Sikkim manipal Solved MBA Assignments, SMU MBA, Solved assignments, 1st sem, 2nd sem, 3rd sem, 4th sem, SMU MBA PROJECTS

Email Us

Sem 4 Finance

Master of Business Administration- MBA Semester 4

MB0052— Strategic Management and Business Policy – 4 Credits (Book ID: B1314)

Assignment (60 marks)

Note: Assignment Set -1 must be written within 6-8 pages. Answer all questions.

1-5 Question number 10 Marks (350-400 words)

Q1.Define the term “Strategic Management”. Explain the importance of strategic management.

Answer : Strategic management analyzes the major initiatives taken by a company’s top management on behalf of owners, involving resources and performance in internal and external environments.[1] It entails specifying the organization’s mission, vision and objectives, developing policies and plans, often in terms of projects and programs, which are designed to achieve these objectives, and then allocating resources to implement the policies and plans, projects and programs. A balanced scorecard is often used to evaluate the overall performance of the business and its progress towards objectives. Recent studies and leading management theorists have advocated that strategy needs to start with stakeholders expectations and use a modified balanced scorecard which includes all stakeholders.


Importance of strategic management


  • A rapidly changing environment in organizations requires a greater awareness of changes and their impact on the organization. Hence strategic management plays an important role in an organization.


  • Strategic management helps in building a stable organization.


  • Strategic management controls the crises that are aroused due to rapid change in an organization.


  • Strategic management considers the opportunities and threats as the strengths and weaknesses of the organization in the crucial environment for survival in a competitive market.


  • Strategic management helps the top level management to examine the relevant factors before deciding their course of action that needs to be implemented in changing environment and thus aids them to better cope with uncertain situations.


  • Changes rapidly happen in large organisations. Hence strategic management becomes necessary to develop appropriate responses to anticipate changes.


  • The implementation of clear strategy enhances corporate harmony in the organisation. The employees will be able to analyse the organisation’s ethics and rules and can tailor their contribution accordingly.


  • Systematically formulated business activities helps in providing consistent financial performance in the organisation.


  • A well designed global strategy helps the organisation to gain competitive advantages. It increases the economies of scale in the global market, exploits other countries resources, broadens learning opportunities, and provides reputation and brand identification.


Q2.Describe Porter’s five forces Model.    

Answer: Porter suggests that there are five basic competitive forces, which influence the state of competition in an industry.



Q3.Define the term “Business policy”, Explain its importance.  

Answer: Business Policy defines the scope

Q4.What, in brief, are the types of Strategic Alliances and the purpose of each? Supplement your answer with real life examples.     

Answer: Types of Strategic Alliances and Business Decisions

The mutual agreements between the organisations can take a number


Q5.Explain the concept, need for and importance of a Decision Support System.

Answer: A decision support system (DSS) is a computer-based information system that supports business or organizational decision-making activities. DSSs serve the management,

 Q6.Write short notes on:

a) Corporate social responsibility

Answer: A popular explanation of the term Corporate social responsibility ,CSR is the continuing commitment by businesses to behave ethically


MB0053 —International Business Management -4 Credits(Book ID:B1315)

Assignment (60 marks)

Note: Assignment Set -1 must be written within 6-8 pages. Answer all questions.

1-5 Question number 10 Marks (350-400 words)

Q1. Write a short note on GATT and WTO, highlighting the difference between the two. 

Answer : General Agreement on Tariff and Trade(GATT) was established on a provisional basis after the Second World War in the wake of other new multilateral institutions dedicated to international economic cooperation — notably the “Britton Woods” institutions now known as the World Bank and the International Monetary Fund.

The original 23 GATT countries were among over 50 which agreed a draft Charter for an International Trade Organization (ITO) — a new specialized agency of the United Nations. The Charter was intended to provide not only world trade disciplines but also contained rules relating to employment, commodity agreements, restrictive business practices, international investment and services.

In an effort to give an early boost to trade liberalization after the Second World War and to begin to correct the large overhang of protectionist measures which remained in place from the early 1930s-tariff negotiations were opened among the 23 founding GATT “contracting parties” in 1946.


World Trade Organization came into existence in 1995 after the desolation of General Agreement on Tariff and Trade (GATT).The WTO’s overriding objective is to help trade flow smoothly, freely, fairly and predictably. It does this by:

  • Administering trade agreements
  • Acting as a forum for trade negotiations
  • Settling trade disputes
  • Reviewing national trade policies
  • Assisting developing countries in trade policy issues, through technical assistance and training programs
  • Cooperating with other international organizations


The WTO has nearly 150 members, accounting for over 97% of world trade. Around 30others are negotiating membership. Decisions are made by the entire membership. Thesis typically by consensus. A majority vote is also possible but it has never been used in the WTO, and was extremely rare under the WTO’s predecessor, GATT. The WTO’s agreements have been ratified in all members’ parliaments.


The WTO is run by its member governments. All major decisions are made by the membership as a whole, either by ministers (who meet at least once every two years) or by their ambassadors or delegates (who meet regularly in Geneva). Decisions are normally taken by consensus.


Difference between WTO and GATT:-

The World Trade Organization is not a simple extension of GATT; on the contrary, incompletely replaces its predecessor and has a very different character. Among the principal differences are the following:


a. The GATT was a set of rules, a multilateral agreement, with no institutional foundation, only a small associated secretariat which had its origins in the attempt to establish an International Trade Organization in the 1940s. The WTO is permanent institution with its own secretariat.

b.bathe GATT was applied on a “provisional basis” even if, after more than forty years, governments chose to treat it as a permanent commitment. The WTOcommitments are full and permanent.

c.cither GATT rules applied to trade in merchandise goods. In addition to goods, theta covers trade in services and trade-related aspects of intellectual property.

d.While GATT was a multilateral instrument, by the 1980s many new agreements had been added of a plural-lateral, and therefore selective, nature. The agreements which constitute the WTO are almost all multilateral and, thus, involve commitments for the entire membership.

Q2. Describe various entry strategies available to a firm when it wants to enter a foreign market.                                                                                              

Answer : There are a variety of ways in which a company can enter a foreign market. No one market entry strategy works for all international markets.

Q3. Write a note on ‘Globalization’.                                                            

Answer : Globalization is the process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture

Q4. What does FDI stand for? Why do MNCs opt for FDI to enter international market?

Answer : Foreign direct investment (FDI) is a

Q5. What is the need to understand cultural differences? Explain Hofstadter’s cultural dimensions. 

Answer : All of us global minds have been confronted

Q6. Write short notes on:


a) Ethnocentric approach


Answer : When a company follows the

b) Polycentric approach                                                                



Master of Business Administration- MBA Semester 4

MF0015 —International Financial Management- 4 Credits

Q1. What are the goals and functions of the World Bank, the IDA and the IFC?

Answer: – The World Bank  

The World Bank group is a multinational financial institution established at the end of World War II (1944) to help provide long-term capital for the reconstruction and development of member countries.

The purposes for the setting up of the Bank are

– To assist in the reconstruction and development of territories of members by facilitating the investment of capital for productive purposes, including the restoration of economies destroyed or disrupted by war, the reconversion of productive facilities to peacetime needs and encouragement of the development or productive facilities and resources in less developed countries.

– To promote private foreign investment by means of guarantees or participation in loans and other investments made by private investors; and when private capital is not available on reasonable terms, to supplement private investment by providing, on suitable conditions, finance for productive purposes out of its own capital, funds raised by it and its other resources.

– To promote the long-range balanced growth of international trade and the maintenance of equilibrium in balance of payments by encouraging international investment for the development of the productive resources of members, thereby assisting in raising productivity, the standard of living and condition of labour in their territories.

– To arrange the loans made or guaranteed by it in relation to international loans through other channels so that the more useful and urgent projects, large and small alike, can be dealt with first.

-To conduct its operations with due regard to the effect of international investment on business conditions in the territories of members and, in the immediate post-war years, to assist in bringing about a smooth transition from a wartime to a peacetime economy.

The World Bank is the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). The IBRD has two affiliates, the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA). The Bank, the IFC and the MIGA are sometimes referred to as the “World Bank Group”.

International Development Association

The IDA was formed in 1960 as a part of the World Bank Group to provide financial support to LDCs on a more liberal basis than could be offered by the IBRD. The IDA has 137 member countries, although all members of the IBRD are free to join the IDA. IDA’s funds come from subscriptions from its developed members and from the earnings of the IBRD. Credit terms usually are extended to 40 to 50 years with no interest. Repayment begins after a ten-year grace period and can be paid in the local currency, as long as it is convertible. Loans are made only to the poorest countries in the world, those with an annual per capita gross national product of $480 or less. More than 40 countries are eligible for IDA financing.

An example of an IDA project is a $8.3 million loan to Tanzania approved in 1989 to implement the first stage in the longer-term process of rehabilitating the country’s agricultural research system. Cofinancing is expected from several countries as well as other multilateral lending institutions.

Although the IDA’s resources are separate from the IBRD, it has no separate staff. Loans are made for similar projects as those carried out by IBRD, but at easier and more favorable credit terms.

As mentioned earlier, World Bank/IDA assistance historically has been for developing infrastructure. The present emphases seems to be on helping the masses of poor people in the developing countries become more productive and take an active part in the development process. Greater emphasis is being placed on improving urban living conditions and increasing productivity of small industries.

International Finance Corporation

The IFC was established in 1956. There are 133 countries that are members of the IFC and it is legally and financially separate from the IBRD, although IBRD provides some administrative and other services to the IFC. The IFC’s main responsibilities are

(i)                 To provide risk capital in the form of equity and long-term loans for productive private enterprises in association with private investors and management;

(ii)               To encourage the development of local capital markets by carrying out standby and underwriting arrangements; and

(iii)             To stimulate the international flow of capital by providing financial and technical assistance to privately controlled finance companies. Loans are made to private firms in the developing member countries and are usually for a period of seven to twelve years.

The key feature of the IFC is that its loans are made to private enterprises and its investments are made in conjunction with private business. In addition to funds contributed by IFC, funds are also contributed to the same projects by local and foreign investors.

IFC investments are for the establishment ne1x enterprises as well as for the expansion and modernization of existing ones. They cover a wide range of projects such as steel, textile production, mining, manufacturing, machinery production, food processing, tourism and local development finance companies

Q2. What is a credit transaction and a debit transaction? Which are the broad categories of international transactions classified as credits and as debits?

Answer: – 1. Credit Transactions (+) are those that involve the receipt of payment from foreigners. The following are some of the important credit transactions:

Q3. Write a note on exchange rate regime and foreign exchange market in India.

Answer:-  An exchange-rate regime is the way an authority manages its currency in relation to other currencies and the foreign exchange market. It is closely related to monetary policy and the two are generally dependent on many of the same factors.

Q4. An American firm purchases $4,000 worth of perfume (FF 20,000) from a French firm. The American distributor must make the payment in 90 days in French francs. The following quotation and expectations exist for the FF.

Q5. Define a futures contract. What are the different types of futures contracts? What are the advantages of using stock index futures?

Answer:- A futures contract (more colloquially, futures

Q6. Define Interest Rate Parity. What are the different types of IRP?

Answer: – A theory in which the interest rate differential between

Master of Business Administration- MBA Semester 4

MF0017 — Merchant Banking and Financial Services- 4 Credits

Q1. Identify the role of merchant banking as financial intermediaries.

Answer: A well developed non-bank financial sector is viewed as an important component of a healthy and efficient financial system that can provide a sound base for growth and prosperity in the economy. This study observes that the non-bank financial sector has developed significantly in the SEACEN countries in the last two decades and it has helped widen and deepen the financial systems in these countries. The degree and scope of non-bank financial intermediation varies in the SEACEN region according to the extent of development of the financial systems. In more developed financial systems like those of Korea, Taiwan, Singapore, Malaysia, Thailand, and Philippines, the non-bank financial intermediation has reached the maturity stage while in the less developed financial systems of Sri Lanka and Nepal, such intermediation is still in the growing stage. Various types of non-bank financial institutions (NBFIs) are operating in the SEACEN countries.

Finance companies, development financial institutions, merchant banks, insurance companies and pension funds are the major types of NBFIs found in almost all the SEACEN countries. There has been a remarkable decline in the number of NBFIs in Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan and Thailand during the last decade, specifically after the financial crisis of 1997 while all types of NBFIs have been constantly growing in Sri Lanka and Nepal. The market share of NBFIs in the SEACEN countries range between 15 and 43 percent in terms of assets, between 7 and 33 percent in terms of deposits, and between 9 to 27 percent in terms of loans.

The overall performances of NBFIs show that the non-bank financial intermediation occupies a significant position in the financial system in the SEACEN region. Monetary policy can be transmitted to a wider section of the economy through the activities of NBFIs as they integrate the scattered economic units to the national economy. Another positive effect of the non-bank financial intermediation in the conduct of monetary policy is the change brought by it in the deposit structure in the economy. NBFIs have induced a change in the deposit structure in the SEACEN countries and thus made more funds available for loans. This is because of the low or no reserve requirement imposed on NBFIs. Major challenges posed by the non-bank financial intermediation in the conduct of monetary policy include the likely pressure induced in the interest rate, reduced effectiveness of credit control, and the reduced reliability of monetary aggregates as intermediate policy targets. NBFIs offer attractive interest rates normally above those of banks and the banks may also increase their interest rates to compete in the market. Such pressure may reduce the effectiveness of policy induced interest rate changes.

On the other hand, when a central bank wants to reduce the volume of credit by increasing the reserve ratio, the effect of such intervention is partially offset by the amount of non-bank credit as NBFIs are subject to low or no reserve requirement. Similarly, with the growing level of non-bank financial intermediation, the appropriateness of monetary aggregates as intermediate target has been reduced markedly in the SEACEN countries. The main reason for such reduced attractiveness of the monetary aggregates is the complete or partial exclusion of the activities of NBFIs in the compilation of these aggregates. These facts reveal that the growing level of non-bank financial intermediation has complicated the conduct of monetary policy in the SEACEN countries. Non-bank financial intermediation can add to the health and stability of financial system by making it complete, balanced and sophisticated. NBFIs supplement the role of commercial banks in providing financial services in the economy by serving the section of population generally not covered by banks, help improve the operational efficiency through enhanced competition in the market and improve the resilience of the financial system. Non-bank financial intermediation also brings some challenges to the stability of financial system, mainly arising from their inadequate supervision. Inadequately supervised NBFIs may pose a threat to the stability of the financial system. High risk investments, high credit-deposit ratio and higher level of nonperforming assets of NBFIs increase volatility in the financial system.

Despite some problems posed in the conduct of monetary policy and financial stability, NBFIs are still the important players in the financial system in the SEACEN countries. NBFIs play both a supplementary and competing role in the financial market. In the recent years, the competing portion has been more pronounced. Therefore, they should be motivated to focus more on their supplementary role. As most of the problems associated with non-bank financial intermediation arise from the inadequate supervision of NBFIs, they should be brought under the supervision of some competent agencies while ensuring that their intermediary role be not adversely affected. The recent restructuring of financial landscape has led to the merger, upgrading and even closure of various types of NBFIs in the majority of the SEACEN countries. This may reduce financial intermediation and the access of certain sections of the population to financial services. Therefore, reforms and restructuring should ensure that NBFIs continue their intermediary roles. The growing unreliability of the monetary aggregates occurs when the information not included in them becomes significantly large.

Monetary aggregate targeting may still be an effective monetary policy framework provided that the aggregates contain complete information. In this regard, in the countries still adopting the monetary targeting framework, a gradual shift to use even broader monetary aggregates could be planned rather than switching to a completely different monetary policy regime.

Q2. Describe the issuance process of depository receipts.

Answer: GDRs are the best way of raising finance from USA and other European countries’ investors. No Indian company has right to sell their shares in foreign capital market without GDRs. So, it is very necessary to know the procedure of issue GDRs. Only GDRs connects foreign investors with Indian Companies.

Q3. Explain the operational guidelines that need to be followed by a merchant banker.

Answer: Merchant Banks – Merchant banks are approved under the Monetary Authority of Singapore Actand their operations are governed by the Merchant Bank Directives.

Q4. Explain the basic features of securities lending and borrowing scheme.

Answer : Features of SLBS

NSCCL as an Approved Intermediary

Q5. Discuss the difference between asset and fee based financial services.

Answer: Asset-Based Lending or financial services –

Q6. Describe accounting and reporting for operating lease in detail.

Answer: What is a lease? A lease is simply an agreement between two parties for the hire of an asset. The lesser is the legal owner of the asset who rents out the asset to the lessee


Master of Business Administration- MBA Semester 4

MF0018 —Insurance and Risk Management- 4 Credits


Q1. Briefly explain the six risk management processes.

Answer : Risk Management Process Overview – The following diagram illustrates the six steps of the risk management process: identify, analyze and prioritize, plan and schedule, track and report, control, and learn. It is important to understand that the process of managing each risk goes through all of these steps at least once and often cycles through numerous times. Also, each risk has its own timeline, so multiple risks might be in each step at any point in time.

 Risk Management Process Steps

The following is a brief introduction to the six steps of the risk management process.

  • Identify – Risk identification allows individuals to identify risks so that the operations staff becomes aware of potential problems. Not only should risk identification be undertaken as early as possible, but it also should be repeated frequently.
  • Analyze and prioritize – Risk analysis transforms the estimates or data about specific risks that developed during risk identification into a consistent form that can be used to make decisions around prioritization. Risk prioritization enables operations to commit resources to manage the most important risks.
  • Plan and schedule – Risk planning takes the information obtained from risk analysis and uses it to formulate strategies, plans, change requests, and actions. Risk scheduling ensures that these plans are approved and then incorporated into the standard day-to-day processes and infrastructure.
  • Track and report – Risk tracking monitors the status of specific risks and the progress in their respective action plans. Risk tracking also includes monitoring the probability, impact, exposure, and other measures of risk for changes that could alter priority or risk plans and ultimately the availability of the service. Risk reporting ensures that the operations staff, service manager, and other stakeholders are aware of the status of top risks and the plans to manage them.
  • Control – Risk control is the process of executing risk action plans and their associated status reporting. Risk control also includes initiating change control requests when changes in risk status or risk plans could affect the availability of the service or service level agreement (SLA).
  • Learn – Risk learning formalizes the lessons learned and uses tools to capture, categorize, and index that knowledge in a reusable form that can be shared with others.


Q2. Write the significant changes in the global scenario of insurance

Answer:   The global insurance industry is one of the largest sectors of finance. It ranges from consumer to corporate and industrial insurance, and even reinsurance, or insurance of insurance.

Q3. Describe the recommendations of the Malhotra committee

Answer: Recommendations of Malhotra committee


The major reforms in Indian industry started when the

Q4. Explain the IRDA ‘Preparation of Financial Accounts and Investment’ guidelines.

Answer : THE Insurance Regulatory and Development Authority (IRDA)


Q5. Write down the purpose, functions and advantages of life insurance.

Answer: Purpose – A life insurance policy is taken out to provide a sum of money when the policy holder dies. Life insurance policies are designed to achieve several aims.

Q6. List and explain the various rural insurance policies.


Under the provisions of sections 32—B and 32—C of the Insurance Act, 1938, insurance companies are obliged to provide such percentages of business as may be specified by the IRDA,


Master of Business Administration – Semester 4

MF 0016 “TREASURY MANAGEMENT” (4 credits)

 Q1. Explain treasury management, its need and benefits and treasury exposure.

 Answer: – Treasury management is the process of planning, organising and managing the organisation’s holdings, trading’s, corporate bonds, currencies, financial futures, associated risks, options, derivatives, and payment systems. It handles all the financial matters including external and internal funds for business, complex strategies, and procedures of corporate finance to optimise interest and currency flows. It helps in planning and executing communication programmes to enhance investors’ confidence in the organisation.

According to Teigen Lee E (July 2001), “Treasury is the place of deposit reserved for storing treasures and disbursement of collected funds”. The responsibility of treasury management lies with the Chief Financial Officer (CFO) of the organisation. The CFO’s responsibilities include capital and risk management, planning strategies, investor relations and financial reporting. In large organisations, these responsibilities are divided among the accounting and treasury sectors. Hence the workflow between these two sectors must be ethical.

Treasury management is important for the following reasons:

· The development in technology, breakdown of exchange controls, unpredictable changes in interest and exchange rates, and globalisation of businesses requires treasury management.

· To actively manage financial environment, organisations require treasury management that provides the ability to undertake business opportunities and their exposure to risks.

· The expanding range of hybrid capital instruments like convertible preference issued with respect to subsidiary registration of the government need treasury management to select the appropriate businesses in the various circumstances.

· It provides the caliber to develop appropriate skills in achieving economies of scale, lower borrowing rates and netting-off balances.

· It enhances relationship between entity and its financial stakeholders which include shareholders, fund lenders and taxation authorities.

· The treasury management acts as a centralised head office in the organisation and provides financial service to various departments and enhances the financial growth in the organisation.

Few benefits of treasury management are:

· Implementation of treasury management in the organisation increases sales of the products.

· It helps in providing confident employees who work effectively in the organisation.

· It enhances better guidelines and methods to manage risks especially in the areas like foreign currency, and helps in maintaining banking relationships in the organisation.

· The treasury management model helps in identifying risks based on changes in the business conditions and operations, and implements relevant methods to reduce the risk.

· The forecasted cash flow exposures can be derived from the historical data.

· In banking organisations, it helps to optimise asset and debt performance while minimising the needs for external funding.

· The financial sector in the organisation will be able to analyse a variety of data which include funds, transactions, foreign exchange rates, market data and third party information.

· The treasury management system advises the organisation management on aspects of liquidity of its short and long term planning.

· The organisation obtains a well maintained system of policies and procedures to impose adequate level of control over treasury activities.

· An organisation investing in treasury management can expect increase in cash visibility, better management of financial risk and enhancement of treasury efficiency and accuracy.

In this section we discussed about treasury management and its need and benefits. Next section deals with treasury exposure; need to manage risk, and the concepts of corporate and hidden risks.

Q2. Classify various money market instruments

 Answer: – Money market – It’s just a market where money is traded as goods. Pro-active trading happens in these markets when Capital markets (Stock market)

Q3. What are the features of ADRs and GDRs?

 Answer: – ADRs and GDRs – A Depository Receipt (DR) is a versatile financial security that is traded on a local stock exchange but it represents a security that is issued by a foreign publicly listed company. Two of the most common types

Q4. Describe ERM and classify the differences between futures and forwards contracts

 Enterprise risk management (ERM) in business includes the methods and processes used by organizations to manage risks and seize opportunities related to

Q5. Explain the process of risk management and various tools involved in managing risks

 Answer: – The Risk Management Process– Risk Management is defined in the standard (AS/NZS 4360:2004) as “the systematic application of management policies, procedures and practices to the tasks of establishing the context, identifying, analysing, assessing, treating, monitoring and communicating”.

Q6. Explain the framework for measuring and managing the liquidity risks.

 Answer:  Measuring Liquidity Risk

The earlier section dealt with the risks associated with liquidity,


Leave a Reply

You must be logged in to post a comment.