CAM-Computer Aided Management-IMT
SECTION - A
Question 1: What do you understand by computer aided management? Illustrate.
Question 2: What does a formula do in a spreadsheet?
Question 3: Name and explain four commonly used type's data in worksheet.
Question 4: List five business applications for which one can use excel.
Question 5: List some of the sensitivity tools of Excel.
SECTION - B
Question 1: Describe why organizations need databases.
Question 2: Majority of organizations worldwide have only TPS and MIS as part of their information Systems. Do these organizations really need databases, and if so, why?
Question 3: What is Tally? What is the business value of tally?
Question 4: What is meaning of SPSS? Why is it required for business and management? Justify.
Question 5: What are the various uni-variate tests in SPSS? How to apply them? Write commands of each.
SECTION - C
Question 1: What is the concept of free webhosting? Illustrate
Question 2: Research on Google and list down various free hosting websites.
Question 3: What attributes you would like to include in your professional website? Illustrate why?
Question 4: What are the security challenges for any organization? Illustrate
Question 5: How you can protect individual identity and secure in cyber world?
CASE STUDY - 1
CASE 1: Write the steps required to create three dimension pivot table. (Please attach print out.)
CASE STUDY - 2
Case 2: Create a personal website: upload the reading material, photo, CV, Image, some graphics, and put the website or add URL on google search engine. (Please write URL and printout of the website).
IMT-01: Management Process and Organization
SECTION - A
Q1: With examples, describe the various functions performed by managers. Also elaborate on Managerial Roles and Operational Approaches to the Management Process.
Q1: Elaborate upon the interrelationship between planning, organizing and control.
Q2: Taking examples, comment on how the macro environment affects the business of an organization
Q3: Why are Corporate Social Responsibility (CSR) initiatives needed? Comment on the pros and cons of CSR activities for the organization
Q4: Elaborate on the steps in Decision Making. Comment on the techniques for effective decision making
SECTION - B
Q1: What is delegation? Comment on the steps in the delegation process. Discuss some reasons for the failure of delegation.
Q2: What is power? With examples, comment on the various sources of power.
Q3: What is employee retention? Why is it important? Comment on the utility of employee retention strategies.
Q4: What is conflict? With examples, comment on the sources of conflict in an organization. Discuss the relevance and impact of culture and gender in conflict handling.
Q5: Why is control important? Taking examples, explain the control process.
SECTION - C
Write Short Notes on:
Q1: Approaches to Org. Structure and Work Design
a. Span of Control
b. Strategic Business Units (SBU)
c. PERT and Balanced Scorecard
Q2: Ethical questions faced by managers of MNC's. Comment on the ethics of managing the environment around the company with the context of Clean Development mechanism and Carbon Credits
Q3: Goals and Objectives and how a Blue Ocean Strategy can help shape the future direction of the organization.
Q4: Recruitment and Selection Techniques
Q5: Key ingredients of Leadership with examples.
CASE STUDY - 1
(Union Problems at George A. Hormel & Co.)
George A. Hormel & Company has many meat packing plants in the US and one of these plants is located at Austin, Minnesota. During the mid 1980s, the company was faced with a decreasing demand for its products. It became necessary to cut the costs of operations in order to remain in business and be competitive. To keep its costs down, the management of the company cut the base wages of its union employees. This was done arbitrarily and without consulting or negotiating with the union representatives. Even though the dispute between the union and the management had been simmering for a long time at the plant in Austin, it culminated in a strike led by the union in August 1985.
An arbitrator was appointed to act as mediator and due to his recommendation; some of the cuts in wages were restored. The management offered to restore the balance of the cuts at the time when the previous labour contract would expire and a new contract would be signed. The new contract was signed by all the unions at all other Hormel plants, except the one in Austin, and hence the strike. Because of the worker 's strike, the plant was shut down.
The plant remained closed for nearly five months. The strike had not yet been settled when the management at the Austin plant decided to reopen the plant, and accordingly, some union members returned to work. Many other workers refused to return to work and formed a picket line and the local union urged its members not to cross the picket line. The management started to hire new workers to replace those who were on strike. There was conflict between the employees and the workers on strike, so much so that at one time, there was a danger of physical violence and local police had to be called in to restrain the workers who were on strike.
The local union sent some of its members to picket other Hormel plants and asked the union members at these other plants to honour the picket lines and not report for work. About a week after the Austin plant was reopened, the central management fired hundreds of their workers at plants in Texas, Iowa and Nebraska for refusing to cross the picket lines and refusing to report for work. This step was significant because picket lines at the other plants were not set up by the local employees but by the striking employees at the plant in Austin.
The strike at the plant in Austin went into ninth month. Tempers flared and violence erupted and in May 1986 hundreds of strikers fought with police outside the Austin plant. The parent union, United Food and Commercial Workers union also disagreed with the striking workers prompted by the local union, considering the economic slowdown and conditions in the industry. The President of the parent union decided to take over the operations of the local union and started proceedings to appoint a new union leadership at this plant. He believed that the conflict had gone too far and he hoped that with these changes, the strike would be over and the workers could go back to work.
Questions:
Q1. Who were the winners and who were the losers in this conflict?
Q2. Is the conflict between union and management inevitable? What preventive steps can be taken to avoid the
possibility of worker strike? Explain your viewpoints.
Q3. If you were hired as a mediator, after the union went on strike, what step would you recommend in order to
minimize the negative impact of this conflict?
CASE STUDY - 2 (Promotion of Mr. Ritesh Mashroo)
Mr. Ritesh Mashroo was Senior Sales Manager working in Indian Lever Limited, a most reputed FMCG company for a decade. He was an excellent worker and had always achieved beyond the target assigned by his superior. In March 2001 when he returned from his official tour of 15 days, he came to know from his colleagues that the promotion list has been displayed and his name does not appear in that list.
On hearing this, he felt annoyed, humiliated and in his gush of anger entered the office of Mr. Mithun Chatterjee, General Manager (Marketing) and began to discuss:
Mr. Mashroo : Why I have not been promoted, Sir? Since last year you are assuring me to continue working hard and
that I would be promoted this year. This year too, you have not promoted me. What is the matter? (Mr. Chatterjee felt
insulted at Mr. Mashroo's behaviour as some guests were waiting outside his cabin.)
Mr. Chatterjee: First take your seat and cool down. I am indeed surprised to find your name missing in the promotion
list, even though I had recommended you for promotion. As you are aware, these days Vice President (Marketing)
decides on all matters related to promotion and he mentioned about the feedback from the field staff he had received
regarding your poor interpersonal skills. So, I suggest you that you be careful about your work behaviour and try to
improve upon it. We will see next time. (Mr. Mashroo was very angry at Mr. Chatterjee's remark and left the office
uttering that he would meet VP Marketing on this issue. Next day he went to meet Mr. P. Venkatraman.)
Mr. Mashroo: Good morning Sir, I have come to know from Mr. Chatterjee that I have not been given promotion
because of my poor interpersonal skills. Sir, you may be aware that the new sales staff is very arrogant because they
proclaim that they have postgraduate degree from renowned business schools in the country and they are not
interested in working in the field. That is why I have to be strict in managing them, as our ultimate goal is to achieve
the target.
Mr. Venkatraman: Mr. Mashroo, don't feel annoyed. I was just informally discussing with Mr. Chatterjee that if you
started working on your problems you would become VP in few year's time. But as far as this promotion is concerned,
I have already given you 4 rating in your performance and recommended you for the same. I think that HR department
might have made certain changes in the grading and that may have worked against your benefit. Why will I harm you
in getting the promotion; after all, you are the high performer in the company.
Mr. Mashroo: How can it happen, Sir? How can they change the performance rating that you have given? Then in
that case I would like to meet HR Head to know the reason.
Mr. Venkatraman: You may meet HR Head, but it is too late for this year. (Next day, Mr. Mashroo goes to meet Mr.
Ashok Motiramani, Head of Human Resource Department.)
Mr. Mashroo: Good Morning, Sir. I have a problem regarding my promotion. I am the only person in the marketing
department who had for the past five years achieved beyond the target. But this time I have not been given promotion.
Mr. Venkatraman told me, that he had recommended by promotion, but it seems HR department has revised the list
and I am deprived of promotion.
Mr. Ramani: Mr. Mashroo, take it for granted that we cannot change the rating or modify the recommendation of your
VP (Marketing) because he is your HOD. Ultimately, HOD is the final decision-maker for promotional issues of a
department. I am sorry I cannot do anything for you.
Mr. Mashroo moves out of HR department, unable to decide what to do. Finally, he decided to go for long leave.
Answer these questions:
Q1. Reflect on the behaviour of Mr. Mashroo.
Q2. What are the problems in this organization as seen in this situation?
Q3. What would be suggest to Mr. Mashroo as his next course of action?
IMT-05: Advertisement and Sales Promotion
SECTION - A
Question 1: Explain what is integrated marketing communication?
Question 2: What are the factors we should consider while selecting an advertising agency?
Question 3: Explain the communication process highlighting the roles of the source, medium and message.
Question 4: Discuss the consumer purchase behavior and why do we need to understand this while designing communication.
Question 5: Discuss the role of memory in consumer response to advertising.
SECTION - B
Question 1: Discuss the various objectives of advertising.
Question 2: What are attitudes? How do they influence consumer purchase behavior?
Question 3: Discuss merits and demerits of advertising on TV.
Question 4: What are the factors one should consider before starting the creative designs of advertisements?
Question 5: How is business advertising different from consumer advertising?
SECTION - C
Question 1: Discuss various reasons for the changes in promotion mix expenditure in the last few years.
Question 2: Differentiate between consumer sales promotion and trade promotions , while highlighting tools used for each.
Question 3: What is Public Relations? How companies leverage PR elaborate with examples.
Question 4: Discuss the relative merits and demerits of various modes of entry by a company in the international market.
Question 5: Discuss key challenges in handling sales force.
CASE STUDY - 1
The Reebok brand got a black eye in India last year when an accounting scandal there resulted in parent company Adidas firing Reebok India managing director Subhinder Singh Prem and COO Vishun Bhagat as well as shutting down hundreds of its stores. Now the brand is trying to make a comeback in the world’s second-most-populated country. Adidas is “repositioning Reebok as a premium fitness brand in India as part of a major revival drive," This year alone, Reebok India
"What happened in the past I s behind us. We are now growth-focused and we will start with our new retail format of 'fit hub' stores in India," Adidas Group India Managing Director Eric Haskell says.The Reebok fit-hub stores offer fitness and training products besides advice, guidance and information on community based fitness events. will open 50 'fit-hub' stores in India which will be more than half of the 80 such outlets that the sportswear brand has at present globally, mostly in US, Australia, Korea and Russia.
"This year 50 fit hub stores will be opened. The plan is to open 100 such stores by first quarter of 2014," Haskell said, adding out of the 100 stores, 50 will be new and the remaining half will be renovated ones.Most of the fit-hub stores would come up in metro cities but few new stores would also be located in tier-II cities, he added. The company plans to convert all the existing 490 Reebok stores in India to fit-hub stores in next couple of years. "It should not take longer than two to three years," Haskell said.
Question 1: Critically analyze firms new strategy.
Question 2: Reebok has huge residual equity in the country , suggest how it can be leveraged with communication.
CASE STUDY - 2
On 1st
The company is now focusing its original content programming line up. In an effort to increase weekly hours of original content, the channel will be introducing two new shows which include “The Buddy Project.” Besides it will convert its teen crime show July 2012 , the Channel V viewers were confused as the channel was not there in the list of Music channels. The channel, which was first introduced nearly 15 years ago in the country, was relaunched in 2009 with the “bloody cool” tagline and focused on playing Bollywood music. However from first July it shifted from a music channel category to General entertainment channel category. Music now is just part of an overall strategy to engage with the youth in today’s world for channel V. Its original content garnered higher television ratings compared to its music slot.The broadcaster was playing three hours of music content in a day in the morning slot so far. Some of its rivals play 16-19 hours of music throughout the day.
Gumrah-End of Innocence into a daily show. Its other shows which are directed towards youth are already well entrenched. The company also forayed into Channel V spot coffee parlors and have launched channel V apparels and phone range to attract youth which is their core target market. Moving away from music content and entering into GEC space has been a strategic decision for the firm which is yet to deliver results.
Question 1: What benefit do you see for the firm in the new segment to improve its marketing.
Question 2: Suggest firm a positioning migration plan for smooth acceptance.
IMT-07: Working Capital Management
SECTION – A
Question 1: The varying ratio between fixed assets and current assets has an impact on profitability/liquidity of a firm. Discuss
Question 2: Enumerate the advantages of trade credit.
Question 3: Write short notes on:
a. Call money market in India
b. Commercial Papers
Question 4: The ABC Ltd sells goods on credit. Its current annual credit sales amounts to Rs 900 lakh. The variable cost is 80%. The credit terms are 2/10, net 30. On the current level for sales the bad debts are 0.75. The past experience has been that 50% of the customers avail of the cash discount, the remaining being financed in the ratio of 2:1 by a mix of bank borrowings and owned funds which costs 25% and 28% per annum respectively. As an alternative to the in house management of receivables, ABC LTD. is contemplating use of full advance non- recourse factoring with the Indbank factors Ltd. The main elements of the deal are:
• Factor reserve 15%
• Guaranteed payment date 24 days after the purchase
• Discount charge 22%
• Commission of other services 4% of the receivables
Analyze the proposal.
Question 5: Following information is available in respect of a trading firm:
• On an average, debtors are collected after 45 days; inventories have an average holding period of 75 days and creditor’s payment period on an average is 30 days.
• The firm spends a total of Rs 120 lakh annually at a constant rate.
• It can earn 10% on investments.
From the above information compute:
a) Cash cycle and cash turnover
b) Minimum amount of cash required to meet the payment obligations
c) Savings by reducing the average inventory holding period by 30 days.
SECTION - B
Question 1: Explain with an example how cash requirements in a particular period are assessed.
Question 2: What are the different forms of bank credit? Explain different modes in which collateral is placed.
Question 3: From the following information you are required to calculate the Economic Order Quantity and the total annual inventory cost.
• Annual Demand:- 2400 units
• Unit Price: Rs 2.40
• Ordering cost per order: Rs 4.00
• Storage Cost: 2% per annum
• Interest Rate: 10% per annum
• Lead time: half month
Question 4: The objective of working capital is not attainable unless factors influencing working capital management are confirmed. Discuss
Question 5: A company deal in consumer durables, having an annual turnover of Rs 80 lakh, 75% of which are credit sales effected through a large number of dealers while the balance sales are made through showrooms on cash basis. Normal credit allowed is 30 days. The company proposes to expand its business substantially and there is a good demand as well. However the marketing manager finds that the dealers have difficulty in holding more stocks due to financial problems. He therefore proposes a change in the credit policy as follows:
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The product yields an average contribution of 25% on sales. Fixed costs amount to Rs 5 lakh per annum. The company expects a pre tax return of 20% on capital employed. The finance manager after a review of the proposal has recommended increasing the provision for bad debts from the current 0.5% to 1% for proposal A and to 1.5% for proposal B.
Evaluate the merits of the new proposal and recommend the best policy.
SECTION – C
Question 1: A company has a collection of Rs 5,00,000 per day. Mailing and processing delays account for 6 days. If a lock box system is introduced, the delay is reduced to 3 days but the annual cost of the lock box system comes to Rs 50,000.
• How much cash is released on account of the shortening of mailing and processing delay?
• What will be the annual benefit on account of lock box system if the released amount is invested at 10% p.a?
Question 2: Write a note on the JIT in inventory system.
Question 3: Explain the norms suggested by Tandon Committee for providing bank credit.
Question 4: Differentiate between
• Payment float and receivable float
• Budgeting and forecasting
Question 5: From the following information, draw a plan of ABC selective control:
CASE STUDY - 1
A proforma cost sheet of a company provides the following particulars:
Amount (Rs)
Raw Material
80
Direct Labour
30
Overheads
60
Total Cost
170
Profit
30
Selling price
200
The following particulars are available:
Raw material in stock, on average one month; material in process, on average half a month; finished goods in stock, on average one month. Credit allowed by suppliers is one month, credit allowed to debtors is two months, lag in payment of wages is one and a half weeks, lag in payment of overhead expenses is one month; one fourth of the output is sold against cash; cash at bank is expected to be Rs 25000. You are required to prepare a statement showing the working capital needed to finance a level of activity of 1,04,000 units of production. Assume that production is carried out during the year evenly.
CASE STUDY - 2
Prepare the cash budget for July-December from the following information. The estimated sales, expenses etc are given below:
Additional Information:
1. 20% of the sales are on cash and the balance on credit.
2. 1% of the credit sales are returned by the customers, 2% of debts are uncollectible, 50% of the good account receivables are collected in the month of the sales and the rest during next month.
3. The time lag in payment of miscellaneous expenses and purchases is one month. Wages and salaries are paid fortnightly with a time lag of 15 days.
4. The company keeps minimum cash balance of Rs 5 lakh. Cash in excess of Rs 7 lakhs is invested in Government securities in the multiples of Rs 1 lakh. Shortfalls in the minimum cash balance are made good by borrowings from the banks. Ignore interest received and paid.
IMT-09: Security Analysis and Portfolio Management
SECTION - A
Question 1: Define the term ‘investment’ as it relates to securities investments.
Question 2: How do operations on a stock exchange affect the economic life of a nation?
Question 3: Explain the term ‘New Issue Market’. How does it differ from the ‘secondary market’?
Question 4: What is meant by ‘listing of securities’? What are the advantages form the point of view of a company?
Question 5: What is a market index? Outline its utility for security analysis.
SECTION - B
Question 1: Why it is said IPOs are underpriced compared to the price at which they could be marketed?
Question 2: What are the main determinants of the level of interest rates (real and nominal rates)?
Question 3: How do we compute expected return, variance and standard deviation using time series of historical (past) rates of return?
Question 4: Describe the main differences in the historical performance of returns on equity and long-term bonds.
Question 5: Describe how we measure risk with non-normal distributions. What is the meaning of the term “fair game”?
SECTION - C
Question 1: Explain the capital allocation choice across risky and risk-free portfolios.
Question 2: Explain the simplifying assumptions of the basic version of CAPM.
Question 3: Explain the trade-off between liquidity and expected returns.
Question 4: Explain the role of diversification in eliminating the portfolio risk.
Question 5: Explain the role of Security Market Line (SML).
CASE STUDY - 1
Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $50,000 or $150,000 with equal probabilities of .5. The alternative risk-free investment in T-bills pays 5 percent per year.
a. If you require a risk premium of 10 percent, how much will you be willing to pay for the portfolio?
b. Suppose that the portfolio can be purchased for the amount you found in.
(a). What will be the expected rate of return on the portfolio?
c. Now, suppose that you require a risk premium of 15 percent. What is the price that you will be willing to pay?
d. Comparing your answers to (a) and (c), what do you conclude about the relationship between the required risk premium on a portfolio and the price at which the portfolio will sell?
CASE STUDY - 2
Consider the limit-order book depicted in Table below. The last trade in the stock took place at a price of $50.
Limit – Buy Order
Limit-Sell Order
Price ($)
Shares
Price ($)
Shares
49.75
500
50.25
100
49.50
800
51.50
100
49.25
500
54.75
300
49.00
200
58.25
100
48.50
600
a. If a market-buy order for 100 shares comes in, at what price will it be filled?
b. At what price would the next market-buy order be filled?
c. If you were the specialist, would you desire to increase or decrease your inventory of this stock?
SECTION - A
Question 1: What do you understand by computer aided management? Illustrate.
Question 2: What does a formula do in a spreadsheet?
Question 3: Name and explain four commonly used type's data in worksheet.
Question 4: List five business applications for which one can use excel.
Question 5: List some of the sensitivity tools of Excel.
SECTION - B
Question 1: Describe why organizations need databases.
Question 2: Majority of organizations worldwide have only TPS and MIS as part of their information Systems. Do these organizations really need databases, and if so, why?
Question 3: What is Tally? What is the business value of tally?
Question 4: What is meaning of SPSS? Why is it required for business and management? Justify.
Question 5: What are the various uni-variate tests in SPSS? How to apply them? Write commands of each.
SECTION - C
Question 1: What is the concept of free webhosting? Illustrate
Question 2: Research on Google and list down various free hosting websites.
Question 3: What attributes you would like to include in your professional website? Illustrate why?
Question 4: What are the security challenges for any organization? Illustrate
Question 5: How you can protect individual identity and secure in cyber world?
CASE STUDY - 1
CASE 1: Write the steps required to create three dimension pivot table. (Please attach print out.)
CASE STUDY - 2
Case 2: Create a personal website: upload the reading material, photo, CV, Image, some graphics, and put the website or add URL on google search engine. (Please write URL and printout of the website).
IMT-01: Management Process and Organization
SECTION - A
Q1: With examples, describe the various functions performed by managers. Also elaborate on Managerial Roles and Operational Approaches to the Management Process.
Q1: Elaborate upon the interrelationship between planning, organizing and control.
Q2: Taking examples, comment on how the macro environment affects the business of an organization
Q3: Why are Corporate Social Responsibility (CSR) initiatives needed? Comment on the pros and cons of CSR activities for the organization
Q4: Elaborate on the steps in Decision Making. Comment on the techniques for effective decision making
SECTION - B
Q1: What is delegation? Comment on the steps in the delegation process. Discuss some reasons for the failure of delegation.
Q2: What is power? With examples, comment on the various sources of power.
Q3: What is employee retention? Why is it important? Comment on the utility of employee retention strategies.
Q4: What is conflict? With examples, comment on the sources of conflict in an organization. Discuss the relevance and impact of culture and gender in conflict handling.
Q5: Why is control important? Taking examples, explain the control process.
SECTION - C
Write Short Notes on:
Q1: Approaches to Org. Structure and Work Design
a. Span of Control
b. Strategic Business Units (SBU)
c. PERT and Balanced Scorecard
Q2: Ethical questions faced by managers of MNC's. Comment on the ethics of managing the environment around the company with the context of Clean Development mechanism and Carbon Credits
Q3: Goals and Objectives and how a Blue Ocean Strategy can help shape the future direction of the organization.
Q4: Recruitment and Selection Techniques
Q5: Key ingredients of Leadership with examples.
CASE STUDY - 1
(Union Problems at George A. Hormel & Co.)
George A. Hormel & Company has many meat packing plants in the US and one of these plants is located at Austin, Minnesota. During the mid 1980s, the company was faced with a decreasing demand for its products. It became necessary to cut the costs of operations in order to remain in business and be competitive. To keep its costs down, the management of the company cut the base wages of its union employees. This was done arbitrarily and without consulting or negotiating with the union representatives. Even though the dispute between the union and the management had been simmering for a long time at the plant in Austin, it culminated in a strike led by the union in August 1985.
An arbitrator was appointed to act as mediator and due to his recommendation; some of the cuts in wages were restored. The management offered to restore the balance of the cuts at the time when the previous labour contract would expire and a new contract would be signed. The new contract was signed by all the unions at all other Hormel plants, except the one in Austin, and hence the strike. Because of the worker 's strike, the plant was shut down.
The plant remained closed for nearly five months. The strike had not yet been settled when the management at the Austin plant decided to reopen the plant, and accordingly, some union members returned to work. Many other workers refused to return to work and formed a picket line and the local union urged its members not to cross the picket line. The management started to hire new workers to replace those who were on strike. There was conflict between the employees and the workers on strike, so much so that at one time, there was a danger of physical violence and local police had to be called in to restrain the workers who were on strike.
The local union sent some of its members to picket other Hormel plants and asked the union members at these other plants to honour the picket lines and not report for work. About a week after the Austin plant was reopened, the central management fired hundreds of their workers at plants in Texas, Iowa and Nebraska for refusing to cross the picket lines and refusing to report for work. This step was significant because picket lines at the other plants were not set up by the local employees but by the striking employees at the plant in Austin.
The strike at the plant in Austin went into ninth month. Tempers flared and violence erupted and in May 1986 hundreds of strikers fought with police outside the Austin plant. The parent union, United Food and Commercial Workers union also disagreed with the striking workers prompted by the local union, considering the economic slowdown and conditions in the industry. The President of the parent union decided to take over the operations of the local union and started proceedings to appoint a new union leadership at this plant. He believed that the conflict had gone too far and he hoped that with these changes, the strike would be over and the workers could go back to work.
Questions:
Q1. Who were the winners and who were the losers in this conflict?
Q2. Is the conflict between union and management inevitable? What preventive steps can be taken to avoid the
possibility of worker strike? Explain your viewpoints.
Q3. If you were hired as a mediator, after the union went on strike, what step would you recommend in order to
minimize the negative impact of this conflict?
CASE STUDY - 2 (Promotion of Mr. Ritesh Mashroo)
Mr. Ritesh Mashroo was Senior Sales Manager working in Indian Lever Limited, a most reputed FMCG company for a decade. He was an excellent worker and had always achieved beyond the target assigned by his superior. In March 2001 when he returned from his official tour of 15 days, he came to know from his colleagues that the promotion list has been displayed and his name does not appear in that list.
On hearing this, he felt annoyed, humiliated and in his gush of anger entered the office of Mr. Mithun Chatterjee, General Manager (Marketing) and began to discuss:
Mr. Mashroo : Why I have not been promoted, Sir? Since last year you are assuring me to continue working hard and
that I would be promoted this year. This year too, you have not promoted me. What is the matter? (Mr. Chatterjee felt
insulted at Mr. Mashroo's behaviour as some guests were waiting outside his cabin.)
Mr. Chatterjee: First take your seat and cool down. I am indeed surprised to find your name missing in the promotion
list, even though I had recommended you for promotion. As you are aware, these days Vice President (Marketing)
decides on all matters related to promotion and he mentioned about the feedback from the field staff he had received
regarding your poor interpersonal skills. So, I suggest you that you be careful about your work behaviour and try to
improve upon it. We will see next time. (Mr. Mashroo was very angry at Mr. Chatterjee's remark and left the office
uttering that he would meet VP Marketing on this issue. Next day he went to meet Mr. P. Venkatraman.)
Mr. Mashroo: Good morning Sir, I have come to know from Mr. Chatterjee that I have not been given promotion
because of my poor interpersonal skills. Sir, you may be aware that the new sales staff is very arrogant because they
proclaim that they have postgraduate degree from renowned business schools in the country and they are not
interested in working in the field. That is why I have to be strict in managing them, as our ultimate goal is to achieve
the target.
Mr. Venkatraman: Mr. Mashroo, don't feel annoyed. I was just informally discussing with Mr. Chatterjee that if you
started working on your problems you would become VP in few year's time. But as far as this promotion is concerned,
I have already given you 4 rating in your performance and recommended you for the same. I think that HR department
might have made certain changes in the grading and that may have worked against your benefit. Why will I harm you
in getting the promotion; after all, you are the high performer in the company.
Mr. Mashroo: How can it happen, Sir? How can they change the performance rating that you have given? Then in
that case I would like to meet HR Head to know the reason.
Mr. Venkatraman: You may meet HR Head, but it is too late for this year. (Next day, Mr. Mashroo goes to meet Mr.
Ashok Motiramani, Head of Human Resource Department.)
Mr. Mashroo: Good Morning, Sir. I have a problem regarding my promotion. I am the only person in the marketing
department who had for the past five years achieved beyond the target. But this time I have not been given promotion.
Mr. Venkatraman told me, that he had recommended by promotion, but it seems HR department has revised the list
and I am deprived of promotion.
Mr. Ramani: Mr. Mashroo, take it for granted that we cannot change the rating or modify the recommendation of your
VP (Marketing) because he is your HOD. Ultimately, HOD is the final decision-maker for promotional issues of a
department. I am sorry I cannot do anything for you.
Mr. Mashroo moves out of HR department, unable to decide what to do. Finally, he decided to go for long leave.
Answer these questions:
Q1. Reflect on the behaviour of Mr. Mashroo.
Q2. What are the problems in this organization as seen in this situation?
Q3. What would be suggest to Mr. Mashroo as his next course of action?
IMT-05: Advertisement and Sales Promotion
SECTION - A
Question 1: Explain what is integrated marketing communication?
Question 2: What are the factors we should consider while selecting an advertising agency?
Question 3: Explain the communication process highlighting the roles of the source, medium and message.
Question 4: Discuss the consumer purchase behavior and why do we need to understand this while designing communication.
Question 5: Discuss the role of memory in consumer response to advertising.
SECTION - B
Question 1: Discuss the various objectives of advertising.
Question 2: What are attitudes? How do they influence consumer purchase behavior?
Question 3: Discuss merits and demerits of advertising on TV.
Question 4: What are the factors one should consider before starting the creative designs of advertisements?
Question 5: How is business advertising different from consumer advertising?
SECTION - C
Question 1: Discuss various reasons for the changes in promotion mix expenditure in the last few years.
Question 2: Differentiate between consumer sales promotion and trade promotions , while highlighting tools used for each.
Question 3: What is Public Relations? How companies leverage PR elaborate with examples.
Question 4: Discuss the relative merits and demerits of various modes of entry by a company in the international market.
Question 5: Discuss key challenges in handling sales force.
CASE STUDY - 1
The Reebok brand got a black eye in India last year when an accounting scandal there resulted in parent company Adidas firing Reebok India managing director Subhinder Singh Prem and COO Vishun Bhagat as well as shutting down hundreds of its stores. Now the brand is trying to make a comeback in the world’s second-most-populated country. Adidas is “repositioning Reebok as a premium fitness brand in India as part of a major revival drive," This year alone, Reebok India
"What happened in the past I s behind us. We are now growth-focused and we will start with our new retail format of 'fit hub' stores in India," Adidas Group India Managing Director Eric Haskell says.The Reebok fit-hub stores offer fitness and training products besides advice, guidance and information on community based fitness events. will open 50 'fit-hub' stores in India which will be more than half of the 80 such outlets that the sportswear brand has at present globally, mostly in US, Australia, Korea and Russia.
"This year 50 fit hub stores will be opened. The plan is to open 100 such stores by first quarter of 2014," Haskell said, adding out of the 100 stores, 50 will be new and the remaining half will be renovated ones.Most of the fit-hub stores would come up in metro cities but few new stores would also be located in tier-II cities, he added. The company plans to convert all the existing 490 Reebok stores in India to fit-hub stores in next couple of years. "It should not take longer than two to three years," Haskell said.
Question 1: Critically analyze firms new strategy.
Question 2: Reebok has huge residual equity in the country , suggest how it can be leveraged with communication.
CASE STUDY - 2
On 1st
The company is now focusing its original content programming line up. In an effort to increase weekly hours of original content, the channel will be introducing two new shows which include “The Buddy Project.” Besides it will convert its teen crime show July 2012 , the Channel V viewers were confused as the channel was not there in the list of Music channels. The channel, which was first introduced nearly 15 years ago in the country, was relaunched in 2009 with the “bloody cool” tagline and focused on playing Bollywood music. However from first July it shifted from a music channel category to General entertainment channel category. Music now is just part of an overall strategy to engage with the youth in today’s world for channel V. Its original content garnered higher television ratings compared to its music slot.The broadcaster was playing three hours of music content in a day in the morning slot so far. Some of its rivals play 16-19 hours of music throughout the day.
Gumrah-End of Innocence into a daily show. Its other shows which are directed towards youth are already well entrenched. The company also forayed into Channel V spot coffee parlors and have launched channel V apparels and phone range to attract youth which is their core target market. Moving away from music content and entering into GEC space has been a strategic decision for the firm which is yet to deliver results.
Question 1: What benefit do you see for the firm in the new segment to improve its marketing.
Question 2: Suggest firm a positioning migration plan for smooth acceptance.
IMT-07: Working Capital Management
SECTION – A
Question 1: The varying ratio between fixed assets and current assets has an impact on profitability/liquidity of a firm. Discuss
Question 2: Enumerate the advantages of trade credit.
Question 3: Write short notes on:
a. Call money market in India
b. Commercial Papers
Question 4: The ABC Ltd sells goods on credit. Its current annual credit sales amounts to Rs 900 lakh. The variable cost is 80%. The credit terms are 2/10, net 30. On the current level for sales the bad debts are 0.75. The past experience has been that 50% of the customers avail of the cash discount, the remaining being financed in the ratio of 2:1 by a mix of bank borrowings and owned funds which costs 25% and 28% per annum respectively. As an alternative to the in house management of receivables, ABC LTD. is contemplating use of full advance non- recourse factoring with the Indbank factors Ltd. The main elements of the deal are:
• Factor reserve 15%
• Guaranteed payment date 24 days after the purchase
• Discount charge 22%
• Commission of other services 4% of the receivables
Analyze the proposal.
Question 5: Following information is available in respect of a trading firm:
• On an average, debtors are collected after 45 days; inventories have an average holding period of 75 days and creditor’s payment period on an average is 30 days.
• The firm spends a total of Rs 120 lakh annually at a constant rate.
• It can earn 10% on investments.
From the above information compute:
a) Cash cycle and cash turnover
b) Minimum amount of cash required to meet the payment obligations
c) Savings by reducing the average inventory holding period by 30 days.
SECTION - B
Question 1: Explain with an example how cash requirements in a particular period are assessed.
Question 2: What are the different forms of bank credit? Explain different modes in which collateral is placed.
Question 3: From the following information you are required to calculate the Economic Order Quantity and the total annual inventory cost.
• Annual Demand:- 2400 units
• Unit Price: Rs 2.40
• Ordering cost per order: Rs 4.00
• Storage Cost: 2% per annum
• Interest Rate: 10% per annum
• Lead time: half month
Question 4: The objective of working capital is not attainable unless factors influencing working capital management are confirmed. Discuss
Question 5: A company deal in consumer durables, having an annual turnover of Rs 80 lakh, 75% of which are credit sales effected through a large number of dealers while the balance sales are made through showrooms on cash basis. Normal credit allowed is 30 days. The company proposes to expand its business substantially and there is a good demand as well. However the marketing manager finds that the dealers have difficulty in holding more stocks due to financial problems. He therefore proposes a change in the credit policy as follows:
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The product yields an average contribution of 25% on sales. Fixed costs amount to Rs 5 lakh per annum. The company expects a pre tax return of 20% on capital employed. The finance manager after a review of the proposal has recommended increasing the provision for bad debts from the current 0.5% to 1% for proposal A and to 1.5% for proposal B.
Evaluate the merits of the new proposal and recommend the best policy.
SECTION – C
Question 1: A company has a collection of Rs 5,00,000 per day. Mailing and processing delays account for 6 days. If a lock box system is introduced, the delay is reduced to 3 days but the annual cost of the lock box system comes to Rs 50,000.
• How much cash is released on account of the shortening of mailing and processing delay?
• What will be the annual benefit on account of lock box system if the released amount is invested at 10% p.a?
Question 2: Write a note on the JIT in inventory system.
Question 3: Explain the norms suggested by Tandon Committee for providing bank credit.
Question 4: Differentiate between
• Payment float and receivable float
• Budgeting and forecasting
Question 5: From the following information, draw a plan of ABC selective control:
CASE STUDY - 1
A proforma cost sheet of a company provides the following particulars:
Amount (Rs)
Raw Material
80
Direct Labour
30
Overheads
60
Total Cost
170
Profit
30
Selling price
200
The following particulars are available:
Raw material in stock, on average one month; material in process, on average half a month; finished goods in stock, on average one month. Credit allowed by suppliers is one month, credit allowed to debtors is two months, lag in payment of wages is one and a half weeks, lag in payment of overhead expenses is one month; one fourth of the output is sold against cash; cash at bank is expected to be Rs 25000. You are required to prepare a statement showing the working capital needed to finance a level of activity of 1,04,000 units of production. Assume that production is carried out during the year evenly.
CASE STUDY - 2
Prepare the cash budget for July-December from the following information. The estimated sales, expenses etc are given below:
Additional Information:
1. 20% of the sales are on cash and the balance on credit.
2. 1% of the credit sales are returned by the customers, 2% of debts are uncollectible, 50% of the good account receivables are collected in the month of the sales and the rest during next month.
3. The time lag in payment of miscellaneous expenses and purchases is one month. Wages and salaries are paid fortnightly with a time lag of 15 days.
4. The company keeps minimum cash balance of Rs 5 lakh. Cash in excess of Rs 7 lakhs is invested in Government securities in the multiples of Rs 1 lakh. Shortfalls in the minimum cash balance are made good by borrowings from the banks. Ignore interest received and paid.
IMT-09: Security Analysis and Portfolio Management
SECTION - A
Question 1: Define the term ‘investment’ as it relates to securities investments.
Question 2: How do operations on a stock exchange affect the economic life of a nation?
Question 3: Explain the term ‘New Issue Market’. How does it differ from the ‘secondary market’?
Question 4: What is meant by ‘listing of securities’? What are the advantages form the point of view of a company?
Question 5: What is a market index? Outline its utility for security analysis.
SECTION - B
Question 1: Why it is said IPOs are underpriced compared to the price at which they could be marketed?
Question 2: What are the main determinants of the level of interest rates (real and nominal rates)?
Question 3: How do we compute expected return, variance and standard deviation using time series of historical (past) rates of return?
Question 4: Describe the main differences in the historical performance of returns on equity and long-term bonds.
Question 5: Describe how we measure risk with non-normal distributions. What is the meaning of the term “fair game”?
SECTION - C
Question 1: Explain the capital allocation choice across risky and risk-free portfolios.
Question 2: Explain the simplifying assumptions of the basic version of CAPM.
Question 3: Explain the trade-off between liquidity and expected returns.
Question 4: Explain the role of diversification in eliminating the portfolio risk.
Question 5: Explain the role of Security Market Line (SML).
CASE STUDY - 1
Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $50,000 or $150,000 with equal probabilities of .5. The alternative risk-free investment in T-bills pays 5 percent per year.
a. If you require a risk premium of 10 percent, how much will you be willing to pay for the portfolio?
b. Suppose that the portfolio can be purchased for the amount you found in.
(a). What will be the expected rate of return on the portfolio?
c. Now, suppose that you require a risk premium of 15 percent. What is the price that you will be willing to pay?
d. Comparing your answers to (a) and (c), what do you conclude about the relationship between the required risk premium on a portfolio and the price at which the portfolio will sell?
CASE STUDY - 2
Consider the limit-order book depicted in Table below. The last trade in the stock took place at a price of $50.
Limit – Buy Order
Limit-Sell Order
Price ($)
Shares
Price ($)
Shares
49.75
500
50.25
100
49.50
800
51.50
100
49.25
500
54.75
300
49.00
200
58.25
100
48.50
600
a. If a market-buy order for 100 shares comes in, at what price will it be filled?
b. At what price would the next market-buy order be filled?
c. If you were the specialist, would you desire to increase or decrease your inventory of this stock?
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