Sem 2 Spring 2016
DRIVE SPRING 2016
PROGRAM MBA – SEMESTER II
SUBJECT CODE & NAME MB 0044 – PRODUCTION AND OPERATION MANAGEMENT
1.Write Short notes on
- Phases of Operations Strategy
- Operations Strategy as a Competitive Weapon
- Strategic Importance of Forecasting
Answer: a) Phases of Operations Strategy
Quality – Quality is the driving factor for any organisation. When buyinga product, a customer will always think about the value of the money heor she is investing. Even if the price of the product is high, the quality ofthe product will provoke the customer to buy
2.Explain following Rating methods
- Factor rating method
- Point rating method
- Break-even analysis
- Centre of gravity method
Answer: a) In factor rating method, each of the factors forlocation is rated and the rating of the competitive locations is considered. Then, the products of the rating are added and the location
3.Describe following dimensions of quality with appropriate examples.
- Quality of design
- Conformance to design
- Utilisation conditions
- After sales service
Answer: Quality is inherent in the product or service that is rendered to the customer. Since we are attempting to measure the same, we will look into those aspects of quality, called dimensions of quality.
Quality of design – A product is designed keeping in view the customers’ requirement. For designing
4.Project management can be considered to have following five dimensions which are necessary to be managed. Explain.
- Features
- Quality
- Cost
- Schedule
- Staff
Answer: Project management can be considered to have five dimensions which are necessary to be managed. The dimensions are Features, Quality, Cost, Schedule, and Staff.
The five dimensions of project management are dependent of one another. For example, if you add staff,
- Explain the risk management and its various components
[Definition of risk management and what it entails-2
Description of the four components of risk management
- [Risk assessment
- Risk control
- Risk prioritising
- Risk mitigation]
Answer: Risk management aims to identify the risks and then take actions to minimise their effect on the
- Why redesign of layouts may be necessary? List the differences between product and process layout.
[Listing of reasons why redesigning ofexisting layout is required-5]
Listing of any five differences-5
Answer: Layout decisions are important for three basic reasons:
- They require substantial investments of both money and effort
- They
DRIVE SPRING 2016
PROGRAM MBA
SEMESTER II
SUBJECT CODE &
NAME
MB0045
FINANCIAL MANAGEMENT
1 Explain the differences between wealth maximization and profit maximization.
Explain relation between finance and accounting
Differences between wealth maximization and profit maximization
Explanation of relation between finance and accounting
Answer: Wealth maximisation vs. profit maximisation
- Wealth maximisation is based on cash flow. It is not based on theaccounting profit as in the case of profit maximisation.
- Through the process of discounting, wealth maximisation takes care ofthe quality of cash flow. Converting uncertain distant cash flow intocomparable values at base period facilitates better comparison of
2 Explain about the doubling period and future value. Solve the below given problem:
Under the ABC Bank’s Cash Multiplier Scheme, deposits can be made for periods ranging from 3 months to 5 years and for every quarter, interest is added to the principal. The applicable rate of interest is 9% for deposits less than 23 months and 10% for periods more than 24 months. What will be the amount of Rs. 1000 after 2 years?
Explanation of doubling period
Solving the problem
Explanation of future value
Answer: Doubling period
Doubling period is the period which makes the investment as “Doubled”, that is the amount invested fetches 100% return.
- Rule
3 Write short notes on:
- a) Irredeemable bonds
- b) Zero coupon bonds
- c) Valuation of Shares
Answer:Irredeemable bonds or perpetual bonds
Bonds which will never mature are known as irredeemable or perpetualbonds. Indian Companies Act restricts the issue of such bonds andtherefore, these are very rarely issued by corporates these days. In case ofthese bonds,
4 Explain the factors affecting Capital Structure. Solve the below given problem:
Given below are two firms, A and B, which are identical in all aspects except the degree of leverage, employed by them. What is the average cost of capital of both firms?
Details of Firms A and B
| Firm A | Firm B | |
| Net operating income EBIT | Rs. 1, 00, 000 | Rs. 1, 00, 000 |
| Interest on debentures I | Nil | Rs.25,000 |
| Equity earnings E | Rs.1,00,000 | Rs.75,000 |
| Cost of equity Ke | 15% | 15% |
| Cost of debentures Kd | 10% | 10% |
| Market value of equity S = E/Ke | Rs. 6, 66, 667 | Rs.5,00,000 |
| Market value of debt B | Nil | Rs.2,50,000 |
| Total value of firm V | Rs. 6, 66, 667 | Rs,7,50,000 |
Explanation of factors affecting capital structure
Solution for the problem
Interpretation
Answer: Factors Affecting Capital Structure
Leverage: The use of sources of funds that have a fixed cost attached to them, such as preference shares, loans from banks and financial institutions, and debentures in the capital structure, is known as “trading on equity” or “
5 Explain the capital Budgeting process and its appraisals
Solve the below given problem:
Given below are the details on the cash flows of two projects A and B. Compute payback period for A and B.
Cash flows of A and B
| Year | Project A cash flows (Rs.) | Project B cash flows (Rs.) |
| 0 | (4,00,000) | (5,00,000) |
| 1 | 2,00,000 | 1,00,000 |
| 2 | 1,75,000 | 2,00,000 |
| 3 | 25,000 | 3,00,000 |
| 4 | 2,00,000 | 4,00,000 |
| 5 | 1,50,000 | 2,00,000 |
Explanation of capital budgeting process and its appraisals.
Solution for the problem
Answer:Capital budgeting process
After thescreening of proposals for potential involvement is over, the companyshould take up the following aspects of capital budgeting process:
- A
6 Explain the concepts of working capital. Explain the determinants of working capital.
Explanation of concepts of working capital
Explanation of determinants of working capital
Answer: Concepts of Working Capital
Gross working capital: Gross working capital refers to the amounts invested in various componentsof current assets. It basically refers to the current assets. This concept hasthe following practical relevance:
- Management of current assets is the crucial aspect of working capitalmanagement
- Gross
DRIVE SPRING 2016
PROGRAM Master of Business Administration- MBA
SEMESTER 2
SUBJECT CODE &
NAME
MB0046 –Marketing Management
1 Explain the constituents of an expanded marketing mix with the help of suitable examples.
Expanded marketing mix with example
Answer: Service sector is one of the key contributing factors for the growth of our economy and civilisation. Though marketing literature is dominated by manufacturing and product-centric business practices, service marketing constitutes a strategic area, which has propelled growth and success
2 Describe the scenario building approach of environmental scanning with the help of an example.
Environmental scanning
Answer: Environmental scanning is designed to aid the long-term planners and strategists in the organisations. Many people criticise the environmental scanning technique because of the diffused and general nature of its
3 Explain the various characteristics that affect the consumer buying behavior.
Consumer buying behavior
Answer: Characteristics affecting Consumer Behaviour
Influence of cultural factors
There is a subtle influence of cultural factors on consumer’s decision process. Immediate subculture also influences consumer’s decision process with which consumer identifies himself/herself as a
4 What are the advantages of Branding? What value does the organization & customers get out of the branding process?
Advantages of Branding
Value
Answer: The following are the advantages of branding.
(a) A brand promises and delivers a high level of assurance to consumers.
(b) A brand serves as an
5 What do you meant by marketing channel? What are the important functions of marketing channels?
Marketing channel
Important functions of marketing channels
Answer: A marketing channel is a system of relationships existing among businesses that participate in the process of buying and selling products and services. Channel intermediaries are those organisations, which connect the manufacturer with the customers and help in the distribution of the product. The intermediaries are involved in taking physical ownership of the product, collecting payments, and offering after sales service. All these activities involve large amount of risk and
6 Write short notes on:
- a) Break –even pricing
- b) Mark-up pricing
Answer: a) This is the method of cost-oriented pricing and is also called target profit pricing. It uses the concept of break-even chart, which exhibits thetotal cost and total revenue expected at different levels of sales volume. The firm achieves break-even when the total revenue is just equal to
DRIVE SPRING 2016
PROGRAM MASTER OF BUSINESS ADMINISTRATION (MBA)
SEMESTER II
SUBJECT CODE & NAME MB0047 – MANAGEMENT INFORMATION SYSTEM
1 What are the differences between data and information? Briefly explain the different types of information systems.
Differences between data and information
Explain the types of information systems
Answer: Data is a raw collection of facts. The word raw indicates that the facts have not been processed in any way. When processed, data is called information. For example, consider the act of booking a ticket on the Indian Railways (IR) website. Let us assume that you have already picked your source station, the place where you will start your journey,
2How to use information system to support competitive strategy? Explain with an example for each strategy
5 strategies and its use of information system
Examples for each of the strategies
Answer:
| Competitive Strategy | Use of Information Systems | Example |
| Create barriersto entry forcompetition | To create barriers to entry of new competition, firms maylock-in existing customers withloyalty programmes and freeaccessaccounts created withinformation systems. Data from such loyalty programmescan also be used to identifycustomer tastes and patternsof buying to further providethem with goods and services. | Yatra.com is an onlinetravel portal that enablescustomers to buy airlineand railway tickets fromits site. It maintains aloyalty programme byproviding discount couponsto customers whopurchase frequently. |
3a. Explain First-order and second-order effects
- Distinguish between hierarchy and matrix organisational structures
- Explain First-order and second-order effects
- Distinguish between hierarchy and matrix organisational structures
Answer: a) The outcome of the implementation of a new IS could be positive or not, and this will depend on the situation at the organisation. The outcomes that arise as a direct consequence of the introduction of an IS are known as first-ordereffects. They are usually visible in organisations in the form of increased speed of processing of data or increased volume of processing and these are what any organisation would have intended to
4 Briefly explain the Customer Relationship Management (CRM) system. What are the various facilities created by CRM?
Explain the CRM System
Examples of various facilities created by CRM
Answer: The idea of CRM systems is to integrate all functions related to sales and marketingon a common platform. These functions include those that require supportto sales and marketing staff and also those that
5 Briefly explain the different aspects of the need for database systems.
Explain any eight aspects of the need for database systems
Answer: Different aspects of the need for database systems
Data independence: Databases allow data pertaining to an activity or a domain to be maintainedindependently. This independence means that the data is stored in separatefiles in a structured manner, and the creation and updating of the data is doneindependent of its uses. For instance, in a college, a database of studentsis updated when a student joins or leaves the college, changes address,changes phone number,
6 Why privacy is important for individuals in the organisations? Briefly explain. How workplace electronic monitoring is done in the organizations?
Explain the reasons why privacy is important in the organisations
Explain the ways in which electronic monitoring is done in the organisations
Answer: Information systems are used widely across organisations, and they enabledata and information to be widely distributed for use. When the data pertainsto individuals (relating to their work, personal habits, or
SMU MBA SPRING 2016-2017
DRIVE SPRING 2016
PROGRAM MBA
SEMESTER II
SUBJECT CODE &
NAME
MB0048
OPERATIONS RESEARCH
1 Discuss the various stages involved in the methodology of Operations Research. Brieflyexplain the techniques and tools of Operations Research.
[Operations Research Methodology-5
Techniques and tools of Operations Research-5]
Answer: Operations Research Methodology
Definition: The first and the most important step in the OR approach of problem solvingis to define the problem. One needs to ensure that the problem is identifiedproperly because this problem statement will indicate the following threemajor aspects:
- Description of the goal or the objective of the study
- Identification of the decision alternative to the system
- Recognition of the limitations, restrictions, and requirements of the system
Construction:
2 a. Explain the steps involved in linear programming problem formulation. Discuss inbrief the advantages of linear programming.
- Alpha Limited produces & sells two different products under the brand names black& white. The profit per unit on these products in Rs. 50 &Rs. 40 respectively. Both theproducts employ the same manufacturing process which has a fixed total capacity of50,000 man-hours. As per the estimates of the marketing research department ofAlpha Limited, there is a market demand for maximum 8,000 units of Black & 10,000units of white. Subject to the overall demand, the products can be sold in any possiblecombination. If it takes 3 hours to produce one unit of black & 2 hours to produce oneunit of white, formulate the model of linear programming.
[Steps involved in LPP-4
Advantages of LPP-3
Formulation of LPP-3]
Answer: a) The procedure for mathematical formulation of a linear programming problem consists of the following major steps:
- Study the given situation to find the key decisions to be made
- Identify the variables involved and designate them by symbols xj(j=1,2….)
- State
3.a. What is degeneracy in transportation problem? How it can be resolved?
- Solve the following transportation problem using Vogel’s approximation method.
| Factories | Distribution Centres | Supply | |||
| C1 | C2 | C3 | C4 | ||
| F1 | 3 | 2 | 7 | 6 | 50 |
| F2 | 7 | 5 | 2 | 3 | 60 |
| F3 | 2 | 5 | 4 | 5 | 25 |
| Requirements | 60 | 40 | 20 | 15 | |
[Degeneracy in transportation problem and resolving it-5
Computation/Solution to the problem-5]
Answer: a) Degeneracy in transportation problem
A basic solution to an m-origin, n destination transportation problem canhave at the most m+n-1 positive basic variables (non-zero), otherwise thebasic solution degenerates. It follows that whenever the number
- a. Explain the steps in Hungarian method. Differentiate between Transportation and Assignment problem.
- Find the optimal assignment of four jobs and four machines when the cost of assignment is given by the following table:
| J1 | J2 | J3 | J4 | |
| M1 | 10 | 9 | 8 | 7 |
| M2 | 3 | 4 | 5 | 6 |
| M3 | 2 | 1 | 1 | 2 |
| M4 | 4 | 3 | 5 | 6 |
[Steps in Hungarian method-3
Differences between Transportation and Assignment problem-3
Computation/Solution to the problem-4]
Answer: a) Hungarian method algorithm is based on the concept of opportunity costand is more efficient in solving assignment problems. The following stepsare adopted to solve an AP using the Hungarian method algorithm.
Step 1: Prepare row
- Define Simulation. Explain the Simulation procedure. Discuss the use of Simulationwith an example.
[Meaning of Simulation-2
Simulation procedure-4
Use of simulation with an example-4]
Answer: Simulation is the process of defining a model of a real system and conducting experiments with this model for the purpose of understanding the behaviour (within the limits imposed by a criterion or a set of criteria) for the operation of a system
Simulation
- Explain the following:
- Economic Order Quantity( EOQ)
- PERT and CPM
- Operating Characteristics of a Queuing System
[Explanation of Integer programming model-4
Explanation of PERT and CPM-3
Explanation of Operating Characteristics of a Queuing System-3]
Answer: a) Economic Order Quantity( EOQ)
The Economic Order Quantity (EOQ) is the number of units that a company should add to inventory with each order to minimize the total costs of inventory—such as holding costs, order costs, and shortage costs. The EOQ is used as part of a continuous review inventory system in which the level of inventory
DRIVE SPRING 2016
PROGRAM MBA
SEMESTER II
SUBJECT CODE & NAME MB 0049 – PROJECT MANAGEMENT
1 Write Short notes on:
- PERT model
- CPM model
Answer: PERT model
A PERT chart is a project management tool used to schedule, organize, and coordinate tasks within a project. PERT stands for Program Evaluation Review Technique, a methodology developed
2 Explain Project Life Cycle in detail?
Project Life Cycle
Answer: The Project Life Cycle
A rational order of activities that are applied to attain the project’s goals orobjectives is known as the project life cycle. Most projects experiencesimilar stages on the path from origin to
3 Answer the following questions:
- Mention the steps involved in a competitive bid.
- Mention the elements/points that must be kept in view when designing , developing and operating a PMIS (Project Management Information System)
- List the 5 steps involved in a competitive bid
- List the 5 elements/points that must be kept in view when designing , developing and operating a PMIS
Answer: Competitive bid (bid and award)
The steps involved in competitive bid are discussed below:
- The bid or tender is invited from a required number of suppliers.
- The bid
4 Discuss the major contents of the project’s final report
Explain the purpose of the project final report
List suggested content of project final report
Explain each content and what it should contain
Answer: The final Project Report (PR) should be written by the project managerhimself. The PR should present project evolution, its success, itsmanagement, any outstanding and team recommendation. Frigenti et al quotes Meredith and Mantel on the intents of the project finalreport as, “The final report is not another evaluation, rather it is the history ofthe project. It is the
5 Write short notes on
- Role of risk management in overall project management
- Quality assurance
Answer: Role of Risk Management in Overall Project Management
Risk analysis and management is a process which enables the analysis and management of the risks associated with a project. Properly undertaken, it will increase the likelihood of successful completion of a project to cost, time, and performance objectives. There are a lot of benefits of
6 Explain Earned Value Method (EVM) in detail? How can a project manager manage the Project Schedule if team members don’t accurately report when they are behind?
- Explain Earned Value Method (EVM)
- How can a project manager manage the Project Schedule if team members don’t accurately report when they are behind
Answer: The Earned Value Method (EVM) is a useful tool that allows the calculationsof cost and schedule performance measures including cost variance,schedule variance, cost and time over-runs for
