Indian Institute of Management Rohtak

IIM Rohtak
is happy to guide you with
Written Ability Test - Personal Interview Kit

WAT-PI
KIT
 IIM ROHTAK

WAT PI Kit

Personal Interview Questionsgenerally askedin Interviews:

1.Tell me something about yourself.

This is usually the first ques�on asked in the interview. The answer to this ques�on should be
structured and crisp. Try to finish in 90 seconds, keeping the important part in the first and answer in
reverse chronology.

Your basic introduc�on should include 1-2 lines about yourself, which might include your name and
the place you belong to.

This should be followed by either your work-ex details or college of gradua�on for freshers. Instead
of telling only the employer name or the college name along with the marks, try to describe what
you did and what you learned – for example, your roles and responsibili�es. Your schooling details
should follow this.

Achievements – There are two formats which you can follow. Either you men�on achievements a�er
telling about your work-ex and gradua�on/school details, or you men�on it along with them.

You can also include:

1. Hobbies – Men�on 2-3 hobbies that you may have and how exactly you pursue them.
2. Your recent work/ac�vity – something that you have recently started and is very interes�ng.
3. Your strengths and weaknesses.

2.Tell me something about yourself that is not present in your resume/profile.

This part of the answer might include –
• Your passion
• Your strengths or weaknesses

3.Tell me few unique things about that city/town/village.

Students who men�on travelling as a hobby or interest might expect this ques�on.

4.What are your strengths and weaknesses? Men�on three of each rela�ng it to any of your past
experiences or instances.
Explore yourself, and you will find a few strengths and weaknesses. Try not just memorising
keywords (Strength – Hard-working, mul�tasking, etc., Weakness – Lazy, one-thing-at-a-�me, etc.).
Relate your strengths or weaknesses to how exactly you found them by either linking them to your
past experiences or jus�fying them by an instance with past achievements or failures

5.What are your hobbies?

Be prepared on generic ques�ons on your hobbies. Try to impress your interviewer by having some
unique insights about your hobbies.
 IIM ROHTAK

6.What is the aim of your life? Where do you see yourself in the next 5-10 years?
In the long run, many of us might want to be an entrepreneur. Some of us might even want to be a
stand-up comedian, singer etc. But in the short run, you want to pursue MBA from an IIM. Relate
your goals to how pursuing an MBA can help you achieve them.

7.What are the things you are passionate about? Have you done anything for that? If yes, what? If
no, why not?
Talk about what have you done so far for it. If not, explain it with proper reasoning why you haven’t
been able to do anything about it.

8.What are the few takeaways you have got from your previous educa�on?
Talk about your learnings in two parts- growth in skillset and growth in so� skills like leadership.

9.Have you par�cipated in any non-academic co-curricular ac�vi�es? How important do you think
these ac�vi�es are in general?
Any co-curricular ac�vity contributes to the development of overall personality. If you have
par�cipated in some, don’t just men�on the ac�vi�es but also how doing that helped in shaping
your personality

10.Why did you choose this (your branch of engineering or any other selec�on of
course/degree/stream)?
Try to relate one of your interests to the stream or line of a career that you had chosen.

11.Why are your grades low or have decreased/not improved significantly?

There could be any par�cular incident or just normal inconsistency, whatever the reason might be,
do not try to make it seem like its someone else’s fault. Try to be honest and also tell what you are
planning to rec�fy the same.

12.Tell me something about your previous company.

Your answer should include not just what someone can tell by ‘googling’ about your company but
what different informa�on you could offer that is unique and interes�ng.

13.Tell me something about your role in your previous company.

Try to tell about what you have worked on (project, problem etc.) and how has your work benefited
a par�cular set of people (your client, customers etc.).

14.Why did you decide to pursue an MBA and not establish yourself in the same organisa�on or
industry? In other words, why do you want to leave your job?
Indirectly, this is the ques�on of the vision and mission of your life. So, try to 1st decide on what is
the vision and mission of your life. Once that is done, relate how the vision and mission of the
company is different from that of yours and how pursuing an MBA can help you achiecve that.
 IIM ROHTAK

15.What are three key learnings you have got from your experience in Corporates?
This is one of the common ques�ons and try to be comprehensive about it.

16.Why do you think you are the right candidate to be a part of an IIM Rohtak?
Try to tell how you could be a great manager, either by telling about your managerial strengths or a
few previous instances

17.Why do you want to pursue an MBA instead of pursuing masters in your domain (doesn’t apply
to BBA graduates)?

18.Which domain do you think (amongst Sales and Marke�ng, Opera�ons, Finance, IT, HR and
Strategy) is the most important one for an organiza�on?
 IIM ROHTAK

SomeImportant Topicsfor Written Ability Test:

1. Mission to MARS: Can India afford spending a fortune on such projects?

The Mission to Mars was announced shortly a�er China's a�empt flopped in 2011 as it failed to leave
Earth's atmosphere. Japan also tried this mission in 2003 and failed. India had never before a�empted
inter-planetary travel. This was the first a�empt.

h�ps://www.mbauniverse.com/group-discussion/topic/current-affairs/mission-to-mars

2. Impact of Technology on Jobs: Will Automa�on & Ar�ficial Intelligence reduce or increase Jobs?

Technology interven�on is inevitable in any sphere. It does raise the bar of produc�vity, efficiency and
safety to a level which is not achievable by humans. Adop�on of technology, global reach and faster
communica�on has overhauled manufacturing, servicing, product delivery and also employment
associated with these sectors.

h�ps://www.groupdiscussionideas.com/impact-of-technology-on-jobs/

3. Can India Become A $5 Trillion Economy by 2024?

The present government of India has set a target to make India a $5 trillion economy by 2024. So,
there are debates on whether this goal is achievable or not. India’s GDP in 2018 was $2.73 trillion.

h�ps://www.indiatoday.in/diu/story/how-can-india-become-a-5-trillion-economy-by-2024-
1560008-2019-07-01

4. Is Technology Making Us Less Human

Since the inven�on of machines, there are debates on whether technological innova�ons are reducing
the level of humans. With the dras�c improvements in technology, our lives now revolve around
technological devices. Social scien�sts observed that this is resul�ng in the deteriora�on of human
quali�es such as morality and intelligence in humans. Not everyone agrees with this statement, of
course. Let’s see the points to support and oppose the argument.

h�ps://www.groupdiscussionideas.com/is-technology-making-us-less-human/

5. Banking Sector Reforms

In the context of economic liberalisa�on and the growing trend towards globalisa�on (external
liberalisa�on), various banking sector reforms have been introduced in India to improve the opera�on
efficiency and upgrade the health and financial soundness of banks so that Indian banks can meet
interna�onally accepted standards of performance.

h�p://www.economicsdiscussion.net/banking/reforms-in-the-banking-sector-india-bank-
management/27075
 IIM ROHTAK
6. Facebook Libra

Libra is a single global currency and financial infrastructure that empowers millions of people. It is not
en�rely decentralised and is controlled by the Libra Associa�on, i.e. a Swiss Group that includes the
likes of Uber, Paypal, Mastercard, Visa.

h�ps://techcrunch.com/2019/06/18/facebook-libra/

7. Data localiza�on: Benefits and Challenges

At the 14th G20 summit, which was held in June 2019, India backed data localisa�on laws.
In April 2018, Reserve Bank of India (RBI) had issued a circular which mandated payment system
operators to store en�re data related to financial data only in India. The deadline for making these
changes was 15th October 2018. Approximately 80% of the payment system operators including
Google, Paytm, Amazon complied with the rule. But several companies including Visa, Mastercard
missed the deadline due to confusion over data localisa�on rules.
In June 2019, RBI gave clarifica�ons regarding the rules sta�ng that in case the processing is done
abroad, the data should be brought back to India in not later than 24 hours, and also the data should
be deleted elsewhere. And in the case of cross-border transac�ons, a copy of data can be stored
abroad.

h�ps://www.thehindubusinessline.com/opinion/columns/slate/all-you-wanted-to-know-about-
data-localisa�on/ar�cle25363062.ece

8. Neighbourhood First Policy

• “Neighbourhood First” is a foreign policy that India has been following ever since 2014.
• It means that the Indian government will focus more on its �es with its immediate neighbours
as compared to its other strategic partners. Modi Government has �me and again coined the
phrase
• “Neighbourhood First” reitera�ng its stance on foreign policies. The first instance of
“Neighbourhood First” policies could be seen when the SAARC na�ons were invited for the
Prime Minister’s swearing-in ceremony.
• Now, a�er NDA’s re-elec�on, BIMSTEC members had been invited to a�end the swearing-in
ceremony.

h�ps://www.groupdiscussionideas.com/neighbourhood-first-policy/

9. Bifurca�on of Jammu & Kashmir

On 5th August 2019, the Indian government passed Jammu & Kashmir Reorganisa�on bill (2019),
which divided Jammu & Kashmir state into two union territories – Jammu & Kashmir (union territory
with state legislature), Ladakh (union territory without state legislature).

h�ps://www.outlookindia.com/website/story/india-news-jammu-and-kashmir-bifurca�on-all-you-
need-to-know/341419
 IIM ROHTAK
10. E-cigare�es

Recently, the Union Cabinet approved the Promulga�on of the Prohibi�on of Electronic Cigare�es
(produc�on, manufacture, import, export, transport, sale, distribu�on, storage and adver�sement)
Ordinance, 2019. This decision has come on the back of an advisory issued by the Government in 2018
to all States to consider banning e-cigare�es. 16 States and 1 UT have already banned e-cigare�es in
their jurisdic�ons.

h�ps://www.indiatoday.in/india/story/what-are-e-cigare�es-why-have-they-been-banned-
1600452-2019-09-18

11. Ayodhya Dispute

Lord Ram, one of the most revered gods in Hinduism, was born in Ayodhya and later ruled over his
kingdom from here. A temple is said to be built in the early medieval ages to commemorate his
birthplace (Janmabhoomi).

1528 – A mosque was built, purportedly at the same site by destroying the Janmabhoomi temple, by
Mir Baqi – a general of Babur. The poli�cal, historical and socio-religious debate over the history of
the site and whether a previous temple was demolished or modified to create the mosque, is known
as the Ayodhya dispute.

h�ps://www.bbc.com/news/world-asia-india-50065277

12. RBI’s Surplus Transfer to the Government

On 26th August 2019, Reserve Bank of India (RBI) approved Bimal Jalan-led commi�ee report, which
recommended transferring RBI’s excess capital over the next 3 to 5 years. So this year, RBI transferred
Rs. 1.76 lakh crore to the government.

h�ps://www.indiatoday.in/india-today-insight/story/rbi-crore-surplus-transfer-sparked-debate-
1592858-2019-08-29

13. Controversy as a Marke�ng Strategy

To grab a�en�on, some companies create controversy through announcements, adver�sements etc.
Using controversy as a marke�ng strategy is not new, butnow with social media, controversial content
goes viral and, hence genera�ng more a�en�on. But this strategy is quite risky too. So, marke�ng
professionals should be careful when they decide to use controversy as a marke�ng strategy.

h�ps://www.groupdiscussionideas.com/controversy-as-a-marke�ng-strategy/

14. NRC & ASSAM ACCORD

Na�onal Register of Ci�zens, 1951 is a register prepared a�er the conduct of the Census of 1951 in
respect of each village, showing the houses or holdings in serial order and indica�ng against each house
or holding the number and names of persons staying therein. The NRC was published only once in
1951.

h�ps://www.indiatoday.in/news-analysis/story/what-is-assam-accord-of-1985-and-how-amended-
ci�zenship-law-challenges-it-1627965-2019-12-13
 IIM ROHTAK
15. CITIZENSHIP AMENDMENT BILL

The Bill provides that illegal migrants who fulfil four condi�ons will not be treated as illegal
migrants under the Act. The condi�ons are:

a) They are Hindus, Sikhs, Buddhists, Jains, Parsis or Chris�ans

b) They are from Afghanistan, Bangladesh orPakistan
c) They entered India on or before December 31, 2014
d) They are not in certain tribal areas of Assam, Meghalaya, Mizoram, or Tripura included in the
Sixth Schedule to the Cons�tu�on, or areas under the “Inner Line” permit, i.e., Arunachal
Pradesh, Mizoram, and Nagaland.

It also reduces the requirement for ci�zenship from eleven years to just six years. A large number of
organisa�ons in Assam protested against this Bill as it may grant ci�zenship to Bangladeshi Hindu
illegal migrants.

h�ps://www.groupdiscussionideas.com/ci�zenship-amendment-bill/

16. CHIEF OF DEFENCE STAFF

The government has modified the Service Rules of the Army, Navy and Air Force to enable the
appointment of the Chief of Defence Staff (CDS) and fix the upper age limit at 65 if a service chief
is appointed to the post of CDS. The service (Army, Navy and Indian Air Force) chiefs, when
appointed, are usually given a tenure of three years or �ll they a�ain the age of 62 years,
whichever is earlier. However, the tenure of the CDS has not been fixed yet.

h�ps://www.careerride.com/view/does-india-need-chief-of-defense-staff-system-31864.aspx

17. PERSONAL DATA PROTECTION BILL 2019

The Personal Data Protec�on Bill 2019 (PDP Bill 2019) was tabled in the Indian Parliament by the
Minister of Electronics and Informa�on Technology on 11 December 2019. As of 17 December 2019
the Bill is being analysed by a Joint Parliamentary Commi�ee (JPC) in consulta�on with various
groups.

h�p://prsindia.org/billtrack/personal-data-protec�on-bill-2019

18. PRINT MEDIA VS DIGITAL MEDIA

Un�l a few years ago, Print media (Ex: Newspapers,magazines) was the primary source of news and
entertainment. But now, Digital media (Ex: Websites, Apps, Social media, etc.) is giving a fierce
compe��on to Print media resul�ng in debates on whether print media is dying.

h�ps://o2crea�ve.com/digital-vs-print-media/

19. CRISIS IN THE AUTOMOBILE INDUSTRY

On December 2018, the collapse of IL&IF resulted in the crisis in NBFC (Non-Banking Financial
Companies). So, Non-Banking Financial companies have started implemen�ng stricter rules in
issuing loans. On the other hand, banks are also figh�ng with NPAs (Non-Performing Assets) and
hence implemen�ng stringent lending forms. In general, many people buy vehicles by taking loans.
 IIM ROHTAK

So, lack of loans and rising interest rates are discouraging consumers and hence resulted in low
demand for vehicles.

h�ps://www.thehindu.com/business/Industry/why-is-the-auto-industry-facing-
trouble/ar�cle29121023.ece

Other Important Topics

1. Union Budget – 2020-21

2. Doubling of Farmers’ Income by 2022 – How can India achieve this?
3. #MeToo
4. Five years of Modi government
5. Blockchain Technology – Pros & Cons
6. How to solve the NPA crisis?
7. How can banks prevent Nirav Modi-Like scams?
8. Is a relook needed in the caste reserva�on system?
9. Should reserva�ons be based on economic status?
10. Data is the new Oil
11. Decriminalisa�on of Homosexuality – Road ahead for LGBTQ community of India
12. Statue of unity
13. Mob lynching in India
14. Social Media – Impact on human behaviour and society
15. Plas�c Pollu�on
16. Digital Revolu�on – Pros & Cons
17. Unemployment in India
18. Is India prepared enough to handle cyber-a�acks?
19. Mission Shak� – India’s An�-satellite missile test
20. Ar�ficial intelligence – Pros and Cons
21. Jet Airways Crisis
22. Digital Revolu�on – Pros & Cons
 IIM ROHTAK
Marketing
Q. What ismarketing?

Ans. Marke�ng is the science and art of exploring, crea�ng, and delivering value to sa�sfy the needs
of a target market at a profit.

Q. What isthe difference between salesand Marketing?

Marketing Sales

Marke�ng is the systema�c planning, implementa�on and An agreement between a

control of business ac�vi�es to bring together buyers and buyer and seller on the price
sellers of a security.

The overall picture to promote, distribute, price Fulfil sales volume objec�ve
products/services; fulfil customer's wants and needs through
products and/or services the company can offer.

Analysis of market, distribu�on channels, compe��ve Usually one to one

products and services; Pricing strategies; Sales tracking and
market share analysis; Budget

Longer-term Shorter-term

Pull Push

Q. Confusedbyall of the above-givendifferences?

To give an example, sales involve ac�vi�es that would sell 20,000 units of a car. Some of
these ac�vi�es includehow many distributors to target, how much margin is to be given
to distributors, how much discount is to be given, and collec�on of payments from
distributors, among others. Marke�ng involves a set of ac�vi�es so that a person
normally interested in buying just a two-wheeler would instead buy a car. Someof the
ac�vi�es include deciding whom to sell to (Called Segmenta�on and Targe�ng in
marke�ng terminology), designing the product according to the requirements, deciding
the price of the product, deciding where to sell the product, among others. So, what is
more important, sales or marke�ng? Neither. Both are equally important for an
organisa�on to achieve its short and long-termtargets.
Yes, marke�ng and sales go hand in hand, but the essence of one without the other is
difficult to digest.
 IIM ROHTAK
Q. Difference between goodsand services?

A product sold in a market can be a Good, or a Service, or a bundle of both. A Good is a

tangible item. Examples of Goods include books, pens, shoes, etc. A service is an ac�vity that
is performed by another person. Ac�vi�es performed by doctors, teachers, and consultants
fall under this category. They are intangible products, which usually involve performance.
Goods and Services both add u�lity to the consumer purchasing them.

The differences between Goods and Services can be broadly listed as follows:

Goods
Tangible – has physical dimensions, can see
or hold
Storable – can be stored and used
Separable – produc�on and
consump�on are separable
Ownershippossible–transferofownership
from manufacturer to dealerto customer
Homogenous – standardiza�on possible
Core value produced in the factory
Can be returned
Services
Intangible–cannotbeweighedor measured
Perishable – cannot be stored, must be
consumed immediately
Inseparable – produc�on and
consump�on are inseparable
Ownership impossible – access to service, but
no ownership
Heterogeneous – variability in quality
Core value produced in buyer-seller
interac�on
Cannot be returned

Q. What are the 7PʼsofMarketing?

Ans.
 IIM ROHTAK

1. Product:Aproductis an offering that is produced to sa�sfy the needs of a certain group of

people. One must have a clear knowledge of what the product is, what need it is going to fulfil, and
what makes it unique before marke�ng it.

2. Price:Itis the cost that a customer has to pay for the product or service that he consumed.

3. Promotion:Promo�onaltoolsand strategies are used by marketers to increase brand awareness

or sales.

4. Place:Placeis a physical area where your product is sold also includes the way it is distributed. It
is decided based on where your target customer will look for this product.

5. People:Itis crucial to hire and train the right people to deliver superior service to the clients.

6. PhysicalEvidence:Thelocationwhereservice is being provided also is important, which includes

building, interiors, music, televisions etc. The level of a�rac�veness and comfort of a loca�on may
make a lot of difference to the user experience.

7. Process:Howaservice is delivered have a significant impact on customer experience. So, you

have to make sure that you have an efficient and consistent process in place to provide be�er
service quality.

Q. What are the 5Cʼsof Marketing?

The 5C’s of marke�ng are Company, Customers, Compe�tors, Collaborators, and Climate. They are
used to analyse the key areas that are involved in marke�ng decisions for a company and includes:

Poli�cal
issues

Economic
issues

Social
impacts

Technological
 IIM ROHTAK

Q. What isSWOT analysis?

SWOT acronym stands for strengths, weaknesses, opportuni�es, and threats. Anorganisa�on
does SWOT analysis to determine its internal strengths and weaknesses and external
opportuni�es it may grab and the threats it faces, so that an organisa�on may plan accordingly
about its futurestrategy.
1. Strengths-Featuressuchasprojects that give itadvantages over others
2. Weaknesses-Businessesorprojectsthat keep it in a lower position as compared to others
3. Opportunities-Opportunitiesthatanorganisation can exploit to itsadvantage
4. Threats-Entryofnewcompany or product on similaror dissimilarlines
5.
Q. What isPESTELanalysis?

Ans. A PESTEL analysis is a framework or tool used by marketers to analyse and monitor the macro-
environmental (external marke�ng environment) factors that have an impact on an organisa�on.
The result of which is used to identify opportunities and threats which is used in a SWOTanalysis.

PESTEL stands for:

1. P – Political
2. E– Economic
3. S – Social
4. T– Technological
5. E– Environmental
6. L– Legal
 IIM ROHTAK
ConsumerBehaviour

ConsumerDecisionMaking Process:

1. NeedRecognition:Consumerdevelops a need to satisfy one’s demands. He feels a missing

element and needs to be addressed to get normal. Marketers need to determine when their target
audience generates their needs so that they can adver�se a product.
2. InformationSearch:Consumerresearchfor the product to get some recommendation required
to buy the best products. Informa�on can be primary – when consumer generates it by his own from
his friends or family, or secondary – which is already available on the internet or records.
3. EvaluatingAlternatives:Oncetheconsumeris determined on the needs and product, he begins
to seek out the best deal in terms of price, availability, quality or other factors which are vital to him.
4. Purchasedecision:Afterfinalising the criteria, the consumer decides on what to purchase and
from where. Post Purchase Evalua�on: A�er purchase, does the product performs as per expecta�ons.
The marketer wants to provide a good experience to the consumer, as they are not one-�me
consumers.

DigitalMarketing:Digitalmarketingis a technique to advertise using digital channels such as social

media, email, search engines, websites and mobile apps. Since marke�ng is all about connec�ng with
the audience; thus today, the digital space seems to be the right place as digi�sa�on is happening at
a rapid pace. Some of the commonly used assets and tac�cs used in digital media marke�ng are:

SearchEngineOptimization(SEO):Itisatechnique of making your website appear on the top of the

search engine results for a specific set of keywords or terms. It helps to increase the amount of organic
traffic that a website receives.

Pay-Per-Click(PPC):Ittypicallyreferstosponsored pages, which appears at the top of the side of the

search engine result page. The payment is only done once a person clicks for those ads. This technique
also involves contextual add placement in which ads appears when a person is searching for a
par�cular keyword or term.

SocialMediaMarketing:Itismarketingyour product and brand on various social media channels like

Facebook, Twi�er etc. to increase brand awareness and generate leads for your business. Content
Marke�ng: It is the crea�on and promo�on of content for a product, for brand or customer awareness,
lead genera�on and traffic growth for the website.

MarketingAutomation:Itis an integral platform, which helps to bring all the digital marketing
together at once place. The marke�ng automa�on tools help to streamline and automate marke�ng
tasks and workflows.

EmailMarketing:Emailsare the best way to promote content, communicate about discount and
events as well as redirect customers to the business website.

MobileMarketing:Sincemobilehasbecome an integral part of our lives, thus we need to understand

how to communicate with our customers through this extremely personal channel effec�vely. From
SMS to In-App marke�ng, there are many ways in which we can market on our mobile devices.

InboundMarketing:Itreferstoa complete funnel approach in which we attract, convert, close and

delight the customers using online content.
 IIM ROHTAK

Latest trends in marketing

1. ArtificialIntelligence:Artificialintelligence (AI), the ability of a digital computer or computer-

controlled robot to perform tasks commonly associated with intelligent beings. The term is frequently
applied to the project of developing systems endowed with the intellectual processes characteris�c
of humans, such as the ability to reason, discover meaning, generalise, or learn from experience.

2. Chatbot:Chatbot is a programmer an ar�ficial intelligence which conducts a conversa�on via

auditory or textual methods. Such programs are o�en designed to convincingly simulate how a human
would behave as a conversa�onal partner.

3. VoiceSearch:Voicesearch is an up and coming technology that allows people to access internet

search results using nothing more than a smart device and their voice. Just as it sounds. There are
many services as such from the likes of Googles Assistant embedded into every android phone (Okay
Google) to that of Apple's SIRI.

4. User-generatedcontent:User-generatedcontent (UGC) refers to any digital content that is

produced and shared by end-users of an online service or website. This includes any content that is
shared or produced by users that are members or subscribers of the service, but the website or service
itself does not produce it.

5. Interactivecontent:Interactive content is content that requires active engagement from its

consumers. More than just a passive viewer, the individual becomes an integral part of a dynamic,
two-way experience.

6. Influencermarketing:Influencermarketing (also influence marketing) is a form of marketing in

which focus is placed on influen�al people rather than the target market as a whole on social media.
It iden�fies the individuals who influence poten�al customers and orients marke�ng ac�vi�es around
these influencers.
 IIM ROHTAK
STRATEGYANDCONSULTING

1. The term “Strategy” is derived from the Greek word for generalship or leading an army.
2. Strategy consul�ng o�en referred to as strategic consultancy or boardroom consul�ng is one
the most 'high-end' and pres�gious segments within the professional services industry.
3. Strategic planning is important to an organisa�on because it provides a sense of direc�on and
outlines measurable goals.
4. Strategy is defined as “a plan of ac�on designed to achieve a long-term or overall aim.”
5. Business strategies help give direc�on to the en�re organisa�on and prevent its individuals
from losing sight of the end goals.
6. Strategy is important because the resources available to achieve these goals are usually
limited.
7. Strategy can be formulated at three levels, namely, the corporate level, the business level,
and the func�onal level.
8. At the corporate level, strategy is formulated for your organisa�on as a whole. Corporate
strategy deals with decisions related to various business areas in which the firm operates and
competes.
9. At the business unit level, strategy is formulated to convert the corporate vision into reality.
10. At the func�onal level, strategy is formulated to realise the business unit level goals and
objec�ves using the strengths and capabili�es of your organisa�on.

CONSULTINGAS ACAREEROPTION

1. Management consultants help organisa�ons to solve issues, create value, maximise growth
and improve business performance. They use their business skills to provide objec�ve advice
and exper�se and help an organisa�on to develop any specialist skills that it may be lacking.
2. You'll be concerned primarily with the strategy, structure, management and opera�ons of a
company. Your role is to iden�fy op�ons for the organisa�on and suggest recommenda�ons
for change, as well as to advise on addi�onal resources to implement solu�ons.
3. Types of work can include business strategy, E-business, financial and management controls,
human resources, informa�on technology, marke�ng and supply chain management.
4. Consultancy firms range from those that offer end-to-end solu�ons to smaller or more niche
firms that provide specialist exper�se and skills in specific industry areas.

BENEFITS OFBEING ACONSULTANT

1. Opportunityfordevelopingyourskillset:Thebestthingabout being a consultant is the ability

to specialise your skillset. As a consultant, you get exposure to a wider variety of technology,
so�ware, and hardware than you would in staying at the same role for five years.

2. Flexibility:Thecentral part of a consultant’s job is to meet with clients, so consultants can

o�en have more flexibility with their work hours depending on appointment scheduling.
There is also the opportunity to telecommute once you get more se�led in your role.
 IIM ROHTAK

3. Significantgrowthopportunities:Ifyouhave the right work ethic and dedication, you can

experience professional growth early on in your career. According to CNN, the average 10-
year salary growth for consultants is 41.2%.

4. Workingin a team environment:Consulting is all about teamwork. You’ll have the

opportunity to work with team members who share interests, exper�se, ideas, and work ethic
behaviours similar (and different!) to yours.

5. Funnetworkingevents:Aconsulting career can be glamorous: fancy suits, big clients, and

most of all, exci�ng events! Networking efficiently is one way to be a successful consultant.
It’s, therefore, crucial to enjoying ge�ng out there and being friendly with poten�al, current,
and previous clients.

Porterʼs Five Forces:

In an exis�ng industry, market entry and survival is determined by various forces that prevail in the
industry. The leading five factors or forces that drive compe��on:
1. Competitors:Existingrivalrybetweenfirms can take a firm’s profits to zero and may lead to shut
down. In a compe��ve environment, a firm’s decision is highly influenced by what the compe�tors
do.
2.BarrierstoEntry:Thethreatof new entrants to the market determines the sustainability of
es�mated market share. It is evaluated in terms of market entry barriers which may be in the form
of high fixed cost, product differen�a�on etc.
3.Substitutes:Thereisalways a threat of substitute products replacing the existing product(s) of a
firm.
4.Suppliers:Acompetitivemarket with limited suppliers brings with its high level of bargaining
power of suppliers.
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5.Buyers:Mul�pleproducts of the same category gives the buyers an advantage in bargaining; thus,
high bargaining power of buyers exists in mul�-brand products.

VALUECHAINANALYSIS

Value Chain Analysis describes the ac�vi�es that take place in a business and relates them to an
analysis of the compe��ve strength of the business. The ac�vi�es of a business could be grouped
under two headings:

1. Primary Activities- activities that are directly concerned with creating and delivering a product
or service (e.g. component assembly). Primary activities are broken down further into inbound
logistics, operations, outbound logistics, marketing and sales, and after-sales service.
2. Support Activities – activities that make primary activities possible or easier, i.e. these
activities are not directly involved in the production, but may increase effectiveness or
efficiency. Support activities include procurement of inputs, development of technology and
human resources management, and general firm infrastructure. It is rare for a business to
undertake all primary and support activities.
Value chain analysis can be broken down into the following sequen�al steps:

1. Internal Cost Analysis – First Catalogue activities - Break down a market/organization into
its key activities under each of the major headings – Primary or Secondary. A firm or an
industry needs to understand its own value chain in order to compare to its competitors
a. Iden�fy the processes to create the product
b. Determine the por�on of the total cost of the product to each process to Iden�fy the
cost drivers for each process
c. Iden�fy the links between the processes
d. Evaluate opportuni�es for achieving rela�ve cost advantage

2. Internal Differentiation Analysis: Identify the processes that distinguish its products or
services from that of its competitors. Use activities to analyze relative costs and relative
willingness to pay, i.e. assess the potential of activities for adding value via cost advantage or
differentiation. The competitive advantage can be:
a. Superior product features
b. Improved marke�ng channels
c. Enhanced support/service
d. Brand or image posi�oning
e. Price

3. Explore Options and make Choices: Identify current activities where a business appears to
be at a competitive disadvantage. Determine strategies built around focusing on activities where
competitive advantage can be sustained.

COMPETITIVE STRATEGY-PORTER'S GENERIC STRATEGIES

Compe��ve strategy of a company is given by the firm’s source of compe��ve advantage and the
scope of the business. A firm can choose to come up with a low-cost product or a differen�a�ng
product in the market. On the other hand, the scope of business can be narrow and focused on one
market or can be broad and encompass diverse product lines and geographies.
 IIM ROHTAK

CostLeadership:Thisstrategyis used by businesses to create a low cost of operation within their

niche. The use of this strategy is primarily to gain an advantage over compe�tors by reducing
opera�on costs below that of others in the same industry.

Differentiation:Approachunder which a firm aims to develop and market unique products for
different customer segments. Usually employed where a firm has clear compe��ve advantages and
can sustain an expensive adver�sing campaign.

Focusstrategy:Thescopeover which the company should compete in the market- either on cost
leadership or differen�a�on.

BCGMATRIX

The matrix, developed by Boston Consul�ng Group in the early 1960s, is used to plan market
strategies. The growth rate is determined by reference to market research, or it can be es�mated.
“Compe��ve posi�on” includes an assessment of the firm’s overall market penetra�on and
profitability compared to the other players in that market. Products are then posi�oned in the four
cells as shown in the figure.

RECENTNEWS

1. The Boston Consul�ng Group (BCG) report on Andhra Pradesh Capital has pitched for a
decentralised growth model.
2. Intelligence Completes Acquisi�on of ISS Consul�ng (Thailand) Ltd.
3. Wipro looks to double revenue from its consul�ng-led services.
4. Sachin Bansal's Navi Technologies buys so�ware consul�ng firm MavenHive
5. Fashion pla�orm Zilingo acquires nCinga Innova�ons for $15.5 mn
6. Ne�lix's pricing plans to tap into India's poten�ally lucra�ve market
7. Aditya Birla Fashion acquires 51% stake in Finesse Interna�onal for ₹60 crore
8. Walmart launches Supplier Development Program in India
9. Samsung India revenue crossed $10-billion in 2018-19
10. China suspends US Navy visits over bill suppor�ng Hong Kong protests
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Finance

FinancialStatements

Financialstatementsarewrittenrecordsthat convey the business activities and the financial

performance of a company. It is a collec�ve name given to Income Statement, Posi�onal Statement,
i.e., Balance Sheet and Cash Flow Statement

Objectivesof Financial Statements:

1. Determine Net profit or Net Loss (P&L statement)
2. Comparison with the previous year’s Profit
3. Details of Individual items like expenses, assets, liabili�es, etc.
4. Maintaining Reserves
5. Calcula�on of Ra�os

To find out the profit earned or loss sustained by the firm during a given period of �me and its
financial posi�on at a given point of �me is one of the purposes of accoun�ng. For achieving this
objec�ve, financial statements are prepared by business enterprises.

Thethree financial statements:

1. IncomeStatement, i.e., TradingandProfit & LossAccount:

The income statement provides an overview of revenues, expenses, net income and earnings per
share. It is credited with gross profit and other incomes and debited with indirect expenses. It shows
the net result of the business operations duringanaccountingperiod.

Net Income = (Revenue−Expenses)

Major Componentsof P&L Statement

Net sales: Business sales goods and services, for example, a cloth retail shop will sell t-shirts,
trousers, etc. If the purchased t-shirt is returned to the seller, then it is termed as a sales return.

Total sales – Sales Return = Net Sales

Cost of Goods Sold (COGS): Costs incurred on goods sold is deducted from net sales to get the gross
margin. Cost like raw material cost, labour wages, etc. come under COGS.
Opera�ng Expenses: From the gross margin, we subtract opera�ng expenses like adver�sement
expenses, license fees, telephone expenses, etc. to get opera�ng profit or Earnings before interest
and tax.
Interest Expenses: From opera�ng profit, we deduct interest expenses to get Earnings before tax.
Taxes: From Earning before tax, we deduct taxes to get earnings a�er tax or Net income.

2. Positional Statement orBalance Sheet

It shows the financial posi�on of the business. It is a statement to which balances of assets, liabili�es
and capital accounts are transferred. Balance Sheet is true only at a par�cular point in �me since
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even a single transac�on will make a difference to some of the assets or liabili�es.

Assets - Anything which will enable the firm to get cash or economic benefits in the future is an
asset.

Classifica�on of Assets
1. Fixed Assets/Non-current Assets: Fixed Assets are those assets that are acquired for
con�nued use and are not for resale. Fixed assets are not expected to be consumed or
converted into cash within a year. These can be of two types- Tangible and Intangible
a. Tangible- Assets that can be seen and touched. Like land, building, plant, and
machinery are tangible fixed assets
b. Intangible- Fixed assets that are not in a physical form, i.e., they can neither be seen
or touched e.g. goodwill, trademarks, patents, etc.
2. Current Assets: These are those assets of the business which are held for resale or for
conver�ng into cash. These are the assets that are likely to be realized within one year.
Examples are unsold goods, debtors (those from whom we have to collect money), bank
balance, cash in hand, etc.

Liabili�es - Liability means the amount owed (payable) by the business. Liability towards the owners
of the business is termed as an internal liability (some amount is invested by the owner in
business). On the other hand, liability towards the outsiders (some amount is borrowed from bank,
etc.), i.e., other than the owners are termed as an external liability.

Classifica�on of Liabili�es:
1. Non-Current Liabili�es: These liabili�es are those liabili�es which are not payable by the
business in the next year. Example- Long term loans, debentures, etc.
2. Current Liabili�es: These liabili�es are payable by the business within a year. Examples are
trade creditors, bills payable, etc.
3. Owner’s Fund: The amount which the owner puts in the business is a liability for the
business. As business is considered as separate from the owner so when the owner provides
money or some assets, it is considered as an internal liability for the business.

3. CashFlow Statement

Cash flow statement is a statement se�ng out the flow of cash under different heads of sources and
their u�liza�ons to determine the requirements of cash during the given period and to prepare for
its adequate provision.

Classifica�on of cash flow statements:

1. Opera�ng Ac�vi�es: Ac�vi�es like day to day opera�ons (sales), royal�es, fees,
commissions, and other revenue, payment to suppliers for goods and services, etc. that
result in cash flow are classified as opera�ng ac�vi�es. Change in working capital is also a
part of opera�ng ac�vi�es. Nega�ve opera�ng cash flow is a bad sign for the business.
2. Inves�ng Ac�vi�es: The separate disclosure of cash flow arising from inves�ng ac�vi�es is
important because the cash flows represent the extent to which expenditures have been
made for resources intended to generate future income and cash flows. So nega�ve cash
flow is not a bad sign as the amount has been spent to generate future cash flow.
3. Financing Ac�vi�es: Financing ac�vi�es are related to funding management of the business.
Payment of loans, payment of dividend, payment of interest, issue of shares, etc. are
financing ac�vi�es. Separate disclosure of financing ac�vi�es is useful in predic�ng claims on
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future cash flows by providers of the fund. A nega�ve financing cash flow is not a bad sign as
it means that business is paying its outstanding liabili�es.

Basic Economics
Microeconomics:

Every �me you buy or sell a product, or try to assess the value of a product or service, you are
effec�vely applying microeconomics. You may directly use microeconomics in your everyday work.
Even if you do not, it is very likely to be used by others in your workplace to make business and
investment decisions.

Some important points to remember about microeconomics include the following:

1. Microeconomicsisthestudyof how individuals and companies make decisions to allocate
scarce resources.
2. Demandisthedesire for a product or service coupled with the ability and willingness to pay
a given price for it.
3. The lawofdemandstatesthatthequantity demanded and the price of a product are usually
inversely related.
4. If consumers expect that the price of a product will increase in the future, the current quan�ty
demanded may increase as consumers accumulate the product to avoid paying a higher price
in the future. If consumers’ tastes and preferences change and they stop liking the product as
much, the quan�ty demanded at each price will decrease. When the price of a product
decreases, it may lead to an increase in demand for the product and its complementary
products.
5. Marketequilibriumoccurswhen,ata particular price, no buyer or seller has any incentive or
desire to change the quan�ty demanded or supplied, all other factors remaining unchanged.
The price at which the quan�ty demanded equals the quan�ty supplied in a market is known
as the equilibriumprice.
6. Profitisthedifference between the revenue generated from selling products and services and
the cost of producing them. Accoun�ng profit considers only the explicit costs,
whereas economicprofitconsiders both explicit costs and the implicit opportunity
costs. Opportunitycostscapturethevalueforgone by choosing a particular course of action
rela�ve to the best alterna�ve that is not chosen.
7. Fixedcostsdonotfluctuatewith the level of output, whereas variable costs do. As production
increases, averagetotalcosts,which include both average fixed costs and averagevariable
costs,decrease because the fixed costs are spread over more units. Increased produc�on
allows producers to benefit from economiesofscale,the cost savings arising from a
significant increase in output without a simultaneous increase in fixed costs.
8. Economiesofscalearecost savings arising from a significant increase in output without a
comparable rise in fixed costs. These cost savings lead to a reduc�on in total costs per unit as
a result of increased produc�on. Economies of scale can be obtained if, for example, staff,
buildings, and machinery are unchanged but output increases, which results in lower fixed
costs per unit and lower total costs per unit.

Macroeconomics:

Investment professionals consider macroeconomic factors when evalua�ng a company’s earnings

poten�al and the rela�ve a�rac�veness of asset classes. It is no easy task, and few investment
professionals can measure and assess the combined effect of macroeconomic factors with any degree
of certainty.
Some important points to remember about macroeconomics include the following:
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1. Macroeconomics is the study of an economy as a whole.
2. GrossDomesticProduct(GDP)isthetotalmonetary or market value of all the finished goods
and services produced within a country's borders in a specific period.
3. There are 3 methods of calcula�ng GDP:
a. ExpenditureMethod:Accordingtothis method, everything that the private sector,
including consumers and private firms, and government spend within the borders of
a par�cular country, must add up to the total value of all finished goods and services
produced over a certain period.

GDP =C+I +G+NX

i. C = Consump�on spending by households

ii. I = Investment spending by business
iii. G = Government expenditure
iv. NX= Net exports (exports – imports)

b. ProductionApproachMethod:ItmeasuresGDPas the difference between the value

of output less the value of goods and services used in producing these outputs during
an accoun�ng period.

Value Added =Value of output – Value of intermediate consumption

c. IncomeMethodApproach:ThisGDPformulatakes the total income generated by the

goods and services produced.
4. GDP =Total National Income +Sales Taxes+Depreciation +Net Foreign Factor Income

TotalNationalIncome–thesumof all wages, rent, interest, and profits

SalesTaxes–consumertaxes imposed by the government on the sales of goods and services.
Depreciation–costallocatedto a tangible asset over its useful life.
NetForeignFactorIncome–thedifferencebetween the total income that a country’s citizens
and companies generate in foreign countries, versus the total income foreign ci�zens and
companies generate in that country
5. GDP per capita is equal to GDP divided by the population. It allows comparisons of GDP
between countries or within a country.
6. Economic growth is the annual percentage change in real output. It is also sometimes
expressed in per capita terms.
7. Economic activity and growth rates tend to fluctuate over time. These fluctuations are referred
to as business cycles. Phases of a business cycle include expansion, peak, contraction, trough,
and recovery.
8. Changes in the business cycle can be driven by many factors, such as housing, the stock market,
and the financial services sector.
9. With the growth of international trade, mobility of labour, and more closely connected financial
markets, movements in the business cycles of countries have become more closely aligned with
each other.
10. Economic indicators—measures of economic activity—are regularly reported and analyzed.
These measures may be leading, lagging, or coincident indicators.
11. Economic growth, inflation, and unemployment are major concerns of central banks and
governments. They each use different financial tools to affect economic activity. Central banks,
which are often independent of governments, use monetary policy. Governments use fiscal
policy.
12. Both fiscal and monetary policies have limitations: they are affected by time lags, and the
responses to and consequences of each may not be as expected.
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StockMarket

1. Stock Market is also known as the Stock Exchange or Share market all over the World. It is one
of the important cons�tuents of the capital market. It is an investment intermediary and
facilitates the economic and industrial development of any country in the world like India.
2. A stock market is a secure and regulated environment where buyers and sellers meet to
transact in shares and other eligible financial instruments such as bonds which are fixed
interest securi�es or deriva�ves which are traded over-the-counter.
3. Indian stock market is also known as the Na�onal Stock Exchange (NSE) of India Limited. It is
the leading stock exchange in India. It is located in Mumbai. It is the first exchange in India to
provide a modern, fully automated screen-based electronic trading system which offered an
easy business facility to the investors spread across the length and breadth of the country.
4. At present Na�onal Stock Exchange has about 2500VSTs and 3000 leased lines spread over
2000 plus ci�es across India. Bombay Stock Exchange (BSE) is the oldest in India and operates
in the majority of countries of the world. The Exchange's pivotal and pre-eminent role in the
development of the Indian capital market is widely recognized, and its index, SENSEX, is
tracked worldwide.
5. The different market par�cipants include individual retail investors, ins�tu�onal investors
such as pension funds, insurance companies, mutual funds, etc. and also publicly traded
corpora�ons trading in their shares.
6. The stock market provides two func�ons-
a. The first is to provide capital to companies that issue shares and use the fund to
expand their business. By offering stock shares instead of borrowing the capital
needed for expansion, the company avoids incurring debt and paying interest charges
on that debt.
The second is to give investors-those who purchase stocks-the opportunity to share in the
profits of public traded companies in two ways, i.e., through receiving dividends or through
earning profits by selling stocks at different prices.
7. The stock market is divided into two markets- Primary Markets and Secondary Markets.
a. In Primary Markets, the stock market allows companies to issue and sell their shares
to the common public for the first �me, which is known as IPO- Ini�al Public Offering.
It helps the company in raising the necessary capital from investors.
b. The secondary market is where investors buy and sell securi�es, they already own.
The Na�onal Exchanges, such as the New York Exchange (NYSE) and the NASDAQ, are
secondary markets. Transac�ons that occur on the secondary market are termed
secondary simply because they are one step removed from the transac�on that
created the securi�es in ques�on.
8. We can now look at some of the terminologies used-
a. Sensex-Itisan index that represents the direc�on of the companies that are traded
on the Bombay Stock Exchange, BSE. The Sensex captures the increase or decrease in
the prices of stocks of companies that it comprises. A number represents this
movement. Currently, all the 30 stocks that make up the Sensex have reached a value
of 14,355 points
b. Nifty-It is the Sensex's counterpart on the Na�onal Stock Exchange, NSE. The only
difference between the two indices (the Sensex and Ni�y) is that the Ni�y comprises
of 50 companies and hence is more broad-based than the Sensex.
c. Bull-A par�cular kind of investor who purchases shares in the expecta�on that the
market price of that company's share will increase. S/he sells her/his stock at a higher
price and pockets the profit. Simply put, the bulls buy at a lower price and sell at a
higher price
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d. Bear-Bull'scounterpart is the bear. A bear sells stocks first that s/he owns or borrows
from, say a friend, and then purchases the same quan�ty of shares at a lower price
e. CallOption–Anoption that is given to investor the right but not obligation to buy a
par�cular stock at a specified price within a specified period.
f. Put Option-Aput option is the right to sell shares at the strike price at or before
expiry. A trader buying this op�on hopes the price of the underlying stock will fall.
g. IPO(InitialPublicOffering)-Acompany’s first issue of shares to the general public.
IPOs are issued by smaller, younger companies seeking funds for expansion and
growth, but large companies also prac�ce this to become publicly traded companies.
h. Hedge/Mutualfunds-Thesearetwotypes of investment accounts that you can buy
into. The companies that you put your money into further invest your money into
dozens, hundreds or even thousands of stocks.
i. Options-Anop�ongives an investor the right, but not the obliga�on, to buy (or sell)
shares at a specific price at any �me, as long as the contract is in effect.
j. Futures-Afutures contract requires a buyer to purchase shares, and a seller to sell
them, on a specific future date unless the holder's posi�on is closed before the
expira�on date.

Basic terms:

Accountspayable:Moneyowedbya company to suppliers that have extended the company credit.

Accountsreceivable:Moneyowedtoa company by customers who purchase on credit.

Amortization:Theprocessofexpensing the costs of intangible assets over their useful lives.

Annuity:Theexchangeof an ini�al amount for a fixed number of future payments of a certain amount.

Assets:Itemsthathave value and include real assets and financial assets.

Balanceofpayments:Recordthattrackstransactions between residents of one country and residents

of the rest of the world over a period of �me, usually a year.

Beta:A generic term for market risk, systema�c risk, or non-diversifiable risk.

Bond:A formal contract that represents a loan from an investor (bondholder) to an issuer. The
contract describes the key terms of the debt obliga�on, such as the interest rate and maturity.

Bookvalues:Balancesheetvalues of a company’s assets, liabilities, and equity.

Bottomline:Netearnings or net profits of any company

Budgetdeficit:Astatusof financial health in which expenditures exceed revenue.

Businesscycles:Economy-widefluctuations in economic activity.

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Capitalaccount:Acomponent of the balance of payments that reports capital transfers between
domes�c en��es and foreign en��es, such as debt forgiveness or the transfer of assets by migrants
entering or leaving the country.

Capitalmarket:Thepartof a financial system concerned with raising capital by dealing in shares,

bonds, and other long-term investments

Capitalism:Aneconomicsystem that promotes private ownership as the means of production and

markets as a means of alloca�ng scarce resources.

Collateral:Specificassets(generally a tangible asset) that a borrower pledges to a lender to secure a

loan.

Commodities:Physicalproducts, such as precious and base metals (e.g. gold, copper), energy
products (e.g., oil), and agricultural products that are typically consumed (e.g. corn, ca�le, wheat) or
used in the manufacture of goods (e.g. lumber, co�on, sugar).

ConsumerpriceindexConstructed by determining the weight (or relative importance) of each

product and service in a typical household’s spending in a par�cular base year and then measuring the
overall price of that basket of goods from year to year.

CreditratingagenciesInvestmentresearch service providers that specialize in providing opinions

about the credit quality of bonds and their issuers.

CRR(CashReserveRatio)BanksinIndiaare required to hold a certain proportion of their deposits in

the form of cash. However, actually, Banks don’t hold these as cash with themselves, but deposit such
case with Reserve Bank of India (RBI) / currency chests, which is considered as equivalent to holding
cash with RBI. This minimum ra�o (that is the part of the total deposits to be held as cash) is s�pulated
by the RBI and is known as the CRR or Cash Reserve Ra�o

CurrentaccountAcomponent of the balance of payments that indicates how much a country

consumes and invests (ou�lows) with how much it receives (inflows). It includes three components,
the goods, and services account, the income account, and the current transfers account.

Currentaccountdeficit/surplusAnegative/positivecurrent account balance.

CurrentassetsShort-termassetsthat are expected to be converted into cash used up or sold within

the current opera�ng period (usually one year), such as cash, inventories, and accounts receivable.

CurrentliabilitiesShort-termliabilitiesmust be repaid within the next year.

DepreciationTheprocessofallocating the cost of an asset over the asset’s estimated useful life.

DerivativesContracts(agreementsto do something in the future) that derive their value from the
performance of an underlying asset, event, or outcome.

DiscountrateTherateused to calculate the present value of some future amount.

DiversificationThepracticeofcombiningassets and types of assets with different characteristics in a

por�olio to reduce risk.
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EarningspershareTheamountof income earned during a period per share of common stock; net
income divided by the number of shares outstanding.

EquityAssetsminus liabili�es; the shareholders’ (owners’) investment in the company.

FinancialmarketsPlaceswherebuyersandsellers can trade securities; also called securities markets.

FiscalpolicyTheuseoftaxes and government spending to affect the level of aggregate expenditures.

Foreigndirectinvestments(FDIs)Directinvestmentsmade by foreign investors and companies.

Grossdomesticproduct(GDP)Thetotalvalue of all final products and services produced within

an
economy in a given period (output defini�on), or equivalently, the aggregate income earned by all
households, all companies, and the government within an economy in a given period (income
defini�on). Nominal GDP uses current market values. Real GDP adjusts for changes in price levels.

Grossnationalproduct(GNP)Themarketvalueof all the products and services produced in one year

by labour and property supplied by the ci�zens of a country.

HedgeToreduce or eliminate risk caused by fluctua�ons in the prices of commodi�es, securi�es, or

currencies.

InflationThepercentageincrease in the general price level from one period to the next; a sustained
rise in the overall level of prices for products and services.

InitialpublicofferingThefirst issuance of common shares to the public by a formerly private

corpora�on.

InsidertradingTradingwhilein possession of material nonpublic information.

IntangibleassetsAssetslackingphysical substance, such as patents and trademarks.

InventoriesTheunsoldunits of production on hand.

InvestmentbanksFinancialintermediariesthat assist companies and governments raise capital and

can provide other services, such as strategic advisory services, brokerage, and dealing services, and
research services; also known as merchant banks.

LiabilityAmonetaryobligation of a company as a result of previous events.

MonetarypolicyActionstaken by a nation’s central bank to affect aggregate output and prices

through the money supply or credit.

MoneylaunderingAprocessinwhich criminals use financial services to transfer money from illegal

opera�ons to other legal ac�vi�es; the money becomes “clean” in the process.

MoneymarketThetrade-inshort-term loans between banks and other financial institutions

Net incomeThe difference between revenue and expenses; income available to distribute to
shareholders.
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NetpresentvalueThepresent value of future cash flows minus the cost of the investment, or the
present value of cash inflows minus the present value of cash ou�lows.

Non-currentassetsAssetsusedover many years to generate income for the company; examples

include machinery, equipment, buildings, land, and intangible assets.

OpportunitycostThecostofany activity measured in terms of the value of the best alternative that
is not chosen; the value that investors forgo by choosing a par�cular course of ac�on. For example,
the cost of not having money to invest, spend, or hold; the cost of giving up opportuni�es to use
money.

PrimarymarketMarketsinwhichissuers, such as companies and governments, sell their securities to

investors.

PurchasingpowerparityEconomictheory based on the principle that a basket of goods in two

different countries should cost the same a�er considering the exchange rate between the two
countries’ currencies.

RecessionAperiodduringwhich real GDP decreases (i.e., negative growth) for at least two successive
quarters, or a period of a significant decline in total output, income, employment, and sales las�ng
more than a few months.

Repo(Repurchase)rateTherate at which the RBI lends short-term money to the banks against
securi�es. When the repo rate increases borrowing from RBI becomes more expensive. Therefore, we
can say that in case, RBI wants to make it more expensive for the banks to borrow money, it increases
the repo rate; similarly, if it wants to make it cheaper for banks to borrow money, it reduces the repo
rate.

ReverseReporateTherate at which banks park their short-term excess liquidity with the RBI. The
banks use this tool when they feel that they are stuck with excess funds and are not able to invest
anywhere for reasonable returns. An increase in the reverse repo rate means that the RBI is ready to
borrow money from the banks at a higher rate of interest. As a result, banks would prefer to keep
more and more surplus funds with RBI.

ReserverequirementTherequirementforbanksto hold reserves in proportion to the size of deposits

– CRR & SLR

SecondarymarketMarketinwhichinvestors trade securities and contracts with each other but not
with the original security issuer.

SecuritiesFinancialassetsthat can be traded, such as shares and bonds.

SLR(StatutoryLiquidityRatio)Thistermisusedby bankers and indicates the minimum percentage of

deposits that the bank has to maintain in the form of gold, cash or other approved securi�es. Thus,
we can say that it is the ra�o of cash and some other approved securi�es to liabili�es (deposits)
SpotmarketForeignexchangemarket in which currencies are traded now and delivered immediately.

ToplineCompany's gross sales or revenues.

Tradedeficits/surplusWhenthevalueofexports is lower/higher than the value of imports.

 IIM ROHTAK
State of TheIndian Economy
Countries with stable governments frequently end up with weak economies, and India, a�er years of
impressive growth, risks becoming one of them. The current scenario of the Indian economy can
broadly be broken down into three segments- Slowdown, Moody’s downgrade, and Ease of doing
business. While the former two have created a crack in our economic wall, later, one has tried to fill
it.

Slowdown

India’s gross domes�c product (GDP) growth has fallen to 4.5% in the July-September quarter of 2019-
20, far from the government’s ambi�ous call for a double-digit growth not so long ago. IMF has cut
India’s forecast for 2019 to 6.1 per cent from 7.3 per cent.

What are the possiblereasons?

The range of reasons lies in the grey area, and it’s not crystal clear.

Financial stress among rural households and laggard job crea�on are among the cri�cal reasons for
the slowdown. In contrast, a credit deficit among non-bank financial ins�tu�ons (NBFIs), the primary
providers of retail loans in recent years, has worsened the weaker condi�ons.

Not only is economic growth slowing down overall, but inequality is rising as well. According to Oxfam,
73 per cent of the wealth generated in India in 2017 is held by the wealthiest 1 per cent. A drop in
investment is connected to trust. When businesses doubt about a country’s policy environment, they
hesitate to sink money into it because it can affect them in the present and near future. A
government’s heavy-handed interference in the market can hurt confidence in the economy.
Divisiveness is increasing throughout society in India these days, while trust in the government is
declining.

The government tried to stave off the crisis. First, it withdrew surcharge levied on foreign por�olio
investors and then turned out a series of measures, including corporate tax cut and the plan to set up
 IIM ROHTAK

a Rs 25,000 crore fund to recharge the realty sector. The RBI has already lowered its benchmark
interest rate (repo rate) five �mes during this calendar year, taking the cumula�ve cuts to 135 basis
points, from 6.5% in January to 5.15% in October, even as the Consumer Price Index (CPI) based
infla�on shot up from a paltry 1.97 to a mildly worrisome 4.62.

Moodyʼs downgrade

Global ra�ng principal Moody's Investors Service also changed the outlook on India's ra�ngs to
'nega�ve' from 'stable.' The agency sliced its forecast for the country's FY20 growth rate to 4.9%, down
from a previous downgrade to 5.8%. These send an alarming signal that what was once an investment-
led slowdown has nowbroadened into weakening consump�on,driven by financial stress among rural
households on the back of stagna�ng agricultural wage growth and constrained produc�vity, as well
as weak job crea�on due to rigid land and labour laws.

A modest recovery is expected by 2020-21 through policy s�mulus with weak economic growth.

LeapinEaseof doingbusiness

Amid this dangling economic slowdown, India has jumped 14 rungs in the World Bank’s Ease of Doing
Business 2020 survey to stand at 63, among 190 countries, to be among one of the world’s top 10
most improved countries for the third consecu�ve �me. India’s successful implementa�on of the
Insolvency and Bankruptcy Code (IBC), introduced in 2016, has worked in its favour. Addi�onally, India
made commencing a business easier by abolishing filing fees for simplified proforma for incorpora�ng
a company electronically in 2018. The news certainly brings a whiff of fresh air for the Indian economy.
The sharp rise in the ranking may help the country a�ract mul�na�onal companies, looking at
alterna�ves to China for investment during Beijing’s trade war with the US.

The fundamentals of India’s economy remain strong. The current situa�on is mostly collateral and
temporary damage, the result of corrosion of trust caused by the country’s inclina�on toward
illiberalism. India can boost its economy again by reclaiming and building on its progressive heritage.

Indian TelecomIndustry Woes

India has the world's 2nd largest mobile market, with total telephone subscribers of 1.183 billion and
mobile subscribers of 1.161 billion as of May 2019. As of January 2019, India has witnessed an
enormous growth of 165% in-app downloads for the past two years. India has a teledensity of 89.92%
of which, urban teledensity is 160.79%, and rural teledensity stands at 56.74% as of May 2019. The
industry is divided into the following subsectors: Infrastructure, Equipment, Mobile Virtual Network
Operators (MNVO), White space spectrum, 5G, telephone service providers, and broadband.

The telecom industry contributes 6.50% to India's GDP as of 2017 and is expected to reach 8.2% by
2020. Some of the major opera�ng companies are Vodafone-Idea, Jio, Airtel, and BSNL. It employs a
total of about 4 million popula�ons, providing a wide range of career opportuni�es in wireless
communica�ons, GSM, GPRS and CDMA technologies, data networks, and op�cal networks.

TheJio Disruption

The telecom sector is going through a stressful period with growing losses, piling debt, price war,
reduced revenue, and irra�onal spectrum costs with the introduc�on of Reliance Jio since September
2016. Prior to Jio's entry, the Indian market had about ten wireless service providers of which, the
smallest five accounted for about 21%, and Bhar� Airtel was the largest at 25%. Since Jio's entry with
 IIM ROHTAK

unlimited free voice calls and cheap data services, the market has consolidated three big providers,
including the merger of Vodafone-Idea. As of June 2019, Jio's net profit jumped to $130 million while
Vodafone-Idea lost $690 million, and third-ranked Airtel lost $410 million, both of which had been
profitable last year.

Consolidation– Mergersand acquisitions

High fees, frequent policy flip-flops, endless tax demands have driven most of the carriers aground.
India's telecom industry has decided to shi� from a fragmented industry with mul�ple operators to a
more balanced market consis�ng of three to four strong network service providers. With M&A, the
industry would become more stable with tariff wars easing out and companies majorly focusing on
assembling their merged en��es.

To stabilize the telecom industry which had severely dented revenues and profits, Vodafone India and
Idea Cellular have decided to merge, crea�ng a telecom operator worth Rs. 1.5 lakh crore with a 35%
market share and a subscriber base of around 430 million. The idea made a start in digital content
services including movies, music, and magazines, as it announced the merger. It needs more trac�on
to match Reliance Jio, which has acquired digital music service Saavn for $1 billion and has links to
Network 18 media en��es as well as a key video entertainment investment in ALTBalaji.

BSNL has an es�mated loss of Rs. 14000 crores in 2019 fiscal. In November 2019, the government had
given the nod to the merger of two loss-making telecom firms, i.e., BSNL and MTNL and approved an
Rs. 69000 crore revival package that includes raising sovereign bonds, mone�zing their assets, and
offering a Voluntary Re�rement Scheme (VRS) to employees.

Adjusted GrossRevenue (AGR) and its issues

Telecom operators pay levies such as license fees and spectrum usage charge (SUC) as a share of their
revenue to the government. These payouts are calculated as a percentage of the adjusted gross
revenue (AGR). The Department of Telecommunica�ons (DoT) believes that such charges are to be
levied on the basis of en�re revenues earned by a telco - including non-telecom related sources such
as deposit interests and asset sales. On the contrary, service providers say that AGR should consist of
revenues generated from telecom services only. In October 2019, the Supreme Court of India had
ruled in favour of DoT upholding that the telecom companies' en�re revenue should be considered
while imposing the license fee and SUC. Operators on the back of TDSAT's 2015 judgment had paid
only what they es�mated due as license fees and spectrum charges. The original disputed amount
(i.e., license fees) of Rs. 23000 crore snowballed into a massive figure of nearly Rs. 93000 crores, as
DoT contended that the en�re dues accumulated over the last 15 years with interest and penalty.
Vodafone-Idea is the worst-hit telecom operator as it owes an es�mated Rs. 40000 crores in underpaid
license fees and spectrum charges as per DoT's calcula�ons. It is now seeking relief from the
government in the form of waivers on interest and penal�es. Bhar� Airtel owes an es�mated Rs 42000
crore and made a provision of Rs. 9779.4 crore. It stands at a be�er posi�on than Vodafone Idea in
terms of paying dues. Presently, the court has mandated that the dues be paid within a period of 3
months. The government has also set up a panel comprising of secretaries in telecom, finance, and
law ministries to consider a bailout package with likely op�ons of a two -year moratorium on spectrum
payments, reduc�ons in Universal Service Obliga�on Fund (USOF) component of license-fee and in
SUC charges. With the telecom sector plagued by falling revenue, dwindling cash flows, and debts, the
recent court orders do not reverberate well with the industry heading towards a duopoly with the
likely exit of Vodafone-Idea.
 IIM ROHTAK

BankingCrisisinIndia
The collapse of the financial giant IL&FS last year has created a crisis of confidence in India’s shadow
banking sector. New issues have since come to light. Officials at PMC bank admi�ed in a le�er that
they had manipulated their books to avoid recognizing bad loans made to real estate developer, HDIL
Ltd.
Meanwhile, the Yes Bank stock plummeted, due to concerns rela�ng to its exposure to another
troubled shadow bank or non-banking financial company (NBFC), Indiabulls Housing Finance Ltd. This
led to doubts regarding asset quality in other parts of the financial system. Analysts believe that the
NBFC crisis could indicate a sharp rise in bad loans for conven�onal banks which fund the shadow
banks.
PMC Bank Crisis
Punjab & Maharashtra Co-opera�ve Bank (PMC Bank) is a Mul�-State Scheduled State Co-opera�ve
Bank with its area of opera�on in the States of Maharashtra, Delhi, Karnataka, Goa, Gujarat, Andhra
Pradesh and Madhya Pradesh. Reserve Bank of India, banned depositors from taking out more than
Rs. 1,000 ($14) for six months without offering any explana�on (this was revised to Rs. 25,000 a�er
much agita�on and discussions). It was found that 73% of PMC’s Rs. 88 billion loan book – or almost
$920 million – was �ed to just one borrower group: Housing Development and Infrastructure Ltd
which is facing bankruptcy. Till 2015 Normal RBI checks didn’t have deeper arms, hence they were
hiding these bad debts. PMC Bank used “dummy accounts” and other methods to hide its oversized
loans to Housing Development & Infrastructure Ltd (HDIL) when RBI had stricter checks star�ng 2017.
The Economic Offences Wing (EOW) of Mumbai Police arrested Rakesh Wadhwan, and his son Sarang
Wadhwan, director of HDIL. The EOW has provisionally a�ached Wadhwans’ proper�es worth 3500
crores.
YesBank Crisis

Yes Bank stock was pegged as a ‘diamond’ at the beginning of the Calendar, but by September quarter,
he was in a hurry to offload all his holdings. It was Ni�y50’s worst performer of 2019, eroding 73 per
cent of investor wealth. It was out of the BSE benchmark, Sensex, by December. The bank’s extended
binding term sheet for a poten�al $1.2 billion investment from Canadian investor Erwin Singh Braich.
The bank board is, meanwhile, considering a $500 million offer from two other poten�al investors,
Citax Holdings, and Citax Investment Group. YES Bank has a shortage of �er I and �er II capital, and it
has been facing the biggest hurdle in raising that money, said Yogesh Mehta, Founder, Yield
Maximiser.
Bank Mergers
Finance Minister Nirmala Sitharaman announced a merger of 10 PSBs into 4 major PSBs as part of her
three moves to boost the declining economy of India naming it ‘NextGen PSBs’. It resulted in a
reduc�on in the number of PSBs from 27 in 2017 of 12.

Two par�es in a bank merger - Anchor Banks and Amalgama�on Banks

 IIM ROHTAK

Impact

1. Change in Bank Account and IFSC numbers and the same would be required to be updated to
your 3rd par�es such as Insurance, mutual funds and income tax department
2. Paperwork and keeping trail of Fixed deposits will increase a bit as these will be transferred
into merged banks
3. There is no clarifica�on as to the rates of interest as the two banks have different MCLR
4. A plus point, however, is that access to bank branches would increase as bank merging would
not close all the bank branches
Credit and debit cards would have to exchange for the new bank, but the former would be valid up
to the interim period to avoid any disrup�on in services.

Year ofIPOs

What isan IPO?

IPO is the ini�al public offering. It is a process whereby, for the first �me, a private company becomes
a publicly-traded company by offering its shares to the public. A private company, which has a handful
of shareholders, share ownership by trading their shares publicly. The company gets its name on the
stock exchange through the IPO.

How/ Why doesa companyoffer IPO?

The How:

A company hires an investment bank to handle the IPO before it becomes public. In the underwri�ng
arrangement, the investment bank and the client hammer out the IPO's financial details. They
subsequently filed a registra�on statement with the SEC along with the underwri�ng agreement. SEC
scru�nizes the disclosed informa�on and allows a date to be announced by the IPO if found to be
correct.
 IIM ROHTAK
The Why:

● It's a money-making exercise to offer an IPO. Each business needs capital; it can be growing,
improving its business, improving its infrastructure, repaying loans, etc.
● Trading stocks in the open market means more liquidity. It opens the door to employee stock
ownership plans such as stock op�ons and other compensa�on plans that a�ract the cream
layer's talents
● In a demanding market, a public company can always issue more stocks. As stocks can be
issued as part of the deal, this will pave the way for acquisi�ons and mergers
● A company going public means that in stock markets, the brand has achieved enough
recogni�on to get its name flashed.

TheSaudi Aramco IPO

Saudi Aramco is the world's largest oil producer, the most profitable company on this planet's face,
and is solely responsible for about 10% of global oil output. And un�l recently, it was fully owned by
the Kingdom of Saudi Arabia. But all that changed a couple of days back when Aramco officially went
public, by raising a record $25.6bn from outside investors in exchange for about 1.5% of the company.
All this happened at an exorbitant valua�on of $1.7 trillion, i.e., the company is now worth close to
$1.7 trillion.

And that’s not chump change, which means we need to ask a very important ques�on — Why take
the most profitable company public?

Now the most obvious explana�on is that the Saudi government is looking to reduce its dependence
on oil. 82% of the government’s revenue (budget) comes from the oil & gas sector, and while the
kingdom of Saudi Arabia con�nues to remain flush with cash, the overwhelming reliance on fossil fuels
doesn’t bode well for the country’s future. So, it makes sense to sell a part of Aramco and use the
proceeds to invest elsewhere.

TheIRCTCIPO

IRCTC (Indian Railway Catering and Tourism Corpora�on Limited) has been established with the goal
of upgrading, modernizing and professionalizing catering and hospitality facili�es, managing
hospitality services at railway sta�ons, on trains and other loca�ons, and promo�ng interna�onal and
domes�c tourism in India through public-private par�cipa�on. The business was conferred on 1 May
2008 by the Government of India with the status of Mini-Ratna (Category I Public Sector Enterprise).

The company is the only organiza�on approved by Indian Railways to provide catering services at
railway sta�ons and trains in India for railways, online railway �ckets, and packaged drinking water.
This runs one of the most transacted websites in the Asia-Pacific region, www.irctc.co.in, with
transac�on volumes in the three months ended June 30, 2019, averaging 15 to 18 million transac�ons
per month.
The company operates in four divisions –
(i) Internet Ticke�ng,
(ii) Catering,
(iii) Packaged Drinking Water under the “Rail Neer” brand,
(iv) Travel and Tourism.

Promoters of IRCTC – The President of India ac�ng through the Ministry of Railways, Government of
India
 IIM ROHTAK

The IPO, which was open for subscrip�on from September 30 to October 4, was 112 �mes subscribed
to a price band of Rs 315-320 per share.

The category was subscribed 108.79 �mes for qualified ins�tu�onal buyers (QIBs), while non-
ins�tu�onal investors (NIIs) were subscribed 354.52 �mes, while retail investors were subscribed
14.65 �mes the same.

The issue comprised an offer-for-sale of 2.01 crore shares of the face value of Rs 10 each. Out of the
total issue size, 1,60,000 equity shares are reserved for eligible employees.
 IIM ROHTAK

Operations
• Supply chain management is the management of the flow of goods and services. It is a network
of all business processes and ac�vi�es involving the procurement of raw materials,
manufacturing and distribu�on management of the finished goods.
• It involves the ac�ve streamlining of a business’s supply-side ac�vi�es to maximize customer
value and gain a compe��ve advantage in the marketplace.
• It is also called the art of management of providing the Right Product, at the Right �me, at
Right Place and the Right Cost to the customer.
• It is a mul�-firm approach and is prac�sed from the areas of industrial engineering, systems
engineering, opera�ons management, logis�cs, procurement, informa�on technology and
marke�ng.

Logistics:Itis a part of supply chain management that plans, implements and controls the
efficient, effec�ve forward and reverses flow and storage of goods and services between the point
of origin and the point of consump�on in order to meet the customer’s requirements.

Upstream& DownstreamSupplyChain:Upstream refers to the material inputs needed for

produc�on and it basically indicates the supplier side. Downstream refers to where the products
get produced and distributed and it basically indicates goods movement to the customer side.

ReverseSupplyChain:Itisthe process of planning, implementing and controlling the effective

and efficient inbound flow and storage of secondary goods and related informa�on for the
purpose of recovering the value or proper disposal. It encompasses opera�ons involved in the
reuse of products and materials from the customer to the vendor. It is also called Reverse Logis�cs.

BullwhipEffect:Itisasupply chain phenomenon forecasting how small fluctuations in demand at

the retail level can cause larger fluctua�ons in demand at the wholesaler, distributor,
manufacturer and raw material supplier level. It occurs when changes in customer demand cause
the companies in a supply chain to order more goods to meet the new demand.
 IIM ROHTAK
OPERATIONSMANAGEMENT
• Opera�ons management is an area of management concerned with planning, organizing and
supervising in the context of produc�on, manufacturing or the provision of services.
• It is concerned with conver�ng materials and labour into goods and services as efficiently as
possible to maximize the profit of the organiza�on.
• It involves u�lizing resources from staff, materials, equipment and technology. It is delivery-
focused, ensuring that an organiza�on turns inputs into outputs in an effec�ve and efficient
manner. The inputs represent anything ranging from materials, equipment and technology to
human resources like staff and workers.

LeadTime:Leadtimeisthe amount of time that passes from the start of a process until its completion.
It represents the �me between the moment the customer places an order un�l the moment he
receives it. Reducing lead �me can streamline opera�ons and improve produc�vity, increasing output
and revenue.

CycleTime:Cycletimeis defined as the time between the outputs of two successive flow units from
a process, as defined by you and the customer.

ThroughputTime:itistheamount of time required for a product to pass through a manufacturing

process, thereby being converted from raw materials into finished goods.

Throughput Time = (Work in Progress / Throughput Rate)

ThroughputRate:itrefers to the average output of a production process per unit time. It is also
defined as produc�on per unit �me.

Bottleneck:Abo�leneckisone process in the chain of processes such that its limited capacity reduces
the capacity of the whole chain. It generally occurs when workloads arrive too quickly for the
produc�on process to handle. Bo�leneck causes inefficiencies which creates delays and in result cause
higher produc�on costs.

LeanManufacturing:Itisasystematic method for the minimization of waste within a manufacturing

system without sacrificing produc�vity. It proposes to improve factors that add value and reduce
waste. It is designed to achieve high volume produc�on using a minimal level of inventory. Benefits of
adop�ng lean manufacturing are:

• Reduced Stock Keeping Unit (SKU)

• Reduced Inventory pile
• Improved collabora�on
• Increased use of Standard in-process and material
• Reduc�on in cost of goods sold

Increased use of
Reduced Stock Reduc�on in
Reduced Standard in Improved
Keeping Unit Cost of Good
Inventory pile Process and Collabora�on
(SKU) Sold
Material

INVENTORYMANAGEMENT

Inventory management is the process of ordering, storing, and using a company’s inventory. This
involves the management of raw materials, components and finished goods, as well as warehousing
and processing of such items. It refers to the process of ensuring that a company always has the
products it needs on hand and that it keeps cost as minimum as possible. Inventory management is
 IIM ROHTAK

important for every business as knowing when to restock certain items, what amounts to purchase or
produce, and what price to pay and at what price to sell – can easily become complex decisions. There
are three types of inventory: Raw material inventory, Work-in-progress and Finished goods.

RawmaterialInventory:Materialsorcomponents that are purchased and are in stock but they have
not yet been used in the manufacturing process.

Work-in-Progress(WIP):Theyarethecompany’spartially finished goods waiting for completion and

eventual sale. These items are no longer raw materials but have yet to become finished products.

FinishedGoods:Theyare the number of manufactured products in stock that are available to

customers for purchase.

Just-in-Time(JIT):Just-in-time(JIT)isan inventory strategy companies employ to increase efficiency

and decrease waste by receiving goods only when they are needed in the produc�on process. This
helps in the reduc�on of inventory costs. It aligns raw-material orders from suppliers directly with
produc�on schedules. This method requires producers to forecast demand accurately.

EconomicOrderQuantity(EOQ):Itistheoptimum quantity of an item to be purchased at one time

in order to minimize the combined annual costs of ordering and carrying the item in inventory. It is
also referred to as the op�mum lot size. It is an inventory-control technique that minimizes the total
of ordering and holding costs.

QUALITYMANAGEMENT

Quality:Quality can be defined as “fitness for use”, “conformance to requirements”, “customer

sa�sfac�on”, “value for performance” or “zero defects.”

In a manufacturing or service environment, there are two major categories of quality:

1. Qualityofdesign–It refers to the level of characteristics that the designers specify for a
product. High-grade materials, �ght tolerances, special features and high performance are
characteris�cs associated with the term ‘high-quality product.’
2. Qualityofconformance–Itrefers to the product characteristics formed into drawing and
specifica�ons a�er the level of design quality has been determined. These manufacturing
engineers will use the drawings and specifica�ons to develop manufacturing specifica�ons
and design the opera�ons necessary to produce the product.

QualityManagement:Itis the means of implementing and carrying out the quality policy. They
perform goal planning, quality control and quality assurance ac�vi�es. Quality management is
responsible for ensuring that all quality goals and objec�ves are achieved and that correc�ve ac�ons
have been implemented.

QualityControl:Itencompasses all techniques and activities of an organization that continuously

monitor and improve the conformance of products, processes or services to the specifica�ons. It also
includes the review of processes and specifica�ons and makes recommenda�ons for their
improvement. It aims at elimina�ng causes of unsa�sfactory performance by iden�fying and helping
to eliminate or at least narrow the sources of varia�on.
 IIM ROHTAK

Seventoolsof qualitycontrol:Stratification, Histogram, Check Sheet, Cause-and-effect diagram

(“fishbone” or Ishikawa diagram), Pareto chart (80/20 Rule), Sca�er diagram (Shewhart Chart),
Control chart.

QualityAssurance:Itdescribesall the planned and systematic actions necessary to assure that a

product or service will sa�sfy the specified requirements. The dis�nc�on between quality control and
quality assurance is stated in an ANSI/ASQ standard: “Quality control has to do with making quality
what it should be, and quality assurance has to do with making sure quality is what it should be.” The
quality assurance func�on should represent the customer and be independent of the quality control
func�on, which is an integral part of the manufacturing opera�on.

TotalQualityManagement: Total quality management (TQM) is the continual process of

detec�ng and reducing or elimina�ng errors in manufacturing, streamlining supply chain
management, improving the customer experience, and ensuring that employees are up to speed with
training. Total quality management aims to hold all par�es involved in the produc�on process
accountable for the overall quality of the final product or service.

SIX SIGMA

Six Sigma is a disciplined, sta�s�cal-based, data-driven approach and con�nuous improvement

methodology for elimina�ng defects in a product, process or service. It was developed by Motorola
and Bill Smith in the early 1980s based on quality management fundamentals.
 IIM ROHTAK

Sigma represents the popula�on standard devia�on, which is a measure of the varia�on in a data set
collected about the process. If a defect is defined by specifica�on limits separa�ng good from bad
outcomes of a process, then a six sigma process has a process mean (average) that is six standard
devia�ons from the nearest specifica�on limit. For example, if a product must have a thickness
between 10.32 and 10.38 inches to meet customer requirements, then the process Mean should be
around 10.35, with a standard devia�on less than 0.005 (10.38 would be 6 standard devia�ons away
from 10.35), assuming a normal distribu�on.

Six Sigma can also be thought of as a measure of process performance, with Six Sigma being the goal,
based on the defects per million. Once the current performance of the process is measured, the goal
is to con�nually improve the sigma level striving towards 6-sigma. Even if the improvements do not
reach 6-sigma, the improvements made from 3-sigma to 4-sigma to 5-sigma will s�ll reduce costs and
increase customer sa�sfac�on.

TheFive Steps of Six Sigma:

True believers and prac��oners in the Six Sigma method follow an approach called DMAIC, which
stands for Define, Measure, Analyse, Improve and Control. The ideology behind DMAIC is that a
business may solve any seemingly unsolvable problem by following the DMAIC steps.
 IIM ROHTAK

1. A team of people, led by a Six Sigma champion, definesafaulty process on which to focus,
decided through an analysis of company goals and requirements. This defini�on outlines the
problem, goals and deliverables for the project.
2. The team measurestheinitialperformance of the process. These statistical measures make
up a list of poten�al inputs which may cause the problem and help the team understand the
process's benchmark performance.
3. Then the team analysestheprocessbyisola�ng each input, or poten�al reason for the failure,
and tes�ng it as the root of the problem. Through analysis, the team iden�fies the reason for
process error.
4. From there, the team works to improvesystemperformance.
5. Finally, the team adds controlstothe process to ensure it does not regress and become
ineffec�ve once again.

LEANMANAGEMENT

Lean management refers to a technique developed with the aim of minimising the process waste and
maximising the value of the product or service to the customer, without compromising the quality. It
is coined by the Toyota Produc�on System, which is a part of lean thinking.

Principles of Lean:

1. Identifyvalue:Thevaluemustbe ascertained from the point of view of the ultimate customer

by product family.
2. Mapthevaluestream:Ascertainall the steps involved in the value stream for each product
family and then elimina�ng those steps that are not produc�ve.
3. Createtheflow:Ensurethatthe steps which create value take place in a perfect sequence, so
the product reaches the customer smoothly.
4. EstablishPull:Oncetheflowis initiated, customers pull value from the next level activity.
5. SeekPerfection:Whenthevalue is specified, value streams are ascertained, non-productive
steps are eliminated and flow and pull are ins�gated. The process is started again and
con�nue, �ll the perfec�on state is arrived, in which the perfect value is created with no
waste.
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SevenWastesofLean:Theseven wastes that are at the root of all unprofitable activity within your
organiza�on consist of: Defects, Overproduc�on, Transporta�on, Wai�ng, Inventory, Mo�on and
Processing.

5S: It represents five Japanese words that describe the steps of a workplace organiza�on process.
English equivalent words are shown in parenthesis.

1. Seiri (Sort)
2. Seiton (Straighten, Set)
3. Seiso (Shine, Sweep)
4. Seiketsu (Standardize)
5. Shitsuke (Sustain)

In simple terms, the five S methodology helps a workplace remove items that are no longer needed
(sort), organize the items to op�mize efficiency and flow (straighten), clean the area in order to more
easily iden�fy problems (shine), implement colour coding and labels to stay consistent with other
areas (standardize) and develop behaviours that keep the workplace organized over the long term
(sustain).

Kaizen:Kaizenis an approach to crea�ng con�nuous improvement based on the idea that small,
ongoing posi�ve changes can reap major improvements. Typically, it is based on coopera�on and
commitment and stands in contrast to approaches that use radical changes or top-down edicts to
achieve transforma�on. Kaizen is core to lean manufacturing or The Toyota Way. It was developed in
the manufacturing sector to lower defects, eliminate waste, boost produc�vity, encourage worker
purpose and accountability, and promote innova�on.

Kaizen Cycle for continuous improvement: Get employees involved, find problems, create a
solution, test the solution, analysethe results, standardizeand repeat.

Kanban:Kanbanisascheduling system for lean manufacturing and just-in-�me manufacturing. Taiichi

Ohno, an industrial engineer at Toyota, developed kanban to improve manufacturing efficiency.
Kanban is one method to achieve JIT. The system takes its name from the cards that track produc�on
within a factory.

An example of a simple kanban system implementa�on is a "three-bin system" for the supplied parts,
where there is no in-house manufacturing. One bin is on the factory floor (the ini�al demand point),
one bin is in the factory store (the inventory control point), and one bin is at the supplier. The bins
usually have a removable card containing the product details and other relevant informa�on, the
classic kanban card.

When the bin on the factory floor is empty (because the parts in it were used up in a manufacturing
process), the empty bin and its kanban card are returned to the factory store (the inventory control
point). The factory store replaces the empty bin on the factory floor with the full bin from the factory
store, which also contains a kanban card. The factory store sends the empty bin with its kanban card
to the supplier. The supplier's full product bin, with its kanban card, is delivered to the factory store;
the supplier keeps the empty bin. This is the final step in the process. Thus, the process never runs out
of product—and could be described as a closed-loop, in that it provides the exact amount required,
with only one spare bin so there is never oversupply.
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Poka-Yoke:Poka-yokeis a Japanese term that means "mistake-proofing" or "inadvertent error

preven�on". A Poka-yoke is any mechanism in any process that helps an equipment operator avoid
mistakes. Its purpose is to eliminate product defects by preven�ng, correc�ng, or drawing a�en�on
to human errors as they occur.
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DATAANALYTICS
Analy�cs is the scien�fic process of discovering and communica�ng meaningful pa�erns, which can
be found in data. It is concerned with turning raw data into insights for making be�er decisions.
Analy�cs relies on the applica�on of sta�s�cs, computer programming, and opera�ons research to
quan�fy data. It is especially useful in areas that record a lot of data or informa�on. Recommender
systems used across various e-commerce websites use extensive analy�cs to show users products,
thus achieving customiza�on.

Data MeasurementScales

Data Measurement scales are ways to subcategorize different types of data. These are Nominal,
Ordinal, Interval, and Ra�o.

Nominal:Nominaldata are a type of categorical data. That is, they are used to represent named
quali�es. However, nominal data have no natural rank order to them (they differ by their name only).
For example, the colours orange, white, and green all describe the colour of the Indian Flag. However,
no colour is greater than or less than another colour. These three colours have no natural rank order
to them. They differ by their name alone.

Ordinal:Ordinaldata are a type of categorical data. That is, they describe the named quali�es of
things. However, ordinal data do have a natural rank order to them. So they can be sorted in order by
their rank. For example, we could group balls into small, medium, and large sizes. Medium balls are
more significant than small balls, and large balls are more substan�al than medium balls, so they do
have a natural rank order.

Interval:Intervaldataare a type of numerical data. They represent the measured quan��es of things.
Interval data allow for a degree of difference between two values, i.e. We can add or subtract the
values in meaningful ways. However, interval scales have an arbitrary zero point on their scale
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Ratio:Ra�o data are a type of numerical data. That is, they represent the measured quan��es of
things. Ra�o data allow for a degree of difference between two values, just like interval data. However,
unlike interval data, ra�o scales do have a natural (non-arbitrarily chosen) zero point. So the concept
of a ra�o and mul�plying or dividing two values makes perfect sense.

Typesof Data Analytics

BIG DATA

Big data is a collec�on of unstructured data sets, which tradi�onal data management technologies like
database management tools, cannot process adequately. In simpler terms, big data is a term given to
large volumes of data that organiza�ons store and process. The technological developments in big
data infrastructure, analy�cs, and services allow firms to transform themselves into data-driven
organiza�ons. To meet the ever-increasing storage and processing needs of big data, new big data
pla�orms are emerging, including NoSQL, Hadoop which comprises of HDFS, YARN, and MapReduce,
MongoDB, Cassandra and Massively Parallel Processing (MPP) Pla�orms that work together to achieve
the end goal like extrac�ng value from data that would be previously considered dead.

Five Vʼs of Big Data

1. Volume-Volumereferstothe amount of data an organization or an individual collects and/or

generates. New data has been added at an increasing rate as more compu�ng devices are
connected to the internet.
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2. Velocity-Velocityrefersto the speed at which data is generated or processed. As the speed

of data genera�on and processing increased, real-�me processing became a norm for
compu�ng applica�ons. The enhanced data streaming capability of connected devices will
con�nue to accelerate the velocity.
3. Variety-Technologicaladvancesallow organiza�ons to generate various types of structured,
semi-structured, and unstructured data. Text, photos, audio, video, clickstream data, and
sensor data are examples of unstructured data, which lack the standardized structure
required for efficient compu�ng.
4. Veracity-Itrepresentsthe unreliability and uncertainty latent in data sources. Uncertainty
and unreliability arise due to incompleteness, inaccuracy, latency, inconsistency, subjec�vity,
and decep�on in data.
5. Value-Datawould be low value in their original form, but data analy�cs will transform the
data into a high-value strategic asset. IT professionals need to assess the benefits and costs of
collec�ng and/or genera�ng big data, choose high-value data sources, and build analy�cs
capable of providing value-added informa�on.

DATAMINING

Data mining is the explora�on and analysis of large data to discover meaningful pa�erns and rules.
It’s considered a discipline under the data science field of study and differs from predic�ve analy�cs
because it describes historical data, while data mining aims to predict future outcomes. Addi�onally,
data mining techniques are used to build machine learning (ML) models that power modern ar�ficial
intelligence (AI) applica�ons such as search engine algorithms and recommenda�on systems.

Theaccepted data miningprocessinvolves sixsteps:

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Data mininginvolves sixcommonclassesof tasks:

1. Anomalydetection(outlier/change/deviationdetection)–Theidentification of unusual data

records, that might be interes�ng or data errors that require further inves�ga�on.

2. Associationrulelearning(dependencymodelling)– Searches for relationships between

variables. For example, a supermarket might gather data on customer purchasing habits.
Using associa�on rule learning, the supermarket can determine which products are frequently
bought together and use this informa�on for marke�ng purposes. This is some�mes referred
to as market basket analysis.

3. Clustering–isthetask of discovering groups and structures in the data that are in some way
or another "similar", without using knowing the structures in the data.

4. Classification–isthetaskofgeneralizing known structure to apply to new data. For example,

an email program might a�empt to classify an e-mail as "legi�mate" or as "spam".

5. Regression–attemptstofind a function that models the data with the least error that is, for
es�ma�ng the rela�onships among data or datasets.

6. Summarization–providing a more compact representation of the data set, including

visualiza�on and report genera�on.

BUSINESS ANALYTICS

Business analy�cs (BA) is the itera�ve, methodical explora�on of an organiza�on's data, with an
emphasis on sta�s�cal analysis. Business analy�cs is used by companies that are commi�ed to making
data-driven decisions. Data-driven companies treat their data as a corporate asset and ac�vely look
for ways to turn it into a compe��ve advantage. Successful business analy�cs depends on data quality,
skilled analysts who understand the technologies and the business, and an organiza�onal
commitment to using data to gain insights that inform business decisions.
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BUSINESS ANALYTICSVS. BUSINESS INTELLIGENCE

While the terms business intelligence and business analy�cs are o�en used interchangeably, there are
some key differences:

INFORMATION TECHNOLOGY

Informa�on Technology (IT) is a business sector that deals with compu�ng, including hardware,
so�ware, telecommunica�ons, and generally anything involved in the transmi�al of informa�on or
the systems that facilitate communica�on. Informa�on technology (IT) is the use of computers to
store, retrieve, transmit, and manipulate data, or informa�on, o�en in the context of a business or
other enterprise. The field of informa�on technology (IT) covers the design, administra�on, and
support of computer and telecommunica�ons systems. Some of the posi�ons in this field include
database and network administrators, computer support specialists, computer scien�sts, so�ware
programmers, and system analysts. The majority of career tracks in IT entail design and opera�onal
tasks related to computer hardware components, networks, and so�ware applica�ons.

INTERNETOFTHINGS

The Internet of things (IoT) is a compu�ng concept that describes the idea of everyday physical objects
being connected to the Internet and being able to get themselves iden�fied by other devices. The
Internet of Things (IoT) is the network of devices, vehicles, and home appliances that contain
electronics, so�ware, actuators, and connec�vity, which allows these things to connect, interact and
exchange data. IoT involves extending Internet connec�vity beyond standard devices, such as
desktops, laptops, smartphones, and tablets, to any range of tradi�onally dumb or non-internet-
enabled physical devices and everyday objects. Embedded with technology, these devices can
communicate and interact over the Internet, and they can be remotely monitored and controlled.
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Recommended video: h�ps://www.youtube.com/watch?v=QSIPNhOiMoE#ac�on=share

ARTIFICIALINTELLIGENCE(AI)

Ar�ficial intelligence (AI) refers to the simula�on of human intelligence in machines that are
programmed to think like humans and mimic their ac�ons. The term may also be applied to any
machine that exhibits traits associated with a human mind, such as learning and problem-solving. The
goals of ar�ficial intelligence include learning, reasoning, and percep�on. AI is con�nuously evolving
to benefit many different industries. Machines are wired using a cross-disciplinary approach based on
mathema�cs, computer science, linguis�cs, psychology, and more. Algorithms o�en play a very
important part in the structure of ar�ficial intelligence, where simple algorithms are used in simple
applica�ons, while more complex ones help frame strong ar�ficial intelligence.

Applicationsof Artificial Intelligence

Read more at h�ps://www.edureka.co/blog/ar�ficial-intelligence-applica�ons/

MACHINELEARNING

Machine learning is an applica�on of ar�ficial intelligence (AI) that provides systems with the ability
to learn and improve from experience without being explicitly programmed automa�cally. Machine
learning focuses on the development of computer programs that can access data and use it to learn
for themselves. The process of learning begins with observa�ons or data, such as examples, direct
experience, or instruc�on, in order to look for pa�erns in data and make be�er decisions in the future
based on the examples that we provide. The primary aim is to allow the computers to learn
automa�cally without human interven�on or assistance and adjust ac�ons accordingly.

CLOUDCOMPUTING
Cloud compu�ng is the delivery of different services through the Internet. These resources include
tools and applica�ons like data storage, servers, databases, networking, and so�ware. Rather than
keeping files on a proprietary hard drive or local storage device, cloud-based storage makes it possible
to save them to a remote database. As long as an electronic device has access to the web, it has access
to the data and the so�ware programs to run it. Cloud compu�ng is a popular op�on for people and
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businesses for a number of reasons, including cost savings, increased produc�vity, speed and
efficiency, performance, and security.

Typesof CloudComputing

Cloud compu�ng is not a single piece of technology, like a microchip or a cellphone. Rather, it's a
system primarily comprised of three services: So�ware-as-a-service (SaaS), infrastructure-as-a-service
(IaaS), and pla�orm-as-a-service (PaaS).

Read more at h�ps://www.trianz.com/insights/revolu�on-that-is-cloud-compu�ng

BLOCKCHAIN

A blockchain is a constantly growing ledger which keeps a permanent record of all the transac�ons
that have taken place in a secure, chronological, and immutable way. Blockchain can only be updated
by consensus between par�cipants in the system, and when new data is entered, it can never be
erased. The blockchain contains a true and verifiable record of each and every transac�on ever made
in the system.

Let's breakdown the defini�on,

1. Ledger:Itisa file that is constantly growing.

2. Permanent:Itmeansonce the transaction goes inside a blockchain, you can put up it
permanently in the ledger.
3. Secure:Blockchain placed informa�on in a secure way. It uses very advanced
cryptography to make sure that the informa�on is locked inside the blockchain.
4. Chronological:Chronologicalmeans every transaction happens after the previous
one.
5. Immutable:Itmeansas you build all the transaction onto the blockchain, this ledger
can never be changed.

The primary use of blockchains is as a distributed ledger for cryptocurrencies. It shows great promise
across a wide range of business applica�ons like Banking, Finance, Government, Healthcare,
Insurance, Media and Entertainment, Retail, etc.

CRYPTOCURRENCY

A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly
impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based
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on blockchain technology—a distributed ledger enforced by a disparate network of computers. A

defining feature of cryptocurrencies is that they are generally not issued by any central authority,
rendering them theore�cally immune to government interference or manipula�on. The word
"cryptocurrency" is derived from the encryp�on techniques which are used to secure the network.
Blockchains, which are organiza�onal methods for ensuring the integrity of transac�onal data, is an
essen�al component of many cryptocurrencies. Cryptocurrencies are systems that allow for the
secure payments online which are denominated in terms of virtual "tokens," which are represented
by ledger entries internal to the system. The first blockchain-based cryptocurrency was Bitcoin
launched in 2009, which s�ll remains the most popular and most valuable. Bitcoin's success has given
rise to a number of similar cryptocurrencies called altcoins: Namecoin, Litecoin, PPCoin, etc.
MIS (MANAGEMENT INFORMATIONSYSTEMS)

MIS is the acronym for Management Informa�on Systems. In a nutshell, MIS is a collec�on of systems,
hardware, procedures, and people that all work together to process, store, and produce informa�on
that is useful to the organiza�on.

Componentsof MIS
The major components of a typical management informa�on system are;

● People–people who use the information system

● Data–the data that the informa�on system records
● BusinessProcedures–proceduresputinplace on how to record, store and analyze data
● Hardware–theseinclude servers, worksta�ons, networking equipment, printers, etc.
● Software–these are programs used to handle the data. These include programs such as
spreadsheet programs, database so�ware, etc.

Threemajor levels of usersin an organizationand the type of information systemthat they use:

AGILE DATASCIENCE

Agile Data Science is an approach to data science centred around web applica�on development. It
asserts that the most effec�ve output of the data science process suitable for effec�ng change in an
organiza�on is the web applica�on. It says that applica�on development is a fundamental skill of a
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data scien�st. Therefore, doing data science becomes about building applica�ons that describe the
applied research process: rapid prototyping, exploratory data analysis, interac�ve visualiza�on, and
applied machine learning.

VIRTUALREALITY(VR)

Virtual reality (VR) means experiencing things through our computers that don't exist. Unlike
tradi�onal user interfaces, VR places the user inside an experience. Instead of viewing a screen in front
of them, users are immersed and able to interact with 3D worlds. By simula�ng as many senses as
possible, such as vision, hearing, touch, even smell, the computer is transformed into a gatekeeper to
this ar�ficial world. VR is being applied in the fields of educa�on, scien�fic visualiza�on, medicine,
industrial design and architecture, games and entertainment, etc.

AUGMENTED REALITY(AR)
Augmented reality (AR) is the real-�me use of informa�on in the form of text, graphics, audio, and
other virtual enhancements integrated with real-world objects. It is a mixture of real-life and virtual
reality, somewhere in between the two, so it's o�en referred to as mixed reality. Pokémon Go is a
popular video game that uses augmented reality.
Industries like manufacturing, u�li�es, telecommunica�ons, retail, healthcare, and logis�cs are
increasingly adop�ng AR for a variety of uses, including assembly, maintenance and repair, educa�on
and training, retail showcasing, and diagnos�cs.

BEHAVIOURAL ANALYTICS
Behavioural analy�cs is a subset of business analy�cs which focuses on finding out how and why
people behave the way they do when using e-commerce pla�orms, social media sites, online games,
and any other web applica�on. Behavioural analy�cs is a recent advancement in business analy�cs
that reveals new insights into the behaviour of consumers on e-commerce pla�orms, online games,
web and mobile applica�ons, and IoT.
Behavioural analy�cs take business analy�cs’ broad focus and narrows it down, which allows one to
take what seem to be unrelated data points and then extrapolate, determine errors, and predict future
trends. Mostly, it is used to drive poten�al customers to specific products or adver�sements. All of
this is done through the data exhaust that has been generated by users. The data being recorded are
user trails such as clicks, naviga�on paths, purchasing decisions, and viewed adver�sements.
However, some feel that the systems put in place to collect data are harmful and intrusive, worrying
that everything they do is tracked and monitored.
INDUSTRY4.0

Industry 4.0 refers to the fourth phase of the industrial revolu�on and addresses the need for
connectedness and access to real-�me insights across processes, partners, products, and people for
all companies and organiza�ons. It also some�mes referred to as IoT or smart manufacturing. Industry
4.0 is the link of physical produc�on and opera�ons with smart digital technology, machine learning,
and big data to create a more holis�c and be�er-connected ecosystem for companies that focus on
manufacturing and supply chain management. Industry 4.0 offers a more comprehensive, interlinked,
and holis�c approach to manufacturing.
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Design principles that allow manufacturers to inves�gate a poten�al transforma�on to Industry 4.0
technologies are -

1. Interoperability
2. Virtualiza�on
3. Decentraliza�on
4. Modularity

Interes�ng Reads for Industry 4.0: h�ps://www.cleverism.com/industry-4-0/

Interesting Reads:

1. Gartner: 5 trends shaping analy�cs and business intelligence

h�ps://www.informa�on-age.com/gartner-analy�cs-and-business-intelligence-123485553/

2. IT companies go all out to stop a�ri�on of skilled young staff

h�ps://economic�mes.india�mes.com/tech/ites/it-companies-go-all-out-to-stop-a�ri�on-of-skilled-
young-staff/ar�cleshow/70693130.cms?from=mdr

3. Advanced Analy�cs: A Look Back at 2019 and What’s Ahead for 2020

h�ps://tdwi.org/ar�cles/2019/12/20/adv-all-advanced-analy�cs-2019-in-review-and-2020-
predic�ons.aspx

4. The importance of customer journey in the digital era

h�ps://cio.economic�mes.india�mes.com/news/corporate-news/the-importance-of-customer-
journeys-in-the-digital-era/72341480

5. When Is It Ethical to Not Replace Humans with AI?

h�ps://www.informa�onweek.com/big-data/ai-machine-learning/when-is-it-ethical-to-not-replace-
humans-with-ai/a/d-id/1336661?
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HumanResources Management
Important HRQuestions

1. Tell me something about yourself in brief?

2. What are your strengths and weaknesses?
3. What do you like so much about yourself?
4. Why do you want to go for an MBA?
5. Tell us about your family background?
6. Have you worked in an NGO?
7. Summarise the WAT topic given to you?
8. Apart from IIM Rohtak, from how many colleges did you get the call?
9. Tell me what parameters you will look for choosing a college?
10. What are your short-term and long-term goals?
11. Tell me about the last book you’ve read?
12. Tell me about yourself in a line?
13. Why should we select you over others?
14. Tell us your preference order of IIMs?
15. Which was your favourite subject in undergraduate?
16. How well do you work under pressure?
17. Describe an incident from your internship period or your college �me where you faced any
issue in dealing with people, and how did you resolve it?
18. What did you learn from that incident?
19. Tell us one incident that made you incredibly proud of yourself?
20. Difference between management and leadership?

What isHumanResource?

Human resource is used to describe both the people whowork for a company or organisa�on and the
department responsible for managing resources related to employees. The term human resource was
first coined in the 1960s when the value of labour rela�ons began to garner a�en�on, and when
no�ons such as mo�va�on, organisa�onal behaviour, and selec�on assessments began to take shape.

Roles and Responsibilities of HR?

• Par�cipate in Planning and Development

• Provide Employees With Career Assistance
• Find and Recruit Employees That Advance Company Objec�ves
• Serve as Leaders of Change
• Advocate for Employees
• Provide Support for Domes�c Violence Vic�ms
• Ensure No Cyberbullying at Work

Some HR-related concepts

1. 7Sʼ framework:
The model is based on the theory that, for an organisa�on to perform well, these seven elements need
to be aligned and mutually reinforcing. So, the model can be used to help iden�fy what needs to be
realigned to improve performance or to maintain alignment (and performance) during other types of
change. The 7S’s are the structure, strategy, systems, skills, style, staff and shared values.
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2. HRAnalytics:
HR analy�cs, also called people analy�cs, is a data-driven approach to managing people at work. HR
analy�cs helps to quan�fy if and how HR processes contribute to organisa�onal objec�ves.

3. Job demands-resourcesmodel:
The model proposes that every occupa�on has its own specific risk factors associated with job stress.
These factors can be classified into two general categories. These are job demands and job resources.

The model shows that job demands lead to strain (and eventually burnout), while job resources lead to
mo�va�on (and ul�mately engagement). Job demands are driven by the mental, emo�onal and
physical needs of the job, which are mainly influenced by work overload and �me pressure.

4. Employee Experience:
Employee experience offers a somewhat new perspec�ve to doing HR. Where employee engagement
is seen as an employment outcome; employee experience is the way HRM is perceived. It is thus seen
as a driver of employee and organisa�onal outcomes.

Because employee experience is such a novel topic, it hasn’t caught on in literature (yet). Further
studies will have to show if the business outcomes associated with employee experience are similar to
those in employee engagement.

What isHRStrategy?

HR Strategy is the strategy adopted by an organisa�on which aims at integra�ng an organisa�on's

culture, its employees and system by coordina�ng a set of ac�ons to get the required business goals.
Therefore, it must be aligned to called mission, vision and goals.

What are the HRobjectives?

The purpose of Human Resource Management lies in the successful u�lisa�on of people to a�ain
specific as well as organisa�onal goals. This includes both the personnel (i.e., hiring employees and
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upholding employee informa�on); and payroll func�on (retaining the employee informa�on
associated with employee payment).

Why isHRimportant?

Human Resource Management deals with issues related to compensa�on, performance management,
organisa�on development, safety, wellness, benefits, employee mo�va�on, training and others. HRM
plays a strategic role in managing people and the workplace culture and environment.

What are the HRcompetencies?

The business competencies that HR professionals need to be effec�ve in the workplace are effec�ve
communica�on; consulta�on; ethical prac�ce; cri�cal evalua�on; business acumen; leadership and
naviga�on; technical exper�se; cross-cultural awareness, and rela�onship management.

What isHRexcellence?

Human Resource Excellence´ is about “Improving the performance of organisa�ons through the
performance of people”. Human Resource Excellence is an Interna�onal Standard which allows
Mul�na�onal Organisa�ons to adapt and implement the ethos and spirit.