Professional Documents
Culture Documents
Dear Friends, All Answers are given in the Study Material Issues by ICAI and in
our Class Notes if you have taken classes from us.
3. Order to Cash (OTC or O2C) or Sales covers all the business processes relating to fulfilling customer
requests for goods or services. It involves transactional flow of data from the initial point of
documenting a customer order to the final point of collecting the cash. List and briefly explain the
steps involved in the OTC process flow.
Answer/Hint: List and briefly explain the steps involved in the order to cash cycle.
4. Chartered Accountants in their various roles in the organisation and the Auditors performing the
audit of the organisation must study & understand the Accounting Information System and related
concepts so that they can accomplish the functions of accounting, general accounting reports &
using accounting reports. Determine the three basic functions of AIS that they should build their
understanding upon?
Answer/Hint: Explain the three basic functions of the accounting information system. These are:
• Collect & store data
• Record transaction
• Safeguard organisational assets
5. Hope Ltd. has invested huge amount of time, money and efforts in the development of a Business
Process Management System (BPMS). Very excited by this development, CEO of Hope Ltd. Mr.
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Manmohan Lal has announced that Hope Ltd. will be soon the market leader in its field leaving the
competitors far behind. However, much to the surprise to all, the Business Process Management
System so developed by Hope Ltd. is not able to deliver the results that was expected from it. What
according to you may be the possible reasons of the failure of the Business Process Management
System in Hope Ltd?
Answer/Hint: Some of the reasons for failure of BPMS includes the following:
• Lack of executive involvement in the overall project management
• Lack of proper training to the employees
• Lack of flexibility in the overall BPMS
• Too complicated to be customized to meet the exact business needs
• Inadequate change management mechanism
• Resources not available when needed
• Software fails to meet business requirements
• System over-engineered compared to the actual requirements
6. There can be different kinds of IT architectures and organisation can choose the architecture most
suited to its needs and requirements. However different architectures have their own advantages
as well as disadvantages. How Business Process Management IT Architecture differs from the
Traditional IT Architecture? Which one is superior? Explain briefly.
7. Once being the market leader, Prosoft Ltd. is now struggling to compete in the market.
Management is totally puzzled about how should it tackle the situation. Concerned about the
increasing defect rates of products and correspondingly falling customer satisfaction, Prosoft Ltd.
has approached you for a way out. As a business consultant, which BPM tool is most suitable for
the company & how such tool is different from other BPM tools?
Answer/Hint: Explain about Six Sigma and Six Sigma vs other BPM tools.
8. Research has identified certain factors that are responsible for the success of any Business Process
Reengineering (BPR) Project. Discuss them.
9. An Entity-Relationship (ER) diagram creates a graphical representation of the entities, and the
relationships between entities, within an information system. Explain the symbols used in the
Entity-Relationship diagram and the various types of relationships that exists in the ER diagrams.
Answer/Hint: Explain about the symbols used and types of relationship like one to one, one to
many, many to one and many to many.
10. Accountants do not need to have the ability to program complex systems, but is it important for
them to understand the documentation that describes how processing takes place. Give some
reasons why Documentation is important to Information Systems.
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(a) Orchestration as a critical pillar of BPA
(b) Application server
(c) Variable length Instructions
(d) Back end in case of cloud computing
(e) Mobile software
2. For conversion from manual system to automated Information systems, discuss the different
activities during the phase of Conversion which can be undertaken under System Development Life
Cycle (SDLC)?
Answer/Hint: Explain about Direct Changeover, Phased Conversion, Parallel Conversion and Pilot
Conversion.
3. An enterprise has the workforce that works on different projects at different times and in different
locations. It is working on a technology that will enable it’s workforce to access the Internet and
data on their home or work computers from anywhere in the world, support communication on
the go as well as they can easily carry their devices from one place to another. Which of the
technology should be used by enterprise? Explain briefly.
4. The objectives of Audit would vary depending on the type, purpose objective and scope of audit.
Briefly explain about the general objectives of auditing in a computerized environment.
Answer/Hint: Explain about the general objectives of audit in the computerized environment
including the points like Existence, Valuation, Authorization, Cut-off etc.
5. Briefly explain the Processing Device including all of its functional units.
6. What do you understand by the term Database Management System? Discuss its advantages and
disadvantages.
9. Cloud computing saves the organisation from incurring huge acquisition, installation and
operational cost of IT related infrastructure. However cloud computing has its own share of
constraints and security issues. An organisation often finds itself reluctant to go for the cloud
computing services offered by the third-party vendors as it may lead to a compromise of its
confidential data. In such a situation, which cloud computing environment would you recommend
to it? Also recommend a cheaper alternate to your first recommendation where entity can at least
have the full control and security of its sensitive data and program.
Answer/Hint: Explain about Private cloud. Then explain about Hybrid cloud.
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10. In order to manage the ever-increasing data, organisation needs effective database management
mechanism and in this process, the database management model it has chosen also plays a crucial
role. One of the prominent and widely used database management model used by the
organisations is Network Database Model. Briefly explain the Network Database Model having the
specific coverage of the following aspects.
(a) Keys and primary keys
(b) Domain, Relation & attributes
2. You have recently taken on a Real Estate Project Financing Company as your client. You are
familiarizing yourself with the company & its operations. You are told that they use network of
computers which are designed in a way where all the computers and nodes are connected on a
single backbone cable without having any central unit linked to any of the nodes. You are required
to identify the topology used by the company and briefly explain its advantages and disadvantages.
3. Differentiate between LAN, MAN & WAN on the basis of any five criteria.
4. You are being briefed by an accountant in your client's office who has limited knowledge of the
Information Technology. He speaks of the type of cable which has been chosen by his IT
department for transmission of information. He explains that the cable's positive features include
high integrity, low error over long distances, high carrying capacity etc. He also feels that it
comprises an inner core made of glass or plastic type of material. What can be this cable? Explain
its advantages over the twisted pair cable.
Answer/Hint: Briefly explain about Fiber Optics Cable.
5. Briefly explain about Peer-to-Peer Networking along with its advantages and disadvantages.
9. Write a brief note on decentralized computing. Give a big reason that why it should be preferred
over centralized computing?
10. Mr. X started up his own business of Grocery shop at small level. Which is the most suitable tier
architecture of Information systems that fits the best to his business requirements? Also, discuss
its advantages and disadvantages.
2. To deal with the increasing competition and the rising input cost, Simran Ltd. is now focusing on to
ensure the delivery of right products at the right time to the right place at the right price and at the
least possible cost. Recommend a system that can help Simran Ltd. to achieve its objectives and
also explain its components.
Answer/Hint: Briefly explain about Supply Chain Management System and its components.
3. You log on to the service provider's website to pay your mobile phone bill through net banking.
However, server of the bank hangs and a message is flashed saying that there is a problem with
the service provider's system and asking the users to try later. The same issue is being faced by
millions of other customers from the last several days. Identify and briefly explain the business
information system with which this issue can be attributed to.
4. In today’s competitive environment, a firm must have very sound knowledge processing
mechanism i.e. What it knows, how it uses knowledge it has and how fast it can learn something
new. Considering this statement, briefly explain about a business information system that can help
company to achieve this objective.
5. People are the most valuable asset of an enterprise and substantial time and endeavor has to be
spent in managing the human resources. Human Resource Management System (HRMS) refers to
the systems and processes at the intersection between Human Resource Management (HRM) and
Information Technology. Discuss any five modules of HRMS.
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6. Amazed by the rising influence of technology, ABC Ltd. after lot of deliberations finally decided to
embrace the power of information technology. As they are quite new in this field, they ask you
that what are the essential qualities an information system should have so that it can be useful for
ABC Ltd. Also, as the number of transactions is very huge, to deal with the situation, Mr. Ankur,
the functional manager, has recommended the senior management to consider an information
system which can process the day to day business related transactions. The management has given
you the responsibility to recommend them a suitable system for that purpose. What are the factors
you will look upon into that system before qualifying it for the said purpose?
Answer/Hint: Briefly explain about Transaction Processing System and the ACID Test.
7. Anabella Ltd. is continuously losing its market share to its competitors. It has recently adopted a
business information system which provides a single integrated view of the customers and
smoothen the process to capture, consolidate and analyze data from existing and potential
customers. According to you what that system is most likely to be? Briefly explain.
8. What is an ERP system? Also explain the various stages involved in its implementation in the
logically correct order.
9. What do you mean by ‘Frame Based Expert System’? Also explain the various components of
Executive Information System.
10. A customer contacted a bank’s customer care executive to enquire about the processing of Credit
Cards issued by the bank. As an executive, what shall be your explanation?
3. Consider a case of an organization where the employee’s attendance system is manual. If this
process is to be automated, discuss the various steps that will be involved in its automation.
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Answer/Hint: Briefly explain all eight steps involved in the implementation of BPA.
4. You are a senior manager in the Top management of a company X Ltd. and take the responsibility
for Information Systems function in the company. List out the major functions performed by your
good self and the Top Management under Managerial functions.
Answer/Hint: Explain about Planning, Organizing, Leading and Controlling as performed by the
senior management.
5. Briefly explain Grid Computing. What are possible reasons of using grid computing?
6. What are the major process controls, which should be enforced through front end application
system, to have consistency in the control process?
• Run-to-Run Totals
• Reasonableness Verification
• Edit Checks
• Exception Reports
• Existence/Recovery Controls
7. Program development and implementation is a major phase within the systems development life
cycle. The primary objectives of this phase are to produce or acquire and to implement high-quality
programs. Briefly explain the phases and corresponding controls in Program Development Life
Cycle.
Answer/Hint: Explain about following phases and the corresponding controls:
(a) Planning
(b) Design
(c) Coding
(d) Testing
(e) Operation and Maintenance
8. As need of communicating with other systems are essential, entity must have proper
communication controls. In the context of communication controls, briefly explain each of the
following:
(a) Line Error Controls
(b) Flow Controls
(c) Topological Controls
(d) Channel Access Controls
10. In order to maintain the skyrocketing operating cost, an organisation is working on a system where
it is trying to have the hard drive of a system partitioned in such a way so to create two separate
hard drives which help devices, applications and users to interact with the virtual resources as if it
were a real single logical resource. Which of the technology is best suited for this purpose? Explain
it briefly and its major application areas.
Answer/Hint: Explain about Hardware Virtualization and its various application areas.
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CHAPTER- 1 Business Environment
1. The term PESTLE is used to describe a framework for analysis of macro environmental factors.
PESTLE analysis involves identifying the political, economic, socio-cultural, technological, legal and
environmental influences on an organization and providing a way of scanning the environmental
influences that have affected or are likely to affect an organization or its policy. Briefly explain the
key factors of the PESTLE Matrix.
2. Explain the five forces model as given by Michael Porter in context of an organization that is
manufacturing motor cars in India.
4. What are the questions will help the entity in understanding the Competitive environment? Also
list few Key Success Factors (KSF) for operating in a Competitive Market Place.
5. Due to Globalization, Companies can operate in any part of the world they want. A company wants
to customize some of its products according to the requirements of different countries and wants
to keep standardization in some of the products. Which approach of globalization the company
should choose. Explain that approach briefly.
7. Interest-rate increases usually have a negative impact on the real estate industry but a positive
impact on the house-hold savings as individuals are encouraged to save more. Briefly explain
Economic Environment as an element of Macro Environment.
9. Do you think that businesses can succeed in the long with profit as their main objective? What are
other objectives of a business?
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Answer/Hint: Briefly explain about the following objectives:
(a) Survival
(b) Stability
(c) Growth
(d) Efficiency
10. Environment analysis helps the entity in achieving objectives. Discuss. Why should organisations
conduct environment analysis?
4. Write a short note on historical evolution and further evolution of business policy.
5. What is Strategic Decision Making? Briefly explain the major dimensions of strategic decisions.
6. Why organisation should have a mission statement? How mission differs from vision?
7. Strategic Management refers to the process of forming a strategic vision & mission, setting
objectives, crafting a strategy, implementing and executing the strategy & evaluating the
performance What are the major stages involved in the Strategic Management Process?
8. “A strategic vision is a road map of company's future." Comment. Draft a strategic vision statement
of any well-known national level Educational Institute you are familiar with.
Answer/Hint: Currently the company is in WT position. Other positions a company may have are
SO, WO and ST.
2. As per ADL Matrix, fast grow, build barriers, act offensively etc. are the strategic choices for the
organisation having the Dominant position in the Industry and operating in the industry being in
embryonic stage. List and briefly explain the other competitive position beside dominant an
organisation might have in the industry.
3. As per the BCG matrix, star are products or businesses that are growing rapidly and need heavy
investment to maintain their position & finance their rapid growth potential. What other
classifications are possible as per BCG Matrix? Also state the strategic options an organisation have
for the star products.
Answer/Hint: Other Classifications are Question Mark, Cash cow and Dog. For Star product or SBU,
the strategic options are build or invest.
4. Explain strategic group mapping? State the steps involved in preparing a strategic group map.
5. Explain the concept of Experience Curve and highlight its relevance in strategic management.
6. How an organization analyses its business portfolio explain on the basis of the market
attractiveness and the business strength?
7. Facing the tough market conditions and the adverse regulatory changes, Generic Ltd., a home
appliances company is looking ways to expand its business. As a business consultant, draw Ansoff’s
Product Market Growth Matrix to advise the Generic Ltd. of the available options.
8. Every company must have a sound knowledge about the industry it operates in and its competitive
character. Industry and competitive analysis aims at developing insight about several issues.
Analyzing these issues assists the entity to craft its strategy which is more industry oriented. In this
context, briefly explain the following aspects:
(a) Triggers of Change along with driving forces
(b) Likely Strategic Moves of Rivals
9. Explain strategic group mapping? State the steps involved in preparing a strategic group map.
10. To which industries the following developments offer opportunities and threats?
Increasing trend in India to organize IPL type of tournaments in other sports also.
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Answer/Hint: Opportunity for: Sports Industry, Manufactures of sports Items, Media Industry
Threat for: Entertainment industry, Other Event Management Industry
Answer/Hint: This is Horizontal Acquisition, Other kinds of possible mergers and acquisitions are
Vertical, Co-generic and Conglomeratic.
2. Under what conditions would you recommend the use of Turnaround strategy in an organization?
What could be a suitable work plan for this?
5. What is Divestment Strategy? Also list some of the situations when an organisation may opt for
the divestment strategy? Is divestment the first option under the retrenchment strategy?
6. Michael Porter has identified three generic strategies and one of which is cost leadership strategy.
What is cost leadership strategy? Why, according to you, any company would like to be a low-cost
producer anyhow?
8. Is stability strategy a do-nothing strategy? If not then what functions management performs while
they opt for stability strategy?
9. ‘Sony Entertainment Media Ltd.’, a multimillion-dollar media & entertainment group of the
country has identified a profitable audience niche in the electronic media. It has further exploited
that niche through the addition of new channels like ‘Sony Travel’ and ‘Sony Science’. It offers high
quality content to the viewers at a high subscription fee. Identify and explain the Generic Strategy
used by Sony Entertainment Media Ltd.
10. Explain Vertically Integrated Diversification and its types with examples.
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2. Do you think that Management of a business house needs to formulate strategies for different
functional areas when it already has developed higher level corporate and business strategies? If
yes, enumerate the reasons why functional strategies are needed.
3. Since a company cannot satisfy all the customers in a given market, they must do market
segmentation then market targeting and lastly market positioning. In this context, explain the
following terms:
(a) Market Segmentation
(b) Market Targeting
(c) Market Positioning
4. There are multiple marketing strategy techniques a company can adopt. Briefly explain the
following marketing strategy techniques:
(a) Augmented Marketing
(b) Enlightened Marketing
(c) Synchro-marketing
5. List some of the prominent areas where the human resource manager can play a strategic role in
the organisation.
6. What is the market-based approach of the valuation of business? Briefly explain its three methods.
7. What are the three major R&D approaches for implementing the strategy? Which R&D approach
you suggest for an entity whose main objective is not to invent the high-end technology but to
mass produce the products based on the available cheaper technologies.
Answer/Hint: The entity should adopt Lower End Technology Follower approach.
8. A company launches a new brand of personal computers. Some of the unique aspects about these
computers are these are very light weight, provides excellent battery back-up and suitable for
heavy duty work. Company keeps prices of these computers significantly higher than the prices of
similar computers available in the market. Identify the pricing strategy that is probably being used
by the company & briefly explain it.
9. What do you mean by Logistic Strategy? What are the different areas to examine while developing
a logistic strategy?
10. Explain the major steps which are required for the successful implementation of supply chain
management in the business organization.
2. Core competences are likely to be more robust and difficult to imitate if they relate to the
management of linkages within the organization's value chain and linkages into the Supplier &
distributor chain. Elaborate the statement.
Answer/Hint: Explain the topic of core competence and linkage management.
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3. Explain that successful strategy formulation does not guarantee successful strategy
implementation. How strategy formulation is different from strategy implementation?
4. What do you mean by the term strategic controls? Briefly explain its different types.
5. Particularly in the IT Industry, the role played by middle management is decreasing as the tasks
performed by them are increasingly being replaced by the technological tools. In such a situation,
recommend a suitable organisational structure for such companies and its advantage.
Answer/Hint: Briefly explain about Hourglass Organisational Structure.
6. ABC Ltd. plans to introduce changes in its structure, technology and people. Explain how Kurt
Lewin’s change process can help this firm.
7. Define the term corporate culture. Also elucidate the statement “Culture is a strength that can also
be a weakness”.
8. Briefly explain the primary activities in the value chain analysis.
9. For initiating strategic change, there are three steps involved. Briefly explain those steps.
Answer/Hint: Explain about the following:
(a) Recognize the need for change
(b) Create a shared vision to manage change
(c) Institutionalize the change
10. Write a short note on the characteristics of Strategic Business Unit (SBU).
3. How does the Internet Technology influence an industry's competitive environment? Explain.
4. Do you agree with the statement that “Strategic Management concepts are of no use to
Government organizations and Medical organizations”? Explain with reasons.
7. To implement six sigma in an organisation is difficult. Explain the critical elements of six sigma.
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