IIBM Exam paper:Management Accounting:contact us for answers at assignmentssolution@gmail.com

Semester II Examination Papers
IIBM Institute of Business Management
IIBM Institute of Business Management
Semester-II Examination Paper MM.100
Management Accounting
Section A: Objective Type (30 marks)
This section consists of Multiple choice questions & short Notes type questions.
Answer all the questions.
Part one questions carry 1 mark each & Part Two questions carry 5 marks each.
Part One:
Multiple choices:
1. If the variable cost(VC) be Rs 5 and the sales revenue(SR) be Rs 8 then the V/V ratio is given
by
a. 1.6
b. 3
c. 40
d. 0.625
2. Re-order level =
a. Minimum level + (normal usage * average delivery time)
b. (Daily usage + lead time) * safety stock
c. (Daily usage * lead time) + average stock
d. (Average stock level - minimum level)/2
3. Acid test ratio is the ratio between
a. Quick assets and current liabilities
b. Net credit sales and average debtors
c. Cost of goods sold and average inventory
d. None
4. In select account standards AS-17 is a
a. Related party disclosure
b. Segment reporting
c. Discontinuing operation
d. Interim financial reporting
5. Ledger is
a. A kind of payment
b. A kind of strategy
c. A book in which bank accounts are kept
d. It is a receipt of selling
Semester II Examination Papers
IIBM Institute of Business Management
6. Which of the following industries does not use process costing?
a. Oil refineries
b. Distilleries
c. Sugar
d. Chemical
e. Aircraft manufacturing
7. The demand curve is also called the
a. Total revenue curve
b. Marginal revenue curve
c. Average revenue curve
d. Marginal cost curve
e. Profit curve
8. To decrease the Break Even Point one must
a. Increase the fixed Cost
b. Decrease the unit contribution
c. Decrease the selling price
d. Increase variable Cost
e. Decrease fixed Cost
9. Rent to be paid for a factory premises is an example of
a. Discretionary Cost
b. Programmed Cost
c. Future Cost
d. Committed Cost
e. Opportunity Cost
10. Performa statements are otherwise called as
a. Master budget
b. Capital budget
c. Strategic plan
d. Rolling budget
e. There is no such budget
Part Two:
1. Define ‘Liquidity Ratio’.
2. Define ‘Debt Equity’ ratio.
3. What do you mean by ‘Batch costing’?
4. Explain ‘The margin of safety’.
END OF SECTION A
Semester II Examination Papers
IIBM Institute of Business Management
Section B: Caselets (40 marks)
This section consists of Caselets.
Answer all the questions.
Each caselet carries 20 marks.
Detailed information should form the part of your answer (Word limit 200 to 250 words).
Caselet 1
Sound Future Communication Ltd is planning profit for the current year. This Chairman and
Managing Director of the Company, Mr., wise Has asked the Accounts and Finance Department
to prepare the Budget outlining The implication of achieving the Profit goal of Rs 7 lakhs .The
Budgeting Department has compiled the information related to its operating and financing
activities as detailed in schedules I to VIII.
I. Balance Sheet as at March 1 of the Current year
Liabilities Amount Assets Amount
Share capital Rs 31,77,428 Fixed assets Rs 48,00,000
Retained earnings 18,96,400 Less: Accumulated
Creditors 44,000 depreciation (12,00,000) Rs
36,00,000
Taxes payable 74,000 _________
Inventories:
Direct materials 1,35,828
Finished goods 1,60,000 2,95,828
Debtors 11,20,000
Less: Provision for
bad debts (64,000) 10,56,000
cash 2,40,000
___________ _________
51,91,828 51,91,828
Semester II Examination Papers
IIBM Institute of Business Management
Notes:
(1) Debtors include Rs 1,60,000 from the third quarter sales of Rs 20,00,000 and Rs 9,60,000
from fourth quarter sales of Rs 12,00,00;
(2) Direct Materials include 6,300 kgs of material A@Rs 5.88 per kg and 12,600kgs of material B
@Rs 7.84 kg and
(3) Finished Goods include 4,000 units @Rs 40 per unit.-
II Budget Assumption
(I) Selling Price Rs 60 per unit
(II) Quarterly sales forecast (units)
III Inventory Policy
See the table first
IV. Manufacturing Cost per unit
Direct materials:
1 kg of A @ Rs 5.88 Rs 5.88
2 Kgs of B @ Rs 7.84 Rs 15.68
Total Rs 21.56
Direct labor : 0.5*direct labor-hour @Rs8 4.00
Overheads: Variable (0.5*direct labor-hour @ Rs 12 ) 6.00
Quarter Next year Year following next year
First 20,000 30,000
Second 30,000
Third 40,000
Fourth 20,000
Semester II Examination Papers
IIBM Institute of Business Management
Fixed (Rs 8,44,000 per year/ Normal level of activity, 1,00,000 units) 8.44
________
14.44
Total 40.00
Finished goods:20 percent of the following quarter’s requirement at the end of each
quarter
Raw materials:30 percent of the following quarter’s requirement at the end of each
quarter
The firm wishes to have 9,200 kgs of each type of direct material on hand at March 31
of the next year.
The quarterly fixed manufacturing costs of Rs 2,11,000 include deprecations totaling Rs 50,000 .all
Production variance are written off as adjustment to the cost of goods sold in the period in which they
occurred. The firm follows absorption costing method for income determination.
V Selling and administrative costs:
a. Commission and distribution Rs 60 per unit sold
b. Advertising Rs 10,000 per quarter
c. Administrative Rs 20,000 per quarter
VI Cash disbursement policy
Raw materials are purchased on terms of 2/10 net /30.Discount is always taken and purchases are
recorded at net; 90 percent of the purchases are paid for in the quarter of purchase and remender is
paid for in the following quarter. The list prices of material A and B are Rs 6 per kg and Rs 8 per kg
respectively. With the expectation of income taxes, which are paid during the following quarter, all
other payments are made when incurred.
VII Cash collection experience
20 percent sales are for cash and 80 percent are on credit. The terms of sales are 2/10, net /60 days
However, for payments the sales are billed to customers on the first day of the following quarter, 50
percent of the credit sales are collected during the discount period and another 40 percent are received
after the discount period but during the quarter in which the billing is done; 7.5 percent are received
during the following quarter and 2.5 percent are bad debts. These accounts are written off at the end of
the 2nd quarter following the sales. The provision of 2 percent of sales is made for bad debts at the time
of sales. Sales discount are recorded as a deduction from sales in the quarter the discounts are taken
Based on prior experience, this deduction equals 0.8 percent of the previous quarters sales (0.8 * 0.5 *
0.02).
Semester II Examination Papers
IIBM Institute of Business Management
VIII Other Information
Income Tax rate is 50 percent
Cash dividend amount to Rs 80,000 at the end of quarter 2 and quarter 4
At the end of the 4th quarter equipment costing Rs 6,00,000 was purchased
Assignment
Prepare a comprehensive, quarter –wise, budget to show the projected income of SFCL for the year.
Caselet 2
M/s Precision Company Ltd is in the business of making Fingertips brand calculation .Fingertips brand of
calculators has a good reputation among students, office staff and college faculty for its quality and
price. Its current market price is Rs 310 per calculator .Its unit cost structure is given in Exhibit1:
Exhibit 1 Cost Structure of Finger trips Calculators
Direct material cost Rs 150
Direct labour cost 40
Variable overheads(including printing cost ,Rs 2 and packaging cost , Rs 5) 40
Allocated Fixed Overheads 50
_____
Total 280
The PCL was started three years ago. A market research had estimated a demand for 1, 80,000
calculator annually. The PCL was set up with an installed capacity of 2, 00,000 calculators. But even after
3 year the annual demand for Finger trip calculators stood at 1,50,000 units. The CEO of PCL Bharam
Dharan , was concerned about its future prospects .Meanwhile , he got an export order from Dutch Exim
Ltd (DEL), Netherland , for 1,00,000 calculators at Rs 260 per calculator.DEL is in the Business of
marketing stationary to schools and offices and has planned to start selling calculators as well. It would
import the Fingertips brand calculators but put its own brand name and would also take care of
packaging to suit the local market requirement .Initially, it is one –year contract renewable depending
on market conditions. The CEO of PCL is interested in the order as it would help in utilizing the spare
capacity of 50,000 units. The Marketing manager of PCL, Sonal Agarwal supports the proposal because
the calculator would be sold in Netherland under a different Brand name, and the sale of Finger trips
Semester II Examination Papers
IIBM Institute of Business Management
calculators in the local market would not be adversely affected. According to John Mathew, production
manager , to increase the capacity by 50,000 units, a new machine ,similar to the one being currently
used, would have to be acquired .Two alternative machines are available in the market. The first
machine could be leased at an annual cost of Rs 25 lakhs. The maintenance cost available per year is
estimated to be Rs 2 lakhs. The second machine uses a new technology. It can be leased for a yearly
rental of Rs 30 lakhs. However the maintenance cost would be Rs 1.5 lakhs per year. The new
Technology based machine would also reduce the labor cost and the variable overhead cost by Rs 5 and
Rs 2 per calculator respectively. The CEO asks the finance manager to carry out a financial analysis of the
alternatives.
REQUIRED
Based on the financial analysis, what recommendation would you, as the finance manager, make to the
CEO of PCL?
END OF SECTION B
Section C: Applied Theory (30 marks)
This section consists of Long Questions. Answer all the questions.
Each question carries 15 marks.
1. Managerial accounting information is sometimes described as a means to an end whereas
financial accounting information is described as an end in itself. In what sense is this true?
2. Absorption and variable costing are two different methods of measuring profit and valuing
inventory. Explain.
END OF SECTION C

IIBM Exam paper:International Business Management:contact us for answers at assignmentssolution@gmail.com

Examination Paper: International Business Management
1
IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
International Business Management
Section A: Objective Type (30 marks)
•This section consists of multiple choice questions and short answer type questions.
•Answer all the questions.
•Part One carries 1 mark each and Part Two question carries 5 marks each.
Part One:
Multiple choices:
1. What is the series consideration for strategy implementation?
a. Strategic orientation
b. Location
c. Dimensions
d. Both (a) & (b)
2. The major activity in global marketing is:
a. Pricing policies
b. Product lines
c. Market assessment
d. All of the above
3. The third ‘P’ in the international marketing mix is:
a. Product
b. Price
c. Promotion
d. Place
4. The European Economic Community was established in:
a. 1958
b. 1975
c. 1967
d. 1957
5. Environment Protection Act:
a. 1986
b. 1967
c. 1990
d. None of the above
6. People’s attitude toward time depend on:
a. Language
b. Relationship
c. Culture
Examination Paper: International Business Management
2
IIBM Institute of Business Management
d. All of the above
7. Culture necessitates adaption of :
a. Product
b. Price
c. Promotion
d. Place
8. The legal term for brand is:
a. Symbol
b. Name
c. Trade mark
d. All of the above
9. FDI flows are often a reflection of rivalry among firms in:
a. Global market
b. Indian market
c. International market
d. None of the above
10. ISO certification is:
a. Expensive process
b. Elaborate process
c. Evaluative Process
d. Both (a) & (b)
Part Two:
1. What do you understand by ‘Inward-oriented Policies’?
2. What is ‘Factor Endowments Theory’?
3. Explain the term ‘Totalitarianism’.
4. Write about ‘Persistent Dumping’.
END OF SECTION A
Examination Paper: International Business Management
3
IIBM Institute of Business Management
Section B: Caselets (40 marks)
•This section consists of Caselets.
•Answer all the questions.
•Each Caselet carries 20 marks.
•Detailed information should form the part of your answer (Word limit 150 to 200 words).
Caselet 1
THE EU’S LAGGING COMPETITIVENESS
In a report produced for the European Commission, published in November 1998, it was argued that
the EU lags behind the USA and Japan on most measures of international competitiveness. Gross
domestic product per capita, sometimes used as an indicator of international competitiveness at the
country level, was 33 per cent lower in the EU as a whole than in the USA and 13 per cent lower
than in Japan. The EU’s poor record in creating employment was singled out for particular criticism.
As this appeared to apply across the board in most industrial sectors, it suggested that the EU’s poor
performance related to the business environment in general and, in particular, to the inflexibility of
Europe’s labour markets for goods and services. A shortage of risk capital for advanced
technological development and high cost and inefficiency of Europe’s financial services were also
highlighted by the report. For one reason or another, European industries generally lag behind in
technology industries. If measured by the number of inventions patented in at least two countries, the
USA is well ahead of most European countries, as well as Japan. Despite these shortcomings, the
report’s authors focus attention on flexible markets, market liberalisation, and the creation of a
competitive business environment rather than on targeted intervention by the EU or national
authorities
Questions:
1. Is gross domestic product per capita a useful indicator of International competitiveness in the EU?
2. Is it fair to point the blame for the EU’s poor international competitiveness at inflexible labour
markets, regulated goods and services markets, and a general lack of competition? What
alternative explanations might be suggested?
Caselet 2
PERU
Peru is located on the west coast of South America. It is the third largest nation of the continent (after
Brazil and Argentina), and covers almost 500,000 square miles (about 14 per cent of the size of the
United States). The land has enormous contrasts, with a desert (drier than the Sahara), the towering
snow-capped Andes mountains, sparkling grass-covered plateaus, and thick rain forests. Peru has
approximately 27 million people, of which about 20 per cent live in Lima, the capital. More Indians
(one half of the population) live in Peru than in any other country in the western hemisphere. The
ancestors of Peru’s Indians were the famous Incas, who built a great empire. The rest of the
population is mixed and a small percentage is white. The economy depends heavily on agriculture,
fishing, mining, and services. GDP is approximately $115 billion and per capita income in recent
years has been around $4,300. In recent years the economy has gained some relative strength and
multinationals are now beginning to consider investing in the country. One of these potential
investors is a large New York based that is considering a $25 million loan to the owner of a Peruvian
fishing fleet. The owner wants to refurbish the fleet and add one more ship. During the 1970s, the
Examination Paper: International Business Management
4
IIBM Institute of Business Management
Peruvian government nationalised a number of industries and factories and began running them for
the profit of the state. In most cases, these state-run ventures became disasters. In the late 1970s, the
fishing fleet owner was given back his ships and are getting old and he needs an influx of capital to
make repairs and add new technology. As he explained it to the NEW YORK banker: “fishing is no
longer just un art. There is a great deal of technology involved. And to keep costs low and be
competitive on the world market , you have to have the latest equipment for both locating as well
as catching and then loading and unloading the fish.”Having reviewed the fleet owner’ operation, the
large multinational bank believes that the loan is justified. The financial institution is concerned ,
however , that the Peruvian government might step in during the next couple of years and again
take over the business . If this were to happen, it might take an additional decade, for the loan to be
repaid. If the government were to allow the fleet owner to operate the fleet the way he has over the
last decade, the loan could be rapid within seven years. Right now, the bank is deciding on the
specific terms of the agreement. Once these have been worked out , either a loan officer will fly
down to lima and close the deal or the owner will be asked to come to NEW YORK for the signing.
Whichever approach is used, the bank realize that final adjustments in the agreement will have
to be made on the spot. Therefore, if the bank sends a representative to Lima, the individual will have
to the authority to commit the bank to specific terms. These final matters should be worked out within
the next ten days.
Questions:
1. What are some current issues Facing Peru? What is the climate for doing business in Peru today?
2. Would the bank be better off negotiating the loan in New York or in Lima? Why?
END OF SECTION B
Section C: Applied Theory (30 marks)
•This section consists of Applied Theory Questions.
•Answer all the questions.
•Each question carries 15 marks.
•Detailed information should form the part of your answer (Word limit 200 to 250 words).
1. Imagine that you are the director of a major international lending institution supported by funds
from member countries. What one area in newly industrialized and developing economics would
be your priority for receiving development aid? Do you suspect that any member country will be
politically opposed to aid in this area? Why or Why not?
2. The principle problem in analyzing different forms of export financing is the distribution of risks
between the exporter and the importer. Analyze the following export financing instruments in this
respect:
(a) Letter of Credit
(b) Cash in advance
(c) Draft
(d) Consignment
(e) Open Account
END OF SECTION C

AIMA sem 2 assignments:OM 01 Operations Management Assignment I:contact us for answers at assignmentssolution@gmail.com

OM 01
Operations Management
Assignment I

Assignment Code: 2012 OM01 B1                        Last Date of Submission: 15th October, 2012
                                           Maximum Marks: 100

Attempt all the questions. All questions are compulsory and carry equal marks


SECTION – A

1.    a) Distinguish between Production and Operations Management.
b) A housewife needs to manage the house for a family of 4 persons which includes two children. Explain the various Operations decisions she will need to take and what are the Operational Challenges before her.
c)   Consider the following process :
i.    manufacture of ball point pens
ii    Modernization of the Delhi Airport

For each of the above products identify the type of process that you would recommend and the major issues that would be faced by the Operations Manager.

2.    (a) One of the strategies for being cost effective is the Location of the Plant. What factors would you consider  while locating an office which caters to the tourism business. Explain the priority you would assign for each factor. 
(b)  Explain how Customer’s preferences can be incorporated while designing the product.
(c )  Distinguish between Value Analysis  and Value Engineering. When do you think it is appropriate to carry out Value Engineering. 

3.    The desired daily output for an assembly line is 360 units. This assembly line will operate 450 minutes per day. The following table contains information on this product’s task times and precedence relationship.
Task    A    B    C    D    E    F    G    H
Task time ( sec)    30    35    30    35    15    65    40    25
Immediate Precedence    -    A    A    B    C    C    E,F    D,G
a)    Draw the precedence diagram                            (6)
b)    What is the workstation cycle time                            (7)
c)    Balance the line using the longest task time heuristic and determine the efficiency of the line.

4.      Explain the role of Control Charts in Quality Control. Explain the uses and the need for having the mean chart, range chart and proportion chart.                            




SECTION- B
A leading Indian Airline charges slightly higher for travel as compared to the competitors for travel between the same pair of cities. People still prefer to fly by this airline even when the flights are in nearly similar time slots. This means that customers are willing to give a premium for the service delivery process even though the same time is taken by the airline and in the same time slot. Similarly, the first AC compartments of the Indian Railways are not sought after with the same intensity by paying customers as the 3rd AC compartments. Here the people are willing to pay the extra premium for the service. It is important to think what could be the causes, as the service delivery seems to be as important as the product itself for competitive advantage.
Think of any service place you have experienced recently. It can be a restaurant, bank, a hospital etc. Also recall what you felt was good and bad about that service. Focus only on the service delivery process and not on the service product itself.

Part I :  Think like a customer of service and develop a list of the desired features or attributes of the service, which are important to you as a customer. Then list the attributes, which will make it really unique and create a differential advantage in the sense that you will always come back to the same place for receiving that service.

Part II :  Now you have to become the owner of that service provider. Now take the list in part 1 and try to group the items under major heads. Finally make a list of  “Service delivery Process Design Requirements” that will have to be met by your service. As you do this, think of the measurable standards; i.e. what you would measure so that you can evaluate the efficiency of the service.




OM 01
Operations Management

Assignment II

Assignment Code: 2012 OM01 B2                          Last Date of Submission: 15th Nov 2012
                                                Maximum Marks: 100

Attempt all the questions. All questions are compulsory and carry equal marks.

SECTION – A

1.    (a) Are the moving averages method and the exponential smoothing method of forecasting related ? How and Why ?
(b) Quality Control is a key element in Operations Management. Trace the methods that have been used for Quality Control from the 60’s to modern times and explain the need for such changes from time to time. 

2.    (a) Enumerate the key factors critical for success of JIT system in manufacturing.

(b) Daily demand for a product is normally distributed with mean at 60 units and a standard deviation of 6 units. The lead time is constant at 9 working days. The cost of placing an order is Rs. 20 and annual holding costs are 20% of the unit price of Rs. 10. A 95% service level is required for the customers who place orders during the re-order period. Determine the Economic Order Quantity and Re-order level assuming there  are 300 working days annually.


3.    You and your friends are about to prepare a dinner because you have heard that you will not be liking the food that is being served in your hostel mess. The tasks to be performed, their immediate predecessors and their estimated time durations are as follows.

Task    Task Description    Immediate Precedence    Duration ( in minutes)
A    Buy the Mozzarella Cheese    -    30
B    Slice the Mozzarella    A    5
C    Beat 2 eggs    -    2
D    Mix eggs and ricotta cheese    C    3
E    Cut up onions and mushrooms    -    7
F    Cook the tomato sauce    E    25
G    Boil Large quantity of water    -    15
H    Boil lasagna noodles    G    10
I    Drain the lasagna noodles    H    2
J    Assemble all the ingredients    I,F,D,B    10
K    Pre heat the oven    -    15
L    Bake the lasagna    J,k    30
a)    Construct a project network for the preparation of this dinner and find the critical path.    
b)    While you were cutting up onions and mushrooms, you got a phone call from your professor and you had to attend to it. This call was for 6 minutes duration . Would your dinner be delayed? Assume that you will eat the dinner as soon the cooking is over)                       
c)    If you had used a food processor which reduces the cutting time from 7 to 2 minutes, will your dinner still be delayed.                                    

4.    (i)  Write short notes on the following
a)    Various methods by which Capacity planning decisions are made.
b)    Uses for generating a Bill of Material for a product

(ii)   Seven jobs must be processed in two Operations A and B in that sequence. Determine the Optimal order in which the jobs should be sequenced through the process using these times.

Job    Time in ( minutes) in Process A    Time in ( minutes) in Process A
1    9    6
2    8    5
3    7    7
4    6    3
5    1    2
6    2    6
7    4    7

 

SECTION-B


Amrit Lal Enterprises requires to prepare a production plan for a four month period namely February through May. For February and March, the production should exactly as per demand forecasted. For April and May, the use of overtime and inventory is permitted with a stable workforce; stable workforce means that the number of workers needed for March will be held constant through May. However, government constraints put the maximum of 5000 hours of overtime labour per month in April and May. ( zero overtime in Feb and March ) If demand exceeds supply, then backorder occur. There are 100 workers on January 31st. The forecast for the months are as follows:
              February ---   80000 units , March -----   64000 units ,  April  ----    1,00,000 , May  ----    40000 units.
Productivity is 4 units per worker hour , eight hour per day in normal time, 20 days per month. Assume zero inventory on February 1st. Costs of hiring Rs. 100 per new worker.  ; lay off Rs. 130 per worker laid off; inventory holding cost Rs. 7 per unit per month. Normal time labour cost Rs. 12 per hour , overtime Rs. 18 per hour , backorder cost Rs. 20 per unit.
Find the total cost of production for this plan. ( Neglect the material costs etc. ) 

AIMA sem 2 assignments:MM01 Marketing Management:contact us for answers at assignmentssolution@gmail.com

MM01
Marketing Management

Assignment I

Assignment Code: 2012 MM01 B1                    Last Date of Submission: 15th October 2012
                        Maximum Marks: 100


Attempt all the questions.  All questions carry equal marks.

Section A

1 a)    What is meant by the marketing concept?
                                            (10)
b)    Explain what is meant by the terms social marketing and societal marketing?
(10)

2 a)    What factors should marketer take into account in scanning the marketing environment?
                                            (10)
b)    Write short notes on the following:-

(i)    BCG Matrix
(ii)    Ansoff matrix
(iii)    McKinsey 7s Framework
(iv)    4P’s and 4A’s of marketing
(4 x 2.5)

3    Do people know what they want? (And if they do will they tell you?) Then how does sales and marketing persons evaluate consumer needs and wants? Discuss.
   

4 a)    A major detergent manufacturer proposes spending 150 crores approx. on a twelve month national advertising campaign to promote an environmentally friendly washing liquid.  Advise the marketing director how the effectiveness of the campaign could be monitored?
                                            (8)
b)    Suggest appropriate ways of segmenting the markets for the following products or services : (a) rail travel; (b) banks; (c) ballpoint pens; (d) package holidays.
(6)
c)    Is positioning helpful for not for profit organizations? If so, how should a charity select and implement a positioning strategy?  
(6)


Section B
5.    Case Study
Hyderabad Batteries Ltd.

It was the summer of 2001 and Mr Reddy, an application engineer from the high-tech battery company HBL-NIFE, Hyderabad was on vacation in his native place.  He went to visit his friend who owned a factory there.  On the day of the visit he found that his friend was in deep distress.  The power had failed and the genset (the diesel powered standby generator) could not be started because the starting battery fitted near the genset suddenly went dead.  The factory had come to a grinding halt and the entire raw material in the batch being processed would have to be discarded unless the power was restored immediately.  The production manager was in a panic.  Since the factory was located 40 km away from the nearest town, getting a replacement battery would take at least a couple of hours.  This would not only mean the loss of material for one batch, but also the time lost in preparing for the next batch.

Mr.Reddy’s host was embarrassed and furious since this was not the first time that the battery had died on him.  He had replaced the battery only a year ago and never expected that he would have a problem since the battery seemed to be working the day before when he started the genset.  He asked Mr Reddy why battery manufacturers could not come up with a better battery for gensets considering that technological advancements could now fly a man to the moon.  This set Mr Reddy thinking.  Only the other day at HBL-NIFE he had received the Airforce approval for the new aeronautic battery, which was used for starting the aircraft.  If it could start an aircraft, why not a stationary genset?  This could be a new opportunity for his company.

Background

The requirement of power in the country is growing at a fairly substantial rate and the government-run power generation and distribution companies are finding it difficult to keep pace with the requirements.  Consequently, the user is affected by way of frequent power outages due to overloading of the main utility power grid.  This situation is more acute in some states when compared to others.  Process industries that require power on a continuous basis, as a rule, started having their own captive power generation since they could not depend on power from this main utility power grid.  Some smaller industries went for their own standby gensets.  In a few cases, users even installed UPS systems (Uninterrupted Power Supply) that use batteries to store and generate the backup power on demand.  However, since UPS power is very expensive, the UPS sytems are used typically to bridge the gap between power failure and genset starting.  Oehr user segment such as telecom depend on gensets to prevent a disruption in communications when standby batteries cannot address prolonged power outages.  Gensets are the most common standby power available today and it has become common for any industry utilizing electrical power to have its own gensets for providing backup power.

When the main power fails, the drill was to start up the genset promptly and the internal power distribution switched to the backup power so that essential operations could be continued.  Starting the gensets typically requires the use of batteries to power the DC starter motor. This DC motor requires a high current for a very short time (typically less than 5 seconds for a healthy engine) to crank the engine so that its RPM (rotational speed) builds up adequately so as to be self-sustaining. The type of battery being used is the automotive battery with the most common rating of 12 volt, 180 ampere hour capacity, which is widely used in all large transport vehicles such as trucks and buses.  The advantages of using these automotive batteries for genset starting are:

•    They are available from any battery shop and sometimes even an auto garage in small towns.  A lot of small battery-shops in remote areas refurbishing old batteries have also come up.
•    The cost of a 12 V, 180 Ah battery is approximately Rs 2000 which is well within the typical cash purchase limits of an ordinary organization.
•    Very competitive prices are given by some of the “backstreet boys” who recondition truck batteries and sell them to this secondary market-the genset and inverter.
•    No special expertise is required for maintaining the battery during usage.

The disadvantages of these batteries are

•    The life of the battery is only around 2 years for a new one and 1 year if it is a reconditioned one.
•    The battery deteriorates if it is underutilized.
•    Sudden death of a battery can be caused by corrosion of its terminals and leakage.  Self discharge of the battery is high and increases with the age of the battery.
•    A new battery needs to be formed (initial-charged) for 3 days before it can be put to use. Because of this long activation time, immediate or emergency replacement is not possible.
•    Battery is heavy and difficult to transport.
•    Regular maintenance is required to top-up the batteries with demineralized water and to carry out specific gravity checks on the electrolyte used in the battery.
•    Battery causes acid fumes and spillage, with associated damage to its immediate environment.  Even floor tiles and engine beds can be damaged.

Understanding the Consumer Needs

Back in the office, Reddy lost little time to discuss the opportunity with his colleagues and his GM and MD.  A quick survey was conducted by the company by using the personal interview method to collect data from a wide user base and the manufacturers of the gensets.  The following consumer needs emerged:

•    Yes, almost all consumers will welcome a more reliable battery. (The battery should be able to start the genset whenever required and respond instantly.  After all, the very purpose of the genset is to prevent disruptions due to break in power).
•    The ideal battery for genset starting must be maintenance free.  The genset maintenance staff are usually mechanically oriented with only peripheral knowledge of storage batteries.  (Even topping up and specific gravity checks should not be needed).
•    A one-to-one replacement for the battery must be available from the shelf in a ready-to-use condition.  If this feature is assured, they can think of buying a second battery and keeping it as a replacement spare in the tools and spares rack. (There should be no delay for activation by acid filling and first charging of the replacement battery).
•    It should have a very low self-discharge, suitable for storage on the shelf.  It should not deteriorate by infrequent use or insufficient recharging. (It should be able to start the genset even if it (the battery) has not been used for a month.  In many places the arrangement is such that the battery is charged only when the generator is in use with no provision for charging from mains during normal operation).
•    It should be intrinsically designed to give a large burst of power for a short time and also restore quickly.
•    It should not cost more than the battery presently being used.(User would not like to spend more than what he is currently doing whatever the other advantages may be)
•    Smaller and lighter battery is welcome. (Not considered too important)
•    Consumer would welcome features that will ensure safety while handling and in use. (No more nuisance of acid spills or corrosive fumes)
•    Consumers have been conditioned to think that the capacity of the battery is somehow important and is an assurance for reliable starts.  The engine room mechanics and electricians felt that a capacity of 180 Ah is necessary.

The HBL-NIFE Solution

The high-tech management of HBL-NIFE felt that here is a case where every one of the identified needs could be addressed and met.  The company had the good fortune that it was already in the field of developing special batteries for special needs.  Innovation and niche marketing have been the raison d’etre of the company.  They have been supplying starter batteries to the acronautic industry and developed very compact and reliable batteries for use on board as well as on ground.  The batteries were really compact, light weight, no-spill type and had extraordinary shelf-life and power.  The batteries were specially designed to “pack a punch”.  One such battery-the model XX could be used for starting gensets with slight modification.

The Business Equations

The derated capacity of batter XX was around 30 Ah.  This would “appear” low but in supplying short bursts of power as starter battery it is in fact superior to the 180 Ah automotive battery.  Due to its low leakage, and lower capacity its recharge needs are low.

HBL-NIFE, if it considers as having already recovered the hefty development charge, can afford to treat this new business as marginal and accept an ex-works price of Rs 1500 per battery for sizeable batch orders.  There are six major manufacturers of gensets buying 10,000 batteries per year and the replacement market is another 6000.  Even if 25% of this total can be captured, it would mean a new business of 4,000 batteries valued at Rs 6 million.

The main chunk of this new business will have to come out of the 10,000 automotive batteries of 180 Ah capacity sold by the established battery manufacturers to the siz OEMs, namely the genset manufacturers.  Increasing chunks from the replacement market will follow once the XX is fitted as OEM.  As far as competitor reaction is considered, there is nothing much to fear.  For the large manufacturers of automotive batteries the genset OEM segment is so small that they may not react.  The backstreet boys that feed the replacement market will react the only way they can do – that is using their local contacts and offering further price reductions.  But in the long run they have to give way to technology.

Price intelligence was that OEMs are procuring branded batteries at Rs 1900 and for replacements users pay around Rs 2500 for branded batters and Rs 1700 for reconditioned ones.

Case Questions

1.    Based on conventional wisdom, the entire market believes that 180 Ah capacity is needed.  Should HBL-NIFE disclose the capacity of its battery?
(5)
2.    How can brand awareness be created?  HBL-NIFE is known only in the Defence and major power house sectors.  Should they create a sub-brand for civil or genset market?  How should they capitalize on the features of battery XX? (reliable, ready-to-use, packed with power, can be called up when needed, midget with the power of a giant, etc.).  Will a new brand name be needed? (Many suggestions are being given-Vamana, Lightning, Acro, Alladin, Little Genie, Punch, Start Pack, Dynamic etc.)
(5)
3.    Should HBL-NIFE concentrate on the OEM? What should be the strategy for getting the battery type approved and specified by OEM? The battery constitutes less than 1% of the cost of the entire genset.  What will motivate the OEM, technology or price?
(5)
4.    Should HBL-NIFE offer a price lesser than the competing 180 Ah or a price higher on the ground that the item is technologically superiors?  The price policy should not upset the applecart by disturbing Defense, the main customer of HBL-NIFE.  It should ensure long-term maximum profitability in the civil sector.
(5)





MM01
Marketing Management

Assignment II

Assignment Code: 2012 MM01 B2                Last Date of Submission: 15th November 2012
                        Maximum Marks: 100


Attempt all the questions.  All questions carry equal marks.

Section A

1 a)    To what extent can a brand rely solely on advertising to boost its fortunes?
                                            (10)
b)    Write short notes on the following
(i)    Brand extension
(ii)    Brand rejuvenation
(iii)    Brand loyalty
(iv)    Brand equity
(4x2.5)

2 a)    Consider a major FMCG manufacturer that wishes to add to its range a savory crisps by introducing a new health food crisp that added vitamins and minerals.  Discuss the nature of the test marketing that should be undertaken to minimize the risks associated with introducing such a new product?  Take example of any Indian company?
                                              (10)

b)    Explain what you understand by price elasticity of demand.  Give examples of inelastic and elastic products or services, discussing how the concept might be used in marketing situations?
(10)

3 a)    There are many examples of the role of noise in human communications.  One story concerns a communication exchange which purportedly took place during the first world war.  The message sent by the source was `send reinforcements, we’re going to advance.  As a result of `noise’ in the channel the message which finally arrived was `send three-and-four  pence, we’re going to a dance’.
                                             (10)

(i)    What forms of noise may have contributed to this miscommunication?
(ii)    State some ways in which this noise could have been reduced?





4 a)    Write short notes on the following:-

(i)    Sales Targets and sales quotas
(ii)    Sales Territory
(iii)    Sales control
(iv)    Direct Sales
(4 x 2.5)

    b)    What are key differences between traditional media and internet?
                                            (10)

Section B

5.    Case Study

What Makes Titan Watch Tick

A watch denotes much more than a mere device to tell time.  To the user it is a means or a tool for managing time and to plan the day. More than anything else, it is a personal possession and a constant companion.  For an increasing number of consumers, the watch is becoming an expression of personality or a fashion statement.  Consumers have come to depend on this particular item like none.  There is no wonder therefore that world over consumers like to choose watches by personal involvement.  They also will not like to be seen wearing a watch they dislike.  The diversity in human behavior being what it is, every purchase of a watch is an exercise of consumer behavior.  The consumer is always looking for the “good to wear” attribute along with the basic “good in keeping time” quality in a watch.

The general rise in living standards coupled with the pressure on time in modern society is making an accurate watch a necessity and an essential item.  At the same time for those populations who are moving into higher classes or echelons or society, owning more than one watch is common and owning a latest expensive watch is a status symbol.  It is quite common that a consumer in this class owns two or three watches at a time.  Further, such a consumer may be buying up to a dozen watches during his life time.

Watches have also become a favorite gift item.  Here, the giver as well as the receiver expect it to convey a value message, the brand itself being a significant part of the message.

With this background let us examine the scene in India which is at the same time a typically emerging consumer market and a developing country market.

The state owned Hindustan Machine Tools Ltd. (later renamed simply as HMT Ltd.) and also another state owned to Allwyn Ltd. went for two best collaborations that one can think of HMT went with Citizen of Japan and Allwyn went with Seiko of Japan. Both made good harvest during the two decades leading into the eighties.  That was when the two companies lost way and there came the new bright and bold star Titan.  Though Titan also had an effective French collaboration and a connection with the house of Tata, it went and built a brand of its own.

In the modest words of Xerexes Desai, MD of Titan for many years, luck played a very important part in favour of Titan.  However, market watchers agree that it is the hard work and shrewd brand management and astute distribution in the first place that are responsible for the phenomenal success of Titan.

Every management student wants to known what is the secret behind this success.  Nothing will throw better light on it than the following excerpts which we reproduce from the article “Clash of the Titans” published in Times of India (December 13,2000)
________________________________________________________________________
Date Line December 13, 2000, Bangalore.

Till barely a decade ago, HMT was the undisputed timekeeper of the nation.  Today, that honour goes to Titan.  Titan made watches into a fashion statement, and later go into the lower end with Sonata, where again the company has seen phenomenal success.  Even global biggies like Swatch, Citizen and Seiko have so far had little impact on the company’s market share.  Titan vice-chairman and managing director Xerxes Desai tells Deepanjali Bhas and Sujit John what makes Titan tick.

How is it that foreign watch companies haven’t set up manufacturing facilities in India?

As per the rules, if you want to call yourself a Swiss watch, 50 per cent of the movement components in a watch must be made in Switzerland and the watch itself must be assembled in Switzerland.  The only company which could set up a manufacturing facility here is the Swatch Group.  There’s been talk about this.

As for the Japanese, they have not succeeded in getting their act together.  Citizen is making its third attempt in India.  And it’s not working out well for them.  Citizen and Seiko are very much on the backfoot worldwide.  They have dramatically lost market share in Europe and the US.  They are short of human resources.  They are having trouble in their primary markets.  So when they will actually make a dent in markets like ours, cannot be said.  We have taken their share from them in markets like the Middle East and Europe.

What do you make of the Chinese Challenge?

The Chinese have no brands, but they make their watches incredibly cheap.  Throughout the work we have people buying from China and putting their labels.  They make their watches at very low costs, through heavy exploitation of labour, government protection and they enjoy an indulgent financial sector, which provides loans at low interest rates.

There’s also huge overcapacity in China.  Each manufacturer tries to outbid the other on price.  In fact, they are all doing rather badly.  But they are a threat worldwide now.  The world is flooded with cheap products from China.  But it’s not sustainable, particularly because the Chinese haven’t built any brands.

At the lower end, we too have sonata, which is doing wonderfully.  It is now outselling the Titan brand in volume.  So we are very well equipped to handle the lower end.

You don’t foresee any major challenge to Titan in the near future?

Something of a challenge can come in the middle segment – especially the fashion brands.  They buy their products from China, and they add their name.  Like Esprit.  Other brands in this segment include Guess and Fossil.  But these have built their equity in the US and Europe at a certain price.  These prices are high for India.  And it’ll be difficult for them to sell them here at lower prices.  I don’t know to what extent they’ll pose a challenge.  We’ll combat them in the same way we have been combating all along with out brand name and marketing know-how.  Our sheer size is also a barrier for them.

Have you just been plain lucky?  A decade ago, watches were virtually identified with HMT.

Yes, luck has played a very important role in Titan’s success.  HMT neglected the lower end of the market, and that helped us.

How is it that despite liberalization, in the watch industry Titan has held on to its huge market share?

Ever since quantitative restrictions on watches were taken off about three year ago, we’ve seen a fair amount of activity in terms of advertising and foreign presence in retail, but very little activity in terms of actual sales by our competitors.  Among the national players, Allwyn is dead, HMT and Timex are on life support, Maxima comes and goes.

As for newcomers, I reckon there are formidable entry barriers for them.  Foreign brands haven’t been successful because of such barriers, the fact that we have a strong grip on distribution, and the high prices of foreign watches. Among the Swiss brands, for instance, there are patricians and plebians, kings and commoners.  But they are all expensive.  The kings are beyond anybody’s reach.  And the commoners are really not worth buying at the price range they are in.

But what about the brand value attached to foreign watches?

Yes.  But if people buy these, its just once in 10 or 20 years, or once in a lifetime.  There are hardly any repeat buys of a thing like that.  And if one of those is less than Rs 40,000, it again does not make sense to buy it.  Statistically, Indians do not put down a large amount of money to buy a watch.  Percentage of people how are wiling to pay over Rs 10,000 for a watch I think would be really small.
However, what these Swiss watches would do is to create a market segment for us at the upper end.  People who have so long not seen watches beyond Rs 6,000 – 7,000, are now exposed to watches priced at Rs 100,000 – 200,000.  This we imagine would create a desire to own more expensive watches.  And in turn create an opportunity for us in the upper segment.  We are right now waiting for that opportunity to manifest itself, and it’s beginning to happen.  We are looking at introducing a new brand in this segment, a luxury brand that would have an appeal greater than that of Titan.

We began with the Middle East, built a strong presence there.  In our segment we are among the top three or four brands in the UAE and Oman.  We are No. 1 in Oman in volume terms.  We are doing moderately well in South East Asia, which now needs more attention.  These markets have been neglected by everybody else.  Bangladesh, Sri Lanka and Myanmar are markets that even the Japanese have neglected.

We are doing modestly well in Europe.  Our initial heavy investments were in getting to know the market, establishing distribution.  We expect current operations to break even this year.  But with one important qualification: the ad spend continues to come from India.  Two, three years from now, the volumes generated in Europe should take care of the ad spend too and the operation should start making profits.  We are concentrating now in a few countries – Portugal, Spain, France and the UK.  If you have to be a global player, you have to show your European credentials.  Europe is a very demanding market.

Have you ever thought of having brand ambassadors, like the Swiss brands do?

Celebrity endorsement does make sense.  Omega has 15 brand ambassadors but it’s a huge expense.  We’ve looked at the possibility but right now, no.  We might do it later for a really premium brand.

Case Questions

1.    What aspects of behaviour of Indian consumers were addressed by Titan.
                                            (4)
2.    Why is Titan not keen on celebrity endorsement at this point of time.
                                            (4)
3.    If Citizen of Japan and Swatch of Switzerland were to enter India what will be the consumers’ brand perceptions vis-à-vis Titan?
                                            (4)
4.    Wrist watch is consumed by both men and women consumers but for different perceptions of need.  Discuss.
                                            (4)
5.    Can Titan promote wrist watches as items of jewellery or as items of investment?
                                            (4)

AIMA sem 2 assignments:HR01 Human Resource Management:contact us for answers at assignmentssolution@gmail.com

HR01
Human Resource Management

Assignment I


Assignment Code: 2012 HR01 B1                                Last Date of Submission: 15th October 2012
                                               Maximum Marks: 100

Attempt all Questions.  All questions carry equal marks.

Section A

1.    Explain how the increased globalization of business is making the contribution of human resource departments more important.                                     (20)

2.    Define and differentiate between Job Analysis, Job Description.  Discuss Job Evaluation Method and create a plan for evaluating jobs of Sales Persons at different levels in an organization.      (20)

3.    a.    Discuss briefly the importance of Human Resource Information Systems.

b.         What are the alternatives to recruitment?                              (10+10=20)

4.    As organizations become more global, human resource planning becomes more important and complex.  Explain.                                             (20)

Section B
Case Study

In one public sector undertaking, a line manager was appointed as the Chief of Personnel.  Within a year after taking up the assignment, he had to sign a wage agreement with the workers union.  Non-technical staff dominated the union at that time.  The union charter of demands favoured the interests of the dominant work group.  It asked for revision in gardener’s pay, but did not press for increase in the pay scales of workers in certain technical grades.  The management conceded these demands because the union cooperated with them in keeping the burden of pay revision well within the guidelines of the Bureau of Public Enterprises.

Once the agreement was signed and communicated, there was a commotion among the technical staff.  They walked out of the union, joined a separate technical staff union and marched around the company premises, holding placards which read – “Here grass Cutters get more than the gas cutters.  In the engineering assembly unit, till the pay revision occurred welding was highly rated job, but not any longer.  Now gardeners get more than welders”.


Questions:

1.      What happens if grass cutters get more than gas cutters?                          (5)
2.    Evaluate the approach of both management and union in the incident.                    (10)
3.    List the lessons learned. Suggest a way out of the problem on hand.                      (5)

HR01
Human Resource Management

Assignment II


Assignment Code: 2012 HR01 B2                            Last Date of Submission: 15th November 2012
                                                     Maximum Marks: 100

Attempt all Questions.  All questions carry equal marks.

Section A

1.    Discuss the meaning and significance of employee benefits.  Highlight different types of benefits provided to employees in India?                                    (20)

2.    How would you formulate the aims and objectives of a training program?  Explain with an example.  How are training needs identified for different levels of employees in an organization?                                                                           (20)

3.    Performance Appraisal has been of significance since times immemorial.  Compare the traditional and modern methods of performance appraisal.                            (20)

4.    Write short notes on the following:

a.    Career Planning
b.    Collective Bargaining
c.    Employee Empowerment
d.    Future of Indian Industrial Relation Scenario                          (4x5=20)


Section B
Case Study

The information technology software services company decided to be proactive.  The top management believed it was well placed to bag a project for which it had put in a bid and the HR department of the company was informed accordingly.  The HR department set the ball rolling for recruitment.  On recruitment process being over, they started investing for training the new recruits in order to have their skills required for the project to take off .When training of executives was nearing completion, a bad news came in that the contract was awarded to one of their competitors.  The bad time for the company was not yet over.  The company which bagged the contract for the project could pick up most of the trained professionals from the losing company.  In the process the company got a severel jolt.

Questions:

1.    On which counts did the losing company get the jolt and why?

2.     What is the learning point from HR angle out of this incident and how could have such a situation been averted?                                                   (10+10=20)

AIMA sem 2 assignments:GM 07 Research Methodology:contact us for answers at assignmentssolution@gmail.com

GM 07
Research Methodology

Assignment I

Assignment Code: 2012 GM 07 B1        Last Date of Submission: 15th October 2012
                                                                                                                    Maximum Marks: 100

Attempt all the questions. All questions carry equal marks.

Section A

1.    What are the types of market research? In present day business, explain the usage of market research, with reference to : a) Product Planning, b) Pricing, c) Physical Distribution & d) Promotional & Advertising

2.    When dealing with any market research project, what points should be kept into mind while defining the problem? Briefly explain the advantages of considering these points while defining a research purpose?

3.    Comment on the under mentioned statement :
`A sample may be large yet worthless because it is not random, or it may be random but unreliable because it is small’  Also, explain the importance of sampling in normal quantitative research studies.

4.    Write short notes on the mentioned topics :
a)    Objective characteristics and inferred characteristics
b)    Usage of weighted scales
c)    Editing of primary data
d)    Operating & Strategic decisions
e)    Decision making unit

Section B

ONE DELHI BASED FLOUR MILL - PRODUCT LAUNCH :

In 1992, one of the Delhi based flour mills had planned out a new product launch. This was a salty snack, that was to be launched.  They deputed a professional market research firm for this pre-launch study. Basically they demanded from the study, a) Market acceptance of their product, b) Acceptability  in which specific `Socio Economic Classification’ of  Delhi’s consumer market and finally c) The product branding that will ideally suit their launch. Their accounts section, based on the product manufacturing raw cost and distribution cost, derived that the ideal pricing for the 500 grams pack would be Rs.5.50 .

After completing the pre-launch study they launched their product. As per the study, their prime target segment was the students from the middle & upper middle class families. They advertised also on the satellite channels for various family based serials and few local English dailies.

After three months of launch, their Accounts MIS showed sale of the product was less than 50 % of the expected sales. The retail placement was also proper, but somehow their product was not getting the expected market turnover.

As per their marketing departments recommendation, again the Research firm was contacted, and responsibility was given out to derive the reason for this low market acceptance. The result was derived, the price at which they had launched their product, was a bit under their target segments assessment. The ideal pricing came out to be Rs.8.00 to Rs.10.00 per pack. They had to re-launch their product, and in the process the cycle of Re-Branding, Promotion and all this aspects had to be redone. This time thankfully, their accounts section 1st quarter post-launch  data showed Productivity .

Question :

1.    If you were the one who had the responsibility to formulate the pre-launch study, design a suitable proposal for the same
2.    Also, if you decide to use survey design the questionnaire that you would use for the same. If you decide not to use survey, how will you solve the problem.





GM 07
Research Methodology

Assignment II

Assignment Code: 2012 GM 07 B2         Last Date of Submission: 15th November 2012
                                      Maximum Marks: 100

Attempt all the questions. All questions carry equal marks.

Section A

1.   
(a)    What is the difference between a management problem and a research problem?
(b)    How many types of errors may be encountered in a marketing research? What are the methods of minimizing such research errors?
2.   
(a)    What is the difference between Quantitative and Qualitative research ?
(b)    Which of the following questions can be tested experimentally and which can not? Where a test is possible, briefly suggest an approach. Where a test is not possible, explain why?
i.    Do children from urban areas drink more coffee and less milk than those from suburban areas?
ii.    Would frequent shoppers reactions to a retailer changing his store layout differ from those of infrequent shoppers?
iii.    Should a petrol pump provide a soft drink vending machine at the outlet?
iv.    How to compare the effectiveness of two faculty members teaching Quantitative Techniques to different sections in a management institute?
v.    How to sensitize DTC Bus drivers towards safe driving on Delhi roads?  

3.    Suppose, your company has spent a large amount on advertising its Products, what will be the methodology you will use to gauge the effectiveness of the same, from various segments like a) Whole Seller, b) Retailer & c) Consumers
4.    What are the bases on which Market Segmentation is created? Explain the segmentations with reference to Indian Consumer Market?



Section B

A PRINT MEDIA COMPANIES CHANGED PRESENTATION :

A Print media company, for the last 5 years were producing a monthly English magazine. This magazines basically covered all aspects, like main news from politics, sports, entertainment, kids specific, portion business etc. It was a 132 page magazine and had their target market as `English Magazine Readers – All India. The magazine through its subscription and commercial space sold had achieved `Break Even Point’. There was certain change in the top management, and as per their planning, they wanted to change this print production to an weekly periodical.
A Survey amongst the `Present Readers’ of the magazine was done, as to the topic choice, length of presentation, area that they want covered, style that they prefer and the like. The new magazine was launched, with proper promo and all. Post six months, the Research & Development wing of the magazine found, that `Gross Readership of the magazine has gone down, thus the commercial, rate and quantum space sold ratio has also declined
The management was a bit confused, because they had designed and edited the magazine as per the `Would be Readers Expectations’. They now wanted to study the reason for not achieving the same.

Question 5 :

a.    By deploying marketing research how will you ascertain the reasons for failure of this product?
b.    What kind of sampling method would you use and why?

AIMA Sem 2 assignments:GM02 Economic and Social Environment of Business:contact us for answers at assignmentssolution@gmail.com

GM02
Economic and Social Environment of Business

Assignment I


Assignment Code: 2012 GM02 B1                                    Last Date of Submission: 15th October 2012
                                               Maximum Marks: 100

Attempt all Questions.  All questions carry equal marks.

Section A

1.    What do you understand by the socio-cultural environment of business and how is it important for business?  Briefly explain with the help of suitable examples.                        (20)

2.    Write short note on:
a.    Difference between Economic Growth and Economic Development
b.    Unemployment                                            (10+10=20)

3.    Bring out distinguishing features of industrial policy of 1991 and its impact on the technology status of Indian industry.                                       (20)

4.    What measures have been adopted by government to control inflation?  What is the relationship between unemployment rate and inflation rate?                            (20)

Section B
Case Study: Auto makers may see decline in net profit

Market leaders in different categories led by Maruti Suzuki India Ltd., India’s largest seller of cars, may say net profit grew for the third quarter of fiscal 2008 as they sold more vehicles in the festival season. But most other companies, especially two-wheeler and commercial vehicle makers, are likely to report a decline in net profit or a muted growth in earnings as lending rates that are at a five-year high curbed buying and eroded sales.

Fewer trucks, passenger vehicles (cars and utility vehicles) and two-wheelers were sold in the three months ended December, and sales fell by 1.8% in that period – the third straight quarterly decline, as high interest rates forced customers to defer purchases. As many as 85% of India’s passenger vehicles and 60% of two-wheelers are financed by banks or other financiers.

The company that is likely to post the largest yearly increase in profit for the quarter ended December is Maruti, according to the average of estimates of five analysts whom Mint polled.

Maruti sold more cars in the quarter, riding on higher festive season buying and rebates. The festival season, which includes Dussehra and Diwali, is considered an auspicious time to purchase consumer durables.  Maruti is expected to record a 22.53% increase in its net profit at Rs.461.2 crore for the quarter.

“Maruti would be able to enhance its profitability due to successful cost reduction, productivity improvement and increased localization,” wrote Amit Kasat and Rohan Korde, analysts at Motilal Oswal Securities Ltd. in a report.

Still, rising input/power costs, consolidation of the Manesar assembly plant and higher royalty payments owing to new model launches are challenges to margins.

Mahindra and Mahindra Ltd., India’s largest seller of utility vehicles, is expected to say sales rose by 14% as it sold more Scorpio and Bolero models.  Its profits are likely to grow at a slower rate due to a decline in the sales of tractors which are more profitable, but are bought by customers who are more interest-rate-sensitive.  As with tractors, commercial vehicle makers Ashok Leyland Ltd. and Tata Motors Ltd. too, are facing the brunt of higher interest rates as truck sales slowed to a single digit increase in the quarter ended December after posting double-digit growth in the past three years.

While Tata Motors is expected to post a flat growth in profit, rival Ashok Leyland is likely to say both sales and net profit declined.

In the two-wheeler segment, Hero Honda Motors Ltd., the country’s largest two-wheeler maker and the only listed company to post an increase in sales, is likely to show an increase in net profit of 9.4%.

“In two-wheelers, margins will be under pressure due to higher raw material costs, and advertising and marketing costs as a result of new launches in the case of Bajaj Auto and TVS Motor,” said Vaishali Jajoo, automotive analyst with Angel Broking Ltd.

TVS Motor Co. is introducing as many as nine new products in the year to March (its first launch was in August 2007) but cannot sell one of these, the Flame – this was to be the cornerstone of its turnaround – because the model was stuck in a patent litigation.  Bajaj Auto Ltd. launched the XCD model, which helped it arrest the decline in sales, but promotional expenses on the product and rebates of up to Rs.3,000 on the Platina model are likely to dent its profit.

Questions:

i.    What factors forced two-wheeler and commercial  vehicle  makers  to  report  a decline in net profit?  What challenges are faced by Maruti Suzuki India Ltd. in the ever-changing business environment?                                                                             (20)


GM02
Economic and Social Environment of Business

Assignment II


Assignment Code: 2012 GM02 B2                        Last Date of Submission: 15th November 2012
                                             Maximum Marks: 100

Attempt all Questions.  All questions carry equal marks.

Section A

1.    Examine the growth of public sector in India and analyze its contribution to overall economic development.                                            (20)

2.    Write short notes on:
a.    Industrial sickness in India
b.    Recent Developments in  Indian  Banking System                                                              (10+10=20)

3.    Briefly describe the Indian Financial System and analyze the significance and need for financial reforms.                                            (20)

4.    What are the various changes and improvements brought in in the competition act over the  
               MRTPAct, Explain                                                                                        (20)

Section B
Case Study: Taming the Amazon

People who lived along the Amazon were frequently rendered homeless by floods in Amazon, a river that originates in Andes Range of mountains in the western side of South America and falls in Atlantic Ocean on the eastern side of the continent.  During the rest of the year, the water flow in the river fluctuated drastically, depending the temperature and the rainfall.  Consequently, the people of Brazil suffered either devastating floods or water famines.  The Government of Brazil studied the problem and came up with the proposal to construct a dam, a reservoir and a network of canals.  With the help of dam the flood water would be stored in the reservoir, which will then be released as per need in different areas through a system of canals.  The direct benefits of the project would include savings due to flood control, increased agricultural output and additional employment, while the indirect benefits consisted of additional employment and profits of the firms that process the additional agricultural output as well as the increased tax revenue of the government.

The project was to be funded by the Federal and State Governments to the extent of 89 percent, while the rest of the funds would come as aid from the governments of U.S.A. and Canada.  The funding agencies together created an organization to collect the relevant data, which will form a basis of analysis by each of these agencies.  Based on the data provided by this organization, the Federal Government of Brazil undertook benefit-cost analysis of both the dam-reservoir and canal components and it was decided that the project be taken up.  The other funding agencies did not agree with the decision of the Federal Government.  Consequently, the project was delayed for a long time and its construction could begin after a long contracted negotiations between the funding agencies.

Questions:

i.    When all funding agencies were working with the same data and a standard procedure to calculate benefit-cost ratio how could they differ from each other?

ii.    What main issues, according to you, would have figured in the negotiations?  If you were the Principal Representative of the Federal Government how would you present the case of your government?                                          (10+10=20)