DATED: 19-Jan-2015 Current Papers of MSBA 1 st Semester Mid-Term Examinations SOLUTION OF THESE QEUSTIONS ARE GIVEN AT THE END OF THIS FILE Corporate Finance (FIN722) Paper-[1] Q-1: Calculate return on asset ratio (SOLVED) Q-2: Expected return and variance of stock under each state of economy (SOLVED) Q-3: calculate dividend price in today's value (SOLVED) Paper-[2] Q-1: Calculate PV (SOLVED) Q-2: Calculate discounted payback period (SOLVED) Q-3: Calculate variance(SOLVED) Q-4: Calculate today’s price of bond (SOLVED) Paper- [3] Q-1: Calculate present value (SOLVED) Q-2: Calculate discounted pay back (SOLVED) Q-3: Find out today’s price of stock when dividend 8 and forecasted price 80 per share and return 12 percent (SOLVED) Q-4: Find out variance and squared deviation(SOLVED) Paper-[4] Q-1: Profit margin 28% and asset turnover ratio 1.7 times for 2011 find a) ROA for 2011 b) if the profit margin decreases from 28% to 22% what will be the asset turnover ratio if the ROA is not changed. (SOLVED) Q2: Year CF 0 100,000 1 40,000 2 30,000 3 25,000 4 25,000 5 25,000 if the rate of return is 10% a) Find the discounted payback period b) if the company targeted discount payback period is 4 years then company should accept the project or not give logical reason? (SOLVED) Q-3: From the bond valuation, find the intrinsic value of the bond and the effective annual rate EAR. i forgot the figures . Q-4: Company A Company B Variable cost 60% of sales 50% of sales Fixed cost 45000 95000 Interest expense 30000 20000
Transcript
DATED: 19-Jan-2015Current Papers of MSBA 1st Semester Mid-Term Examinations
SOLUTION OF THESE QEUSTIONS ARE GIVEN AT THE END OF THIS FILECorporate Finance (FIN722)
Paper-[1]Q-1: Calculate return on asset ratio (SOLVED)Q-2: Expected return and variance of stock under each state of economy (SOLVED)Q-3: calculate dividend price in today's value (SOLVED)
Paper-[2]
Q-1: Calculate PV (SOLVED)Q-2: Calculate discounted payback period (SOLVED)Q-3: Calculate variance(SOLVED)Q-4: Calculate today’s price of bond (SOLVED)
Paper- [3]Q-1: Calculate present value (SOLVED)Q-2: Calculate discounted pay back (SOLVED)Q-3: Find out today’s price of stock when dividend 8 and forecasted price 80 per share and return 12 percent (SOLVED)Q-4: Find out variance and squared deviation(SOLVED)
Paper-[4]Q-1: Profit margin 28% and asset turnover ratio 1.7 times for 2011 find a) ROA for 2011 b) if the profit margin decreases from 28% to 22% what will be the asset turnover ratio if the ROA is not changed. (SOLVED)Q2: Year CF0 100,0001 40,0002 30,0003 25,0004 25,0005 25,000if the rate of return is 10% a) Find the discounted payback period b) if the company targeted discount payback period is 4 years then company should accept the project or not give logical reason? (SOLVED)Q-3: From the bond valuation, find the intrinsic value of the bond and the effective annual rate EAR. i forgot the figures .Q-4: Company A Company BVariable cost 60% of sales 50% of salesFixed cost 45000 95000Interest expense 30000 20000if sales revenues are 300,000 . a) Find the DOL b) of which company DOL is high and why? (SOLVED)Suggested Answer by a studenti discounted back the CF and find the 4.026 DPBP which is 2 cents more than the targeted DPBP of the company so i think company should not accept that project i don't find NPV there as time is too short
Paper-[5]
Q-1: Arslan received a total of PKR 1,000,000 at the end of 7th Year at 8% a. Find the amount of investment he made. (SOLVED) b. Find the actual discounted rate. c. I forgot the third question
Q-2: A scenario was given with Equity PKR 400,000 & Debt. 600,000
a. Find WACC if tax? Interest on debt ? cost of capital? b. Find WACC if equity goes to PKR 500,000 & debt remains the same (SOLVED)
Q-3: Two Projects summary given for Starlet Corporation
a. Find NPV of both projects b. Suggest which project should be accepted and give logical reasoning.(SOLVED)
Q-4: Three Projects summary given with PKR 700,000 Capital Rationing. first project with PKR 300,000 investment, second with PKR 200,000 investment & third with PKR 400,000 investment.
a. Find NPV of all three projects at different (given) discount rates. b. Rank the projects based on NPV c. which of the projects should be choose based on their NPV rankings(SOLVED)
Paper-[6]
Q-1: Find Asset turn ratio(SOLVED)Q-2: Find NPV of two projects and chose the best(SOLVED)Q-3: Find Expected return and variance return if secured probabilityBoom 25% 0.55recession 12% 0.45(SOLVED)
Q-4: Find WACC?(SOLVED)
Paper-[7]I do not remember the figures exactly .But that all the necessary data was given and we had to calculate NPV of three projects that were and tell which one should be undertaken and why?Secondly we had to calculate the IRR of two projects and recommend which project to choose.Thirdly,to calculate the present value of a company's dividendAnother to calculate the total interest enjoyed by a person who will enjoy Rs.1000000 at the end of 7 years period at an interest rate of 7%.It had 3 parts .a)calculate present value,b) calculate the total interest and c) ??? dont remember... (SOLVED)
Paper-[8]
Q-1: You have to purchase a car which will cost us 800,000Option 1= Down Payment 200,000 today and rest of money after 4 years Option 2= Whole amount of 500,000 if you will pay today then get a discount of 50,000.• Interest rate is 10% at present.• Which option is better? (SOLVED)Q-2: Find Discounted Payback period, Data was given (very easy) (SOLVED)Q-3: Calculate expected return and variance of stock under each state of economy and comment on result analyticallyBoom 25% return, Recession 12% returnProbability is .55 and .45 respectively.(SOLVED)Q-4: it was about Share value for today (i didn't remember value (SOLVED)
Paper-[9]
1- Return on asset ratio (SOLVED)2- intrinsic value of bond, effective annual yield on bond (SOLVED)3- WACC and analysis(SOLVED)4- expected return & variance of stock(SOLVED)
Paper-[10]Q. No: 1 Present Value of Share(SOLVED)Q. No: 2 NPV Mutually Exclusive Projects(SOLVED)Q. No: 3 NPV Ranking(SOLVED)Q. No: 4 PV of a future amount, Interest Amount and Compound Interest portion(SOLVED)
Paper-[11]1. PV of a future cashflow(SOLVED)2.To find out price of a share(SOLVED)3.Discounted payback period(SOLVED)4.Expected return & variance(SOLVED)
Paper-[12]1. ranking of 3 projects on the basis of NPV(SOLVED)2. Intrinsic value of bond(SOLVED)3. Discounted pay back period(SOLVED)4. PV and compound interest find out(SOLVED)
Paper-[14]today was my corporate finance paperq1: Q-1: Profit margin 28% and asset turnover ratio 1.7 times for 2011 finda) ROA for 2011b) if the profit margin decreases from 28% to 22% what will be the asset turnover ratio if the ROA is not changed. (SOLVED)q2: to find portfolio expected return and portfilio beta of four stocksstock Investment expected return betaA 50000 .12 1.4B 30000 ... .9C 40000 ''' 1.2D 20000 .... .7(SOLVED)
Q3: a) Present price of stock nikalne the and given data wasDivedend = 12Forcasted price of stock = 80expected return = 12%b) if calculated price is less than the actual market value then whether the actual return rate will be higher or lower? (SOLVED)
q4: it was about WACC. (SOLVED)
Advance Financial Accounting (FIN711)
Paper-[1]
Q-1: Asset ValuationQ-2: Subscription (Very Complex Question)Q-3: Income Statement Q-4: Net Worth Calculation
Paper-[2]Q-1: Stock Sheet at HO of a Branch with Different Values of InventoriesQ-2: Hypothetical Income Statement of a CompanyQ-3: Profit Calculation, Given Values are Opening and Ending Capital, Liabilities and Assets, (with Missing Figures of Liabilities and Capital)Q-4: Branch Debtors Missing Figure
Paper-[3]Q-1: Fixed Asset account banana thaOpening and closing balance of asset givensale proceeed givenasset purchased givenother increase in asset givendepreciation givenQ-2: Transfers from alfa, beta and gamma department are giventransfer from alfa to beta and gammatransfer from beta to alfa and gammatransfer from gamma to alfa and betafind out total amount of transfer of any two departmentQ-3: Branch account banana tha... taary azar aany lagy itna ookha tha...unrealized profit of opening stockunrealized profit of closing stockgoods perishedopening net worthclosing net worthinvestmentQ-4: prepare income statementsale 450CGS 60% of saleoperating profit 20% of salefinancial charges % after chargetax % after chargeis me % pata nahi kia thi mera ye question aadha reh gia due to time shorttttttttt..
Paper-[4]Q-1.Fixed Asset valuationSale proceed, opening value of asset, loss, depreciation were given.Q-2. Hypothetical income statement of company with any figures. (Income statement as function of expenses)Q-3. Same as posted by Mehboob hassan bhai.Alpha, Beta & Gamma departments. Transfer b/w any 2 departments.Q-4. Branch Accounts.Goods in Transit accounts from branch & in branch.
Paper-[5]Q-1 . Was related to the Preparation of asset account .... Entries were given .... U need to creat a t account to show changes in net value of assets during the year.Q-2. Preparation of income statement thee.... Financial charges n tax expenses ki tricky calculation thee... Remaining entries were hell simple....Q-3. Was related to departmental accounts.... Calculation of COGS and GP rate wre required.... Q-4 was related to prepration of branch stock a/c ... Again t a/c was required for calculation of balancing fig....
Paper-[6]Q1: (a) Cash book of a retailer is showing rent received at Rs. 30,000 for a portion of his shop for the year ended
September 30, 2013. Determine, his rental income in this regard during the year, using the following information:
(2.5 Marks)
Deferred rental income
Accrued rental income
Oct. 01, 2012
Rs.
1000
500
Sep. 30, 2013
Rs.
700
1500
(b) Cash book of Café Cold is showing payment of Rs. 6,500 against a small advertisement running through a local cable
operator for the year ended June 30, 2013. Determine the advertising expense in this regard during the year using the
following information: (2.5 Marks)
Prepaid advertisement expense
Accrued advertisement expense
Jul. 01, 2012
Rs.
250
140
Jun. 30, 2013
Rs.
126
198
Q2: The Secretary of Recreational Society has gathered the following information relating to the members’ subscription for the year ending September, 2014:
Subscription received in 2012-13 in cash
Unearned subscription received in 2011-12
Outstanding subscription at the end of 2012-13
Outstanding subscription for 2011-12, still receivable
subscription received for 2013-14
Subscription lost permanently for the year 2012-13
Outstanding subscription as on 1-10-2012
Rs.
7120
400
880
120
240
48
672
Required:
(a)Determine the amount of subscription to be charged to income and expenditure account for the year 2013-14; & (3 Marks)
(b) Items to be appeared in the society’s balance sheet as of September, 30, 2014. (2 Marks)
Q3: Draw a hypothetical model of any company with your own figures as on 30 September, 2014 (5Marks)
Q4: From the following data relates to Model Branch controlled by Big Head Office through debtors system for the year ended June 30, 2014, prepare a sheet showing the amount of stock as on that date: (5 Marks)
Stock at branch on 1-7-2013
Goods-in-transit on 1-7-2013, from:
H.O to branch
Branch to H.O
H.O sent goods to branch during the year
Branch received goods during the year
Branch returns to H.O
Returns received from branch by H.O during the year
Sales at branch during the year:
Cash
Credit
Sales returns
Stock lost at branch
Profit earned by branch on its sales
Rs.
544
256
128
6288
5984
160
128
4320
2840
40
32
1/5
Production and Operational Management (MGT713)
Paper-[1]Q-1: Forecasting is the prediction of future demands and it is accompanied with the related planning in order to meet the forecasted demand. The forecasting is believed by some people as related to production department only which is not true.How will you advocate the above stance stating the importance of forecasting for marketing, finance and management departments?Q-2: Independent demand is the demand for finished products whereas dependent demand is the demand for component parts related to that product. State you opinion that forecasting for which type of demand is difficult to be made. Also describe how firms can manage independent demand in an efficient way?Q-3: Mr. Ali is a operation manager of a crew that installs carpeting, has recorded the crew’s output over the past several weeks, his obtained results are depicted in table below:Week Crew size Yard installed1 6 6462 4 6203 3 5884 2 570
Compute labor productivity for each week and draw a general conclusion about crew size and productivity.Q-4: Despite to the fact that process layout has ability to handle a variety of process requirements, some critiques still don’t support the idea of process layout. Being an analyst of production/operation management how will you support their view of NOT using process layout.
Paper-[2]
Q-1: Difference between Operational and Organizational Strategy, 5 marks
Q-2: Forecasting techniques k bary main ak paragraph dia hoa tha btata tha k yahan operational manager kon si technique use kery ga. Maximin or Laplace find out kerna tha kuch alternatives dye hoe thy
Paper-[3]Q-1: Operation manager want to forecast the impact of technical changes to the employees. a) Which method of forecasting he has to use and Why? b) how to implement that method you suggested?Q-2: The operations manager of a garments manufacturing Company has the following data of the possible forecasted demands against the different alternatives which are small facility, medium facility and the large facility. Calculate Laplace and Minimax regret
Q-3: Difference between Organizational strategies from operational strategies. and what will its impact on business if these are aligned in an organization?
Q-4: Standardization is important but some are its critics. a) What if the standardization is not implementing? b) Are you agree with standardization or not?
Paper-[4]
Q-1: Does improvement in the quality of a product can differentiate your product from that of your competitors? Explain in detail with logical reasons. Q-2: It is a concept that forecasting is done by production department and it helps only to this department. Do you agree with this? Explain the importance of forecasting in the marketing, Finance and Management department? Q-3: Numerical question from Lesson no.6. Calculate Minimax Regret and Laplace of the given data. (I have not done this question)Q-4: yad nhn but it was from forecasting also.
Paper-[5]Q1. Define Opration and organizational strategy. Y op strategy need to align with organizational strategy.?Q2. Question about cpfr.Q3. Data was given and need to find lalace and minimax regression.Q4. Disadvantages of process layoutPaper-[6]q.no 1: Difference between Operational and Organizational Strategy, q.no.2: Mr. Ali is a operation manager of a crew that installs carpeting, has recorded the crew’s output over the past several weeks, his obtained results are depicted in table below:Week Crew size Yard installed1 6 6462 4 6203 3 5884 2 570Compute labor productivity for each week and draw a general conclusion about crew size and productivity.q.no.3: Question about cpfrq.no.4:Standardization is important but some are its critics.a) What if the standardization is not implementing?
Paper-[7]
My paper today mgt713Forecasting for which type of demand is difficult to made. (Independent and dependent)Calculation of Laplace, maximini and Minimax regret. Data was given
Discussion on Standardization Operation manager sa regarding ek scanerio banaya hoa tha muge bhol geya question wohSuggested answerAddy how did you answer the first question?because at times I feel that the independend is also difficult due to some uncertainties like inflation,seasonality,random events,naural calamities ,political inbalance,introduction of new products in the market an dsubstitutes available.With this thought in mind I cant decide which one is really difficult.Paper-[8]My today MGT703 Paper.two question was about green model business and their impact on external organizational factors.One was about Serena Hotel manager who is planning annual marketing plan, for the purpose he conduct an external audit. discuss either he is doing right or need to do something different.One question was about comparison between intensive strategies and Porter's Generic strategiesPaper-[9]My Todays paper of Prod/Ops Mgt:Q-1: Mr. Ali is a operation manager of a crew that installs carpeting, has recorded the crew’s output over the past several weeks, his obtained results are depicted in table below:Week Crew size Yard installed1 x xxx2 x xxx3 x xxx4 x xxxCompute labor productivity for each week and draw a general conclusion about crew size and productivity.Q-2: Difference between Operational and Organizational Strategy.Q-3: Does improvement in the quality of a product can differentiate your product from that of your competitors? Explain in detail with logical reasons. Q-4: Question about CPFR.
Suggestionsit is simple. Just divide Yards by Crew of each row. U will get the productivity. The trend is opposite. With decrease in crew size the productivity is increasing.
Paper-[10]Done with first one MGT713
1.Importance of Forcasting for finance,marketing and management.2. Productivity of labor-numerical3.why process layout should not be used?4.operational strategies
Attempted without preparations. Actually i was thinking to freeze my semester and to start again in next session but anyhow wanted to attempt paper. And next all are also unprepared at all. And leaving my advance accounting paper aswell.
Paper-[11]
First question was about forecasting... some say its only limited to production operation which is not true... discuss if forecasting is related to finance, marketing and management in detail
Second question was related to independent and dependent demand... why is forecasting difficult for independent demand and how to overcome the difficulties of forecasting independent demands....
Third question was numerical... find maximum, laplace and minimax regret
Last question was related to standardization.. significance of standardization... i dont exactly remember this one completely...
Paper-[12]
Assalam o Alaikm every one !! I can't wait to share that I am so happy i have done the paper nicely just as (by now)every one must have been doing! AND I AM SO GLAD!bas ab examiner ham sabko bohot achay marks sy pass kr day AAAMEEENN YA RAB AL AALAMEEEN!!! A very special thanks to Mehboob bhai .I am sure bhai ap ka to zabardast hua ho ga paper isn't it? acha to meray paper may bhi chaaro k charo questions wohi repeated yani Q1: What do you know about Collaborative ,Planning,Forecasting and Replenishment i.e .How can it be used to improve forecast? Q2:Calculation Labor Productivity exactly the same figures as we have calculated in the solved papers Q3:As an operation manager do you recommend Standardization ?Why? and Q4:How can Operation strategy be aligned with Orgnztnl strategy?
Strategy Management (MGT703)
Paper-[1]Q-1: McDonalds success of 2008 ($22.5 to 23.7 Billion revenue) while whole US is facing crisis. (How you see the globalization strategy benefited?)Q-2: Rostek Energy provider is very famous in providing energy solution world wide but they are afraid of making investment in Pakistan. What are the threats they are looking at?Q-3: How MIS System in Pakistan Cement Industry benefited? Although the competitors are not utilizing MIS and still smoothly produce and distribution of their product.Q-4: KASB Bank is facing risk of dissolve. How they can avoid this situation while avoiding merge by others? Give 3 reason utilizing cost strategy and also write 2 other reasons which they should not use.
Paper-[2]Q-1: scenario that mcdonals remains on top among three companies including walmart, in financial crunch of 2008. Else then financial benefit what other benefits mcdolads gain.
Q-2: match the strategiesForward, backward, horizontal, concentric diversification Scenario: pepsi launched aquafina, honda atlas have all over country branches, standard chartered and union bank merger, hashoo group hotel business holder initated IT business.Q-3: KASB bank is running low, using defensive strategy, what moves they can use. Recommend 3.
Q-4: don’t remember...
Paper-[3]
Q-1: AGP pharmaceuticals are trying to introduce E-Commerce practice for reducing the bargaining power of distributors. Do you think that E-Commerce based Forward Integration would be a useful option for thiscompany? Justify your answer with three appropriate reasons.Q-2: ROSTEK is a multinational Company that provide Sustainable business & Energy solutions around the world. Rostek wants to start business in Pakistan but Strategists of Rostek are concerned about the negative impact of economic forces in Pakistan. Try to identify at least Five such economic factors of Pakistan and elaborate that potential impact for foreign investors like Rostek.Q-3: Identify the Five Strategies including Forward Integration, Horizontal Integration, Conglomerate Diversification and Concentric diversification in the following scenario:-1) Hashoo group that deals with hospitality business is starting IT business.
2) Honda Atlas cars ltd, the automobile dealers have distributors all over.
3) Levis jeans,Garments brand has its own fabric and zip manufacturing plants.
4) Pepsi launch Aquafina.
5) Merger of Standard Chartered Bank in Union Bank.Q-4: Due to decreasing profitability of KASB bank. How can they execute the most appropriate Defensive strategy in the situation? Give three logical reasons. Also identify the 2 other type of DefensiveStrategies not appropriate.
Paper-[4]Integration ma sa question keh kya effect ho ga uska co par agar woh change krti haye tou.- Ife structure - Corporate's responsibility ka question tha totally common sense wala.- Strategies discuss krni the
Paper-[5]1 identify intensive strategies market penetration market development product development. scenario was given2 EFE matrix explain with their steps3 pso does not use strategic planning and give 3 reasons of avoiding strategic management4 ni yad
Paper-[6]Q-1. McDonalds...how did its Strategic Management helped to survive in the 2008 crunch? What other non financial benefits? State any 3.Q-2. Identify the strategies horizontal ,concentric etcBut the new ones wereQ3..A software company wants to make investment in Pakistan .Its initial feasibility report tells that there are many educated workforce available in Pakistan and other software companies are also planning to invest in Pakistan but the demand is that of innovative software’s.Briefly discuss the above scenario using Michael Porters 5 forces.Q4.A company has patented to recycle its product to meet the requirements of environmental responsibilities. Explain any 5 external factors that will have a positive impact due to this act.
Paper-[7]Q1. Comparison of Intensive Strategy with Micheal Porter Generic Strategies.Q2. Use of E-Commerce by AGP Pharma for reducing bargaining power of distributors. Is it useful? Give 3 reasons.Q3. Matching of intensive strategies:a. Introduction of two new packagings by Tapal Tea for seeking increased market share—Market Penetration.b. Introduction of new product by McDonald—Product Developmentc. Opening up of food chain in Nothern Area—Market Development Q4. How a company following CSR has competitive advantage edge over companies like Shell Oil.
Paper-[8]Questions given in my today paper of MGT 703.Q1.First one was the totaly same about McDonald given in previuos paper.Q2. Marcal paper mills inc recycle its sysytem how you think it will impact positive its external factors ? also we need to express atleat five having positive impact? mean it was about retrenchment Q4. last one was also same about software company who want to made investemnt in pak etc etc jo zehra khan n e mention kia ta wohi Q3.its was about OGRA that OGRA is a oil and gas regularity authority and also set the price .how you think that its priceing decison will affect the other stake holders of oil and gas in pakistan ?also give name of four stake holders?
Paper-[9]First question was related to Internal analysis with regards to IFE MatrixThree different scenarios were given and we had to identify them from Product development, Market development & Market Penetration. This question also had a final part which I forgot.Third question was about the decision maker of a Hotel. If he need to perform the external analysis individually or involve more people. Give three logical arguments.Fourth question was ...................... trying to remember..... Whirlpool case was given and three areas were to identify where whirlpool could work in order to reduce its costs and still stay successful in the global market.
Paper-[10]1. Same one regarding Pakistan Cement Industry.. Why should they use MIS ? Even if other companies are getting good results without MIS. So, you should mention benefits of MIS and how it can revolutionize the culture in Pakistan.2. How a company can be more cost effective? Any ABC company was mentioned..3.How any company can help itself with the help of integration. You will have to mention backward and forward integration and explain them.4. Why Competitive Intelligence is very important for any company and whether it is important for Engro Pakistan. How Engro can revolutionize itself with the help of Competitive Intelligence..Simple Explanation and Theoretical Paper was given.
Paper-[11]My today Mgt703 paprQ-1: McDonalds success of 2008 ($22.5 to 23.7 Billion revenue) while whole US is facing crisis. (How you see the globalization strategy benefited?)Q-2: Identify the Five Strategies including Forward Integration, Horizontal Integration, Conglomerate
Diversification and Concentric diversification in the following scenario:- 1) Hashoo group that deals with hospitality business is starting IT business.2) Honda Atlas cars ltd, the automobile dealers have distributors all over.3) Levis jeans,Garments brand has its own fabric and zip manufacturing plants.4) Pepsi launch Aquafina.5) Merger of Standard Chartered Bank in Union Bank.Q3..A software company wants to make investment in Pakistan .Its initial feasibility report tells that there are many educated workforce available in Pakistan and other software companies are also planning to invest in Pakistan but the demand is that of innovative software’s. Briefly discuss the above scenario using Michael Porters 5 forces.q.4 was related to corporate responsibility
Paper-[12]My Todays Strategic Management (MGT703) paper Q1: A multinational software house company wants to start its software house in Pakistan in his feasibility indicate the demand is high while there are few software house in Pakistan & other software house company’s also planning to operate its software house in Pakistan.Explain the given scenario with Michael Porter’s forces.Q2: oil & gas regulatory associations (OGRA) are currently regulating prices . how the OGRA regulatory activities affect the other stakeholders of oil and gas? Mention at least four stakeholder of oil & gas.Q3: in 2008 crunch time for USA, McDonald's and two other firms Wall mart and dollar free compete. McDonald s revenues increases from 22.4 to 23.7 while the other two firms get down. McDonald's gain the state diversity. How it is beneficial for long term ? what benefits can be derived from such situation . give at least 3 benefits.Q4: a company performs its Internal evaluation and find its IFE matrix 1.6 how u interpret this situation. How many factors does the company involves while evaluating IFE ?Paper as a whole was easy but don’t know the four stakeholder of oil and gas frown emoticon
SuggestionQ 4 men company IFE matrix was below average which is1.6 which means that company internal strengths are not enough or company is internally weak and not fully utillizing all of its capabilities and strengths to make it prosperious. while doing IFE matrix about 10 to 15 key factors are used to evaluate matrix and ialso write the steps to IFE matrix. what u ansZoya KhanSuggestionQuestion 2: Oil & Gas Distribution Companies, PSO, SNGP, SSGPL, IPPs all producing electricity, Textile Companies, Airlines, LPG distribution Companies and End Consumers. All these are stakeholders and of course can be many more.SuggestionThe best and acceptable definition of stakeholders in the world is "Anyone who affects or can be affected by the business" In the light of this definition there could be as many as many as possible.I forgot to mention the foremost beneficiary "Government"SuggestionsQ4: a company performs its Internal evaluation and find its IFE matrix 1.6 how u interpret this situation. How many factors does the company involves while evaluating IFE ?Ans.IFE involves 10 to 20 factors while evaluating IFE . The Total weighted score of 1.6 characterizes that the organization is internally weak.Q2: oil & gas regulatory associations (OGRA) are currently regulating prices . how the OGRA regulatory activities affect the other stakeholders of oil and gas? Mention at least four stakeholder of oil & gas.Ans The 4 stakeholders of OGRA are :the Consumer, Investor & the Government.(SNGP Sui Northern Gas Pipeline Ltd,POL Pakistan oil Ltd,PPLPakistan Petroleum Ltd.,OGCD Oil and Gas Development of Pakistan,SSGP Sui Southern Gas)They are protected through Independent & Fair Regulatory practices.QueryWhat do you mean by" They are protected through Independent & Fair Regulatory practices"?? If they are protected then how they will be affected by Change in price?ANS
Paper-[13]AGP pharmacetical Co is Introducing e-commerece to get rid of customers bargaining power. use of e-commerce will be useful or not??
Q # 02
PSO score in 2012 1.0 2013 2.5 2014 4.0 Cmnt on performance as par EFE matrix.
Q # 03
a) telenor decided to launch services in rural area.
b) macdonald decided to intoduce mc arabia food. c) tapal tea intoduced 2 new products with new packing.
generic stretegies are more sucessfull as compared to instrinic strategies. cmnt
Q # 04
CSR responsibilities; making oil from green matrix(oil which we can make from trees, grass etc, sahi trhan yaad ni; us ka comparison shell crude oil sai; kon sa beneficial hai, 3 reasons state kro) & shell oil
Paper-[14]Today's paper MGT-703
Q-1: How MIS System in Pakistan Cement Industry benefited? Although the competitors are not utilizing MIS and still smoothly produce and distribution of their product
Q-2: AGP pharmaceuticals are trying to introduce E-Commerce practice for reducing the bargaining power of distributors. Do you think that E-Commerce based Forward Integration would be a useful option for this company? Justify your answer with three appropriate reasons.
Q3.A company has patented to recycle its product to meet the requirements of Corporate Responsibilty.Explain any 5 external factors that will have a positive impact due to this act.
Q.4 Relate to corporate resposbility (CRP) Advantages to ADM company as related to Shell oil? ( Exact yaad nahi)
Paper-[15]
AoA, Mehboob bhai POMA vala document share karen, aur aaj mera strategic mgmt ka tha, following were questions: 1. AGP Pharma is going to implement e-commerce option to overcome porter's "bargaining power of suppliers" ... support your answer with three arguments either AGP should go for e-commerce or not
2. ADM is american company producing green fuel manufactured from bio-plants, they formulated their strategy thru CSR to increase sales, support your answer with three arguments
3. Shell manager performed IFE, weighted result is 1.6, comment
4. Porter's generic strategies vs intensive strategies
OLD PAPERS OF MGT703The Subjective Questions of MGT703 Strategic Management That appeared in past papers:At least those who do not get time to prepare properly for exams or are short of time for some reason may have a look that which topics are important .Try to answer these questions to test ur preparation.Question No: 1 ( Marks: 3 )What is the significance of Research and Development for an organization?Question No: 2 ( Marks: 3 )What should be the characteristics of a firm that is successfully pursuing a Cost Leadership Strategy? Enlist any six of them.Question No: 3 ( Marks: 5 )What are the five forces of Porter’s Five Forces Model?Question No: 4 ( Marks: 5 )Explain Merger and Acquisition with the help of examples (examplesshould be related to a multinational or local company operating inPakistan)?Question No: 5 (Marks:5)Explain Focus Strategy .If a business wants to pursue Focus Strategy, what can be the guiding rules for that firm?Question No: 6 ( Marks: 5 )What is Average Collection Period?From the following Data calculate the Average collection Period for both the firms and compare the results.Annual Credit Sales(Rs. Millions) Accounts Receivable(Rs. Millions)Firm A 5 5Firm B 7 3.5
Question No: 7 ( Marks: 5 )Vertical integration is the degree to which the firm owns its upstreams and downstreams buyers.What can be the possible benefits of a firm that goes for vertical integration?Question No: 8 ( Marks: 5 )How would you interpret each of the followings?In Competitive Profile matrix ,one of the success factors is rated as 4.If financial position is rated as 2 in CPM.In External Factor Evaluation Matrix the key opportunities and threats are rated as 4. Question No: 9 ( Marks :5)Identify any five variables relating to Environmental Stability (ES) that are helpful in determining the External Strategic Position of a company.Question :10 ( Marks :5)Identify any three variables relating to Industry Strength (IS) that are useful in determining the External Strategic Position of a company.Question: 11 (Marks:5)Limitations of the QSP MatrixQ1 feasibility of Richard rum meltQ2 Tows matrixQ3.Functional structure Pros n ConsQ4 ControllingQ5 Internet has changed the world.Q6 Advantages of matrixQs 1. Last year’s internal audit of Koh-e-Noor Textile Mill has revealed that the organization needs an overall cost efficiency. For what reasons, it is important to reduce cost? What are the major sources of cost efficiency?Qs 2. Agricultural economy in Pakistan also relies on the production of vegetables. A research study has found that with the previous year’s increase in the number of suppliers for vegetables; retailers can easily negotiate the vegetable price in the whole sale market. Further it added that with the recent increase in production of vegetables due to tunnel farming concept, more suppliers are there in the market. This scenario has reduced the profit margins for those companies and transporters that are engaged in the business of stock trade of vegetables. How will you evaluate this current scenario with reference to Porter’s Five Forces Model?Qs 3. Toyota Motors developed a mission statement which states, “To provide safe & sound journey. Toyota is developing various new technologies from the perspective of energy saving and diversifying energy sources. Environment has been first and most important issue in priorities of Toyota and working towards creating a prosperous society and clean world”.Why has Toyota over emphasized on technology and environment in this mission statement? Which other factors need to be highlighted by Toyota in this mission statement?Qs 4. Mr. Ahmed owns a small scale business of supplying grocery items. He wants to take competitive advantage through e-commerce as a proactive measure for tackling increasing market competition. Currently there is very little trend of using e-commerce for supplying grocery items. How can he do it? Justify your answer with three appropriate reasons.1. 5 steps of product positioning?2. strategic management in resource allocation?3. three types of auditors?4. significance of strategic evaluation?5. primary activities in value chain?6. strategies in grand strategy when weak competitor with slow growth? (answer is quadrant III strategies)7. tools in formulation framework (Input stage)?
Current Papers 2015 Solution File(It Needs To be updated on daily basis)
Corporate Finance (FIN722)
Question-(1)Profit margin 28% and asset turnover ratio 1.7 times for 2011 find a) ROA for 2011b) if the profit margin decreases from 28% to 22% what will be the asset turnover ratio if the ROA is not changed.Solutiona) RAO = Net Profit Ration × Asset TurnoverRAO = 0.28 × 1.7 = 47.6 %
Comments: Company is earning 47.6% more income against one dollar of asset investedb) RAO = Net Profit Ration × Asset Turnover 0.476 = 0.22 × X X = 0.476 / 0.22Asset Turnover = 2.17 Comments: Company is generating more revenues efficiently from its assets
Question-(2)Arslan received a total of PKR 1,000,000 at the end of 7th Year at 8% p.a. a) Find the amount of investment he made.b) Calculate its total Interest earnedc) Calculate compound interestd) Find out actual discount rate? (I Don’t Know)Solutiona) PV = FV / FVIFi
t
PV = 1,000,000 / FVIF8%7
PV = 1,000,000 / 1.714PV = 583431 PKRb) Total Interest earned = Investment at the end (FV) - Original investment (PV)Total Interest earned = 1,000,000 – 583431 Total Interest earned = 416569c) Compound Interest = Total Interest earned – simple interestSimple interest = 583431 × 8% = 46675 for 1 year46675 × 7 years = 326721 Compound interest = 416569 – 326721 = 89847
Question-(3)You have to purchase a car which will cost RS.800,000Option 1= Down Payment 200,000 today and rest of money after 4 years Option 2= Whole amount of 800,000 if you will pay today then get a discount of 50,000.• Interest rate is 10% at present.• Which option is better?
SolutionOption 1) Down payment = 200,000Rest of the amount (800,000 – 200,000) = 600,000 after 4 yearsLet me to know PV of 600,000 with 10% and 4 year time periodPV = FV / FVIF10%4
PV = 600,000 / 1.464PV = 409,836Total Amount to be paid for option 1 is (200,000 + 409,836) = 609,836Option 2)Whole amount today after getting discount (800,000 – 50,000) = 750,000AnalysisFor option 1 we have to pay Rs.609,836 today and for option 2 we have to pay Rs.750,000 today so being a rational financial analyst I would like to choose option 1 as it is saving Rs.140,163 (750,000-609,836)
Question-(4)Find out today’s price of stock when dividend 8 and forecasted price 80 per share and return 12 percent?SolutionToday’s Price P0 = D1 + P1 / 1 + rPo = 8 + 80 / 1 + 12%Po = 78
Question-(5)Year CF0 -100,0001 40,000
2 30,0003 25,0004 25,0005 25,000if the rate of return is 10% a) Find the discounted payback period b) if the company targeted discount payback period is 4 years then company should accept the project or not give logical reason?SolutionYears Cash Flow DF @ 10% PV of CF Cumulative
Rs.97014 would be recovered in 4 years and Rs. 2986 (100000-97014) is yet to be recovered.Pay Back Period = 4 + (2986 / 15523) = 4.192 YearsOr by Month wise 15523 / 12 = 1294 per month100000 – 97014 = 2986 amount to be recoveredPay Back Period = 2986 / 1294 = 2.31 MonthsTotal month 48 + 2.31 = 50.31 monthsConverting months in years = 50.31 / 12 = 4.192 years
Question-(6)Company A Company BVariable cost 60% of sales and 50% of salesFixed cost 45000 and 95000Interest expense 30000 and 20000if sales revenues are 300,000 . a) Find the DOL b) of which company DOL is highSolution
Company A Company BVariable Cost 180,000 150,000Fixed Cost 45,000 95,000Interest Expenses 30,000 20,000Sales 300,000 300,000DOL 1.6 2.72
Company AIn above question DOL of Company A isDOL = Contribution Margin / Operating Profit or EBITDOL = (Sale – Variable Cost) / Sale - Variable Cost – Foxed CostDOL = 300000 – 180000 / 300000 – 180000 – 45000DOL = 1.6
Company BIn above question DOL of Company A isDOL = Contribution Margin / Operating Profit or EBITDOL = (Sale – Variable Cost) / Sale - Variable Cost – Foxed CostDOL = 300000 – 150000 / 300000 – 150000 – 95000DOL = 2.72
InterpretationsMore DOL results to Less Profit because of high fixed costLess DOL results to more profit because of less fixed cost
DOL can be calculated by using following formulas1. DOL = 1 + Fixed Cost / Profit2. DOL = Contribution Margin / Operating Profit3. DOL = Contribution Margin Ratio / Operating Profit Margin4. DOL = Contribution Margin / Earnings Before Interest and Taxes (EBIT)5. DOL = % change in Operating profit / % change in sale6. DOL = % change in EBIT / % change in sale
In Case of Cost of Debts is Before tax cost then we would calculate after tax cost of debt i.e.6%×(1-30%)=4.2%Particulars Rs Weight Cost Weighted Interest
Declaration: I don’t confirm which one is right and applicable
Option (b) would be solved by following the same pattern as stated above…
Question-(8)Two Projects summary given for Starlet Corporation.
Find NPV of both projects and suggest the bestInitial Investment of Project A is Rs.35000 and For project B it is Rs.40000inflows for project A are Rs.10000 for 5 years for project oneAnd Inflows for project B are Rs.15000 for 4 years for project two. interest 12% for both projects
Solution
Project-AYears Cash flows DF of Annuity
@ 12%DCF NPV
0 (35000) 0 (35000) 10481 -5 10000 3.6048 36048
Project-BYears Cash flows DF of Annuity
@ 12%DCF NPV
0 (40000) 0 40000) 55601 -4 15000 3.0373 45560
Project B NPV is higher so it would be accepted…
Question-(9)
Three Projects summary given with PKR 60,000 Capital Rationing.
first project with PKR 300,000 investment, second with PKR 200,000 investment & third with PKR 400,000 investment.
a. Find NPV of all three projects at different 10%, 11%, 12% discount rates. b. Rank the projects based on NPV c. which of the projects should be choose based on their NPV rankings
Projects Initial Investments
DF @10%, 11%, 12%
DCF NPV Ranking Selected Projects NPV
% of NPV of selected Projects
A 300000 0.9091 272730 27270 2 17160 63%
B 200000 0.9009 180180 19820 3
C 400000 0.8929 357160 42840 1 42840 100%
Total 89930
Comments:
Project C is within the range of capital so it would be selected as a whole,
As it is assumed that the project can be divisible so we would invest remaining amount (60000-42840) in project A upto 63% due to shortage of money…
NOTE: 60000-42840=17160 to be invested in project A
17160/27270=63%
Question-(10)
Calculate expected return and variance of stock under each state of economy and comment on result analyticallyBoom 25% return, Recession 12% returnProbability is .55 and .45 respectively.
Question-(1)Prepare fixed asset account where Opening balance 21,105.50 MSale proceed of asset costing 450 M with a loss of 10.50, market value of asset is 439.50 MDepreciation is 275 Ma) Find out closing balance of the assetAnd in some others papers following information was also givenClosing balance say 22,350 MAddition in asset says 58 Mb) Prepare asset account keeping in mind there are no purchases during the year and write reason of increase?Solutiona)
Particulars Amount Particulars AmountOpening balance 21,105.50 Sale proceed 439.50
Opening balance 21,105.50 Sale proceed 439.50Addition 58 Depreciation 275
Loss 10.50Revaluation surplus 1911.50 Closing balance 22350
Total 23075 Total 23075
If it is given In question that there is no purchase of addition in asset during the year and balance is showing in Cr side as above then it would be increase in asset value in market which would credited to Revaluation Surplus.
Question-(2)Following transfers are given of department Alfa, Beta, GammaAlfa to Beta (100 @ 20) and Gamma (200 @ 30)Beta to Alfa (200 @ 40) and Gamma (300 @ 20)Gamma to Alfa (400 @ 50) and Beta (250 @ 35)Find out the total amount transferred of any two department where department GP is 60% of sale
Solution
Departmental Transfer account
Receiving Department Transferring departmentAlfa Beta Gamma Alfa Beta Gamma`
To Beta 2000 By Alfa 2000To Gamma 6000 By Alfa 6000
To Alfa 8000 By Beta 8000To Gamma 6000 By Beta 6000To Alfa 20000 By Gamma 20000To Beta 8750 By Gamma 8750Total Amount Received
28000 10750 12000 Total Amount Transferred
8000 14000 28750
Or this format may also be used for ease…
Transferring Department Receiving departmentParticulars Alfa Beta Gamma Alfa Beta Gamma
From Alfa to Beta 2000 --- ---- ---- 2000 ---From Alfa to Gamma 6000 --- --- --- --- 6000From Beta to Alfa --- 8000 --- 8000 --- ---From Beta to Gamma --- 6000 --- --- --- 6000From Gamma to Alfa --- --- 20000 20000 --- ---From Gamma to Beta --- --- 8750 --- 8750 ---Total 8000 14000 28750 28000 10750 12000
Question-(3)Sale is 450M, GP is 60% of sale, operating expenses are 10% of sale, other income is 100M, financial charges are 10% after charging profit before tax, Income Tax is 25% after charging net profit. Prepare income statement
Solution(M)
Sale 450
Less: Cost of sale 180 (450-270)
Gross Profit 270 (450*60%)
Less: Operating Expenses 45 (450*10%)
Operating Profit 225
Add: Other Income 100
Profit before interest and tax 325
Less: Financial Charges 30 (325/110*10)
Profit before tax 295
Less: Tax @ 25% 59 (295/125*25)
Net Profit 236
Question-(4)Load on opening stock 1000, load on closing stock 2000, perished goods 5000, opening asset 50000, closing asset 60000, goods send 20000 @10% cost plus profit.. Prepare branch accounting?
Solution
Branch account
Particulars Amount Particulars AmountOpening assets 50000 Load on opening stock 1000Load on closing stock 2000 Load on transfer 1818Transfers 20000 Goods perished 5000
Closing assets 60000
Loss 4182Total 72000 Total 72000
Paper-[6] Solved by Maryam Dilawar
Q-1 Part (b) mentioned above
Q-1. Part (a) as mentioned above
Q-2 can b solved with the help of following example. It is 1-e illustration of mukherji book.
Q-3 as mentioned above
Q-4 can b solved with the help of following format. It is in lec 13. Example from lec 14 can also b follow to solve it.
Strategy Management (MGT703)
Solved by Zehra Khan
Please see if these are useful............Remember :It's just an attempt to help/share my ideas....If anyone thinks there are any errors kindly point out immediately .And do ponder over every given answer. Think critically. It just crossed my mind to share my answers.
Paper-[1]Q-1: McDonalds success of 2008 ($22.5 to 23.7 Billion revenue) while whole US is facing crisis. (How you see the globalization strategy benefited?)Q-2: Rostek Energy provider is very famous in providing energy solution worldwide but they are afraid of making investment in Pakistan. What are the threats they are looking at?Ans: Energy crisis, Security threats:law and order situation, political instability,unstable currency,and inflation.Q-3: How MIS System in Pakistan Cement Industry benefited? Although the competitors are not utilizing MIS and still smoothly produce and distribution of their product.
Ans.MIS supports Pakistan Cement Industry processes and operations by;a)Recording and storing accounting records ,operation and production records,human resource records strategic management data and marketing data.b)Process such records into financial statements ,reports and plans and systems,mission statements and portfolio models.MIS uses all of the above to implement, control and monitor plans,strategies,tactics and new products,new business models or new business ventures.
Q-4: KASB Bank is facing risk of dissolve. How they can avoid this situation while avoiding merge by others? Give 3 reason utilizing cost strategy and also write 2 other reasons which they should not use.
Paper-[2]Q-1: scenario that mcdonals remains on top among three companies including walmart, in financial crunch of 2008. Other than financial benefits what other benefits mcdolads gain.• Resources of different countries are used for producing goods and services they are able to do most efficiently.• Consumers to get much wider variety of products to choose from.
• Consumers get the product they want at more competitive prices.• Companies are able to procure input goods and services required at most competitive prices.• Companies get access to much wider markets• It promotes understanding and goodwill among different countries.• Businesses and investors get much wider opportunities for investment.• Adverse impact of fluctuations in (economy)agricultural productions in one area can be reduced by pooling of production of different areas.• The key to McDonald’s branding and marketing success is segmentation and experimentation.Q-2: match the strategiesForward, backward, horizontal, concentric,conglomerate diversification Scenarios: pepsi launched aquafina,_ horizontalhonda atlas have all over country branches,__forwardstandard chartered and union bank merger__,concentrichashoo group hotel business holder initated IT business__.conglomerate
Q-3: KASB bank is running low, using defensive strategy, what moves they can use. Recommend 3.They can either opt for retrenchment:reducing cost and assets by reorganizing itself.Divestiture: i.e to sell away some of their units/part of their business to meet their need of cash,and finances not available to the bank from any other resources.or liquidation:when neither retrenchment on nor divestiture proves to be beneficial.It should sell away all its assets rather than going bankrupt.
Paper-[2]
My Today’s Paper of MGT-703(Strategic Management) 14-01-2015 09:00 a.m MB140400201- AAMIR SHAH 0300-6828981Q1. AGP pharmaceuticals are trying to introduce E-Commerce practicefor reducing the bargaining power of distributors. Do you think thatE-Commerce based Forward Integration would be a useful option for thiscompany? Justify your answer with three appropriate reasons.Ans .Definitely introduction of E-Commerce will result in:cost saving ,smooth supply of inputs hence production operation will run smoothly , effective and efficient distribution of products and servicesstandardizing the distribution channelspeed up the distribution and save time E-commerce will broaden market for the company
Q2. ROSTEK is a multinational Company that provide Sustainablebusiness & Energy solutions around the world. Rostek wants to startbusiness in Pakistan but Strategists of Rostek are concerned about thenegative impact of economic forces in Pakistan. Try to identify atleast Five such economic factors of Pakistan and elaborate thatpotential impact for foreign investors like Rostek.Ans.political instability, security threats(terrorism) ,law and order situation ,power crisis ,weak currency (dollar instability) and inflationQ3. Identify the Five Strategies including Forward Integration,Horizontal Integration, Conglomerate Diversification and Concentric diversification in the following scenario:-1) Hashoo group that deals with hospitality business is starting IT business. Conglomerate diversification2) Honda Atlas cars ltd, the automobile dealers have distributors all over.forward integration3) Levis jeans,Garments brand has its own fabric and zip manufacturing plants.backward integration4) Pepsi launch Aquafina.horizontal diversification5) Merger of Standard Chartered Bank in Union Bank.Concentric diversification
Q4. Due to decreasing profitability of KASB bank. How can they executethe most appropriate Defensive strategy in the situation? Give threelogical reasons. Also identify the 2 other type of DefensiveStrategies not appropriate.Ans.The bank has 3 options i.e,Retrenchment ;decreasing cost and assets by reorganization strategy to meet the needs of cash/finance which is not available to it by any other source.It can become cost efficient by taking the following measures;a) Offering performance based salaries.This will make the staff efficient and save cost.b)Centralizing support functions as IT and HR.Thus gain economies of scale ,depend less on human resource and be more efficient and effective.(saving cost again)c)Implementing flat hierarchy,with short communication channels.this will minimize administration and bureaucracy cost.
d) Speed up decision making procedures.Delayed decisions result in loss of opportunities and waste of money. Divestiture ;If retrenchment does not fulfils the bank’s need of the cash then it should sell those divisions or parts of the business that are not profitable or that are the cause of the firm’s overall poor performance . It should sell away the lands/buildings that are idle and producing no revenue,sell those offices/businesses that are not profitable, or that demand huge capital or resources that are not affordable for the bank.Thus bank should get less diversified and focus on its core strength.liquidation ; If neither of the 2 tactics could fulfill its need of the cash then rather than going bankrupt it should dilute all of its assets for their tangible worth.KASB bank should become cost efficient by adopting different strategies such as 1.Adopting performance based salaries so that staff becomes efficient and saves cost .2.Switching to autonomous support functions as IT and HR ;to depend less on human resource and being more efficient and accurate.3.Having flat hierarchy ;to speed up decision making and thus saving cost by not losing any opportunity in late decision making due to centralized system.
Q2. EFE matrix explain with their stepsAns.EFE Matrix and Competitive Profile Matrix, an IFE Matrix can be developed in five steps:1. List key internal factors as identified in the internal-audit process. Use total of from ten to twentyinternal factors, including both strengths and weaknesses. List strengths first and then weaknesses.Be as specific as possible, using percentages, ratios, and comparative numbers.2. Assign a weight thsat ranges from 0.0 (not important) to 1.0 (all-important) to each factor. Theweight assigned to a given factor indicates the relative importance of the factor to being successfulin the firm's industry. Regardless of whether a key factor is an internal strength or weakness, factorsconsidered to have the greatest effect on organizational performance should be assigned the highestweights. The sum of all weights must equal 1.0.3. Assign a 1-to-4 rating to each factor to indicate whether that factor represents a major weakness(rating = 1), a minor weakness (rating = 2), a minor strength (rating = 3), or a major strength(rating = 4). Note that strengths must receive a 4 or 3 rating and weaknesses must receive a 1 or 2rating. Ratings are, thus, company based, whereas the weights in Step 2 are industry based.4. Multiply each factor's weight by its rating to determine a weighted score for each variable.5. Sum the weighted scores for each variable to determine the total weighted score for theorganization.Regardless of how many factors are included in an IFE Matrix, the total weighted score can range from alow of 1.0 to a high of 4.0, with the average score being 2.5. Total weighted scores well below 2.5characterize organizations that are weak internally, whereas scores significantly above 2.5 indicate a stronginternal position. Like the EFE Matrix, an IFE Matrix should include from 10 to 20 key factors. Thenumber of factors has no effect upon the range of total weighted scores because the weights always sum to1.0.
Q3 PSO does not use strategic planning and give 3 reasons of avoiding strategic managementMany firms do not engage in strategic planning and some firms do strategic planning that is poor and ill conceived. Some of the reasons for this sorry state of affairs in these firms are listed below:lack of experience in strategic management and the presence of those who do not understand strategic management.poor reward structure in place where success goes unrewarded and failures are punishedBecause an organization is always firefighting which means that is so embroiled in its internal problems, the top management does not have the time or the energy to engage in strategic management. This is often the case with many firms where the lack of coherence and control in organizational processes Some firms view strategic planning and strategic management as a waste of time since they are under the impression that they can handle the longer-term imperatives by doing things that they have always done in a particular manner..Many firms, especially those that have been successful see no point in formulating newer strategies since their position is comfortable and they are content with success. Success breeds arrogance as the case of Nokia, which went from market leader to the bottom in a few years time reminds us.With experience, many managers think that they can weather any storm but experience is not always the best guide. Perhaps one of the most important reasons why firms do not engage in strategic management is that they fear the “unknown”. What they forget is that precisely because of the unknown and the unpredictable; they have to plan in advance. Further, the managers might be uncertain of their abilities to learn new skills, of their aptitude with new systems, and their ability to take on new roles.Finally, the lack of consensus and differing ideas as to what a good strategy ought to be.
Mgt703
- Integration ma sa question keh kya effect ho ga uska company par agar woh change krti haye tou.
Q. Corporate's responsibility ka question tha totally common sense wala.Ans.It is corporate’s responsibility not to damage or deploy its environment• Offer safe products and services to the society• Duly test and try the products before marketing• Not to pollute our environment;the waters,the forests,the air ,etc• Be useful by being a source of employment.Improving the quality of life of the employees and community at large.• Project a positive image of its nation.• Strenghthen economy• Companies have a lot of power in the community and in the national economy. They control a lot of assets, and may have billions in cash at their disposal for socially conscious investments and programs.- Strategies discuss krni thein.
Answers of the new questions that appeared in my paper today:
Q3..A software company wants to make investment in Pakistan .Its initial feasibility report tells that there are many educated workforce available in Pakistan and other software companies are also planning to invest in Pakistan but the demand is that of innovative softwares.Briefly discuss the above scenario using Michael Porters 5 forces. Ans. Basically Michael Porter’s 5 forces are:• Rivalry among competing firms: The more competing a group of firms the more rival they are so that depends .• Potential development of substitute products: In this market there is great potential of developing substitute products .. • Bargaining Power of suppliers: The more the suppliers.less is the bargaining power and vice versa.• Bargaining Power of consumers: Similarly ,more consumers,less is the bargaining power and vice versa• Potential entry of new competitors: In this scenario there are many potential entrants All these points can be discussed with respect to the strategies used by the firms in the market i.e Cost leadership ,differentiation and focus.Q4.A company has patented to recycle its product to meet the requirements of environmental responsibilities.Explain any 5 external factors that will have a positive impact due to this act. This company will enjoy goodwill,increased sales and thus revenues,good reputationpowerful/effective/believable successful marketing effortsthink of other points……
Production and Operational Management (MGT713)
Answered by Zehra Khan
Paper-[1]Q-1: Forecasting is the prediction of future demands and it is accompanied with the related planning in order to meet the forecasted demand. The forecasting is believed by some people as related to production department only which is not true.How will you advocate the above stance stating the importance of forecasting for marketing, finance and management departments? Capacity decisions are important to all departments of the organization; an accountant would beinterested in collecting cost accounting information in order to ensure that correct capacity expansiondecision is reached. Similarly a financial manager would be interested in performing the financialanalysis of whether the investment decision is justified for a plant or capacity increase. An InformationTechnology Manager would end up preparing data bases that would aid the organization again to decideabout the capacity and last but not the least an operations manager would select strategies that wouldhelp the organization achieve the optimum capacity levels to meet the capacity demand.Ans.Q-2: Independent demand is the demand for finished products whereas dependent demand is the demand for component parts related to that product. State you opinion that forecasting for which type of demand is difficult to be made. Also describe how firms can manage independent demand in an efficient way?Q-3: Mr. Ali is a operation manager of a crew that installs carpeting, has recorded the crew’s output over the past several weeks, his obtained results are depicted in table below:Week Crew size Yard installed1 6 6462 4 6203 3 588
4 2 570Compute labor productivity for each week and draw a general conclusion about crew size and productivity.Q-4: Despite of the fact that process layout has ability to handle a variety of process requirements, some critiques still don’t support the idea of process layout. Being an analyst of production/operation management how will you support their view of NOT using process layout.Ans.Process layout should not be used as it has the following drawbacks.1. In-process inventory costs can be high.2. Challenging routing and scheduling.3. Equipment utilization rates are low.4. Material handling slow and inefficient.5. Complexities often reduce span of supervision.
Paper-[2]Q-1: Difference between Operational and Organizational Strategy, 5 marksAns. •Organizational strategy iso Over all big picture for the whole organization.o Longer in time horizono Less detailed and broader in scope.•Operational Strategy is• Narrower in scope and in more detail• Prepared by middle management.• Should be in line with the Organization strategy•Operational Strategy if• Designed and implemented successfully can make an organization more successful.• Operational strategies mostly function on two dimensions of quality management and•s ervice/manufacturing strategy.
Q-2: Forecasting techniques k bary main ak paragraph dia hoa tha btana tha k yahan operational manager kon si technique use kery ga.Ans.For this as we are not given the scenario so that we may accurately apply the technique lets have a look at all techniques .Fundamental Types of Forecasts•Qualitative Techniques which use subjective inputs and no numerical data. It relies solely on softinformation like human factors, personal opinion, hunches. Thus Qualitative Forecasts are often biasedand tilted towards what the management wants to predict.
Production and Operations Management –MGT713 VU•Quantitative Forecast involves the extension of the historical data. It sometimes makes use offorecasting technique that uses explanatory variables to predict future demands. Quantitative techniquesare favored where quality attributes cant be quantified.•In reality both need to be used together to develop a judicious and realistic forecast.Finer Classification of Forecasts•Judgmental - uses subjective inputs meaning that a judgmental forecast rely on analysis of subjectiveinputs obtained from various sources, such as consumer surveys, the sales staff, managers andexecutives, and panels of experts. These insights are not available publicly.•Time series - uses historical data assuming the future will be like the past and depend on developingrelationships between variables that can be expressed to predict future values. Some time series forecasttry to smoothen out random variations in historical data. There are some time series forecast whichidentify specific patterns and then may even extrapolate those patterns into the future.• Associative models - uses explanatory variables to predict the future for example demand for a smallcar may be dependant upon increase in price of petrol or CNG. The analysis in this case would employ amathematical model that would relate the predicted variable with the predictor variable or variables.Judgmental Forecasts Characteristics•Judgmental Forecasts rely solely on judgment and opinion to make forecasts.•In the absence of enough time, it is easy to use qualitative type of forecast.•In case of changing external environment economic and political conditions, organizations may usejudgmental forecasts.•When introducing new products, services, new features, new packaging, judgmental forecasts are usedin preference over quantitative techniques.Judgmental Forecasts•Executive opinions normally consist of a group of senior level managers from different interfaces,used for long range planning and new product development. Advantage being the collective pool ofinformation from all divisions and departments, disadvantage being that one person will dominate otherinterfaces, which can lead to erroneous forecasts.•Sales force opinions have the advantage of being in direct contact with customers. The sales force can
detect the customers’ change of plan, However it suffers from the fact that it can not differentiatebetween what the customer can do and will do. Current data of sales can often lead to over pessimisticand overly optimistic forecasts, which then results in incorrect sales projections.•Consumer surveys are based on sample taken from potential customers. These type of surveys requireskill to develop, administer and interpret the results. Often fall victim of the consumers irrationalbehavior of buying.•Outside opinion which is a mix of consumer and potential customers. This kind of opinion is now adays readily available through internet, telephonic surveys and newspapers. Its biggest limitation is afixed format which often fails to quantify the exact demand forecast.•Delphi method: Managers and staff complete a series of questionnaires, each developed from theprevious one, to achieve a consensus forecast. Commonly used for Technological forecasting, when tointroduce a new technology. It’s a long term one time activity and has the same issues like expertopinion type of judgmental forecast.Time Series Analysis•Time series forecasting models try to predict the future based on past data•We as Managers can pick models based on:1. Time horizon to forecast2. Data availability3. Accuracy required4. Size of forecasting budget5. Availability of qualified personnelMaximin or Laplace find out kerna tha kuch alternatives dye hoe thy
Paper-[3]Q-1: Operation manager want to forecast the impact of technical changes to the employees. a) Which method of forecasting he has to use and Why?b) how to implement that method you suggested?
Ans. •Delphi method: Managers and staff complete a series of questionnaires, each developed from theprevious one, to achieve a consensus forecast. Commonly used for Technological forecasting, when tointroduce a new technology. It’s a long term one time activity and has the same issues like expertopinion type of judgmental forecast.
Q-2: The operations manager of a garments manufacturing Company has the following data of the possible forecasted demands against the different alternatives which are small facility, medium facility and the large facility. Calculate Laplace and Minimax regretAlternatives Possible - future - demandLow (Rs.) - Moderate (Rs.) - HighSmall: 5,000 7,000 14,000Medium: 14,000 16,000 27,000Large: 11,000 16,000 19,000Ans.Laplace:Small 5000+7000+14000/3 = 26000/3 = 866.66Medium 14000+16000+27000/3 = 57000/3 = 19000Large 11000+16000+19000/3 = 46000/3 = 15333So the answer is the medium facility since it has the highest value Rs. 19000Minimax:14000-5000=9000 16000-7000=9000 27000-14000= 1300014000-14000=0 16000-16000=0 27000-27000=014000-11000=3000 16000-16000=0 27000-19000=8000Selecting the maximum regret value of each row :1300008000So the minimum of the maximum is 0.Q-3: Difference between Organizational strategies from operational strategies. and what will its impact on business if these are aligned in an organization?Q-4: Standardization is important but some are its critics.a) What if the standardization is not implementing?Ans. Brief answer.We live in a world where for the sake of convenience, reliability and safety,majority of the products and services have been standardized. If for a moment any process whetherit relates to manufacturing or services is made standard less, the vital concept of compatibilitywould be lost. Think for a moment if there is a fire at a Montessori school or at a crowded stadium,if there is no standardization of fire hose attached to the fire truck and fire hydrant present at thesite, no effort would succeed in putting out the fire and saving the lives of the people.Elaborated answer
Advantages of StandardizationAll the sections of company will be benefited from standardization as mentioned below.Benefits to Design Department1. Fewer specifications, drawings and part list have to prepared and issued.2. More time is available to develop new design or to improve established design.3. Better resource allocation.4. Less qualified personnel can handle routine design work.Benefits to Manufacturing Department1. Lower unit cost.2. Better quality products.3. Better methods and tooling.4. Increased interchangeability of parts.5. Better utilization of manpower and equipment.6. Accurate delivery dates.7. Better services of production control, stock control, purchasing, etc.8. More effective training.Benefits to Marketing Department1. Better quality products of proven design at reasonable cost leads to greater sales volume.2. Increased margin of profit.3. Better product delivery.4. Easy availability of sales part.5. Less sales pressure of after-sales services.Benefits to Production Planning Department1. Scope for improved methods, processes and layouts.2. Opportunities for more efficient tool design.3. Better resource allocation.4. Reduction in pre-production activities.Benefits to Production Control Department1. Well proven design and methods improve planning and control.2. Accurate delivery promises.3. Fewer delays arise from waiting for materials, tools, etc.4. Follow-up of small batches consumes less time.Benefits to Purchase and Stock Control Department1. Holding of stock of standard items leads to less paper work and fewer requisitions andorders.
b) Do you agree with standardization or not?Yes ,from both manufacturerservice provider and customers’ point of view it is useful;is a source of convenience , safety and reliability which is the need of the time ,so I agree.
Paper-[4]Q-1: Does improvement in the quality of a product can differentiate your product from that of your competitors? Explain in detail with logical reasons. Ans. Yes, definitely .The basic implication of differentiation is providing those features or quality or services etc that fulfil the changing demands of consumers in a better way,efficiently and effectively so that the consumer starts looking at the product/service as more useful and starts buying that instead of others.So very clearly quality improvement DOES differentiate products.Further, quality improvement can be accomplished in countless ways e.g by improving the inputs’ standard so that the end product becomes more:durable/long lasting gives better results than before makes it easier to use,safer to useefficient etc etcIn short ,every way of quality improvement is differentiating your product and making the older versions obsolete.
Q-2: It is a concept that forecasting is done by production department and it helps only to this department. Do you agree with this? Explain the importance of forecasting in the marketing, Finance and Management department? Q-3: Numerical question from Lesson no.6. Calculate Minimax Regret and Laplace of the given data. (I have not done this question)Q-4: yad nhn but it was from forecasting also.
Paper-[5]Q1. Define Opration and organizational strategy. Y op strategy need to align with organizational strategy.?Relationship between Operations and Organizational Strategy
•Organizational strategy iso Over all big picture for the whole organization.o Longer in time horizono Less detailed and broader in scope.•Operational Strategy is• Narrower in scope and in more detail• Prepared by middle management.• Should be in line with the Organization strategy•Operational Strategy if• Designed and implemented successfully can make an organization more successful.• Organizations started focusing on operational strategies in early 1990s before thatorganizations focused on financial and marketing strategies.• Operational strategies mostly function on two dimensions of quality management and• service/manufacturing strategy.Q2. Question about cpfr. Ans.Web-Based Forecasting:Steps in CPFR1. Creation of a front-end partnership agreement2. Joint business planning3. Development of demand forecasts4. Sharing forecasts5. Inventory replenishment•Assumes causal system( That same system that existed in the past will exist in future, where as inreality unplanned events happen like tax rate increase, introduction of a competitors product or serviceor natural disasters)•Forecasts rarely perfect because of RANDOMNESS (having no specific pattern). Allowances shouldbe made for inaccuracies.•Forecasts more accurate for groups vs. individuals naturally because forecasting errors in a group tendto cancel out forecasting errors for individuals.•Forecast accuracy decreases as time horizon increases indicating it is safe to make short range forecastsinstead of long term forecasts. If you can recall we had talked about Flexible and Agile Corporations inthe past.
Ans.Q3. Data was given and need to find laplace and minimax regression.Q4. Disadvantages of process layoutDisadvantages of Process Layouts1. In-process inventory costs can be high.2. Challenging routing and scheduling.3. Equipment utilization rates are low.4. Material handling slow and inefficient.5. Complexities often reduce span of supervision.
Ye question reh gaya tha MGT 713 ka Q-2: It is a concept that forecasting is done by production department
and it helps only to this department. Do you agree with this? Explain the importance of forecasting in the
marketing, Finance and Management department?
Ans.Forecasting is required at every step ,for almost every decision ,at almost all levels .
Marketing Department:
needs to forecast where ,when and what product/service to market.
Which is best time to launch a product or service,when to offer discounts ,etc
What prices to set (keeping in view the competitors moves)
Finance Department:
Needs to forecast when ,where , in what project to invest
How to,from which sources to finance etc
Management :
Needs to forecast different strategies to help the organization succeed like when to hire ,fire,expand the
business, diversify or focused strategy, ivolve in joint ventures,mergers, etc
Ye solution to shayad sabhi ko ata hy phir bhi ..... Q-3: Mr. Ali is a operation manager of a crew that installs
carpeting, has recorded the crew’s output over the past several weeks, his obtained results are depicted in
table below:
Week Crew size Yard installed
1 6 646
2 4 620
3 3 588
4 2 570
Compute labor productivity for each week and draw a general conclusion about crew size and productivity.
Solution:
Labor productivity week 1= out put /input = yard installed /crew size =646/6 = 107
Labor productivity week 2= out put /input = yard installed /crew size =620/4 = 155
Labor productivity week 3= out put /input = yard installed /crew size =588/3 = 196
Labor productivity week 4= out put /input = yard installed /crew size =570/2 = 285
So as the crew size is decreasing the efficiency is increasing,or we may say that 570 yard per 2 labors is the
point at which economies of scale exists then diseconomies of scale start.At 570/2 the production is most
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