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(DEMB 1)

EXECUTIVE M.B.A. DEGREE EXAMINATION, DECEMBER 2010.

First and Second Year

Paper I — PERSPECTIVES OF MANAGEMENT

Time : Three hours Maximum : 75 marks

PART A — (3 5 = 15 marks)

Answer any THREE questions.

1. (a) Management as a profession.

(b) Contributions of Taylor.

(c) Proactive planning.

(d) Line function.

(e) Role playing.

(f) Empowerment.

PART B — (3 15 = 45 marks)


2. Explain the concept of management and bring out its importance in present day context.

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3. Discuss the concept of corporate planning. How does strategic planning differ from operational planning?

4. ‘‘Decision making is the primary task of the management’’. Discuss this statement and explain the process of decision making.

5. What do you mean by subsystems? Discuss the important subsystems of an organisation.

6. How will you define leadership as a process of influence? What are its various features?

7. What are the essentials of effective control systems? How will you design an effective control system?

PART C — (15 marks)

Compulsory

8. Case study :

Super Engineering Company was a multilocational light engineering company. It had manufacturing facilities at Hyderabad, Pondicherry and Indore, The company adopted budgetary system with main emphasis on production and expense budgets. The budget

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targets used to be set on the basis of analysis of production facilities and production operations. While two units located at Hyderabad and Pondicherry were working properly and were able to meet their budget targets, Indore unit was not bie to do so.

Mr. P. Manohar was transferred to Indore unit as plant manager. He joined the company about eight years back as engineer trainee and became the assistant plant manager at Hyderabad unit, the biggest of the three units. Manohar was very ambitious and a little bit autocratic. He believed in the exercise of authority and control to carry out his instructions. He was high achiever and believed in getting things done. He got quick promotions in the company.

Immediately after joining at Indore unit as plant manager, Manohar made preliminary study of the plant and issued instructions to all departments to increase production by ten per cent. He also instructed all supervisors to strictly adhere to budgets. He introduced several new reports and watched the operations very closely. He suspended two supervisors in the second month for not meeting the budget targets. Subsequently two supervisors left the plant.

With all his efforts, the unit was very much on the right track and within six months exceeded the new budgeted figures by eight per cent. On setting

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the plant right, lie was called back at Hyderabad unit as plant manager where vacancy arose. However, shortly after he left for Hyderabad, the productivity at lndore unit fell below the earlier level and the budget was again in trouble.

Questions :

(a) Analyse the type of organisational climate created by Manohar at Indore unit.

(b) Why was there a drop in productivity at the unit after Manohar left it?

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(DEMB 2) EXECUTIVE M.B.A. DEGREE EXAMINATION,

DECEMBER 2010.

First and Second Years

Paper II –– BUSINESS ENVIRONMENT


SECTION A – (3 5 = 15 marks)

Write any THREE of the following.

1. (a) Socio-cultural environment

(b) Tiny industry

(c) Industrial policy

(d) External debt

(e) Liberalisation

(f) Foreign Trade

SECTION B – (3 15 = 45 marks)

Answer any THREE of the following.

2. Outline the anatomy of Indian economy with reference to agricultural, industrial and service sectors.

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3. Discuss the process of strategic sales method of privatisation.

4. What are the salient features of new industrial policy 1991?

5. Discuss and debate the issues and impediments to growth of India's foreign trade.

6. Discuss the impact of globalisation on telecom and financial sector.

7. Discuss about the advantages and disadvantages of capital account convertibility.

SECTION C – (15 marks)

(Compulsory)

8. Case study:

Reliance is one of the pioneers in the country in implementing the best international practices of corporate governance.

The board of directors at reliance periodically reviews its composition for ensuring a strong element of independence and commitment. The directors are elected by the shareholders. However the board plays an important role in the selection of candidates for shareholders approval.

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Roles and Responsibilities of Board and Management

The board's roles and responsibilities include establishing an effective mechanism for overseeing the affairs, keeping in view the company's size, complexity, geographical operations and corporate tradition and culture. The Reliance's framework is designed to:

(a) Enable the board to provide strategic guidance for the management.

(b) Define the respective roles and responsibilities of senior executives to ensure accountability and

(c) Ensure a balance of authority such that no single individual has unfettered powers. To ensure the truthful and factual presentation of it's financial position, the company has put in place a strong internal audit process. The board has also constituted an audit committee, which is responsible to the external reporting, performance and objectivity of the internal audit function and independence of the external auditors.

To ensure long-term shareholder value creation and to promote shareholder participation in corporate affairs, reliance has established and maintained communication strategies, including a policy for clarity in notices of meetings. Reliance also maintains

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its corporate website for convenient access by the shareholders to all the information about the company.

The company has adopted a remuneration policy that attracts and maintains talented and motivated executives so as to encourage enhanced performance of the company. The remuneration policy envisages a clear relationship between performance and remuneration, including the link between remuneration paid and the overall corporate performance.

Question:

Discuss the link between board of directors and corporate governance practice in Reliance.

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EXECUTIVE M.B.A. DEGREE EXAMINATION, DECEMBER 2010


Paper III — MANAGERIAL ECONOMICS


SECTION A — (3 5 = 15 marks)


1. (a) Opportunity cost

(b) Demand schedule

(c) Production function

(d) Price leadership

(e) Behavioural theory

(f) Net Present Value.

SECTION B — (3 15 = 45 marks)


2. Discuss the nature and significance of managerial economics.

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3. What are the advantages of Price elasticity of demand in decision making?

4. Describe the relationship between output and cost in the longrun.

5. Enumerate pricing strategies followed by a small company.

6. Explain the conceptual conflict in the measurement of Profit.

7. Elucidate the different techniques of evaluating investment proposals.

SECTION C — (15 marks)

Compulsory

8. X Ltd., an FMCG company, has been spending huge amounts on advertisements. It has collected the following data on advertisement expenditure and demand for its product for the last 5 years :

Year 2004 2005 2006 2007 2008

Advt. Expenditure Rs. Crores

10 15 20 25 30

Demand (Qty.) in Lakhs of units

100 112 115 120 122

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(a) Estimate the demand for the years 2009 and 2010 when the advertisement expenditure is expected to be Rs. 32 and Rs. 35 crores respectively.

(b) What is your opinion about the estimation you have made?

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Paper IV — ACCOUNTING FOR MANAGERS


SECTION A — (3 × 5 = 15 marks)

1. Answer any THREE of the following.

(a) Accounting Cycle.

(b) Concept of flow of fund.

(c) Forfeiture of Shares.

(d) Segment Reporting.

(e) Absorption Costing.

(f) Yield Variance.

SECTION B — (3 × 15 = 45 marks)


2. State the uses of accounting information.

3. What are the uses of funds flow analysis?

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4. Explain different techniques of paying dividend.

5. Discuss the demerits of different methods of

inflation accounting.

6. Enumerate the practical application of CUP

analysis.

7. XYZ Co., Ltd., Meerut has developed a new

product of which 10,000 units are to be produced

each year. Details of costs are as follows :

Machine Hand labour

Rs. Rs.

Purchase price of machine 20,000 –

Direct material per annum 5,000 5,000

Direct labour per annum 5,000 3,000

Variable overhead cost per annum 20,000 10,000

Fixed overhead cost per annum

(excluding depreciation)

1,500 1,000

The selling price of the product has been fixed at

Rs. 3 each. If the machine is purchased it will have

an estimated life of 10 years. You are required to

show marginal costs and contribution.

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(Compulsory)

8. The following is the trial balance as June 30, 2004 of Beta Ltd. You are required to prepare the final accounts.

Rs.

Stock on 30, June 2003 7,500

Sales 35,000

Purchases 24,500

Productive wages 5,000

Discount (Dr.) 700

Discount (Cr.) 500

Salaries 750

Rent 495

General Exp. 1,705

P and L A/c (Cr.) 1,503

Dividend paid Aug., 2003 500

Interim dividend paid Feb. 04 400

Capital

(10,000 shares of Re. 1 each) 10,000

Debtors 3,750

Creditors 1,750

Plant 2,900

Cash in hand 1,620

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Rs.

Reserve 1,550

Loan to Manager 325

Bad debts 158

Additional information :

(a) Stock on 30.6.2004, Rs. 8,200

(b) Depreciation on plant 10% p.a.

(c) Reserve for discount on debtors.

(d) Provide 15% commission for manager.

(e) Allow 2 21 % discount on creditors.

(f) Rent out standing Rs. 45

(g) Insurance included in general expenses was 75 per annum.

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Paper V — QUANTITATIVE TECHNIQUES FOR MANAGERIAL DECISIONS




1. (a) Cramer’s rule

(b) Median

(c) Baye’s theorem

(d) Sampling errors

(e) Cyclical variation

(f) Primary data.


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Answer any THREE of the following .

2. State the merits and demerits of measures of

central tendency.

3. Discuss the formulation and testing the validity of hypothesis.

4. Explain the applications of probability in decision making.

5. If

131302431

A , ,214223112

B

151123511

C

Calculate

(a) CA 32

(b) CBA

(c) CBA 22 .

6. Ten competitors in a beauty contest are ranked by three judges in the following order

Competitor First Judge Second Judge Third Judge A 1 3 6 B 6 5 4 C 5 8 9 D 10 4 8 E 3 7 1 F 2 10 2 G 4 2 3

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Competitor First Judge Second Judge Third Judge H 9 1 10 I 7 6 5 J 8 9 7

(a) Use rank correlation coefficient to discuss

which pair of judges have the nearest

approach to common tastes in beauty?

(b) What does the obtained value of indicate?

(c) If instead of calculating values of rank

correlation, you calculate values of Karl

Pearson’s coefficient of correlation between

ranks, would your results be the same or

different?

7. Calculate the regression equations X on Y and

Y on X from the following data :

X 8 7 10 9 6

Y 15 18 17 21 14

Calculate,

(a) The value of Y for a given value of X as 21

(b) The value of X when the value of Y is 30.


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Case study

Compulsory

8. Out of the total nuts manufactured by a company 0.5 percent became defective. The nuts are supplied in packets of 40. Find out the probability number of packets containing

(a) No defective

(b) One defective

(c) Two defectives

(d) Three defectives

(e) Less than four defectives and

(f) More than four defective nuts respectively in a consignment of 50,000 packets. Assume Poisson distribution.

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Paper VI — INFORMATION MANAGEMENT AND COMPUTER APPLICATIONS




1. (a) Personal computer.

(b) Computer based inventory system.

(c) Computer viruses.

(d) Control system.

(e) COBOL.

(f) Computers for generation of revenue

function.

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2. Examine the role of computers in management.

3. How do you use computers in HRM?

4. What are the legal dimensions of computers?

5. Examine the development life cycle of a system.

6. Explain the social implications of computers.

7. Discuss different types of computer programming languages.


Case Study: Compulsory.

8. An important travelers besiege an airport ticket counter in a Southern China boom team, a haried clerk scribbles seat adjustments on bounding passes and jots down passenger’s names on a sheet of paper. On good days, he gets help with such chores from a mainframe computer in Beijing that runs China’s reservation system. China is planning to invest between $ 150 billion and $ 200 billion in both infrastructure and information systems and is seeking the help of Western Companies to achieve this goal.

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A Western Company, which set up shop in China in 1990 is playing an active role in helping the Chinese Government. Help the company in the analysis and design of an information system that helps process pay roll, administrative functions and decision making.

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Paper VII — FINANCIAL MANAGEMENT




1. (a) Profit maximisation.

(b) Financial intermediaries.

(c) IRR.

(d) EBIT.

(e) Net income approach.

(f) Cost of equity.



2. Critically examine Walter’s model on dividends.

3. Discuss the conflict of liquidity and profitability in working capital management.

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4. Explain different approaches for valuation of bonds.

5. Describe the techniques employed for the management of inventory.

6. How do you organise finance function for a manufacturing concern.

7. The earnings per share of a company are Rs. 8 and the rate of capitalisation applicable to the company is 10%. The company has before it an option of adopting a payment ratio of 25% or 50% or 75%. Using Walter’s formula of dividend payout, compute the market value of the company’s share if the productivity of retained earnings is

(a) 15%

(b) 10% and

(c) 5%.


Compulsory.

8. Shree Prakash & Co. has been using a machine costing Rs. 15,000 for the past 5 years. The machine has 15 years of life and it has been depreciated @ 10% per annum. The current salvage value would be Rs. 2,000 and the company has been paying 50% of its profits as taxes (i.e., it is subjected to 50% flat tax rate)

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Now the management desires to replace it by new machine costing Rs. 10,000 with salvage value of Rs. 2,000. The new machine has a life of 10 years and will be depreciated @ 10% per annum. The cost of capital is 10% and the expected saving is likely to be Rs. 3,000 per annum.

(a) Should the company go for a new machine?

(b) What would be your advice if expected saving increases by 50% per annum but expected life decreases by 5 years?

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Paper VIII — OPERATIONS MANAGEMENT




1. (a) Conveyor belt.

(b) Capacity planning.

(c) Maintenance management.

(d) Value engineering.

(e) Lead Bank.

(f) Standard material.



2. Describe the nature and significance of Quality assurance.

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3. Discuss the stages involved in batch production.

4. What are the factors that influence facilities locations?

5. What are the functions of operations management?

6. Explain the codification and classification of materials.

7. Discuss the techniques emplored to control mass production.


Compulsory

8. Case Study :

A firm’s annual requirement of inventory is 30,000 units. The acquisition cost amount to Rs. 150 per order. The carrying costs are likely to be Rs. 1.20 per unit per year.

Assume the following order sizes :

(a) 30,000 units

(b) 15,000 units

(c) 6,000 units

(d) 3,000 units

(e) 1,500 units

(f) 750 units.

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Determine :

(i) order cost

(ii) carrying cost

(iii) average inventory

(iv) economic order quantity.

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Paper IX — MARKETING MANAGEMENT




1. (a) Marketing ethics

(b) Marketing organization.

(c) Market leader.

(d) Sheth model of consumer behaviour.

(e) Product modification.

(f) Geographic pricing.



2. Elucidate the conflicts in channel decisions.

3. How do you assess the effectiveness of advertising?

4. Enumerate the steps involved in marketing research.

5. Describe the nature and significance of idea marketing.

6. Explain the influence of technology on marketing plan.

7. Bring out the stages in the life cycle of a product.


(Compulsory)

8. Case study :

Coca-Cola is the most ubiquitous brand in history. Each day, people in 200 countries around the world drink some 1.2 billion 8-ounce servings of the cola

Marketing for the twenty-first century means leveraging the longtime marketing principles that work, while inventing new ways to stay relevant. Coca-Cola, which got its start in 1883, has successfully kept its brand relevant for over 100 years. Revenues in 2003 topped $21 billion.

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Coke’s first President, Asa Candler, instituted many of the marketing tactics that are

entrenched principles now. To gain new customers, he printed coupons offering free first

tastes of the Coca-Cola drink. To build brand recognition, he gave clocks, calendars and

weighing scales with the Coca-Cola logo to pharmacists who sold the drink. He hired the

company’s first celebrity, music hall performer Hilda Clark, in the 1890s.

During the heyday of mass-market TV advertising, Coke was the master of the 30-second TV

spot. Its legendary “I’d like to buy the world a Coke” and “Mean Joe Greene” ads were rated

as two of the best ads ever by Advertising Age.

Coca-Cola also expanded overseas. During World War II, when the army shipped Cokes to

soldiers in Europe and Asia, Coke cemented its image as the “All-American beverage’, But

over time, Coke realized it would need a more local feel in each country, So although it uses

its signature red-and-white wave and lettering worldwide, the company uses different and

agencies in different countries in order to make the brand feel local. For example, the local

versions of the “Mean Joe Greene” and used sports figures famous in those regions, such as

soccer starts. Similarly, ads for Coca-Cola in Spain show it as a mixer with wine, reflecting

how consumers use the product in that country.

Coke also sells a wide range of different-flavoured sodas in different countries. Visitors to the

company’s museum in Atlanta can try these beverages – everything from cool watermelon

(China), to an intensely bitter herbal soda (Italy), to a zingy ginger soda (South Africa). In

2004, Coke launched a beer flavoured carbonated beverage in Japan

Coca-Cola now gets two-thirds of its revenues from outside the United States. Its’ easier to

name the countries where Coke is not : Myanmar, Cuba and Syria. Everywhere else –

including such tricky markets as Pakistan, Cambodia, Liberia, Zimbabwe and

Colombia - Coke is a beloved consumer staple. In fact, the brand is so strong and so

entrenched that even the anti-American sentiments of 9/11 and after have not hurt sales.

Coca-Cola’s brand valuation actually increased from $68.95 billion in August 2001 to $70.45

billion in August 2003. (By comparison, rival Pepsi-Cola’s brand value is a mere $11.78

billion). Coca-Cola remains the top global brand, achieving the top ranking in Business

Week’s Global Brand Scorecard once again in 2003.

Despite its powerhouse status, Coke must continue to evolve its marketing. For example, the

effectiveness of TV ads is declining due to media fragmentation and use of devices like TiVO

that let viewers zap commercials. Ads that reached 70 percent of Americans during prime

time in the 1960s only reached 15 percent in 2004. So Coke is diverting money previously

spent on TV toward more experiential activities. For example, it’s testing Coke Red Lounge

gathering areas for teens in malls. The lounges offer exclusive music videos and video games

and sell Coke drinks from a see-through Coke machine. In Britain, Coke’s mycokemusic.com

Web site lets surfers legally download over 250.000 songs.

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Chris Lowe, a Coke marketing executive, explained how the company stays on top “You can

never betray the core values of the brand, but you can work to make those values fresh and

relevant. If you can’t speak to people in these times, then you become an old icon”. Lowe

described the iterative steps of generating a fresh and campaign: ‘There’s the communication

strategy that you want to put across. You test it with consumers for validity and resonance.

Then you take that core meaning and make it come alive with advertising. Then you take it

back to consumers to test it again”.

The results of Coke’s latest marketing shift aren’t known yet, but in 2003 its then Chairman,

Douglas Daft, told investors that Coca-Cola Company has “arguably the strongest and most

pervasive marketing and distribution system in the world”. And with Coke being the first

soda drunk in outer space, even the sky may not be the limit.

Questions :

(a) What have been the key success factors for Coca-Cola?

(b) Where is Coca-Cola vulnerable? What should they watch for?

(c) What recommendations would you make to their senior marketing executives going

forward? What should they be sure to do with their marketing?

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Paper X — HUMAN RESOURCE MANAGEMENT




1. (a) Job description.

(b) Application blank.

(c) Management Inventory.

(d) Absenteeism.

(e) Sensitivity training.

(f) Grape vine.



2. How do you organise HR department in an organisation?

3. Enumerate the techniques of forecasting demand for employees.

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4. Bring out the recruitment practices of software companies in India.

5. Bring out the limitations of different techniques of performance appraisal.

6. Explain management development programmes followed by Indian Industry.

7. How do you measure job satisfaction of different categories of personnel in a concern?


Compulsory.

8. Uptron Electronics Ltd. is a pioneering and internationally reputed firm in the Electronics industry. It is one of the largest firms in the country. It attracted employees from internationally reputed institutes and industries by offering high salaries, perks etc. It had advertised for the position of an Electronics Engineer recently. Nearly 150 candidates working in various electronics firms applied for the job. Mr. Sashidhar, an Electronics Engineering Graduate from Indian Institute of Technology with 5 years working experience in a small electronics firm was selected from among the 130 candidates who took the tests and interview. The interview board recommended an enhancement in his salary by Rs. 500 more than his present salary at his request. Mr. Sashidhar was very happy to achieve

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this and he was congratulated by a number of people including his previous employer for his brilliant interview performance and good luck.

Mr. Sashidhar joined Uptron Electronics Ltd. on 21st January, 1996 with great enthusiasm. He also found his job to be quite comfortable and a challenging one and he felt it was highly prestigious to work with this company during the formative years of his career. He found his superiors as well as subordinates to be friendly and co-operative. But this climate did not live long. After one year of his service, he slowly learnt about a number of unpleasant stories about the company, management the superior – subordinate relations, rate of employee turnover, especially at higher level. But he decided to stay on as he promised several things to the management in the interview. He wanted to please and change the attitude of the management through his diligent performance, firm commitment and dedication, He started maximising his contributions and the management got the impression that Mr. Sashidhar has settled down and will remain in the company.

After some time, the superiors started riding over Mr. Sashidhar. He was over-loaded with multifarious jobs. His freedom in deciding and executing was cut down to size. He was ill-treated on a number of occasions before his subordinates. His colleagues also started assigning their responsibilities to him. consequently, there were

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imbalances in his family life, social life and organisation life. But he seemed to be calm and contented. The management felt that Mr. Sashidhar had the potential to bear many more organisational responsibilities.

It was quite surprising for the General Manager to see the resignation letter of Mr. Sashidhar along with a cheque equivalent to a month’s salary one fine morning on 18th January, 1998. The General Manager failed to convince Mr. Sashidhar to withdraw his resignation. The General Manager relieved him on 25th January, 1998. The General Manager wanted to appoint a committee to go into the matter immediately, but dropped the idea later.

Questions :

(a) What prevented the General Manager from appointing a Committee?

(b) What is wrong with the recruitment policy of the Company.

(c) Why did Mr. Sashidhar’s resignation surprise the General Manager?

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