i.

ASP(Auto)/MBA 3002/Sem-III/Jan-Feb 2014

Third Semester M.B.A (CBCS) Degree Examination January, 2014

Strategic Management
Time : 3 Hours [ Max.Marks.50]

SECTION -A
I. Answer any Five of the following in a sentence or two. (5x2=IO Marks)
a) What do you mean by environmental scanning?
b) Differentiate between core competency & distinctive competency.
c) What is portfolio analysis?
d) Give the meaning of synergy.
e) Distinguish between concentric & conglomeratic diversification.
±) What is meant by triggering event? Give examples.
g) What is hyper competition?

SECTION -B (5x4=20 Marks)

II. Answer any Four of the following in brief.
1. Write a note on BCG Matrix.
2. What is code of ethics? How is it useful to a business organisation?
3. Strategic alliance is an order of the day. Do you agree with the statement?
Comment & substantiate.
4. Write a note on PEST analysis.
5. Discuss basic Business Models.
6. What is value chain analysis? How is it done?

SECTION -C
(lxIO=IO Marks)
III. Answer any One of the following in detail.
1. Analyse the potentiality of Indian retail industry using Michael Porter sin force
model.
2. Discuss the problems in implementation of a strategy. Take an example of a
strategy and explain how do you evaluate its effectiveness?

Page 1 of2
 ASP(Auto)/MBA 3002/Sem-III/Jan-Feb 2014

SECTION -D (10 Marks)

IV)
Case Study:
Read the analyze and answer the questions given at the end of case:

Sweet Drinks Ltd is a drinks company whose core business is manufacturing and
selling soft drinks to 80,000 outlets throughout India. The business of the company is
good with annual turnover exceeding three billion of rupees. Profits are good and
shareholders are often rewarded with lucrative dividends and bonuses. Four years
back the company has diversified into the alcoholic drinks industry and has taken-
over two small breweries located in western India. The company has also diversified
into hotels with purchase of twenty- five hotels of three/four star category across the
country. To its advantage the company has been able to obtain a monopoly for the
sale of its soft drink in its hotels and is beginning to establish itself as a brand name in
the brewery industry. Part of the strategy of the company is to continue to purchase
hotels, particular by targeting National Capital Region of Delhi where tourism is
likely to pick up with the forthcoming Commonwealth Games. The company also
intends to construct a five star hotel in Ourgoan to take tax advantage announced
recently by the finance ministers. Everything was going on well until recently, when
a Public Interest Litigation from NOO accused the company of indulging in surrogate
advertising of its brewery products. In fact the company has similar brand names for
its soft drinks and brewery products. In fact the company has similar brand names for
its soft drinks and brewery products. This triggered a lot of protests and
demonstrations against the company. Newspapers were flooded with the articles
against the company. There were also some dem~nstrations and some small incidents
of stone pelting in a few of its hotels.

Answer thefollowing questions:

1) Explain how Sweet Drinks Ltd is achieving synergy?
2) Explain the nature of diversification adopted by the company.

*****

Page 2 of2
 ASP(Auto)/MBA 3004//Sem-IlI/Jan-Feb 2014

THIRD SEMESTER M.B.A (CBCS) DEGREE EXAMINATION JANUARY,20 14

Services Marketing
Time : 3 Hours [ Max.Marks.50]

SECTION - A
L Answer any Five of tilefolio wing in a sentence or two. (5x2=10 Marks)
a) What is meant by 'Emotional Labour'?
b) What are 'Transitory Service Intensifiers'?
c) What is Provider GAP-I? And how to overcome the Gaps?
d) What. do you mean by 'Mystery Shopping'?
e) What do you mean by Offensive Marketing and Defensive Marketing with respect to Service
Marketing?
f) What do you mean by Word of mouth with respect to services?
g) What do you mean by 'Service Scapes'? Give two examples of it.
h) Name four E-Services.

SECTION -B
(5x4=20 Marks)
IL Answer any Four of tilefolio wing in brief.
I. What do you mean by 'Service Quality'? Explain the dimensions on which quality of service
depends.
2. What do you mean by zone of Tolerance with respect to services? Explain with illustrations.
3. Proper alignment of 'Service Marketing Triangle' leads to success. Explain this statement
taking into account the players in the triangle.
4. Explain the specific strategies and tactics to build 'Customer Relationship'.
5. What are the marketing implications of the characteristics of 'Intangibility' in services? Plot
the following on the contium line (Tangibility to Intangibility)
a) Teaching b) Fast Food out let
c) Beauty parlour d) Management Consultancy
6. Write Short Notes On:
a) Boundary Spanning roles of employees in services.
b) Service Profit Chain.
SECTION -C
IlL Answer any One of tile following in detail. (lxl0=10 Marks)
1. Highlight the process for setting customer defined standards. Substatiate your explanation
with an illustration of hard t? soft. Customer standards adopted by any successful company.
2. Explain the Human Resource Strategies for delivering service quality through people with a
diagrammatic representation. Also mention their role in service recovery strategies adopted
by firms.
3. a) Draft a Blue print for a overnight hotel stay.
b) Explain the Marketing Mix: Stressing on additional Ps for Hotel Industry.

SECTION -D (10 Marks)

Analyse tile Case in detail and answer tile questions:
Imagine a retail outlet where you can video chat with near and dear ones living abroad sip
cappuccino coffee and play online games, conduct video conference with your colleague residing at
a far off place and purchase mobile connections and handsets. All this is possible at Reliance
Infocomm's retail interface 'Reliance Web World', a one-stop shop for all digital communication

Page 1 of2
 ASP(Auto)/MBA 3004//Sem-III/Jan-Feb 2014

and entertainment needs of an individual. At present (2004) Reliance has 240 Web World outlets
spread across the country and plans to gradually extend to 2000 outlets. Each Web World outlet in a
bigger city has a retail space of 4,000 sq.ft, and 500 sq.ft for smaller towns. The Web World outlet
has three modules, a customer convenience centre, JavaGreen gourmet coffee bar and a broadband
centre. The customer convenience centre acts as sales and service centre for the Reliance Infocomm
products and services, while JavaGreen would enable the customer to relax. The broadband centre is
where the company provides various services including, video chat, online gaming, digital photo
imaging and virtual office. According to Sarup Chowdhary, CEO, Reliance Web World, Web World
caters to the needs of a wide range of customers, In the mornings, these outlets are used by business
people and professionals who use video conferencing facility as well as retail customers who are
interested in purchasing the Reliance Infocomm products and·services. During afternoons, Webworld
runs a "Little Genius" classroom program that teaches computers and internet to school children. The
company also runs "Cybermoms" programs for mothers. During evenings the outlets attract the
serious garners who are interested in playing multi-player online games on the hi-speed broad band
Internet. The evenings also attract serious surfers. Chowdhary adds that the Web world outlets have
permission to operate 24 hours a day. Reliance plans to offer other value-added services like digital
music, where customers can select the songs of their choice and burn them on the CD's.
Since the company plans to offer broad band Internet service to the home segment, these outlets will
act as sales and service centre for these services. The company also plans to screen movies at these
outlets as it has designed the furniture in a modular fashion so that these can be rearranged to change
the outlet into a small movie theatre accommodating 40 people.
Apart from these full-fledged outlets, Reliance also set up a chain of Web World Express
outlets which does not have the coffee bar and broadband center facilities. These outlets act only as
sales and service outlets for the Reliance Infocomm products and services. The company set up
nearly 500 such outlets till the end of2004 and planning to increase eventually to 1000 outlets.
In order to popularise the Web World, Reliance undertook various promotional campaigns. In
November 2003, the company conducted an All India PC gaming championship at its Web World
outlets. It hosted the PC version of Microsoft's popular digital game Halo, with prize money ofRs. 2
lakhs. The winner getting Rs. 1 lakh worth of cash and an a'll-expenses paid trip to Los Angeles to
participate in the Halo World Championships. Nearly. 4000 contestants participated in this
championship. Reliance ran various e-togethers with popular film personalities through Show time
movie promo events. Through these events, the company facilitated multi-point to multi-point video
chat and video conference between popular film personalities and customers. Reliance has run these
events for various films including Morning Raga, Kal Ho Naa Ho, Koi Mil Gaya and Munnabahi
MBBS.
Questions: (each questions carries 2.5 marks)
1) Unlike the product manufacturer, a service provider faces difficulties in meeting the demand
due to capacity constraints. What are the possible capacity constraints that Reliance might
face in matching demand with supply at its Web World outlets?
2) Matching demand with the available capacity is a challenging task for any service provider
due to the presence of various capacity constraints. What are the various measures Reliance
has taken to match existing capacity with demand?
3) Describe the four basic waiting line strategies- when demand and capacity cannot be aligned
and give an example of each one preferably based on your experience as a consumer.
4) Analysis.
*****
Page 2 of2
 ASP(Auto)/JvfBA 3009/Sem-III/Jan-Feb 201-1

THIRD SEMESTER .B.A (CBCS) DEGREE EXAMINATION JANUARY,20 14

rporate Tax lanning

Time: 3 Hours [Max.Marks.50]

SECTION -A
I. Define any Five of the following in a sentence or two. (5x2=10 Marks)

a) Expand DDT (as per IT Act)

b) arne any two tax face incomes.
c) Write note on section 80G ofIncome Tax Act.
d) Who is an "ordinarily Resident"?
e) What are perquisites? Name two perquisites.
f) What is cess?
g) Write about PAN.

SECTION - B (5x4=20 Marks)

II. Answer any FOllr oftltefollowillg in brief.
1. What do you mean by Tax Evasion and Tax Avoidance? Differentiate between Tax management
and Tax planning.

2. Following are the incomes of Mahaveer for the previous year 2012-13:

a) Profit from business in Dharwad RS.7000.

b) Income occurred in India but received in Italy RS.6,OOO.
c) Profit from business in England received in India RS.5000.
d) Income from house property in Africa received in India RsA,OOO
e) Profits from business established in Iran and deposited in a bank there, the business being
controlled from India Rs.3,000.
f) Income from house property in Pakistan and deposited in a bank there Rs.2,000.
g) Past untaxed foreign income brought into India during the previous year RS.I ,000.

Compute the total income of Mr. Iahaveer for the assessment year 2013-14 if he is

1) Resident 2) Non-ordinarily resident 3) Non-resident

Pagelof4
 ASP(,4.uto)/l'vIBA 3009/Sem-JII/Jan-Feb 201-1

3. From the following Profit and Loss Account of Mr.Shridhar compute his gross total income
for .Y 2013-14.

Salary to staff 30,000 Gross profit 1,72,000

Salary to proprietor 6,000 Interest on Govt Securities 4,150
Rent and taxes 2,000 Capital Gains (Short-term) 2,500
Printing and stationery 500 Bad debts recovered 300
(Previously allowed)
Trade expenses 1,300 Sandry receipts 250
Sales Tax Paid 1,200
Bad debts Reserve 2,400
Bad Debts Written- 600
off
Telephone Expanse 300
Interest on Capital 3,000
Interest on Loan 700
Donations 200
Repairs to furniture 350
Legal fees 1,250 -
Pooja Expenses 500
Depreciation 3,900
Net Profit 1,25,000
Total 1,79,200 Total 1,79,200

Other Information:
i. Trade expenses include RS.300 being penalty paid to ~ustoms authorities.
ii. Stationery includes RS.I 00 being cost of college books of Mr.Shridhar's Son.
iii. Legal expenses are increased on purchase of land.
iv. Depreciation allowable as per rules is Rs.3,000.

4. New Industries Ltd., a domestic company wants to setup a new manufacturing unit. You as a
consultant enumerate and explain exceptions and deductions available based on location, nature and
size of a business.

5. Mr.Sohan is the owner of a house (consisting of two equal units) of Muncipal value ofRs.30,000 He
resides in one tmit of the house and the remaining unit has been let out on a rent of RS.2,000 per
month. The following are the ~xpenses relating to the house:

Municipal taxes 4000

Land revenue 400
Repairs to house 1000

Interest for the year on loan for construction 3,200. His income from all other sources
amounted to RS.l ,60,000 during the previous year.

Compute his gross total income for the assessment year 2013 -20 14.

Page 2 of4
 ASP(Auto)/ly[BA 3009/Sem-llI/Jan-Feb 201-1

SECTION -C
(lx10=10 Marks)
III. Answer any One of the following in detail.
1. Mr.Ram has received offers from companies of Mumbai for services as under:
Offer of company
X Y
Basic salary 8,00,000 5,00,000
HRA -- 70,000
Travelling allowance -- 25,000
(for coming to office from residence
and back)
Car for personal use -- 1,65,000
Telephone Bill -- 15,000
Education allowance for 2 children -- 10,000
Hostel allowance for 2 children -- 15,000
8,00,000 8,00,000

Other information's are:

1) His qualifying savings U/S 80 C will be Rs.50,000
2) He pays house rent ofRs.8,000 p.m
3) He needs car and telephone for personal purpose.
Which offer would be accept and why?

2. Miss Bhama of Mangalore furnishes you the following infomiation for the previous year 2012-2013
in connection with capital assets which may be :
a. Residential house.
b. Agricultural land.
c. Jewellary
Particulars of assets.

1) Year of Purchase 1992-93

2) Cost of Purchase ~ 4,46,000
3) Year of Sale 2012-13
4) Selling price 32,98,000
5) Selling expenses 24,000

She purchased a residential house for t 10,00,000 on 01-03-2013 The cost inflation index for '
the previous year 1992-93: 223 and for previous year 2012-13 : 852.

Page 3 of 4
 ASP(Auto)/~fBA 3009/Sem-IlLIJan-Feb 201./

Questions:
a) Compute the taxable capital gain for the assessement year 2013-2014:
1. The capital asset sold is a residential building.
11. The capital asset sold is jewellary.
111. The capital asset sold is agricultural land. (Urban area)

b) Which asset do prefer while computing long-term capital gane?

c) Give your opinion / remarks regarding treatment of capital assets for ascertaining capital gain which
is more beneficial to the assessee.

SECTION -D (10 Marks)

IV. Answer the given case:
Kwality Electronics Ltd., is a domestic company. In which public are substantially interested. The
following are the particulars of income in respect of the previous year 2012-13.

i) Interest on Govt Securities 20,000

ii) Income from business 5,00,000
iii) Short -term capital gain.s 15,000
iv) Long-term Capital gains 33,000
v) Dividend from Indian company (gross) 10,000
vi) Dividend from foreign company 10,000

viii) Book profit U/S 115-5B 9,00,000

Compute company's total income and its net tax liability.

Page 4 of 4
 ... ASP(Auto)/MBA 3010/Sem-III/Jan-Feb 2014
THIRD SEMESTER M.B.A (CBCS) DEGREE EXAMINATION JANUARY, 2014

Security Analysis & Portfolio Management

Time: 3 Hours [Max.Marks.50]

SECTION -A
I. Answer any Five of the following in a sentence or two. (5x2=10 Marks)
a) What is the current trend in stock market?
b) What is PIE ratio? .
c) What is Dow Theory?
d) What are resistance and support levels?
e) Write note on "NIFTY".
f) Write your views on "Bonus Issue".
g) What is Defensive Stock?
SECTION -B
(5x4=20 Marks)
II. Answer any Four of thefolio wing in brief
1. What is EMH? Explain three forms of market efficiency.
2. Define Risk. Distinguish between systematic risk and unsystematic risk.
3. Discuss the various investment avenues suitable to the following types of
investors. Give your expert advice to each type investor.
a) A bachelor just employed.
b) A person near to his retirement.
4. Calculate five day moving average of daily closing prices from given
information.
Trading day: 1 2 3 4 5 6 7 8 9 10
Closing price: 75 78 76.50 74 80 79 83 85 81 86
What is the short term trend?
Is it giving buy signal or sell signal?
5. The possible returns and associated probabilities of securities A and Bare
given below:
Security A Security B
Probability Return (%) . Probability Return (%)
0.10 28 0.15 23
0.15 8 0.20 6
0.40 13 0.30 10
0.25 17 0.25 13
0.10 18 0.10 16
On the basis of risk and return; Give the security of your preference.

Page 1 of2
 ASP(Auto)/MBA 3010/Sem-IIl/Jan-Feb 2014
6. Find the Beta value of the stock from the data given
India Return (%) Stock Return (%)
Rm Ri
25 28
28 31
20 18
24 20
30 33
40 44

SECTION -C (lxl0=10 Marks)

III. Answer any One.
1. The following table gives the key statistics for two of the Indian companies in the
same sector during a particular year. On the basis of the given data suggest any
one of the company for investment. Substantiate your conclusion.
Company-A Company-B

Sales (Rs. Cr) 3500 1050

Net Profit (Rs. Cr) 390 70
Equity (Rs. Cr) 120 24
Book value (Rs.) 180 80
EPS (Rs.) 33 30
PIE Ratio 17 16
RONW% 18 36
Dividend % 80 50

2. What is meant by Fundamental Analysis? Explain company analysis in detail.

SECTION -D
(10 Marks)
IV. Answer thefollowing Question:
With the given details, rank the funds using Sharpe, Treynor and Jensen
performance evaluation techniques.
Fund Return Standard Deviation Beta
A 2 20 0.98

B 12 18 0.97
C 8 22 1.17
Market 9 24 -

Risk free return is 5%

*****
Page 2 of2

•. ~!
 ASP (Auto)/MBA 3012/Sem III/Jan 2014
THIRD SEMESTER MBA DEGREE EXAMINATIONS JAN~FEB 2014

Organizational Development and Institutional Building

Time: _ Hour [ Max.Marks.50]

PART-A
(5 x 2= 10Marks)
Q 1. An weI' any Five of the following questions.
a Define Organizational Culture.
nat is change managem~nt?
c Define aD.
d) Explain the characteristics of aD.
e) Define Diagnosis.
£) Briefl explain the difference between internal & external change agent.
g) Explain aD intervention.

PART-B (4 x 5= 20Marks)
Q.II Answer any Four of th efollo wing questions.
1. Explain the diagnostic process in detail.
2. What are the strategies to overcome resistance to change?
3. Explain the golden rules of a change agent.
4. Explain the Lewin's Model.
5. Discuss the client consultant relations in aD.
6. Discuss the role ofTQM in aD.

PART-C
(1 x 10= 10Marks)
Q.III Answer anyone of tlte following.
1. As on OD consultant of a large size manufacturing unit which model will you
adopt to bring out a transformational change? Explain and justify.
2. What are the issues that arise in aD consultant client relationship and how to
prevent or resolve the same?
3. What are the goals of team development aD interventions? Discuss the issues
involved in implementing team development intervention.

PART-D
CASE STUDY (10 x 1= 10Marks)
THE OLD FAMILY BANK
The Old Family Bank is a large bank in southeastern city. As a part of a
comprehensive internal management study. H.Day the data processing vice president,
examined the turnover, absenteeism, and productivity figures of all work groups in the
organization. The results Day obtained contained no real surprises except in the case
of the check sOliing and data processing departments. .

Page 1 of2
 ASP (Auto)/MBA 3012/Sem llI/Jan 2014
THE STUDY
The study revealed that in general the fact department displaying high turnover
and absenteeism rates had low production figures, and those with low turnover and
absenteeism were highly productive. When analysis began on the check sorting and
data processing figures, Day discovered that both departments were tied for the lead
for the lowest turnover and absenteeism figures. What was surprising was that the
check-sorting depmiment ranked first as the most productive unit, whereas the
electronic data-processing department ranked last.
The inconsistency was fmiher complicated by the that the working conditions
for check-sOliing employees are extremely undesirable. They work in a large open
room that is hot in the summer and cold in the winter. They work alone and operate
high-speed check sorting machines requiring a high degree of accuracy and
concentration. There is little chance for interaction because they all take rotating
coffee breaks. The computer room is air-conditioned, with a stable temperature the
year round' it has perfect lighting and is extremely quiet and convertible. It was known
that both groups are highly cohesive and that the workers function well with other in
their department. This observation was reinforced by the study's finding of the low
Ie els of turno er and absenteeism.

THE I TERVIEW DATA

In an effort to understand this phenomenon, vice president day decided to

interview the members of both departments. Day hoped to gain some insight into the
dynamics of each group's behavior. It was discovered that the check-sorting
depmiment displayed a great deal of loyalty to the company. Most of the groups are
unskilled or semiskilled workers, although they have no organized union, and each
person felt that the company had made special efforts to keep their wages and benefits
in line with organized operations. They knew that their work required team effort and
were committed to high performance.
A quite different situation existed in the data - processing department. Although
the workers liked their fellow employees, there was a uniform feeling among this
highly skilled group that management placed more emphasis on production than on
staff units. It was their contention that pay increases had been better for operating
department and that the gap between the wage earners and salaried employees did not
reflect the skill differences. Because of that, a large percentage of the group displayed
little loyalty toward the company, even though they were very close among
themselves.
Q 1. Discuss the role of OD consultant. Identify the possible modes through which
consultant and client relate to each other.

Q2. Identify the issues that need to be considered while developing the effective
client-consultant relationship.

*****

Page 2 of2
 ASP(Auto)/MBA 3014//Sem-III/Jan-Feb 2014

Third Semester M.B.A (CBCS) Degree Examination January, 2014

Human Resource Development
Time: 3 Hours [ Max.Marks.50]

SECTION -A
I. Answer any Five of the following in a sentence or two. (5x2=10 Marks)
a) What is 'Performance audit'?
b) What do you mean by "Intuitive child' in child ego state?
c) Mention merits & demer,its of job rotation.
d) What do you mean by redundancy counseling? Give example.
e) Distinguish between personnel management & Human Resource Development.
±) What do you mean by Behavior Modeling?

SECTION - B (5x4=20 Marks)

II. Answer any Four ofthefollowing in brief.
1. What does training include? Why is training so important for the workers?
2. What do you mean by strokes? Explain the ego states of transaction analysis.
3. Write short notes on: (any 2)
i) Orientation programmes.
ii) Pre-departure training
iii) Rituals
4. Define HRD. How do they affect development of an organisation? Explain with
suitable examples.
5. How international assignment can be used as a tool for training & development
of an employee?
6. What is Performance Appraisal? Explain any two methods of Performance
Appraisal with a suitable example.

SECTION -C
(lx10=lO Marks)
III. Answer any One of titefollowing.
1. Explain how to go about with the counseling programme? How can
organisation help employees to cope with stress?
2. Provide an insight into the process of orientation & induction. Discuss the
major points that should be considered while designing an orientation and
induction programme for new employees. Draft the programme.

Page 10f2
 ASP(Auto)/MBA 3014//Sem-III/Jan-Feb 2014

SECTION -D (10 Marks)

Read the case given below and answer the questions given at the end of the case.
Direc2U
The case is about a mid-sized direct selling organization Direc2U. Sunit Verma
(Verma), the newly appointed Training Manager, has conducted a comprehensive
training need analysis (TNA) and identified the training needs at the first-line manager
level. Now he has been entrusted with the responsibility of designing the training
program. However, the Vice-president-HRD at Direc2U, VK Prasad was not
altogether satisfied with the training design that Verma has suggested as he felt that
Verma's choice of training methods and tools may not help achieve the objectives of
the training program. Verma has to now make changes in the training design so that
there is a better chance that the training program will be really successful.
a) Discuss issues and challenges in designing a training program.
b) What are the concepts, techniques and tools of training?
c) Explain the various factors to be consider in the selection of training
methods/tools.

*****

Page 2 of2
 ,_. ASP(Auto)/MBA 3015/Sem-III/Jan-Feb 2014

THIRD SEMESTER M.B.A (CBCS) DEGREE EXAMINATION JANUARY, 2014

Project and Production Management

Time: 3 Hours [Max.Marks.50]

SECTION -A (5x2=10 Marks)

I. Answer any Five of the following in a sentence or two.
a) Define Project Management.
b) Define Matrix structure in a Project Organization.
c) What is WBS?
d) What do you mean by resource loading?
e) Define Production Management.
£) What do you mean by M,ass Production?
g) List down the various types of layouts.
h) What is Aggregate Production Plan?

SECTION - B (5x4=20 Marks)

II. Answer any Four of the following in brief.
1. How will you do a Project Feasibility Analysis?
2. Discuss the Project Life Cycle with a neat sketch.
3. Discuss the life cycle of a production system in detail.
4. What do you mean by Inventory technique? Explain anyone Inventory Control
technique in detail.
5. A small Project Consists of seven activities whose time estimates are listed
below:
Activity 1-2 1-3 1-4 2-5 3-5 4-6 5-6
Optimistic 1 ,1 2 1 2 2 3
Most likely 1 4 2 1 5 5 6
Pessimistic 7 7 8 1 14 8 15
Find the expected deviation and variance of each activity.
6. A prize distribution function is to be organized. The date has been fixed with
the chief guest. Prepare a W.B.S. & draw the network. Also number the events.

Page 10f2
 ASP(Auto)/MBA 3015/Sem-lll/Jan-Feb 2014

SECTION -C (lxl0=10 Marks)

III. Answer any One of the following in detail.
1. Calculate the critical paths, total float, free float & independent float for
following network diagram.

2. Discuss in detail the factors which should be considered in identifying the

location for a factory.

SECTION -D (10 Marks)

IV.
Consider the network shown below, for which the utility data are given. Crash
systematically the activities & determine the optimum project schedule & cost.
Indirect cost is Rs. 580.
10

*****

Page 2 of2
 ASP (AlltO)/!l1BA 3010/SelJl-·JJJ/Jan-Feb 20 J 4
THIRD M.B.A (CBCS) DEGREE EXAMINATION
SEMFr &=..R JANUARY, 2014

Sales Distribution and ~ogistics Managenlent

Time: 3 Hours [Max.Marks.50]
SECTION -A
I. Answer any Five of tile following in a sentence or two. (5x2=10 Marks)
a) Define "Sales Management".
b) What do you mean by Time and Territory management?
c) \\'hat do you understand by sales control and cost analysis?
~ List the advantages of Franchising.
e) What do you mean by out bound logistics?
.A) What do you mean by channel structure?
,.gYWhat do you mean by reverse logistics?
SECTIO -B
II. Answer any Four of tile/allowing in brief. (4x5=20 Marks)
/f: Discuss the current issues in sales management.
2. Bring out the difference between product features and consumer benefits.
3. Discuss in detail the different levels of distribution channels vvith suitable examples.
4. Explain in detail the chaIUlel institutions with suitable example.
rS. Bring out the significance of 3rd party logistic service.
6. Consider an FMCG company trying to distribute its products directly to its customers.
What would be the major hurdles if this strategy is followed? What would be the
advantages and disadvantages by following this strategy?
SECTION -C (lx10=10 Marks)
Ill. Answer an)' One of the/allowing i" detail.
1. Discuss the components of channel offering with examples.
2. The major problem in designing sales territories is to define the geographic units. In
many instances, a wrong decision on the desigh of the territory may lead to functional
problems for sales managers. What are the various problems that sales manager in a
wrongly designed sales territory faces?
SECTION -D
(Compulsory)
(10Marks)
IV. Case Study: I AliI TIlE BEST
Mr. Arman Mehra works for a company that sells machine components and
spares to different rmmufactures caterin;; tv the consumer markets. The costs of these
machine components are quite high as they constitute strategic components of many
of these machines and go as a pari of the boiler used in the factory to keep the
temperature of the boiler under control. This is a conversation of Mr.
Arman Mehra with Mr. Piyush Sinha, who heads the purchasing department of a
company and is a long tenn customer for Mr. Mehra.

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 AS/) (Aulo)/MBA 3010/SeJlt.-lJI/Jan-Fcb :lU)./

'Mr. Sinha, your company has established itself as a high-quality manufacturer

that provides good products at a superior value to the customers. As a result, your
salespeople have had to continuously prove the value of your product against the
cheaper alternatives available in the market by showing the additional benefits \vhen
compared with the higher prices that YOLI charge. Do you not agree \vith this
statement?'
'I do agree with you. ] have heard sales managers discussing this with our
salesperson all the time, constantly hitting at benefits that our products deliver in
comparison to the cheaper alternatives available in the marketJ 'said Mr. Sinha.
'That is the point. Through quality costs more, it als6 pays off well for the
customer. Vic all feel the same for the products that we sell you every time. Thruugh
they cost more U1an the product you are considering now from our competitor, the
dependability of the performance is certainly something worth comparing whjle
comparing our prices with those of the competitors,' said Mr. Mehra.
'I understand that Mr. Mehra, but ollr head-quarters have instructed us to make
savings in the purchases and yours is the Imgest buying that we/are going to have this
year. As the industry conditions are bad due to availability of cheap substitutes from
China, we have to make some cost cuttings this year. That forces us to look for better
alternatives from cost point of view.' said Ivlr. Sinha.
'OK, that is something I cannot rerute, but the quality of service that our
company has given you in last few years has provided longer wear, fewer
replacements, and less d0'vn time in the production process resulting in substantial
cost saving in your organization,' said Mr. Mehra.
'I am not sure that] can agree with your statement Mr. Mehra. You are talking
about measuring something that has not happened. These can only be 1re(lled ::IS ':(I1es
claims as there is no substantial benefit observed as you are suggesting,' said Mr.
Sinha.
'Mr. Sinha, you kn0'\' very well that \ve have worked closely with your
production people and hael our service engineers st,ationed for emergency calls at
night and on weekends also. Are you saying that we didn't help your company in
saving money and achieving your sales goals?' said Mr. Mehra.
'I am not saying that. I also don't want you to twist what I am saying. What
you are referring must be a production problem and it has nothing to do \vith the
purchase department. I have been asked to reduce costs by 15%. Since you cannot
give me a lower price, I have decided to go with the competitor as their specifications
almost match to that of yours and is OK to my production people. If their products
.and services do not live up to their promise, ] will get in touch with you. ] think]
have to go for another meeting and] will see you sometime in future,' said Mr.
Sinha.
M1'. Mehra thanked Mr. Sinha and left the office with a deserted look.
Question:
What went wrong? If you are the sales manager for the company what advise will
you give to Mr. Mehra? What kind of changes Mr. Mehra shou19 have made in his
presentation?
*****
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/]
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,,
!
 ASP(Auto)/MBA 3016/Sem-III/Jan-Feb 2014

THIRD SEMESTER M.B.A (CaCS) DEGREE EXAMINATION JANUARY,20 14

Working Capital Management

Time: 3 Hours [ Max.Marks.50]

SECTION -A
I. Define any Five of tltefollowing in a sentence or two. (5x2=10 Marks) .
"

a) Why is working capital management important?

b) What is operating cycle and cash cycle?
c) What is trade discount? How is it different from cash discount?
d) List out the needs for inventory management.
e) What do you understand by 2/15 net 45?
f) List out the 5 c;s of credit.
g) What is factoring.

SECTION-B (5x4=20 Marks)

II. Answer any Four oftltefollowing in brief.
1. It has been suggested that "Cash is the life blood of business". Discuss this statement from the point
of view of Finance Manager in dynamic growing, unlisted company.

2. What are the strategies available to a firm for financing its working capital requirement?

3. Explain the various techniques of inventory management?

4. The following information is available in respect ofXYZ Ltd.,

Sales RS.800 million.
Cost of goods sold 90%

Other Balances:
01-01-2013 31-12-2013
Inventory ~ 96 million ~ 102 million
Debtors ~ 86 million ~ 90 million
Creditors ~ 56 million ~ 60 million

Calculate operating cycle and cash cycle.

5. Zenith corporation currently provides 30 days of credit to its customers. Its present level of sales is ..
Rs.50 million. The firms cost of capital is 10% and the ratio of variable cost to sales is 0.85. The
company is considering to liberalize its credit policy and extend its credit period to 60 days. Such an
extention is likely to push sales up by RS.5 million. The bad debt proportion on additional sales
would be 8%. The tax rate is 40%. What will be the effect of lengthening the credit period on the
residual income of the firm?
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 ASP(Auto)/MBA 3016/Sem-IJI/Jan-Feb 2014

6. A newly formed company has applied to the commercial bank for the first time for financing its
working capital requirement. The following information is available about the projections for the
current year.

Element of cost Per Unit

Raw Material 40
Direct labour 15
Overhead 20
85
Total cost 15
Sales 100

Other information:
1. Raw material in stock: average 4 weeks consumption, work in progress (completion stage
50%) on an average 2 weeks. Finished goods in stock; on an average 1 month.
2. Credit allowed by the supplier is one month.
3. Credit allowed to customers is two months.
4. Average time lag in payment of wages is 1V2 weeks and 4 weeks in overhead expenses.
5. Cash in hand and at bank is desired to be maintained at Rs.50,000/-

All sales are on credit basis only.

Prepare a statement showing working capital needed to finance a activity level of 96,000
units of production. Assume the production is carried out evenly throughout the year and
wages and overhead accrue similarly. For the calculation purpose 4 weeks may be taken as
equivalent to a month and 52 weeks in a year.

SECTION-C (lxl0=10 Marks)

III. Answer any One of the following in detail.
1. Economic Enterprise require 90,000 units of a certain item annually. The cost per unit is RS.3 the
cost per purchase order Rs.300 and the inventory carrying cost RS.6 per unit per year.

1) What is the EOQ?

2) What should the firm do if the supplier offers discount as given below.
Order Quantity Discount %
4500 units 2%
6000 Units 3%

2. Discuss the important dimensions of a firms credit policy.

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"
ASP(Auto)/JJBA 30161Sem-II 'Jan-Feb _014

SECTION -D (10 Marks)

IV. Answer the given case:
Prepare cash budget for April - Oct 2013 from the information relating to Shah Agencies, a trading
concern:
Balance Sheet as on 3151 March 2013
Liabilities Rs. Assets Rs.
Proprietor's Capital 1,00,000 Cash 20,50"0
Outstanding Liabilities 17,000 Stock 50,500
Sundry debtors 26,000
Furniture 25,000
-Dep 5,000
Total 1,17,000 Total 1,17,000

Sales and salaries for different months are expected to be as under:

Months Sales Salaries
April 80,000 3,000
May 52,000 3,500
June 50,000 35,000
July 75,000 4,000
August 90,000 4,000
September 35,000 3,000
October 25,000 3,000

The other expenses per month are: Rent RS.l ,000, Depreciation RS.l ,000 Misc. Expenses
RS.500 and commission 1% of sales.

Of the sales, 80% is on credit and 20% for cash, 70% of the credit sales are collected in one
month and the balance in two months. Debtors on March 31,2013 represent RS.6,000 in respect of
sales of February and Rs.20,000 in respect of sales of March. There are no debt losses. Gross profit
on sales on an average is 30% Purchases equal to the next month's sales are made every month and
they are paid during the month in which they are made. The firm maintains a minimum cash balance
of RS.l 0, 000. Cash deficiencies are made up bank loans which are repaid at the earliest available
opportunity and cash in excess of RS.15,000 is invested in securities ( Interest on bank loans and
securities is to be ignored). Outstanding liabilities remain tIDchanged.

******

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