 per
annum at a price of $ 2.5 per piece. The average exchange rate during 2001-02 was Rs. 47.70/$. The
Indian company imported the spares also from a British manufacturer. In fact, it had diversified its
import in view of reducing the risk associated with the supply. The import from the USA was
competitive in view of the fact the same spares imported from the UK was slightly costlier. The
American spares cost Rs. 119.25 per piece, while the British spares cost Rs. 120.00 per piece. In
2002-03, US dollar appreciated to Rs. 48.40 with the result that the cost of American spares turned
higher than the British spares. In the sequel of the appreciation of US dollar, the Indian importer cut
its demand from 2,000 pieces to 500 pieces. The loss to the US exporter was colossal. But at the same
time, the Indian Importer suffered a lot. It had to pay a higher price for the US spares in terms of
rupee. And also, it had to divert its import from the USA to the UK insofar as the pound sterling did
not appreciate during this period. All this happened in the wake of the exchange rate changes.
Questions:
1. Mention the loss borne by the US exporter in the sequel of appreciation of dollar.
2. What strategy the Indian importer needs to follow to hedge the exchange rate risk?
Case let 2
ABN Amro Bank and Correspondent Banking in India
ABN AMRO bank has emerged as a major correspondent bank owing to a large network. In
India, it operates in six major cities, viz. Baroda, Chennai, Kolkata, Mumbai, New Delhi and
Pune. Being a correspondence bank, its product offerings are found primarily in the area of
trade and clearing. It is doing well in these owing to strong tie-up with local Indian banks
reaching 350 centres across the country. As a result, payments are effected speedily and
effectively.
Cash Management
The customized products in the area of cash management include cheques payable at par at all its
branches across the country, apart from traditional collection services, such as collection of
outstation/upcountry cheques drawn on other banks. ABN AMRO is a member of all major clearing
centers in the major financial centers. It has an electronic delivery system and structures multilateral
netting of cash.
Trade Services
Under trade services, the Bank offers a comprehensive range of products, such as:
1. LC reimbursement
2. Indian rupee trade payments
3. Handling documentary bills for collection
4. Bills negotiation
5. Letter of credit advising
6. Letter of credit confirmation
7. Guarantees
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IIBM Institute of Business Management
Treasury Services
Treasury services at ABN AMRO Bank (India) are available round-the-clock. Rupee funding at its
treasury desk is provided at competitive rates along with advice on market trends and rates. It
provides also advisory services on the request of financial institutions and corporate in the area of
regulatory, economic and financial matters including depository services.
Questions:
1. Describe the network of ABN AMRO Bank in India.
2. What role does it play for global cash management?
END OF SECTION B
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 factors that affect foreign exchange market. Explain the different types of foreign
exchange quotations.
2. What do you mean by balance of payment? What are the key components of balance of
payment
END OF SECTION C
Examination Paper of Finance Management
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IIBM Institute of Business Management
Examination Paper MM.100
Security Analysis and Portfolio Management
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 & Part Two carries 5 marks each.
Part One:
Multiple choices:
1. Beta is useful for comparing the relative _____________ of different stocks.
a. Business risk
b. Systematic risk
c. Liquidity risk
d. Country risk
2. The price prevailing in market is called________
a. Market security
b. Market value
c. Market price
d. None of the above
3. Line charts, Bar charts, Candles tic charts are the parts of__________
a. Fundamental analysis
b. Technical analysis
c. Company analysis
d. None of the above
4. A market portfolio is a portfolio consisting of a weighted __________ in the market.
a. Sum of every equity
b. Sum of every liabilities
c. Sum of every assets
d. None of the above
5. The date on the option contract is called the ___________
a. Expiration date
b. Date of maturity
c. Both a) & b)
d. None of the above
6. A forward contract is an agreement made today between a ___________ to exchange the
commodity.
a. Buyer & buyer
b. Buyer & seller
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IIBM Institute of Business Management
c. Seller & seller
d. None of the above
7. Portfolio means a collection or combination of financial assets such as?
a. Shares
b. Debentures
c. Government securities
d. All of the above
8. CAPM is the abbreviation of_________
a. Capital Asset Pricing Measure
b. Capital Average Pricing Model
c. Capital Asset Pricing Model
d. None of the above
9. In India the secondary market for shares is regulated by_______
a. RBI
b. SEBI
c. Company law board
d. There is no regulatory authority
10. The risk of the whole market as measured by „Beta‟ is________
a. 1
b. 0
c. -1
d. None of the above
Part Two:
1. What does „β‟ (Beta) mean in risk management?
2. Write a note on „options‟ & „future‟ derivatives.
3. Define Capital market theory.
4. Write a short note on CAPM.
END OF SECTION A
Section B: Case lets (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).
Case let 1
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IIBM Institute of Business Management
TOUAX is a French company and is currently Europe‟s no. 1 in shipping containers and river
barges, and no. 2 in modular building and freight railcars. The group provides operating leases to
customers around the world, both on its own account and for third-party investors. On June 24, 2009,
TOUAX announced that its capital increased by waiving preferential subscription rights but with
priority for existing shareholders, launched on 18 June 2009 for a total of E17, 851,519.76 (gross)
through the issue of 936,596 new shares which were subscribed in the entirely. Following partial
application of the extension clause, 952,747 shares were placed or 101.72% of the issue; total
proceeds were E18, 159,357.82.
This rights issue has enabled the Group to strengthen its financial structure, to position itself with
advantage for possible acquisitions of tangible stock, and to grasp opportunities thrown up by the
crisis (purchase of shipping containers, modular buildings, river barges and railcars, for hiring out on
mainly long-term leases). 370,062 new shares allotted under absolute entitlement were subscribed or
39.51% of the total number of new shares issue. Another 555,685 shares were applied for subject to
cutting back in the event of over subscription, and orders for these were all filled. Another 27,000
shares had been applied for by the general public, and following partial application of the extension
clause it proved possible to fill orders for all of these.
All the result of the right issue, TOUAX is well placed to respond to the boom in corporate
outsourcing of non-core assets, and every day provides over 5,000 customers with quick and flexible
leasing solutions. TOUAX is now listed on Euronext in Paris – NYSE Euronext Compartment C
(ISIN Code FR0000033003), and features in the SBF 250 Index.
Questions:
1. After analyzing the case, do you think all the companies that can afford, should opt for right
issue to improve their financial status?
2. What do you analyze as the two main advantages of the right issue?
Case let 2
In mid-February 1994, the British paper, the Sunday times ran on article that alleged that a 1 billion
sterling ($ 750 M) sale of equipment by British companies to Malaysia was secured only after bribes had
been paid to Malaysian government officials and after the British overseas development administration
(ODA) had agreed to approve a 234 million sterling grant to the Malaysian government for a
hydroelectric dam of (according to the Sunday times) dubious economic value. The clear implication was
that UK officials, in their enthusiasm to see British companies win a large defence contract, had yield to
pressures from “corrupt” Malaysian officials for bribes – both personal and in the form of the 234 million
sterling development grants.
What happened next took everyone by surprise. The Malaysian government promptly announced a an on
the impact of all British goods and services into Malaysia and demanded an apology from British
Government. Officially the ban applied only to government orders for British goods and services; the
private sector was free to busy as it chose. However, British companies with experience in the region
were nervous that the private sector would follow the government‟s lead in shunning British products. At
stake was as much as 4 billion sterling in British exports and construction activities in Malaysia and a
presence in one of the world‟s fastest growing developing economies (Malaysia‟s economic growth has
averaged 8% per annum since 1989). In announcing the ban, Malaysia‟s Prime Minister, Dr Mahathir
Mohammad, noted that the British media portrays Malaysians as corrupt because “ They are not British
Examination Paper of Finance Management
8
IIBM Institute of Business Management
and not white”…And “we believe the foreign media must learn the fact that developing countries,
including a country led by brown Moslem, have the ability to manage their own affairs successfully”.
The British government responded by stating, it could not tell the British press what and what not to
publish, to which Dr Mahathir replied there would be “no contracts for British press freedom to tell lies”.
At the same time, the British government came under attack from members of parliament in Britain, who
suspected the government acted unethically and approved the ODA hydroelectric grant to help British
companies win orders in Malaysia.
Questions:
1. If you are the CEO of a British company that now faces the loss of a lucrative contract in
Malaysia because of the dispute. What action should you take?
2. How do you think British government should respond to the Malaysian action?
END OF SECTION B
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. What do you mean by risk management? Elaborate the various kinds of systematic and nonsystematic
risks.
2. What do you mean by Portfolio management? What are the methods of calculating portfolio
performance evaluation?
END OF SECTION C
S-2-300813


PRINCIPLES AND PRACTICES OF BANKING IIBM ONGOING EXAM ANSWER SHEETS PROVIDED

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Principles & Practices of Banking
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 & Part Two carries 4 marks each.
Part One:
Multiple Choices:
1. Frequency of First Tranche Returns is:
a. Weekly
b. Monthly
c. Monthly/quarterly
d. Monthly/quarterly/half-yearly
2. An order for winding up a banking company can be issued by___________
a. The High Court
b. The RBI
c. The Central Government
d. The Supreme court
3. Who shall be natural guardian in case of married minor girl?
a. Father
b. Brother in law
c. Father-in-law
d. Husband
4. X a partner in the firm XYZ Co. wants to open a Bank account in the firm‟s name. It will require
signatures of:
a. All partners
b. Any one of the partner
c. Managing partner only
d. Sleeping partner not required
5. Public limited companies should have minimum shareholders, before Opening Bank account.
a. 11
b. 7
c. 5
d. 15
6. If the beneficiary is government then the Expiry of guarantee is governed by the „law of
limitation‟ ranging from 3 years to
a. 15 years
b. 30 years
Examination Paper of Banking & Financial Services Management
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IIBM Institute of Business Management
c. 20 years
d. 10 years
7. Charge created on LIC Policy is
a. Lien
b. Hypothecation
c. Pledge
d. Assignment
8. The device that combines the parallel input data into single serial output data is known as
a. Switcher
b. Multiplexer
c. Encoder
d. Front end processor
9. In market skimming pricing strategy:
a. Initially price is lower and then it is increased
b. Initial price is high and is maintained high
c. Initial price is low and is maintained low
d. Initially price is higher and then it is reduced
10. The marketing personnel need information _________intervals.
a. At yearly
b. At quarterly
c. At monthly
d. On a continuous basis and regular
Part Two:
1. Discuss the role of RBI in Indian Banking sector.
2. Write short notes on:
a. Repo Rate
b. Reverse Repo Rate.
3. Write short notes on:
a. Bank Lien
b. Right of set off
4. What is cash credit means?
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 200 to 250 words).
END OF SECTION A
Examination Paper of Banking & Financial Services Management
3
IIBM Institute of Business Management
Caselet 1
There is a lacuna in the present T-Bill auction system of RBI. The dealers (investors) are subject to
what is called the „Winners Curse‟. The value of a T-Bill to a dealer is the price it can fetch in the
secondary market. This is an unobserved random value, which is likely to be common to all dealers.
It is quite unlike the works of art which the Sotheby‟s would place at an auction. The price of Mona
Lisa, say, to an avid collector of Da Vinci‟s paintings, would be more than what a Picasso collector
would value it. In sharp contrast, market participants are likely to agree on the price of a T-Bill in the
secondary market. Now winning an auction in a discriminatory price method may not be profitable.
For, it would mean that the winner has overestimated the T-Bill value.
Questions:
1. How does the winner in such an auction become the loser due to the „winner curse‟?
2. Explain the role of primary dealers in the money market.
Caselet 2
In a bid to familiarize banks, exporters and other financial bodies with „Forfeiting‟, the State Bank of
India (SBI) will soon be setting up a three-man cell at its international division in Mumbai for
advisory purposes. According to Mr. D. Ian Guild, Senior Advisor, Forfeiting & Syndications
Group, Standard Bank, the cell was being set up after a series of meetings with the bank, and is
essentially aimed at spreading the message of Forfeiting as an effective trade financing mechanism
to increase exports. Suggesting that forfeiting was the ideal springboard for effecting a quantum
jump in exports in the medium-term, Mr. Guild said he was confident of aggregating forfeiting
business of $100 millions in 1998 and $250 millions in 1999 in the country. Since its introduction in
1992, Exim Bank had facilitated 69 forfeiting transactions valued at around $75 millions, with credit
periods ranging between 90 days and seven years, and covering the export of goods ranging from
textiles to plant and machinery. The RBI has now permitted all commercial banks to act as
facilitators for forfeiting transactions. Mr. Guild pointed out that forfeiting has not really taken off in
India because exporters and commercial banks lacked the knowledge of the mechanics of the
scheme. In India, the real challenge would be to motivate small and medium exporters to use the
forfeiting route for exports to countries which may not be able to buy on cash terms. Mr. S.
Bhattacharya, deputy general manager, Exim Bank, Calcutta, said: “Payment defaults by overseas
buyers were an integral part of cross-border business and export credit insurance has not been a
comprehensive answer to this problem”. Forfeiting offered an alternative solution, especially to
exporters wishing to penetrate difficult markets for the first time, he pointed out. Some of the top
international forfeiters in the world have stopped accepting forfeiting documents involving Pakistan
and Russia, according to Mr. Amitabh Mehta, Trader and Originator, Forfeiting and Syndications
group, Standard Bank London Ltd. (SBLL). According to Mr. Mehta, forfeiting transactions
involving Pakistan could not be carried out due to poor performance of the banks there. In addition,
the financial status of Pakistan following the nuclear blasts has made it impossible to carry out the
transactions. Similarly, transactions with Russia are being totally rejected by forfeiting due to the
current economic turmoil. Joining the list with Pakistan and Russia are Iraq, Sudan and Nigeria, he
added. Commenting on the Indian situation, Mr. Mehta said, “With its sound banking system, the
country is well placed in the international scene. In fact, there is tremendous potential for forfeiting
in the years to come,” he said. According to him, even after the nuclear tests conducted by India, the
top forfeiters were not worried and continued to accept forfeiting papers to be transacted with India.
Examination Paper of Banking & Financial Services Management
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IIBM Institute of Business Management
Questions:
1. Discuss the mechanism of forfeiting and the role played by banks in forfeiting transactions.
2. How does forfeiting differ from factoring?
Section C: Applied Theory (30 marks)
 This section consists Long Questions.
 Answer all the questions.
 Each question carries 15 marks.
 Detailed information should form the part of your answer (Word limit 150 to 200 words).
1. What are the various approaches to capital adequacy? Explain Basel II norms and minimum
capital requirements in Basel II norms.
2. What do you mean by non Performing Assets (NPA)? How have NPAs affected financial health
of Indian commercial banks?
END OF SECTION B
END OF SECTION C
Examination Paper of Banking & Financial Services Management
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IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Financial Services
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 & Part Two carries 5 marks each.
Part One:
Multiple Choices:
1. NBFS stands for ___________
2. ALCO is a decision making unit responsible for balance sheet planning from risk return
perspective. (T/F)
3. A contract of „Indemnity‟ is one whereby:
a. A person tries to use the other‟s property
b. A person promises to save the other‟s property from loss caused.
c. A person tries to trick the property of other for some other person.
d. None
4. The transaction between the lessor and the lessee being a demand sale is called__________
a. First sale
b. Second sale
c. Third sale
d. Fourth sale
5. Which of the following is comes under mutual funds?
Open-end funds
Closed-end funds
Both (a) & (b)
None
6. Concept of leasing involves:
a. Lessor
b. Lessee
c. None
d. All
7. CRISIL stands for____________
8. ____________are issued by the government for period ranging from 14 days to 364 days
through regular auctions.
a. Treasury Bills
b. Commercial Papers
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IIBM Institute of Business Management
c. Call Money Market
d. None
9. The practice of discounting accommodation bills is known as _____________
10. HUDCO stands for _____________
Part Two:
1. Explain about SEBI guidelines to merchant bankers.
2. List the different types of Factoring.
3. Write a short note on venture capital in India.
4. Write a short note on Depositories.
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 200 to 250 words).
Caselet 1
Sunlight Industries Ltd manages its accounts receivables internally by its sales and credit
department. The cost of sales ledger administration stands at Rs 9 crore annually. It supplies
chemicals to heavy industries. These chemicals are used as raw material for further use of are
directly sold to industrial units for consumption. There is good demand for both the types of uses.
For the direct consumers, the company has a credit policy of 2/10, net 30. Past experience of the
company has been that on average 40 per cent of the customers avail of the discount while the
balance of the receivables are collected on average 75 days after the invoice date. Sunlight Industries
also has small dealer networks that sell the chemicals. Bad debts of the company are currently 1.5
per cent of total sales.
Sunlight Industries finances its investment in debtors through a mix of bank credit and own longterm
funds in the ratio of 60:40. The current cost of bank credit and long-term funds are 12 per cent
and 15 per cent respectively.
There has been a consistent rise in the sales of the company due to its proactive measures in cost
reduction and maintaining good relations with dealers and customers. The projected sales for the
next year are Rs 800 crore, up 15 per cent from last year. Gross profiles have been maintained at a
healthy 22 per cent over the years and are expected to continue in future.
With escalating cost associated with the in-house management of debtors coupled with the need
to unburden the management with the task so as to focus on sales promotion, the CEO of Sunlight
Industries is examining the possibility of outsourcing its factoring service for managing its
END OF SECTION A
Examination Paper of Banking & Financial Services Management
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IIBM Institute of Business Management
receivables. He assigns the responsibility of Anita Guha, the CFO of Sunlight. Two proposals, the
details of which are given below, are available for Anita‟s consideration.
Proposal from Canbank Factors Ltd: The main elements of the proposal are: (i) Guaranteed
payment within 30 days (i) Advance, 88 per cent and 84 per cent for the resource and non-recourse
arrangements respectively (iii) discount charge in advance, 21 per cent for with resource and 22 per
cent without resource (iv) Commission, 4.5 per cent without resources 2.5 per cent and with
resource.
Proposal from Indbank Factors: (i) Guaranteed payment within 30 days (ii) Advance, 84 per cent
with resource and 80 per cent without resource (iii) Discount charge upfront, without resource 21 per
cent and with resource, 20 per cent and (iv) Commission upfront, without resource 3.6 per cent and
with resource 1.8 per cent.
The opinion of the Chief Marketing Manager is that in the context of the factoring arrangement,
his staff would be able to exclusively focus on sales promotion which would result in additional
sales of Rs 75 crore.
Required The CFO of Sunlight Industries seeks your advice as a financial consultants on the
alternative proposals. What advice would you give? Why? Calculations can be upto one digit only.
Caselet 2
Following are the financial statements for A Ltd and T Ltd for the current financial year. Both firms
operate in the same industry.
BALANCE SHEETS
Particulars Firm A Firm B
Total current assets Rs 14,00,000 Rs 10,00,000
Total fixed assets (net) 10,00,000 5,00,000
_____________ __________
Total assets 24,00,000 15,00,000
_____________ ___________
Equity capital (of Rs 10 each) 10,00,000 8,00,000
Retained earnings 2,00,000 _
14% Long-term debt 5,00,000 3,00,000
Total current liabilities 7,00,000 4,00,000
_____________ ___________
24,00,000 15,00,000
INCOME STATEMENTS
Net sales Rs 34,50,000 Rs 17,00,000
Cost of goods sold 27,60,000 13,60,000
__________ ___________
Gross profit 6,90,000 3,40,000
Operating expenses 2,96,923 1,45,692
Interest 70,000 42,000
__________ ___________
Earnings before taxes (EBT) 3,23,077 1,52,308
Taxes (0.35) 1,13,077 53,308
Earnings after taxes (EAT) 2,10,000 99,000
Examination Paper of Banking & Financial Services Management
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IIBM Institute of Business Management
Additional information: __________________________________
Number of equity shares 1,00,000 80,000
Dividend payment (D/P) ratio 0.40 0.60
Market price per share (MPS) Rs 40 Rs 15
__________________________________
Assume that the two firms are in the process of negotiating a merger through an exchange of equity
shares. You have been asked to assist in establishing equitable exchange terms, and are required to:
(i) Decompose the share prices of both the companies into EPS and P/E components, and also segregate
their EPS figures into return on equity (ROE) and book value of intrinsic value per share (BVPS)
components.
(ii) Estimate future EPS growth rates for each firm.
(iii) Based on expected operating synergies, A Ltd estimates that the intrinsic value of T‟s equity share
would be Rs 20 per share on its acquisition. You are required to develop a range of justifiable equity
share exchange ratios that can be offered by A Ltd‟s shareholders. Based on your analysis in parts (i)
and (ii), would you expect the negotiated terms to be closer to the upper, or the lower exchange ratio
limits? Why?
(iv) Calculate the post-merger EPS based on an exchange ratio of 0.4 : 1 being offered by A Ltd. Indicate
the immediate EPS accretion or dilution, if any, that will occur for each group of shareholders.
(v) Based on a 0.4 :1 exchange ratio, and assuming that A‟s pre-merger P/E ratio will continue after the
merger, estimate the post-merger market price. Show the resulting accretion or dilution in pre-merger
market prices.
Section C: Applied Theory (30 marks)
 This section consists of Long Questions.
 Answer all the questions.
 Each question carries 15 marks.
 Detailed information should form the part of your answer (Word limit 150 to 200 words).
1. What do you mean by money market? Discuss money market instruments in detail.
2. What is leasing? Explain about the advantages and disadvantages of lease finance.
S-2-300813
END OF SECTION B
END OF SECTION C


HUMAN RESOURCE DEVELOPMENT AND TRAINING IIBM ONGOING EXAM ANSWER SHEETS PROVIDED

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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
2
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
4
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
6
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
9
IIBM Institute of Business Management


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International Finance
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 & Part Two carries 5 marks each.
Part One:
Multiple choices:
1. Foreign exchange market in India is relatively very ________.
a. Big
b. Small
c. Medium
d. None of the above
2. Balance of payment is a systematic record of all _______ during a given period of time.
a. Political transactions
b. Social transactions
c. Economic transactions
d. None of the above
3. Merchandise trade balance, services balance & balance on unilateral transfer are the part of
________ account.
a. Current account
b. Capital account
c. Official account
d. None of the above
4. Interest rate swaps can be explained as an agreement between _________ parties.
a. One
b. Two
c. Three
d. None of the above
5. Capital account convertibility in India evolved in August
a. 1996
b. 1995
c. 1994
d. None of the above
6. Interest rate parity is an economic concept, expressed as a basic algebraic identity that
relates.
a. Capital rate & interest rate
b. Interest rate & exchange rate
Examination Paper of Finance Management
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IIBM Institute of Business Management
c. Currency rate & exchange rate
d. None of the above
7. The two kind of swap in the forward market are_________
a. Forward & reverse swap
b. Reverse swap & option swap
c. Forward & option less swap
d. Forward swap & option swap
8. FEMA stands for_________
a. Forward exchange market
b. Future exchange market
c. Foreign exchange management act
d. None of the above
9. Exchange rate quotation methods are________
a. Direct and direct
b. Indirect and indirect
c. Direct and indirect
d. None of the above
10. International Fisher effect or generalized version of the Fisher effect is a combination
of_______
a. PPP theory and Fisher‟s open proposition
b. Fisher‟s open and closed proposition
c. PPP theory and Fisher‟s closed proposition
d. None of the above
Part Two:
1. Write a short note on „Interest Rate Parity System‟ for exchange rates.
2. What are Direct & Indirect Quotes of exchange rates?
3. What is „International Mutual Fund‟?
4. Briefly describe „swaps in foreign exchanges markets‟.
END OF SECTION A
Section B: Case lets (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).
Case let 1
Examination Paper of Finance Management
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IIBM Institute of Business Management
Managing Exchange Rate Risk
Mahindra International (India) imported spares of an engine from a US manufacturer for $ 5,000 per
annum at a price of $ 2.5 per piece. The average exchange rate during 2001-02 was Rs. 47.70/$. The
Indian company imported the spares also from a British manufacturer. In fact, it had diversified its
import in view of reducing the risk associated with the supply. The import from the USA was
competitive in view of the fact the same spares imported from the UK was slightly costlier. The
American spares cost Rs. 119.25 per piece, while the British spares cost Rs. 120.00 per piece. In
2002-03, US dollar appreciated to Rs. 48.40 with the result that the cost of American spares turned
higher than the British spares. In the sequel of the appreciation of US dollar, the Indian importer cut
its demand from 2,000 pieces to 500 pieces. The loss to the US exporter was colossal. But at the same
time, the Indian Importer suffered a lot. It had to pay a higher price for the US spares in terms of
rupee. And also, it had to divert its import from the USA to the UK insofar as the pound sterling did
not appreciate during this period. All this happened in the wake of the exchange rate changes.
Questions:
1. Mention the loss borne by the US exporter in the sequel of appreciation of dollar.
2. What strategy the Indian importer needs to follow to hedge the exchange rate risk?
Case let 2
ABN Amro Bank and Correspondent Banking in India
ABN AMRO bank has emerged as a major correspondent bank owing to a large network. In
India, it operates in six major cities, viz. Baroda, Chennai, Kolkata, Mumbai, New Delhi and
Pune. Being a correspondence bank, its product offerings are found primarily in the area of
trade and clearing. It is doing well in these owing to strong tie-up with local Indian banks
reaching 350 centres across the country. As a result, payments are effected speedily and
effectively.
Cash Management
The customized products in the area of cash management include cheques payable at par at all its
branches across the country, apart from traditional collection services, such as collection of
outstation/upcountry cheques drawn on other banks. ABN AMRO is a member of all major clearing
centers in the major financial centers. It has an electronic delivery system and structures multilateral
netting of cash.
Trade Services
Under trade services, the Bank offers a comprehensive range of products, such as:
1. LC reimbursement
2. Indian rupee trade payments
3. Handling documentary bills for collection
4. Bills negotiation
5. Letter of credit advising
6. Letter of credit confirmation
7. Guarantees
Examination Paper of Finance Management
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IIBM Institute of Business Management
Treasury Services
Treasury services at ABN AMRO Bank (India) are available round-the-clock. Rupee funding at its
treasury desk is provided at competitive rates along with advice on market trends and rates. It
provides also advisory services on the request of financial institutions and corporate in the area of
regulatory, economic and financial matters including depository services.
Questions:
1. Describe the network of ABN AMRO Bank in India.
2. What role does it play for global cash management?
END OF SECTION B
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 factors that affect foreign exchange market. Explain the different types of foreign
exchange quotations.
2. What do you mean by balance of payment? What are the key components of balance of
payment
END OF SECTION C
Examination Paper of Finance Management
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IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Security Analysis and Portfolio Management
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 & Part Two carries 5 marks each.
Part One:
Multiple choices:
1. Beta is useful for comparing the relative _____________ of different stocks.
a. Business risk
b. Systematic risk
c. Liquidity risk
d. Country risk
2. The price prevailing in market is called________
a. Market security
b. Market value
c. Market price
d. None of the above
3. Line charts, Bar charts, Candles tic charts are the parts of__________
a. Fundamental analysis
b. Technical analysis
c. Company analysis
d. None of the above
4. A market portfolio is a portfolio consisting of a weighted __________ in the market.
a. Sum of every equity
b. Sum of every liabilities
c. Sum of every assets
d. None of the above
5. The date on the option contract is called the ___________
a. Expiration date
b. Date of maturity
c. Both a) & b)
d. None of the above
6. A forward contract is an agreement made today between a ___________ to exchange the
commodity.
a. Buyer & buyer
b. Buyer & seller
Examination Paper of Finance Management
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IIBM Institute of Business Management
c. Seller & seller
d. None of the above
7. Portfolio means a collection or combination of financial assets such as?
a. Shares
b. Debentures
c. Government securities
d. All of the above
8. CAPM is the abbreviation of_________
a. Capital Asset Pricing Measure
b. Capital Average Pricing Model
c. Capital Asset Pricing Model
d. None of the above
9. In India the secondary market for shares is regulated by_______
a. RBI
b. SEBI
c. Company law board
d. There is no regulatory authority
10. The risk of the whole market as measured by „Beta‟ is________
a. 1
b. 0
c. -1
d. None of the above
Part Two:
1. What does „β‟ (Beta) mean in risk management?
2. Write a note on „options‟ & „future‟ derivatives.
3. Define Capital market theory.
4. Write a short note on CAPM.
END OF SECTION A
Section B: Case lets (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).
Case let 1
Examination Paper of Finance Management
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IIBM Institute of Business Management
TOUAX is a French company and is currently Europe‟s no. 1 in shipping containers and river
barges, and no. 2 in modular building and freight railcars. The group provides operating leases to
customers around the world, both on its own account and for third-party investors. On June 24, 2009,
TOUAX announced that its capital increased by waiving preferential subscription rights but with
priority for existing shareholders, launched on 18 June 2009 for a total of E17, 851,519.76 (gross)
through the issue of 936,596 new shares which were subscribed in the entirely. Following partial
application of the extension clause, 952,747 shares were placed or 101.72% of the issue; total
proceeds were E18, 159,357.82.
This rights issue has enabled the Group to strengthen its financial structure, to position itself with
advantage for possible acquisitions of tangible stock, and to grasp opportunities thrown up by the
crisis (purchase of shipping containers, modular buildings, river barges and railcars, for hiring out on
mainly long-term leases). 370,062 new shares allotted under absolute entitlement were subscribed or
39.51% of the total number of new shares issue. Another 555,685 shares were applied for subject to
cutting back in the event of over subscription, and orders for these were all filled. Another 27,000
shares had been applied for by the general public, and following partial application of the extension
clause it proved possible to fill orders for all of these.
All the result of the right issue, TOUAX is well placed to respond to the boom in corporate
outsourcing of non-core assets, and every day provides over 5,000 customers with quick and flexible
leasing solutions. TOUAX is now listed on Euronext in Paris – NYSE Euronext Compartment C
(ISIN Code FR0000033003), and features in the SBF 250 Index.
Questions:
1. After analyzing the case, do you think all the companies that can afford, should opt for right
issue to improve their financial status?
2. What do you analyze as the two main advantages of the right issue?
Case let 2
In mid-February 1994, the British paper, the Sunday times ran on article that alleged that a 1 billion
sterling ($ 750 M) sale of equipment by British companies to Malaysia was secured only after bribes had
been paid to Malaysian government officials and after the British overseas development administration
(ODA) had agreed to approve a 234 million sterling grant to the Malaysian government for a
hydroelectric dam of (according to the Sunday times) dubious economic value. The clear implication was
that UK officials, in their enthusiasm to see British companies win a large defence contract, had yield to
pressures from “corrupt” Malaysian officials for bribes – both personal and in the form of the 234 million
sterling development grants.
What happened next took everyone by surprise. The Malaysian government promptly announced a an on
the impact of all British goods and services into Malaysia and demanded an apology from British
Government. Officially the ban applied only to government orders for British goods and services; the
private sector was free to busy as it chose. However, British companies with experience in the region
were nervous that the private sector would follow the government‟s lead in shunning British products. At
stake was as much as 4 billion sterling in British exports and construction activities in Malaysia and a
presence in one of the world‟s fastest growing developing economies (Malaysia‟s economic growth has
averaged 8% per annum since 1989). In announcing the ban, Malaysia‟s Prime Minister, Dr Mahathir
Mohammad, noted that the British media portrays Malaysians as corrupt because “ They are not British
Examination Paper of Finance Management
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IIBM Institute of Business Management
and not white”…And “we believe the foreign media must learn the fact that developing countries,
including a country led by brown Moslem, have the ability to manage their own affairs successfully”.
The British government responded by stating, it could not tell the British press what and what not to
publish, to which Dr Mahathir replied there would be “no contracts for British press freedom to tell lies”.
At the same time, the British government came under attack from members of parliament in Britain, who
suspected the government acted unethically and approved the ODA hydroelectric grant to help British
companies win orders in Malaysia.
Questions:
1. If you are the CEO of a British company that now faces the loss of a lucrative contract in
Malaysia because of the dispute. What action should you take?
2. How do you think British government should respond to the Malaysian action?
END OF SECTION B
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. What do you mean by risk management? Elaborate the various kinds of systematic and nonsystematic
risks.
2. What do you mean by Portfolio management? What are the methods of calculating portfolio
performance evaluation?
END OF SECTION C
S-2-300813


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Business Communication
Section A: Objective Type & Short Questions (30 marks)
 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 4 marks each.
Part one:
Multiple choice:
1. __________is an essential function of Business Organizations:
a. Information
b. Communication
c. Power
d. None of the above
2. Physiological Barriers of listening are:
a. Hearing impairment
b. Physical conditions
c. Prejudices
d. All of the above
3. Which presentation tend to make you speak more quickly than usual:
a. Electronic
b. Oral
c. Both „a‟ and „b‟
d. None of the above
4. What is the main function of Business Communication:
a. Sincerity
b. Positive language
c. Persuasion
d. Ethical standard
5. The responsibilities of the office manager in a firm that produces electronics spares is:
a. Everything in the office runs efficiently
b. Furniture and other equipment in the office is adequate
c. Processing all the incoming official mail and responding to some
d. All of the above
Examination Paper of Business Communication
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IIBM Institute of Business Management
6. Labov‟s Storytelling Model based on:
a. Communication through speech
b. Language learning
c. Group Discussions
d. None of the above
7. Diagonal Communication is basically the:
a. Communication across boundaries
b. Communication between the CEO and the managers
c. Communication through body language
d. Communication within a department
8. How to make Oral Communication Effective?
a. By Clarity
b. By Brevity
c. By Right words
d. All of the above
9. Direct Eye contact of more than 10 seconds can create:
a. Discomfort & Anxiety
b. Emotional relationship between listeners and speakers
c. Excitement
d. None of the above
10. Encoding means:
a. Transmission
b. Perception
c. Ideation
d. None of the above
Part Two:
1. Define 7C‟s of effective communication.
2. Explain „Space Language‟.
3. Differentiate between good listeners and bad listeners.
4. List the different types of business report.
5. Define „Kinesics‟.
END OF SECTION A
Examination Paper of Business Communication
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IIBM Institute of Business 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
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 the misunderstanding?
2. Discuss the main features involved in this case.
Caselet 2
I don‟t want to speak to you. Connect me to your boss in the US,” hissed the American on the
phone. The young girl at a Bangalore call centre tried to be as polite as she could. At another call
centre, another day, another young girl had a Londoner unleashing himself on her, “Young lady,
do you know that because of you Indians we are losing jobs?”
The outsourcing backlash is getting ugly. Handling irate callers is the new brief for the young
men and women taking calls at these outsourced job centres. Supervisors tell them to be „cool‟.
Avinash Vashistha, managing partner of NEOIT, a leading US-based consultancy firm says,
“Companies involved in outsourcing both in the US and India are already getting a lot of hate
mail against outsourcing and it is hardly surprising that some people should behave like this on
the telephone.” Vashistha says Indian call centre‟s should train their operators how to handle
such calls. Indeed, the furor raised by the Western media over job losses because of outsourcing
Examination Paper of Business Communication
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IIBM Institute of Business Management
has made ordinary citizens there sensitive to the fact that their calls are being taken not from
their midst, but in countries such as India and the Philippines.
The angry outbursts the operators face border on the racist and sexist, says the manager of a call
centre in Hyderabad. But operators and senior executives of call centres refuse to go on record
for fear of kicking up a controversy that might result in their companies‟ losing clients overseas.
“It‟s happening often enough and so let‟s face it,” says a senior executive of a Gurgaon call
centre, adding, “This doesn‟t have any impact on business.”
Questions
1. Suppose you are working as an operator in a call centre in India and receiving calls
from Americans and Londoners. How would you handle such calls?
2. Do you agree with the view such abusive happenings on the telephone do not have any
impact on business?
END OF SECTION B
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. What do you by Communication Barriers? How and why do they occur? What can be
done to overcome the Barriers to Communication?
2. Define and explain the term Negotiation and also briefly explain the phases of
Negotiation.
END OF SECTION C
S-2-250613


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Retail Management
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 2 marks each & Part Two carries 4 marks each.
Part One:
Multiple Choices:
1. The minimum value of Conversion ratio is_________
a. 0
b. 0.5
c. 2
d. 1
2. The law of retail gravitation is also called__________
a. Huff‟s law.
b. Belly‟s law.
c. Philip Kotler‟s law.
d. Relly‟s law.
3. In Huff‟s probability model of retail store location, the exponential „alpha‟ denotes,
a. The attractiveness of the store.
b. Power of the store in terms of potential customer located farthest.
c. It is simply a power over the attractiveness of the store.
d. None.
4. If the market has low level of retail saturation then the chances of success in the market is,
a. Higher.
b. Lower.
c. Unpredictable.
d. Extremely lower
5. If the original price be „a‟ and the reduce price be „b‟ then the mark down % in Pricing techniques
is given by,
a. (a – b)/a.
b. (a – b)/b.
c. (b – a)/a.
d. (b – a)/b.
Part Two:
Examination Paper of Retail Management
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IIBM Institute of Business Management
1. What do mean by „Super market‟?
2. What do you understand by Upper and Lower threshold in pricing methodologies?
3. What does the term „silent market‟ say?
4. Explain „Gap theory‟ related with service quality.
5. Explain barometric technique used for sales forecasting.
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 200 to 250 words).
Caselet 1
Retail Management
Shane Flynn graduated from UCD with a Bachelor of Arts in 1994 and has worked in the retail sector
ever since. Although he has always entertained the idea of postgraduate studies, after four years in
university Shane was ready to get out and start earning some money in the „real world‟.
While working as retail business manager for Statoil Ireland in 2005, Shane learned about the part-time
MBS in Retail Management in DIT Aungier Street, and decided the time was right for a return to
college. „It was very hard, but I‟m glad I had commercial experience before I undertook this, I don‟t
know if I would have managed it straight after the BA degree,‟ he says.
His management were completely in agreement and Shane received full support, with regard to both
fees and time-off, during his two-year studies. The MBS in Retail Management required that Shane
attend lectures every Tuesday afternoon from 2pm, and also spend a week „on-campus‟ attending
lectures and producing papers on three or four occasions. Topaz Energy Group acquired both Statoil‟s
and Shell‟s Irish operations while Shane was in college, and he is now retail manager of every Statoil
and Shell branded filling station in Ireland. Thankfully, Topaz was more than willing to continue
supporting Shane‟s educational efforts.
In response to a query on how his course work could be applied to real-life work situations, Shane
mentions his dissertation topic that examined whether a lean management strategy can give a
competitive advantage to a forecourt operator. „Very specifically that helped me, but in all the classes I
learned something that I‟ve been able to apply successfully to work, be it human resource management,
supply chain, or whatever.‟
1. Did the fact that Shane was working and could think of real-world applications for what he was
END OF SECTION B
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learning make the course more interesting?
2. How would you describe Shane‟s experience of part-time postgraduate education?
Caselet 2
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 dealerowned
and operated. This chain store format identify 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. Unit 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-dividend into two formats again, based on the size of the stores. They are:
(1) Super Stores, generally more than 5,000 sq.ft. Catering to customers in the footwear category.
(2) High-street stores that are anywhere between 500 and 1,500 sq.ft. Found in busy shopping areas.
(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 exclusively 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
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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 is 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 decorators 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 labor unions), the sales personnel who are on its permanent rolls are trained in selling
footwear. However, there are a large proportion of untrained and temporary hands. Further,
salespersons do not wear any uniform and hence customers can hardly identify them. There is as yet
no loyalty program to create customer stickiness 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.
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?
Section C: Applied Theory (30 marks)
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 This section consists of Long Questions.
 Answer all the questions.
 Each question carries 15 marks.
 Detailed information should form the part of your answer (Word limit 150 to 200 words).
1. “The Indian Retail sectors are witnessing a transition phase where organized retailing is taking a
lead over unorganized retailing”. In the light of above statement, explain the current states of
Indian Retailing.
2. “The customer is fully satisfied when the perceived services meets or exceeds their
expectations”. Explain?
END OF SECTION C
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Examination Paper MM.100
Consumer Behaviour
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 2 marks each & Part Two carries 4 marks each.
Part One:
Multiple Choices:
1. The Yellow color is related with personality links like________
a. Caution, warmth
b. Power, informality
c. Passion, excitement
d. Purity, innocence
2. Consumers having high ethnocentric value in CETSCALE for foreign made products are likely to
feel that________
a. It is worthy to purchase the foreign products.
b. It is wrong to purchase foreign made products.
c. Only foreign made products should be purchased.
d. They should remain neutral.
3. If the OSL(optimum stimulation level) score of a person is greater than the lifestyle he/she is
living then he/she likely to
a. Take rest
b. Appear quite satisfied
c. Seem bored
d. Can not be predicted.
4. The psychologists who disagree with the Freud‟s theory of personality are usually referred
as_______
a. Non Freudians
b. Freudians
c. Neo Freudians
d. C-Freudians
5. According to Sigmund Freud, the human personality consists of 3 interacting systems viz the id,
the superego and the ego. What actually „id‟ refers to
a. Its role is to see the individual‟s needs in a socially acceptable fashion.
b. Its role is to drive impulsions for the needs to be satisfied immediately.
c. Its function is to control and balance the impulsive demands.
d. None
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Part Two:
1. What is a „common man approach‟?
2. Differentiate between „Enculturation‟ and „Acculturation‟.
3. Write a short note on „Rokeach Value Survey‟, a widely used value instrument, in consumer
behavior studies.
4. Explain the „Sociometric method‟ of measurement in „Opinion Leadership‟.
5. What do you understand by the term „Viral marketing‟?
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 200 to 250 words).
Caselet 1
The Indian refrigeration industry had apparently reached maturity in the eighties. The introduction
stage could be seen in 1962-66; growth, 1967-80; and maturity 1981-88.Between 1989-90 and 1990-
91, the market grew by 12 to 12.35 lakhs units; in 1992-93 it is estimated to have come down from
12 to 10.39 lakhs pieces. Thus, the decline seems to have begun. Presently, there are six main
competitors in the refrigerator market in India. The industry seems to have structure prevailing in
monopolistic competition. The products at present available in the market are under the brand names
of Godrej, Kelvinator, Voltas, Videocon, BPL and Allwyn. The new entrants to the market like BPL
and Videocon with latest ultra modern refrigeration technology have thrown down the gauntlet to the
existing leaders like Godrej and Kelvinator. A study has been conducted to find out what change
have occurred in consumers behavior due to the emergence of these new challenges, because, for all
one knows; a very tough competition has recently emerged among the industrial giants due to which
consumer behavior has undergone drastic change. The main purpose of study is to see how defectors
are affecting consumer behavior. The specific objectives of this study are positioning of products
and brands, rating of different parameters and their ranking, consumers‟ degree of satisfaction,
estimating ideal capacity and ideal prices. Consumer‟s perception of price and brand, awareness of
different brands and various sources of information to the consumer. This survey leads to the
conclusion, that most of the people are aware of 165-liter capacity with awareness of nearly 95%,
others are less known to consumers. The most important parameters for customers while buying a
refrigerator are technology, cooling efficiency, durability, price, capacity and after-sales service in
that order. According to the dealers, the customers consider brand name, technology, cooling
efficiency, durability and after-sales service as very important. Other parameters like special
gift/price, guarantee/warranty are just important parameters. According to the customers, BPL,
END OF SECTION A
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Voltas and Videocon are high – priced refrigerator; Godrej and Kelvinator, comparatively lowpriced;
and Allwyn, medium-priced. From the dealers‟ survey it has been found out that the ideal
capacity is 165 liter; and the ideal price Rs. 7,000-8,000.
1. Due to the emergence of new industrial giants like BPL and Videocon, consumer
behavior has undergone a sea-change. In what ways?
2. Discuss which will be the most effective strategy according to you that will make
consumer brand loyal in the refrigerator industry.
Caselet 2
Walking down the streets of Delhi‟s Connaught place, capital‟s business heart, Mike Steve, 50 years
old CEO of Macnine shoes (India), was looking at the feet of the busy office goers. The CEO
purposely walked to his office near Super Bazar from the Palika car parking to have a first hand
feeling of the market response to the Macnine shoes, and in general the foot-wear habit of urban
Indians. Macnine shoes brought an image of simple no fuss yet elegant office-going shoes. The
shoes, known for its comfort and reasonable prices shared a good market share in face of
competition from Windsor, Red Tape, Lee Cooper, Woodland, etc. but as the days passed Mike‟s
trained eyes could see the changing scenario. Office goers no longer seemed to prefer “no fuss”
shoes, there was a distinct preference for heavy looking chunky shoes. People‟s perception about
office-going shoes was changing from regular 6-hole laced shoes to these heavy looking shoes. As a
result, Macnine shoes‟ market share decreased by 10 per cent between 1998 and 1999. Disturbed by
the fact, Mr. Steve called a meeting of the departmental heads and after five-hour long meeting it
was accepted, Indian consumers had undergone a sea change in their attitudes and perceptions about
the products. Office was no long seen as a boring work-place where a “no nonsense” rather “stiff
upper lip” attitude has to be maintained. Office was seen as more a part of regular life and a relaxed
“as you want to be” (of course within limits) attitude. Keeping pace with the time, Macnine shoes
also should shed its “traditional” image. More importantly, consumers are going more and more for
branded shoes, rather than mass production shoes that will be available at the retail shops. The
departmental heads agreed that there is a definite price-quality perception in the mind of the
consumers. Consumers perceive high price as a certificate of high quality that will be associated with
the branded products. Based on the price-quality perception, Macnine shoes were decided to be
positioned in the market. Dramatically changing from the basic principle of quality and affordability
targeting the growing middle class, the company saw a better prospect in developing a high priced
brand image as shoe was no longer, especially in big cities seen as necessity but it was a part of life
style marketing where shoes were seen as fashion accessories.
Macnine shoes which for over two decades was known for making popular affordable shoes,
took a one eighty degree turn and developed dedicated showroom with premium shoes and other
accessories like T-shirts, bags, socks etc. but, the result were quite contrary to what was expected,
the decrease in market share continued despite these efforts. The reason seems quite simple, or
decade‟s consumer has known the shoe to be in the affordable range. With this sudden change the
loyal buyers felt betrayed and turned away towards other local brands. The main selling point of the
company was missing the consumers no longer felt the urge to come to buy macnine shoes. The fact
was the brands who started as selling premium shoes were perceived to be in a category of catering
the upper category of consumers with extremely focused range of shoes which borne a premium
price. Talk of red Tape, talk of Lee Copper, the image that comes to the consumer‟s mind is of
premium shoes with all its associated characteristics. While past experience brings in the minds of
the consumer an “affordability” image of Macnine shoes. When the company drastically wanted to
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change the image, they could not fit into consumer perception of a premium shoe, while high price
deterred people who wanted affordability foremost. Macnine lost on both the grounds.
1. Explain the “role and status” for Macnine shoes.
2. Suggest some ways of changing consumer perception of Macnine shoes.
Section C: Applied Theory (30 marks)
 This section consists of Long Questions.
 Answer all the questions.
 Each question carries 15 marks.
 Detailed information should form the part of your answer (Word limit 150 to 200 words).
1. A college student has just purchased a new personal computer. What factors might cause the
student to experience post purchase dissonance? How might the student try to overcome it? How
can the retailer who sold the computer help reduce the student‟s dissonance? How can the
computer‟s manufacturer help?
2. An Advertising on a known deodorant shows a young beautiful girl is upset to meet her
boyfriend, as friends point out at her “Bad body odour”. The advertisement is trying to arouse
which motive in the consumer? Discuss by giving one similar examples?
S-2-300813
END OF SECTION B
END OF SECTION C


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Project Management Certification
Guidelines for paper
 Total No. of Questions is 100.
 The minimum passing marks is 50%.
 Each Question carries 1 mark.
 Answer all the Questions.
Multiple Choices:
1. A_______ is a temporary endeavor undertaken to create a unique product, service or result.
a) Program
b) Process
c) Project
d) Portfolio
2. Which of the following is not a potential advantage of using good project management?
a) Shorter development times
b) Higher worker morale
c) Lower cost of capital
d) Higher profit margins
3. Which of the following is not an attribute of a project?
a) Projects are unique
b) Projects are developed using progressive elaboration
c) Projects have a primary customer or sponsor
d) Projects involve little uncertainty
4. Which of the following is not part of the triple constraint of project management?
a) Meeting scope goals
b) Meeting time goals
c) Meeting communications goals
d) Meeting cost goals
5. The first stage of any project is
a) Proposal
b) Conceptualization
c) Implementation
d) Management
6. __________is the application of knowledge, skills, tools and techniques to project activities to
meet project requirements.
a) Project Management
b) Program Management
c) Project portfolio Management
d) Requirement Management
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7. Project portfolio management addresses __________goals of an organization, while project
management addresses _________goals.
a) Strategic, tactical
b) Tactical, strategic
c) Internal, external
d) External, internal
8. Several application development projects done for the same functional group might best
be managed as part of a____________
a) Portfolio
b) Program
c) Investment
d) Collaborative
9. Which of the following is not one of the top ten skills or competencies of an effective
project manager?
a) People skills
b) Leadership
c) Integrity
d) Technical skills
10. What is the certification program called that the Project Management Institute provides?
a) Microsoft Certified Project Manager (MCPM)
b) Project Manager Professional (PMP)
c) Project Management Expert (PME)
d) Project Management Mentor (PMM)
11. A___________ is a series of actions directed towards a particular result.
a) Goal
b) Process
c) Plan
d) Project
12. Processes include coordinating people and other resource to carry out
the project plans and produce the products, service, or results of the project or phase.
a) Initiating
b) Planning
c) Executing
d) Monitoring & controlling
13. Which process group normally requires the most resources and time?
a) Initiating
b) Planning
c) Executing
d) Monitoring and controlling
14. A work breakdown structure, project schedule, and cost estimates are outputs of the process.
a) Initiating
b) Planning
c) Executing
d) Monitoring and controlling
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15. Which process group includes activities from each of the nine knowledge areas?
a) Initiating
b) Planning
c) Executing
d) Monitoring and controlling
16. Project management as a profession is almost unique in having institutions concerned with
its development who promote what they term their
a) Body of language
b) Body of knowledge
c) Strategy
d) Work
17. Initiating involves developing a project charter and preliminary project scope statement, which
are part of the project_____________ management knowledge.
a) Integration
b) Scope
c) Communications
d) Risk
18. A__________ describes how things should be done, and different organizations often have
different ways of doing things.
a) Regulation
b) Process
c) Standard
d) Methodology
19._________ involves measuring progress toward project objectives and talking corrective actions.
a) Initiating
b) Planning
c) Executing
d) Monitoring and controlling
20. What type of report do project teams create to reflect on what went right with the project?
a) Lessons – learned report
b) Status report
c) Final project report
d) Business case
21. Project manager is responsible for_________
a) Overseeing change
b) Cross functional activities
c) Ever changing set of tasks
d) All above
22. Many people use to have a standard format for preparing various project
management documents.
a) Methodologies
b) Templates
c) Project management software
d) Standards
23. What is the last step in the four – stage planning process for selecting information
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technology projects?
a) Information technology strategy planning
b) Business area analysis
c) Project planning
d) Resource allocation
24. A new government law requires an organization to report data in anew way. Under which category
would a new information system project to provide this data fall?
a) Problem
b) Opportunity
c) Directive
d) Regulation
25. A_________ is a document that formally recognizes the existence of a project and provides
direction on the project‟s objectives and management.
a) Project charter
b) Preliminary scope statement
c) Business case
d) Project management plan
26. ICOM model, which is one of the major roles of project manager, stand for__________
a) Integrated Constraint of Mechanism
b) Inputs, Outputs, Constraints & Mechanism
c) Inputs, Outputs, Constraints & Money
d) None
27. A_________ often includes sensitive information, so it should not be part of the overall project
plan for anyone to see.
a) Business case
b) Project charter
c) Personnel chart
d) Stakeholder analysis
28. Which of the following is not a suggestion for performing integrated change control?
a) Use good configuration management
b) Minimize change
c) Establish a formal change control system
d) View project management as a process of constant communication and negotiation
29. refer(s) to all the work involved in creating the products of the projects and
processes used to create them.
a) Deliverables
b) Milestones
c) Scope
d) Product development
30. Assume you have a project with major categories called planning, analysis, design, and
testing. What level of the WBS would these items fall under?
a) 0
b) 1
c) 2
d) 3
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31. Which of the following is not a best practice that can help in avoiding scope problems
on information technology projects?
a) Keep the scope realistic
b) Use off-the-shelf hardware and software whenever possible
c) Follow good project management processes
d) Don‟t involve too many users in scope management
32. Having ascertains the portfolio of projects obtained objectives for each of them, we have to
move to the next stage of the strategy process to balance the objectives
a) Policy deployment
b) Strategy matrix
c) Project performance measurement
d) None
33. What major restaurant chain terminated a large project after spending $170 million on it,
primarily because they realized the project scope was too much to handle?
a) Burger King
b) Pizza Hut
c) McDonalds
d) Taco Bell
34. Scope___________ is often achieved by a customer inspection and then sign- off on
key deliverables.
a) Verification
b) Validation
c) Completion
d) Close – out
35. Project management software helps you ________ which serves as a develop a basis
for creating Gantt charts, assigning resources, and allocating costs.
a) Project plan
b) Schedule
c) WBS
d) Deliverable
36. WBS (Work Breakdown Structure) is also known as _________
a) Chunking
b) Unbundling
c) Both (a) & (b)
d) None
37. What is the first process in planning a project schedule?
a) Milestone definition
b) Activity definition
c) Activity resource estimation
d) Activity sequencing
38. Predecessors, successes, logical relationships, leads and lags, resource requirements, constraints,
imposed dates, and assumptions are all examples of .
a) Items in an activity list
b) Items on a Gantt chart
c) Milestone attributes
d) Activity attributes
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39. As the project manager for a software development project, you are helping to develop its
schedule. You decide that writing code for a system cannot start until sign off on the
analysis work. What type of dependency is this?
a) Technical
b) Mandatory
c) Discretionary
d) External
40. You cannot start editing a technical report until someone else completes the first draft. What
type of dependency does this represent?
a) Finish – to – start
b) Start – to – start
c) Finish – to – finish
d) Start – to – finish
41. ___________ Involves going through the cycle several times to test the effects of the changes
make on the outcomes.
a) Planning
b) Strategy
c) Iterative
d) None
42.
A B
1 2
3
5Days 7Days
Above figure shows two activities A & B; B cannot start until A finished and the times for A
& B are 5 and 7 days respectively. This logic is known as
a) Dependency
b) Precedence
c) Freedom
d) None
43.
10
A
20
5Days
In the above figure calculate the EET (earliest event time) at 20.
a) 10
b) 20
c) 5
d) 25
44. What symbol on a Gantt chart represents a slipped milestone?
a) A black arrow
b) A white arrow
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c) A black diamond
d) A white diamond
45. What type of diagram shows planned and actual project schedule information?
a) A network
b) A Gantt chart
c) A Tracking
d) A milestone chart
46.____________ is a network diagramming technique used to predict total project duration.
a) PERT
b) A Gantt chart
c) Critical path method
d) Crashing
47. Which of the following statement is false?
a) “Growing grass” was on the critical path for a large theme park project.
b) The critical path is the series of activities that determine the earliest time by which
a project can be completed.
c) A forward pass through a project network diagram determines the early start and
early finish dates for each activity.
d) Fast tracking is a technique for marking cost and schedule trade-offs to obtain
the obtain the greatest amount of schedule comparison for the least incremental
cost.
48. ____________ is a method of scheduling that considers limited resources when creating a
project schedule and includes buffers to protect the project completion date.
a) Parkinson‟s Law
b) Murphy‟s Law
c) Critical path analysis
d) Critical chain scheduling
49.___________ is a resource scarified or foregone to achieve a specific objective or
something given up in exchange.
a) Money
b) Liability
c) Trade
d) Cost
50. What is main goal of project cost management?
a) To complete a project for as little cost as possible
b) To complete a project within an approved budget
c) To provide truthful and accurate cost information on projects
d) To ensure that an organization‟s money is used widely
51. A fundamental of „Theory of Constraints‟ (TOC) is to manage systems by focusing on the
constraints, termed as
a) Watermark
b) Bottleneck
c) Tick-sheet
d) None
52. “An activity will expand to fill the time available”; it is
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a) Newton‟s Law
b) Parkinson‟s Law
c) Einstein‟s Law
d) None
53. Which of the following is not a key output of project cost management?
a) A cost estimate
b) A cost management plan
c) Updates to the cost management plan
d) A cost baseline
54. If a company loses $5 for every $100 in revenue for a certain product, what is profit margin
for that product?
a) -5 percent
b) 5 percent
c) -$5
d) $5
55.________reserves allow for future situations that are unpredictable.
a) Contingency
b) Financial
c) Management
d) Baseline
56. You are preparing a cost estimate for a building based on its location, purpose, number of
square feet, and other characteristics. What cost estimating technique are you using?
a) Parametric
b) Analogous
c) Bottom – up
d) Top – down
57.________ involves allocating the project cost estimate to individual work items over time.
a) Reserve analysis
b) Life cycle costing
c) Project cost budgeting
d) Earned value analysis
58._________ is a project performance measurement technique that integrates scope time,
and cost data.
a) Reserve analysis
b) Life cycle costing
c) Project cost budgeting
d) Earned value analysis
59. If the actual cost for a WBS item is $1500 and its earned value was $2000, what is its
cost variance, and is it under or over budget?
a) The cost variance is -$500, which is over budget
b) The cost variance is -$500, which is under budget
c) The cost variance is $500, which is over budget
d) The cost variance is $500, which is under budget
60. If a project is halfway completed and its schedule performance index is 110% and its
cost performance index is 95%, how is it progressing?
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a) It is ahead of schedule and under budget
b) It is ahead of schedule and over budget
c) It is behind schedule and under budget
d) It is behind schedule and over budget
61. To determine the cost of particular element in advance of the project, which technique can be
employed?
a) Parametric estimating
b) As…………but…………s
c) Forecasts
d) All above
62._________is the degree to which a set of inherent characteristics fulfills requirements.
a) Quality
b) Conformance to requirements
c) Fitness for use
d) Reliability
63. What is the purpose of project quality management?
a) To produce the highest quality products and services possible
b) To ensure that appropriate quality standards are met
c) To ensure that the project will satisfy the needs for which it was undertaken
d) All of the above
64.__________ generates ideas for quality improvements by comparing specific project
practices or product characteristics to those of other projects or products within or outside
the performing organization.
a) Quality audits
b) Design of experiments
c) Six Sigma
d) Benchmarking
65. What tool could you use to determine whether a process is in control or out of control?
a) A cause – and – effect diagram
b) A control chart
c) A run chart
d) A scatter chart
66. Complication to the critical path represents the formation of compound series of activities
often involving different paths which has been termed
a) The critical chain
b) The critical path
c) TOC
d) Resource path
67. Six Sigma‟s target for perfection is the achievement of no more than defects,
errors, or mistakes per million opportunities.
a) 6
b) 9
c) 3.4
d) 1
Examination Paper of Project Management Certification
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IIB M Institute of Business Management
68. The seven run rule states that if seven data points in a row on a control chart are all below the
mean, above the means, or all increasing or decreasing, then the process needs to be examined
for ___________ problems.
a) Random
b) Non – random
c) Six Sigma
d) Quality
69. What is the preferred order for performing testing on information technology projects?
a) Unit testing, integration testing, system testing, user acceptance testing
b) Unit testing, system testing, integration testing, user acceptance testing
c) Unit testing, system testing, user acceptance testing, integration testing
d) Unit testing, integration testing, user acceptance testing, system testing
70. is known for his work on quality control in Japan and developed the 14
points for Management in his text Out of the Crisis.
a) Juran
b) Deming
c) Crosby
d) Ishikawa
71. The theory of constraints (TOC) is successfully applied in___________
a) Planning
b) Checking
c) Manufacturing
d) Controlling
72. PMI‟s OPM3 is an example of a model or framework for helping
organization improve their processes and systems.
a) Benchmarking
b) Six Sigma
c) Maturity
d) Quality
73. Which of the following is not part of project human resource management?
a) Resource estimating
b) Acquiring the project team
c) Developing the project team
d) Managing the project team
74.____________ causes people to participate in an activity for their own enjoyment.
a) Intrinsic motivation
b) Extrinsic motivation
c) Self motivation
d) Social motivation
75. At the bottom of Maslow‟s pyramid or hierarchy of needs are_________ needs.
a) Self – actualization
b) Esteem
c) Safety
d) Physiological
Examination Paper of Project Management Certification
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IIB M Institute of Business Management
76._________ power is based on a person‟s individual charisma.
a) Affiliation
b) Referent
c) Personality
d) Legitimate
77. What technique can you use to resolve resource conflicts by delaying tasks?
a) Resource loading
b) Resource leveling
c) Critical path analysis
d) Over allocation
78. Which of the following is not a tool or technique for managing project team?
a) Observation and conversation
b) Project performance appraisals
c) Issue logs
d) Social Styles Profile
79. What do many experts agree is the greatest threat to the success of any project?
a) Lack of proper funding
b) A failure to communicate
c) Poor listening skills
d) Inadequate staffing
80. Which communication skill is most important for information technology professionals for
career advancement?
a) Writing
b) Listening
c) Speaking
d) Using communication technologies
81. Which of the following is not a process in project communication management?
a) Information planning
b) Information distribution
c) Performance reporting
d) Managing stakeholders
82. A building may not be constructed unless the planning permission for it has been obtained, this
is the.
a) Legal constraint
b) Quality constraint
c) Cost constraint
d) Logic constraint
83. A__________ report describes where the project stands at a specific point in time.
a) Status
b) Performance
c) Forecast
d) Earned value
84.____________ is an uncertainly that can have a negative or positive effect on meeting
project objectives.
Examination Paper of Project Management Certification
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IIB M Institute of Business Management
a) Risk utility
b) Risk tolerance
c) Risk management
d) Risk
85. A person who is a risk -________receives greater satisfaction when more payoffs is at
stake and is willing to pay a penalty to take risks.
a) Averse
b) Seeking
c) Neutral
d) Aware
86. Which risk management process involves prioritizing based on their probability and impact
of occurrence?
a) Risk management planning
b) Risk identification
c) Qualitative risk analysis
d) Quantitative risk analysis
87. The 7-S framework of project management issues was promoted by____________
a) McJonald and Co.
b) McKinsly and Co.
c) J & K Co.
d) None
88. Your project involves using a new release of a software application, but if that release is not
available, your team has__________ plans to use the current release.
a) Contingency
b) Fallback
c) Reserve
d) Mitigation
89. A risk__________ is a document that contains results of various risk management
processes, often displayed in a table or spreadsheet format.
a) Management plan
b) Register
c) Breakdown structure
d) Probability / impact matrix
90. Your project team has decided not to use an upcoming release of software because it might
cause your schedule to slip. Which negative risk response strategy are you using?
a) Avoidance
b) Acceptance
c) Transference
d) Mitigation
91. For non critical activities, network diagrams build in __________ at the start of activities.
a) Temporary
b) Buffer
c) Slack
d) Anywhere
Examination Paper of Project Management Certification
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IIB M Institute of Business Management
92. If a project being undertaken by a particular project team, then these are referred as________
a) Resource capability
b) Resource capacity
c) Resource calendar
d) Resource pool
93. The term ‘hedgehog syndrome’ means_______
a) Management problem
b) Solving problem
c) Repetition of problem
d) Find out a problem
94. What is the first procurement process?
a) Planning contracting
b) Planning purchasing and acquisitions
c) Requesting seller responses
d) Procurement management planning
95. The_________ is the point at which the contractor assumes total responsibility for each
additional dollar of contract cost.
a) A breakeven point
b) Share ratio point
c) Point of reconciliation
d) Point of total assumption
96. We‟re standing on this hill here. We want to be on that hill over there, this is________
a) View
b) Vision
c) Mission
d) Aim
97. A_________ is a document prepared by a seller when there are different approaches for meeting
buyer needs.
a) RFP
b) RFQ
c) Proposal
d) Quote
98. Buyers often prepare a list when selecting a seller to make this __________ process
more manageable.
a) Preferred
b) Short
c) Qualified suppliers
d) BAFO
99. A proposal evaluation sheet is an example of a (n).
a) RFP
b) NPV analysis
c) Earned value analysis
d) Weighted scoring model
Examination Paper of Project Management Certification
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IIB M Institute of Business Management
100. is a term used to describe various procurement functions that are
now done electronically.
a) E – procurement
b) eBay
c) E – commerce
d) EMV
S-2-200314


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Principles & Practices of Banking
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 & Part Two carries 4 marks each.
Part One:
Multiple Choices:
1. Frequency of First Tranche Returns is:
a. Weekly
b. Monthly
c. Monthly/quarterly
d. Monthly/quarterly/half-yearly
2. An order for winding up a banking company can be issued by___________
a. The High Court
b. The RBI
c. The Central Government
d. The Supreme court
3. Who shall be natural guardian in case of married minor girl?
a. Father
b. Brother in law
c. Father-in-law
d. Husband
4. X a partner in the firm XYZ Co. wants to open a Bank account in the firm‟s name. It will require
signatures of:
a. All partners
b. Any one of the partner
c. Managing partner only
d. Sleeping partner not required
5. Public limited companies should have minimum shareholders, before Opening Bank account.
a. 11
b. 7
c. 5
d. 15
6. If the beneficiary is government then the Expiry of guarantee is governed by the „law of
limitation‟ ranging from 3 years to
a. 15 years
b. 30 years
Examination Paper of Banking & Financial Services Management
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IIBM Institute of Business Management
c. 20 years
d. 10 years
7. Charge created on LIC Policy is
a. Lien
b. Hypothecation
c. Pledge
d. Assignment
8. The device that combines the parallel input data into single serial output data is known as
a. Switcher
b. Multiplexer
c. Encoder
d. Front end processor
9. In market skimming pricing strategy:
a. Initially price is lower and then it is increased
b. Initial price is high and is maintained high
c. Initial price is low and is maintained low
d. Initially price is higher and then it is reduced
10. The marketing personnel need information _________intervals.
a. At yearly
b. At quarterly
c. At monthly
d. On a continuous basis and regular
Part Two:
1. Discuss the role of RBI in Indian Banking sector.
2. Write short notes on:
a. Repo Rate
b. Reverse Repo Rate.
3. Write short notes on:
a. Bank Lien
b. Right of set off
4. What is cash credit means?
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 200 to 250 words).
END OF SECTION A
Examination Paper of Banking & Financial Services Management
3
IIBM Institute of Business Management
Caselet 1
There is a lacuna in the present T-Bill auction system of RBI. The dealers (investors) are subject to
what is called the „Winners Curse‟. The value of a T-Bill to a dealer is the price it can fetch in the
secondary market. This is an unobserved random value, which is likely to be common to all dealers.
It is quite unlike the works of art which the Sotheby‟s would place at an auction. The price of Mona
Lisa, say, to an avid collector of Da Vinci‟s paintings, would be more than what a Picasso collector
would value it. In sharp contrast, market participants are likely to agree on the price of a T-Bill in the
secondary market. Now winning an auction in a discriminatory price method may not be profitable.
For, it would mean that the winner has overestimated the T-Bill value.
Questions:
1. How does the winner in such an auction become the loser due to the „winner curse‟?
2. Explain the role of primary dealers in the money market.
Caselet 2
In a bid to familiarize banks, exporters and other financial bodies with „Forfeiting‟, the State Bank of
India (SBI) will soon be setting up a three-man cell at its international division in Mumbai for
advisory purposes. According to Mr. D. Ian Guild, Senior Advisor, Forfeiting & Syndications
Group, Standard Bank, the cell was being set up after a series of meetings with the bank, and is
essentially aimed at spreading the message of Forfeiting as an effective trade financing mechanism
to increase exports. Suggesting that forfeiting was the ideal springboard for effecting a quantum
jump in exports in the medium-term, Mr. Guild said he was confident of aggregating forfeiting
business of $100 millions in 1998 and $250 millions in 1999 in the country. Since its introduction in
1992, Exim Bank had facilitated 69 forfeiting transactions valued at around $75 millions, with credit
periods ranging between 90 days and seven years, and covering the export of goods ranging from
textiles to plant and machinery. The RBI has now permitted all commercial banks to act as
facilitators for forfeiting transactions. Mr. Guild pointed out that forfeiting has not really taken off in
India because exporters and commercial banks lacked the knowledge of the mechanics of the
scheme. In India, the real challenge would be to motivate small and medium exporters to use the
forfeiting route for exports to countries which may not be able to buy on cash terms. Mr. S.
Bhattacharya, deputy general manager, Exim Bank, Calcutta, said: “Payment defaults by overseas
buyers were an integral part of cross-border business and export credit insurance has not been a
comprehensive answer to this problem”. Forfeiting offered an alternative solution, especially to
exporters wishing to penetrate difficult markets for the first time, he pointed out. Some of the top
international forfeiters in the world have stopped accepting forfeiting documents involving Pakistan
and Russia, according to Mr. Amitabh Mehta, Trader and Originator, Forfeiting and Syndications
group, Standard Bank London Ltd. (SBLL). According to Mr. Mehta, forfeiting transactions
involving Pakistan could not be carried out due to poor performance of the banks there. In addition,
the financial status of Pakistan following the nuclear blasts has made it impossible to carry out the
transactions. Similarly, transactions with Russia are being totally rejected by forfeiting due to the
current economic turmoil. Joining the list with Pakistan and Russia are Iraq, Sudan and Nigeria, he
added. Commenting on the Indian situation, Mr. Mehta said, “With its sound banking system, the
country is well placed in the international scene. In fact, there is tremendous potential for forfeiting
in the years to come,” he said. According to him, even after the nuclear tests conducted by India, the
top forfeiters were not worried and continued to accept forfeiting papers to be transacted with India.
Examination Paper of Banking & Financial Services Management
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IIBM Institute of Business Management
Questions:
1. Discuss the mechanism of forfeiting and the role played by banks in forfeiting transactions.
2. How does forfeiting differ from factoring?
Section C: Applied Theory (30 marks)
 This section consists Long Questions.
 Answer all the questions.
 Each question carries 15 marks.
 Detailed information should form the part of your answer (Word limit 150 to 200 words).
1. What are the various approaches to capital adequacy? Explain Basel II norms and minimum
capital requirements in Basel II norms.
2. What do you mean by non Performing Assets (NPA)? How have NPAs affected financial health
of Indian commercial banks?
END OF SECTION B
END OF SECTION C
Examination Paper of Banking & Financial Services Management
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IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Financial Services
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 & Part Two carries 5 marks each.
Part One:
Multiple Choices:
1. NBFS stands for ___________
2. ALCO is a decision making unit responsible for balance sheet planning from risk return
perspective. (T/F)
3. A contract of „Indemnity‟ is one whereby:
a. A person tries to use the other‟s property
b. A person promises to save the other‟s property from loss caused.
c. A person tries to trick the property of other for some other person.
d. None
4. The transaction between the lessor and the lessee being a demand sale is called__________
a. First sale
b. Second sale
c. Third sale
d. Fourth sale
5. Which of the following is comes under mutual funds?
Open-end funds
Closed-end funds
Both (a) & (b)
None
6. Concept of leasing involves:
a. Lessor
b. Lessee
c. None
d. All
7. CRISIL stands for____________
8. ____________are issued by the government for period ranging from 14 days to 364 days
through regular auctions.
a. Treasury Bills
b. Commercial Papers
Examination Paper of Banking & Financial Services Management
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IIBM Institute of Business Management
c. Call Money Market
d. None
9. The practice of discounting accommodation bills is known as _____________
10. HUDCO stands for _____________
Part Two:
1. Explain about SEBI guidelines to merchant bankers.
2. List the different types of Factoring.
3. Write a short note on venture capital in India.
4. Write a short note on Depositories.
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 200 to 250 words).
Caselet 1
Sunlight Industries Ltd manages its accounts receivables internally by its sales and credit
department. The cost of sales ledger administration stands at Rs 9 crore annually. It supplies
chemicals to heavy industries. These chemicals are used as raw material for further use of are
directly sold to industrial units for consumption. There is good demand for both the types of uses.
For the direct consumers, the company has a credit policy of 2/10, net 30. Past experience of the
company has been that on average 40 per cent of the customers avail of the discount while the
balance of the receivables are collected on average 75 days after the invoice date. Sunlight Industries
also has small dealer networks that sell the chemicals. Bad debts of the company are currently 1.5
per cent of total sales.
Sunlight Industries finances its investment in debtors through a mix of bank credit and own longterm
funds in the ratio of 60:40. The current cost of bank credit and long-term funds are 12 per cent
and 15 per cent respectively.
There has been a consistent rise in the sales of the company due to its proactive measures in cost
reduction and maintaining good relations with dealers and customers. The projected sales for the
next year are Rs 800 crore, up 15 per cent from last year. Gross profiles have been maintained at a
healthy 22 per cent over the years and are expected to continue in future.
With escalating cost associated with the in-house management of debtors coupled with the need
to unburden the management with the task so as to focus on sales promotion, the CEO of Sunlight
Industries is examining the possibility of outsourcing its factoring service for managing its
END OF SECTION A
Examination Paper of Banking & Financial Services Management
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IIBM Institute of Business Management
receivables. He assigns the responsibility of Anita Guha, the CFO of Sunlight. Two proposals, the
details of which are given below, are available for Anita‟s consideration.
Proposal from Canbank Factors Ltd: The main elements of the proposal are: (i) Guaranteed
payment within 30 days (i) Advance, 88 per cent and 84 per cent for the resource and non-recourse
arrangements respectively (iii) discount charge in advance, 21 per cent for with resource and 22 per
cent without resource (iv) Commission, 4.5 per cent without resources 2.5 per cent and with
resource.
Proposal from Indbank Factors: (i) Guaranteed payment within 30 days (ii) Advance, 84 per cent
with resource and 80 per cent without resource (iii) Discount charge upfront, without resource 21 per
cent and with resource, 20 per cent and (iv) Commission upfront, without resource 3.6 per cent and
with resource 1.8 per cent.
The opinion of the Chief Marketing Manager is that in the context of the factoring arrangement,
his staff would be able to exclusively focus on sales promotion which would result in additional
sales of Rs 75 crore.
Required The CFO of Sunlight Industries seeks your advice as a financial consultants on the
alternative proposals. What advice would you give? Why? Calculations can be upto one digit only.
Caselet 2
Following are the financial statements for A Ltd and T Ltd for the current financial year. Both firms
operate in the same industry.
BALANCE SHEETS
Particulars Firm A Firm B
Total current assets Rs 14,00,000 Rs 10,00,000
Total fixed assets (net) 10,00,000 5,00,000
_____________ __________
Total assets 24,00,000 15,00,000
_____________ ___________
Equity capital (of Rs 10 each) 10,00,000 8,00,000
Retained earnings 2,00,000 _
14% Long-term debt 5,00,000 3,00,000
Total current liabilities 7,00,000 4,00,000
_____________ ___________
24,00,000 15,00,000
INCOME STATEMENTS
Net sales Rs 34,50,000 Rs 17,00,000
Cost of goods sold 27,60,000 13,60,000
__________ ___________
Gross profit 6,90,000 3,40,000
Operating expenses 2,96,923 1,45,692
Interest 70,000 42,000
__________ ___________
Earnings before taxes (EBT) 3,23,077 1,52,308
Taxes (0.35) 1,13,077 53,308
Earnings after taxes (EAT) 2,10,000 99,000
Examination Paper of Banking & Financial Services Management
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IIBM Institute of Business Management
Additional information: __________________________________
Number of equity shares 1,00,000 80,000
Dividend payment (D/P) ratio 0.40 0.60
Market price per share (MPS) Rs 40 Rs 15
__________________________________
Assume that the two firms are in the process of negotiating a merger through an exchange of equity
shares. You have been asked to assist in establishing equitable exchange terms, and are required to:
(i) Decompose the share prices of both the companies into EPS and P/E components, and also segregate
their EPS figures into return on equity (ROE) and book value of intrinsic value per share (BVPS)
components.
(ii) Estimate future EPS growth rates for each firm.
(iii) Based on expected operating synergies, A Ltd estimates that the intrinsic value of T‟s equity share
would be Rs 20 per share on its acquisition. You are required to develop a range of justifiable equity
share exchange ratios that can be offered by A Ltd‟s shareholders. Based on your analysis in parts (i)
and (ii), would you expect the negotiated terms to be closer to the upper, or the lower exchange ratio
limits? Why?
(iv) Calculate the post-merger EPS based on an exchange ratio of 0.4 : 1 being offered by A Ltd. Indicate
the immediate EPS accretion or dilution, if any, that will occur for each group of shareholders.
(v) Based on a 0.4 :1 exchange ratio, and assuming that A‟s pre-merger P/E ratio will continue after the
merger, estimate the post-merger market price. Show the resulting accretion or dilution in pre-merger
market prices.
Section C: Applied Theory (30 marks)
 This section consists of Long Questions.
 Answer all the questions.
 Each question carries 15 marks.
 Detailed information should form the part of your answer (Word limit 150 to 200 words).
1. What do you mean by money market? Discuss money market instruments in detail.
2. What is leasing? Explain about the advantages and disadvantages of lease finance.
S-2-300813
END OF SECTION B
END OF SECTION C


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Digital Marketing Professional
Guidelines for paper
 Total No. of Question is 100.
 The minimum passing mark is 40%.
 Each Question carries 1 mark.
 Answer all the Questions.
Multiple Choices:
1. The First Form of Mass-Media advertising was born in_______
a) 17th Century
b) 18th Century
c) 20th Century
d) 19th Century
2. Which one is the new and latest force of the advertising?
a) Radio
b) Internet
c) Newspaper
d) Television
3. Printing press, radio, television and internet are all examples of:
a) Major breakthroughs in technology
b) Digital Marketing
c) Global communication
d) None of these
4. ARPA Stand for_____________
a) Advanced report project agency
b) Advanced research project agency
c) Advanced report packet agency
d) None of these
5. The conversion of an analogue signal to a digital format is called__________
a) Decoding
b) Embedded Format
c) Emoticons
d) Encoding
6. What is the full form of W3C?
a) World Wild Web computer
b) World Wide Web consortium
c) World West Web computer
d) World Wide Web communicated
7. Advertising that is targeted to the content on the web page being viewed by a user at that specific time
is called______
a) Contextual Advertising
Examination Paper of Digital Marketing Professional
IIBM Institute of Business Management 2
b) Content Advertising
c) Conversion Advertising
d) Commission Advertising
8. Which of the following is not come under Four Ps of product?
a) Place
b) People
c) Price
d) Promotion
9. Search engine optimization (SEO) is related to_________
a) Promotion
b) Process
c) Product
d) None of these
10. “Small opportunities are after the beginning of great enterprise” is written by_________
a) Kathy Ireland
b) Jeff Bezos
c) Demosthenes
d) All of the above
11. Making sure everything works the way, it should before you let it out is known as___________
a) Designing
b) Testing
c) Planning
d) Developing
12. Every website on the Internet has a unique address is called_________
a) Domain Name
b) Numeric address
c) IP address
d) All of the above
13. Which of the following is most common and cheapest form of hosting?
a) Virtual dedicated hosting
b) Shared hosting
c) Dedicated hosting
d) Cloud-based hosting
14. Write down the full name of SERP_______
15. In the header section of the code on each of your web pages known as_______
a) Link
b) Body
c) Tag
d) Title
16. Which type of links are reside on pages that do not belong to your domain?
a) External
b) Internal
c) Internal/External
d) None of these
Examination Paper of Digital Marketing Professional
IIBM Institute of Business Management 3
17. IAB Stand for_________
18. A page with no meaningful content that is full of ads and the webmaster makes money from if someone
Clicks on them is called_________
a) Cloaking
b) Doorway page
c) Spam page
d) Interlinking
19. What is the second method of page Tagging?
a) Process
b) Developing
c) Designing
d) None of these
20. Every Transaction your web server makes is recorded in:
a) User file
b) Log file
c) Page tags
d) All of these
21. What is the full form of KPI________
a) Key process indicator
b) Key present indicator
c) Key performance indicator
d) Key Prospective identity
22. Which version produces the best result when two different version running of an ads or a page and
measuring the result to identity?
a) Testing
b) Tweaking
c) Investing
d) A/B split testing
23. Putting the theory into practice means:
a) Taking intelligence gleaned
b) Taking advertising creative
c) Taking Decisive action
d) Taking measurable action
24. “The new information technology internet and e-mail have practically eliminated the physical costs of
communication” said by________
a) Sims Jenkins
b) Signal vs noise
c) Matt Lindermann
d) Peter Drucker
25. Which marketing is the most powerful element in your digital marketing toolbox?
a) Digital Marketing
b) Direct Marketing
c) E-mail Marketing
d) Personal Marketing
Examination Paper of Digital Marketing Professional
IIBM Institute of Business Management 4
26. Fusion of marketing savvy and imagination copy is related to_________
a) Promotional Marketing
b) E-mail Marketing
c) Digital Marketing
d) None of these
27. Write down the full name of CAN-SPAM act________
28. Software and service that allow users to come together online and exchange, discuss, communication in
any form of social interaction is:
a) Social Paradigm
b) User Interface
c) E-mail
d) Social Media
29. The main problem with A/B split Testing is that ___________
a) You can use it to test variances of a single page element at a time
b) Double page element at a time
c) More than 2 page element at a time
d) All of the above
30. Personal interaction, creating, exchanging and sharing they all are different form of__________
a) Social Book marketing
b) Social media
c) Social paradigm
d) None of these
31. Which of the following is social media submission site?
a) www.digg.com
b) www.reddit.com
c) www.stumbleupon.com
d) All of the above
32. A series of digital media files (Audio or video) distributed over the internet is known as________
a) Blogs
b) Podcasts
c) Micro Blogging
d) Wikis
33. What is the essentially a short-message broadcast service that lets people keep people up to data via
short, public text posts upto 140 characters?
a) Facebook
b) SMS
c) Twitter
d) Linkedln
34. Online collection of web pages that are literally open for anyone to create, edit, discuss, comment on
and generally contribute to is:
a) Micro Blogging
b) Social media dash board
c) Wikis
d) None of these
Examination Paper of Digital Marketing Professional
IIBM Institute of Business Management 5
35. In which year the Chartered Institute of Public relation is define online PR (Public Relation) relations?
a) 2009
b) 2008
c) 2007
d) 2006
36. The process whereby a brand site, attracts customers by recording a third party for promoting their
Products and driving converting traffic website is called_________
a) Digital Marketing
b) Affiliate Marketing
c) E-mail Marketing
d) Strategic partnership
37. _______ the amount paid by an advertising for a click on their sponsored search listing.
a) Cost per action
b) Cost per acquisition
c) Cost per click
d) Cost per mille
38. The consumer performs the desired action on the merchant’s site, and a small piece of embedded code
on the merchant’s site inform the___________
a) Affiliate Marketing
b) Affiliate Network
c) Affiliate Site
d) None of these
39. Online Advertising content that appears over the top of the web page is called_________
a) Organic search results
b) Overlay
c) Opt-out
d) Opt-in
40. A computer file format that compresses audio files up to a factor of 12 from a wav file is known
as_________
a) MP3
b) MISSAN
c) MPEG
d) MPU
41. ___________ is a set of practices that enable organizations to communicate and engage with their
audience in an interactive and relevant manner through any mobile device or network.
a) Mobile Marketing
b) E-mail Marketing
c) Digital Marketing
d) All of the above
42. Which Advertising is now recognized as an opportunity for brands, advertisers and publishers to
engage consumers in a targeted and contextual manner?
a) Radio advertising
b) News paper advertising
c) Mobile advertising
d) Television advertising
Examination Paper of Digital Marketing Professional
IIBM Institute of Business Management 6
43. Which of the following language is used by many Internet application for exchanging information:
a) HTML
b) XHTML
c) XML
d) JAVA
44. Which is the example of popular Key performance Indicator (KPIs) for mobile campaigns?
a) Total downloads
b) Total Application user
c) Frequency and duration visit
d) All of these
45. Write down the full form of GPS__________
46. Which one of the company was launched its first play station back in 1995?
a) Apple
b) Nokia
c) Sony
d) Blackberry
47. In which year the first advertising agency, set up in Boston?
a) In 1855
b) In 1847
c) In 1843
d) In 1850
48. In 1983 which one started using TCP/IP protocol?
a) W3C
b) DNS
c) DARPA
d) ARPA NET
49. The first web page on the Internet was built at________
a) TCP
b) CERN
c) ARPA
d) All of the above
50. Who are becoming better informed, better connected, more communicative in the market?
a) Buyers
b) Customer
c) Consumers
d) None of these
51. Which Technology become more ubiquitous in people lives that consumers can satisfy their need more
quickly, more easily and with fewer barriers?
a) Advance Technology
b) Digital Technology
c) Both (a) & (b)
d) None of these
52. ___________ Technology that allows the use of a broadband internet connection to make telephone
Examination Paper of Digital Marketing Professional
IIBM Institute of Business Management 7
calls.
a) Video on demand
b) Virtual mobile network operator
c) Wireless application protocol
d) Voice over internet protocol
53. Who is the most important element in any form of marketing?
a) People
b) Customer
c) Seller
d) Consumer
54. Press releases, articles syndication and blogs they all are related to which channels?
a) Personal Channels
b) Offline Channels
c) Online Channels
d) None of these
55. Everything you do, online and offline, to get your product in front of your prospects is called_______
a) Promotion
b) Influencing
c) Advertising
d) All of the above
56. What is the first step of building your websites?
a) Testing
b) Design
c) Planning
d) Development
57. The process of designing your website to be equally accessible to everyone, in relation to the web is:
a) Usability
b) Accessibility
c) W3C & web standards
d) None of the above
58. You can buy multiple domain names is true or false.
a) True
b) False
59. Which of the following have ability to connect to the internet wirelessly?
a) Wi-Fi
b) Wiki
c) Web 2.0
d) Wilfing
60. The difference between effective web writing and effective print writing reflect the nature of:
a) People
b) Web designers
c) Both (a) & (b)
d) Audience
61. “Learning is the beginning of wealth, health and spirituality” this is said by________
Examination Paper of Digital Marketing Professional
IIBM Institute of Business Management 8
a) William Randolph Hearst
b) Marissa Mayer
c) Jim Rohn
d) None of these
62. Process a huge volume of searchers, scanning billions of items and delivering pages of relevant, ranked
results in a fraction is:
a) Engines
b) Browser
c) Search Engines
d) Scouring the web
63. Which of the following is not a traditional marketing channels ________
a) Commercial television
b) Radio
c) Print Publication
d) Yahoo
64. Short-tail Keyword is simple and very general in nature is:
a) True
b) False
65. Which type of tail keyword have more complex and more specific in nature?
a) Short- tail
b) Long-tail
c) Medium- tail
d) All of these
66. If you take it literally, encompasses everything on your website is called_______
a) Search results
b) Context
c) Content
d) Spiders
67. _________ is a technique that uses code to show one search engine friendly page to the spiders, and a
completely different page to a human visitor.
a) Cloaking
b) Interlinking
c) Keyword stuffing
d) Invisible Text
68. Your log files capture visits by search engines spiders and other automated bots as well as________
a) Analytics Software
b) Machines
c) Human user
d) All of these
69. ___________ will work even if you can’t access your web server logs?
a) Logs files
b) Page Tagging
c) Both (a) & (b)
d) None of these
Examination Paper of Digital Marketing Professional
IIBM Institute of Business Management 9
70. Junk paper mail become_______
a) Junk virtual mail
b) Junk business mail
c) Junk mail
d) Virtual mail
71. A host computer which maintains websites, newsgroup and e-mail service is known as_________
a) Session
b) Server
c) Simulcast
d) Skyscraper
72. When a legitimate E-mail is blocked by a spam filter is known as:
a) False Positive
b) True Positive
c) Tricky Proposition
d) None of these
73. Which one of the following is one of the most important steps in writing E-mail?
a) Creating Copy
b) Great subject line
c) Crafting the e-mail subject line
d) Ambiguous e-mail
74. To grab the attention to the audience in your e-mail which one of the option is best?
a) Point to point
b) Briefly
c) Interesting
d) All of the above
75. E-mail are delivered to the people on your list is another crucial element in your_________
a) E-mail marketing
b) Digital Marketing
c) Direct Marketing
d) Both (a) & (b)
76. __________ is that you deliver your message directly to an individual who actually wants to hear from
you.
a) Direct Marketing
b) E-mail Marketing
c) Digital Marketing
d) None of these
77. __________ is umbrella term for web based software and service.
a) Social Media
b) Social Media Submission
c) Social Bookmarking
d) None of these
78. People who are most active in social media circles will be the element of your target market can be
classified as________
a) Influencers
b) Influence
Examination Paper of Digital Marketing Professional
IIBM Institute of Business Management 10
c) Listener
d) All of these
79. Social bookmarking site is known as_______
a) www.delicious.com
b) www.ma.gnolia.com
c) Both (a) & (b)
d) None of these
80. What is the main work of review and rating sites?
a) Allow user to review and rate companies
b) Allow user to show the status of the companies
c) Allow user to give suggestion
d) Allow user to view the status
81. Facebook, Linkedlns, Google these all are comes under_______
a) Social Network Sites
b) Social Media Sites
c) Media sharing Sites
d) Forums and Discussion Sites
82. People all over the world are using blogs to______
a) Report Local News
b) Offer their opinion
c) Share their experience
d) All of these
83. Which of the following content is available to both media professionals and consumers?
a) PR
b) CRM
c) Both (a) & (b)
d) None of these
84. What is the right way of getting prominent, newsworthy stories about your product, brand or company?
a) Online Press release
b) Offline press release
c) Offline Equivalent
d) Standard Press release
85. Your headline and first paragraph should capture reader’s_________
a) Attention
b) Interest
c) Views
d) Suggestion
86. Who are working in affiliate Marketing?
a) Brand/Seller
b) Affiliate
c) Customer
d) all of these
87. The companies who want their product and services advertising on the interest and are trying to attract
new business called_______
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IIBM Institute of Business Management 11
a) The Affiliate
b) The Merchants
c) The Consumers
d) The Customers
88. __________ is refers to that free brand exposure free as merchant only pay for action.
a) Affiliate marketing
b) Digital Marketing
c) Strategic Marketing
d) None of these
89. Innovation and human desire for something newer and better are driving the rapid evolution of:
a) Laptop
b) Tablet
c) Mobile Device
d) Radio
90. Mobile gaming has been described as the wide-open battle ground of the:
a) Professional Industry
b) Application Industry
c) Entertainment Industry
d) All of these
91. For mobile marketing to work, consumers need to have confidence that their privacy will be________
a) Well crafted
b) Imaginative
c) Entertaining
d) Protected
92. Lots of energy and investment currently flowing into_______
a) Mobile cloud
b) Mobile data
c) Mobile Privacy
d) Mobile Apps
93. Technology has enhanced the process of refining the_________
a) Brand & quality
b) Products & brand
c) Products & Service
d) Quality & Quantity
94. What type of Marketing, Uniquely allows us to both broaden our scope and narrow our focus at the
same time_________
a) Digital Marketing
b) E-mail Marketing
c) Direct Marketing
d) All of these
95. Which one of the following is used for exchanging SMS messages.
a) SMPP
b) SMSC
c) SMS
d) SIM
Examination Paper of Digital Marketing Professional
IIBM Institute of Business Management 12
96. The Technology that allows user to store video content on their computer for viewing at a later date is
known as________
a) Deep-linking
b) Uploading
c) Downloading
d) None of these
97. Web design software that creates animation interactive elements and quick to download is:
a) Flash
b) Coral
c) Photoshop
d) Flash Impression
98. A group of computer connected together which are at one physical location is.
a) MAN
b) LAN
c) WAN
d) Link
99. The area where an Advertising is displayed/placed within a publisher’s mobile content is:
a) Placement
b) Podcasting
c) Pharming
d) Phishing
100. When a user makes a purchase from online advertiser is called______
a) Buy
b) Sale house
c) Sale
d) Both (a) & (c)
S-2-250114


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Hospital Administration
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 and Part Two carries 5 marks each. 
Part One:
Multiple forms:
1. Low growth low market share products are termed as___________
a. Stars
b. Cash cows
c. Dogs
d. None
2. To improve organizational performance „Alfred Sloan‟ introduced „3S term‟ as doctrine of
strategy, structure and?
a. System
b. Solution
c. Share
d. None
3. Overburdening may occur due to too many group members seeking out an individual for
information and assistance, a solution to such problem is_____________
a. Linear organization
b. Circular organization
c. Elliptical organization
d. None
4. NHS stands for_________________
5. ICU in medication stands for Internal cure union.(T/F)
6. There are 4 levels of strategic consensus that have been identified among the managers, one level
in which managers are informed about the strategy but they are not willing to act is
called___________
a. Blind devotion
b. Informed scepticism
c. Weak consensus
d. None
7. OCB stands for Organization citizenship behavior.(T/F)
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IIBM Institute of Business Management
Examination Paper of Health & Hospital Management
8. BPR stands business process re enforcement.(T/F)
9. The best way to avoid conflict and there by preserve relationship with in the health care
organization is____________
a. Spiral of silence
b. Web of solution
c. Web of solution
d. None
10. IPE stands for inter disciplinary education.(T/F)
Part Two:
1. Discuss the Managerial issues in Disaster Management?
2. What do you understand by the Outpatient Department (OPD)?
3. Write a short note on Quality Assurance in a Hospital?
4. Briefly describe the importance and functions of Housekeeping department in the Hospital?
END OF SECTION A
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 200 to 250 words). 
Caselet 1
CULTURAL BELIEFS
An organization‟s culture can be studied at three levels: artefacts, values and assumptions. Artefacts
are the organizational structures that are visible to the members of the organization. Values are the
strategies, goals and philosophies of the organization‟s members. The basic, underlying assumptions
of group members include taken-for-granted beliefs, perceptions, thoughts and feelings. Even though
certain basic assumptions are evident, taken for granted and are not normally confronted or debated,
the culture of the organization will become evident at the level of observable artefacts and in the
shared values, norms and rules of behavior of the organization‟s member. Group norms are sets of
shared values that have been valedated through a consensus process. The social validation of group
norms arises when certain values are confirmed by the shared experiences of the group and these
norms are passed onto new members as being the correct way to do things. This mechanism of
embedding and meshing culture is undertaken at an unconscious level in most organizations.
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IIBM Institute of Business Management
Examination Paper of Health & Hospital Management
Although culture resides in the minds of the members of the organization, it is transmitted through
visible expressions, such as formal and informal routines and everyday rituals of existence undertaken
by members of the organization. Over time, shared experiences develop into a set of core values that
become embedded in individual and organizational philosophy and ideology that ultimately serves to
guide action and behavior. This process is an important mechanism in the transmission of shared
professional assumptions, values, artefacts and symbols from the master to the student and in the
development of the socialization process that professional clinicians undergo. Therefore, the internal
orientation of employees is based primarily on the culture, values, beliefs, ethics and assumptions of
the organization‟s staff; this is particularly evident amongst health service employees, although the
orientation may differ between clinicians and non-clinicians.
1. Why according to you Artefacts are essential for the development of an organization‟s culture?
2. Elaborate the cultural beliefs of your company?
Caselet 2
There are many ways of managing change. Few organizational changes are complete failures, and
few are entirely successful. The management of change draws from psychological, behavioral,
political, social and culture dimensions, many of which may be conflicting. A realization that change
is the result of competition between driving and restraining forces is evident in much of the literature.
Lewin noted some forces drive change whilst others resist change. A change agent is required to
fecilitate change, to manage the restraining forces, and to drive change through. The change is
required to understand change as a phenomenon, identify the key emotional reactions associated with
change, such as resistance, and know how to manage change in a positive manner. Kotter contends
that both leadership and management skills are required to effectively and positively manage change,
particularly in a volatile environment. He further argues that the change process is deductive; it is
about managing complexity and is often undertaken in order to prevent a more chaotic reality than
that presently in force. If change is approached with a certain level of excitement and enthusiasm, it
will create opportunities that will make patients lives better. However, change is often introduced
without due regard for the realities of individual areas of health care practice. Some managers may
not have an insight into the effect of the change on the lives of individuals or realizations that even
minor change may have unintended consequences for the individual and the organization. Most
resistance to change occurs not because of the proposed change, but as a result of individual
perceptions of expected outcomes due to the change and on how this is likely to impact on their lives.
Therefore, an accurate assessment of the environment, both internal and external to the organization,
is required prior to the change, thus preventing negative consequences for individuals.
1. Why there is a need of change?
2. With reference to your company, what changes you prefer?
END OF SECTION B
Section C: Applied Theory (30 marks)
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IIBM Institute of Business Management
Examination Paper of Health & Hospital Management
 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 150 to 200 words). 


1. What do you mean by Emergency Department Planning? How would you explain the managerial
issues in Emergency department?
2. Write a short note on the following terms:
1) Central Sterile Supply Department (CSSD)
2) Total Quality Management in Health Care
3) Medical Audit and its Administration
END OF SECTION C
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IIBM Institute of Business Management
Examination Paper of Health & Hospital Management
IIBM Institute of Business Management
Examination Paper MM.100
Hospital Care
Section A: Objective Type & Short Questions (30 marks)
 This section consists of Multiple Choi  ces and Short Not type Questions. 
 Answer all the questions. 
 Part One carries 1 mark each and Part Two carries 5 marks each. 
Part One:
Multiple Choices:
1. A method of collaborative work in which visual display of information on flip charts or other
media to which other group member can use is__________
a. Decision matrices
b. Multivoting
c. Boarding
d. Brainstorming
2. A tool for Data collection which summarise perception of a large sample of people
is___________
a. Surveys
b. Interviews
c. Check sheet
d. Data sheets
3. Members of Inspection control committee_________
a. Microbiologist, O.T. incharge, Medical Superintendent
b. Representative from Nursing Service, CSSD in charge, Representative from major clinical
department
c. Both (a) & (b)
d. None of the above
4. MRD stands for___________
a. Medical Records Department
b. Medicine Records Department
c. Medicine Release Department
d. None of the above
5. Format for appraisal in which rank order is establish of employees based on their relative
merit_________
a. Forced Distribution Technique
b. Graphic Rating Scale
c. Ranking methods
d. Free Written Ratings
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IIBM Institute of Business Management
Examination Paper of Health & Hospital Management
6. Analytical technique in Materials Management in which all items in inventory on the basis of
annual usuage time cost is________
a. FSN Analysis
b. ABC Analysis
c. VED Analysis
d. None of the above
7. Planning tool used in Quality Management in which the items are written on individual cards and
displayed on a flip chart__________
a. Relations Diagram
b. Process Decision Program chart
c. Affinity Diagram
d. Activity Network Diagram
8. Method of filing of Medical records in which involves filing of records in exact chronological
order according to unit / serial number___________
a. Middle Digit filing
b. Terminal Digit filing
c. Straight Numeric filing
d. None of the above
9. Type of hospital in which the number of beds is over 300 beds is known as___________
a. Large hospital
b. Medium sized hospital
c. Small hospital
d. None of the above
10. Meeting in hospital whose purpose is to pass on information received from agencies is_________
a. Informative Meeting
b. Consultative Meeting
c. Executive Meeting
d. None of the above
Part Two:
1. What are the factors affecting “Retraining” in a hospital?
2. Write a short note on Finance in Hospitals?
3. Describe the Negotiating system for Hospitals rates?
4. Write down the different members of Appointment committee of the hospital?
END OF SECTION A
Section B: Caselets (40 marks)
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IIBM Institute of Business Management
Examination Paper of Health & Hospital Management
 This s  ection consists of Caselets. 
 Answer all the questions. 
 Each caselet carries 20 marks. 
 Detailed information should form the part of your answer (Word limit 200 to 250 words). 
Caselet 1
Rakesh and Gagan were two brothers who had graduate in Medicine in the year 1979. Both
established themselves as successful practitioners. In 1992, they decided to set up their own hospital
as both were familiar with the nitty-gritty of the profession after spending a decade as successful
practitioners. In the year 1994, the concept was concretized when three floors Arogya Hospital with a
bed capacity of 60 came into existence at Gwalior. The facilities provided by the hospital were
pathology, X-ray, blood bank and ICU. In the year 1998, the number of beds were increased to 100
with the addition of a fourth floor. In the year 2005, a fifth floor was added and the hospital started
offering services like radiology, 3D spiral, C. Tscan, colourdoppler, pathology, blood bank, C.C.U.,
O.T., maternity unit, emergency and trauma services, in-patient accommodation, canteen,
telecommunication and entertainment.
The hospital had 35 nurses and 55 class four employees. The main task of the class four
employees was to maintain the cleanliness of the hospital. Besides this, they were also entrusted with
the task of sponging, bed setting and shifting of the patients. Salary paid to these employees was
between Rs. 1200/- to Rs. 1800/- per month. The hospital staff was divided into different classes of
employees. Class one comprised of MBBS, MD, MS, and Administrative Officers. Class three
comprised of Technicians and Nurses. Class four comprised of Ayabais, Sweepers and Guards.
Hospital had 11 full time doctors, out of whom 7 were duty doctors (MBBS), 2 full time MD for ICU
and 2 full time in-house surgeons (MS). Besides this, the hospital had 50 visiting doctors who
operated on a turnkey basis. These doctors had their own clinics in different parts of the city and as
per requirement, they admitted their patents in the hospital. There was a mutual agreement between
the doctors and the hospital that the hospital would charge the patients and out of it the doctors would
receive their fees along with a percentage from the hospital share. The patients treated by the hospital
were patients requiring intensive care and minor illnesses. Out of the cases reported in the hospital,
60-75% were maternity and were referred to the hospital by leading gynaecologists of the city, Dr.
Savita and Dr. Manorama. To help the doctors in the treatment of patients, work-instructions for
Resident Doctors, Supervisors, Wardboys / Ayabais and Sweeper boys/ bais were prepared by the
newly appointed Hospital-Administrator Priya. These instructions were prepared in English and were
hung on the walls of the enquiry counter. After a span of one month, Priya resigned from the hospital
on account of some personal reasons.
By the end of the year 2004, Ritu, a fresh post-graduate in Hospital-Administration from
Gwalior, was appointed as an Administrative Officer or take charge of the overall activities of the
hospital. Her role was to monitor the activities of employees of class three and four and various other
activities related to the functioning of the Hospital. The first task before her was to improve the
cleanliness of the hospital. She found that the toilets were not cleaned properly and the room hygiene
was dismal. She started making regular visits to all the wards and rooms in the hospital to observe and
monitor the employees lacked a human touch. To add to this, the patients also complained that the
employees demanded money for the services. After analyzing the situation, she came to the
conclusion that lack of motivation among the class four employees was one of the major factors
responsible for the pathetic condition prevailing in the hospital. Lack of motivation among the class
four employees was also visible in the form of high employee turnover, work negligence, absenteeism
and complaining behaviour. High absenteeism among the class four employees resulted in work
overload for sincere employees, as they were forced to work in the next shift. This was a regular
feature in the hospital as a result of which employees often remained stressed and therefore, less
committed towards their work. Although, they were being provided with dinner and snacks at the
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IIBM Institute of Business Management
Examination Paper of Health & Hospital Management
expense of the hospital, as a gesture of goodwill for those who worked over time for the hospital. She
also found that the workers were not reporting for their duty on time, despite their arrival in the
hospital on time.
The second reason, which she identified for lack of hygienic condition in the hospital was that the
visiting hours for the visitors were not specified, so there was a continuous flow of visitors round the
clock, which hampered and affected the cleaning activity of the hospital. It was found that the
patients‟ rooms were always full of visitors who would not mind taking their meals in the room/ward.
She felt that there was no solution to visitors‟s problem, as this was an integral part of the
promotional strategy of the management. She also found that the work-instructions given to the
hospital-staff was in English language and it was difficult for class four employees to understand
them. Ritu translated all these instructions in Hindi so that class four employees could understand and
implement them.
Ritu had the daunting task to reduce the absenteeism and make the employees more committed to
their work and felt that a reward of Rs. 200, if given to an employee who remained present for 31
days could perhaps motivate the employee to remain regular at the work place. Further, to motivate to
perform, she decided to systematize the performance appraisal system by identifying performers and
non-performers. This being her first job, she was apprehensive about performance appraisal. The
employees were to be classified into three groups A, B and C, „A‟ was for high performers, „B‟ was
for average performers and „C‟ was for poor performers. It was decided that the employees in the
grade „A‟ would receive the highest increment followed by „B‟ and „C‟. To make the performance
appraisal objective, she identified various activities on which the employees could be appraised. To
make the performance appraisal system more objective, a two-tier appraisal system was developed by
her. In the first phase, the employees were to be rated regularly on the identified activities by patients
and their attendants. In the second phase, observation of doctors and nurses was to be considered.
Although Ritu had full cooperation from the hospital management, yet she was apprehensive about
the employee‟ acceptance of the new system. She had to wait and watch.
1. Critically evaluate the factors identified by Ritu for enhancing organizational effectiveness?
2. Describe a performance appraisal system that you will recommend to Ritu for evaluating the
employees?
Caselet 2
The management of a hospital, faced with a resource crunch embarked on a cost containment
programme. Instructions were issued to various clinical, supportive and utility services to identify the
areas where cost containment could be effectively implemented without compromising with the
patient care facilities.
The hospital had both the centralized and the decentralised purchasing system. The officer-incharge
of the Emergency Department of the hospital, Dr. Systematic was a qualified and trained
hospital administrator. He systematically commenced analysis of the various activities and procedures
in vogue in the Emergency Department.
Dr. Systematic found out that the Emergency Department in addition to the glass syringes
purchased 9000 disposable syringes per annum. The interval of ordering was 30 days. The cost of
each disposable was Rs. 20/-. The ordering cost per order was Rs. 15/- and the carrying cost were
15% of the average inventory per year. He calculated the Economic Order Quantity, lot size of
inventory per month, storage cost and other inventory related costs and analysed the optimum interval
of ordering. He forwarded these results along with the other cost containment measures of the
Emergency Department to the hospital management. The recommendations of Dr. Systematic were
implemented and used as a model for other departments of the hospital. Dr. Systematic for effective
analysis and appraisal was honoured with the Doctor of the year award by the Hospital Management.
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IIBM Institute of Business Management
Examination Paper of Health & Hospital Management
1. What are the assumptions made by Dr. Systematic for their inventory model?
2. Do you recommend any further suggestion for inventory costs in a hospital?
END OF SECTION B
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 150 to 200 words). 


1. Write in brief about structure and function of Hospital organization?
2. Write down the following terms:
1) Labour Relation System.
2) Organization of Hospital Workers.


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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.


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Energy Management
Section A: Objective Type & Short Questions (30 Marks)
 This section consists of Multiple Choi  ce and Short Note Type Questions. 
 Answer all the questions 
 Part one carries 1 mark each and Part Two questions carry 5 marks each. 
Part One:
1. The audit that focused on evaluating the energy consumption pattern is a______
a. Preliminary Audit
b. Sound Energy Audit
c. Detailed Audit
d. Efficiency Audit
2. Energy Crops are also known as _____________
3. When plant matter is heated but not burnt to break into solid, liquid and gas is which type of
convention?
a. Chemical Convention
b. Thermo chemical Convention
c. Biochemical Convention
d. Residual Convention
4. An example of a simple passive space heating technology is the _____________
5. To make solar design effective which of the following is not followed?
a. A building should have large areas of glazing facing the sun.
b. Certain features should be adopted for equal distribution of heat throughout the building.
c. A building should be sufficient to allow heat storage.
d. A building should have proper landscaping to allow direct sun to the building.
6. It is the most common type of solar panel for full solar power systems.
a. Unframed Rigid Panels
b. Solar Roofing
c. Flexible Panels
d. Framed Rigid Panels
7. Low Peak Coincidence Factor is which of the following barrier for Solar Power Development?
a. Market Related Barrier
b. Institutional Barrier
c. Economical & Technological Barrier
d. Ecological Barrier
8. LEED is a ______________
IIBM Institute of Business Management 1
Examination Paper of Energy Management
9. ______________ is a semi – autonomous body within the OECD
10. SRP stands for _____________
Part Two:
1. Write a short note on „Energy Consumption‟?
2. Differentiate between „Space Heating and Space Cooling‟?
3. Write a short note on „Crop Drying‟?
4. What is a „Solar Thermal Program‟?
END OF SECTION A
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
New South Energy, a subsidiary of Calpine Corp., and Suez Energy North America has asked the
Mississippi Public Service Commission to delay Entergy Corp‟s purchase of the 480 – MW Attala plant.
Entergy agreed in March to purchase the natural gas – fired plant located in Attala. Country, Miss., from
Central Mississippi Generating Co., for $ 88 million. But it asked Cleco Corp., to purchase the
transmission infrastructure associated with the plant. The two companies want the public service
commission to require Entergy to go through the request for proposals process to show that the plant
offers the best value to Mississippi ratepayers. “We do not necessarily oppose the acquisition. But what‟s
the rush?” a New South spokesman said. The price is good until next October, so New South and Suez are
asking for proof that in today‟s market it is the best deal for ratepayers. “They should let other bidders
have a chance,” the spokesman said.
The Mississippi PSC held hearings on the sale of the plant on Wednesday.
Getting the sale approved immediately does have an advantage for Entergy. If it is approved before early
February it will exempt the sale from the Federal Energy Regulations Commission‟s jurisdiction. The
energy bill signed by President Bush in August gives FERC jurisdiction over such asset – only sales
beginning in February.
By separating the plant from the transmission infrastructure, the sale was exempted from FERC‟s
jurisdiction under current rules. FERC is more likely to look at whether the sale of the asset has market
power or transmission implications.
The PSC‟s staff said that based on information provided by Entergy, it appears the acquisition of Attala is
in the public interest and represents a unique opportunity for Entergy to upgrade its aging generation fleet
at a price that is in line with recent sales of similar units and below what it would cost to build a new unit.
It has concerns, however, over Entergy‟s plan to recover the cost of the plant through rider to its existing
IIBM Institute of Business Management 2
Examination Paper of Energy Management
power management schedule. “The recovery of each plant should be addressed individually,” the staff
said.
The staff is also concerned about “piecemeal ratemaking,” meaning that certain costs are considered in
isolation rather than looking at total costs. It cited concerns that Entergy would try to recover operations
and maintenance costs under the rider when it is already included in base rates, and that certain revenues
related to the newly acquired plant will not be considered when setting rates.
Questions:
Q1. Write a note on „Piecemeal Ratemaking?
Q2. What are the advantages of the Acquisition of Entergy Corp‟s by Mississippi Public
Service Commission?
Caselet 2
Electricity is a vital energy input for economic development of any country and helps to alleviate many of
the concerns facing the world, today in a distinctive manner. It is available from various sources such as
conventional and non – conventional sources at a reasonable cost. The electricity generation in India has
indicated four times increase i.e., from 120.8 billion KWH in 1980 – 81 to about 650 billion KWH in
2004 – 2005. It is very interesting to note that among the conventional sources involved in the process of
electricity generation, the share of thermal energy has been significant indicating the growth from 61.3
billion KWH to 700 billion KWH during 1980 – 81 to 2005. The other sources of energy i.e., hydro
energy and nuclear energy have been playing an insignificant role in electricity generation. The basic
input of electricity generation, i.e., coal is causing for many pollutants like sulphur dioxide, nitrogen
oxide, carbon dioxide and particulate matter have a severe damaging effect on mankind and nature. Thus
fuel substitution is very crucial for reducing the adverse impact on environment in the process of
electricity generation. The non – conventional sources of energy like solar energy, wind energy, biomass,
geothermal etc., can be used as substitute energies to electricity generation without any adverse impact on
environment. Moreover, these renewable sources of energy are both economically viable and
environmentally preferable alternatives to fossil fuels. Apart from this, the government also should
involve in environmental matters and protect the public interest in order to maintain pollution free
environment. A strong national energy policy and legislative acts should be formulated for a pollution
free environment. The various alternative options if emphasized by the government, such as, adoption of
energy efficiency measures, economic policies and technology can stabilize the environmental pollution
over a period of time.
Questions:
Q1. Write a note on „Electricity Generation in India‟?
Q2. What are the various substitutes adopted by government to prevent Environmental Pollution?
END OF SECTION B
Section C: Applied Theory (30 Marks)
IIBM Institute of Business Management 3
Examination Paper of Energy Management
 This s  ection consists of Long Questions 
 Answer all the questions 
 Each question carries 10 marks each. 
 Detailed information should form the part of your answer (Word limit 200 to 250 Words) 


1. Write a note on the components of Energy sector?
2. What are the recent trends of Clean Energy?
3. What is Biomass? State the different kinds of Biomass?
END OF SECTION C
IIBM Institute of Business Management 4


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Project Management
Section A: Objective Type & Short Questions (30 marks)
 This section consists of Multiples 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. Liquidation value of the firm’s assets could be considered as________________
a. The minimum wealth of shareholder
b. The maximum wealth of shareholder
c. The average wealth of shareholder
d. None
2. If ‘P’ be the initial investment, ‘I’ be the interest rate and ‘T’ be the time period for which
funds are invested then interest earned will be______________
a. P*I/T
b. P*T/I
c. (P*I*T)2
d. P*I*T
3. Following the above given conditions, compound Interest be given by___________
a. P*(1+I)1/T
b. P*(1+I)T
c. (P*I*T)T
d. Can not be calculated
4. Firms resorting to ‘Proactive Growth’?
a. Do constant strategic planning
b. Watch things happening
c. Never plan but work on fortune
d. None
5. ‘SPACE’ stands for___________________
6. Increasing marketing expenditure leading to an increased market share is known
as________________
a. Market development
b. Market penetration
c. Market expansion
d. Market growth
Examination Paper of Project Management
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IIBM Institute of Business Management
7. If profit after tax is ‘A’ ,depreciation be ‘B’ and interest be ‘I’ then Interest cover ratio
is given by______________
8. E-V rule is also called_____________
a. Mean co variance rule
b. Mean variance rule
c. Mean deviation rule
d. None
9. In case of internally generated funds the opportunity cost to the firm is____________
a. Zero
b. The lending rate
c. The borrowing rate
d. None
10. ‘PERT’ stands for__________________
Part Two:
1. Write a note on ‘Sinking Fund Payment’.
2. Differentiate between PERT and CPM Model?
3. What is ‘Capital Asset Pricing Model (CAPM)’?
4. What do you understand by PBP (Payback Period Method)?
5. Briefly explain the planning for procurement?
END OF SECTION A
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 200 to 250 words).
Caselet 1
Project partnering at British Airports Authority (BAA)
The construction sector in recent times has not been noted for its high levels of performance. Firms
like BAA, who own and operate airports including Heathrow and Gatwick – London’s two major
airports – rely heavily on their suppliers, including their construction suppliers, for their own
performance. Where construction projects are delayed, the financial consequences can be disastrous.
Furthermore, the disciplines of working on airport premises, including the security issues, play a
Examination Paper of Project Management
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IIBM Institute of Business Management
significant part in the daily working lives of project staff. New firms bringing new staff onto the
airport sites invariably require time to bring them up to speed with the appropriate ways of working.
Particular problems include:
 Security – all personnel with access to airside parts of the airport (i.e. past passport control) must
be security vetted and trained. The vetting process takes six weeks, so firms must prepare project
staff in advance;
 Deliveries – getting materials into the airport is problematic, due to significant congestion and
lack of availability of areas for storage;
 Constant use of terminal buildings by passengers – the closing of areas causes problems with
passenger capacity. The firms are required to work with the constraints of passengers using the
areas around where the work is being carried out and physical and noise intrusion must be kept to
a minimum;
 The commercial activities (shops and restaurants) are the economic lifeblood of the business, with
large ground-rents. The objective of projects involving these areas is not simply to complete
works on time but as early as possible, so that the areas can start to generate rental incomes.
The traditional approach to managing fit-out projects (changing internal layouts to accommodate
different facilities and in particular new retail facilities) was that every contract was different, and
would be negotiated with different contractors. These would then employ their own sub-contractors to
carry out parts of the work. The approach that has worked far better for all concerned has been
through the appointment of lead contractors, with long-term contracts – in most cases 10 years – to be
the prime supplier of fit-out services to B.A.A. This particular contract was awarded to MACE. As
part of the agreement, BAA has paid for MACE staff to attend training programmes. This has
extended further, with help being offered to their suppliers – of both materials and labour – for
development. Where particular problems are identified, the supplier can be asked to take part in an
improvement programme. Satisfactory completion can result in similar long-term deals (tied to
continual improvement) being offered to those suppliers. In some cases the problems – particularly
with designs for areas – have been the responsibility of BAA. The mechanisms are now in place to
identify these problems and to introduce new practices to avoid them in future.
1) Summarise the arguments for such a policy of partnering with a major supplier such as BAA and
MACE have done here.
2) Carry out further research to identify further examples of partnering in projects. How well do they
appear to be working?
Caselet 2
The Big Dig
Any project that involves tunnelling is risky. Any project that involved tunneling under a city whilst
trying to keep that city fully operational, is very risky. When that city is bottom in the USA, it is in a
risk category all of its own. This does not, how – ever, excuse the financial performance of this
project, the results of which are exceptional and even make the performance of previous ‘stars of
disaster’ such as the Channel Tunnel, look good. During the 1950s, the Commonwealth of
Massachusetts commissioned new roads as part of a national road-building frenzy that took place at
that time. The result was a partly elevated freeway that cut the city off from its old harbour and over
time coped increasingly less well with the volumes of traffic that were trying to use it. For many
years, the project had been the subject of much politicking and had been rejected by a number of
national administrations. In 1993, it was given the go-ahead. At this time the budget was $US2.6
Examination Paper of Project Management
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IIBM Institute of Business Management
billion, an enormous sum of money for an 8-mile tunnel, but given the technical complexity of the
task, this was considered acceptable. Gradually the costs rose, until in 1998, the estimated final cost
was 410.4 billion. By mid-2000 this had risen to $13 billion and by mid-2001 to over $15 billion. It
was still considered a technical success, but both politically and economically, it was a disaster. In
project management terms it is also a disaster – a 500 per cent-plus overrun on budget can only be
described as ‘talented’. How did such a financial disaster occur? The f irst is a feature of many large
‘political’ projects – that the ‘real cost’ would not be politically acceptable. The original budget was
deliberately deflated to make the project happen. The second is technical risk – that of the tunnelling
process. The ground through which the tunnelling is being carried out is reclaimed land that was
originally under the sea. The tunnelling process being used was also new, presenting a degree of
technical novelty.
1) How might the project be considered a technical success but an economic, political and project
management disaster?
2) Suggest how the 500 per cent-plus overrun might have come about.
END OF SECTION B
Section C: Applied Theory (30 marks)
 This section consists of Long Questions.
 Answer all the questions.
 Each question carries 15 marks.
 Detailed information should form the part of your answer (Word limit 150 to 200 words).
1. Define the term Integration Management? And how would you explain the Project plan in detail?
2. The funds and personnel requirements of the project change significantly with the stage of its life
cycle. What are the stages in the life cycle of project? Describe them.
END OF SECTION C
S-2-300813


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Enterprise Resource Planning
Subject Code-C102
Section A: Objective Type & Short Questions (30 marks)
 This section consists of Multiple Choice questions & Short Answer type questions.
 Answer all the questions.
 Part one questions carry 1 mark each & Part Two questions carry 5 marks each.
Part One:
Multiple Choices:
1. Enterprise Resource Planning is:
a. Computer System
b. Manufacturing organization
c. Method of effective planning of all the resources in an organization
d. None of the above
2. Enterprise Resource Planning vendors are those people:
a. Who are experts in administration and management of projects
b. Who have developed the ERP packages
c. Who uses the ERP system
d. None of the above
3. Interviewing and cost justification is tool and technique of:
a. Design step of ERP
b. Implementation step of ERP
c. Requirement analysis of ERP
d. Planning step of ERP
4. Support re-engineering processes to fit the software systems best practice is approach of:
a. Re-engineering approach
b. Customizing approach
c. Rational approach
d. None of the above
5. Process of tracking customer contacts and providing the customer with a price quote is:
a. Inventory sourcing
b. Sales order processing
c. Pre-sales
d. None of the above
Examination Paper of Enterprise Resource Planning
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IIBM Institute of Business Management
6. The difficulty in creating an audit trial of transactions when multiple transactions use multiple
database is associated with:
a. Product profitability sub-system
b. Finished goods inventory sub-system
c. Management reporting sub-system
d. Creating an audit trial sub-system
7. Differences occur between standard costs and actual costs is problem associated with:
a. Accounting
b. Production
c. Purchasing / Materials Management
d. None of the above
8. MRP in Enterprise resource planning stands for:
a. Maximum retail price
b. Material requirement planning
c. Management requirement planning
d. None of the above
9. Process of providing status of purchase order comes in a category of:
a. Purchase order follow-up
b. Source determination
c. Determine requirement
d. Invoice verification
10. Resource failure occurs when:
a. People clashes
b. Inability to communicate with the system user
c. Poor specification of requirements
d. Conflicts of people, time and project scope due to insufficient personnel
Part Two:
1. What are the advantages of the re-engineering method of implementing ERP?
2. What are the benefits reported from implementing ERP?
3. Write a short note on “Credit Management”.
4. Define Material Requirements Planning.
END OF SECTION A
Examination Paper of Enterprise Resource Planning
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IIBM Institute of Business 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
Tech Knowledge is a start-up founded in 1997 by Robert Thyer. The company is a distributer of
presentation technologies, including computer based projection systems, video equipment, and
display technologies. The firm has 25 employees and does $5 million in sales. It is growing rapidly.
The owner, Robert Thyer, would like to net source the back-office functions of the firm because the
company does not have an internal IT capability. The applications to be net sourced would include
sales and distribution, financial accounting, and inventory management.
Tech Knowledge would like to source SAP or another ERP vendor via a hosting arrangement. It
does not expect to do much customization, and it does not have any legacy systems.
Questions:
1. What factors should it use to evaluate each of these potential hosts?
2. What controls should be in place to monitor the hosting arrangement?
Caselet 2
ITM is a company specializing in network implementation and management. It provides networking
services to mid-sized companies, which do not have an internal networking analyst or IT, manager.
These organizations include real estate companies, law offices, medical practices, architectural /
engineering firms, construction companies, business services providers, country clubs, community
organizations, and churches.
ITM uses a legacy accounting system to handle its financial accounting and financial management
functions. It has added on a billing package for client services. The next step is to obtain a CRM
capability to manage information about current and prospective customers more effectively.
You have been assigned to identify potential sources for a net-sourcing arrangement with an ERP
vendor, which provides CRM capabilities.
Questions:
1. Identify potential sources of software.
2. Determine five criteria you will recommend be used to evaluate each of alternative providers.
END OF SECTION B
Examination Paper of Enterprise Resource Planning
4
IIBM Institute of Business 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 form the part of your answer (Word limit 200 to 250 words).
1. Explain in brief Sales and Marketing Modules in ERP System.
2. What are the different development process in ERP systems and write a detailed note on it?
END OF SECTION C
S-2-250613


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Corporate Governance
Section A: Objective Type & Short Questions (30 Marks)
 This section consists of Multiple Choice & Short Note Types questions.
 Answer all the questions.
 Part one carries 1 mark each & Part Two carries 5 marks each.
Part One:
Multiple Choices:
1. ________A group of persons chosen to govern the affairs of a corporation or other large institution.
a .Memorandum of Association
b. Nomination Committee
c. Board of Directors
d. Shareholders
2. BIFR stands for_______
a. Board of India and Financial Reconstruction
b. Board of Industrial and Financial Reconstruction
c. Board of Industrial and Finance Reconstruction
d. None of the above
3. ________is a review in which an auditor analyzes and verifies various records and processes relating to a
company‟s quality program.
a. Cost Audit
b. Quality Audit
c. Internal Audit
d. None of the above
4. Which of the following comes under in Justification?
a. Long Run Viability
b. Better Environment
c. Public Image
d. All of the above
5. USEPA stands for_______
6. The existence of a single producer or seller which is producing or selling a product which has no close
substitutes is called_______
a. Externalities
b. Price control
c. Monopoly
d. None of the above
7. SEBI stands for______
Examination Paper of Corporate Governance
IIBM Institute of Business Management 2
a. Securities and exchange Board of India
b. Stock and exchange Board of India
c. Self-regulatory and exchange Board of India
d. None of the above
8. Which of the following issue is not come under in corporate Governance?
a. Correct Preparation
b. Internal Control
c. oversight and management risk
d. Compensation of CEO and other Directors
9. Shareholder are required to inform the company in writing of any change in their address quoting their
folio number is known as______
a. Change of address
b. Transposition of shares
c. None receipt of Dividend
d. All of the above
10. Which of the following comes under External corporate Governance controls?
a. Competition
b. Managerial labour market
c. Debt Covenants
d. All of the above
Part Two:
1. What are the scopes of corporate governance?
2. Discuss the basic rights of shareholders?
3. List the type of “Auditors”.
4. Write a short note on corporate social responsibility.
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
Real Juice Company
The company is in the business of producing and marketing fruit juices. Ritu joshi and Rohit Jain were
looking at the ad copy and turning it over and over again in their mind. The copy read, “The best fitness plan
for you real fruit, honest juice and no sugar. This was the main copy line. The more Ritu joshi repeated this
END OF SECTION A
Examination Paper of Corporate Governance
IIBM Institute of Business Management 3
line in her mind the uneasier she became. Something is wrong in the copy, she said to Rohit jain, the
marketing head. We cannot say best for health when we know for sure that the juice contain preservatives
and food color.
Rohit jain said, I don‟t see if anything is wrong in this. With food colors and preservatives added we couldn‟t
say it is best. This is what is wrong m replied Ritu.
Rohit said, but this is hyperbole and permitted by law. There is nothing wrong in saying this. Have you not
almost noticed all detergent brands say for best wash or whitest wash? This is simply a way of putting your
claim of brand‟s superiority. We are not talking about detergent washes and fabrics it is a health and fitness
fruit juice. We could not say something like‟, a great way to plan your fitness programme‟ or something like
that. We are saying real fruit, honest juice, and no sugar‟ … not a word about food color and preservatives‟.
Any consumer can contest our claim.”
Rohit Jain though for a moment then said, “let us get the legal opinion from our lawyer, Amit soni, to be on
the safe guard.
Amit listened to what Ritu had to say then said, “Companies use advertising to provide information to
consumers and offer alternatives in a competitive market situation. Advertising is false when it says A=B
and that is not true. But the ad is misleading; it falls under the category of unfair trade practice.” Loudly
reading the ad copy, Amit said‟” hyperbole such as best, newest most effective way, are permissible and
consumers are unlikely to take such claims with ant seriousness. When a brand says its air-conditioner is best
or most efficient, consumers know that this is just a manner of speech and do not truly believe and put their
money on such claims.
“Yes, Real juice passes the legal test fine, but ethically it won‟t be correct,” said Ritu joshi. “Please
understand. Here you are not making a claim,” said Amit soni.
Amit soni said,” comparative advertising is healthy but the advertiser must be clear about the claims to be
made. In this case, you are saying that Teal juice is good because it comes in cans and bottled drinks are not
as good. This is a direct attack on bottled drinks. Advertiser does not disclose all the parameters they have
considered in their conclusion of „best‟. They may select some major ones or may cheese to highlight the
trivial ones and ignore the major ones. These things happen every day and are not strictly provided under the
law. There must be prima facie evidence of damage or misrepresentation to establish a case of unfair trade
practice.” “so, we are legally safe,” said Rohit jain. “We will reword this campaign, but our other campaigns
have passed to muster.”
Ritu joshi felt differently, she said, “legally we may safe, but we have to also take an ethical view.”
We must not forget that our primary platform is health and fitness. This convenience angle is also crating
and impression of „good for health‟. I believe that as responsible advertisers, we have to be more concerned
about the ethical aspects than merely the legal angle. This is where we come to the line between what is legal
and what is ethical. We may be legally right but our act could be unethical if the word or pictures in the ad
could lead the consumer to believe something that is not true. The aura of the fitness instructor used as
endorser creates an impression that the information is coming to consumers from an environment where
there are people whose opinion consumer‟s view as being correct. Otherwise why use the instructor as
endorser.”
Question:
1. Analyze the issues in the case.
2. Why should advertiser bother about ethics if the ads measure up to legal parameters
Caselet 2
Over the course of Microsoft‟s history, the board has developed corporate governance practices to help it
fulfill its responsibilities to shareholders to oversee the work of management and the company‟s business
results. The governance practices are memorialized in these guidelines to assure that the board will have the
necessary authority and practices in place to review and evaluate the company‟s business operation as
Examination Paper of Corporate Governance
IIBM Institute of Business Management 4
needed and to make decision that are independent of the company‟s management. The guidelines are also
intended to align the interests of directors and management with those of Microsoft‟s shareholders.
The guidelines are subject to future refinement or changes as the board may find necessary or advisable for
Microsoft in order to achieve these objectives.
Board composition and selection: independent Directors
1. Board Size: The board believes 8 to 10 is an appropriate size based on the company‟s present
circumstances. The board periodically evaluates whether a larger or smaller slate of directors would
be preferable
2. Selection of Board members: All members are elected annually by the company‟s shareholders,
except as noted below with respect to vacancies.
The board may fill vacancies in existing or new directors‟ positions.
3) Board membership criteria: The governance and nominating committee works with the board on
the annual basis to determine the appropriate characteristics, skills and experience for the board as a
whole and its individual board members, the board takes into accounts many factor including general
understanding of marketing, finance and other discipline relevant to the success of a large publicity –
traded company in today‟s business environment; understanding of Microsoft‟s business on a
technical level.
4) Board Composition: Mix of management and independent directors. The board believes that,
except during periods of temporary vacancies, a majority of its directors must be independents.
5) Term Limits: Director who have served on the board for an extended period of time are able to
provide valuable insight into the operation and future of the company based on their experience with
an understanding of the company‟s history, policies and objectives.
6) Retirement Policy: The board believes that 75 is an appropriate retirement age for outside directors.
7) Directors with significant job changes: The board believes that any director who retires from his
or her present employment, or who materially changes his or her position, should tender resignation
to the board.
8) Selection of CEO and Chairman: The board selects the company‟s CEO and Chairman in the
manner that it determines to be in the best interests of the company‟s shareholders.
Board meetings: involvement of Senior Management
9) Board meeting-agenda: The Chairman of the board and CEO, taking into account suggestions from
other members of the board, will set the agenda for each board meeting, and will distribute the
agenda in advance to each director.
10) Advance distribution of material: All information relevant to board‟s understanding of matters to
be discussed at an upcoming board meeting should be distributed in writing or electronically to all
members in advance.
11) Access to employees: The board should have access to company employees in order to ensure that
directors can ask all questions and glean all information necessary to fulfill their duties.
12) Executive session of independent directors: The independent directors of the company will meet
regularly o executive session, i.e., with no management directors or management present, at least
three times each fiscal year.
Performance Evaluation: Succession Planning
13) Annual CEO Evaluation: The chair of the governance and nominating committee leads the
independent directors in conducting a review at least annually of the performance of the CEO and
communicates the result of the review to the CEO.
14) Succession Planning: As part of the annual officer evaluation process, the compensation committee
works with the CEO to plan for CEO succession, as well as to develop plan for interim succession
for the CEO in the event of an unexpected occurrences.
15) Board self-evaluation: The governance and nominating committee is responsible for conducting an
annual evaluation of the performance of the full board and reports its conclusion to the board.
Compensation
Examination Paper of Corporate Governance
IIBM Institute of Business Management 5
16) Board compensation review: Company management should report to the board on an annual basis
as to how the company‟s director compensation practices compare with those of other large public
corporations.
17) Directors’ stock ownership: The board believes that, in order to align the interests of directors and
shareholders, directors should have a significant financial stake in the company.
Committees
18) Number and types of committees: The board has 5 committees- an Audit committee, a
compensation committee, governance and nominating committee, a finance committee, and an
antitrust compliance committee. The board may add new committees or remove existing committees
as it deems advisable in the fulfillment of its primary responsibilities.
a. Audit committee
b. Compensation committee
c. Governance and Nominating committee
d. Finance committee
19) Composition of committee: Committee chairperson. The audit, compensation, governance and
nominating and antitrust compliance committees consist solely of independent directors.
20) Committee Meetings and Agenda: The chairperson of each committee is responsible for
developing, together with relevant company managers, the committee‟s general agenda and
objectives and for setting the specific agenda for committee meeting.
Miscellaneous
21) Review of governance guidelines: The practices memorialized in these guidelines have developed
over a period of years. The board expects to review these guidelines at least every two years as
appropriate.
Questions:
1. List the number and types of committees.
2. Discuss the Performance evaluation planning in brief.
Section C: Applied Theory (30 Marks)
 This section consists of Long Questions.
 Answer all the questions.
 Each question carry 15 marks each.
 Detailed information should from the part of your Answer (Word limit 200 to 250 words)
1. Define corporate governance; explain the principles of corporate governance?
2. Distinguish between the Anglo-American Model and the German Model.
S-2-300813
END OF SECTION B
END OF SECTION C


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Marketing Management
Section A: Objective Type (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 4 marks each.
Part one:
Multiple choices:
1. It is a concept where goods are produced without taking into consideration the choices or tastes of customers.
a. Marketing mix
b. Production concept
c. Marketing concept
d. Relationship marketing
2. It involves individuals who buys products or services for personal use and not for manufacture or resale.
a. Environment analysis
b. Macro environment
c. Micro environment
d. Consumer
3. It is the groups of people who interact formally or informally influencing each other’s attitudes& behavior.
a. Consumer behavior
b. Culture
c. Reference groups
d. Primary groups
4. The concept of the product that passes through various changes in its total life known as:
a. Product life cycle
b. Line stretching
c. Consumer adoption
d. Product
5. It refers to unique set of brand associations that brand strategist aspires to create or maintain:
a. Branding
b. Packaging
c. Brand identity
d. Brand image
Examination Paper of Marketing Management
IIBM Institute of Business Management 2
6. It involves a pricing strategy that charges customers different prices for the same product or service.
a. Promotional pricing
b. Price discrimination
c. Non price competition
d. None of the above
7. It refers to an arrangement where another company through its own marketing channel sells the products of one producers.
a. End customer
b. Wholesaler
c. Retailing
d. Strategic channel alliance
8. It involves facility consisting of the means & equipments necessary for the movement of passengers of goods.
a. Logistics
b. Warehousing
c. Transportation
d. None of the above
9. The advertising which is used to inform consumers about a new product or feature & to build primary demands is known as:
a. Advertising
b. Informative advertising
c. Persuasive advertising
d. Advertising strategy
10. An art that predicts the likelihood of economic activity on the basis of certain assumptions:
a. Compensation
b. Sales forecasting
c. Sales budgeting
d. Selling policy
Part Two:
1. Write a note on importance of consumer behavior for a business firm.
2. Define the term ‘Price’.
3. Distinguish between Marketing Concept and Selling Concept.
4. What are the new trends in advertisement?
5. Briefly explain the following :
a) Socio –culture environment
b) Marketing environment interface.
END OF SECTION A
Examination Paper of Marketing Management
IIBM Institute of Business Management 3
Section B: Case lets (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).
Case let 1
Ask the company top brass what ‘almost there’ means. The answer: a premier Indian retail company that has come to be known as a specialty chain of apparel and accessories. With 52 product categories under one roof, Shoppers’ Stop has a line-up of 350 brands. Set up and headed by former Corona employee, B. S. Nagesh, Shoppers’ Stop is India’s answer to Selfridges and Printemps. As it proudly announces, ‘We don’t sell, we help you buy.’ Back in 1991, there was the question of what to retail. Should it be a supermarket or a departmental store? Even an electronics store was considered. Finally, common sense and understanding won out. The safest bet, for the all-male team was to retail men’s wear. They knew the male psyche and felt that they had discerning taste in men’s clothing. The concept would be that of a lifestyle store in a luxurious space, which would make for a great shopping experience. The first Shoppers’ Stop store took shape in Andheri, Mumbai, in October 1991, with an investment of nearly Rs. 20 lakh. The original concept that formed the basis of a successful marketing campaign for seven years is here to stay. And the result is an annual turnover of Rs. 160 crores and five stores, nine years later. Everything went right from the beginning, except for one strange happening. More than 60 per cent of the customers who walked into Shoppers’ Stop in Mumbai were women. This gave rise to ideas. Soon, the store set up its women’s section. Later, it expanded to include children’s wear and then, household accessories. The second store in Bangalore came in 1995. The store at Hyderabad followed in 1998 with the largest area of 60,000 sq. ft. The New Delhi and Jaipur stores were inaugurated in 1999. All this while, the product range kept increasing to suit customer needs. The most recent experiment was home furnishings. Secure in the knowledge that organized retailing in global brands was still in its infancy in India, Shoppers’ Stop laid the ground rules which the competition followed. The biggest advantage for Shoppers’ Stop is that it knows how the Indian consumer thinks and feels while shopping. Yes, feeling – for in India, shopping remains an outing. And how does it compare itself to foreign stores? While it is not modeled on any one foreign retailer, the ‘basic construct’ is taken from the experience of a number of successfully managed retail companies. It has leveraged expertise for a critical component like technology from all over the world, going as far as hiring expatriates from Littlewoods and using state-of-the-art ERP models. Shoppers’ Stop went a step further by even integrating its financial system with the ERP model. Expertise was imported wherever it felt that expertise available in-house was inadequate. But the store felt there was one acute problem. A shortage of the most important resource of them all was trained humans. Since Indian business institutes did not have professional courses in retail management, people were hired from different walks of life and the training programme was internalized. By 1994, the senior executives at Shoppers’ Stop were taking lectures at management institutes in Mumbai. The Narsee Monjee Institute of Management Studies (NMIMS) even restructured its course to include retail management as a subject. Getting the company access to the latest global retail trends and exchange of information with business greats was an exclusive membership to the Intercontinental Group of Department Stores (IGDS). It allows membership by invitation to one company from a country and Shoppers’ Stop rubs shoulders with 29 of the hottest names in retailing – Selfridges from the UK, C.K. Tang from Singapore, Lamcy Plaza from Dubai and the like. With logistics I in place, the accent moved to the customer. Shoppers’ Stop conducted surveys with ORG-MARG and Indian Market Research Bureau (IMRB) and undertook in-house wardrobe audits. The studies confirmed what it already knew. The Indian customer is still evolving and is very different from, say, a European customer, who knows exactly what he wants to purchase, walks up to a shelf, picks up the merchandise, pays and walks out. In India, customers like to touch and feel the
Examination Paper of Marketing Management
IIBM Institute of Business Management 4
merchandise, and scout for options. Also, the majority of Indian shoppers still prefer to pay in cash. So, transactions must be in cash as against plastic money used the world over. Additionally, the Indian customer likes being served – whether it is food, or otherwise. The company’s customer profile includes people who want the same salesperson each time they came to the store to walk them through the shop floors and assist in the purchase. Others came with families, kids and maids in tow and expected to be suitably attended to. Still others wanted someone to carry the bags. So, the shops have self-help counters, with an assistant at hand for queries or help. The in-house wardrobe audit also helped with another facet of the business. It enabled Shoppers’ Stop to work out which brands to stock, based on customer preferences. In fact, the USP of Shoppers’ Stop lies in judiciously selected global brands, displayed alongside an in-house range of affordable designer wear. The line-up includes Levi’s, Louis Philippe, Allen Solly, Walt Disney, Ray Ban and Reebok, besides in-house labels STOP and I. Brand selection is the same across the five locations, though the product mix may be somewhat city-based to accommodate cuts and styles in women’s wear, as well as allowing for seasonal variations (winter in Delhi, for instance, is a case in point). Stocking of brands is based on popular demand – recently, Provogue, MTV Style, and Benetton have been added. In-house labels are available at competitive prices and target the value-for-money customer and make up around 12 per cent of Shoppers’ Stop’s business. Sometimes in-house brands plug the price gap in certain product categories. To cash in on this, the company has big plans for its in-house brands: from re-branding to repositioning, to homing in on product categories where existing brands are not strong. Competition between brands is not an issue, because being a trading house, all brands get equal emphasis. The in-house brand shopper is one who places immense trust in the company and the quality of its goods and returns for repeat buys. And the company reposed its faith in regular customers by including them in a concept called the First Citizen’s Club (FCC). With 60,000 odd members, FCC customers account for 10 per cent of entries and for 34 per cent of the turnover. It was the sheer appeal of the experience that kept pulling these people back. Not one to let such an opportunity pass, the company ran a successful ad campaign (that talks about just this factor) in print for more than eight years. The theme is still the same. In 1999, a TV spot, which liked the shopping experience to the slowing down of one’s internal clock and the beauty of the whole experience, was aired. More recently, ads that spell out the store’s benefits (in a highly oblique manner) are being aired.
The campaign is based on entries entered in the Visitors’ Book. None of the ads has a visual or text – or any heavy handedly direct reference to the store or the merchandise. The ads only show shoppers having the time of their lives in calm and serene locales, or elements that make shopping at the store a pleasure – quite the perfect getaway for a cosmopolitan shopper aged between 25 and 45. The brief to the agency, Contract, ensured that brand recall came in terms of the shopping experience, not the product. And it has worked wonders. Value-addition at each store also comes in the form of special care with car parks, power backup, customer paging, alteration service and gift-wrapping. To top it all, cafes and coffee bars make sure that the customer does not step out of the store. In Hyderabad, it has even created a Food Court. Although the food counter was not planned, it came about as there was extra space of 67,000 sq. ft. Carrying the perfect experience to the shop floor is an attempt to stack goods in vast open spaces neatly. Every store has a generic structure, though regional customer variances are accounted for. Each store is on lease, and this is clearly Shoppers’ Stop’s most expensive resource proposition – renting huge spaces in prime properties across metros, so far totaling 210,000 sq. ft of retail space. Getting that space was easy enough for Shoppers’ Stop, since its promoter is the Mumbai-based Raheja Group, which also owns 62 per cent of the share capital.
Questions:
1. What are the significant factors that have led to the success of Shoppers’ Stop?
2. Draw the typical profile(s) of Shoppers’ Stop customer segments.
Examination Paper of Marketing Management
IIBM Institute of Business Management 5
3. How are Indian customers visiting Shoppers’ stop any different from customers of developed western countries?
4. How should Shoppers’ Stop develop its demand forecasts?
Case let 2
The rise of personal computers in the mid 1980s spurred interest in computer games. This caused a crash in home Video game market. Interest in Video games was rekindled when a number of different companies developed hardware consoles that provided graphics superior to the capabilities of computer games. By 1990, the Nintendo Entertainment System dominated the product category. Sega surpassed Nintendo when it introduced its Genesis System. By 1993, Sega commanded almost 60 per cent of Video game market and was one of the most recognized brand names among the children. Sega’s success was short lived. In 1995, Saturn (a division of General Motors) launched a new 32-bit system. The product was a miserable failure for a number of reasons. Sega was the primary software developer for Saturn and it did not support efforts by outside game developers to design compatible games. In addition, Sega’s games were often delivered quite late to retailers. Finally, the price of the Saturn system was greater than other comparable game consoles. This situation of Saturn’s misstep benefited Nintendo and Sony greatly. Sony’s Play Station was unveiled in 1994 and was available in 70 million homes worldwide by the end of 1999. Its “Open design” encouraged the efforts of outside developers, resulting in almost 3,000 different games that were compatible with the PlayStation. It too featured 32-bit graphics that appealed to older audience. As a result, at one time, more than 30 per cent of PlayStation owners were over 30 years old. Nintendo 64 was introduced in 1996 and had eye-popping 64-bit graphics and entered in more than 28 million homes by 1999. Its primary users were between the age of 6 and 13 as a result of Nintendo’s efforts to limit the amount of violent and adult-oriented material featured on games that can be played on its systems. Because the company exercised considerable control over software development, Nintendo 64 had only one-tenth the number of compatible games as Sony’s PlayStation did. By 1999, Sony had captured 56 per cent of the video game market, followed by Nintendo with 42 per cent. Sega’s share had fallen to a low of 1%. Hence, Sega had two options, either to concede defeat or introduce an innovative video machine that would bring in huge sales. And Sega had to do so before either Nintendo or Sony could bring their next-generation console to market. The Sega Dreamcast arrived in stores in September 1999 with an initial price tag of $199. Anxious gamers placed 300,000 advance orders, and initial sales were quite encouraging. A total of 1.5 million Dreamcast machines were bought within the first four months, and initial reviews were positive. The 128-bit system was capable of generating 3-D visuals, and 40 different games were available within three months of Dream cast’s introduction. By the end of the year, Sega had captured a market share to 15 per cent. But the Dreamcast could not sustain its momentum. Although its game capabilities were impressive, the system did not deliver all the functionality Sega had promised. A 56K modem (which used a home phone line) and a Web browser were meant to allow access to the Internet so that gamers could play each other online, surf the Web, and visit the Dreamcast Network for product information and playing tips. Unfortunately, these features either were not immediately available or were disappointing in their execution. Sega was not the only one in having the strategy of adding functionality beyond games. Sony and Nintendo followed the same approach for their machines introduced in 1999. Both Nintendo’s Neptune and Sony’s PlayStation 2 (PS2) were built on a DVD platform and featured a 128-bit processor. Analysts applauded the move to DVD because it is less expensive to produce and allows more storage than CDs. It also gives buyers the ability to use the machine as CD music player and DVD movie player. As Sony marketing director commented, “The full entertainment offering from Play Station 2 definitely appeals to a much broader audience. I have friends in their 30s who bought it not only because it’s a gaming system for their kids, but also a DVD for them.” In addition, PlayStation 2 is able to play games developed for its earlier model that was CD-based. This gives the PS2 an enormous advantage in the number of compatible game titles
Examination Paper of Marketing Management
IIBM Institute of Business Management 6
that were immediately available to gamers. Further enhancing the PS2’s appeal is its high-speed modem and allows the user’s easy access to the Internet through digital cable as well as over telephone lines. This gives Sony the ability to distribute movies, music, and games directly to PS2 consoles. “We are positioning this as an all-round entertainment player,” commented Ken Kutaragi, the head of Sony Computer Entertainment. However, some prospective customers were put off by the console’s initial price of $360. Shortly after the introduction of Neptune, Nintendo changed its strategies and announced the impending release of its newest game console, The GameCube. However, unlike the Neptune, the GameCube would not run on a DVD platform and also would not initially offer any online capabilities. It would be more attractively priced at $199. A marketing vice president for Nintendo explained the company’s change in direction, “We are the only competitor whose business is video games. We want to create the best gaming system.” Nintendo also made the GameCube friendly for outside developers and started adding games that included sports titles to attract an older audience. Best known for its extra ordinary successes with games aimed at the younger set, such as Donkey Kong, Super Mario Bros, and Pokemon, Nintendo sought to attract older users, especially because the average video game player is 28. Youthful Nintendo users were particularly pleased to hear that they could use their handheld Game Boy Advance systems as controllers for the GameCube. Nintendo scrambled to ensure there would be an adequate supply of Game Cubes on the date in November 2001, when they were scheduled to be available to customers. It also budgeted $450 million to market its new product, as it anticipated stiff competition during the holiday shopping season. With more than 20 million PlayStation 2 sold worldwide, the GameCube as a new entry in the video game market would make the battle for market share even more intense. For almost a decade, the video game industry had only Sega, Nintendo, and Sony; just three players. Because of strong brand loyalty and high product development costs, newcomers faced a daunting task in entering this race and being competitive. In November 2001, Microsoft began selling its new Xbox, just three days before the GameCube made its debut. Some observers felt the Xbox was aimed to rival PlayStation 2, which has similar functions that rival Microsoft’s Web TV system and even some lower level PCs. Like the Sony’s PlayStation 2, Xbox was also built using a DVD platform, but it used an Intel processor in its construction. This open design allowed Microsoft to develop the Xbox in just two years, and gave developers the option of using standard PC tool for creating compatible games. In addition, Microsoft also sought the advice of successful game developers and even incorporated some of their feedback into the design of the console and its controllers. As a result of developers’ efforts, Microsoft had about 20 games ready when the Xbox became available. By contrast, the GameCube had only eight games available. Microsoft online strategy was another feature that differentiated of the Xbox from the GameCube. Whereas Nintendo had no immediate plans for Web-based play, the Xbox came equipped with an Ethernet port for broadband access to Internet. Microsoft also announced its own Web-based network on which gamers can come together for online head-to head play and for organized online matches and tournaments. Subscribers to this service were to pay a small monthly fee and must have high-speed access to the Internet. This is a potential drawback considering that a very low percentage of households world over currently have broadband connections. By contrast Sony promoted an open network, which allows software developers to manage their own games, including associated fees charged to users. However, interested players must purchase a network adapter for an additional $39.99. Although game companies are not keen on the prospect of submitting to the control of a Microsoft-controlled network, it would require a significant investment for them to manage their own service on the Sony-based network. Initially the price of Microsoft’s Xbox was $299. Prior to the introduction of Xbox, in a competitive move Sony dropped the price of the PlayStation 2 to $299. Nintendo’s GameCube already enjoyed a significant price advantage, as it was selling for $100 less than either Microsoft or Sony products. Gamers eagerly snapped up the new consoles and made 2001 the best year ever for video game sales. For the first time, consumers spent $9.4 billion on video game equipment, which was more than they did at the box office. By the end of 2001 holiday season, 6.6 million PlayStation 2 consoles had been sold in North America alone, followed by 1.5 million Xbox units and 1.2 million Game Cubes. What ensued was an all out price war. This started when Sony decided to put even more pressure on the Microsoft’s Xbox by cutting the PlayStation 2 price to $199. Microsoft quickly matched that price.
Examination Paper of Marketing Management
IIBM Institute of Business Management 7
Wanting to maintain its low-price status, Nintendo in turn responded by reducing the price of its the GameCube by $50, to $149. By mid 2002, Microsoft Xbox had sold between 3.5 and 4 million units worldwide. However, Nintendo had surpassed Xbox sales by selling 4.5 million Game Cubes. Sony had the benefit of healthy head start, and had shipped 32 million PlayStation 2s. However, seven years after the introduction of original PlayStation, it was being sold in retail outlets for
a mere $49. It had a significant lead in terms of numbers of units in homes around the world with a 43 per cent share. Nintendo 64 was second with 30 per cent, followed by Sony PlayStation 2 with 14 per cent. The Xbox and GameCube each claimed about 3 per cent of the market, with Sega Dreamcast comprising the last and least market share of 4.7 per cent. Sega, once an industry leader, announced in 2001 that it had decided to stop producing the Dreamcast and other video game hardware components. The company said it would develop games for its competitors’ consoles. Thus Sega slashed the price of the Dreamcast to just $99 in an effort to liquidate its piled up inventory of more than 2 million units and immediately began developing 11 new games for the Xbox, four for PlayStation 2, and three for Nintendo’s Game Boy Advance. As the prices of video game consoles have dropped, consoles and games have become the equivalent of razors and blades. This means the consoles generate little if any profit, but the games are a highly profitable proposition. The profit margins on games are highly attractive, affected to some degree by whether the content is developed by the console maker (such as Sony) or by an independent game publisher (such as Electronic Arts). Thus, the competition to develop appealing, or perhaps even addictive, games may be even more intense than the battle among players to produce the best console. In particular, Nintendo, Sony, and Microsoft want games that are exclusive to their own systems. With that in mind, they not only rely on large in-house staffs that design games but they also pay added fees to independent publishers for exclusive rights to new games. The sales of video games in 2001 rose to 43 per cent, compared to just 4 per cent increase for computer-based games. But computer game players are believed to be a loyal bunch, as they see many advantages in playing games on their computers rather than consoles. For one thing, they have a big advantage of having access to a mouse and a keyboard that allow them to play far more sophisticated games. In addition, they have been utilizing the Internet for years to receive game updates and modifications and to play each other over the Web. Sony and Microsoft are intent on capturing a portion of the online gaming opportunity. Even Nintendo has decided to make available a modem that will allow GameCube users to play online. As prices continue to fall and technology becomes increasingly more sophisticated, it remains to be seen whether these three companies can keep their names on the industry’s list of “high scorers”.
Questions:
1. Considering the concept of product life cycle, where would you put video games in their life cycle?
2. Should video game companies continue to alter their products to include other functions, such as e-mail?
END OF SECTION B
Examination Paper of Marketing Management
IIBM Institute of Business Management 8
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 200-250 words).
1. What is meant by sales promotion? Describe briefly the various methods of sales promotional tools used by business organizations to boost the sales. Explain any four methods of sales promotion?
2. Write notes on the fowling :
a) Explain right to safety.
b) What is right to consumer protection?
S-2-301012
END OF SECTION C


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Human Resource Management
Section A: Objective Type (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. It is a cultural attitude marked by the tendency to regard one’s own culture as superior to others.
a. Geocentrism
b. Polycentrism
c. Ethnocentrism
d. Egocentrism
2. It is the systemic study of job requirements & those factors that influence the performance of those job requirements.
a. Job analysis
b. Job rotation
c. Job circulation
d. Job description
3. This Act provides an assistance for minimum statutory wages for scheduled employment
a. Payment of Wages Act, 1936
b. Minimum Wages Act, 1948
c. Factories Act, 1948
d. Payment of Gratuity act, 1972
4. __________ is the actual posting of an employee to a specific job.
a. Induction
b. Placement
c. Attrition
d. None of the above
5. Broadening an individual’s knowledge, skills & abilities for future responsibilities is known as:
a. Training
b. Development
c. Education
d. Mentoring
Examination Paper of Human Resource Management
IIBM Institute of Business Management 2
6. Change that is designed and implemented in an orderly and timely fashion in anticipation of future events.
a. Planned change
b. Technology change
c. Structural change
d. None of the above
7. It is a process for setting goals and monitoring progress towards achieving those goals:
a. Performance appraisal
b. Performance gap
c. Performance factor
d. Performance management system
8. A method which requires the rates to provide a subjective performance evaluation along a scale from low to high.
a. Assessment centre
b. Checklist
c. Rating scale
d. Monitoring
9. It is the sum of knowledge, skills, attitudes, commitment, values and the liking of the people in an organization.
a. Human resources
b. Personal management
c. Human resource management
d. Productivity
10. A learning exercise representing a real-life situation where trainees compete with each other to achieve specific objectives.
a. Executive development
b. Management game
c. Programmed learning
d. Understudy
Part Two:
1. Explain the importance of Career Planning in industry.
2. Write the features of HRM.
3. Briefly explain the concept of Performance Appraisal.
4. Explain On-Job and Off Job Training.
END OF SECTION A
Examination Paper of Human Resource Management
IIBM Institute of Business Management 3
Section B: Case lets (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 150-200 words).
Case let 1
Trust them with knee-jerk reactions,” said Vikram Koshy, CEO, Delta Software India, as he looked at the quarterly report of Top Line Securities, a well-known equity research firm. The firm had announced a downgrade of Delta, a company listed both on Indian bourses and the NASDAQ. The reason? “One out of every six development engineers in the company is likely to be benched during the remaining part of the year.” Three analysts from Top Line had spent some time at Delta three weeks ago. Koshy and his team had explained how benching was no different from the problems of excess inventory, idle time, and surplus capacity that firms in the manufacturing sector face on a regular basis, “Delta has witnessed a scorching pace of 30 per cent growth during the last five years in a row,” Koshy had said, “What is happening is a corrective phase.” But, evidently, the analysts were unconvinced.
Why Bench?
Clients suddenly decide to cut back on IT spends Project mix gets skewed, affecting work allocation Employee productivity is set to fall, creating slack working conditions. High degree of job specialization leads to redundancy
What are the options?
Quickly cut costs in areas which are non-core look for learning’s from the manufacturing sector Focus on alternative markets like Europe and Japan Move into products, where margins are better. Of course, the Top Line report went on to cite several other “signals,” as it said: the rate of annual hike in salaries at Delta would come down to 5 per cent (from between 20 and 30 per cent last year); the entry-level intake of engineers from campuses in June 2001, would decline to 5 per cent (unlike the traditional 30 per cent addition to manpower every year); and earnings for the next two years could dip by between 10 and 12 per cent. And the loftiest of them all: “The meltdown at Nasdaq is unlikely to reverse in the near future.” “Some of the signals are no doubt valid. And ominous,” said Koshy, addressing his A-Team, which had assembled for the routine morning meeting. “But, clearly, everyone is reading too much into this business of benching. In fact, benching is one of the many options that our principals in the US have been pursuing as part of cutting costs right since September, 2000. They are also expanding the share of off-shore jobs. Five of our principals have confirmed that they would outsource more from Delta in India-which is likely to hike their billings by about 30 per cent. At one level, this is an opportunity for us. At another, of course, I am not sure if we should be jubilant, because they have asked for a 25-30 per cent cut in billing rates. Our margins will take a hit, unless we cut costs and improve productivity.” “Productivity is clearly a matter of priority now,” said Vivek Varadan, Vice-President (Operations). “If you consider benching as a non-earning mode, we do have large patches of it at Delta. As you are aware, it has not been easy to secure 70 per cent utilization of our manpower, even in normal times. I think we need to look at why we have 30 per cent bench before examining how to turn it into an asset.” “There are several reasons,” remarked Achyut Patwardhan, Vice-President (HR). “And a lot of it has to do with the nature of our business, which is more project-driven than product-driven. When you are managing a number of overseas and domestic projects simultaneously, as we do at Delta, people tend to go on the bench. They wait, as they complete one project, and are assigned the next. There are problems of coordination between projects, related to the logistics of moving people and resources from one customer to another. In fact, I am fine-tuning our monthly manpower utilization report to provide a breakup of bench costs into
Examination Paper of Human Resource Management
IIBM Institute of Business Management 4
specifics-leave period, training programmes, travel time, buffers, acclimatization period et al.” “It would be worthwhile following the business model used by US principal Techno Inc,” said Aveek Mohanty, Director (Finance). “The company has a pipeline of projects, but it does not manage project by project. What it does is to slice each project into what it calls ‘activities’. For example, communication networking; user interface development; scheduling of processes are activities common to all projects. People move from one project to another. It is somewhat like the Activity Based Costing. It throws up the bench time straightaway, which helps us control costs and revenue better.” “I also think we should reduce our dependence on projects and move into products,” said Praveen Kumar, Director (Marketing). “That is where the opportunity for brand building lies. In fact, now is the time to get our technology guys involved in marketing. Multiskilling helps reduce the bench time.” “Benching has an analogy in the manufacturing sector,” said Girish Shahane, Vice-President (Services). “We could look for learning’s there. Many firms have adopted Just-In-Time (JIT) inventory as part of eliminating idle time. It would be worthwhile exploring the possibility of JIT. But the real learning lies in standardization of work. It is linked to what Mohanty said about managing by activities.” “At a broader level, I see several other opportunities,” said Koshy, “We can fill in the space vacated by US firms and move up the value chain. But before we do so, Delta should consolidate its position as the premier outsourcing centre. Since there are only two ways in which we can generate revenue-sell expertise or sell products-we should move towards a mix of both. Tie-ups with global majors will help. Now is the time to look beyond the US and strike alliances with firms in Europe- and also Japan-as part of developing new products for global markets.”
Questions:
1. Should benching be a matter of concern at Delta?
2. What are the risks involved in moving from a project-centric mode to a mix of projects and products?
Case let 2
The contexts in which human resources are managed in today’s organizations are constantly, changing. No longer do firms utilize one set of manufacturing processes, employ a homogeneous group of loyal employees for long periods of time or develop one set way of structuring how work is done and supervisory responsibility is assigned. Continuous changes in who organizations employ and what these employees do require HR practices and systems that are well conceived and effectively implemented to ensure high performance and continued success.
1. Automated technologies nowadays require more technically trained employees possessing multifarious skills to repair, adjust or improve existing processes. The firms can’t expect these employees (Gen X employees, possessing superior technical knowledge and skills, whose attitudes and perceptions toward work are significantly different from those of their predecessor organizations: like greater self control, less interest in job security; no expectations of long term employment; greater participation urge in work activities, demanding opportunities for personal growth and creativity) to stay on without attractive compensation packages and novel reward schemes.
2. Technology driven companies are led by project teams, possessing diverse skills, experience and expertise. Flexible and dynamic organizational structures are needed to take care of the expectations of managers, technicians and analysts who combine their skills, expertise and experience to meet changing customer needs and competitive pressures.
3. Cost cutting efforts have led to the decimation of unwanted layers in organizational hierarchy in recent times. This, in turn, has brought in the problem of managing plateau employees whose careers seem to have been hit by the delivering process. Organizations are, therefore, made to find alternative career paths for such employees.
Examination Paper of Human Resource Management
IIBM Institute of Business Management 5
4. Both young and old workers, these days, have values and attitudes that stress less loyalty to the company and more loyalty to oneself and one’s career than those shown by employees in the past, Organizations, therefore, have to devise appropriate HR policies and strategies so as to prevent the flight of talented employees
Question:
1. Discuss that technological breakthrough has brought a radical changes in HRM.
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 200-250 words).
1. Several types of interviews are commonly used depending on the nature & importance of the position to be filled within an organization. Explain the different types of Interviews.
2. Explain the legal provisions regarding safety of workers.
S-2-301012
END OF SECTION B
END OF SECTION C


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Computer Fundamentals
Section A: Objective Type (20 marks)
 This section consists of Multiple Choice Questions / Fill in the blanks.
 Answer all the questions.
 Each Question carries 1 mark.
Multiple Choices:
1. A set of instruction given to computer to perform certain task is known asa.
Hardware
b. Program
c. Software
d. Data
2. Third generation computers built betweena.
1964 – 1975
b. 1955 – 1964
c. 1975 – 1989
d. 1942 – 1955
3. Which of the following unit allows computer to permanently store large amount of data?
a. Central processing unit
b. Control unit
c. Memory unit
d. Storage unit
4. Hardware components which are used to display or print the processed information is known asa.
Digital computer
b. Input devices
c. Output devices
d. None
5. Which of the following storage devices can store maximum amount of data?
a. Floppy disk
b. Hard disk
c. Compact disk
d. Magneto Optic disk
6. A type of register used to read the value of an operand from a memory location as well as write
the data information is known asa.
Memory data register
b. Instruction register
c. Temporary registers
d. Accumulator
Examination Paper of Computer Fundamentals
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IIBM Institute of Business Management
7. EEPROM stands for
8. memory lies in the path between the processor and the main memory is calleda.
Primary memory
b. Cache memory
c. Secondary Memory
d. Main memory
9. WWW refers to:
a. World wide web
b. World wide web
c. World wild web
d. World west web
10. OBR stands for
True & False
1. The printers that prints the characters by striking against the ribbon and onto the paper are called
non – impact printers.
2. Plotter is an important output devices used to print highest quality graphics & drawings.
3. Joystick is a pointing device which is used to move cursor position on a monitor screen.
4. Optical character reader (OCR ) are the input devices that can sense marks on computer readable
papers.
5. Any devices that is connected to the main computer system is commonly referred to as
peripheral.
6. A voice response system is one that reads strings of character stored in a computer’s memory.
7. A high – level programming language is a language with little or no abstraction from a
computer’s Instructions set hierarchy
8. The compiler software is used to compile & create the object codes in machine language.
9. A number system with base or radix 8 is known as binary number system.
10. Magnetic tapes are used as external storage device to keep back-up copies of precious software &
data.
END OF SECTION A
Examination Paper of Computer Fundamentals
3
IIBM Institute of Business Management
Section B: Short Questions (20 marks)
 This section consists of short questions.
 Answer should be in 5 lines.
 Each Question carries 5 marks.
 Attempt any four questions.
1. What are the important characteristics of computers?
2. Differentiate between the RAM and ROM Memory?
3. List the component of computers in brief.
4. Write short note on fifth generation computers.
5. List the types of input devices.
END OF SECTION B
Section C: Long Questions (20 marks)
 This section consists of Long Questions.(word limit 150-200 words)
 Each question carries 10 marks.
 Attempt any two questions.
1. What is the memory unit and also explain the different types of memory?
2. Explain the characteristics of good programming language?
3. What is “Microsoft office” also Discuss the components of Microsoft office
END OF SECTION C
Section D: Very Long Questions (40 marks)
 This section consists of very long questions.
 Each question carries 20 marks.
 Attempt any two questions.
 Detailed information should form the part of your answer (word limit 200-250 words).
Examination Paper of Computer Fundamentals
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IIBM Institute of Business Management
1. What do you mean by storage devices & also explain the types of storage devices?
2. Describe the tools and accessories of “Multimedia and Animation software”?
3. What is the meaning of DBMS and also explain the applications of database system?
4. What do you mean by Microsoft internet explorer and explain the features & capabilities of
internet explorer?
END OF SECTION D
S-2-100513


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Digital Marketing
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 5 marks each.
Part One:
Multiple choices:
1. If Coca-Cola were to pay Web surfers a small fee to watch their ads, these ads would be called:
a) Interstitials.
b) Content sponsorships.
c) Banner ads.
d) Browser ads.
2. Which of the following marketing practices would be about the same thing as the Internet
practice of viral marketing?
a) coupon clipping
b) word-of-mouth marketing
c) disintermediation
d) Tele-marketing
3. Which of the following Web sites is the best illustration of a Web community?
a) Ben& Jerry‘s Ice Cream—www.benjerry.com.
b) Nike—www.nike.com.
c) Hallmark Greeting Cards—www.hallmark.com.
d) ivillage—www.ivillage.com.
4. Jack Strong would like to receive up-to-date financial information so he can carefully manage
his financial portfolio. He decides to use Internet Financial Network‘s Info gate to supply
financial news, market data, and real-time stock quotes to his PC. Internet Financial Network is
supplying Mr. Strong with a ____________service.
a) Portal
b) corporate Web site
c) Webcasting
d) Interstitial
5. Webcasting is also known as _____________, as it affords an attractive channel through which
online marketers can deliver their Internet advertising or other information content.
a) pull programming
b) push programming
c) customized programming
d) viral programming
Examination Paper of Digital Marketing
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IIBM Institute of Business Management
6. Along with its considerable promise, e-commerce faces many challenges. All of the following,
according to the text, would be among those challenges EXCEPT:
a) Poor revenue potential.
b) Limited consumer exposure and buying.
c) Skewed user demographics and psychographics.
d) Chaos and clutter.
7. Online users still tend to be somewhat more upscale and more technology-oriented than the
general population. Which of the following e-commerce challenges most appropriately
corresponds with this statement?
a) ethical concerns
b) limited consumer exposure and buying
c) skewed user demographics and psychographics
d) chaos and clutter
8. One study found that a Web site must capture a Web surfer‘s attention within eight seconds or
lose them to another site. Which of the following e-commerce challenges most appropriately
corresponds with this statement?
a) ethical concerns
b) security
c) skewed user demographics and psychographics
d) chaos and clutter
9. The Johnson Company is seeking to expand its business onto the ―informati on highway‖ made
possible by recent advances in technology. To do this, the Johnson Company would most likely
choose the:
a) Internet.
b) Intranet.
c) Extranet.
d) Compunet.
10. Which of the following is not the example of business to consumer (B to C) e-commerce?
a) Amazon.com
b) e-bay.com
c) Dell.com
d) Lastminute.com
Part Two:
1. Differentiate between house of brands and branded house strategies in the context of the
virtual medium offered by the internet. Use corporate examples to illustrate your viewpoint
2. What are the different types of online advertisements?
3. Write a short note on adaptive conversation.
4. What is CGM? How can companies use CGM as an organizational resource to generate
positive word-of-mouth for its consumers?
END OF SECTION A
Examination Paper of Digital Marketing
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IIBM Institute of Business 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
DOMINO’S
Organised Pizza business in India is 12 years old. It started when Domino‘s and Pizza Hut, the two
biggest Pizza chains with origins in US entered India and set up stores. Before that the only pizzas
that Indians were used to were from a very few Italian restaurants and chains like Nirula‘s. Pizzas
were also served in 5 star hotels and were considered a very premium food back then. The category
consumers are the young Indians in the age group of 18 to 35 yrs. from SEC A and B. Domino‘s
started its first store in India in 1995. Today, with 576 stores across 123 cities in India (as of 31st
March 2013), Domino‘s is the market leader in the organized Pizza category with 67% market share
and also the largest International QSR chain in the country. The environment is a self-service,
hygienic, air-conditioned environment with cheerful but not decorative interiors, often with seating
for 15 to 40 customers. Our stores are self-service without any cutlery and customers eat out of Pizza
boxes and with their hands.
In the following years, the campaigns were more product / promotion centric. The 30 mins or free
delivery promise became one element of the Ads. The brand positioning continued to be ‗Hungry
Kya?‘ The focus was to position the brand as the makers of great tasting pizzas. This was done
through the launch of many new indulging Pizza products with communication revolving around new
and tasty products & craving for the Domino‘s pizza. The delivery occasion was retained as a context
of all the communication. Some of the successful launches were 3 Cheese Pizza, Double Burst Pizza,
Double Cheese Crunch Pizza, Cheese Burst Pizza, Calzone, and Stuffed Crunch Pizza. However, we
were still seen as an expensive brand and it continued to be an opportunity for further growth. In
2006, we cracked this code as well with the launch of Fun Meal range of pizzas starting at 45/- price
point. In 2008, we launched the Pizza Mania range of Pizzas starting at Rs 35/-, and since then we
have become a mass player in the category straddling the entire spectrum of price points and
consumer requirements. The Pizza Mania launch made us a very accessible brand and we had lot of
new customers coming into our stores who had never tried pizzas before in their lives.
Questions:
1. How do we drive the frequency of our existing consumers and gain more share of eating out /
out-of-home food occasions?
2. How do we remain relevant in our positioning ‗Yeh Hai Rishton ka time‘ & further
impregnate it in consumer minds across 120+ cities in India where we are present and new
cities we are moving into?
Caselet -2
BlackBerry
Research in Motion is a leading manufacturer of wireless devices. The Canadian company‘s
Examination Paper of Digital Marketing
4
IIBM Institute of Business Management
breakthrough product was and continues to be the BlackBerry. However, the business faces a number
of strategic challenges. RIM has seen its stock performance stagnate while rivals such
as Apple and Google have performed strongly and started to erode its market dominance.A number of
strategic shifts in the Smartphone market have affected the company adversely. First, Apple has
fundamentally changed the sector with the launch of the iPhone. The device has established a
dominant position, especially in the consumer segment, and is now making inroads in the corporate
market that has traditionally been BlackBerry‘s dominant space. More recently, Apple has entered the
tablet PC market with the iPad. Second, the sharp growth in take-up of smart phones using Google‘s
Android operating system is also eating into BlackBerry‘s market share. These two challenges have
had a double-whammy negative impact on RIM as both volume growth and margins have eroded with
increased competition high quality global journalism requires investment. While some investors and
analysts have called for a dramatic change in RIM‘s operations, others fear that the company will
dilute its core competence by trying to compete with the iPhone and the Android platform. Instead,
RIM has taken a multipronged strategic approach. First, the company has strengthened its presence in
the enterprise market by introducing a number of new BlackBerry models, many of which have
improved touch screens to make the user experience more akin to competitor devices. Second, the
company has made strides in getting its ―App Store‖ off the ground. While it still lags behind the
iPhone and Android app stores, it has reached a critical mass with more than 15,000 apps, which at
least gives it a presence. A number of strategic shifts in the Smartphone market have affected the
company adversely. Second, the sharp growth in take-up of Smartphone using Google‘s Android
operating system is also eating into BlackBerry‘s market share. In recent years, avid BlackBerry users
were tempted by the iPhone. Now, the BlackBerry line has all the multimedia functionality of the
competitors, along with its core strength of security. The company‘s recent marketing strategy
showcasing the multimedia and social networking functionality of devices also suggests that RIM is
serious about expanding its consumer market share.
1. Blackberry usually launches significant campaigns for the promotion of its product ranges. List all
the campaigns where blackberry has attempted to use the behavioral Internet theory for marketing.
2. Make a chart to analyze success and failure points of the brand.
END OF SECTION B
Section C: Applied Theory (30 marks)
 This section consists of Long 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).
Examination Paper of Digital Marketing
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IIBM Institute of Business Management
1. How can companies like Apple make use of influential individuals after identifying them?
Can the company benefit from a blogger outreach programme or a community programme or
use WhatsApp for leveraging influential customers?
2. Identify and list tools being used by companies for online campaign management.
END OF SECTION C
Examination Paper of Digital Marketing
6
IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Social Media Marketing
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 5 marks each.
Part One:
Multiple choices:
1. Internet advertising has some weaknesses because
a) It cannot reach a global audience
b) It does not deliver good targeted reach
c) It is not easy to track
d) It is not emotive
2. Which of the following is not a weakness of using online in the media plan?
a) It is not emotive
b) It is subject to high levels of clutter
c) It can reach a global and local audience
d) It can be intrusive
3. Mobile marketing to-date is most successful among
a) Asian consumers
b) Younger consumers
c) Spanish consumers
d) American consumers
4. Mobile marketing has innovative ways to reach the consumer. Which of the following is not
one of them?
a) Barcode calls-to-action
b) Mobile apps
c) Yellow pages advertising
d) Mobile retail payments
5. Geotargeting allows an advertising campaign to concentrate on a fixed locale through mobile
technology
a) True
b) False
6. One advantage of Mobile marketing is that it is not
a) Inferior in its creative possibilities
b) Place-based media
c) Prone to security breaches
d) Dependent on GPS systems
Examination Paper of Digital Marketing
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IIBM Institute of Business Management
7. Mobile marketers are able to reach audiences
a) In real time
b) Using a ‗push‘ strategy
c) Using a ‗pull‘ strategy
d) All of the above
8. The statistics on unique visitors on a mobile device are highly reliable
a) True
b) False
9. One weakness of using mobiles in a media plan is
a) The message is long-lived
b) Privacy issues are of great concern among mobile users
c) All devices are standardized for easy use across operating systems
d) Rich content delivery is better than on a computer
10. SIM stands for
a) Web 2.0 technologies
b) Social Instant Medium
c) Social Influence Marketing
d) Social Media Marketing
Part Two:
1. What is Social CRM? What are its functions and benefits?
2. What are the advantages and disadvantages of Search Engine Marketing?
3. Explain the elements of Online Promotion Mix in Marketing.
4. Explain in detail the basis and types of Market Segmentation.
END OF SECTION A
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
Footwear
You are a leading local manufacturer of premium footwear and aspire to expand your brand.
On the basis of above. Answer the following questions:
1. What will be your broad strategy to use the Internet for your goals?
2. Explain briefly steps you would adopt to make your website.
Examination Paper of Digital Marketing
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IIBM Institute of Business Management
3. Explain innovative ways through which you will attract people to your website and make them
buy.
Caselet – 2
Twitter and Lok Sabha Elections 2014
Twitter is characterized by micro blogging – content, that is, short and on target, courtesy the 140
character requirement. The medium found immense appeal amongst the politicians and also became
an online battle ground between rival parties.
The ease of usage and the rapid proliferation of content made it a hangout of veterans such as
Narendra Modi, Arvind Kejriwal, Shushma Swaraj, amongst others. The content hosted on Twitter
soon became the basis for political debates on Television. Twitter, India setup a dedicated vertical
whose mandate was to get political parties, politicians and influencers to engage with their audience
on Twitter. Acceptance of the virtual world and the convenience provided by the medium to reach the
masses was the flavour of the year.
1. How did Facebook, Twitter, and Google use innovative techniques to facilitate conversations and
election coverage?
2. How did political parties pro-actively react to the changes in society, education and Internet
Literacy and make use of the Internet to target the youth?
END OF SECTION B
Section C: Applied Theory (30 marks)
 This section consists of Long 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. How can a company use YouTube strategically for its brand communication? Why is YouTube
such an important site in terms of search?
2. Explain with an example, how Google Analytics helps you measure traffic on your website?
How is the data helpful for your overall marketing efforts?
END OF SECTION C


PHARMACEUTICALS MANAGEMENT IIBM ONGOING EXAM ANSWER SHEET PROVIDED

PHARMACEUTICALS MANAGEMENT IIBM ONGOING EXAM ANSWER SHEET PROVIDED WHATSAPP 91 9924764558

 

CONTACT:

DR. PRASANTH BE MBA PH.D. MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com
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
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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
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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
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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
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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
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ENTERPRISE RESOURCE PLANNING IIBM ONGOING EXAM ANSWER SHEETS PROVIDED

ENTERPRISE RESOURCE PLANNING IIBM ONGOING EXAM ANSWER SHEETS PROVIDED WHATAPP 91 9924764558

 

CONTACT:

 

DR. PRASANTH BE MBA PH.D. MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com
Enterprise Resource Planning
Subject Code-C102
Section A: Objective Type & Short Questions (30 marks)
 This section consists of Multiple Choice questions & Short Answer type questions.
 Answer all the questions.
 Part one questions carry 1 mark each & Part Two questions carry 5 marks each.
Part One:
Multiple Choices:
1. Enterprise Resource Planning is:
a. Computer System
b. Manufacturing organization
c. Method of effective planning of all the resources in an organization
d. None of the above
2. Enterprise Resource Planning vendors are those people:
a. Who are experts in administration and management of projects
b. Who have developed the ERP packages
c. Who uses the ERP system
d. None of the above
3. Interviewing and cost justification is tool and technique of:
a. Design step of ERP
b. Implementation step of ERP
c. Requirement analysis of ERP
d. Planning step of ERP
4. Support re-engineering processes to fit the software systems best practice is approach of:
a. Re-engineering approach
b. Customizing approach
c. Rational approach
d. None of the above
5. Process of tracking customer contacts and providing the customer with a price quote is:
a. Inventory sourcing
b. Sales order processing
c. Pre-sales
d. None of the above
Examination Paper of Enterprise Resource Planning
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IIBM Institute of Business Management
6. The difficulty in creating an audit trial of transactions when multiple transactions use multiple
database is associated with:
a. Product profitability sub-system
b. Finished goods inventory sub-system
c. Management reporting sub-system
d. Creating an audit trial sub-system
7. Differences occur between standard costs and actual costs is problem associated with:
a. Accounting
b. Production
c. Purchasing / Materials Management
d. None of the above
8. MRP in Enterprise resource planning stands for:
a. Maximum retail price
b. Material requirement planning
c. Management requirement planning
d. None of the above
9. Process of providing status of purchase order comes in a category of:
a. Purchase order follow-up
b. Source determination
c. Determine requirement
d. Invoice verification
10. Resource failure occurs when:
a. People clashes
b. Inability to communicate with the system user
c. Poor specification of requirements
d. Conflicts of people, time and project scope due to insufficient personnel
Part Two:
1. What are the advantages of the re-engineering method of implementing ERP?
2. What are the benefits reported from implementing ERP?
3. Write a short note on “Credit Management”.
4. Define Material Requirements Planning.
END OF SECTION A
Examination Paper of Enterprise Resource Planning
3
IIBM Institute of Business 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
Tech Knowledge is a start-up founded in 1997 by Robert Thyer. The company is a distributer of
presentation technologies, including computer based projection systems, video equipment, and
display technologies. The firm has 25 employees and does $5 million in sales. It is growing rapidly.
The owner, Robert Thyer, would like to net source the back-office functions of the firm because the
company does not have an internal IT capability. The applications to be net sourced would include
sales and distribution, financial accounting, and inventory management.
Tech Knowledge would like to source SAP or another ERP vendor via a hosting arrangement. It
does not expect to do much customization, and it does not have any legacy systems.
Questions:
1. What factors should it use to evaluate each of these potential hosts?
2. What controls should be in place to monitor the hosting arrangement?
Caselet 2
ITM is a company specializing in network implementation and management. It provides networking
services to mid-sized companies, which do not have an internal networking analyst or IT, manager.
These organizations include real estate companies, law offices, medical practices, architectural /
engineering firms, construction companies, business services providers, country clubs, community
organizations, and churches.
ITM uses a legacy accounting system to handle its financial accounting and financial management
functions. It has added on a billing package for client services. The next step is to obtain a CRM
capability to manage information about current and prospective customers more effectively.
You have been assigned to identify potential sources for a net-sourcing arrangement with an ERP
vendor, which provides CRM capabilities.
Questions:
1. Identify potential sources of software.
2. Determine five criteria you will recommend be used to evaluate each of alternative providers.
END OF SECTION B
Examination Paper of Enterprise Resource Planning
4
IIBM Institute of Business 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 form the part of your answer (Word limit 200 to 250 words).
1. Explain in brief Sales and Marketing Modules in ERP System.
2. What are the different development process in ERP systems and write a detailed note on it?
END OF SECTION C
S-2-250613


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Hospital Administration
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 and Part Two carries 5 marks each. 
Part One:
Multiple forms:
1. Low growth low market share products are termed as___________
a. Stars
b. Cash cows
c. Dogs
d. None
2. To improve organizational performance „Alfred Sloan‟ introduced „3S term‟ as doctrine of
strategy, structure and?
a. System
b. Solution
c. Share
d. None
3. Overburdening may occur due to too many group members seeking out an individual for
information and assistance, a solution to such problem is_____________
a. Linear organization
b. Circular organization
c. Elliptical organization
d. None
4. NHS stands for_________________
5. ICU in medication stands for Internal cure union.(T/F)
6. There are 4 levels of strategic consensus that have been identified among the managers, one level
in which managers are informed about the strategy but they are not willing to act is
called___________
a. Blind devotion
b. Informed scepticism
c. Weak consensus
d. None
7. OCB stands for Organization citizenship behavior.(T/F)
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IIBM Institute of Business Management
Examination Paper of Health & Hospital Management
8. BPR stands business process re enforcement.(T/F)
9. The best way to avoid conflict and there by preserve relationship with in the health care
organization is____________
a. Spiral of silence
b. Web of solution
c. Web of solution
d. None
10. IPE stands for inter disciplinary education.(T/F)
Part Two:
1. Discuss the Managerial issues in Disaster Management?
2. What do you understand by the Outpatient Department (OPD)?
3. Write a short note on Quality Assurance in a Hospital?
4. Briefly describe the importance and functions of Housekeeping department in the Hospital?
END OF SECTION A
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 200 to 250 words). 
Caselet 1
CULTURAL BELIEFS
An organization‟s culture can be studied at three levels: artefacts, values and assumptions. Artefacts
are the organizational structures that are visible to the members of the organization. Values are the
strategies, goals and philosophies of the organization‟s members. The basic, underlying assumptions
of group members include taken-for-granted beliefs, perceptions, thoughts and feelings. Even though
certain basic assumptions are evident, taken for granted and are not normally confronted or debated,
the culture of the organization will become evident at the level of observable artefacts and in the
shared values, norms and rules of behavior of the organization‟s member. Group norms are sets of
shared values that have been valedated through a consensus process. The social validation of group
norms arises when certain values are confirmed by the shared experiences of the group and these
norms are passed onto new members as being the correct way to do things. This mechanism of
embedding and meshing culture is undertaken at an unconscious level in most organizations.
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IIBM Institute of Business Management
Examination Paper of Health & Hospital Management
Although culture resides in the minds of the members of the organization, it is transmitted through
visible expressions, such as formal and informal routines and everyday rituals of existence undertaken
by members of the organization. Over time, shared experiences develop into a set of core values that
become embedded in individual and organizational philosophy and ideology that ultimately serves to
guide action and behavior. This process is an important mechanism in the transmission of shared
professional assumptions, values, artefacts and symbols from the master to the student and in the
development of the socialization process that professional clinicians undergo. Therefore, the internal
orientation of employees is based primarily on the culture, values, beliefs, ethics and assumptions of
the organization‟s staff; this is particularly evident amongst health service employees, although the
orientation may differ between clinicians and non-clinicians.
1. Why according to you Artefacts are essential for the development of an organization‟s culture?
2. Elaborate the cultural beliefs of your company?
Caselet 2
There are many ways of managing change. Few organizational changes are complete failures, and
few are entirely successful. The management of change draws from psychological, behavioral,
political, social and culture dimensions, many of which may be conflicting. A realization that change
is the result of competition between driving and restraining forces is evident in much of the literature.
Lewin noted some forces drive change whilst others resist change. A change agent is required to
fecilitate change, to manage the restraining forces, and to drive change through. The change is
required to understand change as a phenomenon, identify the key emotional reactions associated with
change, such as resistance, and know how to manage change in a positive manner. Kotter contends
that both leadership and management skills are required to effectively and positively manage change,
particularly in a volatile environment. He further argues that the change process is deductive; it is
about managing complexity and is often undertaken in order to prevent a more chaotic reality than
that presently in force. If change is approached with a certain level of excitement and enthusiasm, it
will create opportunities that will make patients lives better. However, change is often introduced
without due regard for the realities of individual areas of health care practice. Some managers may
not have an insight into the effect of the change on the lives of individuals or realizations that even
minor change may have unintended consequences for the individual and the organization. Most
resistance to change occurs not because of the proposed change, but as a result of individual
perceptions of expected outcomes due to the change and on how this is likely to impact on their lives.
Therefore, an accurate assessment of the environment, both internal and external to the organization,
is required prior to the change, thus preventing negative consequences for individuals.
1. Why there is a need of change?
2. With reference to your company, what changes you prefer?
END OF SECTION B
Section C: Applied Theory (30 marks)
3
IIBM Institute of Business Management
Examination Paper of Health & Hospital Management
 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 150 to 200 words). 


1. What do you mean by Emergency Department Planning? How would you explain the managerial
issues in Emergency department?
2. Write a short note on the following terms:
1) Central Sterile Supply Department (CSSD)
2) Total Quality Management in Health Care
3) Medical Audit and its Administration
END OF SECTION C
4
IIBM Institute of Business Management
Examination Paper of Health & Hospital Management
IIBM Institute of Business Management
Examination Paper MM.100
Hospital Care
Section A: Objective Type & Short Questions (30 marks)
 This section consists of Multiple Choi  ces and Short Not type Questions. 
 Answer all the questions. 
 Part One carries 1 mark each and Part Two carries 5 marks each. 
Part One:
Multiple Choices:
1. A method of collaborative work in which visual display of information on flip charts or other
media to which other group member can use is__________
a. Decision matrices
b. Multivoting
c. Boarding
d. Brainstorming
2. A tool for Data collection which summarise perception of a large sample of people
is___________
a. Surveys
b. Interviews
c. Check sheet
d. Data sheets
3. Members of Inspection control committee_________
a. Microbiologist, O.T. incharge, Medical Superintendent
b. Representative from Nursing Service, CSSD in charge, Representative from major clinical
department
c. Both (a) & (b)
d. None of the above
4. MRD stands for___________
a. Medical Records Department
b. Medicine Records Department
c. Medicine Release Department
d. None of the above
5. Format for appraisal in which rank order is establish of employees based on their relative
merit_________
a. Forced Distribution Technique
b. Graphic Rating Scale
c. Ranking methods
d. Free Written Ratings
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IIBM Institute of Business Management
Examination Paper of Health & Hospital Management
6. Analytical technique in Materials Management in which all items in inventory on the basis of
annual usuage time cost is________
a. FSN Analysis
b. ABC Analysis
c. VED Analysis
d. None of the above
7. Planning tool used in Quality Management in which the items are written on individual cards and
displayed on a flip chart__________
a. Relations Diagram
b. Process Decision Program chart
c. Affinity Diagram
d. Activity Network Diagram
8. Method of filing of Medical records in which involves filing of records in exact chronological
order according to unit / serial number___________
a. Middle Digit filing
b. Terminal Digit filing
c. Straight Numeric filing
d. None of the above
9. Type of hospital in which the number of beds is over 300 beds is known as___________
a. Large hospital
b. Medium sized hospital
c. Small hospital
d. None of the above
10. Meeting in hospital whose purpose is to pass on information received from agencies is_________
a. Informative Meeting
b. Consultative Meeting
c. Executive Meeting
d. None of the above
Part Two:
1. What are the factors affecting “Retraining” in a hospital?
2. Write a short note on Finance in Hospitals?
3. Describe the Negotiating system for Hospitals rates?
4. Write down the different members of Appointment committee of the hospital?
END OF SECTION A
Section B: Caselets (40 marks)
6
IIBM Institute of Business Management
Examination Paper of Health & Hospital Management
 This s  ection consists of Caselets. 
 Answer all the questions. 
 Each caselet carries 20 marks. 
 Detailed information should form the part of your answer (Word limit 200 to 250 words). 
Caselet 1
Rakesh and Gagan were two brothers who had graduate in Medicine in the year 1979. Both
established themselves as successful practitioners. In 1992, they decided to set up their own hospital
as both were familiar with the nitty-gritty of the profession after spending a decade as successful
practitioners. In the year 1994, the concept was concretized when three floors Arogya Hospital with a
bed capacity of 60 came into existence at Gwalior. The facilities provided by the hospital were
pathology, X-ray, blood bank and ICU. In the year 1998, the number of beds were increased to 100
with the addition of a fourth floor. In the year 2005, a fifth floor was added and the hospital started
offering services like radiology, 3D spiral, C. Tscan, colourdoppler, pathology, blood bank, C.C.U.,
O.T., maternity unit, emergency and trauma services, in-patient accommodation, canteen,
telecommunication and entertainment.
The hospital had 35 nurses and 55 class four employees. The main task of the class four
employees was to maintain the cleanliness of the hospital. Besides this, they were also entrusted with
the task of sponging, bed setting and shifting of the patients. Salary paid to these employees was
between Rs. 1200/- to Rs. 1800/- per month. The hospital staff was divided into different classes of
employees. Class one comprised of MBBS, MD, MS, and Administrative Officers. Class three
comprised of Technicians and Nurses. Class four comprised of Ayabais, Sweepers and Guards.
Hospital had 11 full time doctors, out of whom 7 were duty doctors (MBBS), 2 full time MD for ICU
and 2 full time in-house surgeons (MS). Besides this, the hospital had 50 visiting doctors who
operated on a turnkey basis. These doctors had their own clinics in different parts of the city and as
per requirement, they admitted their patents in the hospital. There was a mutual agreement between
the doctors and the hospital that the hospital would charge the patients and out of it the doctors would
receive their fees along with a percentage from the hospital share. The patients treated by the hospital
were patients requiring intensive care and minor illnesses. Out of the cases reported in the hospital,
60-75% were maternity and were referred to the hospital by leading gynaecologists of the city, Dr.
Savita and Dr. Manorama. To help the doctors in the treatment of patients, work-instructions for
Resident Doctors, Supervisors, Wardboys / Ayabais and Sweeper boys/ bais were prepared by the
newly appointed Hospital-Administrator Priya. These instructions were prepared in English and were
hung on the walls of the enquiry counter. After a span of one month, Priya resigned from the hospital
on account of some personal reasons.
By the end of the year 2004, Ritu, a fresh post-graduate in Hospital-Administration from
Gwalior, was appointed as an Administrative Officer or take charge of the overall activities of the
hospital. Her role was to monitor the activities of employees of class three and four and various other
activities related to the functioning of the Hospital. The first task before her was to improve the
cleanliness of the hospital. She found that the toilets were not cleaned properly and the room hygiene
was dismal. She started making regular visits to all the wards and rooms in the hospital to observe and
monitor the employees lacked a human touch. To add to this, the patients also complained that the
employees demanded money for the services. After analyzing the situation, she came to the
conclusion that lack of motivation among the class four employees was one of the major factors
responsible for the pathetic condition prevailing in the hospital. Lack of motivation among the class
four employees was also visible in the form of high employee turnover, work negligence, absenteeism
and complaining behaviour. High absenteeism among the class four employees resulted in work
overload for sincere employees, as they were forced to work in the next shift. This was a regular
feature in the hospital as a result of which employees often remained stressed and therefore, less
committed towards their work. Although, they were being provided with dinner and snacks at the
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IIBM Institute of Business Management
Examination Paper of Health & Hospital Management
expense of the hospital, as a gesture of goodwill for those who worked over time for the hospital. She
also found that the workers were not reporting for their duty on time, despite their arrival in the
hospital on time.
The second reason, which she identified for lack of hygienic condition in the hospital was that the
visiting hours for the visitors were not specified, so there was a continuous flow of visitors round the
clock, which hampered and affected the cleaning activity of the hospital. It was found that the
patients‟ rooms were always full of visitors who would not mind taking their meals in the room/ward.
She felt that there was no solution to visitors‟s problem, as this was an integral part of the
promotional strategy of the management. She also found that the work-instructions given to the
hospital-staff was in English language and it was difficult for class four employees to understand
them. Ritu translated all these instructions in Hindi so that class four employees could understand and
implement them.
Ritu had the daunting task to reduce the absenteeism and make the employees more committed to
their work and felt that a reward of Rs. 200, if given to an employee who remained present for 31
days could perhaps motivate the employee to remain regular at the work place. Further, to motivate to
perform, she decided to systematize the performance appraisal system by identifying performers and
non-performers. This being her first job, she was apprehensive about performance appraisal. The
employees were to be classified into three groups A, B and C, „A‟ was for high performers, „B‟ was
for average performers and „C‟ was for poor performers. It was decided that the employees in the
grade „A‟ would receive the highest increment followed by „B‟ and „C‟. To make the performance
appraisal objective, she identified various activities on which the employees could be appraised. To
make the performance appraisal system more objective, a two-tier appraisal system was developed by
her. In the first phase, the employees were to be rated regularly on the identified activities by patients
and their attendants. In the second phase, observation of doctors and nurses was to be considered.
Although Ritu had full cooperation from the hospital management, yet she was apprehensive about
the employee‟ acceptance of the new system. She had to wait and watch.
1. Critically evaluate the factors identified by Ritu for enhancing organizational effectiveness?
2. Describe a performance appraisal system that you will recommend to Ritu for evaluating the
employees?
Caselet 2
The management of a hospital, faced with a resource crunch embarked on a cost containment
programme. Instructions were issued to various clinical, supportive and utility services to identify the
areas where cost containment could be effectively implemented without compromising with the
patient care facilities.
The hospital had both the centralized and the decentralised purchasing system. The officer-incharge
of the Emergency Department of the hospital, Dr. Systematic was a qualified and trained
hospital administrator. He systematically commenced analysis of the various activities and procedures
in vogue in the Emergency Department.
Dr. Systematic found out that the Emergency Department in addition to the glass syringes
purchased 9000 disposable syringes per annum. The interval of ordering was 30 days. The cost of
each disposable was Rs. 20/-. The ordering cost per order was Rs. 15/- and the carrying cost were
15% of the average inventory per year. He calculated the Economic Order Quantity, lot size of
inventory per month, storage cost and other inventory related costs and analysed the optimum interval
of ordering. He forwarded these results along with the other cost containment measures of the
Emergency Department to the hospital management. The recommendations of Dr. Systematic were
implemented and used as a model for other departments of the hospital. Dr. Systematic for effective
analysis and appraisal was honoured with the Doctor of the year award by the Hospital Management.
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IIBM Institute of Business Management
Examination Paper of Health & Hospital Management
1. What are the assumptions made by Dr. Systematic for their inventory model?
2. Do you recommend any further suggestion for inventory costs in a hospital?
END OF SECTION B
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 150 to 200 words). 


1. Write in brief about structure and function of Hospital organization?
2. Write down the following terms:
1) Labour Relation System.
2) Organization of Hospital Workers.
END OF SECTION C
S-2-300813
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IIBM Institute of Business Management


BUSINESS COMMUNICATION IIBM ONGOING EXAM ANSWER SHEETS PROVIDED

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Business Communication
Section A: Objective Type & Short Questions (30 marks)
 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 4 marks each.
Part one:
Multiple choice:
1. __________is an essential function of Business Organizations:
a. Information
b. Communication
c. Power
d. None of the above
2. Physiological Barriers of listening are:
a. Hearing impairment
b. Physical conditions
c. Prejudices
d. All of the above
3. Which presentation tend to make you speak more quickly than usual:
a. Electronic
b. Oral
c. Both „a‟ and „b‟
d. None of the above
4. What is the main function of Business Communication:
a. Sincerity
b. Positive language
c. Persuasion
d. Ethical standard
5. The responsibilities of the office manager in a firm that produces electronics spares is:
a. Everything in the office runs efficiently
b. Furniture and other equipment in the office is adequate
c. Processing all the incoming official mail and responding to some
d. All of the above
Examination Paper of Business Communication
2
IIBM Institute of Business Management
6. Labov‟s Storytelling Model based on:
a. Communication through speech
b. Language learning
c. Group Discussions
d. None of the above
7. Diagonal Communication is basically the:
a. Communication across boundaries
b. Communication between the CEO and the managers
c. Communication through body language
d. Communication within a department
8. How to make Oral Communication Effective?
a. By Clarity
b. By Brevity
c. By Right words
d. All of the above
9. Direct Eye contact of more than 10 seconds can create:
a. Discomfort & Anxiety
b. Emotional relationship between listeners and speakers
c. Excitement
d. None of the above
10. Encoding means:
a. Transmission
b. Perception
c. Ideation
d. None of the above
Part Two:
1. Define 7C‟s of effective communication.
2. Explain „Space Language‟.
3. Differentiate between good listeners and bad listeners.
4. List the different types of business report.
5. Define „Kinesics‟.
END OF SECTION A
Examination Paper of Business Communication
3
IIBM Institute of Business 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
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 the misunderstanding?
2. Discuss the main features involved in this case.
Caselet 2
I don‟t want to speak to you. Connect me to your boss in the US,” hissed the American on the
phone. The young girl at a Bangalore call centre tried to be as polite as she could. At another call
centre, another day, another young girl had a Londoner unleashing himself on her, “Young lady,
do you know that because of you Indians we are losing jobs?”
The outsourcing backlash is getting ugly. Handling irate callers is the new brief for the young
men and women taking calls at these outsourced job centres. Supervisors tell them to be „cool‟.
Avinash Vashistha, managing partner of NEOIT, a leading US-based consultancy firm says,
“Companies involved in outsourcing both in the US and India are already getting a lot of hate
mail against outsourcing and it is hardly surprising that some people should behave like this on
the telephone.” Vashistha says Indian call centre‟s should train their operators how to handle
such calls. Indeed, the furor raised by the Western media over job losses because of outsourcing
Examination Paper of Business Communication
4
IIBM Institute of Business Management
has made ordinary citizens there sensitive to the fact that their calls are being taken not from
their midst, but in countries such as India and the Philippines.
The angry outbursts the operators face border on the racist and sexist, says the manager of a call
centre in Hyderabad. But operators and senior executives of call centres refuse to go on record
for fear of kicking up a controversy that might result in their companies‟ losing clients overseas.
“It‟s happening often enough and so let‟s face it,” says a senior executive of a Gurgaon call
centre, adding, “This doesn‟t have any impact on business.”
Questions
1. Suppose you are working as an operator in a call centre in India and receiving calls
from Americans and Londoners. How would you handle such calls?
2. Do you agree with the view such abusive happenings on the telephone do not have any
impact on business?
END OF SECTION B
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. What do you by Communication Barriers? How and why do they occur? What can be
done to overcome the Barriers to Communication?
2. Define and explain the term Negotiation and also briefly explain the phases of
Negotiation.
END OF SECTION C
S-2-250613


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International Business 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 5 marks each.
Part One:
Multiple choices:
1. What is the series consideration for strategy implementation?
a. Strategic orientation
b. Location
c. Dimensions
d. Both (a) & (b)
2. The major activity in global marketing is:
a. Pricing policies
b. Product lines
c. Market assessment
d. All of the above
3. The third „P‟ in the international marketing mix is:
a. Product
b. Price
c. Promotion
d. Place
4. The European Economic Community was established in____________
a. 1958
b. 1975
c. 1967
d. 1957
5. Environment Protection Act on______________
a. 1986
b. 1967
c. 1990
d. None of the above
6. People‟s attitude toward time depend on:
a. Language
b. Relationship
c. Culture
Examination Paper of International Business Management
2
IIBM Institute of Business Management
d. All of the above
7. Culture necessitates adaption of :
a. Product
b. Price
c. Promotion
d. Place
8. The legal term for brand is:
a. Symbol
b. Name
c. Trade mark
d. All of the above
9. FDI flows are often a reflection of rivalry among firms in____________
a. Global market
b. Indian market
c. International market
d. None of the above
10. ISO certification is:
a. Expensive process
b. Elaborate process
c. Evaluative Process
d. Both (a) & (b)
Part Two:
1. What do understand by „Inward-oriented Policies‟?
2. What is „Factor Endowments Theory‟?
3. Explain the term „Totalitarianism‟.
4. Write about „Persistent Dumping‟.
END OF SECTION A
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 200 to 250 words).
Caselet 1
Examination Paper of International Business Management
3
IIBM Institute of Business Management
THE EU’S LAGGING COMPETITIVENESS
In a report produced for the European Commission, published in November 1998, it was argued that
the EU lags behind the USA and Japan on most measures of international competitiveness. Gross
domestic product per capita, sometimes used as an indicator of international competitiveness at the
country level, was 33 per cent lower in the EU as a whole than in the USA and 13 per cent lower
than in Japan. The EU‟s poor record in creating employment was singled out for particular criticism.
As this appeared to apply across the board in most industrial sectors, it suggested that the EU‟s poor
performance related to the business environment in general and, in particular, to the inflexibility of
Europe‟s labour markets for goods and services. A shortage of risk capital for advanced
technological development and high cost and inefficiency of Europe‟s financial services were also
highlighted by the report. For one reason or another, European industries generally lag behind in
technology industries. If measured by the number of inventions patented in at least two countries, the
USA is well ahead of most European countries, as well as Japan. Despite these shortcomings, the
report‟s authors focus attention on flexible markets, market liberalisation, and the creation of a
competitive business environment rather than on targeted intervention by the EU or national
authorities.
Questions:
1. Is gross domestic product per capita a useful indicator of International competitiveness in the EU?
2. Is it fair to point the blame for the EU‟s poor international competitiveness at inflexible labour
markets, regulated goods and services markets, and a general lack of competition? What
alternative explanations might be suggested?
Caselet 2
PERU
Peru is located on the west coast of South America. It is the third largest nation of the continent (after
Brazil and Argentina), and covers almost 500,000 square miles (about 14 per cent of the size of the
United States). The land has enormous contrasts, with a desert (drier than the Sahara), the towering
snow-capped Andes mountains, sparkling grass-covered plateaus, and thick rain forests. Peru has
approximately 27 million people, of which about 20 per cent live in Lima, the capital. More Indians
(one half of the population) live in Peru than in any other country in the western hemisphere. The
ancestors of Peru‟s Indians were the famous Incas, who built a great empire. The rest of the
population is mixed and a small percentage is white. The economy depends heavily on agriculture,
fishing, mining, and services. GDP is approximately $115 billion and per capita income in recent
years has been around $4,300. In recent years the economy has gained some relative strength and
multinationals are now beginning to consider investing in the country. One of these potential
investors is a large New York based that is considering a $25 million loan to the owner of a Peruvian
fishing fleet. The owner wants to refurbish the fleet and add one more ship. During the 1970s, the
Peruvian government nationalised a number of industries and factories and began running them for
the profit of the state. In most cases, these state-run ventures became disasters. In the late 1970s, the
fishing fleet owner was given back his ships and are getting old and he needs an influx of capital to
make repairs and add new technology. As he explained it to the NEW YORK banker: “fishing is no
longer just un art. There is a great deal of technology involved. And to keep costs low and be
competitive on the world market , you have to have the latest equipment for both locating as well
as catching and then loading and unloading the fish.”Having reviewed the fleet owner‟ operation, the
large multinational bank believes that the loan is justified. The financial institution is concerned ,
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IIBM Institute of Business Management
however , that the Peruvian government might step in during the next couple of years and again
take over the business . If this were to happen, it might take an additional decade, for the loan to be
repaid. If the government were to allow the fleet owner to operate the fleet the way he has over the
last decade, the loan could be rapid within seven years. Right now, the bank is deciding on the
specific terms of the agreement. Once these have been worked out , either a loan officer will fly
down to lima and close the deal or the owner will be asked to come to NEW YORK for the signing.
Whichever approach is used, the bank realize that final adjustments in the agreement will have
to be made on the spot. Therefore, if the bank sends a representative to Lima, the individual will have
to the authority to commit the bank to specific terms. These final matters should be worked out within
the next ten days.
Questions:
1. What are some current issues Facing Peru? What is the climate for doing business in Peru today?
2. Would the bank be better off negotiating the loan in New York or in Lima? Why?
END OF SECTION B
Section C: Applied Theory (30 marks)
 This section consists of Long Questions.
 Answer all the questions.
 Each question carries 15 marks.
 Detailed information should form the part of your answer (Word limit 150 to 200 words).
1. Imagine that you are the director of a major international lending institution supported by funds
from member countries. What one area in newly industrialized and developing economics would
be your priority for receiving development aid? Do you suspect that any member country will be
politically opposed to aid in this area? Why or Why not?
2. The principle problem in analysing different forms of export financing is the distribution of risks
between the exporter and the importer. Analyse the following export financing instruments in this
respect:
(a) Letter of Credit
(b) Cash in advance
(c) Draft
(d) Consignment
(e) Open Account
END OF SECTION C
Examination Paper of International Business Management
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IIBM Institute of Business Management
Examination Paper MM.100
Global Marketing Management
Section A: Objective Type & Short Questions (30 Marks)
 This section consists of Multi Choice & Short Note type questions.
 Answer all the questions.
 Part One carries 1 mark each & Part Two carries 5 marks each.
Part One:
1. All the ethnocentric orientations are collectively called______________
2. Which of the following comes under benefits of Global marketing?
a. Endurance
b. Sales Promotion
c. Diversification
d. All of the above
3. The Polycentric orientation is the opposite of ethnocentrism. (T/F)
4. NAFTA stands for____________
5. ______________refers to the ability of the product and the company from that of the competitors
a. Positioning
b. Differentiation
c. Customer value
d. None
6. CAT stands for _______________
7. Cave dwellers are______________
8. LIFO stands for life in fire option.(T/F)
9. Starbursts are _______________
10. _____________is an advantage over competitors gained by offering consumers greater value
Part Two:
1. What are the implications of tariffs in the Global Marketing?
2. Write a short note on “Diffusion Theory”.
3. Discuss the concept of competitive marketing strategies.
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IIBM Institute of Business Management
4. Discuss the importance of marketing mix.
END OF SECTION A
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 200 to 250 words).
Caselet 1
The competitive advantage of nations and the competitiveness of locations have become important
topics in economic policy. Competitiveness is productivity; competitiveness is what the world
economic forum defines as the set of institutions and policies that determine the level of
productivity. There is no single determinant of competitiveness, there‟s no single determinant of
productivity.
Things that matter for example are the macroeconomic stability of a country, the soundness of
institutions whether the judiciary for example is independent or favors particular sectors or
businesses, whether the government acts in efficient ways or in sectarian ways, other determinants of
competitiveness involve market efficiency, labour market flexibility, and financial market flexibility.
The whole growth competitiveness index that is the index that has been used over the least five or
six years by the world economic forum captures the three big concepts: macroeconomic stability,
government institutions and innovations.
1. What are the indicators of global competitiveness? Discuss the new tools to determine global
competitiveness.
Caselet 2
In this new millennium, few business houses can afford a turn a blind eye to global business
opportunities. According to the latest Mckinsey Global Survey, top global executives believe that the
growing number of consumers in emerging markets will be the most important trend for global
business during the next five years. On 15th April 1994, trade ministers of 123 countries signed the
final Act of the GATT Uruguay Round of negotiations at Marrakech, bringing the WTO into being
on 1st January 1995.
The object of the Act is the liberalization of world trade. By it member countries undertake to apply
fair trade rules covering commodities, services and intellectual property. It provides for the lowering
of tariffs on industrial goods and tropical products; the abolition of import duties on a variety of
items; the progressive abolition of quotas on garments and textiles; the gradual reduction of trade
distorting subsidies and import barriers, and agreements on intellectual property and trade in
services.
1. Discuss the provisions of world Trade Organization (WTO). What are implications of WTO,
agreements on international business?
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END OF SECTION B
Section C: Applied Theory (30 marks)
 This section consists of Long Questions.
 Answer all the questions.
 Each question carries 15 marks.
 Detailed information should form the part of your answer (Word limit 150 to 200 words).
1. By marketing in a foreign country must a firm automatically utilize geographic segmentation or
some other segmentation basis discuss.
2. Distinguish between direct and indirect selling channels. What are the advantages and
disadvantages of each?
END OF SECTION C
S-2-300813


HUMAN RESOURCE MANAGEMENT IIBM ONGOING EXAM ANSWER SHEET PROVIDED

HUMAN RESOURCE MANAGEMENT IIBM ONGOING EXAM ANSWER SHEET PROVIDED WHATSAPP 91 9924764558

CONTACT:

DR. PRASANTH MBA PH.D. DME MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com
Human Resource Management
Subject Code-B102
Section A: Objective Type & Short Questions (30 marks)
 This section consists of Multiple Choice and Short Answer type questions.
 Answer all the questions.
 Objective Question carries 1 mark each &Short Question carries 5 marks each.
Part One
Multiple Choices:
1. It is a cultural attitude marked by the tendency to regard one’s own culture as superior to others
a. Geocentrism
b. Polycentrism
c. Ethnocentrism
d. Egocentrism
2. It is the systemic study of job requirements & those factors that influence the performance of
those job requirements
a. Job analysis
b. Job rotation
c. Job circulation
d. Job description
3. This Act provides an assistance for minimum statutory wages for scheduled employment
a. Payment of Wages Act, 1936
b. Minimum Wages Act, 1948
c. Factories Act, 1948
d. Payment of Gratuity act, 1972
4. __________ is the actual posting of an employee to a specific job
a. Induction
b. Placement
c. Attrition
d. None
5. Broadening an individual’s knowledge, skills & abilities for future responsibilities is known as
a. Training
b. Development
c. Education
d. Mentoring
Examination Paper of Human Resource Management
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IIBM Institute of Business Management
6. Change that is designed and implemented in an orderly and timely fashion in anticipation of
future events
a. Planned change
b. Technology change
c. Structural change
d. None
7. It is a process for setting goals and monitoring progress towards achieving those goals
a. Performance appraisal
b. Performance gap
c. Performance factor
d. Performance management system
8. A method which requires the rates to provide a subjective performance evaluation along a scale
from low to high
a. Assessment centre
b. Checklist
c. Rating scale
d. Monitoring
9. It is the sum of knowledge, skills, attitudes, commitment, values and the liking of the people in an
organization
a. Human resources
b. Personal management
c. Human resource management
d. Productivity
10. A learning exercise representing a real-life situation where trainees compete with each other to
achieve specific objectives
a. Executive development
b. Management game
c. Programmed learning
d. Understudy
Part Two:
1. What is the importance of Career Planning in industry?
2. List the various features of HRM.
3. How can you explain the concept of Performance Appraisal?
4. Differentiate between on- the- job and off- the- job training.
END OF SECTION A
Examination Paper of Human Resource Management
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IIBM Institute of Business 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 150-200 words).
Caselet 1
Uptron Electronics Limited, is a pioneering and internationally reputed firm in the electronics
industry. It is one of the largest firm in the country. It attracted employees from internationallyreputed
institute and industries by offering high salaries, perks, etc. It has advertized for the position
of an electronic engineer recently. Nearly 150 candidates applied for the jobMr. Sashidhar, an
electronics Engineering Graduate from the Indian Institute Of Technology with 5 years working
experience in a medium sized electronics firm, was selected from among the 130 candidates who took
tests and interview. The interview board recommended an enhancement in his salary by Rs 5,000
more than his present salary at his request. Mr Sashidhar was very happy to achieve this and he was
congratulated by a number of people including his previous employer for his brilliant interview
performance, and wished him good luck.
Mr Sashidhar joined Uptyron Electronics Ltd., on 21st January, 2002, with greater enthusiasm. He
also found his job to be quite comfortable and a challenging one and he felt it was prestigious to work
with this company during the formative years of his career. He found his superiors as well as
subordinates to be friendly and cooperative. But this climate did not live long. After one year of his
service, he slowly learnt about a number of unpleasant stories about the company, management, the
superior subordinate relations, rate of employee turnover, especially at higher level But he decided to
stay on as he has promised several things to the management in the interview. He wanted to please
and change the attitude of management through his diligent performance, firm commitment and
dedication. He started maximizing his contributions and the management got the impression that Mr.
Sashidhar had settled down and will remain in the company.
After some time, the superiors started riding rough- shod over Mr Sashidhar. He was overloaded with
multifarious jobs. His freedom in deciding and executing was cut down. He was ill treated on a
number of occasions before his subordinates. His colleagues also started assigning their
responsibilities to Mr Sashidhar. Consequently there were imbalances in his family life and
organizational life. But he seemed to be calm and contented. Management felt that Mr Sashidhar had
the potential to bear with many more organizational responsibilities.
So the general manager was quite surprised to see the resignation letter of Mr Sashidhar along with a
cheque equivalent to a month’s salary one fine morning on 18th January, 2004. The General Manager
failed to convince Mr Sashidhar to withdraw his resignation. The General Manager relieved him on
25th January, 2004. The General Manager wanted to appoint a committee to go into the matter
immediately, but dropped the idea later.
Questions:
1. What is wrong with the recruitment policy of the company?
2. Why did Mr. Sashidhar’s resignation surprise the General Manager?
Examination Paper of Human Resource Management
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IIBM Institute of Business Management
Caselet 2
The contexts in which human resources are managed in today’s organizations are constantly,
changing. No longer do firms utilize one set of manufacturing processes, employ a homogeneous
group of loyal employees for long periods of time or develop one set way of structuring how work is
done and supervisory responsibility is assigned. Continuous changes in who organizations employ
and what these employees do require HR practices and systems that are well conceived and
effectively implemented to ensure high performance and continued success.
1. Automated technologies nowadays require more technically trained employees possessing
multifarious skills to repair, adjust or improve existing processes. The firms can’t expect these
employees (Gen X employees, possessing superior technical knowledge and skills, whose attitudes
and perceptions toward work are significantly different from those of their predecessor organizations:
like greater self control, less interest in job security; no expectations of long term employment;
greater participation urge in work activities, demanding opportunities for personal growth and
creativity) to stay on without attractive compensation packages and novel reward schemes.
2. Technology driven companies are led by project teams, possessing diverse skills, experience and
expertise. Flexible and dynamic organizational structures are needed to take care of the expectations
of managers, technicians and analysts who combine their skills, expertise and experience to meet
changing customer needs and competitive pressures.
3. Cost cutting efforts have led to the decimation of unwanted layers in organizational hierarchy in
recent times. This, in turn, has brought in the problem of managing plateau employees whose careers
seem to have been hit by the delivering process. Organizations are, therefore, made to find alternative
career paths for such employees’
4. Both young and old workers, these days, have values and attitudes that stress less loyalty to the
company and more loyalty to oneself and one’s career than those shown by employees in the past,
Organizations, therefore, have to devise appropriate HR policies and strategies so as to prevent the
flight of talented employees
Question:-
1. Discuss that technological breakthrough has brought radical changes in HRM.
END OF SECTION B
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 150-200 words).
1. Several types of interviews are commonly used depending on the nature & importance of the
position to be filled within an organization. Explain the different types of Interviews.
2. How would you explain Organizational Change and Development?
END OF SECTION C
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