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CORPORATE LAW XIBMS MBA EXAM ANSWER SHEET

Xaviers Institute of Business Management Studies

MARKS: 80
COURSE: MBA
SUB: CORPORATE LAW

N.B.: 1 Attempt any Twelve Questions
2) Last two Questions are compulsory
Q.1. In the following statements only one is correct statement. Explain Briefly? (5 Marks)
i) An invitation to negotiate is a good offer.
ii) A quasi-contract is not a contract at all.
iii) An agreement to agree is a valid contract.

Q.3. The proprietors of a medical preparation called the “Carbolic Smoke Ball” published in several newspapers the following advertisement:-
“£ 1000 reward will be paid by the Carbolic Smoke Ball Co. to any person who contracts the increasing epidemic influenza after having used the Smoke Ball three times daily for two weeks according to printed directions supplied with each ball. £ 1000 is deposited with the Alliance Bank showing our sincerity in the matter.
On the faith in this advertisement, the plaintiff bought a Smoke Ball and used it as directed. She was attacked by influenza. She sued the company for the reward. Will she succeed? Explain Briefly (5 Marks)
Q.4. Fazal consigned four cases of Chinese crackers at Kanpur to be carried to Allahabad on the 30th May, 1987. He intended to sell them at the Shabarat festival of 5th June 1987. The railway discovered that the consignment could not be sent by passenger train and asked Fazal either to remove them or authorize their dispatch by goods train. He took no action and the goods arrived at Allahabad a month after they were booked.
Fazal filed a suit against Railways for damages due to late delivery of the goods which deprived him of the special profits at the festival sale. Decide & explain briefly ? (5 Marks)

Q.6. In each set of statements, only one is correct. State the correct statements & Explain briefly?
a) i) A bailee has a general lien on the goods bailed.
ii) The ownership of goods pawned passes to the pawnee.
iii) A gratuitous bailment can be terminated by the bailor even
before the stated time.
b) i) A substituted agent is as good an agent of the agent as a sub-
agent.
ii) An ostensible agency is as effective as an express agency.
iii) A principal can always revoke an agent’s authority. (5 Marks)
Q.7. A, an unpaid seller, sends goods to B by railway. B becomes insolvent
And A sends a telegram to Railway authorities not to deliver the goods to B. B. goes to the Parcel office of Railway Yard and by presenting R. R. (Railway Receipt) takes delivery of the goods and starts putting them in the cart. Meanwhile the Station Master comes running with the telegram in hand and takes possession of the goods from B. Discuss the rights of A and B to the goods in possession of Railway authorities. (5 Marks)

Q.8. X needs Rs. 10,000 but cannot raise this amount because his credit is not good enough. Y whose credit is good accommodates. X by giving him a pronote made out in favour of X, though Y owes no money to X. X endorses the pronote to Z for value received. Z who is holder in due course demands payment from Y. Can Y refuse and plead the arrangement between him and X Explain briefly? (5 Marks)

Q.9. Will C has the right of further negotiation in the following cases: (B signs the endorsements) Explain briefly? (5 Marks)
i) ‘Pay C for my use’
ii) ‘Pay C’)

iii) ‘Pay C or order for the account of B’

Q.10. A promissory note was made without mentioning any time for payment. The holder added the words’ on demand on the face of the instrument. State whether it amounted to material alteration and explain the effect of such alteration. Explain briefly? (5 Marks)
Q.11. State whether the following instruments are valid promissory notes:
i) I promise to pay Rs. 5000 to B on the dearth of ‘B’s uncle provided that D in his will gives me a legacy sufficient for the promise of payment of the said sum.
ii) I hereby acknowledge that I owe X Rs. 5,000 on account of rent due and I agree that the said sum will be paid be me in regular installments.
iii) I acknowledge myself indebted to B in Rs. 5000 to be paid on demand for value received. (5 Marks)

Q.12. A Payee holder of a bill of exchange. He endorses it in blank and delivers it to B. B endorses in full to C or order. C without endorsement transfers the bill to D. State giving reasons whether D as bearer of the bill of exchange is entitled to recover the payment from A or B or C. Explain briefly? (5 Marks)

Q.13. Write a short note on the Doctrine of Indoor Management? Explain briefly? (5 Marks)

Q.14. The shareholders at an annual general meeting passed a resolution for the payment of dividend at a rate higher than that recommended by the Board of Directors. Examine the validity of the resolution. Explain briefly? (5 Marks)

Q.15. In a prospectus issued by a company the Managing Director stated that the company had paid dividend every year during 1921 – 27, which was a fact. However, the company had sustained losses during the relevant period and had paid dividends out of secret reserves accumulated in the past. Examine the consequences of the observation made by the Managing Director. Explain briefly? (5 Marks)

Q.16. In a prospectus issued by a company the Managing Director stated that the company had paid dividend every year during 1921-27, which was a fact. However, the company had sustained losses during the relevant period and had dividends out of secret reserves accumulated in the past. Examine the consequences of the observation made by the Managing Director. Explain briefly? (5 Marks)

Q.17. A buys from B 400 shares in a company on the faith of a share certificate issued by the company. A tender to the company a transfer deed duly executed together with B’s share certificate. The company discovers that the certificate in the name of B has been fraudulently obtained and refuses to register the transfer. Advise A. Explain briefly? (5 Marks)

Q.18. A insured his house against fire. Later while insure, A killed his wife, severely injured his only son, set fire to the house and died in the fire. The son survived and sued the insurer for the fire loss, advice the insurer. Explain briefly? (5 Marks)

Q.19. a) Satrang Singh admitted his only infant son in a private nursing home. As a result of strong dose of medicine administered by the nursing attendant, the child has become mentally retarded. Satrang Singh wants to make a complaint to the District Forum under the Consumer Protection Act, 1986 seeking relief by way of compensation on the ground that there was deficiency in service by the nursing home. Does his complaint give rise to a consumer dispute? Who is the consumer in the instant case? Explain briefly?
b) Smart booked a motor vehicle through one of the dealers. He was informed subsequently that the procedure for purchasing the motor vehicle had changed and was called upon to make further payment to continue the booking before delivery. On being aggrieved, Smart filed a complaint with the State Commission under the Consumer Protection Act, 1986. Will he succeed? Explain briefly?
c) Brittle and Company, a small-scale industry, sought nursing and financing facilities from its bankers by means of grant of further advances and adequate margin money in anticipation of good demand for its products. In failing to obtain this and having become sick, it proceeds against its bankers under the Consumer Protection Act, 1986, Will it succeed? Explain briefly? (5 Marks)

Q.20. X who was working as a truck driver had taken a general insurance policy to cover the risk of injuries for a period from 1.11.1998 to 30.11.1999. He renewed the policy for a further period of one year on 10.11.1999. On the same day, he met with an accident and suffered multiple injuries including fractures. X submitted the claim along with documents to the insurance company. The insurance company repudiated the claim on the ground that the premium for the renewed policy was received in the office only at 2.30 p.m. on 10.11.1999, while the accident had taken place at 10.00 a.m. on that day and hence there was no policy at the time of accident. Will X succeed if he files a complaint against the insurance company for this claim? Explain briefly? (5 Marks)

Q.21. Avinash booked his goods with Superfast Freight Carriers at Delhi for being carried to Ferozabad. The goods receipt note mentioned that all the disputes would be subject to jurisdiction of the Mumbai Court. Avinash lodged a complaint for certain deficiency in service against the transporter in the District Forum at Delhi. Superfast Carriers contested that District Forum at Delhi had no jurisdiction to entertain the complaint as the head office of the transporter was at Mumbai and the jurisdiction has been clearly stated in the goods receipt not. Is the contention of the transporter tenable? Explain briefly? (5 Marks)

Q.22. With reference to the provisions of the Consumer Protection Act, 1986, decide the following giving reasons in support of your answer.
i) Sukh Dukh Ltd. dispatched certain consignments of goods by road through Fastrack Roadways Ltd. The goods were unloaded and stored in a godown enroute on the suggestion of consignee. A fire broke out in the neighbouring godown spread to the godown and goods were destroyed. The Fastrack Roadways Ltd. claimed that there was neither negligence nor deficiency in service on their part and goods were being carried at “Owner risk” and since no special premium was paid, they were not responsible for the loss caused by fire. Whether Fastrack Roadways Ltd. is liable to pay damages to consignor?
ii) Life Insurance Corporation (LIC) formulated a scheme called ‘salary saving scheme’ under which employees of an organisation could buy an insurance policy. Premium due on each policy was collected by the employer from the salary of the employees nor did it issue any premium notice. When the widow of the deceased employee made a claim to LIC on the death of her husband, the LIC repudiated the claim on the ground that four installments of premium had not been paid. The widow was approached the consumer forum for redressal. Is the LIC liable for deficiency in service? Explain?
iii) Raman booked a ticket from Delhi to New York by Lufthansa Airlines. The airport authorities in New Delhi did not find any fault in his visa and other documents. However, at Frankfurt airport authorities instituted proceedings of verification because of which Raman missed his flight to New York. After necessary verification, Raman was able to reach New York by the next flight. The airline authorities’ tendered apology to Raman for the inconvenience caused to him and also paid as goodwill gesture a sum of Rs. 5,000. Raman intends to institute proceedings under the Consumer Protection Act, 1986 against Lufthansa Airlines for deficiency in service. Will he succeed? (10 Marks )

Q.23. With reference to the provisions of the Consumer Protection Act, 1986, decide the following giving reasons in support of your answer.
i) Sohn sent all relevant documents in an envelope regarding consignment of goods to a buyer in the USA through Fast Service Couriers. The documents did not reach the buyer as a consequence of which the buyer could not take delivery of the goods. By the time the duplicate copies of the document had been received by the buyer, the season of the goods was over. He claimed that he had suffered a loss of US $ 5,000 as a result of the negligence of the courier. The State Commission ordered the payment to be made by the Fast Service Couriers, but the National Commission in appeal reversed the order and ordered payment of US $ 100 only as per the receipt issued by the Fast Service Courier to the consignor at the time of the dispatch of the latter. Advise Sohan.
ii) Mahesh purchased a machine from Astute Ltd. to operate it himself for earning his liverhood. He took the assistance of a person to assist him in operating the machine. The machine developed fault during the warranty period. He filed a claim in the consumer forum against the company for deficiency in service. Astute Ltd. alleged that Mahesh did not operate the machine himself but had appointed a person exclusively to operate the machine. Will Mahesh succeed?
iii) Pillai purchased a car by taking a loan from Kerala cooperative Bank Ltd. and gave post-dated cheques to the bank not only in respect of repayment of loan instalments but also of premium of insurance policy for two succeeding years. On the expiry of the policy. Pillai’s car met with an accident. Will Pillai succeed in getting a claim against the
Bank ? (10 Marks)

BRAND MANAGEMETN XIBMS EXAM ANSWER SHEET

Xaviers Institute of Business Management Studies

Subject Title: Brand Management
Maximum Marks: 80

Question No. 1 is compulsory and is for 16 Marks. Please attempt any 4 questions from question number 2 to 9.

1. Case Study : (Compulsory)
BURNOL

Burnol has been around for six decades as a yellow burns-relief ointment. It has almost become a generic brand. Its yellow colour reminds one of turmeric, the traditional burns-relief remedy.
The brand has been recently acquired by Dr. Morepen (a subsidiary of Morepen Laboratories Ltd.) from Reckit Piramal. The brand has high recall value. Morepen is the brand’s third owner (Boots is the first, Pirmal second).
Burnol’s position in the mind space of the consumer is that of the burns ointment. It is open to marketers to reposition the brand. But sometimes the brand does not budge from its original position. Burnol is a typical example. It is so strong as anti-burn ointment that it has become intractable.
Burnol introduced by Boots started domestic manufacturing in 1948. JWT handled the account. Formerly, it was sold on prescription. In 1960 it became over-the counter (OTC) product.
As Indian housewives depended upon kerosene or wood-fed stoves, Burnol became an integral part of the household. In 1967, Burnol’s application was far widened, to include antiseptic properties against cuts and other wounds. But it did not succeed and Boots reverted to its original anti-burns position. In 1972, Shield was launched by SKF as a competitive brand. It was followed by Medigard by J.L. Morison. But they could not affect Burnol.
In 1980, a commercial on DD showed a daughter entering kitchen and getting burns due to oil splash. The mother uses Burnol and the VO says “Haath jal gaya? Shukar hai ghar mein Burnol jo hai”.
Kitchen became safer in 85s after the switch-over to LPG-based cooking and the use of gas-lighter instead of the match boxes. Burnol started stagnating.
Though the product had high recall, the actual reality was that households did not keep the product handy. Plain water was being recommended to treat burns. Turmeric, as it causes stains, was becoming a liability. The product composition was changed by changing colour from deep yellow to non-staining light yellow. People were coaxed to keep the product within easy reach, Sales showed some improvement.
In 1995, again it was repositioned as antiseptic for multiple usages. The colour was made even lighter. It was given a new perfume. But the brand failed to compete with other antiseptic creams such as Boroline and Dettol. The brand could not be moved from its ‘burns’ spot in the consumer mind. It’s becoming generic as a burns remedy proved to be its cause for stagnation.
In 2000, Burnol was sold to Reckitt Pirmal for 12.5 crore. It became Burnol Plus. It was positioned as ‘first aid cream’. It registered a turnover of ` 6.2 crore in 2002. As Reckit Pirmal joint venture came apart, Burnol was sold to Dr. Morepen in 2003. It is being relaunched in April 2004.

Burns market including dressings stand as ` 39 crore. Antiseptic market stands at ` 210 crore. The old need is passing into history. The strategy should be to retain its original uniqueness, and still broad-base it. There are new dangers such as geysers, irons, ovens and so on. Burnol can become a cream that ensures safety if present. Burnol should be promoted as brand that cares.
Burnol is now marketed by Dr. Morepen Lab as protective cream which should be kept handy always.

Question:
As a Management consultant give your comments on Burnol as a brand.

2. What do you understand by the concept of a Brand? Describe the characteristics of Brands.

3. a. Define the Brand Image. Explain the dimensions of Brand Image.
b. What is meant by Brand Identity? Explain the different elements of Brand Identity.

4. Discuss in detail the different stages of brand building process.

5. a. What is Brand Audit? Explain its importance.
b. Describe the two steps in brand audit.

6. “Positioning is an outcome of our perceptions about the brand relative to the competing brands” – Discuss with examples.

7. How do consumers perceive and choose brands? Discuss.

8. What are the different phases of strategic brand management process?

9. Discuss the “TEN COMMANDMENTS” of Global Branding.

XIBMS MBA CONSUMER BEHAVIOUR EXAM ANSWER SHEET PROVIDED

XIBMS MBA CONSUMER BEHAVIOUR EXAM ANSWER SHEET PROVIDED
XIBMS MBA CONSUMER BEHAVIOUR EXAM ANSWER SHEET PROVIDED
XIBMS MBA CONSUMER BEHAVIOUR EXAM ANSWER SHEET PROVIDED

Xaviers Institute of Business Management Studies
MARKS : 80

SUB: CONSUMER BEHAVIOUR

N. B. : 1) Attempt all Four Case studies
2) All questions carry equal marks.

CASE STUDY 1

Kellogg India ltd.

Top mangers of Kellogg India ltd received unsettling reports of a gradual drop in sales. Managers realized that it would be tough to get the Indian consumer to accept its products. Kellogg banked heavily on the quality of its crispy flakes. But pouring hot milk on the flakes made them soggy and did not take good and not many Indian consumers like to have them with cold milk.

A typical average middle class Indian family did not have breakfast on regular basis like their wetern counterparts. Those who did have breakfast, consumed parathas, idlis , bread, butter, jam, milk tea and local food preparations. According to analysis, a major reason for kellogg’s failure was the fact that the tastes of its product did not suit Indian breakfast habits. Kellogg sources were however quick to assert that the company was not trying to change these habits; the idea was only to launch its products on the health platform and make consumers see the benefit of this healthier alternative. Another reason for low demand was premium pricing adopted by the company

Disappointed with the poor performance, Kellogg decides to launch two of its highly successful brands- chocos and frosties in India. The success of these variants took even Kellogg by surprise and sales picked up significantly. This was followed by the launch of chocos breakfast cereal biscuits.

The success of chocos and Frosties also led to kellogg’s decision to focus on totally Indiansing its flavors in the future. Kellogg also introduced packs of different sizes to suit Indian consumption patterns and purchasing power.

Kellogg tied up with the Indian diet association to launch a nation wide public service initiative to raise awareness about iron deficiency problems. The company has also modified its product, particularly the addition of iron fortification in breakfast cereals.

However, Kellogg continued to have the image of a premium brand and its consumption is limited to a few well of sections of the Indian market.

Question

Question 1:- How effectively Kellogg has met conditions of marketing concept?

Question 2:- Suggest ways how Kellogg can have more influence on consumption behavior of Indian consumer?

Question 3:- SWOT Analysis of Kellogg?

CASE STUDY 2

Amway’s Relationship with Stakeholders

Amway is one of the largest direct sales companies in the world. It continues to be a family owned business which was founded in 1959. Today, it employs 14,000 people worldwide and markets over 450 product lines. Its vision is to help people lead better lives. Its success is largely due to its three million ABOs (Amway Business Owners) spread across 80 countries. Thanks to Amway, these people have a business of their own.
The only shareholders of Amway are the families that own Amway. The communication channels used by Amway to communicate regularly with its internal and external stakeholders are websites, email, events, publications and membership of trade bodies.

Amway sells directly to consumers, without the presence of retail outlets. It has its own supply chain through the ABOs. Amway seeks regular feedback from the ABOs and customers to find out how well it is doing and to improve service. The ABOs are independent small businesses, but depend on Amway suppliers to produce quality products.

Amway’s involvement with communities is a part of its vision to ‘help people lead better lives’. It promotes its corporate social responsibility (CSR) all over the world. Corporate social responsibility at Amway involves supporting social causes, acting in an ethical manner by making good products and supporting its stakeholders in a number of ways. For example, Amway has partnered with the children’s charity UNICEF. It helps provide vaccinations to fight the world’s six most deadly diseases. It has chosen this charity because of its ABOs’ concern about families.

Ethical businesses get actively involved in improving the communities where they work. Amway’s business ethics not only provides a clear framework within which to work, but also gives it a positive business advantage. Its ‘One by One’ program is good for both the environment and for business. This program supports organic farming, seeks to reduce waste and packaging and to switch to renewable energy sources. There is a cost involved in these practices, but this can be balanced against the benefits derived by both the business and the community.

Amway has to balance the needs of its many different stakeholders. It sets high standards of ethics and codes of conduct, in order to make sure that these are upheld. Its CSR program helps the environment, its own employees and underprivileged children all around the world.

Question

Question 1:- Who are the external stakeholders that Amway communicates with?

Question 2:- What communication channels would you recommend to Amway, apart from what is mentioned in the case and why?

Question 3:- stakeholders are the consumer of Amway. Comment

CASE STUDY 3

A Consumer’s Buying Decision Process

Lalith is a stores manager and head of the distribution centre in an Indian company that’s located in one of the developing cities. His family includes his parents who have retired from their respective banking professions, his wife who is working as a librarian in a college, his twin sons who are now eligible for primary school admissions and an unemployed younger sister whose marriage is fixed. Lalith belongs to a middle class segment but more or less, the income level and family saving is good.
Lalith’s parents are conservative in nature. They prefer to spend on the basic necessities and those essential things that make up a living. However, Lalith likes to have a comfortable lifestyle and spends most of his earnings on furnishings and interior decor. Recently, Lalith had bought two air-conditioners but his parents didn’t let him install it in their room. So, he had to put the second one in the children’s room. Lalith often ignores his parent’s advices and does what he feels like doing. He is also planning to purchase a car within a year. His wife doesn’t mind Lalith’s spending habits but she is very particular to ensure that her salary is spent only on the household expenses and the rest goes to the Fixed Deposit of her Bank.
Now, since Lalith’s sister is getting married soon, his parents have insisted on Lalith to spend less and save more so that the marriage ceremony takes place in a splendid way. Lalith’s marriage was a small event because most of the relatives and friends had already informed that they could not attend the occasion for personal reasons. And so, Laith’s parents wanted to invite all the relatives and friends for their daughter’s wedding and make the occasion a grand success. Due to this reason, there are small fights happening in the house and Lalith feels that his income is not enough to meet the requirements. He is getting irritated over small things and he has lost concentration on his work.
Then, one particular working day when Lalith was carrying out his usual routine work at the warehouse he gets a sudden call from the Vice-President (VP) of the company asking him to meet within the next half an hour. He is surprised and at the same time nervous about the meeting wondering what was the meeting about. He delegates some work to his assistant and then hurries to the adjacent building block. The top authorities of the company had their offices in this block. No sooner he enters the building he is called inside the VP’s chamber and after some time when Lalith comes out of the room he realizes that he has received a cash reward for a record work he had accomplished a long time back. The top management even presented him a Certificate of Excellence and a personal letter asking him to lead by example. When he comes back to his office he also realizes that a copy of his certificate was put across the company’s internal e-mails and notice boards. He is very happy with the recognition he deserved especially with the Cash amount he received and commits himself to solving more complicated tasks at the workplace.
Realising the need for a car before his sister’s marriage, he even decides to purchase a car without wasting much time. He takes a friend along when selecting the type of car, the brand, the features and other attributes. Lalith is not particular about the brand but he prefers to have a big, spacious car which also is convenient for long distance traveling. He has an unclear budget above which he is not willing to pay for the car. His friend tells him that while deciding the features, color and other aspects, he may have to spend additional amount as well. At the end, he and his friend list down the three suitable brands that meets Lalith’s considerations. After thinking for about a week, regarding the three car choices, Lalith finally selects one among them. In the next two days, he completes all the formalities and payments with respect to the purchase. He also tells the showroom executives to deliver the car to his home. He already has a driving license but then he decides to keep a driver till he gets the confidence to drive a big car. 2 His parents are also happy seeing that Lalith, his wife and kids are excited about owning a car. Lalith manages to convince his conservative parents that savings are important but spending on finer things in life is not bad as well especially when you are in a position to do so. His sister’s marriage takes place with grandeur and Lalith gets the opportunity to display his big car in front of the guests.

After recognizing Lalith’s family background, status and situation,

Question 1) What do you think are the factors that influence Lalith’s buying behavior in general? According to Maslow’s need hierarchy theory, what are the needs of Lalith as a consumer and as an individual?

Question 2) Identify and analyze Lalith’s decision-making stages when he purchased the car.

CASE STUDY 4

ABC Electronics Ltd. – A Wrong Analysis of Consumer Behavior

ABC Electronics Ltd. was a company established in 1983 by Mr. Manoj Kumar and over the years had emerged as one of the leaders in the growing segment ofthe electronics and home appliances market in India. Currently it has a market share of 30% of the home appliances market. Its product strategy has been to offer a wide range, right from mono stereo, two in ones and sophisticated music systems to televisions, refrigerators, washing machines, ovens and microwave ovens. ABC’s marketing strategy also included offering the above products so as to match the needs and budget of the middle and upper middle classes.

In 1991, Prasad, son of Mr. Manoj Kumar, took over as the Managing Director of the company. Seeing the intense competition in the post liberalization scenario, Prasad was keen to follow the principle that once you have decided on your target customer, you follow him/her relentlessly with attractive offerings. In 1994, he developed a well focused promotion and distribution strategy. The promotion strategy involved an advertising budget of Rs. 10 crores, a special training program for the sales force and offering freebies and various other sales promotion techniques. In terms of distribution, Prasad selected exclusive showrooms and franchisees to display their wide range of products. The location of the exclusive retail outlets was also selected so as to match the perceptions of the consumers as an “exclusive showroom” for them.
However, even after two years of implementing the new promotion and distribution strategy, the sales of ABC Electronics did not pick up to the extent that the company thought it would. Prasad then directed the marketing manager to conduct a study of other retail outlets to know the trend. The results revealed that there was a change in consumers’ perceptions regarding purchasing consumer durables. There seemed to be a
preference for purchasing goods from multi brand, rather than from single brand outlets.

Questions
1. Where do you think Prasad went wrong in his analysis of consumer behavior?
2. Discuss the change in the role of the consumer today, as compared to the consumer five years ago

XIBMS MBA MARKETING MANAGEMENT EXAM ANSWER PROVIDED

XIBMS MBA MARKETING MANAGEMENT EXAM ANSWER PROVIDED
XIBMS MBA MARKETING MANAGEMENT EXAM ANSWER PROVIDED
XIBMS MBA MARKETING MANAGEMENT EXAM ANSWER PROVIDED

Xaviers Institute of Business Management Studies

MARKS : 80

SUB: Marketing Management

N. B.: 1) Attempt all four case studies
2) All questions carry equal marks.

CASE 1 : TRUST TOOTHPASTE

Study the Case entitled “Positioning ‘Trust’ Toothpaste” and give your specific recommendations regarding the action to be taken by the company. Your decision must be based on a careful analysis of the situation given in the case and your answer should be precise and up to the point.

Positioning Trust’ Toothpaste

In September 1990, Mr. Sarin, the Marketing Manager of Deepa Products (P) Limited was wondering what marketing and product positioning strategy the company should follow for launching their two new brands of toothpaste. Trust Night and Trust Regular in a market which was becoming highly competitive.
Deepa Products (P) Ltd. was one of the successful manufacturers of various types of packaging materials for both industrial and consumer products. Established in 1960, the company has shown substantial growth over the years. Much of the company’s growth was attributed to the high quality of its products and also the systematic manner in which its marketing decisions were made.
In 1990, keeping in view the growing market for consumer goods, the top management of the company decided to diversify into new consumer products areas. In the first instance the company thought of entering into the toothpaste market. Depending upon their success in the market, the company would decide their expansion plans into other areas of consumer goods sector.
The company chose to enter toothpaste market simply because the market for toothpaste was growing fast almost by 15 to 20% in India and it provided enough profit opportunities. The market was dominated only by a very few players. Further Mr. Sarin felt that there was scope for capturing a significant market share in the growing toothpaste market, since the company’s products had some unique features to meet the emerging new market segments.
Questions
1. What marketing strategy should be designed by Mr. Sarin to be able to achieve the targeted 5% market share?

2. How should Deepa Products (P) Ltd. position Trust Regular and Trust Night to induce customers to buy it? What should be the key benefits of their toothpastes?

3. Should the company price its products economically, or should it aim for premium pricing?

CASE 2: THE CATERPILLAR TRACTOR COMPANY

Caterpillar Tractor Company (CTC) is a large manufacturing firm headquartered in Illinois, USA. Its familiar ‘CAT” logo and yellow paint are known throughout the world. Indeed in its business, CTC has an estimated 37% of world market. Its closest rival, Japan’s Komatsu has an estimated 15%. A multinational company CTC has manufacturing and dealer representatives throughout the world. The products, which the firm designs, manufactures and markets, can be classified into two basic segments:
Earth moving, construction and materials handling equipment-track type tractors, bulldozers, rippers, track and wheel type loaders, pipe layers, wheel dozers, compactors, wheel scrapers off highway trucks and tractors, motor graders, hydraulic excavators, long skidders, lift trucks and related parts and equipment.
Engines– for earth moving and construction machines on highways trucks, marine, petroleum, agricultural, industrial and electric power generation systems. Engines either, diesel or natural gas, have power ranges from 85 to 1600 horsepower or in generator set versions from 55 to 1200 kilowatts. Turbines range from 10 to 7,900 kilowatts.
CTC’s market success is based to a great extent on its four-point product strategy. First, advances technology is incorporated into machines so that users derive optimal productivity and efficiency. To maintain the flow of product application the organization commits hundreds of millions of dollars each year to research and development. A second product guideline is quality. Within the last ten years several billion dollars have been spent on plant and equipment to ensure reliability in the hostile environments the machines endure. The third aspect of product strategy is to offer a full line of products. This implies machines capable of performing on job sites as small as a residential plot or as large as the Alaskan product line offers over 100 different machines within nearly infinite option/modifications. The fourth and final principle of the product strategy is to design and build only machines that can be produced on an assembly line, to take advantage of manufacturing expertise and efficiency of Caterpillar plant and to provide significant economies of scale.
Questions to be answered
1. How important is new product development to Caterpillar?

2. What sources of new product ideas might a company like caterpillar use?

3. Evaluate CAT as a brand name.

4. Evaluate each of the four points of CTC’s strategy.

CASE 3: ABC HANDLOOMS Ltd.

ABC Handlooms Ltd. (ABC) was established in the year 1991 to manufacture and market handloom furnishings throughout the country. Over the years, it has developed a wide network of handloom units in and around Delhi. ABC manufactures a wide range of furnishings catering to the needs of different strata of society. The pattern of sales of the company during the last three years was as under:
State Percentage Sale
Punjab
Haryana
U.P.
M.P.
Rajasthan
Other states and Union territories

total 65
5
10
10
5
5
100
The market for furnishings was highly competitive. ABC had not only to face competition from well established houses but it had also to face competition from various state government corporations. Besides, the product had to face competition with the imported material, which was freely available. Prices of different types of furnishings differed widely. Private and cooperative channels marketed different brands. The Coops accounted for more than 60 per cent of material sold. Though there was no brand loyalty yet a large manufacturer in Western India was able to market similar products at a marginal premium in Rajasthan and Madhya Pradesh.
Questions:
1. How do you explain the present situation faced by the company?

2. Was it a good idea to enter into a three-year contract with the Cooperative Society? Why?

3. Is it possible to renew the contract with the Cooperative Society? If so, how? Suggest a detailed programme on a crash basis with the budget constraint of Rs. 50, 00, 000.

CASE 4: APEX ELECTRICAL COMPANY LTD.

Mr. Nathan, Sales Manager of Apex Electrical Co. Ltd. had just received a proposal from his Regional Manager at Bangalore for opening a sub-office in Madras and was considering what would be the best decision in the company’s short run as well as long run interest.
The company was in the business of manufacturing and marketing electric motors of a wide range of horse power that could be used as a prime mover in numerous applications. The company’s factory and head office were situated in Bombay and it had its branch offices at New Delhi, Calcutta and Bangalore, each headed by a Regional Manager.
The Regional Office at Bangalore was responsible for sales in Kar¬nataka, Tamil Nadu and Kerala. The company also maintained a godown at Bangalore which was used as the stocking centre for feeding sales in the complete region. The company’s distribution network had grown over several years and as such there was no one rule by which the arrangements could be explained. In Karnataka, due to the proximity of the Regional Headquarters, the distribution, network was closely controlled by the Regional Office. Company had several dealers covering the State and they all purchased goods directly from the Regional Office. All the dealers got a fixed percentage of discounts. The ultimate prices to the consumers were fixed by the company. Each dealer covered a specific area which was generally one to several districts and the company discouraged one dealer interfering in other’s territory. However, in main cities of Bangalore and Mysore, there was more than one dealer who collectively covered the sales in the city. The company salesmen regularly contacted the dealers and the office maintained good marketing information.

Questions:
1. What decision would you take if you were in place of Mr. Nathan?

2. Do you feel the proposal of a new sub-office is economically justified against the stated policy of the company? If yes, why? If no, then how could it be made justifiable?

XIBMS MBA INTERNATIONAL BUSINESS EXAM ANSWER SHEET

XIBMS MBA INTERNATIONAL BUSINESS EXAM ANSWER SHEET
XIBMS MBA INTERNATIONAL BUSINESS EXAM ANSWER SHEET
XIBMS MBA INTERNATIONAL BUSINESS EXAM ANSWER SHEET

Xaviers Institute of Business Management Studies
MARKS: 80 .
SUB: International Business.
N.B.: 1) Attempt any Four Case studies.
2 All questions carry equal marks.

CASE 1
Creating world class quality standards
Introduction
Customers expect to be able to buy products that meet certain standards. Standards can be written down and published for use by manufacturers and service providers. They can be used as guidance. BSI stands for British Standards Institution. It was the world’s first Standards body, and is the National Standards Body for the UK. BSI works in three main fields:
. Setting British and international standards
. Product testing
. Quality management systems (QMS)
Standards are based on agreed best practice. Businesses are keen to use standards to show they have a place in global markets. There are thousands of standards covering all manner of goods and services.
Quality
A quality product or service does what the customer wants it to do. This may differ from market to market. For instance, a cheap football provides enough `quality’ for a village match. For a league match, a better ball would be needed. Many organizations try to build quality into everything they do. They do this by using a QMS. This provides a framework that helps the business to improve in all areas. BSI helps organizations to identify best practice and translates this into standards. BSI publishes almost 20,000 standards and each year adds 2,000 new or revised standards to this list.
The importance of standards
Standards exist at a number of levels. These include:
* International Standards, (ISO). These need to be agreed between countries, so are the most complex
* European Standards (EN)
* British Standards (BS).
BSI contributes to all three.
Standards help protect consumers’ safety. They also promote research. They promote the sharing of knowledge. They help businesses to compete. In markets where it is hard to compete on price, businesses can use standards to help them compete on quality.
The Kitemark
BSI is independent. It works with both the private and public sector. It makes sure that safety and quality standards in the UK and around the world are built into products. BSI also owns the famous Kitemark symbol which you see on many products. It shows that a business has had a product tested to the relevant standard. Schemes cover various products and services. Examples include lighting, 13 amp plugs, motor cycle helmets and car repair garages. The Kitemark shows that the business sees safety and quality as vital. It shows the customer that the product or service has been tested and has reached the relevant Standard. Other symbols are required by law, for instance, CE marking. This shows that a product conforms to certain European Union regulations.
Processes
ISO 9001 is a key international standard. It shows that the business uses a QMS. It shows that quality is built into all aspects of operations. This must include all systems, whether inside or outside of the business. It therefore includes suppliers. There are eight quality measures that must be met to gain certification to ISO 9001.
Conclusion
Products include both goods and services. These can be made, operated and sold on a global basis. International standards for them are therefore vita. BSI helps to create these standards. Standards help businesses to build good reputations based on quality, safety and reliability.
Issues for Discussion
1. What do you understand by the term `quality’ in relation to a product you buy?
2. What is the BSI Kitemark? How might this help you to choose a product to purchase?
3. How might meeting the Standard ISO 9001 help a business to gain a competitive advantage over a rival?
4. Assume that you have developed a new manufacturing process – how might the BSI help you to develop this process?

Case 2
Sustainable business at Corus
Introduction
Corus is the UK’s biggest steel manufacturer. Even so, it still has to compete. In 2004 it launched a programme to make itself more efficient. Part of the program, called ‘Restoring Success’, focuses on recycling steel. The world economy is growing. The demand for steel has increased as more nations such as India and China have grown. Recycling as part of sustainable development has thus become vital. It has become a main concern for Corus.
What is sustainable?
Sustainable development is linked to resources. It means leaving at least as much for the future as we had to start with. This shows respect for the environment. It also shows thought the future. Everyone should try to aim for sustainability. This includes governments, businesses and people.
Recycling
Steel can be recycled over and over again with no loss of quality. This makes it stand out in terms of sustainability. It is easy to extract steel from waste because of its unique magnetic properties and recycle it from scrap. By recycling steel Corus helps to:
* preserve natural resources
* protect the environment
* meet targets for reducing waste.
Corus is working hard to make the public aware of what can and should be recycled. Steel can be recycled from drink and food cans, lids, paint cans and aerosols. Not everyone knows what can be recycled. For instance, 57% of consumers recycle drinks cans but only 7% recycle aerosols. Corus is working to develop a ‘closed loop’ for steel.
The steel would go from consumers to recycling plants, then into production and back to consumers.
Stakeholders
Corus sees that there are two sides to recycling. There are gains, but there can also be extra costs. To keep all of its stakeholders happy, it must balance these. There are effects on :
the planet. Fewer resources are used but energy is needed to recycle
* consumers. They have a smaller carbon footprint but more time is needed to recycle
* employees. More are involved in recycling
*communities. Less waste is stored in landfill but there may be noise from recycling plants.
Gains include lower production costs, governments hitting recycling targets and all of us having a better planet to live on.
Costs and benefits
It is possible to weigh up costs and benefits. A monetary value can be put on them. Businesses want gains to outweigh costs. Corus gains from recycling. Socially. Corus gains a good reputation. There is reduced impact on the environment, lower energy use and less waste. There are also costs. These include the cost of recycling and of collecting and sorting waste steel. Corus has created a number of targets to help measure its success. These are called Key Performance Indicators. They include
• Corus’ UK energy use being reduced to less than 1997 levels
• an increase in the steel recycling rate to 55%.

Conclusion
Corus works to recycle as much as it can. This helps towards greater sustainability. It shows concern for all its stakeholders. Consumers can also help by recycling as much as they can.
Issues for Discussion
1. What is sustainability and whose responsibility is it?
2. Describe three actions that an individual can take to support sustainability and two actions that a business can take?
3. Steel lends itself to recycling. What actions could be taken to increase public awareness of steel recycling?
4. Recommend actions that individuals and businesses can take to enhance the closed loop ‘steel to steel’ recycling process.
5. Recommend ways in which the benefits of steel recycling can be increased compared to the costs of recycling steel.

Case 3

International trade
For centuries Britain has been a country that relies on international trade. We purchase goods and services from other countries and in return we sell them goods and services produced here. An import is a purchase by UK citizens from overseas. An export is a sale by UK citizens to a member of another country.
Visible and invisible trade items
For the purpose of classification we call the tangible goods that we trade visible items. We call the services that we trade invisible items. Exports bring currency into the UK whereas imports lead to an outflows of currency.
The UK has always done well on her invisible account. This is because we developed a world-wide reputation for commercial services. Some of our major invisible earnings come from the following:
* Selling insurance policies through Lloyd’s.
* Bank services to foreigners,
* Tourists spending money in the UK.
On the news every month we hear that the UK has made a surplus on invisible trade showing that we have sold more invisible services than we have bought. The accounts for a particular month might show:
* Invisible exports ?100 billion
* Invisible imports ?80 billion
* Invisible surplus f20 billion
At the same time the UK frequently makes a loss on her visible trade.
A typical current account showing the UK’s trading with the rest of the world in a given period, may therefore look like the following:
Visible exports 500 Invisible exports 400 Total exports 900
Visible imports 650 Invisible imports 200 Total imports 850
Visible balance -150 Invisible balance 200 Current balance 50
The current account of the UK balance of payments gives a good guide to current trading in visible and invisibles with the rest of the world.
Issues for Discussion
1. Analyze the case at length

Case 4

Embracing and pursuing change
Introduction
AEGON UK is part of one of the world’s largest pension and insurance groups. The AEGON Group has over 27,000 employees. It has over 25 million customers worldwide. In the UK it has grown its customer base. It has also bought other businesses. Its aim is to become ‘the best lone;-term savings and protection business within the UK’. To achieve this, it is keen to change in order to improve. AEGON also needed to raise its profile in the UK. The companies which it bought, such as Scottish Equitable, tended to keep their own brand image. AEGON therefore needed to build on the global strength of the Group.
External factors
External factors are those outside the control of the business. It is vital for businesses to be aware of these changes. Changes that have affected AEGON include:
* people are living longer so need better pensions
* the insurance industry has had a poor reputation. In some cases the wrong products for people’s needs were sold. This is called miss-selling. As a result, the Financial Services Authority (FSA) made regulation tighter.
* financial products can be hard for people to grasp
Investment returns have been less than predicted. Many people have therefore not ended up with the sums that they had hoped for
There is a lot of competition in the industry.
Why change?
Government imposed price controls reduced profitability. Also. AEGON was not a well-known brand. It needed to be better known before consumers would see it as a good place for long-term investment. AEGON went through a ‘discovery’ phase. This was to find out what it needed to do to reach its aim. It set out to find out:
* what the brand stood for in the UK

• what they wanted it to stand for
• how they were going to reach this.

A brand audit was used. This looked at AEGON both from within and outside. This information could then be used to plan change.
Creating a culture

The culture of an organization refers to the way that it works. AEGON created a culture of change. AEGON needed to do well financially. This was linked to raising awareness of the brand and building on AEGON’s global strength. This meant:
* financial services in simpler forms that customers could grasp
* a workforce improved through training and development. This would b•, better able to manage change
* a more distinct market presence.
AEGON developed a framework to help all its staff support its brand values.

Implementing change
AEGON used a number of methods to achieve the
* external promotional campaigns
* the new Chief Executive (C1 O) talked to the media about the need for change
* new and innovative products were launched,
AEGON’s success can be seen through the record results, increased new business and growth in earnings.
Conclusion
AEGON recognized a need to give itself a greater market presence. The change has made the organization much more customer focused. As a result it is more effective.
Issues for discussion.
1. What are the external factors influencing the change. Discuss
2. Identify the reasons for change
3. Creating a new culture is a key part of the change process
4. Carry out the implementation of the above.

XIBMS MBA FINANCIAL MANAGEMENT EXAM ANSWER

XIBMS MBA FINANCIAL MANAGEMENT EXAM ANSWER
Xaviers Institute of Business Management Studies

XIBMS MBA FINANCIAL MANAGEMENT EXAM ANSWER
XIBMS MBA FINANCIAL MANAGEMENT EXAM ANSWER
XIBMS MBA FINANCIAL MANAGEMENT EXAM ANSWER Marks 100

FINANCIAL MANAGEMENT

Note: Attempt any five questions. All questions carry equal marks.
1. (A) Explain the Business Entity concept, Accrual concept and Consistency concept of Accounting.
(b) What do you understand by capitalization of earnings? How is the value of a firm ascertained with the help of its earnings? Explain with an example.
2. The following is the Trial Balance of Mr. Keshav Kant on 31st March 2006.
Rs. Rs.
Dr. Cr.
Capital – 8,00,000
Drawings 60,000 –
Opening Stock 75,000 –
Purchases 15,95,000 –
Freight on Purchases 25,000 –
Wages (11 months upto 28-2-2006) 66,000 –
Sales – 23,10,000
Salaries 1,40,000 –
Postage & Telephones 12,000 –
Printing and Stationery 18,000 –
Miscellaneous expenses 30,000 –
Creditors – 3,00,000
Investments 1,00,000 –
Discount received – 15,000
Debtors 2,50,000 –
Bad Debts 15,000 –
Provision for Bad Debts – 8,000
Building 3,00,000 –
Machinery 5,00,000 –
Furniture 40,000 –
Commission on Sales 45,000 –
Interest on Investments – 12,000
Insurance (year upto 31 .7 .2006) 24,000 –
Bank Balance 1,50,000 –
34,45,000 34,45,000
Adjustments:
(i) Closing Stock Rs. 2, 25,000.
(ii) Machinery worth Rs. 45,000 purchased on 1.10.2005 was shown as purchases. Freight paid on the machinery was Rs. 5,000 which is included in the Freight on Purchases.
(iii) Commission is payable at 2% on Sales.
(iv) Investments were sold at 10% profit but the entire sale proceeds have been taken as Sales.
(v) Write off Bad Debts Rs. 10,000 and create .a Provision for Doubtful Debts at 5% of Debtors.
(vi) Depreciate Building by 2% p.a. and Machinery and Furniture @ 10% p.a
Prepare Trading and Profit and Loss A/c for the Year ending 31st March 2006 and a Balance Sheet as on that date
3. Distinguish between Operating Leverage and Financial Leverage. What will be the effect of small change in Sales on Net Income, Return on Equity and Earnings Per Share if both these leverages are considerable? Explain.
4. (a) What is Production Budget ? What factors are taken into consideration while preparing a Production Budget? Why are separate budgets prepared For each of the elements of production costs? Explain.
(b) What is a Rolling Budget? Why is it prepared? Explain the procedure of its preparation.
5. An Engineering Company has received an export order for its sole product that would require the use of half of the factory’s total capacity, which is estimated at 4 lakh units per annum. The condition of the export order is that it has to be accepted in full: acceptance of a part is not allowed
The factory is currently operating at 60% level to meet the demand of its domestic customers. As against the current price of Rs. 6 per unit, the export offer is Rs. 4.70 per unit, which is less than the total cost of current production. The cost break-down is given below:
Direct material: Rs. 2.50 per unit
Direct labour: 1.00 per unit
Variable expenses: 0.50 per unit
Fixed overhead: 1.00 per unit
Total: 5.00 per unit
The company has the following options:
(a) Accept the export order and cut back domestic sales as necessary
(b) Remove the capacity constraint by installing balancing equipment and also by working overtime to meet both domestic and export demand. This will increase fixed overheads by Rs. 15,000 annually and additional cost for overtime work will amount to Rs. 40,000 for the year.
(c) Appoint a sub-contractor to manufacture the additional requirement and meet the domestic and export requirements in full by supplying raw materials, paying a conversion charge @ Rs. 2 per unit and appointing a supervisor at a salary of Rs. 3,000 per month for checking the quality of the product and controlling operations at the manufacturing unit
(d) Refuse the order.
You are required to prepare a statement of costs and profits under each of the options and give your recommendation to the company giving the reasons for the same.
6. Aditya Company’s equity shares are being traded in the market at Rs. 54 per share with a price-earning ratio of 9. The company’s payout is 72%. It has 1,00,000 equity shares of Rs. 10 each and no preference shares. Book value per share is Rs. 42.
You are required to calculate:
(i) Earnings per Share
(ii) Net Income
(iii) Dividend Yield, and
(iv) Return on Equity
7. Comment on the following statements:
(a) The greater the variability of cash flows, the higher should be the minimum cash balance.
(b) As there is no explicit cost of retained earnings, these funds are free of cost.
(c) Dividend, Investment and Financing decisions are inter-dependent.
(d) Profitability Index is more relevant in the evaluation and ranking of projects than Internal Rate of Return.
8. Write short notes on the following:
(a) Performance Budget
(b) Amortization of Intangible Assets
(c) Accounting Standards
(d) Funds from Business Operations

XIBMS MBA EXAM ANSWER XIBMS CORPORATE LAW EXAM ANSWER

XIBMS MBA EXAM ANSWER XIBMS CORPORATE LAW EXAM ANSWER An invitation to negotiate is a good offer
XIBMS MBA EXAM ANSWER XIBMS CORPORATE LAW EXAM ANSWER An invitation to negotiate is a good offer

Xaviers Institute of Business Management Studies

MARKS: 80
COURSE: MBA
SUB: CORPORATE LAW

Q.2. A ship-owner agreed to carry to cargo of sugar belonging to A from Constanza to Busrah. He knew that there was a sugar market in Busrah and that A was a sugar merchant, but did not know that he intended to sell the cargo, immediately on its arrival. Owning to Shipment’s default, the voyage was delayed and sugar fetched a lower price than it would have done had it arrived on time. A claimed compensation for the full loss suffered by him because of the delay. Give your decision. Explain Briefly? (5 Marks)
XIBMS MBA EXAM ANSWER XIBMS CORPORATE LAW EXAM ANSWER
Q.3. The proprietors of a medical preparation called the “Carbolic Smoke Ball” published in several newspapers the following advertisement:-
“£ 1000 reward will be paid by the Carbolic Smoke Ball Co. to any person who contracts the increasing epidemic influenza after having used the Smoke Ball three times daily for two weeks according to printed directions supplied with each ball. £ 1000 is deposited with the Alliance Bank showing our sincerity in the matter.
On the faith in this advertisement, the plaintiff bought a Smoke Ball and used it as directed. She was attacked by influenza. She sued the company for the reward. Will she succeed? Explain Briefly (5 Marks)
Q.4. Fazal consigned four cases of Chinese crackers at Kanpur to be carried to Allahabad on the 30th May, 1987. He intended to sell them at the Shabarat festival of 5th June 1987. The railway discovered that the consignment could not be sent by passenger train and asked Fazal either to remove them or authorize their dispatch by goods train. He took no action and the goods arrived at Allahabad a month after they were booked.
Fazal filed a suit against Railways for damages due to late delivery of the goods which deprived him of the special profits at the festival sale. Decide & explain briefly ? (5 Marks)

Q.5. ‘Lifeoy’ Soap company advertised that it would give a reward of Rs. 2000 who contracted skin disease after using the ‘Lifeoy’ soap of the company for a certain period according to the printed directions. Mrs. Jacob purchased the advertised ‘Lifeboy’ and contracted skin disease inspite of using this soap according to the printed instructions. She claimed reward of Rs. 2000. The claim is resisted by the company on the ground that offer was not made to her and that in any case she had not communicated her acceptance of the offer. Decide whether Mrs. Jacob can claim the reward or not. Give reasons. Explain briefly? (5 Marks)
XIBMS MBA EXAM ANSWER XIBMS CORPORATE LAW EXAM ANSWER
Q.6. In each set of statements, only one is correct. State the correct statements & Explain briefly?
a) i) A bailee has a general lien on the goods bailed.
ii) The ownership of goods pawned passes to the pawnee.
iii) A gratuitous bailment can be terminated by the bailor even
before the stated time.
b) i) A substituted agent is as good an agent of the agent as a sub-
agent.
ii) An ostensible agency is as effective as an express agency.
iii) A principal can always revoke an agent’s authority. (5 Marks)
Q.7. A, an unpaid seller, sends goods to B by railway. B becomes insolvent
And A sends a telegram to Railway authorities not to deliver the goods to B. B. goes to the Parcel office of Railway Yard and by presenting R. R. (Railway Receipt) takes delivery of the goods and starts putting them in the cart. Meanwhile the Station Master comes running with the telegram in hand and takes possession of the goods from B. Discuss the rights of A and B to the goods in possession of Railway authorities. (5 Marks)

Q.9. Will C has the right of further negotiation in the following cases: (B signs the endorsements) Explain briefly? (5 Marks)
i) ‘Pay C for my use’
ii) ‘Pay C’)

iii) ‘Pay C or order for the account of B’

Q.13. Write a short note on the Doctrine of Indoor Management? Explain briefly? (5 Marks)

XIBMS MBA EXAM ANSWER XIBMS CORPORATE LAW EXAM ANSWER An invitation to negotiate is a good offer
XIBMS MBA EXAM ANSWER XIBMS CORPORATE LAW EXAM ANSWER An invitation to negotiate is a good offer
XIBMS MBA EXAM ANSWER XIBMS CORPORATE LAW EXAM ANSWER An invitation to negotiate is a good offer

ADVERTISING XIBMS EXAM ANSWER SHEET What is advertising Bring out clearly the changing concept of advertising in modern business world

ADVERTISING XIBMS EXAM ANSWER SHEET – What is advertising? Bring out clearly the changing concept of advertising in modern business world

Advertising

Max. Marks: 80
Answer any five questions
All questions carry equal marks
– – –
1. What is advertising? Bring out clearly the changing concept of advertising in
modern business world.

2. Explain the objectives and functions of advertisement manager.

3. What is advertisement budget? How do you determine optimal expenditure
through advertisement budget?

4. What are the characteristics of advertising media? Explain..
Bring out clearly the changing concept of advertising in modern business world
5. Write a short note on:
a) Visual layout.
b) Production traffic copy.
Bring out clearly the changing concept of advertising in modern business world
6. How do you measure the effectiveness of advertisement? Explain.

7. Define sales promotion? Explain the types of sales promotion.

8. Explain the merits and demerits publicity.

Bring out clearly the changing concept of advertising in modern business world

XIBMS FINANCIAL MANAGEMENT EXAM ANSWER SHEETS PROVIDED

Xaviers Institute of Business Management Studies

Marks 100

FINANCIAL MANAGEMENT

Note: Attempt any five questions. All questions carry equal marks.

(A) Explain the Business Entity concept, Accrual concept and Consistency concept of Accounting.

(b) What do you understand by capitalization of earnings? How is the value of a firm ascertained with the help of its earnings? Explain with an example.

The following is the Trial Balance of Mr. Keshav Kant on 31st March 2006.

	Rs.	Rs.
	Dr.	Cr.
Capital	–	8,00,000
Drawings	60,000	–
Opening Stock	75,000	–
Purchases	15,95,000	–
Freight on Purchases	25,000	–
Wages (11 months upto 28-2-2006)	66,000	–
Sales	–	23,10,000
Salaries	1,40,000	–
Postage & Telephones	12,000	–
Printing and Stationery	18,000	–
Miscellaneous expenses	30,000	–
Creditors	–	3,00,000
Investments	1,00,000	–
Discount received	–	15,000
Debtors	2,50,000	–
Bad Debts	15,000	–
Provision for Bad Debts	–	8,000
Building	3,00,000	–
Machinery	5,00,000	–
Furniture	40,000	–
Commission on Sales	45,000	–
Interest on Investments	–	12,000
Insurance (year upto 31 .7 .2006)	24,000	–
Bank Balance	1,50,000	–
	34,45,000	34,45,000

Adjustments:

(i) Closing Stock Rs. 2, 25,000.

(ii) Machinery worth Rs. 45,000 purchased on 1.10.2005 was shown as purchases. Freight paid on the machinery was Rs. 5,000 which is included in the Freight on Purchases.

(iii) Commission is payable at 2% on Sales.

(iv) Investments were sold at 10% profit but the entire sale proceeds have been taken as Sales.

(v) Write off Bad Debts Rs. 10,000 and create .a Provision for Doubtful Debts at 5% of Debtors.

(vi) Depreciate Building by 2% p.a. and Machinery and Furniture @ 10% p.a

Prepare Trading and Profit and Loss A/c for the Year ending 31st March 2006 and a Balance Sheet as on that date

Distinguish between Operating Leverage and Financial Leverage. What will be the effect of small change in Sales on Net Income, Return on Equity and Earnings Per Share if both these leverages are considerable? Explain.
(a) What is Production Budget ? What factors are taken into consideration while preparing a Production Budget? Why are separate budgets prepared For each of the elements of production costs? Explain.

(b) What is a Rolling Budget? Why is it prepared? Explain the procedure of its preparation.

An Engineering Company has received an export order for its sole product that would require the use of half of the factory’s total capacity, which is estimated at 4 lakh units per annum. The condition of the export order is that it has to be accepted in full: acceptance of a part is not allowed

The factory is currently operating at 60% level to meet the demand of its domestic customers. As against the current price of Rs. 6 per unit, the export offer is Rs. 4.70 per unit, which is less than the total cost of current production. The cost break-down is given below:

Direct material: Rs. 2.50 per unit

Direct labour: 1.00 per unit

Variable expenses: 0.50 per unit

Fixed overhead: 1.00 per unit

Total: 5.00 per unit

The company has the following options:

(a) Accept the export order and cut back domestic sales as necessary

(b) Remove the capacity constraint by installing balancing equipment and also by working overtime to meet both domestic and export demand. This will increase fixed overheads by Rs. 15,000 annually and additional cost for overtime work will amount to Rs. 40,000 for the year.

(c) Appoint a sub-contractor to manufacture the additional requirement and meet the domestic and export requirements in full by supplying raw materials, paying a conversion charge @ Rs. 2 per unit and appointing a supervisor at a salary of Rs. 3,000 per month for checking the quality of the product and controlling operations at the manufacturing unit

(d) Refuse the order.

You are required to prepare a statement of costs and profits under each of the options and give your recommendation to the company giving the reasons for the same.

Aditya Company’s equity shares are being traded in the market at Rs. 54 per share with a price-earning ratio of 9. The company’s payout is 72%. It has 1,00,000 equity shares of Rs. 10 each and no preference shares. Book value per share is Rs. 42.

You are required to calculate:

(i) Earnings per Share

(ii) Net Income

(iii) Dividend Yield, and

(iv) Return on Equity

Comment on the following statements:

(a) The greater the variability of cash flows, the higher should be the minimum cash balance.

(b) As there is no explicit cost of retained earnings, these funds are free of cost.

(d) Profitability Index is more relevant in the evaluation and ranking of projects than Internal Rate of Return.

Write short notes on the following:

(a) Performance Budget

(b) Amortization of Intangible Assets

(d) Funds from Business Operations

XIBMS DMS ONGOING EXAM QUESTION AND ANSWER PROVIDED

Xaviers Institute of Business Management Studies

Quantitative Techniques

Please attempt any one question out of section A and any 10 questions out of Section B. The section A is for 20 Marks and Section B is for 60 Marks (6 Marks X 10 Questions)

Total Marks – 80

Section A

Distinguish between decision making under certainty and decision making under uncertainty. Mention certain methods for solving decision problems under uncertainty. Discuss how these methods can be applied to solve decision problems.

Distinguish between probability and non-probability sampling. Elucidate the reasons for the use of non-probability sampling in many situations in spite of its theoretical weaknesses.

What are models? Discuss the role of models in decision-making. How can you classify models on the basis of behavior characteristics?

What are matrices? How are determinants different from matrices? Discuss few applications of matrices in business.

Section B

Write short notes on any ten of the following:

(a) Concept of Maxima and Minima

(b) Types of classification of data

(d) Multi-stage sampling & Multi-phase sampling

(e) Box-Jenkins Models for Time Series

(f) Determinant of a Square Matrix

(g) Primary and Secondary Data

(h) Bernoulli Process

(i) The Student’s t Distribution

(j) Use of Auto-correlations in identifying Time Series

(K) Absolute value function

(l) Quantiles

(m) Criteria of pessimism in decision theory

(n) Cluster vs. Stratum

(o) Moving average models

(p) Step function

(q) More than type ogive

(r) Subjectivist’s criterion in decision making

(s) Double sampling

(t) Auto regressive models

Xaviers Institute of Business Management Studies

MARKS: 80 ( Each case study for 20 Marks)

Subject – Principles and Practice of Management

Communicating in a Crisis

Overview Valley High School, situated in Kodaikanal, was established in 1980 and is owned by a well respected charitable trust. It overlooks a lake and is a modern building equipped with state-of-the-art facilities. The total student enrolment is 2000, out of which more than 50% are girls and the rest boys. The students are all from affluent, educated families. The school has established a good reputation for itself, thanks to the consistently good performance of students in the public examinations. The school is headed by a lady Principal and also has a couple of Supervisors and a team of 25 teachers. The teachers have had extensive experience, are well qualified and are known for their commitment to imparting quality education to students. Due to the recent heavy monsoons, the school was faced with the problem of flooding, with water entering the rooms on the ground floor and water seepage on the terrace. Since repair work had to be done, the school had to be closed for a couple of weeks. The work was carried out by reputed contractors, but the building still looks a little run down.

The crisis the school had just reopened after this two week break. The same morning, a fire suddenly broke out on the third floor and spread to other floors, blocking the stairways. There was widespread panic, as the children started jumping off the balconies, injuring themselves in the process. The Principal and staff had a tough time trying to calm down the children and take control of the situation. Fire engines were called and several of them arrived and began their fire fighting operations. In the meanwhile, many parents also arrived and tried to enter the building to speak to the Principal. The phones were ringing continuously. There was total chaos.

Question 1 :- How communication crises arise?

Question 2 :- What Principal should do to calm down the angry parents?

Question 3 :- How school will regain its reputation? What services school should provide in order to maintain its reputation?

Case Study 2

Case Study on The power of Non-Verbal Communication

The Power of Nonverbal Communication Soon after I graduated from engineering college, I accepted a position with the Sundaram Foundry, a medium-sized firm located in a small town in Tamil Nadu. It was a good position, since I was the assistant to Mr. Vishwanath, the General Manager and president of this family owned company, although there were many technical problems, the work was extremely interesting and I soon learnt all about the foundry business. The foundry workers were mostly older men and were a closely knit team. Many of them were related and had been in the foundry for several years. Therefore, they felt that they knew the business in and out and that a technical education had no value. In fact, Mr. Vishwanath had mentioned to me even at the time of my joining, that I was the only engineer ever to be employed in the foundry. He also let me know that the foundry workers, although a good group, were very clannish, since they had been working together for several years. Therefore, it would probably take them some time to accept me. I introduced myself to the group of foundry workers, a few days after my joining. As I went around in turn, I felt them eyeing me coldly. As I went down the main aisle of the foundry, I heard them talking to each other in low voices and laughing. I found their behavior to be very childish and felt that it was best to ignore these signs of hostility. I thought that if I ignored them, they would automatically stop these antics. A few weeks after this incident, I happened to visit the enamel shop. As I entered, I noticed a worker cleaning the floor with a hose, from which water flowed at high pressure. I was aware that it was the practice to clean the shop at least once a week. I turned my back on the worker and was busy near a dipping tank, when I suddenly felt the force of a stream of water hitting me. I was almost knocked down by the pressure and slipped on the wet floor. When I turned around, the worker looked away in the other direction, as if he had not noticed this happening. However, I was pretty sure that he had intentionally turned the hose on me.

Question 1 – What message did the foundry workers and the new engineer convey to each other through their non-verbal behavior?

Question 2 – Mr. Vishwanath, the General Manager and President, was not often present at the foundry. What could this non-verbal behavior mean to the workers and the new engineer?

Question 3. How could the engineer, the foundry workers and Mr. Vishwanath be more effective, both verbally and nonverbally?

Question 4. What do you suggest that the engineer should do, after the hosing incident?

Case Study 3

BS GETS A D-PLUS ON DIVERSITY FROM MULTIETHNIC COALITOIN

On February 3, 2000, President and CEO of CBS Leslie Moonves signed a pact with Kweisi Mfume, president and CEO of the national association for advancement of colored people (NAACP), who had joined forces with the Hispanic media coalition, and the American Indians in film and television to request the CBS help to increase Indians in film and television to request that CBS help to increase ethnic presence in the television industry. The agreement stipulated the CBS would increase minority participation both on and off screen by June 30.

In April 2000, CBS announced the appointment of Josie Thomas to the newly created position of senior vice president of Diversity at CBS Television. Her job was to improve outreach and recruitment, hiring, promotion, and monitoring practices in all divisions of CBS. That fall Moonves announced that 16 of the 21 CBS shows, including news magazines, would prominently feature minorities. “We think we are a leader in this area,” Moonves said “We think we are ahead of the curves”

Despite Mooves’s Statement that as “broadcasters, we believe strongly that it is our duty to reflect the public that makes up our viewing audience,” there were many who did not feel the company was sincere in its efforts to improve hiring practices. The national Hispanic Foundation for the Arts criticized CBS for not scheduling “American Family,” A pilot drama about middle – class Hispanic family. Moonves said “American Family” simply did not fit in CBS’s schedule, since there were already too many strong dramas planned. He said he took the unusual step of allowing the show’s producer to pitch the CBS-developed networks but no one picked it up. Meanwhile, the June 30 deadline had come and gone without much outward sign of change at CBS television.

Josie Thomas is committed to CBS’s new mandate for multicultural diversity. Twelve of CBS’ prime time series will have minorities in permanent roles and other series will have minority in recurring role. Fore of the network’s shows- C.S.I., the district, the fugitive and welcome to New York have minorities in leading roles.

Since signing the agreement, CBS has established a strong working relationship with national minority supplier council in order to help minority supplier council and women’s businesses. The company has bolstered its internship program to include paid internships on the west coast, pairing up interns with their areas of interest, Such as finance or entertainment. There are 10 minority interns in the program. Moreover, CBS has now made diversity a factor in employee job performance evaluation. “Each area of the network has developed a detailed plan for diversity,” said Thomas. “Manager will be reviewed with respect to their diversity efforts and that will be a factor in compensation decisions.” Ms. Thomas noted that Ghen Maynard, an Asian American Pacific Islander, had just been promoted form director to vice president of alternative programming for the entertainment division.

“Will all believe there is a long way to go,” Thomas said. “What I have found is there are some things that already exist that are positive, such as news magazines having minority anchors. We think ‘city of angels’ renewal was an important step. The ratings were mediocre to low, and we did feel the program was a risk. It says a lot about our commitment”

In June 2001, the coalition gave the Big 4 Broadcast Networks (all of whom had signed an agreement) a report card for their efforts to diversity shows on – air and behind the scenes. CBS got a D-plus.

Mr. Nogales, of the National Hispanic Media Coalition, said he was disappointed “We expect progress; we signed for progress” “The numbers in comparison to last year actually look better” Nogales says. “There have been gains for people of color. There was movement. But it has to be movement across the board, not just for one group.” He is referring to the fact that most of the gains have been made by black actors, writes and producers. Black actors appear as regular in at least 19 of the six major networks’30 new prime-time series. Hispanics shows up in only eight, Asians in five and Native Americans in one.

The pressure being put on the networks- including threats of “boycott” and legal action – is having results. At CBS the number of minority writers and producer has more than tripled, from four to fourteen, including six executive or co executive producer however, obstacles to a fully integrated future remain serious-particularly because of misconceptions about the nature of the television audience and about the way pop culture works. Network executive worry that “ghetto shows” might promote stereotypes. They wonder if shows like The cosby show are “black” enough. Then again, they think that casting too many minorities may drive white viewers away. Some network executives are afraid to cast minority actors in “negative” roles because they may be criticized for it minority writers, who have been getting more work lately, wonder if they are not just “tokens”; and despite some progress it is still almost impossible for Hispanic actor to get non- Hispanic roles.

Both the NAACP and the coalition have been battling discrimination for years. CBS is just finding out that a profound change toward pluralism can take place only with true insight on the part of management. CBS spokesperson Chris Ender says “We have made tremendous strides to increase diversity on screen, behind the camera and in the executive suites. However we certainly recognize that more can be done and more will be done.”

As far as Nogales is concerned. “It’s still a white guy’s world,” and the june 2001 statics for network television prove he is right.

Questions

Question 1:- What advantages would accrue to CBS if it becomes a more diverse workplace?

Question 2:- Where would you have placed CBS on the organizational diversity continuum and where would you place CBS now? Why?

Question 3:- Which approach (es) to pluralism best sums up the diversity policy that is being developed at CBS? Explain

Question 4:- How do the attitudes of management at CBS as depicted in your case study affect the company’s progress toward forming a more diverse workforce? Explain.

Case Study 4

McDonald’s Listening Campaign

At the end of 2002, the world’s largest quick service retailer made its first ever quarterly loss and faced a number of challenges. It responded by launching its Plan to Win program, part of a global strategy to modernize the business, followed by the Listening Campaign in the UK. Here, Ali Carruthers explains how the two initiatives were linked in the UK, and the impact The Listening Campaign has had on communication, culture, image and media perception.

In 2003, things were looking bleak for McDonald’s. Its share price was the lowest it had been in a decade and it faced a series of seemingly insurmountable problems: It was demonized by the UK media in the fierce debate raging over obesity; it faced huge competition on the high street; and it was suffering under a wave of Anti-Americanism in the wake of the wars in Afghanistan and Iraq.

Added to this was the fact that the restaurants themselves were beginning to look dated and UK health lobbyists were determined to push home the message that McDonald’s food was bad for people.

Speaking earlier this year to the BBC, the UK CEO Peter Beresford said: “We had taken our eye off the customer, we were not customer focused, we were not customer driven. And so we reorganized and regrouped. We decided we had to stop and take stock of where we were. We had to be better, but we had to change the way we were running this business.”

The Plan to Win

The senior management put their heads together and devised the Plan to Win program, which went public in the last quarter of 2003. A key part of its focus was a shift to more choice and variety foods, with salads appearing permanently on the menu for the first time in the organization’s history. Key restaurants began to receive make over and a supporting advertising campaign with international stars was planned, all of which were intended to turn the food chain’s image around.

But just as things were beginning to look up for the organization, trouble raised its head again in the shape of the documentary film “Supersize me,” which in turn re-ignited the obesity debate in the media. It was then discovered that one of the salads McDonald’s was marketing contained more calories than one of its hamburgers. The UK press reacted with predictable glee and once again McDonald’s was in the spotlight for all the wrong reasons.

The Listening Campaign. The company responded promptly. Working with agency Blue Rubicon, the in-house communication and media relations team devised the Listening Campaign. It made the most of the arrival of new UK CEO Peter Beresford in July 2004, building on his personal credibility and that of McDonald’s with the Listening Tour. Beresford spoke directly to customers in focus groups, met with franchise holders and with employees in 12 UK cities over the space of six weeks, starting at the end of October.

The key ingredient was listening to customers and staff and then showing the results of this. “Part of the reason [for doing it] was that we had to introduce Peter very quickly to employees, customers and stakeholders,” says head of internal communications AIi Carruthers. “It was also signaling that he’d continue to work to change our culture and lead the drive for a real transparency of approach. We’ve been building on that work ever since.”

Focus groups for stakeholders

The communication team made the most of Beresford’s time by booking ahead so that local franchisees could meet him when he travelled to regional centers for customer focus groups. Next, Listening Groups were created for the company’s regional offices with corporate rather than restaurant-based employees taking part. Initial meetings were centered around three classic focus group questions:

* What works?

* What would you change?

* How would you change it?

In each session, six to 10 employees took part and the sessions lasted around two hours. After the first session, an action plan was drawn up and fed back to the employees in a second round of focus groups. Then the agreed proposed changes were put in place by the organization.

Proposed changes put in place

A range of short, medium and long term actions have been instigated as a result of the focus groups. These include a firm commitment to hold monthly town-hall sessions to regularly address key issues within the organization. “We’ve agreed to use these sessions to feature various departmental heads,” says Carruthers.

“That’s so people can put names to faces, understand the organizational structure better and get an understanding of what goes on outside their own departments.” The company has also committed itself to involving a new group of employees every six months, and to being more transparent about its promotion process and how people are assessed for promotion. It now holds regular Plan to Win meetings, which are related to the global strategy. “We’re using the town-hall sessions to communicate the global strategy to thebroader office group rather than just senior management so there’s a wider understanding of what we’re doing,” says Carruthers.

The company has also committed to a peer-nominated quarterly recognition scheme for the regional and head offices. It’s planned that the town halls will also be used in the recognition scheme. “People need to say well done to each other and be acknowledged by the senior team,” says Carruthers.

A change in company culture

According to Carruthers, the strategy has been recognized globally – a drive for greater face-to-face communication, more transparency, a growth in leadership behavior and accountability. “Basically we’ve been trying to make people feel they’re able to ask questions,” she says. “There’s nothing wrong with challenging the status quo as long as it’s done in a constructive and respectful way. If we can use some of those ideas we can probably make it a more enjoyable place for everyone to work.”

There’s no doubt that the Listening Campaign has had an impact on the senior team and general employees alike. Carruthers has had feedback from both groups and believes the exercise has been an eye-opener for the senior team: “They frequently mention experiences they’ve had in those groups. There’s nothing quite like hearing issues for yourself; the good ones and the more awkward ones.”

The feedback from focus-group participants has been very good; employees say they feel listened to and think their feedback is being taken on board. “They feel confident to ask questions or send e-mails directly to people they thought wouldn’t have listened to their suggestions previously. It’s changing the culture. Anything that builds trust and transparency is good. Now it’s about delivering on the changes that we said we’d make.”

A hotline to the CEO

A hotline to the CEO has made the company’s drive for transparency and commitment to employees even more credible. The “Ask Peter” e-mail address was established when Beresford took up his post and has seen a fair amount of traffic. “It’s word of mouth – people see that it’s well responded to,” says Carruthers. She sees it as important to be straight with employees about how e-mails are dealt with and who sees them. “We’re very up-front about the fact that I see all e-mails as well as Peter, but if we forward them to other departments, they’ll be anonymous.”

A combination of high and low technology adds to the feeling of personal contact: Beresford will often answer e-mails with a hand-written reply. In one famous instance he replied to nearly 100 in one week. “It doesn’t always happen that way, but it’s these things that make a difference. People see it’s coming from him and it’s quite a personal touch.”

Committing to communication, A new round of Listening focus groups with fresh employees is due to kick off in October. The whole cycle of questions, action-planning and feedback will be replayed. “We’re working with a new group of employees because we want to keep changing and avoid having a formalized council of volunteers,” says Carruthers. “They’ll look at what they think has happened so far, whether anything could have been done differently and then we’ll hold a review of the proposals.”

It’s a genuine commitment to keep the focus groups running on an ongoing basis. Carruthers is also expecting that the flexibility and fresh new faces will ensure that new topics arise: “They’re things that inevitably come up along the way and get added to the agenda for change. We just need to follow them through and then tell people the results.”

The results

Since Beresford’s Listening Tour there’s been a turnaround in the media coverage of McDonald’s, which has been much more positive. The Listening Campaign is changing the internal culture of the company and its focus group cycles are becoming permanent two-way communication channels.

Results back in August this year from the last employee survey showed that internal communication is now ranked by employees as number four out of 25 departments. “The communications strategy has helped people become aware of who we are and what we do,” says Carruthers. The Listening Campaign has also helped McDonald’s raise its profile externally, as it was nominated in this year’s UK Chartered Institute of Public Relations Excellence Awards and short-listed for Best Use of Media Relations in the PR Week Awards.

Questions

Question1. Based on this case, develop guidelines for improving communication with each of different stakeholders, through better listening.

Question 2:- What are the essentials for the effective communication?

Question 3:- Write about McDonald marketing plan which they have implemented for the success?

Question 4:- Do the SWOT analysis of following:-

McDonald
Food Industry

Xaviers Institute of Business Management Studies

SUBJECT: MARKETING MANAGEMENT

Total Marks : 80

INSTRUCTIONS

Answer all the Questions
Present your Answer with tidiness and to the point.
Question No 1 to 8 carry 8 marks each and question No.9 carry 16 marks.

At the time when the market leader for instant noodles was Nestles Maggi, the main challenger was Top Ramen’s Noodles. Applying the concepts of marketing Management, what would be your strategic plan in order to keep up the top position of Maggi.

Discuss the relationship between ‘Segmentation’ and ‘Positioning’. Explain the major criteria of Segmentation and Positioning. Quote sufficient examples to strengthen your answer.

(a) Describe in detail the stages in the Product Life Cycle.

(b) In this context, explain the challenges that a Marketing Manager has to deal while introducing a new product.

What do you understand by Channel of Distribution? Explain the different kinds of Channel of Distribution in detail.

Explain the factors affecting Pricing Decision. What are the various methods of pricing a Product? Briefly explain them. Also, differentiate between Price shadowing and Price Covering.

What are the essential Factors influencing Consumer behavior? Explain its significance in Marketing Management in accordance with the Technology advancements.

Write Short Notes on any four of the following:

(a) Price Skimming.

(b) Media Selection for Advertising

(d) Product Differentiation

(e) Demand Inelastic in Business Buyer Behavior

(f) Vertical Marketing System

A new product is to be launched by a company at Mumbai. As a part of identifying the consumer behavior, the company intends to carry out a research process. Outline a Marketing Research Process for the company in order to establish the requirements of the consumers.
Case Study – Read the Case carefully and answer to the questions analytically.

Case Study on Maruthi Udyog Ltd.

Maruti Udyog L:td.MUL is the largest auto manufacturer in India. It has 70 percent share of the small car segment and 40 percent of the luxury segment. It was set up as a joint venture between the Government of India and Suzuki motors of Japan. Today the government has reduced its stake and it is a Suzuki firm. It has a vendor network of nearly 450, a third of who have ISO 9000 certification. It also has joint ventures with some of its vendors to ensure quality and timely delivery. Maruti has about 14 models to cars, vans and jeep. In the small car segment, it completes with Santro of Hyundai and Indica from the Tatas.

Maruti’s vision and mission statement are given below

Vision: To be competitive worldwide in products and services retain leadership in the country and aspire for a good market share internationally.

Mission: To sell a variety of cars- modern, high technology and fuel efficient – in the Indian and foreign markets.

The firm’s values are as follows

Growth oriented organization ready to change to meet customers demand at short notice.

Value for money for the customers.

Stakeholders’ involvement and satisfaction.

Responsible corporate citizen.

Competitive Analysis of Maruti

Maruti had a good run till 1998 when several international players challenged its supremacy . In the small car segment, Santro of Hyundai, and Indica from the Tatas pose major problems for Maruti . In the luxury segment, its Esteem faces competition from Honda City, Opel Astra , Ford Escort and Ford Ikon. Its jeep Gypsy faces competition from Mahindra& Mahindra’s jeeps, and Tata’s Sumo and Safari.

Threat of new entrants is real as the segment of middle class cars is growing rapidly, Volvo, Volkswagen and Toyota are also planning to enter the market.

To beat Maruti’s brand image, economics of scale and marketing and service network , new firms have to spend a lot of money and efforts and that could be the entry barrier.

Critical success factors of Maruti:

Suzuki technology
Economic scale of production
Strong R&D.
Timely market feedback as a result of continuous research
Large range of models.
Strong dealer network
Large service network around the country with trained technicians.
Quality programmes (Kaizan)
Design expertise
Brand equity
Provides leasing options, hire purchase schemes.

Realising the imminence of competition in 1998 , Maruti planned to have relationship marketing , with an idea of selling Maruti cars to its existing customer base and upgrading product purchase . Maruti introduced Zen Alto and Wagon R, for this purpose.

MUL has competitive advantages in the segments it operates in to counter the onslaught of competition it even reduced the price and went for volume business .MUL has maintained its competitive advantage in the following manner.

Superior Suzuki compact car technology.
Value for money
Low maintenance cost.
Reliable quality
Largest network of dealers and service centres.
large product range for various needs and pockets.
Easy availability and attractive finance schemes .
ISO certification, even for a large number of dealers.
Technology transfers to important vendors for ensuring quality supplies.

Maruti is a household’s name not only in India but in a number of countries of the west as well. With a modest beginning in 1997 when it exported 102 cars, now MUL exports to more than 30,000 cars to 74 countries. The countries include Italy, Holland and Chile; around 70 percent sales are to Europe.

Maruti looks confidently to the future with the following agenda:

Commitment to customer satisfaction/delight.
Expansion and modernization of facilities.
New model as per market demand
Model upgradation .
Market research to remain proactive in the market.
Emphasis on overseas markets
Finance for the customers.

Questions:

Discuss the main issues narrated in the case in your own style.
Carry out a SWOT Analysis.
Based on the Analysis of the case, put forth your views and suggestions.

Xaviers Institute of Business Management Studies

MANAGEMENT CONTROL SYSTEMS

Marks: 80

Note: Attempt any five questions. All questions carry equal marks.

Explain the various components of control systems.
Explain the following models and highlight their usefulness in formulating business unit strategies:
(a) The BCG Model
(b) General Electric (GE) Planning Model
Explain the boundary conditions in the context of profit centre. Also explain the process of performance measurement of profit centers.
What do you understand by Investment Centres? Explain the methods used for measuring investment centre performance.
What do you mean by budgetary control system? Explain the process of budgetary control in an organization.
Describe the criteria on which the incentives of business unit managers are decided.
What are the various special control issues faced by Multi National Corporations?
What are the characteristics of a project organization? Explain how these characteristics affect the control system design of a project.

Xaviers Institute of Business Management Studies

MARKS: 80 .

SUB: International Business.

N.B.: 1) Attempt any Four Case studies.

2 All questions carry equal marks.

CASE 1

Creating world class quality standards

Introduction

Customers expect to be able to buy products that meet certain standards. Standards can be written down and published for use by manufacturers and service providers. They can be used as guidance. BSI stands for British Standards Institution. It was the world’s first Standards body, and is the National Standards Body for the UK. BSI works in three main fields:

. Setting British and international standards

. Product testing

. Quality management systems (QMS)

Standards are based on agreed best practice. Businesses are keen to use standards to show they have a place in global markets. There are thousands of standards covering all manner of goods and services.

Quality

A quality product or service does what the customer wants it to do. This may differ from market to market. For instance, a cheap football provides enough `quality’ for a village match. For a league match, a better ball would be needed. Many organizations try to build quality into everything they do. They do this by using a QMS. This provides a framework that helps the business to improve in all areas. BSI helps organizations to identify best practice and translates this into standards. BSI publishes almost 20,000 standards and each year adds 2,000 new or revised standards to this list.

The importance of standards

Standards exist at a number of levels. These include:

* International Standards, (ISO). These need to be agreed between countries, so are the most complex

* European Standards (EN)

* British Standards (BS).

BSI contributes to all three.

Standards help protect consumers’ safety. They also promote research. They promote the sharing of knowledge. They help businesses to compete. In markets where it is hard to compete on price, businesses can use standards to help them compete on quality.

The Kitemark

BSI is independent. It works with both the private and public sector. It makes sure that safety and quality standards in the UK and around the world are built into products. BSI also owns the famous Kitemark symbol which you see on many products. It shows that a business has had a product tested to the relevant standard. Schemes cover various products and services. Examples include lighting, 13 amp plugs, motor cycle helmets and car repair garages. The Kitemark shows that the business sees safety and quality as vital. It shows the customer that the product or service has been tested and has reached the relevant Standard. Other symbols are required by law, for instance, CE marking. This shows that a product conforms to certain European Union regulations.

Processes

ISO 9001 is a key international standard. It shows that the business uses a QMS. It shows that quality is built into all aspects of operations. This must include all systems, whether inside or outside of the business. It therefore includes suppliers. There are eight quality measures that must be met to gain certification to ISO 9001.

Conclusion

Products include both goods and services. These can be made, operated and sold on a global basis. International standards for them are therefore vita. BSI helps to create these standards. Standards help businesses to build good reputations based on quality, safety and reliability.

Issues for Discussion

What do you understand by the term `quality’ in relation to a product you buy?
What is the BSI Kitemark? How might this help you to choose a product to purchase?
How might meeting the Standard ISO 9001 help a business to gain a competitive advantage over a rival?
Assume that you have developed a new manufacturing process – how might the BSI help you to develop this process?

Case 2

Sustainable business at Corus

Introduction

Corus is the UK’s biggest steel manufacturer. Even so, it still has to compete. In 2004 it launched a programme to make itself more efficient. Part of the program, called ‘Restoring Success’, focuses on recycling steel. The world economy is growing. The demand for steel has increased as more nations such as India and China have grown. Recycling as part of sustainable development has thus become vital. It has become a main concern for Corus.

What is sustainable?

Sustainable development is linked to resources. It means leaving at least as much for the future as we had to start with. This shows respect for the environment. It also shows thought the future. Everyone should try to aim for sustainability. This includes governments, businesses and people.

Recycling

Steel can be recycled over and over again with no loss of quality. This makes it stand out in terms of sustainability. It is easy to extract steel from waste because of its unique magnetic properties and recycle it from scrap. By recycling steel Corus helps to:

* preserve natural resources

* protect the environment

* meet targets for reducing waste.

Corus is working hard to make the public aware of what can and should be recycled. Steel can be recycled from drink and food cans, lids, paint cans and aerosols. Not everyone knows what can be recycled. For instance, 57% of consumers recycle drinks cans but only 7% recycle aerosols. Corus is working to develop a ‘closed loop’ for steel.

The steel would go from consumers to recycling plants, then into production and back to consumers.

Stakeholders

Corus sees that there are two sides to recycling. There are gains, but there can also be extra costs. To keep all of its stakeholders happy, it must balance these. There are effects on :

the planet. Fewer resources are used but energy is needed to recycle

* consumers. They have a smaller carbon footprint but more time is needed to recycle

* employees. More are involved in recycling

*communities. Less waste is stored in landfill but there may be noise from recycling plants.

Gains include lower production costs, governments hitting recycling targets and all of us having a better planet to live on.

Costs and benefits

It is possible to weigh up costs and benefits. A monetary value can be put on them. Businesses want gains to outweigh costs. Corus gains from recycling. Socially. Corus gains a good reputation. There is reduced impact on the environment, lower energy use and less waste. There are also costs. These include the cost of recycling and of collecting and sorting waste steel. Corus has created a number of targets to help measure its success. These are called Key Performance Indicators. They include

Corus’ UK energy use being reduced to less than 1997 levels
an increase in the steel recycling rate to 55%.

Conclusion

Corus works to recycle as much as it can. This helps towards greater sustainability. It shows concern for all its stakeholders. Consumers can also help by recycling as much as they can.

Issues for Discussion

What is sustainability and whose responsibility is it?
Describe three actions that an individual can take to support sustainability and two actions that a business can take?
Steel lends itself to recycling. What actions could be taken to increase public awareness of steel recycling?
Recommend actions that individuals and businesses can take to enhance the closed loop ‘steel to steel’ recycling process.
Recommend ways in which the benefits of steel recycling can be increased compared to the costs of recycling steel.

Case 3

International trade

For centuries Britain has been a country that relies on international trade. We purchase goods and services from other countries and in return we sell them goods and services produced here. An import is a purchase by UK citizens from overseas. An export is a sale by UK citizens to a member of another country.

Visible and invisible trade items

For the purpose of classification we call the tangible goods that we trade visible items. We call the services that we trade invisible items. Exports bring currency into the UK whereas imports lead to an outflows of currency.

The UK has always done well on her invisible account. This is because we developed a world-wide reputation for commercial services. Some of our major invisible earnings come from the following:

* Selling insurance policies through Lloyd’s.

* Bank services to foreigners,

* Tourists spending money in the UK.

On the news every month we hear that the UK has made a surplus on invisible trade showing that we have sold more invisible services than we have bought. The accounts for a particular month might show:

* Invisible exports ?100 billion

* Invisible imports ?80 billion

* Invisible surplus f20 billion

At the same time the UK frequently makes a loss on her visible trade.

A typical current account showing the UK’s trading with the rest of the world in a given period, may therefore look like the following:

Visible exports 500 Invisible exports 400 Total exports 900

Visible imports 650 Invisible imports 200 Total imports 850

Visible balance -150 Invisible balance 200 Current balance 50

The current account of the UK balance of payments gives a good guide to current trading in visible and invisibles with the rest of the world.

Issues for Discussion

Analyze the case at length

Case 4

Embracing and pursuing change

Introduction

AEGON UK is part of one of the world’s largest pension and insurance groups. The AEGON Group has over 27,000 employees. It has over 25 million customers worldwide. In the UK it has grown its customer base. It has also bought other businesses. Its aim is to become ‘the best lone;-term savings and protection business within the UK’. To achieve this, it is keen to change in order to improve. AEGON also needed to raise its profile in the UK. The companⁱes which it bought, such as Scottish Equitable, tended to keep their own brand image. AEGON therefore needed to build ^onthe global strength of the Group.

External factors

External factors are those outside the control of the business. It is vital for businesses to be aware of these changes. Changes that have affected AEGON include:

* people are living longer so need better pensions

* the insurance industry has had a poor reputation. In some cases the wrong products for people’s needs were sold. This is called miss-selling. As a result, the Financial Services Authority (FSA) made regulation tighter.

* financial products can be hard for people to grasp

Investment returns have been less than predicted. Many people have therefore not ended up with the sums that they had hoped for

There is a lot of competition in the industry.

Why change?

Government imposed price controls reduced profitability. Also. AEGON was not a well-known brand. It needed to be better known before consumers would see it as a good place for long-term investment. AEGON went through a ‘discovery’ phase. This was to find out what it needed to do to reach its aim. It set out to find out:

* what the brand stood for in the UK

what they wanted it to stand for
how they were going to reach this.

A brand audit was used. This looked at AEGON both from within and outside. This information could then be used to plan change.

Creating a culture
The culture of an organization refers to the way that it works. AEGON created a culture of change. AEGON needed to do well financially. This was linked to raising awareness of the brand and building on AEGON’s global strength. This meant:

* financial services in simpler forms that customers could grasp

* a workforce improved through training and development. This would b•^, better able to manage change

* a more distinct market presence.

AEGON developed a framework to help all its staff support its brand values.
Implementing change

AEGON used a number of methods to achieve the

* external promotional campaigns

* the new Chief Executive (C1 O) talked to the media about the need for change

* new and innovative products were launched,

AEGON’s success can be seen through the record results, increased new business and growth in earnings.

Conclusion

AEGON recognized a need to give itself a greater market presence. The change has made the organization much more customer focused. As a result it is more effective.

Issues for discussion.

What are the external factors influencing the change. Discuss
Identify the reasons for change
Creating a new culture is a key part of the change process
Carry out the implementation of the above.

BUSINESS COMMUNICATION XIBMS EXAM ANSWER

Xaviers Institute of Business Management Studies

Subject Title: BUSINESS COMMUNICATION

Maximum Marks: 80

Answer Any five questions (5 x 16 = 80 Marks)

Explain verbal symbols and their advantages in Communication.

(OR)

Differentiate between ‘posture’ and ‘gesture’ using specific examples.

Explain the following roadblocks which make communication slow and inefficient:
Strong emotion
Self centeredness

(OR)

How does ‘Lack of common language’ remain a roadblock to effective communication? Explain.

Imagine that you are going to give a lecture to a group of business executives. How will you structure your presentation?

(OR)

What is an agenda (of a meeting)? Explain the purpose of preparing an agenda.
Imagine that you are the GM of STAR TV Ltd., Chennai-63. Your company had achieved a sales target of 1,50,000 TV sets during the year 2009. But in 2011 till Nov. 2010, your company could sell only 1,00,000 TV sets. You have convened a meeting of the sales Managers and marketing executives of your company to discuss the ways and means of achieving the target sales.
Prepare an inter-office memo informing those concerned to attend.
Prepare an agenda of the meeting.

a. Read the following letter sent to a dealer and analyse the tone of the letter.

ABC Electrical Ltd.,

52, Gandhi Road, Coimbatore – 641 047

Madhavan,

Sales Manager. Dt : 10.12.2010

The Manager,

Sathiya Agencies,

21, Swamy Sivanandha Salai,

Salem-11.

Sir,

Ref : Our bill No. 4225 dt: 21.06.2010.

We have sent 15 five HP Electrical motors as per your request six months ago. You have paid 50% of the total cost of the motors at the time of placing orders for the supply. You

have not bothered to settle the remaining money. Inspite of repeated reminders you are silent. Do you think you can cheat us? You must be a fool to think so. If you do not settle the bill next week, we will file a case in the court to recover the money.

Sincerely yours,

Sales Manager.

Rewrite the above letter with a suitable tone.

What are the important factors of persuasion? Explain any Four.

Case study : (Compulsory)

Hunter Hunts for College Grads

Woody Hunter had been an HRM analyst with Control Data Corporation (CDC) for three years but was recently reassigned to the college recruitment staff. The basic duties in his new job were to visit college and university campuses and interview seniors in order to identify individuals who could fill entry-level positions at CDC in accounting, engineering and marketing.

After three months’ travelling on the road, Woody received a report summarizing his performance to dat. The figures showed he had conducted 540 preliminary interviews on 18 different campuses. Woody had follow-up interviews with 136 of these students, or approximately 25 percent. Based on these second interviews, Woody recommended to his supervisor that 71 candidates be invited for company-paid visits to appropriate CDC manufacturing and administrative facilities where new college graduates were needed. All of Woody’s selectees were offered visits.

What concerned Woody and his supervisor was this statistic: Only four of the seventy-one candidates accepted the CDC invitation. Based on over seven years of recruiting experience with CDC, Woody’s supervisor said that the company traditionally had better than a 60 percent acceptance rate. Woody’s boss knew there was something seriously wrong. He asked Woody to summarize how he described opportunities at CDC to the recruits.

“I ask the students if they have read the CDC literature in the placement office,” replied Woody. “Most usually have, but if they haven’t I highlight what we do at CDC, the kind of entry-level positions we have to fill, and the kind of people we’re looking for. But I know that these students have heard similar propaganda from a dozen other big company recruiters. So I emphasize the things CDC has that others don’t. One thing I never fail to mention is our benefit package. It is superior to anybody else’s. I tell students about our tuition-reimbursement plan, our comprehensive health insurance program, and our pension system. I tell them that our pension plan vests after only five years. I point out that the employee pays nothing into it-that all the costs are paid by CDC. Most important, I emphasize that they can retire at age fifty five and receive 80 percent of the salary they were making in their last year. There’s not a pension plan anywhere that attractive. I even take the time to show the students how, with inflation figured in; they can probably expect a pension of $200,000 or $300,000 a year if they come to work for CDC.”

Questions:

What role do you think benefits play in the employment decision of a new college graduate?
What role do you think the beginning salary plays in the employment decision of a new

college graduate?

What suggestions would you make that might improve Woody’s acceptance ratio?