Test Papers / Previous Question Papers of IGNOU MS7 Information Systems for Managers

MANAGEMENT PROGRAMME
Term-End Examination

December, 2006

MS7 : INFORMATION SYSTEMS FOR MANAGERS

Time: 3 hours
Maximum Marks: 100
(Weightage 70%)

Note : (i) Answer any three questions from Section A

(ii) Section B is compulsory.
(iii) All questions carry equal marks.

SECTION A

1. (a) Is Information Technology as vital to modern global business as money ? Why or

why not ? Discuss some trends in IT development.

(b) Write a note on input and output devices, Dstingush between human data input
devices and source data capture devices.

2. (a) Describe various ways of assessing the value of information. Explain each method
briefly.

(b) In context of MIS, compare the job content of management levels.

3. (a) Describe how IT facilitates recruiting, training and personnel development and
labour planning.

(b) What are integrated software applications ? Discuss their advantages and business
utility.

4. (a) Write short notes on any one of the following

(i) Communication systems

(ii) Decision support systems
(iii) Briefly explain the features of HTML and elaborate its applications in business.

5. (a) Discuss data warehousing and data mining. How are they helpful?

(b) ExpLain Neural Networks and their applications in business.

SECTION B

6. Write short notes on any two of the following

(i) Programmed decisions

(ii) Emerging trends in convergence of IT
(iii) Intranet and Internet

7. Read the case given below and answer the questions given at the end.

An Enterprisewide information System at Hertz

Hertz Corporation, the largest company In the car rental industry, competes against
dozens of companies in hundreds of locations worldwide. Several marketing decisions
must be made almost instantaneously (such as whether to follow a competitors price
discount). The companys marketing decisions are decentralized and are based on
information about cities, climates, holidays, business cycles, tourist activities, past
promotions, competitors actions, and customers behaviour. The amount of such
information is huge, and the only way to process it is to use computers. The problem
faced by Hertz was how to provide accessibility to such information and use it properly.
A mainframe-based DSS was developed as early as 987 to allow fast analysis by
executives and managers. But a marketing manager who had a question had to go through
a staff assistant, which made the process lengthy and cumbersome . The need for a better
system was obvious.

In 1988, Hertz decided to add a PC-based EIS as a companion to the DSS. The combined
system gave executives tools to analyze the mountains of stored information and make
real-time decisions without the help of assistants. The system was migrated to a Web-
based enterprise system in 2001. It Is extremely user-friendly and is maintained by the
marketing staff. Since its assimilation into the corporate culture conformed to the manner
in which [Iertz executives were used to working. implementation and extensive use were
no problem. Hertz managers say that the enterprise system creates synergy in decision
making. It triggers questions, a greater influx of creative ideas, and more cost-effective
marketing decisions. In the Late l990s, the system was integrated with a data warehouse
and connected to the corporate intranets and the Internet. Now local managers know all
competitors prices, in real time. By using supply-demand models, they can assess the
impact of price changes on the demand for cars. In 2001 the system was connected to the
corporate ERP and expanded to include e-commerce capabilities.

Questions:

(a) Why was the DSS insufficient by itself, and how did the addition of the EIS make it
effective ?
(b) Why is the data warehouse useful?
(c) Why was an integration to e-commerce needed ?
MANAGEMENT PROGRAMME
Term-End Examination

December, 2005

MS7 : Old: INFORMATION MANAGEMENT AND COMPUTERS

Revised: INFORMATION SYSTEMS FOR MANAGERS

Time: 3 hours
Maximum Marks: 100
(Weightage 70%)

Note : (i) There are two sets of question papers i.e. Set 1 & Set 2. Set 1 is for those
students who have registered for this course prior to July 2004. Set 2 is for those students
who have registered for this course from July 2004 onwards.
(ii) There are two sections in each set. Attempt any three questions from Section A of each
set. Section B is compulsory.
(iii) A total of five questions have to be attempted. All questions carry equal marks.

Set I (OId Course)

(Information Management and Computers)

SECTION A

1. "Computers have now become an integral part of our life." Explain. Discuss the
application of computers in any two functional areas of management giving examples.
(20)

2. (a) Explain main hardware units of a computer. Discuss various categories of computer
software. (10)

(b) Discuss the managerial applications of spreadsheets giving main features. Highlight a
few important business applications. (10)

3. ''MIS has become an integral part in today's organisation." Explain. What is an

information network ? Explain. (20)

4. Discuss Data Flow Diagrams and Data dictionary. Give few programming
vocabularies. Explain the advantages of using COBOL. (20)

5. Using graphical method,.find out the maximum value of Z for the following problem :
(20)
Z=4x1 + 3x2
subject to
3x1 + 4x2 24
8x1 + 6x2 48
x1 5
x2 6
x1, x2 0

SECTION B

6. Solve the following assignment problem of minimising total time for doing all jobs.
(20)

Job
Operators
12345
1 62536
2 25877
3 78698
4 62345
5 93897
6 47468

7. (a) Discuss Slack and Float in the context of a project. Why is PERT important in
network analysis ? (10)

(b) Following table gives activities involved in a PERT Project. (10)

Duration (days)
Job
a m b
1-2 3 6 15
2 - 3 6 12 30
3 - 5 5 11 17
7 - 8 4 19 28
5-8 1 4 7
6-7 3 9 27
4-5 3 6 15
1-6 2 5 14
2-4 2 5 8

(i) Draw the network diagram.

(ii) Find out critical path.

Set 2 (Revised Course)

(Information Systems for Managers)

SECTION A

1. Explain different types of Information Systems. How do computers help us in decision

making ? Enumerate different system software giving examples. (20)

2. Explain the main features of MIS. Discuss the determinants of MIS design as given by
Zani. What do you understand by knowledge ? (20)

3. (a) Explain Data and Information. What are the main characteristics of information ?
(10)

(b) Discuss hierarchy of systems. What are the various controls required for an
information system ? (10)

4. (a) Discuss programmed and non-programmed decision making giving examples. (10)

(b) Discuss the application of computers in inventory management giving examples. (10)

5. Explain the concept of the System Development Life Cycle. Give various steps of
system analysis and design giving suitable examples. (20)

SECTION B

6. Write brief notes on : (20)

(a) Internet
(b) Features of JAVA
(c) Database Management Systems
(d) Data Warehousing and Data Mining
(P) Intelligent Support Systems

7. (a) Explain the features of Visual Basic and JAVA. (10)

(b) Discuss Neutral Networks and their application in decision making. (10)

Time: 3 hours
Maximum Marks: 100
Weightage: 70%

Note: (i) Section A has six questions, each carrying 15 marks. Attempt any four questions
(ii) Section B is compulsory and carries 40 marks, Attempt both questions.
(iii) Statistical tables may be supplied on demand
MS8 Quantitative Analysis for Managerial Applications

December 2007

SECTION A

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

2. Use Cramer's rule for a 3 x 3 system of linear equations to solve the following system :

2x - y + 3z = - 3

-x-y+3z = -6

x-2y-z=-2

3. For the data given below, compute the quartile deviation.

Monthly wages (Rs.) No. of workers

Below 850 12
850 - 900 16
900 - 950 39
950 - 1000 56
1000 - 1050 62
1050 - 1100 75
1100 - 1150 30
1150 and above 10

4. The members of a bonsulting firm rent cars from three rental agencies : 60% from
agency 1, 30% from agency 2 and 10% from agency 3. lI 9o/o of the cars from agency 1
need a tune-up , 2Oo/0. of the cars from agency 2 need a tune-up and 6% of the cars from
agency 3 need a tune-up, what is the probability that a rental car delivered to the firm will
need a tune-up ?

5. To see whether silicon chip sales are independent of where the US economy is in the
business cycle, data have been calculated on the weekly sales of a firm and on whether
the US economy was rising to a cycle peak, at a cycle peak, falling to a cycle peak or at a
cycle trough. The results are

Weekly chip sale

 High Medium Low Total
Economy at peak 20 7 3 30
Economy at trough 30 40 30 100
Economy rising 20 8 2 30
Economy falling 30 5 5 40
Total 100 60 40 200

State the null hypothesis. At 0.10 significance level, what is your conclusion ?

(Given the tabulated value of test statistic is 10.645)

6. Write short notes on any three of the following :

(a) Concept of Maxima and Minima

(b) Types of classification of data

(c) Pascal Distribution

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

(e) Box-Jenkins Models for Time Series

SECTION B

7. In order to test whether marathon races are bad for health, a researcher took a random
sample of 400 runners who participated in the Delhi half-marathon and found that 13% of
them got sick in the two-week period after the marathon. In a second sample of 400
runners who did not participate in the marathon, only 3o/o were sick'in the same two-
week period. What would be the null hypothesis ? Find a 9oo/o confidence interval for
the percentage of Delhi half-marathon runners who got sick in the two-weeks after the
race.

8. A study by a roadways company on the effect of bus-ticket prices on the number of

passengers produced the following results :

Ticket price Rs. Passengers per 100 km

25 800
30 780
35 780
40 660
45 640
50 600
55 620
60 620

Develop the estimating equation that best describes the dala. Predict the number of
passengers per 100 miles if the ticket were Rs. 10.

MANAGEMENT PROGRAMME
Term-End Examination

MS9 MANAGERIAL ECONOMICS

December 2007

Time: 3 hours
Maximum Marks: 100
(Weightage 70%)

Note : This paper contains two Sections A and B. Attempt any three questions from
Section A carrying 20 marks each. Section B is compulsary and carries 40 marks.

SECTION A

1. What is the basic objective of a firm? Distinguish between 'Accounting Profit' and
'Economic Profit' with the help of an illustration. 20

2. What do you understand describing the regression explain why it is important by

demand forecasting? While method of demand forecasting, for the firm to forecast
demand. 20

3. Distinguish between the following with the help of illustrations : 20

(a) Fixed costs and Variable costs

(b) Short run costs and Long-run costs

(c) Direct costs and Indirect costs

(d) Total cost, Average cost and Marginal cost

4. (a) Differentiate between Monopoly and Monopolistic competition giving examples

(10)

(b) Explain why profit is maximum at a level where MC : MR. Is profit always maximum
when MC : MR? Comment. 10
5. (a) What are the different types of statistical analyses used in the estimation of
production function? Explain briefly with the help of examples. Discuss the limitations of
different types of statistical analysis. (10)

(b) Briefly explain how the Cobb - Douglas production function can be used to determine
returns to scale. (10)

SECTION B

6. (a) Which of the following commodities has most inelastic demand? Give reasohs for
your answer. (10)

(i) Soap

(ii) Salt

(iii) Penicillin

(iv) Ice-cream

(v) Cigarettes

(b) Suppose the demand function of a product is given as Q = 500 - 5P. Find the profit
maximising price when (10)

MC=0

MC=20

7. Suppose you are a sales manager of an organization. Explain how does the analysis of
demand contribute to business decision making, in the light of the responsibilities of a
sales manager. 20

MS5 : MANAGEMENT OF MACHINES AND MATERIALS

Time: 3 hours
Maximum Marks: 100
(Weightage 70%)

December 2006

Note : Section A has five questions that carry 20 marks each. Attempt any three questions
from this Section. Section B is compulsory and carries 40 marks.

SECTION A
1. (a) Explain the meaning and importance of plant layout decision. Flow does It improve
productivity?

(b) Product X sells for Re. 100 each and Y sefls (or Rs. 120 each. Product K has fixed
casts of Rs. 20,000 per year and variable co5t of P.s. 12 per i.e-ut, wtiereas product V has
fixed costs of P.s. 8,000 and variable cost of Rs. 40 per unit. At what production rate
(volume) are the profits from bothproducteequal? 10+10

2. (a) Define FMS What Is (he general field of FMS application slgnlhcant In terms of the
potential market size for its capability ? State with reference to any Production unit.

(b) The following table contains information regarding jobs that are to be scheduled
through one machine:

Job Processing Time (Days) Due Date

A 4 20
B 12 30
C 2 15
D 11 16
E 10 18
F 3 5
G 6 9

Sequence the jobs using

(I) Shortest Processing Time (SPT)
(ii) Processing with due dates

Assume the list is by order of arrival. For each of the methods, determine the average job
flow time. average lateness and average niaiiber of jobs t the work centre. (10+10)

3. (a) Four different organisatlons are considering your home town as a potential location
for one of thefollowing:

(I) A medical research centre

(ii) A soft-drink producer
(iii) A steel plant
(iv) A software producer

Select any one of the above four and systematically evaluate the relevant locational
factors.

(b) A manufacturing company has an expected usage of 50.000 units of a certain product
during the next year. The cost of processing an order Is Rs. 20 and the carrying cost per
unit Is Rs. 050 for one year. Lead time on an order is fIve days and the company keeps a
reserve supply of two days usage.

Calculate:

(I) The economic order quantity, and

(ii) The re-order point (Assume 250 days year) (10+10)

4. (a) A worker fri a manufacturing industry is expected to work foe a minimum of 400
minutes, In an 8-how shift. The remaIning 80 minutes are meant for his personal and rest
needs.

Calculate the following:

(I) Standard time per piece of a job whose normal time is 10 min.(II) Number of pieces to
be produced per day.(III) Efftciency of worker for 36 jobs he produced in a shift

(b) There are six Jobs, each of which is to be processed through the machines and M2 In
order M1 M2. The processing time Is given In hours, Determine the sequence of these
jobs which minimizes the total elapsed time. Also, calculate the Idle time for both
machines. (10+10)

Job Number Processing Time on M1 Processing Time on M2

1 5 8
2 9 4
3 4 8
4 7 3
5 8 6
6 5 6

5. (a) Discuss with suitable examples, the rok of the Operations Manager In todas
context Do you agree that operations management is a mufti-dlsciplinanj function ?
Discuss.

(b) A small manufacturing facility is being planned that will teed parts to four
,nanufactunng facibties. The location of the current plants with their co-ordinates and
volume requirements Is given in the blowing table.

Plant location Coordinates (x, y) Volume (parts per year)

Location A (300, 400) 4000
Location 8 (360. 430) 5000
Location C (200, 350) 6000
 Location D (450, 500) 3000

Use the centre of gravity method to determine the best location for this new facilIty.
(10+10)

SECTION B

6. A reactor and storage tank are connected by a 75 cm insulated process line that needs
periodic replacement. There are valves along the lines as well as the terminals and they
need replacemeni as well, No pipe and valves are La stock Their drawings are available,
The line is overhead arid requires scallolding. Pipes can be fabricated at the plant. An
adequate craft Labour is available The plant methods standard section has furnished the
following data

Activity Time (Hrs) Predecessor(s)

A-Develop required material list 10 --
B-Procure pipe 200 A
C-Erect scaffold 15 --
D-Remove scaffold 5 H,L
E-Deactivate line 10 --
F-Prefabricate sections 40 B
G-Place new pipes 35 F,K,I
H-Fit up pip and valves 10 G,J
I-Procure valves 220 A
J-Place valves 10 I,K,F
K-Remove old pipes and valves 40 C,E
L-Insulate 25 G,J
M-Pressure Test 8 H
N-Clean-up and Start-up 5 D,M

(a) Draw the network diagram of this project plan.

(b) flnd the critical path and its duration. (20)

7. Wrile short notes on any four of the following: (4x5=20)

(a) Operating Characteristic Curve

(b) Delphi Tedinlque
(c) ABC Analysis
(d) Robotics
(e) Balance delay
(f) Job enrichment
MS6 MARKETING FOR MANAGERS

December 2007

Time: 3 hours
Maximum Marks: 100
(Weightage 70%)

Note : (i) Attempt any three questions from Section A.

(ii) Section B is compulsory.
(iii) All questions carry equal marks.

SECTION A

1. What is consumer behaviour? Explain briefly the various factors influencing consumer
behaviour taking example of any consumer durable of your choice.

2. (a) Distinguish between Market Segmentation and Product Differentiation.

(b) Describe the bases that you will use in segmenting the market for the following
products :

(i) Hair dryer

(ii) Low calorie sweetener

3. What are the objectives of Sales Promotion?

As a Sales Manager, you have been assigned the task planning the Sales Promotion
program of a ready-to-co meal. Discuss the steps that you would follow for effective
planning and management of the said program.

4. Write short notes on any three of the following :

(a) Marketing Research as a tool for decision making

(b) Functional Organisation

(c) Functions of Packaging

(d) Stages in new product development

(e) Product Life Cycle

SECTION B
5. Read carefully the following two case situations given below and answer the questions
mentioned at the end of each case.

(a) The pen market in India is around Rs. 700 crores and 60 to 650/o of the market
belongs to ball pens. Growth is in the range of 20o/o annually. The "X" brand created a
kind of revolution by bringing in an offering priced higher than a number of competing
brands and also offered greater reliability and superior flow. The brand is a market leader.
"Y" was a follower brand priced below "X" and it has become a 50 crore brand. The
brand also provided a "secondary" differentiation by introducing a number of colours.

Question :

Explain the pricing strategy of to this situation. and its relevance

(b) ABC is a well-known brand in the cement industry. It has a large distribution network
of around 8000 plus stockists and 20 C and F agents. During the last decade the
company's market share has gradually declined to 15% from earlier 30%. About a couple
of years ogo, the brand opened its first company-owned retail outlet called "ABC Ki
Duniya" (World of ABC). The outlet reassures the customer about the genuine material,
and encourages interaction besides displaying a range of refractory and aluminium based
products. This type of outlet is also likely to enhance the company's image.

Question :

Taking into consideration the cement market and the commoditised nature of the product,
comment on the pros and cons of an outlet of this kind. Would such outlets alone enhance
sales? Explain your answer

MS10(S): ORGANISATIONAL DESIGN, DEVELOPMENT AND

CHANGE

Time : 3 hours
Maximum Marks: 100 (Weightage 70%)

Note
(i) There are two Sections A and B.
(ii) Attempt any three questions from Section A. All questions carry 20 marks each:
(iii) Section B is compulsory and carries 40 marks

June 2007

SECTION A

1. What is Organisational Design? Explain the purpose of it. Briefly describe the factors
affecting Organisational Design, with relevant examples.
2. Describe different approaches to organising and analysing work. Discuss their
relevance in the present day context.

3. Describe some of the interventions which are essential for managing change, with
relevant examples.

4. What are the factors which are necessary in influencing institution building ? Briefly
describe the role of the chief executive in making an organisation grow into an institution,
with an exarnple.

5. Write short notes on any three of the following :

(i) Questionnaire as a diagnostic tool
(ii) Virtual organisation
(iii) Phases of planned change
(iv) Quality of work-life
(v) Line & Staff organisation

SECTION B

6. Read the following case carefully and answer the questions given at the end :

Since 1994, Boeing began the process of remaking the company for the next round of
aircraft purchases. Every part of the company is involved, from engineering to
manufacturing. The focus of the change is that Boeing is a manufacturing company rather
than an engineering and technology company. Due to changes in the air travel business,
the major commercial airlines are demanding lower airplane prices and significantly
lower operating costs. Airbus continues to be a fierce competitor, so Boeing must meet
the competition early and on every front. (Boeing bought McDonnell Douglas in 1997)

It is not as if the company is in financial trouble. Its new model 777 is generating lots of
orders, plans are in the works for a new supersonic and another jumbo jet for commercial
sales, and several new project possibilities exist for the defence division. The new 777
was designed completely on the computer so that designs went straight from the designe
computers to the machine tools for manufacturing. It can carry as many as four hundred
passengers, fifty more than the comparable Airbus 330.

It is 15 per cent more fuel efficient, and can fly over eight thousand miles nonstop.
Orders are coming in faster than for any other new plane, although its price is pretty steep
, $12 - $15 million, depending on interior layout.

Boeing's new CEO, Philip Condit, must continue the reductions in cycle time and cost
cutting, started by his

predecessor, Frank Shrontz, because airlines are making their purchase decisions
differently than in the past, even choosing in some cases to refurbish older planes rather
than buy expensive new ones. The changes started with Condit and his team of presidents
of the divisions of commercial planes , defence and space, and computer services. This
group differs notably from its predecessors in that they have met togeth er ior several
years to discuss the good and bad things about each other's divisions and the future of the
company. They all embrace the new togetherness theme as the primary means through
which

the company will be able to reduce cycle times, improve delivery times, cut product
development time, and reduce total costs.

In the former structure, the design and manufacturing groups were separate. Design and
engineering groups would design the planes and then give the plans to manufacturing to
build. When problems existed in the design, they would be sent through the hierarchy
back to engineering for correction. Under the new structure, comprehensive design-and-
build teams include members of all groups involved. Therefore, planes are originally
designed to meet customers needs are easier to build, and corrections are made faster. For
example, previously when tool builder Tony Russell had a problem with an engineering
design or specification, he would have to go to his supervisor and the problem would be
shuffled through to engineering. Now he goes directly to the engineering and design
group, gets the problem solved, and gets back to work with the correct design. This type
of revision in the process has helped reduce the product delivery time from eighteen to
ten months. The team approach and working-together ideas were used extensively on the
777. Some teams included tool makers, designers, manufacturing workers, suppliers, and
even customer representatives. Contrary to past procedures, workers on the line were
allowed to change how planes were built, which has significantly decreased costs. Condit
has instituted 360-degree performance reviews in which managers are evaluated by their
subordinates, their peers, and their own supervisors to improve understanding of how
they are doing from all perspectives. Employee empowerment is increasing at all levels.
Condit and his team are having quite an impact throughout the company.

Questions

(a) The new way of organizing at Boeing most resembles which of the classical types of
organi zing ?

(b) How have responsibility and authority been altered under Condit's new approach ?

(c) Describe the new ways of organizing at Boeing in terms of the configurational and
operational aspects of structure. Draw an organization chart for Boeing.

MS94 (S) : TECHNOLOGY MANAGEMENT

Time: 3 hours
Maximum Marks: 100
(Weightage 70%)

Note : Attempt all questions which carry equal marks.

1. (a) "R & D provides a window to development and enables the nation or a firm to
evaluate external developments and react more quickly to them." Illustrate by indicating
alternative objectives in the area of energy and materials technology.
What are some of the commitments and assurances that a technology policy is supposed
to commit to the government ?

OR

(a) "A prerequisite for effective utilizauon of R & D resources is the development of
technology infrastructure within the country." Give some examples of technology
infrastructure that are necessary for developing technology capabilities.
(b) Discuss the Freeman's categorisation of technological change with examples.

2. Explain the Delphi technique. State its advantages and disadvantages.

OR

what are the objectives of technology search strategy ? Briefly explain various categories
of payments for the technology.

3. Define technology absorption. What constraints in technology absorption have been

reported as far as indian experience is concerned ?

OR

Describe the various stages in Technology Assessment and briefly explain each stage.

4. "An enterprise should be viewed as a Human Performance System." What would be

the major components of such human performance system in the context of technology
management ? Explain.

OR

What is Technology Information ? Discuss the role of Technology Information system.

Explain the contents of Technology Information with suitable examples.

5. Explain any four of the following :

(a) Important inputs for enterprise level technology strategy
(b) General guidelines to be followed for transfer and absorption of imported
technologies
(c) lndian industry and industrial research
(d) S & T manpower in India
(e) Venture Capital : Role and its growth in India
(f) Technology and Socio-economic planning

MS95 (S) : RESEARCH METHODOLOGY FOR MANAGEMENT DECISIONS

Time: 3 hours
Maximum Marks: 100
(Weightage 70%)

Note : (i) This paper contains two sections, Section A and B. Section A contains five
questions. Attempt any four questions from this section. Section B is compulsory
(ii) Statistical tables may be provided.
(iii) Use of own non-programmable calculator is allowed.

SECTION A

1. A local supermarket has experienced a decline in unit sales and little change in rupee
value sales. Profits have almost vanished. The chief executive in searching for ways to
revitalize the operation, was advised to increase the number of hours the market is open
for business. He comes to you for advice in structuring a research problem that will
provide relevant information for decision making, Define the research problem taking
care to : (15)
(a) state the relevant question.
(b) enumerate the alternative answers.
(c) clearly define the units of analysis and characteristics of interest.

2. "A sample may be large yet worthless because it is not random; or it may be random
but unreliable because it is small." Comment upon the above statement and explain the
importance of sampling in daily life. (15)

3. What do you understand by factor analysis ? Mention the purpose and uses of factor
analysis. (15)

4. What are the seven elements of communication, which are relevant for making a
presentation ? Discuss. (15)

5. Write short notes on any three of the following : (15)

(a) Objective characteristics and Inferred characteristics
(b) Editing of primary data
(c) Operating and Strategic decisions
(d) Ordinal Scale
(e) Audio-visual aids in presentation of reports

SECTION B

6. Describe the semantic differential scale. Use the semantic differential technique to
develop the profile of three television manufacturing companies in India. (20)

7. A random sample of 30 students obtained the following marks in a class test : (20)
Test the hypothesis that their median score is more than 50.
58 55 25 32 26 85 44 80
33 72 10 42 15 46 64 39
38 30 36 65 72 46 54 36
89 94 25 74 66 29

MS-96: TOTAL QUALITY MANAGEMENT

Time : 3 hours
Maximum Marks : 100
(Weightage 70%)

Note : (i) There are two sections : Section A and Section B.

(ii) Attempt any three questions from Section A, carrying 20 marks each.
(iii) Section B is compulsory and carries 40 marks.

SECTION A

1. (a) Explain with examples the difference between proactive action and reactive action
in the context of TQM.

(b) Which of the quality gurus, in your view, have most significantly influenced the
quality movement since World War II ? Briefly discuss the main points of the
contribution of one such guru.

2. (a) "TQM requires a transformation in thinking about how you view your customers,
suppliers and shareholders." Explain, citing any research evidence.

(b) Discuss the various types of quality costs What kind of costs should a firm be more
concerned with and why ?

3. (a) What is benchmarking ? What are the different types of benchmarking in relation to
objects being benchmarked ?

(b) What do you mean by 'Zero Defects' ? What are the 14 steps that Crosby has
suggested to build up Zero Defects movement ?

4. (a) ''Empowering people in the organization is an essential element of TQM. "Discuss

and explain the role of education and training in this respect.

(b) How can a healthy environment (in the context of Health and safety) in an industrial
organization be maintained ? How will it help in quality management ?

5. (a) How does an organization working on ISO 9000 QMS control the process of
production ? How are non-conformities controlled ?

(b) What is audit report and what are the essential aspects that should be included in it ?
SECTION B

6. Read the following case carefully and answer the questions given at the end.

CARCOM : THE TQM INITIATIVE

'Carcom' is a supplier of automotive safety components employing around 700 staff

which is located on two sites in Northern Ireland. The company was originally American
owned but after a joint venture with a Japanese partner in the late 1980s, it was
eventually bought out by the latter.

The quality initiative began in 1988-89 with a five-year plan based on the Kaizen
philosophy, this concept having been picked up from the Japanese partner. This was
driven by senior management in response to what they saw as increasing customer
demand and operating considerations. The achievement of ISO 9001 registration in 1990
brought together processes carried out by departments which had previously been
undertaken in isolation. The company is now focusing on Kaizen with the principles of
improvement, customer delight, systems focus and participation. A range of quality
management tools and techniques are used. A TQM steering committee is responsible for
overall direction but there is also a further steering committee to oversee implementation
of the Quality Improvement Teams (QITs) as well as a full time coordinator. There are
teams of shopfloor operators based on natural workgroups, and these tend to focus on
product problems and environmental issues (such as working conditions). In contrast,
Kaizen teams focus on process improvements (for example, die change) and problem-
solving workgroups are established in response to specific customer concerns (for
example, warranty claims).

Senior managers stress that a long-term approach is now being taken which is in contrast
to some of the programmes in the early 1980s. These former piecameal initiatives
included quality circles which had been characterized by considerable changes in
personnel , with a number of champions having moved on leaving behind a flagging
initiative in contrast, the company is now taking time to get the processes right and
providing a central focus through quality for change. Cultural change is the aim but it is
recognized that only incremental progress can be achieved and that a supportive attitude
is required from management Thus, QIT members are given extensive training and are
encouraged to tackle problems which give earlly success and build teamwork, rather than
put pressure on teams to deliver immediately on big issues.

The Impact of the TQM Initiative

While it is still early days, the initiative is already felt to have had a major impact. The
management structure has been reduced by one layer, shopfloor layout has been
improved, and scrap rates, stock, work-in-progress and inspection times have been
reduced, so too have the numbers of inspectors, whose role is now seen as one of
analysts. Employee response to these changes has generally been positive, and the
company nas spent considerable effort in relating 'qualiy' directly to employees' work,
particularly through the use of measures which are displayed adjacent to the workstation
and maintained by staff themselves. The unions were assured that there would not be job
losses as a result of Kaizen, although they continue to have concems about this and also
raise the issue of payment for changes in job roles - particulady in relation to SpC. The
company has adopted an open information policy to foster greater trust at the workplace,
and business-related issues are given greater prominence at the joint works committee
meetings. Management also believe that the quality initiative has led to a reduction in
union infliuences although this was not an original objective.

The Strategic Nature ofl the Human Resource Function

The human resource function has emerged from a welfare to a more strategic role in
recent years. This has been assisted by an MD who is regarded as a 'people' s person'
claiming that 'you can't divorce people from quality,' and by the appointment of a
personnel director to the boatd together with a new industrial relations manager. This has
broadened the role of human resources and enhanaed its status The appointment of a
training manager was significant, since under the previous regime little off-the-job
training was conducted. Training budgets have actually increased in volume and
monetary terms despite the company's recently recorded trading losses. Recruitment and
selection are becoming more sophisticated as the company wish to idenfify teamworkers.

The links between human resources and quality were made explicitly by tbe MD : "We
cannot separate HR from TQM, and without HR the QIP will not work effectively." In
addition to the issues mentioned above, the function was also seen as being important in
building the people aspect into the strategic quality planning process. addressing the
problem of absenteeism, and supporting line management by helping to change employee
attitudes/organizational culture. In addition, the function has provided appropriate
training programmes for quality, in which there has been considerable investment in time
and resources, it has counselled the mentors to the QIT, and ensured that managers
communicate with staff by providing advice on the best means of doing this. Quality
principles are also being developed in relation to the human resource function, with
specific targets being set (for example, for absenteeism) as well as more general aims (for
example, on training).

Questions :

(a) Analyse the links between TQM and HRM with reference both to this case study and
more generally.

(b) What does the case study demonstrate about the contribution a personnel/HRM
function can make to the development of TQM in an organization ?

(c) How might the principles of TQM be applied to a personnel function ?

(d) What gereral implications does TQM have for industrial relations ?
June, 2005

MS-97 : INTERNATIONAL BUSINESS

Time : 3 hours
Maximum Marks : 100
(Weightage 70%)

Note : (i) There are two sections : Section A and Section B.

(ii) Attempt any three questions from Section A, carrying 20 marks each.
(iii) Section B is compulsory and carries 40 marks.

1. Distinguish between Theory of Absolute Cost Advantage and Theory of Comparative

Cost Advantage. Critically examine both the theories in the modern context. Discuss the
factors by which a nation could maximise its gains from intemational trade.

2. (a) What ownership strategies are available to an MNE? Examine their relative merits
and demerits.

(b) What kind of information would an MNE like to gather under environmental scanning
and what scanning mode could it adopt for this purpose?

3. How do MNEs control their international operations ? In what way do the cultural
characteristics of a nation influence the control system?

4. What factors influence the decision regarding location of production facilities in

international business ? What complexities and trade-offs might be involved?

5. Write notes on any four of the following :

(a) Flexible Manufacturing System (FMS)
(b) Factors affecting the bargaining power of the parties in international business
negotiations
(c) Dynamics of Regional Trade Groupings
(d) WTO and international business
(e) ASEAN and its significance for India
(f) Project Performance Evaluation

SECTION B

6 (a) Indian market is attracting expatriates of all hues to the country. What are the
changes over the past that have become points of attraction for foreign nationals to work
in India?

(b) Some people say that trying to fit employees into the desi culture is a bit like trying to
fit a square peg into a round hole. But as Indian companies globalize, thatrs one more
skill they have to pick up. Comrnent and give your own views on the subject. What
general rules should a globally aspiring company in India keep in mind while hiring
foreign nationals ? (20)

7. Analyse the case study Smith & Robin and give your response to the question : Has
Smith & Robin chosen the right entry strategy for the Indian market ? (20)

Smith & Robin

I knew we were right, Neil Simon thought to himself as the steward brought him a glass
of Cardhu single malt. The whisky felt good after a week when he was allowed to drink
nothing but champagne by his hosts in India. Ah, but then they had had reason to
celebrate. Simon signalled to the steward that he'd like a refill he planned to take his time
over the second one and thought about the week that had been.

Simon, the director in-charge of international franchise operations at Smith & Robin, a
$S-billion marquee garment retailer, had arrived in India exactly seven days back with
mixed feelings. He'd been at S&R less than eight months he had been hired when the
company decided to abandon its twenty-year old strategy of expanding geographically
through owned outlets as against franchised ones - but he knew the India trip was one of
those things that could make or break his career.

This wasn't his first visit to India. He'd visited it as a backpacker in his second year at
college, then, ds a middlelevel executive of a cola compang, and then again, soon after he
joined S&R. It was during the last visit that he noticed the kind of brand equity the
company enjoyed in India : S&R was a known name and there was huge demand for its
offerings. The grey market did a thriving business in both real S&R products, smuggled
into the country, and ersatz ones. so he had gone back and made a case for India.

"Let us go in now and seed the market and leverage our equity there," he'd told the board.
Convincing the board hadn't been easy. India's restrictive regulations, when it came to
foreign direct investment in retail, hadn't made his job any easier. Then, there were tales
of poor infrastnrcture, horror stories about how foreign investors were treated, and
wholly-inappropriate real estate options. Worse, some members of the board weren't fully
convinced about the 'franchise strategy' S&R had moved to. "l see that we are shutting
three of our profitable shops in Londoh," one of the board members Barbara Rutherford
had sniffled. Fortunately for Simon, the chairperson Lucy Walters had come to his rescue.
"We decided that franchising was the best way to grow last year Bartara; this meeting
isn't about that."

Finally, a compromise had been reached. S&R would enter the country through one or
two 'pilot outlets'. To Simon went the task of finding a suitable franchisee. That had been
easy. The Kathuria family that ran S&R's Malaysia franchise had business interests in
India, and it hadn't taken Simon much to convince them to take on the India franchise.

The two Kathuria-owned franchise stores had opened in upmarket malls in Delhi and
Mumbai the previous week and Simon had winged it down to be there at the opening.
The Mumbai outlet was 7,000 square feet large; the Delhi one, 3,000 square feet And
both sold a range of garments for men and women, lingerie, and toiletries all imported,
and all under the S&R brand name, io keeping with the company's policy of only selling
the best quality products sourced at the least possible cost at all its outlets.

The tariff regime in India made some prices look ludicrous a women's shirt cost over Rs.
Z,So0; men's jeans, Rs. 3,20a - and made S&R, which was perceived to be a high-end
value-for-money brand into a premium one with aspirational trimmings. Indeed, the only
other stores that stocked merchandise of comparable prices were boutiques devoted to
designer-wear.

The India-strategy's detractors at He had raised objections over the size of the Delhi
outlet ("S&R isn't associated with cramped buying spaces") and the price-tags (lndians
aren't dumb, vou know). But Simon managed to steer clear of the flak. The fact that
leading consulting firms estimated India's organised retail business to zoom from Rs.
5,500 crore in 2000, to Rs. 35,000 crore in 2005, helped his cause.

-- TABLE --

Then, he had landed in India; the Kathurias had welcomed him like he was royalty; he
had been allowed to drink nothing but champagne ("Here's to the stop reopening";
"Here's to our first sale"; "Here's to our first ihdividual sale over Rs. 1,00,000"....); and
things had gone like a dream.

The launches had coincided with India's equivalent of the Christmas season the festival of
lights, they called Diwali. The two stores' initial stock had been sold out three days flat.
And the fact that some of the products still carried their dollar prices oversight by the
store and a full 40 per cent lower than their prices in Indian rupees, thanks to the duties
hadn't deterred shoppers.

June, 2005

MS-93: MANAGEMENT OF NEW AND SMALL ENTERPRISES

Time : 3 hours
Maximum Marks : 100
(Weightage 70%)

Note : This paper consists of two Sections A and B. Attempt any three questions from
Section A. Section B is compulsory. All questions carry equal marks.

SECTION A

1. What do you understand by the term entrepreneurial competence ? How do

entrepreneurial competencies affect enhepreneurial success ? Explain the process of
development of entrepreneurial competencies.
2. As a small entrepreneur, you are planning to set up a travel agency dealing in both air
and rail travel. What are the variables you would need to study in order to analyse the
competitive situation ? Explain. Also describe what are the trade practices, if any, that
you may need to consider while assessing your market.

3. An entrepreneur planning to set up a textile printing unit has approached you to seek
advice on his business plan document. He would like to have an assessment of his
working capital requirement. Develop a detailed checklist of the items he must include to
arrive at a realistic computation of his working capital.

4. You are a manufacturer of tooth- brushes, operating in the SSI sector. What are the
bases on which you would like to segment your market and why ? How would your
response differ if you were also manufacturing toothpastes ?

5. With the help of suitable examples discuss the coping strategies used by successful
family enterprises to leverage the competitive advantages of family enterprises and avoid
the associated problems.

SECTION B

6. Read the case study given below and answer the questions given at the end of the case.

Managing a Family Business

Nikhil is the youngest of the three sons of C.B. Gupta. The eldest son, Kailash, is an
architect and the second son, Jagdish, is an electrical engineer. Nikhil himself is a
commerce graduate. Kailash is married to Uma, who came from a business family. Nlkhil
lost his mother when he was a young boy. They all lived in a large flat in Bombay until
1989, when Kailash and Uma moved into another flat on the same floor.

C.B. Gupta (59) started his career as a businessman 35 years ago. He later on left his
agency business and started a small textile processing company in Bombay. Though
Kailash was inducted into the business soon after his studies, he never showed any
interest in modernising and expanding it. Jagdish was responsible for marketing
operations and Kailash was responsible for purchase and production. The father took care
of finance and overall management of the unit. He thought that Nikhil could be inducted
into the business after his studies and be given charge of finance.

After completing his studies, three years ago Nikhil started helping the family business.
He was very ambitious and wanted to improve and expand the activities. He realised that
purchase remained a weak area in the organisation. He felt that Jagdish was more
receptive to his ideas than Kailash.

It was then that Nikhil got the idea of starting an advanced processing and readymade
garment manufacturing unit. It had to be located about 100 km away from Bombay.
Nikhil took upon himself the responsibility of implementation. The unit went onstream
within six months.

The turnover of the old unit was Rs. 4.5 million and had remained about the same in the
last three years. The new unit with assets worth Rs. 10 million, had already registered a
turnover of Rs. 10 million in the first year and Rs. 20 million in the second year. Nikhil
wanted to hit the Rs. 100 million target in another two years.

Purchasing and marketing were to be centralised as that would give substantial

economies. Although Nikhil was in-charge of the unit, the other members of the family
used to take an active part in its running.

Soon Nikhil realised that he and Kailash disagreed on several points. It ranged from
workers uniforms to the quality of fabrics.

Questions :

(a) What are the potential problems that you think this enterprise is likely to face ?

(b) Wbat suggestions do you have for Nikhil to successfully cope with the challenges
being faced ?

December, 2005

MS91 (S) : STRATEGIC MANAGEMENT

Time: 3 hours
Maximum Marks: 100
(Weightage 70%)

Note : There are two Sections A and B. Section A has two sets. Set I is meant for the
students who have registered for MS-91 : Strategic Management prior to July 2005 i.e.
upto January 2005. Set II is meant for the students who have registered for MS-91 :
Advanced Strategic Management from July 2005 onwards. Attempt any three questions
from Section A. All questions carry 20 marks each. Section B is compulsory for all, and
carries 40 marks.

SECTION A

Set I (OId)

Strategic Management

1. Organizational environment plays a major role in the decision-making of the firm.

Discuss in brief, the organizational environment with respect to the stakeholders and their
relationship with the firm.
2. Explain the concept of selflessness with the universal inner structure of leaders.

3. Explain technology forecasting process and discuss various forecasting techniques.

4. Explaln the concept of Social Process Audit. Briefly discuss Linowes Model as an
approach to social report.

5. Write short notes on any three of the following :

(a) Environmental analysis
(b) Levels of strategy
(c) Evaluation of strategy
(d) Leadership styles
(e) Holding companies

SECTION A

Set II (Revised)

Advanced Strategic Management

1. Discuss the nature and scope of corporate management and its role in non-business
organisation, giving examples.

2. 'The different market structures have different viewpoints with respect to competition.'
Explain the statement with respect to the market structures and sustainable competitive
advantage.

3. What are the different steps involved in developing R & D strategy ? Discuss with
suitable examples.

4. Write brief notes on :

(a) Kumaramangalam Birla Committee Report
(b) Narayana Murthy Committee
(c) Naresh Chandra Committee

5. Discuss tbe issues and challenges in Knowledge Management in the present day
competitive environment.

SECTION B

6. Read the following case carefully and answer the questions that follow :

ASIAN PATNTS (INDIA) LIMITED

The siege is over, and the time has come for the leader to sally forth into greener pastures.
Even as the paints industry is emerging from the shadow of recession, the Rs. 560 crore
Asian Paints (India) Limited (APIL), is mixing new shades to emerge with winning
colours.

Says managing director Atul Choksey : "With proper planning and a comprehensive
approach to issues, we intend to keep pace with the growth of the industry".

APIL is actually targeting a growth rate that is higher than the 9 to 10 per cent that the
industry has been averaging recently. In the year to March 1994, the company notched up
a gross sales turnover of Rs. 559.96 crore (net sales : Rs. 401.96 crore), a growth of 10.8
per cent over the previous year. Net profit also registered a healthy growth of 31.5
percent to Rs. 25.61 crore. The results have tidied up the company's balance sheet, which
had begun to look a bit ragged.

APIL's approach is multipronged : expansion of its product range and introduction of

value added, niche products in the industrial paints area; line extensionos of existing
products to target lower income market segments both in rural and urban areas;
expansions of production capacity and continuous modernisation to keep pace with the
growing demand; and diversification in to the unrelated but synergistic area of ceramics.

All these strategies are part of what the company's top management terms "harnessing our
full potential", or the challenges that lie ahead. They are also aimed at retaining
leadership in a recession-free industry over the next few years.

APIL is the leader in the entire industry, comprising both organised as well as
unorganised players, with a market share of about 19 per cent. The company is confident
of the fact that its share of industry sales is twice as much as that of its nearest
competitor, Goodlass Nerolac. APIL also dwarfs the others in size, its net sales nearly
twice that of Goodlass Nerolac, well over twice that of third-placed Berger Paints, and
nearly four times that of fourth-placed Jenson and Nicholson (see Exhibit-I).

It is only wary of the expanding unorganised sector which seems to be eating up the share
of firms in the organised sector. Nevertheless, given the multiplicity of shades it is
capable of, APIL reckons it can look forward to a compound growth in its market share.

Exhibit I

How They Compare

(Figures in Rs. crore for 1993 - 94)

Net Profit/Sales
Company Net sale Net Profit
(%)
Asian Paints 401.96 25.62 6.36
Goodlass Nerolac 205.88 8.05 3.91
Berger Paints 174.95 3.24 1.85
Jenson & Nicholson 110.33 1.97 1.72
Garware Paints* 106 2.57 2.33
**
Shalimar Paints 102.59 1.60 1.56
Bombay Paints** 37.81 0.03 0.08

* 18 months to September 1993

**12 months to March 1993

But though the good times are back, the company is not content to sit back and relax. The
last three years, during which the paints industry went through a trough, saw APIL taking
a beating (though it remained the market leader all through), with its paints division
showing a negative growth of 3.5 per cent in terms of volume.

With the rupee having been progressively devalued during the years 1989-92, and with
high rates of inflation also rampant over this period, excise duties and other levies too
exerted upward pressure on paint prices, and this served to depress demand. An
additional complication, reinforcing this trend, was created by the difference in the
selling prices of paints made by the organised and unorganised sectors.

The first signs of recovery came with the Union Budget of 1993 which cut exercise and
custom duties, Excise duties were reduced to 30 per cent and customs duties were cut
from 85 to 65 per cent- This provided a respite to the industry by facilitating a rolling
back of prices, and it began to grow at about 2 per cent a year. In spite of intermittent
social disturbances in 1993, the industry gradually responded and so did the demand for
its products. Simultaneously, the automobile industry, which is a major user industry for
paints, also began to emerge from the two-year recession.

A gradual revival of the industry brought along a new threat for the seven major players
from the organised segment. Uneven prices during the recession years had the
unorganised competitors grabbing at a significant chunk of the market.

Budget concessions brought relief to the organised sector, but its constituents also found
themselves having to compete with an unorganised sector that had grown to become a
significant threat, even as the prospect of competition from imports began to worry the
organised sector.

APIL'S largest new venture will be a diversification into ceramics, though the project is
still at the planning stage. The decision to enter a new field is fuelled by the
management's perception that the ceramics industry has tremendous potential for growth.

Even though the company has no experience in the production and technology aspects of
ceramic tiles manufacture, it has opted for ceramics because the marketing will involve
utilisation of its existing distribution network for paints. The rationale is that since paints
and ceramics are both building materials, APIL'S existing customer base (which can
serve as a ready-made market) will be targeted for its ceramics products.
"With our extensive distriution network and stocking points, we can reach even the
remote markets. So marketing ceramics is not likely to be a problem," says Choksey. The
plan is to penetrate ihe market as quickly as possible, and grab a substantial chunk of
industry sales. The company will initially start with ceramic tiles, but these is no plan to
restrict itself to any specific market segment.

The project involves a Rs. 70 crore initial investment in the first phase, which involves
installation of a capacity of 23,000 tonnes per year. This will be followed in a couple of
years by the second phase, which will see an increase in the capacity to 50,000 tonnes.

The new project is scheduled for completion by the end of 1996, and it will, in all
probability, be located in Gujarat. This is because any location in that state will have the
advantage of proximity to the raw material supplying areas in Gujarat and Rajasthan.
APIL is currently negotiating with foreign collaborators for the technology, which will
have to be imported. The technology will also have to be adapted to Indian conditions.

While putting a few eggs in a new basket to ensure that fluctuating fortunes in the paint
industry do not have the effect of hurting the company's bottomline yet again, APIL is not
ignoring its bread-and-butter buslness - that of paints. Over the past year, a variety of new
brands have been added to its product range. The company has made an attempt to extend
its marketing and distribution beyond the country's major towns, to which its activities
were hitherto confined.

'Utsav', an economically priced brand, was launched last year and is targeted at small
households with limited budgets. This project concentrated mainly on consumers in Tamil
Nadu, Maharashtra and Gujarat, thus widening the accessibility of its products to all
consumer levels.

General Manager Mr. P.M. Murthy says that "the degree of penetration concentrates on
how economical it is to do business." He says that though this new product has performed
favourably, it has not contributed much to the profits of the year. "Of course, it promises
to be a very good and attractive segment for future business," he adds, when asked about
its future growth and profit potential.

Other new products also include powder paints to be used for both auto and non-auto
appliances. There are other products like wood finishings (Touch-wood) that takes care of
refinishings on furniture.

To strengthen its industrial product base, APIL has collaborated with PPG industries, an
American firm, and thus enjoys the use of cathode electro deposition primer (CED). The
company has concluded a tie-up with Nippon Paints for original equipment paint
products and with Sigma Coatings of Holland for corrosion coatings. The technology that
has been brought home as a result of these ventures is modified at the company's plant at
Bhandup, so as to make it suitable for the Indian climate.
With a better product range on offer now, APIL is just waiting for a greater awareness of
industrial paint applications to develop in the Indian market; the presumption is that the
demand for this particular product is still latent. For its decorative paints, the company
has gone in for differential pricing to encourage all segments of the market.

The company is intent on a continuous modernisation and upgradation of its technology

and its assets, so as to keep in tune with the changing requirements of the marketplace. In
addition, it is also working on plans to increase production capacity owr the next few
years.

Besides the activity on the domestic front, APIL is increasing its overseas presence as
well. One of the few indian companies with overseas subsidiaries in the South-Pacific
region, APIL is now setting up a new subsidiary in Australia. Its existing ventures abroad
too have reported healthy results : Asian Paints (South Pacific) has registered a 12 per
cent growth, Asian Paints (Tonga) grew at a rate of five per cent, Asian Paints (Solomon
Islands) at over 10 per cent and Asian Paints (Nepal) at over 18 per cent.

With a new subsidiary at Vanuatu (New Hebrides) and a joint venture unit in Townsville
(Australia), APIL has established at least a foothold in the international markets.

When asked about the threats facing the company, Choksey chuckles and says he prefers
to call them challenges. "We need to meet the demands of this growing organisation- of
our workforce, our technology and our assets. A major point to be tackled is to be able to
meet the growing demand for our product and to create a greater awareness for our newer
products," he says.

Over the first few months of the current financial year, sales volume has been growing at
a rate of 14 per cent, well above the industry average. With the recession firmly behind it
and government levies no longer inflating its prices, the paint industry seems to be on an
uptrend. But the APIL management has its work cut out for it : it will not merely have to
gear up to meet the burgeoning demand, but will also have to work hard at retaining and
then increasing its market share.

Questions :

(a) What corporate goal has the compary adopted for the next few years and with what
strategies does the company propose to realise the above goal ?

(b) What threats is the company facing or/and might face in future ? What has it done
and/or what could it further do to safeguard itself from threat(s)?

(c) Evaluate the new strategies of Asian Paints (India) Limited. particularly its proposed
foray into ceramics.

(d) What action plans has the company proposed to strengthen its product base ?
(e) Classify all the strategic plans or proposed strategic actions of the company for
achieving growth against suitable headings, e.g., Diversification, Joint Ventures, etc.,

MS2 MANAGEMENT OF HUMAN RESOURCES

Time: 3 hours
Maximum Marks: 100
(Weightage 70%)

Note: (i) There are two Sections A and B.

(ii) Attempt any three questions from Section A. All questions carry 20 marks each.
(iii) Section B is compulsary and carries 40 marks.

December 2005

SECTION A

(Set I)

1. Define personnel management. Briefly discuss the major functions and operations of
personnel management. (20)

2. Explain the purpose and types of interview in the organizational context, and discuss
their limitations. (20)

3. Describe any twro methods of performance appraisal. Compare their advantages and
disadvantages. (20)

4. Briefly outline the features of a grievance handling procedure and the steps involved in
it. Cite a suitable case study to support your answer. (20)

5. Write short notes on any three of the following :

(a) Induction
(b) Evaluation of training programme
(c) Maslow's need hierarchy theory
(d) Principles of salary formulation
(e) Suspension and dismissal

SECTION A

(Set II)

1. Trace the evolution of Human Resource Management, Discuss the strategic and
political perspectives of HRM. (20)
2. Why is human resource planning important ? Discuss the process of human resource
planning. (20)

3. Discuss the competency approach to job analysis. Briefly describe any two methods of
competency mapping. (20)

4. Discuss training need evaluation and describe various training evaluation techniques.
(20)

5. Write short notes on any three of the following : (20)

(a) Performance coaching
(b) Human Resource Information System
(c) Fringe benefits
(d) Industrial democracy
(e) Outsourcing

SECTION B

6. Please read the following two cases and answer the questions given at the end of each.
(40)

(A) Case Study

Mr. Ramchandran is the Chief Executive of ABC Limited Recently, it was decided by the
Board of Directors that it would be profitable for the corporation to set up a separate
Marketing Department. Mr. Ramchandran has been directed to pick up a person who he
feels is capable of heading the department. and then putting this person in charge of
getting the department on its feet. After considering a number of good men Mr.
Ramchandran has narrowed the field down to two possible choices : Rajesh Mehta and
Pramod Kumar.

Rajesh Mehta has a good track record with the company. He was hired eight years ago,
and through the years he has shown a good deal of drive and initiative in all of his
endeavours. He is an aggressive young man, and has received thenickname of 'go-getter'
in his department. Although Mehta seems to be more concerned at times with ends rather
than means, 'he is very efficient and is considered a good leader by those who work under
hm. As one worker stated. "Although he can get rough with you at times, you always
know where you stand with him, and when you have done a good job, he lets you know
it." Mehta is also credited with accepting full responsibility, in all cases, and making
quick decisions when action is called for.

Pramod Kumar has been with the company for eleven years. He is well liked by all in his
department, and his work is ,first rate. Kumar's leadership style differs from Mehta's in
that Kumar is not as aggressive and quick to act as Mehta. Before Kumar makes a
decision, he generally consults others who he feels can contribute further information on
a given subject. This often includes those who work under him. Those who work under
Kumar consider him a good leader, and state that the atmosphere of participation
produced by Kumar really encourages their utmost individual output while on the job.
This can be seen by the production increase which soon occurred when Kumar became
the head of his work-force.

Questions :

(a) If you were Mr Ramchandran whom would you select as the head of the Marketing
Deptt. ? why ?

(b) Will you give any weightage to the length of service in the organisation ? Why ?

(B) Case Study

Raghav Chemicals Ltd. has planned for computerisation of nearly 50 per cent of the
production operations and control. It has taken care of all resources in the
computerisation plan including human resources. The present inventory of
humanresources and future requirements of the production department were specified as
given hereunder.

Requirements after
Category of Human Resources Present Inventory Surplus
Computerisation
Chemical engineers
15 8 7
(Operation)
Chemical engineers
10 6 4
(Maintenance and control)
Mechanical engineers
2 2 0
(Maintenance)
Supervisors 10 2 8
Operators 30 10 20
Quality controllers 5 1 4
72 29 43

The human resource planners suggested the redeployment of chemical engineers in their
newly started sister concern, i.e., Laxman Paper Mills Ltd., and retrench surplus of
employees of all other categories. They also recommended to themanagement that there
was no need for further recruitment or for ary other action plan.

The computerisation was over by the end of 1998. When the management wanted to start
the production on the newly computerised process, it was shocked to note that not many
employees in the production department were suitable to the new jobs and the
information supplied by the human resource planners in this regard did not match with
the reality.
Questions :

(a) ldentify the problem in this case.

(b) To what extent are the human resource planners responsible for the present state of
affairs ?

(c) What should the management do now to deal with the problem taking into account
both the short-term and long term perspective ?

June, 2005

MS-58 : MANAGEMENT OF R & D AND INNOVATION

Time : 3 hours
Maximum Marks : 100
(Weightage 70%)

Note : Attempt all quesfions. All questions carry equal marks.

1. What are the reasons for technological inertia, preventing implementation of new
technologies ? Give some examples because of which suspicions about newer
technologies are rampant.
OR
How do market consderations affect product life cycles and innovations ? How can
designers help in improving the competitte abilities of the organisation ?

2. "The objective of the corporate function of R&D is to provide strategic managerial

inputs to strengthen the process of technology development, innovation and
entrepreneurship in an organisation." How is this achieved ?
OR
What are the different types of R&D organisations ? What kind of R&D organisations are
found in India ? Also, discuss the functions of R&D organisations.

3. Discuss the significance of team work in research and development. What is the cross-
functional core team concept ? Also discuss the lesssons that can be learnt from US
companies in adopting the cross-functional team approach in product development.
OR
What factors could possibly cause the termination of an R&D project ? What could be the
possible barriers in project termination and how could they be overcome ?

4. In the context of national R&D infrastructure and institutional framework, write notes
on the following :

(a) Department of Atomic Energy (DAE)

(b) Department of Scientific and Industrial Research (DSIR)
(c) Indian Council of Agricultural Research (ICAR)
(d) Centre for Development of Telematic (C-DOT)

Describe the salient features of technolog policy in the following countries :

(i) Japan
(ii) USA

5. What are Patents and Patentability ? Highlight some Importanf features of patents and
the procedure for award of patents.
OR
What is GATS ? How can it facilitate access to technology and technical information for
developing countries?

June, 2005

MS-57: MAINTENANCE MANAGEMENT

Time : 3 hours
Maximum Marks : 100
(Weightage 70%)

Note : This question paper contains seven questions. All questions carry equal marks.
Attempt any five questions.

1. What do you understand by Fixed time maintenance/Preventive periodic maintenance?

Discuss about commonly used preventive maintenance tasks.

2. Highlight the importance of maintenance costing. What are the steps involved in
costing of maintenance department ? Also discuss the classification of maintenance costs
according to their nattue, function and other characteristics.

3. "The liberalized economy is forcing Indian companies to establish Total Quality

Management Systems. It is a struggle, which has just begun and Indian companies will
continue to do so Just io be in the race - lest they perish. Quality will be just a qualifier,
not a competitive advantage any more". Do you agree ? Why ? Discuss it with respect to
maintenance perspective.

4. What do you understand by a Non-linear Hazard model ? Discuss the Weibull

distribution and its use in reliability estimation and failure diagnosis. Also highlight the
relationship between and the possible causes of failure.

5. What are the benefits of implementing Reliability Centred Maintenance (RCM) ?

Discuss the misconceptions about RCM and pitfalls in implementing RCM.
6. What are the key result areas that can be covered in a maintenance audit ? Give some
indices for maintenance materials management performance. What is the main difference
of auditing result areas. compared to auditing management processes ?

7. Write short notes on any four of the following:

(a) Design-out maintenance

(b) Six stages of life cycle of spare parts
(c) Elements of maintainability
(d) The "Bath-tub" curve
(e) Determination of optimal preventive replacement age

June, 2005

MS-53 : PRODUCTION/OPERATIONS MANAGEMENT

Time: 3 hours
Maximum Marks: 100

Note :Section A has five questions carrying 20 marks each. Attempt any three questions
from Section A. Section B is compulsory and carries 40 marks.

SECTION A

1. (a) Explain what you understand by the term "Total Quality Management", paying
particular attention to the following terms :
quality, supplier-customer interfaces, and process.

(b) Define Productivity. List some factors that can affect productivity and some ways in
which productivity can be improved.

2. (a) Give two examples (with supporting details) of the impact of technology in product
and service design, in the context of service and manufacturing firms.

(b) A firm uses simple exponential smoothing with = 0.1 to forecast demand. The
forecast for the first week of February was 500 units, whereas actual demand turned out
to be 450 units.

(i) Forecast the demand for the second week of February.

(ii) Assume that the actual demand during the second week of February turned out to be
505 units. Forecast the demand for the third week of February.

3. (a) Bloomsday Outfitters produces T-shirts for road races. They need to acquire some
new stamping machines to produce 30,000 good T-shirts per month. Their plant operates
200 hours per month, but the new machines will be used for T-shirts only 60 percent of
the time and the output usually includes 5 percent that are "seconds" and unusable. The
stamping operation takes 1 minute per T-shirt, and the stamping machines are expected to
have 90 percent efficiency considering adjustments, changeover of patterns, and
unavoidable downtime. How many stamping machines are required ?

(b) Give an example of a business that would use a push and one that would use a pull
operations control system. Explain your choice and briefly describe how the system
works.

4. (a) What factors should be taken into account when taking make-or-buy decisions ?
Illustrate your answer with examples from both a manufacturing and service organisation.

(b) What are the two major uncertainties encountered in managing inventories and what
is usually done to compensate for those uncertainties?

5. (a) What are the various methods of judgemental forecasting ? Comment on possible
errors that are associated with judgemental forecasting.

(b) A time study of a restaurant activity yielded a cycle time of 2.00 minutes, and the
waitress was rated at PR = 96 percent. The restaurant chain has a 20 percent allowance
factor, Find the standard time.

SECTION B

6. (a) What are the advantages of having a company-wide data-bank ? Show how
different functions e.g. cost accounting, sales, inventory, manufacturing can be integrated
with a data-bank.

(b) A contractor has to supply 10,000 bearings per day to an automobile manufacturer. He
finds that, when he starts a production run, he can produce 25,000 bearings per day. The
cost of holding a bearing in stock for one year is Rs. 2 and the set-up cost of a production
run is Rs. 1,800. How frequently should production runs be made ? (Assume 300
working days in a gear)

7. Write short notes on any five of the following :

(a) Cellular manufacturing

(b) ISO 9000
(c) Fish-bone Diagram
(d) AGVS
(e) Cross Impact Matrix
(f) Benchmarking
(g) CIM
(h) Job Enlargement
MS-54 : MANAGEMENT INFORMATION SYSTEMS

Time: 3 hours

Maximum Marks: 100

(Weightage 70%)

Note : Answer ony four questions. All questions carry equal marks.

June, 2007

1. (a) Discuss about the emerging 'standards' for DBMS.

(b) Discuss in detail the role played by SQL for managing corporate data. (12+13=25)

2. (a) Elaborate the concept of 'Taxonomy of Data Structure'.

(b) Discuss the legal dimension of Computerization. (12+13=25)

3. (a) Explain NOLAN's stage growth model for MIS. Discuss its relevance in today's
organisation.

(b) Discuss the need and evaluation procedure for MIS in any organisation. (12+13=25)

4. (a) What are the typical functional information subsystems in an organisation? Explain
with an example from Petroleum Refinery.

(b) What are the various system analysis tools and why do we need more than one tool at
a time? (12+13=25)

5 . (a) What the characteristics of Local Are Networks? Describe the various Network
Topologies.

(b) Discuss the main functions of data communication software. (12+13=25)

6. (a) Explain the expert system. How do they help in decision-making ? Illustrate it with
the help of an example.

(b) Describe the various applications to which networks can be put. (12+13=25)

June, 2005

MS51 : OPERATIONS RESEARCH

Time: 3 hours
Maximum Marks: 100
(Weightage 70%)

Note : Answer any four questions

1 . (a) Express the linear Programming Problem in its general form with Matrix Notation.
10+15=25

(b) Solve the following LP - problem by SIMPLEX Method.

Minimize z = x1 - 3x2 + 2x3

subject to

3x1 - x2 + 3x3 7

- 2x1 + 4x2 12

- 4x1 + 3x2 + 5x3 10

x1 ; x2 ; and x3 0

2. Find the optimum solution for the following transportation problem. 25

From \ To A B C Total
I 1* 2 3 50
II 3 2 1 80
III 4 5 6 75
IV 3 1 2 95
Total 120 80 100

*This is unit transportation cost.

3. (a) Explain the difference between pure strategy and rnixed strategy.

(b) In a game of matching coins with two players, suppose A wins one unit of value when
there are two heads, wins nothing when there are two tails and loses 1/2 unit of value
when there is one head and one tail. Determine PAY - OFF matrix, the best strategy for
each player and the value of the game to A. 10+15=25

4. (a) Discuss the costs associated with queuing system. Also explain the concept of
optimum servicing rate and optimum cost.
(b) In a railway marshalling yard, goods trains arrive at a rate of 30 trains / day.
Assuming that inter - arrival time follows exponential distribution and the service time
distribution is also exponential with average 36 minutes, calculate the following :

(i) Average number of trains in the yard.

(ii) Probability of queue exceeding 10.

(iii) Utilization rate of the yard. 10+15=25

5. (a) Write down the general form of Integer Programming Problem as LP.

(b) Explain the branch and bound method of solving Integer Programming Problem.

(c) Discuss the effect of "ROUNDING - OFF" a continuous optimal solution of an LP -

problem to obtain an integer solution. 9+9+7=25

6. (a) Discuss the various Inventory Control systems.

(b) A manufacturer requires 15000 units of a part annually for assembly. Manufacturer
can produce this at the rate of 100 per day. Set - up cost for each production run is Rs.
24 /-.To hold one unit of this part, inventory cost of manufacturer is Rs. 5 /- for a year:
Assume 250 working days per year. Find out the economic batch quantity and economic
run length. 10+15=25

7 . Write short notes on any two of the following : 25

(i) Goal Programming

(ii) Non - Linear Programming

(iii) Selective Inventory Control

(iv) Simulation

June, 2005

MS52 : PROJECT MANAGEMENT

Time: 3 hours
Maximum Marks: 100
(Weightage 70%)

Note : (i) Attempt any three questions from Section A, each carrying 20 marks.
(ii) Section B is compulsory and carries 40 marks.
SECTION A

1. Detailed Project Report (DPR) forms the foundation on which the entire supershucture
of the project is built - "If it is weak, poject cannot weather turbulent times ahead." Bring
out the do's and don'ts of a good DPR.

2. Explain the following methods of forecasting demand :

(a) Exponential Smoothing
(b) Adaptive Exponential Smoothing
(c) Exponential Smoothing with trend and seasonal data
(d) Double Exponential Smoothing

3. Why do we need different types of cost estimates in projects ? Discuss five such
estimates. On what factors is their level or degree of accuracy dependent ?

4. Why is a Project Management Information System of immense importance in a

project ? Discuss the objectives of Project Management Information System. In designing
a Project Management Information System what parameters are to be spelt out clearly ?

5. Explain the importance of "Project Review" in the context of control of a project. What
are the elements of controls in projects ? How are cybernetics concepts applied to project
management?

SECTION B

6. The activities, duration and direct activity costs are given below. The indirect cost is
Rs. 3000 per week. Starting from the normal duration obtain the crash cost and duration
of the project.

Time in Weeks Cost Cost to Expedite

Activity per week
Normal Crash Normal Crash (Cost slope)
1-2 2 2 3000 3000 ---
2-3 4 3 4000 5000 1000
2-6 8 8 6000 6000 ----
3-4 3 2 2000 3500 1500
3-5 2 2 2000 2000 ----
4-6 4 3 4000 5000 1000
5-6 3 3 4000 4000 ----
6-7 8 5 8000 12000 1333

MS-44 : SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

Time : 3 hours
Maximum Marks : 100
(Weightage 70%)

Note : Attempt any five questions. All questions carry equal marks. Present value table
are to be provided if asked for.

1. "No Investment Decisions are made wiihout calculating risk." Do you agree ? As an
Investment Manager of a firm, discuss the various steps involved in the investment
decision making process.

2. (a) What are the various methods of floating the new issue ? Discuss the roles played
by the Underwriter and the Bankers to the issue.

(b) Vamsi is considering the purchase of a bond currently selling at Rs. 878.50. The bond
has four years to maturity, face value of Rs. 1,000 and 8% coupon rate. The next annual
interest payment is due after one year from today. The required rate of return is 10%.

(i) Calculate the intrinsic value (prerent value) of the bond. Should Vamsi buy the bond ?
(ii) Calculate the yield to maturig of the bond.

3. Explain fully the role played by the SEBI in the securities market as a regulator and as
a developer of the capital market.

4. What are the major criticisms of the technical analysis ? Do the technical analysis and
the fundamental analysis give complementary information about securities for making
informal decisions ? Explain.

5. (a) Discuss the Markowitz Theory of Portfolio Selection. How does Markowitz Theory
help in planning an investor's portfolio ?

(b) An aggressive Mutul Fund promises an expected rate of retum of 18% with a standard
deviation of 22%. On the other hand, a conservative mutual fund promises an expected
rate of return of 16% and fluctuations of 13%.

(i) In which of the funds would you like to invest ?

(ii) Would you like io invest in both the funds ?
(iii) If you can borrow money from you provident fund at an opportunity cost of 15%, in
which fund would you invest your money ?

6. Explain the concept of 'Mutual Fund'. What factors should be considered before
selecting a Mutual Fund ? Discuss the present state of the Muiual Funds in India and
outline the risks involved in investing in Mutual Funds.

7. Write short notes on any four of the following :

(a) Dow theory
(b) Odd lot trading
(c) Point and Figure charts
(d) Serial bond
(e) Superfluous Diversification
(f) Market Risk

MS-43 : MANAGEMENT CONTROL SYSTEMS

Time : 3 hours
Maximum Marks : 100
(Weightage 70%)

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

December 2007

1. Explain the various components of control systems.

2. Explain the following models and highlight their usefulness in formulating business
unit strategies :
(a) The BCG Model
(b) General Electric (GE) Planning Model

3. Explain the boundary conditions in the context of profit cenlres. Also explain the
process of performance measurement of profit centres.

4. What do yo understand by Investment Centres? Expiain the methcds used for

mneasuring investment centre performance.

5. What do you mean by budgetary control system? Explain the process of budgetary
control In an organisation.

6. Describe the criteria on which the incentives of business unit managers are decided.

7. What are the various special control issues faced by Multi National Corporations?

8. What are the characteristics of a project organization? Explain how do these

characteristics affect the control system design of a project.

December, 2005

MS11 (S) : Old: CORPORATE POLICIES AND PRACTICES

Revised: STRATEGIC MANAGEMENT
Time: 3 hours
Maximum Marks: 100
(Weightage 70%)

Note : There are two Sections A and B. Section A has two sets. Set 1 is meant for the
students who have registered for MS-11 : Corporote Policies and Practices prior to
January 2005 i.e. upto July 2004. Set 2 is meant for the students who have registered for
MS-11 : Strategic Management from January 2005 onwards. Attempt any three questions
from Section A. All questions carry 20 marks each, Section B is compulsory for all, and
carries 40 marks.

SECTION A

(Pre-Revised Course)

(Corporate Policies and Practices)

1. Describe the role of BODs in the overall performance of the company. Discuss various
measures to improve the effectiveness of BODs. (20)

2. What do you understand by "Mega" environment ? Discuss the different constituents of

the Mega environment. (20)

3. Explain Porter's framework to analyse industry structure. How does it help in

determining the attractiveness of an industry ? (20)

4. Distinguish between related and unrelated diversification. Explain with the help of
examples. (20)

5. What are the causes of corporate decline ? Briefly discuss strategies to arrest the
decline. (20)

SECTION B

(Revised Course)

(Strategic Management)

1. Explain the various steps involved in Strategic Management process in a single

business firm. (20)

2. Explain the following : (20)

(a) Types of resources
(b) Strategic importance of resources
3. Discuss the importance of differentiation strategy in the present competitive
environment. Explain taking into consideration its advantages and disadvantages. (20)

4. Every strategic alliance incurs certain costs and comes with a set of risks. Explain any
five costs/risk of entering into a strategic alliance. (20)

5. Corporate culture plays an important role in the success of an organization. Explain

giving suitable example. (20)

SECTION C

6. Read the case carefully, analyze it and answer the questions that follow : (40)

NEECO LIMITED

At the end of the recent five-year plan, it was estimated that there would be a
considerable demand in the manufacturing capacity of power transformers in the country.
It was further projected that the gap between demand and the manufacturing capacity
would be even larger in the subsequent plans. Thus, anticipating the country's demand in
future, Neeco Limited decided to set up a new unit for manufacturing transformers. This
was in addition to the manufacturing capacity already built up at one of the existing
factories.

Formal Planning Process

Formal planning was introduced in the very first year of the commencement of activities
at the new unit. The planning process at Neeco Limited included the setting up of broad
objectives and the preparation of the three year forecast. In a letter addressed to
departmental heads, the General Manager, Mr. S.K. Patel said, "The time has come to put
down on paper the objectives and goals of our organisation and to develop a proper
framework whereby we can take a more systematic look at the future we are heading for.
This, I believe, can be achieved by involvement and cooperation of all the departmental
heads in putting into practice a culture of planning."

The responsibility for developing a three year plan was entrusted to the planning cell,
which reported directly to the General Manager. There was a separate controller's office
which looked after budget preparation and the subsequent monitoring of actual
performance.

Goal Setting Process

Planning began each year in the month of April with the establishment of goals by the top
management. The top management group consisted of the General Manager and his
various functional heads. The goals were set both in qualitative as well as quantitative
terms. The quantitative goals were in terms of growth in sales and profits. Commenting
on the quantitative goals, Mr. Patel observed that : "Profit is the primary goal".
The planning cell, after collecting all the information, consolidated and integrated the
data and prepared operating results and cash flow projections for the three year period.

Exhibit-I

NEECO LIMITED

(a) A Temporal Overview of the planning process

Date Steps in Planning

Planning call sends relevant
formats to departmental
1st Week of April
heads, with detailed
explanations.
By the fourth week, the various
4th Week of April departments send the formats
back to the planning cell, duly filled.
Planning officer compiles all
1st Week of May the data and puts it in an
integrated form
The first draft of the plan is
discussed in a management
group meeting, wherein
several suggestions emerge
2nd Week of May
and the draft is thoroughly
revised by resolving the
conflicting objectives of
various departments.
The final draft of the plan is
1st Week of June ready and is sent to corporate
headquarters.

(b) Responsibility for Plan Preparation

Segment of the Plan Responsibility

Sale Plan (Order Book Position) Manager (Marketing)
Production Plan Manager (Production)
Materials Plan Materials Manager
Manpower Plan Personnel Manager
Township Development Plan Manager (Projects)
Integration of Various Planning Officer
Segments of Plan and
Final Plan Document

Before finalising the plans as prepared by the various functional/department heads, a

detailed discussion was held. During these discussions, various departmental heads
explained the basis of their respective plans. The final plan was arrived at after resolving
the conflicting objectives of various departments.

The Planning-Budgeting Linkage

Immediately after the plan was approved by the Management Group, the process of
preparing a detailed budget for the next year was initiated. The three year plan set out the
broad objectives for the first year and projections for the next two years. A detailed
exercise had already been conducted in preparing the broad objectives, which served as a
basis for the preparation of a detailed budget for the ensuing year. Thus the first year of
the plan document, with necessary modifications, became the budget for the next year.
The three year plan document and the budget were, therefore, closely inter-related. It was
said that the preparation of a three year plan was, in a way, a process of creating an
organisational climate for a rigorous and time-consuming Process of budgeting.

Reactions of Executives

A few executives from the production department had the following comments to make
with regard to the format plan : "The forms are time-consuming and tiresome. Here,
when we are already overburdened with our daily routine, who has got time to fill in
figures in these lengthy forms. We are more worried about day-to-day problems, rather
than about the 3rd year from now".

Executives from other departments commented : "Planning has led to greater

participation in the management process and thus, has created a culture of management
by participation. The involvement of all of us in the planning process has given us an
opportunity to take a wider perspective and has broadened our horizon. Some of us now
understand each others problems in a better way. This has paved the way for better
mutual coordination."

"Some of us now feel more confident of taking up higher responsibilities in future.

Planning has helped to groom leaders. lt has turned us from technocrats to managers and
has prevented us from becoming bureaucrats.''

"Figures by themselves are not very important. Figures without understanding the prccess
of how to obtain them, are irrelevant. What is important is the process of planning, rather
than filling the figures in prescribed formats. This process had led to greater management
participation in shaping the future. Planning has become a frame of mind and a way of
thinking. It has become part of our management process,"

Questions :
(a) Evaluate the formal planning process at Neeco Limited.

(b) Critically examine the reactions of the various executives as stated in the case.

(c) Discuss the importance of a three year plan.

MS11 : Old: CORPORATE POLICIES AND PRACTICES

Revised: STRATEGIC MANAGEMENT

Time: 3 hours
Maximum Marks: 100
(Weightage 70%)

Note : There are two Sections A and B. Section A has two sets. Set 1 is meant for the
students who have registered for MS-11 : Corporote Policies and Practices prior to
January 2005 i.e. upto July 2004. Set 2 is meant for the students who have registered for
MS-11 : Strategic Management from January 2005 onwards. Attempt any three questions
from Section A. All questions carry 20 marks each, Section B is compulsory for all, and
carries 40 marks.

SECTION A

Set I (Old Course)

(Corporate Policies and Practices)

1. 'Corporate planning may be viewed as an organisational process that results in the

development of the organisation's purposes, missions, objectives, goals, strategies,
policies and detailed action plans to achieve the objectives.' Explain the statement. What
benefits would ensure to an organisation using corporate planning ? (20)

2. What would be your role and functions if you were the CEO of a business organization
operating in an environment of intense competition ? (20)

3. (a) Distinguish between the Opportunity and Threat matrices.

(b) Explain Shell's Directional Policy Matrix. (20)

4. (a) What do you understand by Break even analysis ? Explain the concept with the help
of an example.

(b) Briefly explain 'Product Life Cycle Approach'. (20)

5. What are the usual motives for mergers and acquisitions? What factor would make
mergers and acquisitions successfu ? Give relevant examples. (20)
SECTION A

Set 2 (Revised Course)

(Strategic Management)

1. 'Strategy includes the determination and evaluation of alternative paths to an already

established mission or objective and eventually, choice of the alternatives to be adopted.'
Explain the statement underlining the process of strategy formulation. (20)

2. Technological factors represent major opportunities and threats, which must be taken
into account while formulating strategies. Discuss. How can a firm build a sustainable
technology based competitive advantage ? (20)

3. "The low-cost leadership strategy at times enables the firrn to defend itself against each
of five competitive forces." Explain. (20)

4. Briefly explain the factors which contribute towards the success of a strategic alliance.
Illustrate with a recent example of strategic alliance. (20)

5. Explain any three methods/techniques used in strategic control systems, giving

examples. (20)

SECTION B

6. Read the case, analyze it and answer the questions that follow : (40)

Rupbani Beverage Limited

Rupbani Beverage Limited entered the Indian wine industry in 1975 by acquiring the
Mastana Wine Company of Shimla and two other smaller wine companies at Kalka for
Rs. 50 lakh. Despite hostility expressed by other wine makers and predictions that
Rupbani would very soon fail as other outsiders such as Parminder Wine Company had,
the entry succeeded. Rupbani Limited performed the unheard-of feat of establishing a
volume of 30 lakh cases wtihin two years and taking the market share away from
premium brands such as the National Wine Company of Bombay, Pearl Drink Limited of
Pune and Syndicate Cola Limited of Madras.

Rupbani advertised heavily and incurred Rs. 10 lakh in one year and standardised the
taste of its wines with considerabie success. It also invesited Rs. 48 lakh in a large, new
winery at Ahmedabad. A Rupbani Executive said, "By 1995, consumption of wine in
lndia will be a litre per capita, compared with half a litre today."

The industry reacted to Rupbani's presence by doubling and tripling advertising

expenditure. ABC and Company began a costly campaign to market premium and varied
wines while reducing marketing emphasis on its cheap wines such as Nahan Drinks and
the Gola Beverage. ABC maintained its 25 per cent market share but had to resort to
some heavy price discounting to do so.

In 1982 Pearl Drinks formed a special wine unit to combine efforts for all its brands. Mr.
Sailesh Kumar, former Vice-President of the National Wine Company, had directed a
project to coordinate Pearl's world-wide wine business and develop a world wide
strategy. The new unit was, in fact, a result of his work.

In 1983, wine consumption changed from growth at a rate of 5 per cent to no growth. The
government also lifted the ban on imports of wine. This presented an even greater
challenge because imported wines were cheaper as well as superior in quality.

In 1984. Mr. Ranganathan took over as Managing Director of Rupbani. He reviewed the
recent performance of the company and its competitive position. He noted that the
company was losing its hold over the market and it was not geittng the return as
expected. He also found that the company's performance in the syrup business was
excellent. He, therefore, thought of selling out the wine business to Pearl Drinks, He
convened an executive meeting and apprised the executives of his proposal. He also
informed them that Pearl Drinks had offered the company to recapture its investment in
the wine business which was about Rs. one crore. Mr. Arun Mehta, General Manager,
observed that Rupbani was in and out in the past six years and has joined different
organisatons in trying the wine business. The Finance Manager, Mr. Subhash Ghai said,
"The return on assets in the wine business is not the 30 to 35 per cent which Rupbani is
used to getting in the syrup business. Gaining share and trying to compete with ABC and
Company left Rupbani with, eventually, the number two position in the wine industry
with profits of Rs. 60 lakh on Rs. 220 lakh in sales. The stockholders wanted immediate
return and hence, the company could not afford to make long-term investments necessary
to popularise the brands. Had they stayed for five rnore years, they would have been a
key leader in a large and profitable industry."

Pearl Drinks immediately went from the sixth position in the industry to a strong second
place with an 11 per cent market share. The Chairman of Pearl Drinks stated : "We
believe you can make money in this business in two ways -- remain a small boutique
winery or become large and achieve economies of scale."

Mr. Harish, Marketing Manager of Rupbani said, "it is no use selling out our business to
Pearl Drink and get back what we have invested. We can compete with our competitors
successfully and improve our market share if we manufacture wines of varying qualities
to suit the varied preferences and pockets of diverse sections of society. We should also
offer price discounts to attract the consumers. There should be wide publicity of our
brands throughout the country".

Questions :

(a) Perform SWOT analysis of Rupbani.

(b) In the light of opportunities and threats of Rupbani Beverage and its strengths and
weaknesses, what strategy should it formulate to improve its performance and strengthen
its competitive position ?

(c) Should Rupbani spend on advertising in line with its competitors ? Discuss.

(d) What other strategies would you suggest for Rupbani for increasing their share of the
market ?

MS3 : ECONOMIC AND SOCIAL ENVIRONMENT

December 2007

Time: 3 hours
Maximum Marks: 100
(Weightage 70%)

Note : (i) There are two Sections A and B.

(ii) Attempt ony three questions from Section A, carrying 20 marks each.
(iii) Section B is compulsary and carries 40 marks.

SECTION A

1. "The management movement in India has been relatively strong and distinct." Discuss
the statement giving examples.

2. Explain industrial sickness. What are the factors responsible for sickness in small scale
industry? What remedial measures would you suggest for tackling the problem?

3. Critically examine whether the regulatory and promotional policy framework is in

accordance with the following goals and objectives of the economy :

(a) To achieve full employment, and

(b) To reduce inequalities in income and wealth.

4. What is the role of external debt in the economic development of a country and what
are the implications of a growing external debt? What measures are needed to check the
growth of debt servicing burden?

5. Critically examine the Indian financial system in detail.

SECTION B

6. Comment on the following statements :

(a) Government involvement in Indian economy is a necessity.

(b) currently, consumers in India are conscious of their rights.

(c) Managers in the public sector are simirar to those in private sector; it is the work
culture which is the impediment to higher efficiency.

(d) Although business is an economic activity, economic environment of business cannot

be considered in isolation. It has to be' considered in line with other social, cultural and
technological factors.

(e) By keeping the doors open to multinational corporations, India is able to proceed
along the desired path of development.

7. Write short notes on any four :

(a) Social security

(b) Economic reforms and poverty

(c) Social responsibilities of business

(d) Mixed economy

(e) Economic growth

(f) Balance of payments

MS4 : Accounting and Finance for Managers

Time: 3 hours
Maximum Marks: 100
(Weightage 70%)

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

December 2007

1. (a) What do you understand by Accounting Standards? How do they differ from
Accounting Concepts? Why should the accounting practices be standardised?

(b) Why are the fixed assets shown at their book value rather than their market value,
even if the latter has appreciated significantly? Give reasons.

2. (a) How would Explain the you compute the cost of goods sold? two methods of
inventory valuation.
(b) What is depreciation and what is the rationale behind making a provision for
depreciation in the process of matchlng income and expenses?

3. What do you understand by Zero Base Budgeting? How does a Zero Base Budget
differ from a Flexible Budget? Discuss the steps involved in Zero Base Budgeting.

4. Distinguish between : (a) Accounting Rate of Return and Internal Rate of Return

(b) Profitability Index and Profitability Ratios

(c) Bonus Shares and Rights Shares

(d) Earnings yield and Dividend yield

5. A manufacturing company produces and sells products P; Q and R. It has an available

machine hour capacity of one lakh hours, interchangeable among the three products.
Presently the company produces and sells 20,000 units of P and 15,000 units each of Q
and R. The unit Selling Price of the three products P, Q and R is Rs. 25, Rs. 32 and Rs. 42
respectively. With this price structure and the aforesaid sales-mix, the company is
incurring loss. The total expenditure exclusive of fixed charjes (presently Rs. 5 per unit)
is Rs. 13.75 lakhs. The'unit cost ratio amongst the three products P, Q and R is 4 : 6 : 7.

Since the company desires to improve its profitability without changing its cost and price
structures, it has been considering-the following three mixes so as to be within its total
available capacity :

Products Mix I Mix II Mix III

P 25,000 20,000 30,000
Q 15,000 12,000 5,000
R 10,000 18,000 15,000

You are required to compute the quantum of loss now incurred and advise the most
profitable mix which could be considered by the company.

6. Comment upon the following statements giving appropriate reasons :

(a) Higher net profit margin higher rate of return

(b) EBIT-EPS analysis is an the capital structure. need not necessarily lead to investment.
important tool for designing

(c) Cost of retained earnings is lower than the cost of equity.

(d) Many reasons account for direct mdterial

7. 'The conventional break-even analysis is based on a number of assumptions.' Explain
and illustrate the concept of break-even analysis and justify the above statement.

8. The following information is available for XYZ Ltd. for three years.

Year 1 Year 2 Year 3

Gross Profit Ratio 36% 33 1/2% 30%
Stock turnover 20 times 25 times 14 times
Average Stock Rs. 38,400 Rs. 36,000 Rs. 70,000
Average debtors Rs.87,500 Rs.7,68,750 Rs.2,00,000
Income tax rate 50% 50% 50%
Net Profit ratio 6% 7% 12%
Maximum credit
period allowed 60 days 60 days 30 days
to customers

Prepare a statement of profits in comparative form for all the three years, and evaluate the
position of the company regarding profitability and liquidity.

MS1: MANAGEMENT FUNCTIONS AND BEHAVIOUR

Time: 3 hours
Maximum Marks: 100
(Weightage 70%)

Note : (i)There are two Sections A and B.

(ii) Attempt any three questions from Section A, each question carrying 20 marks.
(iii) Section B is compulsory and carries 40 marks.

SECTION A

1. Explain the concept of MBO. Describe its key features and critically analyse the extent
of feasibility and usefulness of MBO in the present day business scenario.

2. Briefly describev arious managerialp rocesses and explain major elements of any two
of them with suitable examples.

3. How do conflicts get generated in an organizational situation ? How does it impact the
group behaviour and functioning of the organization ? Explain with relevant examples.

4. What is differentiation ? How is it done in an organizational set-up ? Discuss briefly

with examples the basis of differentiation and its relationship with the choice of hucture.

5. Write short notes on any three of the following :

(a) Process of Organizational Change

(b) Group Formation

(c) Johari Window

(d) Managerial Values and Ethos

(e) Channels of communication

SECTION - B

6. (a) Read carefully the Case And answer the questions given at the end.

Fine Constructions was engaged in the fabrication of heavy structurals. The company had
six shops besides engineering, accounts, personnel, sales, and administrative departments.
It employed 7000 men. The chief executive of the company was the General Manager.

In one of the shops employing 1000 men, 900 tons of structurars were fabricated every
month. The day-to-day management of the shop was entrusted to the Manager, who was
assisted by the senior Foreman. The three main sections of the shop were preparation,
Marking, And finishing.

In the Marking and Finishing Sections, the work was supervised by two foremen each.
The Preparation Section was under the direct supervision of the Senior Foreman, who, in
addition, planned and coordinated the work of all the three sections.T he preparations
ection was responsible for the collection and classification of works orders, for reading
intricate machine And structural drawings, determination of priorities of execution orders,
checking bilts of materials, and processing raw materials for fabrication. This section had
200 men on the rolls.

In 1981, the shop started receiving heavy orders, and as the work-load increased
considerably, the Senior Foreman was unable To cope with it. On the Manager's
recommendation, the General Manager sanctioned two new posts of Foremen for the
Preparation Section. Two Progress Incharges attached to the Senior Foreman were thus
rendered surplus and their principal work, namely, reporting progress of work in the shop,
was transferred to the Production Planning Department. This action of the General
Manager had the concurrence of the Manager. The Incharges themselves were not
transferred to the Production Planning Department, as this had its own departmental men
to take care of this work. They continued on the rolls of the shop, awaiting orders for
transfer to vacancies of equivalent grade in other shops.

The minimum qualifications for the recently created posts of Foremen, prescribed by u
Joint Committee, were a diploma in engineering And five years' experience in structural
shop. The posts were advertised for in the organization but none of the applicants was
found suitable for appointment. The Incharges concerned, who were non-matriculates,
did not apply, as they did not possessth e prescribed qualifications. The posts were
therefore advertised in the press. Three outside candidates applied. Only one appeared for
the interview and he was not considered suitable for appointment.

The case of the two surplus Incharges did not come within the purview of the grievance
procedure in operation, in the company, as it involved a change in the minimum
quarifications prescribed for the post of Foreman. As, however, they were powerful
members of the Union executive, the secretary of the reco gnized trade trade union took
up their case for appointment as foreman with the Generar Manager. The union Secretary
argued that they had been doing part of the foremen's job before the posts were created
and, in the absence of suitable candidates they should be preferred for promotion.

The General Manager maintained that the men concerned were not qualified for the posts
and did not possess the technical background required to perform the Foremans duties.
The written job-descriptions of the posts of progress Incharge and Foreman prepared by
the Joint Committee indicated that the job content of the former was only about 25% of
that of a Foremary and only, on the administrative side. They did not supervise the work
of the Preparatios Section in any way, whete there were mistries in line for promotion.
The latter, though good in their own area, could not be promoted as they were not
technically qualified to hold the higher position.

After prolonged discussion, the General Manager concededt hat in the circumstancest, he
Incharges would be given an opportunity to prove their fitness for the iob. It was also
agreed that in the first place, test specifications for the posts of Foreman would be
worked out by a Joint Committee and given to the men concerned if they wished, they
would also be given guidance for a period of three months, to learn the iob. They would
then be subjected to a test by the Training Officer, and if they passed the test, they would
be promoted to Foremen.

The Manager communicated this decision to the senior Foreman in the presence of the
two men. He readily agreed to give them the necessary guidance whenever they requested
it. However they maintained that the decision was not only to give them guidance when
asked for, but fulltime training and guidance in order to enable them to pass the test. On
hearing this, the Senior Foreman remarked: I have no one to spare primarily for the
Purpose of training them to pass the test.

Questions :

(i) What is the main problem in the case?

(ii) Identify and discuss the stage and action required to tackle the problem before it
became a grievance. Comment on the role of the management.

(iii) Critically evaluate the grievance and the follow-up action. Evaluate the
unionmanagement compromise and its possible consequences with your own point of
view, in detail.
(iv) If you were the manager of the 'shop', how would you handle the problem, after the
Senior Foreman's remark about sparing the 'Incharges' for three months ?

MS2 MANAGEMENT OF HUMAN RESOURCES

Time: 3 hours
Maximum Marks: 100
(Weightage 70%)

Note: (i) There are two Sections A and B.

(ii) Attempt any three questions from Section A. All questions carry 20 marks each.
(iii) Section B is compulsary and carries 40 marks.

June 2009

December 2009

Section A

1. Define HRM and differentiate it from traditional Personnel Management. Outline the
objectives and functions of HRM. (20)

2. Evaluate the importance of Performance Appraisal (PA) in an organisation. Compare

any two methods of PA and their merits and demerits. (20)

3. What is HRP ? Discuss Human Resource Planning Process. (20)

4. Analyse the need for training in an organisation. How can you make Training a
strategic managerial function? Discuss. (20)

5 . Write short notes on any three of the following : (20)

(a) Job Analysis

(b) Indiscipline

(c) Quality circle

(d) Succession planning

(e) Employee stock option plan

SECTION - B

6. Read the following case carefully and answer the Questions given at the end. (40)
All progressive companies have some formal or informal appraising systems for
appraising the performance of their employees.

Performance Appraisal is defined as any procedure that involves assessing employees

performance against set standards and, providing feedback to the employees assessed.

The aim is to motivate employees (a) to improve their performance (b) encourage for
better performance above par.

The reasons for performance appraisal are (1) For salary decisions, rewards, promotion.
(2) To review employee's work related behaviour with a view to correcting any
deficiencies. Appraisal should be central to career planning process.

In a pharma company manufacturing and marketing drugs and medicines, the research
staff has developed a number of new products and formulations which are effective. But
at the same time it has to meet severe competition from stalwarts with foreign
collaboration. Mr. Shah, the Vice President Marketing has a very successful Pharma
Marketing background. He has been with the company for the past 4 years. Mr. Shah had
made ambitious plans for capturing sizeable share of market in the Guiarat State. The
Company being medium srzed.,MrS. hahhad kept his marketing department and the
marketing team lean and trim. The field sales staff was given aggressive targets and were
virtually pushed To reach the respective targets. The field staff worked to their best
abilities to complete their respective targets. Mr. Shah had himself been working hard
almost 11, - 12 hours a day. There was no formal appraisal and reward system in the
company. During last 5 years more than 60 Medical Representativesa nd the Area
Supervisorsh ad Left the company due to unsatisfactory increments And promotions.
Those who left the company were star workers. But Mr. Shah did not care for this high
turnover. He was over confident that he would be able to hire freshers and also Select
candidates who were not happy with their remuneration in their respective company. Mr.
Shah had never communicated to the field sales staff about their performance or reasons
for not recognising their outstanding performance in a few cases. There was on the whole
a great dissatisfactiona nd good performers were leaving the company.

Questions:

(a) What do you perceive is the basic problem in 'AMBEK'?

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

(c) In the event of your suggesting a Performance Appraisal System:

(i) How will you decide a suitable system of appraisal ?

(ii) Will your system include merit, rewards and promotions?