KUD MBA 3rd sem question papers

find the question papers of Karnataka University Dharwad MBA 3rd sem

1. JSS. Dr. D. VEERENDRA HEGGADE
Institute of Management Studies and Research Library

Question Papers

3rd Semester December, 2010
(2009 - 11 Batch}

2. CS

JSS. Dr. D. VEERENDRA HEGGADE
Institute of Management Studies and Research Library
Third Semester MBA (CCS) End Term Examination Question Papers December 2010

2019 — 11 Batch
Subject Code | Course Title Credit [FageNo |
Ey Total Quality Management 3 12
Cor Business Process Re- Engineering. and 7 33
Benchmarking.
CE Strategie Management 7 HE
Cu Business Eihice 3 Ea
Gs Industrial Marketing 7 15-17
TH Sales Management 3 [EU
Cs Service Marketing 2 2-5
[co “Customer Relationship Management 3 7-8
Ce ‘Brand Management 7 3-8
as Intematlonal Marketing Management 7 EX
cs Retail Management 7 EEE
cm Financial Decisions 7 3537
Cr Tatematfonal Financial Management 7 ER
Ey ‘nancial Tnstiuton and Markets 7 3-8
ar Derivatives Markets 3 9-8
CH Security Analysis and Portfolio Management | 8
Gr ‘Organizational Development and Tastnufonal | 4 30-57
Building
y Performance Appraisal and Counseling 7 EJ
= Tegal Environ. and Indusval Relations E 3-7
Co Strategie Management of Human Resources |? 3
oF Human Resource Development E CET
COE Introduction to Entrepreneurship Development | 4 9-6

3. 8415 - C01 - MISMBA - CBCS - D - 10

‘THIRD SEMESTER M.B.A. (CBCS) DEGREE EXAMINATION, DECEMBER 2010
MANAGEMENT
Total Quality Management

Time : 3 Hours] [Max. Marks : 50

SECTION — A
1. Answer any 10 out of 12 sub-questions. Each carries one mark
2) Importance of TOM
b) Run Chart
©) Internal failure cost
d) PDCA cycle
©) Service quality model
D Seiri of 5-S
8) Benefits of having ISO 14000
h) Quality function deployment
D Kaizen
D CILEXIM bank award
K) Suggestion system
D Affinity Diagram. (10x1=10)

SECTION - B

Answer any 4 out of 5 questions. Each carries five marks

Explain TOMEX model.

3. Discuss the working of a quality circle.

4. Explain the construction of Pareto diagram.

5. What are the differences between Kaizen and Innovation ?
6.

5. Discuss appraisal and failure costs of quality.

1

4. 8415 - CO1 - IIISMBA ~ CBCS - D - 10

SECTION - €
Answer any 1 out of 2 questions carries ten marks
Explain in detail the EFQM award model

8. Discuss the contributions of Deming through his 14 principles, (1x10=10)

SECTION - D
(Compuls

y)
Case Study 10

s. Mr. Prakash, the
ity of the

9. Promax Ltd. is into manufacturing automobile compone:
Chairman of th
products. He has consulted a Consultant. TI

n new ideas to improve the ql

e consultant advices him to implement

good suggestion system and quality circles. If you were that consultant how would

you go about in implementing these things and why ?

5. 8416 - C02 - IHISMBA - CBCS - D - 10

‘THIRD SEMESTER M.B.A. (CBCS) DEGREE EXAMINATION, DECEMBER 2010
BUSINESS PROCESS REENGINEERING AND BENCHMARKING

Time :1', Hours] [Max Marks : 25

SECTION - A

Answer any five from the following (Write in 2-3 sentences). (1x8=5)

1. How did benchmarking originate ?

2. Whatis external benchmarking ?

3. List any 4 types of benchmarking.

4. List 3 examples of BPR.

5. List 3 common features between BPR and TQM.

6. List down any 3 pitfalls in the success of BPR.
SECTION - B

Answer any 2 ofthe following: @x6=12)

1. Benchmarking has emerged as an important concept in quality improvement and
management discuss

2. Itis claimed that successful implementation of BPR is not expensive, Do you agree
with this ? Discuss

3. Internal benchmarking leads to unhealthy in environment in the organization. Do
you agree with this ? Justify.

SECTION - C

Solve the case :
Restructuring Malnad Manufacturing Company

Malnad Manufacturing Company manufactures pneumatic control valves. The firm
has about 1500 employees and has successfully produced a line of control valves
that are price competitive in the industry. However, problem arise whenever a new
control valve has to be produced. Developments in electronics, metallurgy and
flow control theory require the introduction of new products every year or two.
‘The development of those new products have been associated with interdepartmental
conflict and disagreement.

6. 8416 - C02 - IIISMBA ~ CBCS = D- 10

For instance, consider the case of a control valve code numbered CV 505 which is
in process. In productionising this new valve, the following departments or groups
are involved.

i) Research and development departments or group which developed the basic
design of the valve.
ii) Engineering department which converted the design into a prototype control
valve,
ii) Materials department which must acquire parts for the prototype and make
plans for procuring parts needed for the production runs.
iv) Production department which has to manufacture and assemble the product
and
y) Marketing department which is responsible for sales,
Department heads believe that future work on the CV 505 valve should be done
simultaneously instead of sequentially. Marketing wants to provide input to research
and development so that the design will meet customer needs. Production insists
that the design fit machine limitations and be cost efficient to manufacture. It also
wants to speed up development of the final plans so that it can acquire tooling and
be ready for volume production of standardised design of valve CV 505. Engineering,
on the other hand wants to slow down development to ensure that specifications
are correct and have been thoroughly tested.
All these problems with the CV 505 exist at present and department managers are
frustrated and becoming uncommunicative. The research and development and
engineering departments are keeping their developmental plans a closely guarded
secret, causing frustration for other departments. Added to that, several departmental
managers are new and are inexperienced in new-product development.
Mr. Chandrakanth, the general manager likes to keep tight control over the
organisation. Departmental managers are instructed to discuss with him before making
major decisions. But with CV 505, the general manager has not been able to keep
things running smoothly. The span of control for Mr. Chandrakanth is so large that
‘he has no time to personally monitor the CV 505 development through the system.
On November 1, Chandrakanth received a memo from the marketing department
head which read in part as below :

4

7. 8416 - CO2- HISMBA - CCS - D - 10

„Te CV 505 must go to market immediately. This is very urgent. It is needed now
because it provides the precision control which our competitor' products already
have. Three of our sales people have reported that loyal customers are about to
Place order with competitors. We can keep this business if we have the CV 50S
valve ready for production in 30 days”

Questions :

1) Is there a proper balance between vertical and horizontal structure in Malnad
Manufacturing ? Is it appropriate that department managers always run to the
executive vice president for help rather than helping one another ?

2) Ifyou were Mr. Chandrakanth, how would you resolve this problem ? What could
You do to facilitate production of the CV 50S valve over the next 30 days ?

3) What structural changes would you recommend to prevent these problems in
future new product developments 2 Would a smaller span of control help
a project manager with responsibilities for co-ordinating the CV 505 or a task
force ? (243438)

8. -D-10

8417 - C03 — IISMBA - CBC:

THIRD SEMESTER M.B.A. (CBCS) DEGREE EXAMINATION, DECEMBER 2010
MANAGEMENT
STRATEGIC MANAGEMENT

[Max. Marks : 50

SECTION - A (10x1=10)

Answer any 10 questions

3) What do you understand by Learning Organizations

Explain the concepts of ‘Business Policy’ and “Strategic Management

©) What is the contribution of Henry Mintzberg in th

Management ?

4) Define ‘Competitive Advants

je Resonance’

€) What do you understand by the term ‘Str

ish between vision, mission and goals of an o

9 Disti

s differ from Corpora

£) How do Business Level Strat
hh) What are the various methods to acquire core capabilities ?

to ‘Supplier Power

te three major aspects eontributi

ish between Transactional and Transformational Leadership Strategies.

Business Firm.

SECTION ~ B

Answer any 4 questions

rms within the industry’ as a force in driving

te considering any industry of your choice.

plain ‘Rivalry among
industry competition. Demonstra

business

3 es the risks associated with more ‘Star’ and ‘Dog

3. Explain with ex:
units in the portfolio of any Corporation.

mo.

¢

9. ‘8417 COS - IISMBA ~CBCS -D-10

4. Explain with examples the strategy of “Diversification Growth’ and enumerate
the advantages of the same.

5. Explain with illustrations the differences between “Quasi? and “Full” methods of
Vertical Integration.

6. Explain the ‘Location’ Tactic employed by organizations to gain advantage in
the marketplace.

7. How does the GE Nine Cell Matrix score higher over the BCG Matrix in terms
of better portfolio analysis ?

(ON - C ax

Answer any one question :

8. What is meant by “Retrenchment Strategy’ ? What are the underlying factors for
adopting this strategy ? Discuss with suitable illustrations the difference between
the strategy of ‘Sell Out and “Divestment” followed by organizations.

9. Conceptually, Strategy of a firm consists of three inseparable parts : Corporate
Strategy, Business Strategy and Functional Strategy.

2) Why is it relevant and important to maintain synergy between the three?
5) In what situations do we have mismatch between the three 7 Explain
SECTION - D
10. Read the caselet given below and answer the questions to follow :
MAHINDRA & MAHINDRA : DRIVING THE GLOBAL TRACTOR MARKET*
“The size of India’s trator market more than doubled to 280,000 units during the
decade of 1990s, making India the world’s single largest tractor market , By

1999, more than a third of the world tractor market's estimated 800,000 units
were produced and sold in India

10. 3 $417 CO3-MISMBA-CBCS-D-10

‘Tractor market is segmented on the basis of the power of the engine measured in
horsepower (HP) :(1) up to 25 HP (small size), (2) 26-45 HP (medium size), and
(9) 45+ HP (large size). In India, the market is distributed 20%, 60% and 20%

respectively in these segments. In contrast the popular range of tractors is 60 HP
in Europe, and 90 HP in the USA. The Indian farms are smaller than those in

Europe and the USA

+ Which makes the higher power tractors less economically

viable except in those cases where the farms are managed through cooperatives,

‘or where the soil demands more powerful tractors. Unlike the tractors worldwide

that have advanced features and accessories, tractors in India tend to have low

Price, no fills, and rugged features. Due to their low costs, the tractors in India

are 1/4" the international prices for similar powered tractors

Entry of large number of multinational firms India has changed the competitive
dynamics of the tractor market. Until the mid-1990s, six companies- Mahindra
scorts, HMT, and TAFE-

Controlled 98% market share. These companies operated only in the small and

and Mahindra (M & M), Punjab ‘Tractors, Eicher,

medium size segments, and used indigenous technologies. Between 1997 and
1999, six new companies entered, including renowned international players like
Cas

New Holland, John Deere, International Tractors, and Steyr, some in

Collaboration with the local joint venture partners.

Since the expertise ofthe new multinational entrants lay primarily in the higher
HP tractors, their entry focused on the large size'segment, where there were
limited domestic offerings, and built significant new manufacturing capacity

‘The companies such as Sonalika (a joint venture between International Tractors

3

11. 8417- COS - IIISMBA - CBCS -D 10)

and the Mittal group) also formed collaborations with the Indian government
farm research centers to obtain technologies for expansion into medium powered
tractors-the largest segment of the Indian market. Meanwhile, to pre-empt new
entrants from gaining inroads, the domestic incumbents also added significantly

to their capacity

By 2000, the tractor production capacity in India reached nearly 0.5 million units
per year. But due to poor monsoons for four straight years from 1999 10 2002,
market demand crashed to nearly half ofits peak 1999 volumes to 150,000 u
in 2003. As such, only 30-35% of the capacity was being utilized.

became finer, and

{As a result of the growing competition, market segmenta
the pace of new model introduction grew. A new distinct 41-50 HP segment
‘emerged for attracting customers from both higher-end of the medium-size HP
segment as well s lower-end ofthe large-size HP segment. Further all established
players, as well as many new entrants, introduced models in as many sub-segments
as possible. TAFE, for instance, with nine models from 25 HP to 75 HP, planed
to introduce two more models in the 50-60 HP capacities.

Most new entrants had deep pockets, and sought to force their way into the
tractor market by offering cheap long-term credit. However, established incumbents
in the market were determined not to let new entrants build relationships in the
rural market. The incumbents responded by matching the liberal credit schemes,
for both dealers and consumers, and marketing aggressively through their more
extensive dealer networks with a view to defend their market shares. An upshot

12. Of these credit wars was a massive build-up of inventories at the dealer end, and

huge ine

se in the working capital of the tractor companies tied as the credit 10
‘dealers and consumers. Consequently, many tractor companies saw their bad
debts rising to unprecedented levels, and got into a precarious financial situation

Punjab Tractors, the second largest maker of tractors in India after M & M, was
‘Worst affected by the intense competition. Founded by the Punjab State Industrial
Development Corporation, with an equity stake of 23.5%. Punjab Tractors had.
about 20% share of the Indian market in 2000. With its roots in the state of

Punjab, where the land holdings are of larger size as compared to the rest of
India, and where the farmers perceive higher-powered tractors as a symbol of
Status, its product line had traditionally focused on the 30+ HP segment. It was
directly hit by the intense competition in the medium and large size tractors, and
saw its market share tumble to 15% in 2002. In December 2002, the state
government put its equity share up for sale, but found no bidder among the
‘current players. Ultimately, the British government-owned investment institution,
Commonwealth Development Corporation (CDC), bagged the state’s 23.5%
share for Rs, 218.13 crores[-$ 45 million].

In this market, M & M, consistently a market leader in India since 1983, managed
10 boost its share from 27% to 35%. Among other things, it effectively used the
industry-wide credit wars as an opportunity to develop its financial subsidiary

| for offering a comprehensive advisory package to the market, leveraging on its
extensive dealer network and reputation with the farmers.

| 10

8417-C03- MSMBA - CRCS - D - 10

13. 8417-003

MBA-CBCS-D-10 =

Now, M & M has set a vision to become the world’s la

by 2005. M & M is expanding its exports to African, South American, South

Asian, and Middle East Markets, where the need and use of vehicles is akin to

India. In 2002, M & M tripled the parts warehouse and assembly production:

apacity at its Houston, Texas headquarters in t n 1994, and

e US, founded

-ommissioned another assembly plant in Georgia to double its assembly capacity

M & M has created a vast dealer network in the US, and has become a favorite in

the ‘hobby’ farmer segment (the farmers who work on farms in off-hours,

weekends, and holidays) with its 30 10 55 HP models, taking 40% of th

at market

UK

from its rivals in two years. In 2002, M & M established a subsidiary in

to market tractors exported from India, and soon set

a plant for assembling the

4 from India,

semi-knocked down tractor kits impor

M&M is seeking collaborations with other companies

for marketing their h

Ih power tractors in the US and Europe. It won a contract

for the worldwide marketing of the tractors of Korean firm Tong Yang. It has

commissioned a state-of introduced

the-art R & D center in India and ha

comprehensive business process re-er

neering in its operations, o achieve world:

class supply chain management, total quality control, and customer services

The reins of M & M, now the 3" largest tractor manufac

er in the world, are in
the hands of Anand Mahindra, a 1981 Harvard Business School MBA graduate,
who is an advocate of a leadership that believes, even in bad times, that ‘We have

the DNA to survive, absorb the microbes, a

build our own vaccines to make

ourselves stronger"

14. COS ~IIISMBA — CBCS -D - 10

Discussion Ques
1) How would you characterize the structure of the Indian tractor market before
and after liberalization ?

2) What major strategies is M & M using to compete in the Indian tractor market
? Are these strategies consistent with the structure of the market ? Explain.

3) Why could Punjab Motors not adapt to the new rules of the game after
liberalization ?
4) What major strategies is M & M using to compete in the global tractor market ?

What resources, capabilities, and core competences ate enabling it to
be a global contender ? (2424343210)

15. 8418 — C04 - IIISMBA - CBCS -D = 10

‘THIRD SEMESTER M.B.A. (CBCS) DEGREE EXAMINATION, DECEMBER 2010
MANAGEMENT
Business Ethics

Time: 3 Hours] [Max. Marks: 50

i) Write elearly and precisely.
ii) Quote examples to illustrate your answers.

Instructions:

SECTION - A
1. Write a few lines on the following. Each carries one mark (any ten): (10x1=10)

a) Eihics

+) Bihical culture

©) Ethical management

4) Management or ethics,

€) Ethical dilemma

9) Ethical standards

2) Ethical organisation

h) Ethics policy

$) Ethical working environment

D Ethics programme

%) Ethics committee

D Ethics raining.

SECTION - B

Answer any four questions. Each caries 5 marks. (4x5=20)
2. What is the role of ethics in business management?
3. How to develop sensitivity to ethical issues in business and society ?

4. What is management of ethics in the organisation ? How to go about evolving
‘ethical management practices inthe organisation ?
ero.

13

16. 8418 - C04 — IIISMBA ~ CBCS —D = 10

5. What is an ethical dilemma, how to resolve them ?

6. Discuss a few theories (evolved to discuss ethical resolution) and discuss how
these theories throw light on the issues involved.

7. What are the ethical issues arising in functional areas such finance, marketing and
human resource ? Discuss issues in any one of the areas.
SECTION - C
Answer any one of the two questions. Question carries 10 Marks (1x10=10)

8. “Understanding religion moral science as well as history enables us to evolve a firm
ethical base”, Discuss this statement with examples.

9. Taking example of an ethical organisation discuss the benefits of being ethical.

SECTION - D
(Compulsory) 10
10. Ambareesh Textiles Pvt. Ltd. is in the business of making garments. Oflate it has
developed a very sound export base. It is able to export 50% of its 20 crore
production. There are many varieties of fibres and yam from whom textiles can be
produced. Some are harmful to health some are not. Ramachandra founder of the
unit had always avoided manufacturing garments with fibres harmful to health. His
son Prakash who has joined the business after his MBA for U.S.A. is of the opinion
that such an approach diminishes profits and reduces market options as cheap
‘garments can’t be produced without using harmful fibres or yam. He has quoted
the practice or several other manufacturers who are using all types of fibres or yam.
as the market demands. Members of the board of directors are also in favour as it
will expand the market opportunities.

If you were Ramachandra discuss how will you go about convincing the board.

17. 8419 - COS - HISMBA - CBCS - D - 10

THIRD SEMESTER M.B.A. (CBCS) DEGREE EXAMINATION,
DECEMBER 2010
MANAGEMENT
Industrial Marketing

Time: 3 Hours] [Max. Marks : 50

SECTION -A

1. Answer any 10 (10x1=10)
2) What is a buying centre ?
b) Explain the concept of derived demand using an example.
©) What is a sealed bid ?
d) What is new task buy ? Give example.
e) Give the brief classification of industrial market customers.
) Who are OEMS ? Give example.
8) Give the classification of goods for business markets.

h) Who are gate keeper and influencers ?
à) What is supply chain management ?

À What is competitive bidding ?

k) Who are Novices and Sophisticates ?

D What are ‘auctions’ and ‘reverse auctions’ ?

SE

TION - B

Answer any 4
2. Discuss types of industrial markets.
3. What factors affect price determination for industrial products ?

4. Wri

note on test marketing for industrial products
5. Discuss the nature and importance of distribution channels in business markets,

6. Discuss the determinants of industrial marketing demand.

Pro.
is

18. 8419 - C05 - TIISMBA - CBCS-D-10 2

SECTION - C
Answer any 1 (1x10=10)
7. How does industrial marketing differ from customer product marketing ?

8. Write a marketing programme for industrial products,

SECTION - D

Read the case and answer the questions that follow 10

ABC Lid. and XYZ Ltd. are two companies that compete in the same industry ic.
automobile and are reputed automakers engaged in the manufacture and sales of
passenger cars,

Incidently both these firms differ in the way they mange relationships with their suppl
ABC Lid, is an innovative company that produces small to midsize cars. Mr. Kapoor,
a purchasing executive at ABC Ltd., emphasize this philosophy, “The success comes
from the partnerships developed between ABC Lid, and its suppliers”. Each of ABC
limited's suppliers appoints an executive to a team that meets every quarter to bring
out their competencies and ideas directly into the planning process at ABC Ltd.

Mr. Kapoor believes that those partnerships must be build on a foundation of trust
and mutual respect but also strongly believes that this suppliers must be challenged
on pricing aspects, service and technology. He feels that there have been instances
‘where there has been full trust but suppliers were not sufficiently challenged towards
performance goals. ABC Lid, realised the need for a balanced approach that required
incentives to suppliers for meeting performance standards. At XYZ Ltd there is
sense of urgency to improve performance because the automake has lost market hare
and seen its operating profits declined sharply. For the past several years. XYZ Ltd.,
has implemented a series of * Supplier cost reduction effort” programs. These programs
encouraged suppliers to find cost efficiencies and share some of their savings with
XYZ Lid. Under this program, XYZ Lid., has asked its suppliers for annual price
reductions of 3%. Recently Mr. Sharma, purchase executive of XYZ Lid., decided to
accelerate this process and ask for a 5% reduction in prices. Moreover an additional
10% in cost savings or expected to come from XYZ Ltd., is ERP system. Here
purchase personnel from XYZ Ltd., work with 150 key suppliers to identify areas for.
cost improvement.

16

19. 3. 8419 ~ COS - IIISMBA - CBCS -D- 10

Mr. Sharma explains, “In this program, we co-operate with the suppliers from the
design stage through the manufacturing and delivery of vehicles and find ways to
reduce costs”. The reactions of suppliers to cost reductions initiative way. A spokes:
person from one such supplier says, the firm will work with XYZ Lid,, to achieve
savings in a way, that “ensures the success of both companies”, However, another
supplier considers such initiatives by XYZ Ltd., as unfair and says : “They are trying
to piggy back off the backs of suppliers”.
Questions
2) In your view, which approach will yield fresher and better new product ideas forthe
automakers ABC Lid,, and XYZ Ltd., Higher quality automobiles or lower prices ?
b) What are the short term and long term benefits or consequences of the purchasing
strategies for ABC Ltd,, and XYZ Lid. ?

20. 8420 - C06 - IISMBA - CBCS - D - 10

THIRD SEMESTER M.B.A. (CBCS) DEGREE
MANAG

AMINATION, DECEMBER 2010
T

Time : 3 Hours] [Max. Marks :50
SECTION ~ A (a0x1=10)

1. Answer any 10 questions
2) What is persor

1 selling ?

b) What are objective of sales management ?

©) What is the role of sales management ?

4) Define types of personal selling.

©) Define theories of selling - AIDA concept.

1) What is selling process ?
8) What is market potential ?

h) Define sales forecasting.

1) What is market demand forecasting ?
i) Del
K) What do you mean by telemarketing ?

ne sales budget

SECTION =B (4x5=20)
Answer any 4 questions
2. Define role of sales management in a newly launched SUV's success in India.

3. Define emerging trends in 21* century sales management profession,

4. Define sales organization, types of sales organization structure and factors influencing
the structure with one corporate example.

5. Define functions and qualities of sales executives with examples.
6. What do you mean by sales quota objectives and principles of setting sales quota ?
7. What do you mean by marketing decision support system ?

wo.

19

21. 8420 - C06 ~ HISMBA - CBCS =D - 10 2

SECTION - € (1x10=10)

Answer any one question

8. Design a market research plan for conducting a survey in your city for selling newly
launched two wheeler by an MNC and also workout on marketing MIX to meet the
requirement ofthe population in the region.

9. Submita proposal to your CEO forestablishing a sales department in north Kamataka
for industrial valves and control systems justifying sales force size, salary, incentives,
benefits and sales target commitment,

SECTION - D

10. Hyundai humbles Japanese rivals with record Q3

Hyundai Motor Co. beat forecasts with a record quarterly profit as government
incentives fuelled strong sales of its cheap, fuel-efficient models, setting the bar
impossibly high for its struggling Japanese rivals
‘Hyundai’ strong results, ts second record quarter profit in a row and more than
triple the year ago figure, come asthe global industry struggles to emerge from its
worst ever downturn
Honda Motor Co. isthe only major Japanese car maker expected to post an operating
profit inthe fiscal first half, the Nikkei business daily reported on Thursday,
But Hyundai has taken advantage ofthe turmoil, ramping up its marketing spend to
gain market share and overtaking Ford Motor Co. to become the world's
fourth-largest automaker by sales in the first half ofthis year when combined with
afilate Kia Motor Corp.

"These are amazing earnings,” said Kazutaka Oshima, CEO at Rakuten investment
management in Tokyo. “The figures reflect Hyundai increased share in the Chinese
and North American markets, and that's a threat to Japanese automakers.”

But Hyundai warned a firmer won, rising oil prices and higher interest rates might
hit earnings in the months ahead and its shares were little moved, after a 50 percent
surge in the third quarter,

*Third-quarter earnings came very strong and the fourth quarter could be also
excellent, thanks to the new model launch, but momentum is likely to slow next
year,” said Choi Jong-Hyeok, a fund manager at Midas Asset Management. “It will
be difficult to beat this year.”

19

10

22. 3. 8420 - C06 - MISMBA — CBCS - D—10

Hyundai's Genesis sedan and revamped Sonata have proved popular, while earlier

schemes offering U.S, buyers the chance to return new cars ifthey lost their job or

to fix in fuel prices fora year also won admirer.

Hyundai posted a net profit of 979. billion won ($832 million) in the third quarter,

more than three times the 264.8 billion won ofa year ago and beating 2616.3 billion

won forecast by 11 analysts in a Reuters poll. Nt profits were boosted by equity

gins from overseas unis, the company said,

Its operating profit o 586.8 billion won beat forecast fora 561.2 billion won profit.

Hyundai shares dipped 0.5 percent after the results, having far outperformed a 14.5

percent gain in the country's main KOSPL index in the third quarter.

But both Hyundai and the broader index have lost ground since amid concerns

over the impact of a stronger won

The won is recovering on the back of weakness in the dollar It gained 8.1 percent

versus the dollar in the third quarter and is up 36 percent since carly-March.

Hyundai’ rivals in Japan are also struggling to cope with a weak dollar and their

reliance on the United States and their home market, both of which are struggling

with the weakest demand in decades.

World No. Toyota Motor Co. is expected to post an equivalent quarterly net loss

of around 25 billion yen ($275 million) when it reports early next month.

The Nikkei said Honda, Japan's No, 2 behind Toyota, will likely post an operating

profit of 60 billion yen (8660 million) forthe April-September first half, beatin

forecast for a loss on cost-cutting and solid sales of fuel-efficient cas.

Honda's reported first haf figure implies an operating profit of 34.8 billion yen for

the July-September quarter, which would be below the average estimate for a

41.7 billion yen profit in a poll ofS analysts by Thomson Reuters VB/ES.

Honda reports next week, with Toyota and No. 3 Nissan Motor Co. following the

wweekafter.

Results from the third-quarter reporting season in Europe have largely met

expectations thanks to government incentives boosting sales, but shares have

struggled on concerns about next year.

Third quarter results from fiat on Wednesday met expectations but the Italian

Carmaker'sshares gave back recent gains, dropping over 6 percent, while analysts

said PSA Peugeot-Citroen’s failure o shore up production ahead of what could be

a bleaker 2010 caused its shares to slide 6 percent.

1) Devise a sales strategy plan to ensure dominance of Japanese cars across the
world again, also consider the marketing MIX forthe same

20

23. 8422 - C08 - HISMBA - CBCS - D - 10

‘THIRD SEMES

ER M.B.A. (CBCS) DEGREE EXAMINATION, DECEMBER 2010
MANAGEMENT
Services Marketing,

Time : 1'/, Hours] [Max. Marks: 25

SECTION - A
1. Answer any five out of seven questions, each carries one mark (x18)
a) Whats Service Encounter?
1) What are the Service Characteristics?
©) What are the Service Quality Dimensions?
à) What is Customer Gap?
©) What are Customer Expectations ?
$) What do you mean by Physical Evidence ?
2) What is Services Marketing Mix ?
SECTION -B

‘Answer any two out of three questions, each carries S marks, (2x5=10)

2. Distinguish between desired service and adequate service. Why should a service
provider need to understand both ?

3. Can provider gap 4 be closed prior to closing any other three provider gaps ? How ?

4. What are examples of services that high in credence properties ? How do high

‘credence properties affect consumer behaviour for these services ?

ro.

ay

24. 8422 - C08 - IISMBA - CBCS - D - 10.2-

SECTION - €

5. Compulsory
‘Scandinavian Airlines System
‘Meeting Customer Expectations
Flying has gotten a lot lighter on the pocketbook than it used to be. In the last
20 years, airline ticket prices have dropped by as much as 60%, as have airline
profits. With more airlines and service altematives available to consumers than ever
before, competition among carriers has become fierce, and meeting customer
“expections crucial.

“Our goal is that 100 percent of our customers must want to travel with SAS again,”
says Jan Stenberg, president and CEO of Scandinavian Airlines System. “Ninety-five
percent of them do today, so there is some room for improvement,” says Stenberg,
‘confirming that customers’ past experiences are critical to his company.
Scandinavian Airlines System (SAS), the third largest cartier in Europe, isone ofa
number of airlines struggling to stay aloft. A deregulated European market, a
recession, the hijacking and subsequent attack on the World Trade Center, andthe
fact that 7 of its 20 competitors are either government-owned or subsidized hasn't
made the last 20 years easy for the company. However, after suffering four
consecutive years of operating losses, in 1994, SAS made a U-turn, posting a
profit. .

What created the winds of change for SAS ? While some ofits competitors slashed
prices in order to fill seats, SAS took another approach. Instead of selling cheap
seats, the company expanded a marketing strategy initiated in the mid-1980s : it
became “The business traveler's airline”. More recently SAS increased its number
of fights and connections, offered free one-day stopovers in Copenhagen and
‘Stockholm for business travelers wishing to sightsee, and revamped its planes with
ergonomically designed seats and in-cabin, wireless LAN access to the Web and
e-mail services. Travelers can also check in fortheir fights at SAS-afliated hotels
reve from their car phones, eliminating preservice waiting.

SAS also boasts the best on-time flight record of any European airline, which is
important to business people traveling on tight schedules, “Care is about how our
product makes people feel. It includes personal and professional service, friendly
and respectful attention at every stage of the trip, and understanding of the customer's
situation and the willingness and ability to provide comfort and solve problems,”
says Stenberg.

dl

10

25. -3-8422 - C08 — NISMBA - CBCS - D - 10

Part of solving problems involves admitting flights can sometimes be delayed and
assisting passengers affected by them. All passengers who are delayed more than
our hours are given a “customer message card” upon which they can fill in messages.
to be forwarded by phone or fax by SAS. The approach seems to be working. The
company now transports more business-class flyers than any of its European
competitors.

“At SAS we used to think of ourselves as the sum total of our aireraft, our
maintenance bases, our offices, and our administrative procedures. But if you ask
‘our customers about SAS, they won't tell you about our planes, or our offices,
‘or the way we finance our capital investments. Instead, they'll talk about their
experiences with the people at SAS,” commented SAS's former CEO, Jan
Carlzon, who envisioned and implemented the expanded business-class services
in the mid-1980s. In his book, Moments of Truth, in which he detailed his
formula for SAS’s successes in the 1980s, Carlzon estimated that 10 million SAS
‘customers every year came in contact with five SAS employees for 15 seconds
per encounter — amounting to what he called “50 million moments of truth.”
“SAS is not a collection of material assets but the quality of the contact betweer
an individual customer and the SAS employees who serve the customer directly,
he said,

Still, “moments of truth” must be sustained from decade to decade and from

CEO to CEO, Despite SAS's best efforts on a continuing basis, it's still possible

to fall short. Said Helle Katholm Invardsen, a public relations manager from

Denmark : “I travel with SAS very often. SAS used to be better than other

airlines. But several times recently I've felt that they didn’t bother to apologize for

delays. And the other advantages, such as the lounges, cabin service, and so on,
are the same all over no matter what company in Europe you travel with. used to
think I was almost home when I boarded a SAS plane, but I don’t feel that way
anymore.”

Questions for Discussion :

1) To improve profitability, SAS was forced to reduce its work force by over
1,000 employees. How might such reductions affect the ideal, desired, predicted,
and adequate levels of service ? Can the company adjust consumers’ zones of
tolerance in order to cope with staff reductions ?

2) Identify the antecedent expectations of people intending to book airline flights.
What factors play a part in their decisions ? How can SAS improve its
firm-produced factors in order to attract customers ?

23

26. 8423 - C09 - IIISMBA - CBCS - D - 10

‘THIRD SEMESTER M.B.A. (CBCS) DEGREE EXAMINATION, DECEMBER 2010
CUSTOMER RELATIONSHIP MANAGEMENT

Time: 1'/, Hours] [Max. Marks : 25

SECTION =A
1. Answer any 5 (1x5=5)
2) Whatis customer relationship management ?
b) Who are apostles ?
€) What is customer life time value ?
d) Mention the various stages of buyer/seller relationship over the ages.
e) Loyalty card.
1) Explain 'Need-centered relationships’.
8) Mention the attributes of service quality.
SECTION ~ B
Answer any 2 (2x5=10)
2. Explain the steps in CRM.
3. Discuss the methodologies for understanding the voice of customer.
4, Describe the eight building blocks of CRM.

SECTION

-¢
Case Study 10

5. FedEx and Thomas Cook

FedEx analysed the returns on its business for about 30 large customers that generate

about 10% ofits total volume.

Results : —> It found that certain customers including some who required lots of
residential deliveries were not bringing in as much revenue as they had
promised when they first negotiated discounted rates.

> FedEx demanded that some customers pay higher rates.

Pro.
a4

27. 8423 - C09 - IIISMBA = CBCS - D - 10

‘A couple of big customers who refused to budge were told they could take their
shipping business elsewhere
Thomas cook divided its customers into :
{As (those bringing in $750 or more in annual revenues).
Bs (Those bringing in $250- $749)
‘And Cs (those bringing in less than $250)
Results : —> It found that 80% of its customers were Cs.
> When C customers demand time causing services (e.g. asking an
agent to research a trip they are not sure they will take), they are asked
for a $25 deposit.
> This differentations between the best and the worst customers has
resulted in 20% growth in the company’s A and B level clients.
Questions
2) Comment on the customer segmentation of FedEx and Thomas Cook:
b) Suggest various ways of handling each segment of customers mentioned in the
case. ‘

as

28. 8426 - C12 - HISMBA - CBCS - D- 10

‘THIRD SEMESTER M.B.A. (CBCS) DEGREE EXAMINATION, DECEMBER 2010
MANAGEMENT
Brand Management

Time: 1, Hours] [Max. Marks :25

SECTION -A
1. Answer any 5 questions out of 7 questions, each carries one mark (Sx1=5)
2) What do brands mean to you ?
b) What is CBBE?
e) What is brand positioning ?
4) Whats brand expansion strategy ?
€) What is brand proliferation ?
1) What is brand resonance ?
g) What is depth of brand awareness ?

SECTION -B

Answer any 2 questions out of 3, each carries 5 marks. (2x5=10)
2. What do you think of the new branding threats and opportunities ?

3. Explain CBBE model withall the dimensions.

4. Pick a brand. Identify all its brand elements and assess their ability to contribute
to brand equity.

SECTION = C

5. Case Study (Compulsory) : 10

Haieristhe world’s 4 largest white goods manufacturer and one of China’s

‘Top 106 electronics and IT companies. Haier has 240 subsidiary companies and

30 design centers, plants and trade companies and more than 50,000 employees
‘throughout the world. Haier specializes in technology research, manufacture, trading
and financial services. Haier's 2005 global revenue was RMB103.9 billion
(USD128 billion)

wo.

Ab

29. 8426 - C12 -IIISMBA ~ CBCS-D-10. 2:

Guided by business philosophy of CEO Zhang Ruimin, Haier has experienced
success in the three historic periods— Brand Building, Diversification and
Globalization. At the 21" anniversary of founding of the Haier Group December
26, 2005. Haier announced its 4® strategic development stage of global brand
building. In 1998 . Haier brand was officially recognized as a famous brand and in
2005 valued at RMB70.2 billion, Since 2002, Haier has consecutively been ranked
first in the row of China's most valuable brands for manufacture of 15 products,
including reigerators air-conditioners, washing machines, televisions water heaters,
personal computers, mobile phones and kitchen integrations. Haier was ranked fist
‘of China’s Top 10 global brands by China State Bureau of Quality and Technical
Supervision (CSBTS) for refrigerators and washing machines. On August 30,2005,
Haier was ranked 1* of China’s Top 10 Global Brands by the financial times.

Haier has been widely recognized as a leader of 9 products in terms of domestic
market shares and the 3' player of 3 products in the world market and world-class
‘company in the fields of home integration, network appliances, digital and
large-scale integrated circuits and new materials. Haier has long attached significance
to innovation in satisfying the demands of worldwide consumers and realizing
win-win performance between Haier and clients. Haier has currently obtained
6,189 patented technology certificates (819 for inventions) and 589 software
intellectual property rights. Haier has hosted and taken part in modification of about.
100 China” technological standards. Haier invented technology, incorporated in
the Safe care water heaters and dual-drive washing machines has been proposed to
the IEC Criteria,

Haier, “OBC”, “Market-Chain” and “Individual-goal combination” management
performances have been recognized worldwide. Haier's experiences have also
been introduced into case studies of business mergers, and to financial
management and corporate cultures of many foreign educational institutes,
including Harvard University, University of Southem Callifornia, Lausanne
Management College, the European Business College and Kobe University.
Haier's “Market-Chain” management practice has also been recommended to
the EU for Case studies and its “Individual-goal combination”, management concept
has been recognized by worldwide management researchers as a feasible solution
of commercial over stocks and accounts overdue.

Facing fierce global market competition, Haier has launched the global brand building
strategy and updated the spirit, "Create resources, worldwide prestige” and work
style “Individual goal combination, swift action and success”, with an aim to gain
global recognition and sustainable development.

27

30. - $426 - C12 - MISMBA — CBCS-D-10

Haier is an example of how an Asian Company can build a brand and take it
beyond its national market, Haier brand which is built on quality and a
commitment to offer innovative products at a competitive price, exports to over
150 countries around the world, has 13 factories spreading from Philippines to
Iran to the US and recently became the no. 1 refrigerator maker in the world,
overtaking Whirlpool.

Haier traces its history back to the Qingdao General Refrigerator factory, whic
was founded in 1958 as a cooperative to repair and assemble electric appliances.
Till Chinese entrepreneur Ruimin Zhang took charge of the factory in 1984, the
company struggled with its quality and incurred huge losses. Haier attracted
tremendous publicity when Zhang smashed faulty refrigerators with a
sledgehammer, to send out a message about his commitment to quality today.
Haier commands approximately over 30% share of the Chinese market in white
goods and had revenues of US $9.7 billion as of 2003.

‘True to that event, Haier has built its brand on quality. Haier's strategy has been
to establish a leadership position in the domestic market before venturing into
global markets. Unlike most players who concentrate on the low end of the
market by offering cheap products, Haier has focused on offering innovative products
‘ata competitive price and the brand is starting to see results. À case in point is that
Haier is the leading brand inthe US in mini-refrigerator category.

Haier's commitment to quality and innovation is evident by the 18 international
product design centers that it has established in Los Angeles and Tokyo which
are in tun supported by production facilities in US, Japan and Italy

‘Though it is common to see charismatic CEOs such as Sir Richard Branson,
‘Steve Jobs and Bill Gates leading the brands in the Western world, it is hardly the
‘case inAsia. Many Asian executives shy away from publicity. Ruimin Zhang has et
an example to many Asian companies about how the CEO can take charge of the
‘brand and be the chief brand ambassador. Zhang aggressiveness to build his brand,
his commitment to quality and his business acumen has attracted much deserved
global accolades.

‘Ruimin Zhang was placed nineteenth among the twenty-five most powerful people
in business outside the US by Fortune magazine in 2003 and Haier was ranked
the most admired Chinese brand in 2004 by a Financial Times/Pricewaterhouse
‘Coopers survey.

Questions :

1) Analyse the Haier case and identify significant issues.

2) Discuss Haier's branding strategy.

22

31. 8429 - C15 - IISMBA - CBCS - D- 10

‘THIRD SEMESTER M.B.A. (CBCS) DEGREE EXAMINATION, DECEMBER 2010
INTERNATIONAL MARKETING MANAGEMENT

Time: 114 Hours] (Max. Marks 25

SECTION - A
1. Answer any five, each carries one mark. (Sx1=5)

a) Define international marketing management.

b) Give an example where the international marketing has failed because of the
culture of the country.

©) What is privatization ?
4) Define strategic Alliance.
©) What is licensing ?
£) What is negative publicity ?
8) What is meant by nontariff barrier for international trade ?
SECTION - B
Answer any two questions. Each carries five marks.
2. Explain briefly the organization chart of WTO. (2x5=10)

3. Write in brief about the American Culture and how it affects the international
trade,

4. List and explain all the entry strategies to trade in international market.
SECTION ~ C (Compulsory)

5. Case Study : Analyse the case and answer the questions at the end 10
Caterpillar Inc.
‘The inception of Caterpillar In (Caterpillar) took place way back in the 1920s.
‘Over the years, Caterpillar became a dominant player in the manufacture of earth

Pro.

29

32. 8429 - CIS - IIISMBA -CBCS~D=10

moving equipment, and construction and mining equipment and a leading supplier
of agricultural equipment

‘The company also manufactured diesel and natural gas engines, industrial gas
turbines, logging machinery, electrical power-generation systems, etc.

It was recognized as a technology leader in various areas like construction,
transportation, mining, energy, logistics, and electric power generation
Caterpillar’s headquarters is situated at Peoria, Illinois, U.S.A., Italy, Japan,
Malaysia, Mexico. The Netherlands, Nigeria, Northern Ireland, Poland, Russia
and South Africa.

‘The competitive strategies adopted by Caterpillar Inc., a leading earth moving
equipment manufacturer are to produce the earthmovers which can help in mining.
It takes a look at the expansion of Caterpillar’s product line and analyzes the
factors responsible for the company’s successful global operations. There were
many innovations made by Caterpillar to provide quality products to customers
throughout the world and how Caterpillar has achieved a competitive edge by
having a strong dealer network. It describes Caterpillar's deviation from
standardization to serve customers efficiently. Caterpillar differentiated itself from
its rivals by producing best quality products with maximum technology used
it. Expansion of Caterpillar product line helped them to target all major customers
and major heavy industries all over.

Questions
à) Comment on Caterpillar's diversification into various businesses over the years.

ii) Discuss the reasons for Caterpillar having a competitive edge over its
competitors.

30

33. 8430 - C16 - IHISMBA - CBCS - D- 10
THIRD SEMESTER M.B.A. (CBCS) DEGREE EXAMINATION, DECEMBER 2010
RETAIL MANAGEMENT

Time: 90 Minutes} [Max. Marks: 25

SECTION=A
1. Define the following. Answer any 5. Bach caries 1 mark (Si)

a) Breaking bulk

5) Retailmix

©) Category killers

d) Anchor

©) Freestandingsite

D Tertiary trading area

2) Pullsupply chain,

SECTION -B

Answer any two questions, Each carries 5 marks @xs=10)

2. Define retailing. Discuss the scope and prospects of retail sector in the Indian

context, describing the drivers of growth of retailing in the country.

3. What makes locational decisions in retailing strategic in nature ? Discuss with
suitable examples the factors necessary to consider before selecting a final site

for any store,

ero.

a]

34. 8430 - C16 - MISMBA - CBCS = D 10 2

42 À drug-store is considering opening a new location at shopping centre A, with
hopes of capturing sales from anew neighborhood under construction. Two nearby
shopping center B and C, will provide competition. Using the following information
and the Huff gravity model, determine the probability that residents of new
neighborhood will shop at shopping center A

Distance from new

Shopping center |Size ao |neghhorhond (miles)

A 2,500 3

B 1,100 4

€ 100 2
SECTION - C

5. Read the following case and answer the questions given below

Subhiksha in Chennai, Margin free in Kerala, Bombay Bazaar in Mumbai, RPG's
Giant in Hyderabad, and Big Bazaar in Kolkata, Hyderabad and Bangalore have
one thing in common — they all price their products below MRP. Discount stores
are slowly arriving in India and industry insiders fel they will spearhead a revolution
in organized retailing. On the list of top retailers in the world, quite a few are
discounters. Around 60% of the business abroad comes from this format. Incidentally,
the largest retailer in the world, Wal-Mart, is a discount store.

Margin Free was registered as a co-operative society in 1993 in Kerala and entered
the supermarket business in 1994, is run by the Consumer Protection and Guidance
Society, a charitable organization based in Thiruvananthapuram. Today, it has
‘emerged as India’s number one supermarket chain with 150 stores and a turnover
of Rs. 450 crores. Margin Free purchases directly from manufacturers at ex-factory
price and sells at lower prices than the MRP, as it eliminates the margin acerued in
the traditional manufacturer ~ stockist wholesalet~retailer network.

Margin Free takes extreme care while pricing the products through its entire stores.
thas employed software which evaluates the price by minimizing profits. Every
store is computerized and utilises the software to determine the pricing. This helps
in ensuring that the products are rationally priced

32

10

35. 3- 8430 - C16 - IIISMBA ~ CBCS - D - 10

Margin Free has found exceptional success in its scalable franchised model. It is
now looking to upgrade toa central warehouse concept which will help to manage
growth further. The success of Subhiksha and Margin Free indicate thatthe discount
‘war wll hot up in the coming months but it will be the customer who will emerge as
the final winner,

Margin Free also gets an average credit of 20-22 days from suppliers, which it ells,
on an average in 10 days, thereby even eaming a notional interest on its sales also.
Its strategy has made it flush with funds, which can finance further expansion

Margin Free uses its customer base as bargaining power to strike discount deals.
Any dealer who wants to set up a Margin Free store has to buy at least rupees one
lakh worth of share of the main Margin Free holding company. Margin Free has a
‘consumer base of 6 lakhs and it sells them consumer cards at Rs. 40 per year
Customers who buy using this card get discounts on bulk purchases and also on
‘government subsidized produces like Rs. 2 per kg rice.

‘The stores are now opting for a major expansion drive. A key part ofthis is the
introduction of private labelling, which isthe season's flavour inthe retailing industry.
For the purpose they have shortlisted 15 items all generic labels like rice, sugar
ete. = and will add to the list in future.

Hence, they will be ina better position to provide quality stuff at considerably low
prices within easy reach of an average middle-class family. For example, a packet
‘of tea which sells for an MRP of Rs. 120 at one of the corporate retailers, will be
available of Rs. 90 at the Margin Free stores,

‘The chain is now planning to open huge Margin Free hyper markets, the first such
hyper market, featuring an array of wares and spread over 50,000 square feet of
‘well-laid out space, is planned to open at Emakulam. The two other hyper markets
‘would be opened in Thiruvananthapuram and Kozhikode,

Ifthe success of retail activity is measured in the number of outlet, the existing
240-odd chain of franchisees must have already made Margin Free the largest ‘pure
retail chain’ (as distinct from retailers who are manufacturers) in the

‘even going by the number of footfalls, the Kerala-based retailer must have already
beaten competition by a handsome margin.

‘The hyper markets will feature almost all conceivable retailing products under one
roof-textiles, leather, cosmetics, provisions, electronic goods, consumer durables,
grains and grocery. As for ambience and class, they are most likely to resemble the
Giant etailing chain operating out of Hyderabed and other cities.

32

36. 8430 - C16 - IIISMBA ~ CBCS - D 10 +.

The hyper market would not dabble in imported items — Chinese or otherwise —
that are flooding the retail market right now. The cooperative society isin the process
‘of mobilizing resources for the hyper market initiative. It plans to rope in outside
investments over and above what the Consumer Protection and Guidance Society
hopes to rise on its own.

The society chose Emakulam first because it happens to be the most commercialized
city in the state. Also, the comparable purchasing capacities are higher there. The
nomenclature forthe hyper market has a Margin Free prefix to it, seeking to build
on the enormous trust that the discount chain has been able to build over a span of
cight years of existence.

‘The management feels that the Margin Free retail chain has been able to earn the
Wholesale trust of consumers in a very short span. However, in its journey to
success the Margin Free stores have made life slightly uncomfortable forentrenched
interests who have, on one hand, been fleecing consumers and onthe other, resorting
to indiscriminate under invoicing to avoid tax. The latter leads to loss of crores of
rupees in ealisable revenue forthe state government,

Every month, Margin Free is opening upto 12 stores and the number has grown to
241 at last count. The chain has spread to literally all parts of Kerala, It has seven
franchisees in neighbouring Tamil Nadu already and two in Karnataka. The overall
turnover has grown to Rs. 600 crore.

Questions :

2) What has been the role of pricing strategy inthe success of Margin Free Markets ?

b) What are the salient features of Margin Free Market pricing strategy ?

©) Analyse the external and internal factors that have made it possible to sustain the
present pricing strategy of Margin Free Market.

4) Discuss the limitations of the existing pricing strategy of Margin Free Market.
Suggest appropriate changes.

24

37. 8431 - C17 - TISMBA - CBCS - D - 10

THIRD SEMESTER M.B.A. (CBCS) DEGREE EXAMINATION, DECEMBER 2010
FINANCIAL DECISIONS

Time: 3 Hours] [Max. Marks: 50
Instructions: Answer all Sections. Marks are indicated against each Section.
SECTION —A
1. Answer any 10 of the following sub-questions. Each sub-question caries
one mark (10x1=10)
a) What is meant by the term ‘leverage’ ? What are its types?
b) What i the ‘indifference point’ and why i itso called ?
6) Define operating risk. How do you measure his?
4) What do you understand by optimum capital structure ?
©) Distinguish between explicit cost of debt and implicit cost of debt.
4) What do you understand by NOI approach of capital structure ?
2) What is an arbitrage process?
h) What is interest tax shield ? How ist valued ?
1) What is meant by financial distress ? What are its costs?
4) Whats the bird-in-the-hand argument of dividend?
1) What is meant by share split?
1) What are convertible securities ?

SECTION -B

‘Answer any 4 ofthe following questions. Each question carries Smarks: (4x5=20)

2. What is a share warrant ? What are its characteristic features ? Why are warrants
issued?

3. What is a stable dividend policy ? Why should it be followed ? What can be the
consequences of changing a stable dividend policy ?

4. Explain the position of MM on the issue of an optimum capital structure, ignoring
the corporate income taxes. Use an illustration to show how home-made leverage
by an individual investor can replicate the same risk and return as provided by the
levered firm,

5. Why must the finance manager keep in mind the degree of financial leverage in
evaluating various financing plans? When does financial leverage become favourable?

tro.

Bs

38. 8431 - C17 ~ MISMBA = CBCS~ D 10 2.

6. X company has a total capitalization of Rs. 10,00,000 and it normally earns
Rs. 1,00,000 (before interest and taxes). The financial manager of the firm wants to.
take a decision regarding the capital structure. After a study of the capital market,
‘he gathers the following data
Amount of Debt Interest Rate Equity Capitalization Rate %

Rs. % (at given level of debt)
o 10.00

1,00,000 40 10.50

2,00,000 40 11.00

3,00,000 45 11.60

4,00,000 50 1240

5,00,000 55 1350
6,00,000 60 16.00
7,00,000 80 20.00

What amount of debt should be employed by the firm if the traditional approach is
held valid ? Assume that corporate taxes do not exist, and that the firm always
‘maintains its capital structure at book values,

SECTION - C
Answer any 1 of the following questions. This carries 10 marks. (x10=10)

7. What is meantby the buyback of shares ? What are its effects ?Isit really beneficial
to the company and shareholders ?

8. Following is the EPS record of AB Lid. over the past 10 years

Year 1[o[s[7[6[5[4]3]2]1
eps ms) | 20] 19] 16] is] 16] 2] 6 | 9 [o] 1

i) Determine the annual dividend paid each year in the following cases

1) Ifthe firm’s dividend policy is based on a constant dividend payout ratio of
50 per cent forall years,

b) If the firm pays dividend at Rs. 8 per share, and increases it to Rs, 10 per
share when earings exceed Rs. 14 per share for the previous two consecutive
years

©) If the firm pays dividend at Rs. 7 per share each year except when EPS
‘exceeds Rs. 14 per share, when an extra dividend equal to 80 per cent of
‘eamings beyond Rs. 14 would be paid.

) Which type of dividend policy will you recommend to the com

36

and why?

39. + 8431- C17 - MSMBA - CBCS - D- 10

SECTION - D

9. Read the following case and answer the questions given at the end. This carries

10 marks

‘A growing company is confronted with a choice between 10 percent debt issue and
equity issue to finance ts new investments. Its pre-expansion income statement is

as follows

Sales.
Variable cost
Fixed cost
EBIT
Interest at 8%
EBT

Income tax
Net income
EPS

Rs.
45,00,000
30,00,000
5,00,000
10,00,000
1,00,000
9,00,000
3,15,000
5,85,000
17

‘The expansion programme is estimated to cost Rs. 5,00,000. If this is financed
through debt, the rate on new debt will be 10 per cent and the P/E ratio will be 10.
Ifthe expansion programme is financed through equity, new shares can be sold at
Rs. 100 per share and the P/E ratio willbe 12. The expansion will generate additional
sales of Rs. 12,00,000. No additional fixed costs would be needed to meet the
expansion operation. Ifthe company is to follow a policy of maximizing the market
value of its shares, which form of financing should be employed by it ? Show all

your workings,

37

10

40. 8433 - C19 - INISMBA - CBCS - D - 10

THIRD SEMESTER M.B.A. (CBCS) DEGREE EXAMINATION, DECEMBER 2010
INTERNATIONAL FINANCIAL MANAGEMENT
Time: 3 Hours] [Max. Marks : 50
Instruction : Answer all Sections. Marks are indicated against
each Section.
SECTION - A

1. Answer any 10 of the following sub-questions. Each sub-question carries
1 mark (10x1=10)

2) What do you understand by Intemational Monetary System ?
+) Define the balance of payments and differentiate with balance of trade.

€) What is meant by Covered Interest Arbitrage ?

©) What are Cross Rates?

©) Differentiate between currency futures and options in foreign exchange market

4) Distinguish between Spot Exchange Market and Forward Exchange Market

8) What is Random Walk Model for exchange rate forecasting ? Can it be
consistent with the technical analysis 7

h) Define GDRs.

i) Define Netting.

à) How would you define translation exposure ?

A) What do you understand by multinational capital budgeting ?

1) What are Eurobonds ?
SECTION - B
Answer any 4 of the following questions. Each question carries $ marks : | (4x5=20)

2. What do you know about foreign exchange market ? How the exchange rate
determined in a controlled market ? What are the factors responsible for exchange
rate fluctuation ?

Pro.

a
©

41. 8433 - C19 — HISMBA - CBCS-D-10 2.

3: a) Define Interest Rate Party Theory. Differentiate IRP Theory with PPP Theory.

b) The spot rate of $ is 150%. The inflation rate in Japan is 5%, while it is 10% in
U.S. What would be the $ rate in terms of Y two years hence ?

# The X Company has its receivables of £2.0 million due in 3 months. The rupee
has tendency to appreciate, The current rate is RS. 69.802/£. The company would
like to hedge in the options market. The data are as follows
Strike price is Rs, 68.50/£
Premium is 2%

Which type of option is involved ? How is this option to be used if (a) rupee
appreciates and seules at Rs. 67.20/£ and (b) rupee depreciate and settles at
Rs. 70.30/£ on the due date ?

5. Spot rate = Rs. 45.530015
6-month forward rate = Rs. 44.2100/$
Interest rte pa. in India = 10%
Interest rate pa. in U.S. = 7%
Given the above data, is there an Arbitration possibility ? How ? Show the process
with hypothetical amount.

6. You are given the following price indices data of four countries :

Period [Country A [Country B [Country © [Country D
January - Year 1 105 120 130 115
December -Year2 | 145 140 160 150
Exchange rate (January — Year 1):

1 unit of A = 3.2 units of B
Lunit of B= 3.0 units of C
L'unit of C = 3.6 units of D

Find the exchange rate among all pairs of currencies viz. A and B, Band C,
‘Cand D, and D and A at the December~ Year 2.

5,

42. 3. 8433 - C19 —TIISMBA ~ CBCS - D=10

SECTION - C
Answer any 1 of the following questions. This carries 10 marks (x10=10)

7. What do you understand by Economic Exposure ? Discuss all the internal and
financial hedging techniques to manage this exposure,

8. Airbus sold an aircraft, A400, to Delta Airlines, a U.S. company, and billed

$30 million payable in six months. Airbus is concerned with the euro proceeds
from international sales and would like to control exchat

ge risk.

The current

spot exchange rate is $1.05/e and six month forward exchange rate is $1.10/@
at the moment. Airbus can buy a six-month put option on U.S. dollars with a
strike price of €0.95/$ for a premium of 60.02 per U.S. dollar. Currently,
six-month interest rate is 2.5% in the euro zone and 3.0% in the U.S.

a) Compute the guarante

euro proceeds from the American sale if Airbus decides

to hedge using a forward contract.

b) If Airbus decides to hedge using money market instruments, what action does

Airbus need to take ? What would be the guaranteed euro proceeds from the

American sale in this case ?

©) If Airbus decides to hedge using put options on U.S. dollars, what would be
the ‘expected’ euro proceeds from the American sale ? Assume that Airbus
regards the current forward exchange rate as an unbiased predictor of the
future spot exchange rate.

d) At what future spot exchange rate do you think Airbus will be indifferent

between the option and money market hedge
SECTION - D

9. Read the following case and answer the questions given at the end. This section
carries 10 marks, 10

A UK. based MNC is planning to install a unit to produce 6,00,000 units
of Mobile Hands free sets in India. This will involve an investment outlay of

40

43. 8433 - C19 - IISMBA - CBCS-D-10 «

Rs. 60 million. The plant is expected to have a useful life of 5 years with Rs. 10
million salvage values, MNC will follow a straight line method of depreci
To support the operations, working capital of Rs. 10 million has to be invested.
Variable cost of production will be Rs. 30 per unit. Additional fixed cost per
annum is estimated at Rs. 4 million

‘The forecasted selling price is Rs. 100 per unit. The MNC will subject to 30%
tax rate in India and its required rate of return is 16% p.a. It is forecasted that the
rupee will depreciate against British Pound at 4% p.a, with an initial exchange
rate of Rs. 60/£. Accordingly the exchange rate for the relevant 5 year period of
the project will be as follows.

Year [Exchange Rate
0 [Rs 60
1 [Rs 62402
2 [Rs 64.8966
3 [Rs. 67.4926
4_[Rs. 70.1928
5 [rs ae

Advise the MNC regarding the financial viability ofthe proposal. Whether your
answer will change, if the rupee depreciate at 2% p.a. instead of 4% pa. in
relation to £ .

44. 8434 - C20 - IISMBA — CBCS - D- 10

‘THIRD SEMESTER M.B.A. (CBCS) DEGREE EXAMINATION,
DECEMBER 2010
FINANCIAL INSTITUTIONS AND MARKETS
“Time: 3 Hours] [Max. Marks: 50.
SECTION -A

1. Answer any ten subquestions. Each subquestion carries 1 mark
a) Differentiate between fixed deposit and certificate of deposit.
b) What is Insider Trading ?

(©) Explain the application of circuit breaker. How it is calculated ?
d) What is Private Sector Bank ?

e) What is the difference between cash credit account and current account ?
©) What treasury bill?
2) How are stock brokers regulated by the SEBI ?
h) What is a mutual fund and how does an open-ended mutual fund operate ?
) What is settlement and deadline ? Give example.
D What book building ? Give example.
K) What is meant by mark to market ? Give example.
D What is BOLT?
m) What is rematerialisation ? (10x1=10)

SECTION - B

Answer any four subquestions. Each subquestion carries 5 marks :

2. “Reserve Bank of India Acts as a promoter of the financial system” - Justify.
3. What is dematerialization ? Explain the process of dematerialization.

4. Explain the difference between factoring and bill discounting.

5. Discuss the performance of KSFC. Suggest ways to make it more competitive in
the present economy.

6. Explain the difference between market and off market trade. (4x5=20)

Aa (o

45. 8434 - C20 - INISMBA - CBCS - D - 10
SECTION - C

Answer any one subquestion. Each subquestion carries 10 marks +

7. What is securitization ? Explain the process of securitization.

8. Define credit rating. Explain the process of eredit rating. (1x10=10)

SECTION - D
Compulsory Question

9. What are the functions of register and shares t

nsfer agents ? What are their role
and responsibilities ? Howare they regulated by SEBI? 10

43

46. 8435 - C21 - IIISMBA - CBCS - D - 10

‘THIRD SEMESTER M.B.A. (CBCS) DEGREE EXAMINATION, DECEMBER 2010

DERIVATIVES MARKETS
Time: 3 Hours]
SECTION - A
1. Answer any 10, each caries 1 mark
2) Whatis Backwardation ?
b) What is Contango ?
e) What is Hedge ratio ?
4) Whatis marked to market margin?
e) What are zero coupon bonds ?

©) What is repo rate ?

8) What is reverse repo rate ?

#) What is Swap ?

à) What is interestrate derivative ?

à) Expand USE in India.

1) Expand CBOT.

D What is Bermuda option ?

SECTION -B

Answer any 4, each carries 5 marks,

2. Differentiate between forwards, futures and option contract.

[Max. Marks: 50

(10x1=10)

(4x5=20)

3. Incase of American options contract is ITM, ATM and OTM. Explain with decision

matrix

4. A trader is short the Swiss franc futures at $ 0.55, initial margin is $ 2000 and the
‘maintenance margin is $ 1500. The contract is for 1 00 000 Swiss francs. Settlement
price $ 0.56, $ 0.57, $ 0.60, $ 0.59 & $ 0.63. Calculate and show daily M2M and

PLLACC.

ay

(Pro.

47. 8435 - C21 - TIISMBA - CBCS — D = 10

5. With the given details calculate option payoff, Mr. Deepak longs call and put option
‘on M&M of strike 700 at Rs. 50 and at Rs. 35 respectively expiring on December
30%. Also show the maximum Loss/Gain he will incur.

6. Oil India is trading at 1600, one month futures is trading at 1630. Ifcost of capital
is 7% and lot size of 250. He seeks your advice for a possible arbitrage trade.
Assume final settlement price to be 1660/-. Show calculations in detail

SECTION - C
Answer any 1 out of 2 (x 10=10)

7. AGovernment securities dealer has a large amount of Treasury Bills in itventory.
Will he suffer a loss in wealth if T-bills prices rise or fall ? Will he suffer a loss in
‘wealth if short-term interest rates rise or fall ? If futures are used to manage risk,
should he be long hedge or short hedge ? If FRA is used, will he buy or sell them ?

8. An Indian company will receive millions of Francs from a customer next month.
Will the Indian company suffer a loss in wealth if Rupee price of Francs rises or
falls? Should the company be a long hedger ora short hedge if futures are used ?

SECTION - D
Case Study (Compulsory) 10

9. Imagine we want to price a cal on a stock XYZ, and that XYZ presently is at § 50
a share. Imagine further that we want to price the 30-Day 50-strike Call, and that
interest rates right now are around 4%. Imagine, as well, that XYZ stock pays no
dividends, and tha its historical volatility is approximately 16%. Calculate option
premium using B-S Model.

48. 8438 — C24 - ITISMB.

-CBCS-D-10
HIRD SEMESTER M.B.A. (CBCS) DEGREE EXAMINATION, DECEMBER 2010
MANAGEMENT
Security Analysis and Portfolio Management
Time: 3 Hours [Ma

Marks: 50
SECTION

1. Answer any ten questions. Each

(10%

a) Define interest risk

me the company which is expose

Forex risk.

en resistance and support level.

uish between primary trend and short term tre

) Define market breadth.

£) Distinguish between market rally and market correcting,

) Define Doji star.

h) What you suggest to a risk taker investor if beta of ICICI Bank is 1.5

) Define Window Dressing

i) Define Sharp Index

k) What

he basic principle s

sted by Warrant Buffet for investment ?

1) Define portfolio management.

ro,

49. 8438 - C24 - IIISMBA - CBCS - D - 10 2.

Answer any four questions. Each caries five marks :

SECTION - B

2. From the following data, calculate alpha of SBI

Date

11/2010
21/2010
312010
4/1/2010
5/1/2010
6/1/2010

Sensex

17500
17450
17475
17400
17395
17425

Stock
Price

2100
2250
2050
2190
2195
2200

Date

7/2010
8/1/2010
9/1/2010
10/1/2010
1112010,
12/1/2010

Sensex

17450
17500
17525
17550
17600
17950

Stock

2205
2200
2205
2210
2150
2100

(4x5=20)

3. From the following data calculate simple moving average price of Tata Steel.

Date

111/2009
2/1/2009
3/1/2009
4/1/2009
5/1/2009

Note : Moving Average Period : 6 days.

Stock
Price

425
435
415
420
430

Date

6/1/2009
711/2009
8/1/2009
91/2009
10/1/2009

Stock

Date

11/1/2009
12/1/2009
13/1/2009
14/1/2009
15/1/2009

Stock
Price

400
395
385
375
350

4. Critically examine the relevance of capital asset pricing model in the light of global
financial meltdown.

5. Explain various types of candlestick charts.

44

50. 3- $438 - C24 — IISMBA - CBCS -D — 10

6. Stock PQR and STU have give following retums during past two years.
Year Return %

PQR STU
2009 15 20
2010 22 7

2) What is the best expected return on portfolio made up 40% of PQR and
60% STU?

b) Find out standard deviation of each stock:

e) Whatis the covariance and coefficient of correlation between these two stocks ?

SECTION - C
‘Answer any one question which carries 10 marks (1x10=10)
7. Asa investment advisory now do you carry out Auto Industry analysis?

8. The closing prices of InFosys Ltd. are given below

Date StockPrice Date Stock Price
1012009 2010 71/2009 2020
ZUR 2015 8/1/2009 2040
3/1/2009 2045 9/1/2009 2045
410% 2020 101/2009 2030
san 2010 111/2009 202s
eno 2015 1212000 2015

Question for discussion :
a) Ifinvestoris planning to sell is holding on 6" Jan. 2009 what is your suggestion ?

b) Ifinvestoris planning to invest in 8" Jan. 2009, what is your suggestion ?
©) Does InFosys Ltd. has resistance or support level on 5 Jan. 2010 ?
4) What do you mean by divergence points ?

48

51. 8138 - C24 — MISMBA - CBCS-D-10 +

SECTION - D
Case Study
9. Read the case and answer the questions given at the end

‘The following table gives the key statistics for two of the Indian two wheelers
companies in 2010. On the basis of given data answer the questions given at the
end of the case

Bajaj Auto TVS Suzuki

Sales (Cr) 3493.1 10398
Net Profit (Cr) 3893 674
Equity (Rs. cr) 1194 Ba
Bk. value 1774 80.1
EPS 32.6 292
AE Ratio 171 168
RONW % 184 364
Dividend s0 50
1) What is suggestion to investor ? 10
49

52. 8441 - C27 - IIISMBA - CBCS - D - 10

‘THIRD SEMESTER M.B.A. (CBCS) DEGREE EXAMINATION, DECEMBER 2010
ORGANIZATION DEVELOPMENT AND INSTITUTION BUILDING

“Time: 3 Hours} [Max. Marks: 50

Instructions: i) Be precise and clear.
si) Quote examples 10 illustrate your answers.

SECTION = A

1. Write afew lines on the following: Bach carries one mark (10x1=10)
3) Organization
b) Organization development
) Organization culture
4) Organization renewal
©) OD consultant
Organization conflict
2) Organizational problem solving
h) Organizational teambuilding
) Organizational intervention
D Process intervention
k) Intra personal intervention
D. Intergroup intervention.
SECTION -B
Answer any four questions. Each question caries 5 marks: (x5=20)
2. Whatisthe relevance of organization development and institution building in today’s
organization”
3. Describe the process of organization development
4, Discuss the role of training and development in the OD efor.

5. Whatis institution building ? What are the stages in the life ofan institution ?
Po.

so

53. 8441 - C27 - MISMBA ~ CBCS =D - 10

6: What is action research and its role in organization development ?

7. Asked to conduct organization development exercise ina school where the existing,
culture needs to be changed for the better discuss how do you go about conducting
the same.

SECTION - C

Answer any one of the two questions. It carries 10 marks (110=10)

8. Trace the history of OD as a discipline and discuss how it has evolved as an
effective tool over a period of time.

9. Identify any one institution you know closely to discuss how the institution has

evolved over a period of time including its problems and successes.
SECTION - D

Go though the case and answer the question given at the end. This carries
10 marks:
Today's society is a society of organization. There are several organizations and
institutions which deliver goods and services to the society. Every organization
consists of individuals. If organizations and institutions should develop each
individual should develop. Discuss how tools and techniques of organization
development and institution building can be used to change the society to make the
world a better place to live.

S)

10

54. 8442 - C28 - INISMBA - CBCS - D - 10

‘THIRD SEMESTER M.B.A. (CBCS) DEGREE EXAMINATION, DECEMBER 2010
PERFORMANCE APPRAISAL AND COUNSELING

‘Time: 3 Hours] [Max. Marks : 50

SECTION - A

1. Define the following. Answer any 10. Each caries 1 mark :
a) Key performance areas
b) Final Assessment
©) Role clarity
4) BARS
©) Counseling
D Feedback
$) MBO
+h) Regency effect
à) Confidential report
D Affective dimension
¥) Balance score card
1) Poteñial appraisal

SECTION - B
Answer any four questions. Each carries 5 marks (4x5=20)

2. Explain the post appraisal interview problems between the superior and the
subordinate,

3. Explain the process of coaching and mentoring.
4, Self appraisal as a part of Performance Appraisal - Do you agree ?

Pro.

£2

55. 8442 - C28 -.

MBA-CBCS-D-10 2

5. Which are the various incentives and rewards systems ? Explain the importance
of rewards in enhancing the quality of work life and effectiveness in Indian
companies,

6. In what ways do you think contemporary thinking and flexible work schedules
reflect on employee performance ?

SECTION - €
Answer any one question. It carries 10 marks. axıı

7. Discuss various methods of appraisal practiced in corporate sector and Design
Performance Appraisal form.

8. Pick a industry of your choice (course project) give a detailed objective, process,
the common problems in performance appraisal, methodology and conclusion,

SECTION - D
9. Read the following case and answer the questions given below

Appraising Performance-All progressive companies have some formal or
informal appraising system for appraising the performance of their employees.

‘The aim is to motivate employ
better performance above par.

ees, improve their performance, and encourage a

‘Amber Pharmaceuticals’

Ina pharma company manufacturing marketing drugs and medicines. The research
staff has developed a number of new products and formulations that are effective
but at the same time it has to meet severe competition from Stalwarts with foreign
collaboration. Mr. Shah Vice President of Marketing has a very successful pharma
marketing background. He has been with the company for past four years
Mr. Shah had made an ambitious plan for capturing a sizable share of market in
Gujarat. The company been medium sized, Mr. Shah had kept his marketing
team and the department lean and trim. The field sales staffs were given aggre
targets and were virtually pushed to reach the respective targets. The field staff
worked to their best abilities to complete their targets. Mr. Shah had himself

10

56. = 8#42-C28-HISMBA-CBCS-D-10

been working hard for 11-12 hours a day. There is no formal appraisal or reward
system in the company. During last five years more than 60 medical representative
and the Area Supervisors had left the company due to unsatisfactory increments
and promotions. Those who left the company were star workers. But Mr. Shah
not care for this high tum over. He has over confident that he would be able
tohire fresher and also select candidate who are not happy with their remunerations
in their respective companies. Mr. Shah never communicated with his field officers
about their performances or reasons for not recognizing their outstanding
performance in afew cases.

Questions :
a) What do you per

the basic problem in “AMBER” ?

b) What are the steps you will take serially to correct the problem ?

©) In the event of your performance appraisal system —
1) How will you decide a suitable system of appraisal ?
ii) Will your system include merits, rewards and promotions ?

4) What type of training will be necessary before launching the appraisal system ?

57. 8443 - C29 - IISMBA - CBCS - D - 10

THIRD SEMESTER M.B.A. (CBCS) DEGREE EXAMINATION, DECEMBER 2010
LEGAL ENVIRONMENT AND INDUSTRIAL RELATIONS

Time: 3 Hours] [Max. Marks : 50

Instructions : a) There are, in all, four Sections ie. A, B, C and D.

D) Answer all the questions in the same answer book

©) Answer only the stipulated number of questions.

4) Follow the instructions given in each Section.

e) Answer must be precise and objective and in legible hand
writing.

A) Against gach answer, the question no. should be entered
correctly ar its commencement.

8) Answer for the same question or part of a question should
ot be split up and written up in different places ofthe answer

book.
SECTION —A
1. Answer any ten ofthe following (10x1=10)
3) What is the time-limitprescribed by Payment of Wages Act for payment of
wages?
+) What are the limits prescribed by Payment of Wages Act with regard to period
of wages and maximum deduction therefrom ?
©) What is meant by ‘Contracting Out’ and ‘Bar of Suit? under the Payment of
Wages Act?
©) What is meant by ‘Lay-of? under the ID Act ?

©) What is meant by *Set-ofP and ‘Set-on’ under the Payment of Bonus Act 2
D How do you distinguish between a ‘justified strike’ and an ‘unjustified strike ?
8)

In what situation, a ‘strike’ ora ‘lockout’ is justified in the eyes of law even in
the absence of notice prescribed by ID Actin the public utility services ?

h) What is meant by certification of standing order under the LE. (S.0) Act ?

Pro.

58. 8443 — C29 — TIISMBA = CBCS-D-10 2.

D. What is the object ofthe Contract Labour (Regulation and Abolition) Act?

i) What is the object and scope of the EPF and MP Act 1952 ?

K) What are the various parameters under the PB Act?

D What purpose is served by inclusion of concurrent list in the seventh schedule
to the constitution of India ?

SECTION = B

‘Answer any four of the following questions

2. Elaborate the functions and powers of Election Commission of India

3. Define retrenchment and detail the provisions of ID Act with particular reference to
displacement of surplus labour and transfer/losure of industrial undertakings,

4. Highlight the salient features ofthe Constitution of India

5. Whatare the various auth

rities under the ID Act? Describe their functions, powers,
duties, jurisdiction, role, rights ete

6. Elaborate the important provisions ofthe Payment of Gratuity Act, 1970.

Define the tem “Trade Union’ as per T.U: Act, and elaborate the provisions of the
TU. Act with regard to registration of Trade Unions and immunity of registered
Trade Unions from civil and criminal liability

SECTION -

8, Write short notes on any two of the following Gx3=6)
8) Preamble to the constitution of India,
b) Role of Conciliation Officer under the ID Act

©) Centre

tate administrative relations under the Constitution of India,

©) Suspension and subsistence allowance.

sE

59. 3 8443 - C29 - IIISMBA - CBCS - D—

SECTION - D, ex

9. Under the standing order of an industrial establishment to which the PG Act is
applicable, gratuity is payable to its employees atthe rate of one month’s terminal
basic pay for every completed year of service forthe first 15 years of service and at
the rate of halfa month's terminal basic pay for every completed year of service in
excess of the first 20 years of service subject to a maximum of 20 months terminal
salary (excluding HRA & CCA) in all. If the terminal salary of an employee who
Was in the continuous service of the said establishment from 1-10-1965 to
31-3-2006 was Rs. 20,000/ (BP Rs. 15,000/-+ DA Rs. 3,200/-+HRA Rs. 1,500/-
+CCARs. 300/-), Calculate the amount payable to him on account of his gratuity.

10. ‘A’ and ‘B’ are peons working in the same office ofthe same establishment. Since
{hey were on inimical terms, they were waiting for an opportunity to take revenge on
each other. A who was working in the accounts dept, went to the marketing
department where ‘B’ was working and dragged “B' out of the office to the public
road and assaulted him severely causing grievous hurt to “B”. The management
charge-sheeted “A' for indiscipline and misconduct as defined by its service rules.

'A submitted to the management his reply to the charge sheet stating there in that
the management had no right to proceed against him in relation to the said incident
for the following reasons.

2) That, since the incident took place outside the office premises, the management
has no right or authority to initiate disciplinary proceedings against him.

b) That the matter was subjudice, as he was being prosecuted by the police in the
Court of law in relation tothe same incident. &

©) That he had acted under extreme provocation as “B" has teased “A's Sister,
while on her way home from the college a week before.

4) That he was suffering from mental aberration in support and proof of which, he
Produced a medical certificate issued by his family doctor for having taken
treatment from him from a date subsequent to the episode.

Make a thorough study of the implications of the facts of the above said case
and give your considered views, observations and suggestions as to how the
‘management should proceed further in the matter.

10

4)

60. 8444 — C30 - IIISMBA - CBCS - D — 10

‘THIRD SEMESTER M.B.A. (CBCS) DEGREE EXAMINATION, DECEMBER 2010
STRATEGIC HUMAN RESOURCE MANAGEMENT

Time: 1.30 Hours} [Max. Marks: 25

SECTION - A

1. Answer any 5 questions. Each carries 1 mark.
a) What do you mean by best-fit approach ?
b) State different specific HR strategies. Give one example.
©) Define OD.

4d) What is the aim of knowledge management strategy ?

e) Define SHRM.

1), State the advantages of Harvard HRM model.

SECTION = B

Answer any 2 questions. Each carries 5 marks. (2x5=10)
2. Explain the limitation of the concept of strategic HRM.
3. Explain the different approaches to strategic HRM.
4. Explain the different strategies for culture management.

SECTION - C

5. Case Study : (2x5=10)

Siemens is a 150 year old German company; but its not the company it was even
a few years ago. Until recently, Siemens focused on producing electrical products
‘Today the firm has diversified into software, engineering and services, and is
also global, with over 400,000 employees working in 190 countries. In other
words, Siemens became a world leader by pursuing a corporate strategy that
emphasized diversifying into high-tech products and services, and doing so on
global basis.

Pro,

ce

61. 844 — C30 - IISMBA - CBCS = D - 10

With a corporate strategy like that, human resource management plays a big role
at Siemens. Sophisticated engineering and services require: more focus on
employee selection, training, and compensation than in the average firm, and
globalization requires delivering these services globally. Siemens sums up the
basic themes of its HR strategy in several points; These include :

1) A living company is a learning company. The high-tech nature of Siemens's
business means that employee must be able to leam on a continuing basis.
‘Siemens uses its system of combined classroom and hands-on apprenticeship
training around the world’ to help facilitate this. It also ‘offers employees
extensive continuing education and management development.

2) Global team work is the key to developing and using all the potential ofthe
firms human recourses. Because it is so important for employees throughout
the Siemens to feel free to work together and interact, employees have to
understand the whole process, not just bits and pieces. To support this, Siemens
provides extensive training and development. It also ensures that all employees
{eel they're part of a strong, unifying corporate identity. For example, HR
uses cross-border, cross-cultural experiences as prerequisites for career advances.

3) A climate of mutual respect isthe basis of all relationships-within the company
and society. Siemens contends that the wealth of nationalities, cultures,
languages and outlooks represented by its employees is one of its most valuable
assets. It therefore engages in numerous HR activities aimed at building
‘openness, transparency, and faimess, and supporting diversity.

Questions :

a) Based on the information in this case, provide examples, for Siemens, of at
least four strategically required organizational outcomes, and four required
workforce competencies and behaviors.

b) Identify strategically relevant HR system policies and activities that Siemens
‘has instituted in order to help human resources management contribute to
achieving Siemens’s strategic goals.

$)

62. 8448 - C34 - IISMBA - CBCS- D - 10

‘THIRD SEMESTER M.B.A. (CBCS) DEGREE EXAMINATION, DECEMBER 2010
HUMAN RESOURCE DEVELOPMENT

Time: 3 Hours} [Max. Marks : 50
Instructions + Ansiiers should be clear and precis
wherever required.
SECTION - A
1. Explain the following concepts in one or two sentences (10x1=10)
3) Mentoring
b) Transaction analysis
e) Emotional Quotient
4) Performance Appraisal

» Quote examples

©) Performance counseling,

1) Job analysis

8) Balanced scorecard

h) Redeployment

i) Potential losses

3) Diversity training.

SECTION ~ B

Answer any four of the following each question carries 5 marks (4x5=20)
2: What is. HRD ? Explain the Techniques of HRD:

3. Explain different methods of training the employees. Suggest a suitable traning
method for salesman of a heavy Machine Manufacturing Organisation.

4. What is Training Evaluation ? How do yow identify the training needs of an
enterprise?
5. Explain the essentials of good appraisal system. Also explains the problems
incurred while conducting a Performance Appraisal,
6. Explain:
a) Critical incident method,
b) Check list method.
Pro.

60

63. 8448 - C34 - IISMBA - CBCS- D - 10

SECTION - C

Answer any one question from the below. (Ax10=10)

7. What are objectives and benefits of human resource planning ?

8. What is stress management ? How to reduce, prevent and cope with stress ?

9. Compulsory case

South Indian Bank

South Indian Bank was instituted in 1980. Most of the employees joined as
Clerks with M.Com. qualification in 1980 and in 2005 become the branch managers
and regional managers by 1990. Thus, most of the managers of the bank are
cither matriculates or graduates. These managers have been performing various
functions including marketing functions of the bank like purchasing of deposits
and selling of advances. Top management of bank decided to employ candidates
with MBA (Marketing) qualification as Marketing Executives in 2006. The
managers of the bank protested against the management's decisions saying that
they could perform, with their long experience, the marketing functions more
efficiently than MBAs. But the top management ignored the opposition of the
‘managers and employed MBA (Marketing) candidates as Marketing Executives.
MBAs joined the bank in 2006 and assumed the responsibilities of purchasing of
deposit, selling advances and recovery of advances.
‚The performance of the bank was poor during 2006 and 2007 especially in areas
like deposit mobilization (by 30%), sanction of advances (by 20%) and recovery
of advances (by 40%). The personnel departments, besides other departments of
the bank, were asked to find out the reasons for the declining performance. The
newly employed Marketing Executives felt that the old managers would not
accept new ideas proposed by them, whereas the old managers opined that the
Marketing Executives thought very high of themselves and did not allow
themselves to share others experience and ideas, Both felt that there were no
special interactions between the two groups
Questions +
à) Do you think that the performance of the Marketing Executives has fallen ?
b) What is the problem in this case ?
e) What do you recommend to solve the problem ?

6)

10

64. 8457 - MISMBA - CBCS - OE - D - 10
THIRD SEMESTER M.B.A. (CBCS) DEGREE EXAMINATION, DECEMBER 2010
INTRODUCTION TO ENTREPRENEURSHIP DEVELOPMENT
(Code : COE) (Open E

tive)
Time: 3 Hours} [Max. Marks: 75

SECTION - A (10x2=20)
Answer any 10 questions

ne Entrepreneur,

2. State any 2 barriers to et

preneurship.
3. Define creative destructio

4. Whatis meant by innovation?
5. Whatis meantby differentiation ?
6. Whatis meant by strategy ?

7. Whatis an elevator pitch ?
8. Write any 4 characteristics of elevator pitch

9. Expand SCORE

0. Write the die

1, Expand 3K’s in the context of women e

trepreneurship.

SECTION - B

Answer any 5 questions

2. What are the push and pull factors for women to take up employment ?
13. Write in brief the different stages of Team Growth.

14. Explain any 4 approaches of smart pricin,

5. Explain the different ways of product differentiation.

16. Explain the techniques of generatin

17. Explain the different types of entrepreneurship.

65. 8457 - IISMBA - CBCS - OF =D - 10 2

SECTION -C (10210)
Answer any one question
18. Explain Monitor ten type of innovation framework model. With example.

19. Kidwearis manufacturing kids clothes/garments and is situated in Gwalior. twas
started in 1980 with rupees 50,000. Today it has become a medium sized unit
employing, totally eighty workers and fifteen salesman inthe sales department,
headed by sales manager who directly reports to the owner. The annual tumover
has crossed Rs. 75 lakhs. The company is planning to start another plant in
Indore. Mr. Raj the sales manager forthe first time toured Indore area and met the
customers, present and prospective. His objective was to find the response,
which was lukewarm, because most ofthe customers present, said they were not
very happy with the salesman’s approach and attitude. They said that, their
requests were not paid attention and some were even rude, and this was the first
time they could talk to Mr. Raj. Hearing this Mr. Raj called for a meeting of
salesman, when he reached Gwalior. On enquiring about the feedback from.
customers, all of them were silent. One of the youngest salesman, Shri Satish who
had been performing very well responded “We do our Job-that’s all

Questions.
1) What is the problem with the Salesman 2
2) Do you think that Mr. Raj was being an effective sales manager ?

3) What does the response of Mr. Satish indicate ?
4) Suggest ways of evolving better sales force.

SECTION - D 20

20. Case Study
RED CLAW CRAYFISH

In her first year, Bee Leng was exploring her options in the workforce with a diploma
in Biotechnology. The job opportunities in her specialization, biotechnology, were
‘R004 if she wanted to be a technician but she did not wish to be merely technician,
In her final year, she participated in a national entrepreneurship competition in a
team representing her polytechnic, The team worked on the commercialization of a
research project her lecturers were engaged in-breeding crayfish from Australia in
tropical climates. This project finally won the competition. It spurred Bee Leng to
pursue further studies in Biotechnology. After three year’s work, she saves enough
for a degree in biotechnology at the University of Belfast and proceeded on a
scholarship to Cambridge University for her Ph.D.

63

66. 3- 8457 - MISMBA = CBCS = OE - D - 10

‘The Business Idea +

When Bee Leng received her doctorate she followed her husband, Nang, an architect,
to Bangkok. In Bangkok, she set up a small lab in her residence, where she conducted
experiments in crustacean embryology. One project involved inserting a growth-
regulating gene into the chromosomes of freshwater crayfish. To her surprise, she
was able to develop a strain of crayfish several times larger than normal.

Instead of publishing her findings ina scientific journal, she thought about how to,
make them of direct value to the general public. It occurred to her that crayfish
could be farmed and then sold as a culinary delicacy. Nang suggested that she
discuss the idea with Nattaphan, a good friend who had recently completed his
MBA and was currently working for an oil company,

The Advice

Soon after, the three of them met in the dining lounge of the Novotel to explore
Possibilities. Before they ordered lunch. Bee Leng broached the topic of growing.
crayfish commercially. Nattaphan told her, “Many people start up their own business
with her hobbies, but a hobby is not a business. It can only be a business if you
handle it likea business, "Marketability ofthe product and financial considerations,
he said, were two important areas that had to be assessed seriously. Many people
had great ideas and good products and yet were unable to succeed. Some of them
failed even before they started. "You must find out who buys crayfish, why they
buy them, where they buy them, how much they buy, and at what price they pay.”

“What is the best way to get hat information 2” Bee Leng asked.

“One way would be to select a sample of restaurants and find out from them

‚whether crayfish is or could be an added feature on their menus. Finding out whether
crayfish can have a share of market will not be easy”

He continued, “Keep in mind that crayfish is nota popular dish in Thailand. People
like changes, but they are also conservative in their behavior, particularly when it
comes to food. You have to educate them. First you've got to let them know that
‘crayfish is good. Then you have to convince them to buy crayfish. This will take a
Jot of money; money that will be not for your crayfish farming but for marketing,
including advertising, promotion, packaging, and selling. You'll have to consider
whether to sell to restaurateurs, the general public, or wholesalers, and also the
form in which you will sell them - live, frozen, or cooked. By the way, how much
did you plan on spending

64

67. 8457 - IISMBA - CBCS - OF =D -10 +

*I haven't given it much thought,” said Bee Leng, “but we might be able to arrange
USS 80,000 to $ 1,00,000 ourselves. How much money do you think we should
have to start up the farm and the business ?” she asked.

“Frankly, Ihave no idea,” he replied, “but you have to make sure that the business.
is financially feasible. Even with your own money, you have to consider opportunity
cost. For example, if your money is now invested in bonds, the interest loss on the
investment must be considered. One of the worst things about a business of this
nature is that it takes a long time to get any return. Most people these days go for
short-term gains and just do not invest in eligible businesses. Since you plan to put
up $1,00,000 yourself, the bank will probably give you some credit. Orit might be
easier for you to get assistance under a government programme. But the real issue
is still whether or not farming and selling crayfish isa viable business”.
“Incidentally,” Nattaphan continued, “you haven't mentioned the farming aspect of
the venture. Suppose the government asks if there would be any harmful effects on
other fish species ? What would happen if your crayfish crawled away from your
farm and got into natural fresh water lakes or streams ? What about the argument
that you would have, in effect, altered the ecology ? You are not really sure you will
get through all this. One more thing, what about the possible health hazard of eating
“mutant” crayfish ?” Nattaphan came down on Bee Leng really hard.
Nang seemed to have lost interest in carrying the conversation any further. He said,
“Well, it seems to me that the more we talk about it, the more I feel we shouldn't
start this business, Anyway, I'm hungry, so lets order lunch.”
‘After the meeting with Nattaphan, Nang, and Bee Leng reassessed the whole
situation, Bee Leng was still really interested, and she eventually convinced Nang
that they should give the idea a go. However, they did not know how to set the
wheels in motion.
Required :
1) Assess Nattaphan's attitude. What is your opinion of his remarks and
recommendations ?
2) Some people might find the idea of eating crayfish unthinkable. Suppose you
are asked to gather market information on the possibility. How would you do
so, and how would you interpret the results of your findings ?

3) Evaluate Bee Leng’s idea as a business concept or venture opportunity
4) Assess the resources required to undertake this venture.

65