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EXECUTIVE M.B.A. DEGREE EXAMINATION, DECEMBER 2011.

First and Second Years

Paper I — PRESPECTIVES OF MANAGEMENT

Time : Three hours Maximum : 75 marks

SECTION A — (3 5 = 15 marks)

Answer any THREE of the following.

1. (a) Nature of management

(b) MBO

(c) Game theory

(d) Decentralisation

(e) Sources of recruitment

(f) Informal communication.

SECTION B — (3 15 = 45 marks)

Answer any THREE of the following.

2. What are the essentials of effective communication?

3. State the role of manager in the social responsibility of business.

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4. Explain the causes for the conflict between line and staff organisations.

5. Enumerate the executive development programmes followed by Indian industry.

6. Describe the use of Linear programming in decision making.

7. Describe the impact of external environment on management.

SECTION C — (15 marks)

(Compulsory)

8. Case study :

One of the most - successful discount department stores in America is known as Wal-Mart stores and is named after its founder Sam Walton. Because of the phenomenal success of these stores, Sam Walton became the richest man in America. Also, because of his leadership, the stores have enjoyed continuous growth and expansion, so that by mid 1980s, the chain had over 700 stores and increasing at the rate of an additional 100 stores per year. Its sales increased annually by over 35% per year and the profits have soared close to 40% per year every year since 1975.

Sam Walton, until he died in 1992, took personal interest in his employees. His managerial philosophy was to get the right people in the right places and then give them the freedom to be

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innovative to accomplish their task. He called his employees as associates and treated them as associates. As per company policy, all associates are eligible for profit sharing plans which motivates the employees further. The managers of the stores are required and encouraged to meet with their employees in a social setting to discuss their concerns as well as issues of organizational interest, and this makes the employees feel that their input is taken seriously by the management.

Sam Walton himself led a simple life. He did not exhibit any aura about himself, giving the employees a feeling that he was one of them. He and his executives regularly travelled in company owned planes to visit wal-Mart stores situated at various sites across the country. He met with sales clerks, stock boys and sales managers to find out what items were popular. He knew most of them by their first names and addressed them so. He initiated “employee of the month” in all categories and created honour roles for more successful stores. This created inner competition requiring extra effort to improve sales and service. This policy gained high respect for him as a leader.

The administration of the organization is very cost conscious. It only spends about 2% of sales for general administrative expenses. It shops for suppliers at bargain prices all around the world and has built giant warehouses around the country in such a manner so that most stores are within six hours of driving distance from a

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warehouse. This helps in better delivery system and reduced inventories at retail stores. Each store prepares a monthly financial report which can be studied line by line to look for ways to reduce costs further.

These cost savings are passed onto the customers and this in turn generates customer loyalty. Wal-Mart slogan of ‘‘Quality you need, prices you want’’ has become a generic organizational statement.

Wal-Mart with more than 2000 stores at present is faced with tough competition from a similar chain of discount stores known as K-Mart. However, Sam Walton did not worry about the competition because he felt that his people oriented philosophy of operations and cost cutting efforts without diluting the quality of the merchandise would always meet the competition head-on.

Questions :

(a) What are the major reasons for the company's phenomenal success? Explain those reasons in detail.

(b) How would you describe Sam Walton as an effective leader? What leadership theory is consistent with his leadership style?

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EXECUTIVE M.B.A. DEGREE EXAMINATION, DECEMBER 2011.

First and Second Years

Paper X — HUMAN RESOURCE MANAGEMENT

Time : Three hours Maximum : 75 marks

SECTION A — (3 × 5 = 15 marks)

Answer any THREE of the following.

1. (a) Concept of HRD.

(b) Collective bargaining.

(c) Panel discussion

(d) Employee health

(e) Job satisfaction

(f) Fringe benefits.

SECTION B — (3 × 15 = 45 marks)

Answer any THREE of the following.

2. What are the principles involved in HRM?

3. Describe the techniques followed in job analysis.

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4. State the techniques followed while forecasting

demand and supply of employees.

5. Bring out the recruitment practices of Indian

industry.

6. What are the tools employed in the selection of

employees?

7. How do you assess the effectiveness of a training

programme?

SECTION C — (15 marks)

Compulsory

8. Case study :

Ramoji Rao is in charge of a bindery in Vijayawada, which employs fifteen people, five of whom work in the factory. Three of these employees run machines, one supervises, and the fifth moves the blank paper and finished print by handcar. This fifth position, which demands no skill other than driving a handcar, needs to be filled and three applicants have responded.

The first is Mr. Matti Anjaiah who is thirty five,

unmarried, and a Navy veteran. Anjaiah has a

poor work record. During his five years in

Vijayawada he has worked only seasonal labour

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and occasional odd jobs. He drove a forklift in the

Navy, while working at Visakhapatnam. He has a

strong built, which could help, although the work

is generally light.

Mr. Nehal Singh, age twenty two, came to

Vijayawada two years back from Punjab. He has

done farm labour for many years and assembly-

line for one year. His command of English is poor

(but can speak the regional language, Telugu,

fluently). He resides with his mother and seems

certain to remain in the area for some time. After

having run farm equipment he should have no

trouble steering a handcar.

Mr. Vangaveeti Raja is a local boy who finished

high school two years ago. Subsequently, he got a

diploma from a local III and is currently employed

as an assistant in Savani Transport Company,

Vijayawada. His character references are

excellent. Mr. Raja s small, but he seems quick

and was a track star in high school.

(a) How much considerations should be given to

Mr. Anjaiah’s poor work record? Should

Mr. Ramoji Rao check to verify it?

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(b) How important is command of English to the

job? How quickly could Mr. Nehal Singh

assimilate enough English to be effective?

(c) Should Mr. Nehal Singh be passed over

because of his status as a recent migrant.

(d) Should Mr. Raja get the job? How heavily should his references be weighed against his in experiences?

(e) Who should be hired? Why?

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EXECUTIVE M.B.A. DEGREE EXAMINATION, DECEMBER 2011.

First and Second Years

Paper II — BUSINESS ENVIRONMENT

Time : Three hours Maximum : 75 marks

SECTION A — (3 × 5 = 15 marks)

Answer any THREE of the following.

1. (a) Political environment.

(b) Tiny sector.

(c) Planning goals.

(d) FDI.

(e) Privatisation.

(f) Social justice.

SECTION B — (3 × 15 = 45 marks)

Answer any THREE of the following.

2. Explain the changing role of government in business.

3. What are the symptoms of industrial sickness?

4. Explain the strategies followed under 5 year plans in India.

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5. Critically examine the EXIM policy of India.

6. State the reforms introduced in the financial sector.

7. Critically examine the industrial policy of India.

SECTION C — (15 marks)

(Compulsory)

8. Case Study :

Nicholas Piramal India, a giant in the pharamaceutical market, achieved a sale growth of 26% in 2003-04 at about Rs. 1, 435 crore, its net profit rose by 60% from Rs. 118 crore in 2002-03 to Rs. 188 crore in 2003-04

Nicholas Piramal had a different growth strategy as it started as a small player with big dreams. The strategy was organic growth coupled with acquisitions. Piramal acquired nine entities and integrated them quickly into the parent company to deliver higher growth from the acquired portfolio.

Nicholas Piramal is also focusing on exports market. It has decided to partner with innovator companies in global markets, rather than compete or patent litigate against them. Building on this base, the company has built an export model that delivers the ‘India advantage’ to the global firms. It plans to provide end-to-end outsourcing solutions across the pharmaceutical life cycle, from

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custom-made synthesis and bulk intermediates to formulations. It has established four process development groups at multiple locations in India and has also set up a 100% subsidiary in the US for closer customer reach. Nicholas Piramal believes that the future growth driver will be exports, ably supported by a strong domestic market.

Questions

(a) What are the growth strategies formulated by Nicholas Piramal to explore the opportunities?

(b) What are the risk factors that the company may face in international market?

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EXECUTIVE M.B.A. DEGREE EXAMINATION, DECEMBER 2011.

First and Second Year

Paper III — MANAGERIAL ECONOMICS

Time : Three hours Maximum : 75 marks

SECTION A — (3 5 = 15 marks)

Answer any THREE of the following.

1. (a) Positive economics.

(b) Demand function.

(c) Differential cost.

(d) Price discrimination.

(e) Accounting concept of profit.

(f) Pay back period.

SECTION B — (3 15 = 45 marks)

Answer any THREE of the following.

2. Describe the significance of managerial economics.

3. What are the different methods of forecasting demand for existing products?

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4. Discuss the empherical estimates of relationship between production and cost.

5. Explain the pricing strategies followed by a firm under monopoly.

6. Critically examine the behavioural theory of the firm.

7. State the economics of risk and uncertainity.

SECTION C — (15 marks)

(Compulsory)

8. Case study :

Bhavani Ltd. is manufacturing products mostly by manual labour and is considering to replace it by a new machine. There are two alternative models ‘X’ and ‘Y’ of the new machine. Prepare a statement of Profitability indicating the pay — back period from the following data :

Machine X Machine Y

Rs. Rs.

Estimated life of the machine 8 years 10 years

Cost of the machine 18,000 36,000

Estimated savings in scrap 1,000 1,600

Estimated savings in direct wages 12,000 16,000

Additional cost of maintenance 1,600 2,000

Additional cost of supervision 2,400 3,600

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EXECUTIVE M.B.A. DEGREE EXAMINATION, DECEMBER 2011.

First and Second Years

Paper IV — ACCOUNTING FOR MANAGERS

Time : Three hours Maximum : 75 marks

SECTION A — (3 × 5 = 15 marks)

Answer any THREE of the following.

1. (a) Accounting cycle

(b) Errors of commission

(c) Revenue expenditure

(d) Forfeiture of sales

(e) Profit and Loss account

(f) Labour cost variance.

SECTION B — (3 × 15 = 45 marks)

Answer any THREE of the following.

2. Classify costs with examples.

3. State different methods of inflation accounting.

4. Explain the practical application of marginal costing.

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5. Enumerate the accounting procedures for distributing dividends.

6. How do you prepare profit and loss account?

7. Dynamic Ltd., makes an issues of 5,000 equity shares of Rs. 100 each at a premium of Rs. 12.50 share payable as follows :

(a) Rs. 12.50 on application,

(b) Rs. 25.00 on allotment (including premium),

(c) Rs. 50.00 on first call,

(d) Rs. 15 on second call,

(e) Rs. 10 on final call,

The application and allotment money are duly received and in addition, holders of 2,500 shares pay in full on allotment. Holders of 100 shares fail to pay first call and after due their shares are forfeited. The amounts payable on second call (made after forfeiture) are paid in full, except that a holder of 50 shares fails to pay. 75 of the 100 shares forfeited are reissued credited with Rs. 90 paid for Rs. 65 per share. The new shareholder pays these shares in full. The balance of Rs. 10 per share is being treated as calls-in-advance. The final call is met in full including the arrears of the second call.

Show the necessary journal entries.

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SECTION C — (15 marks)

8. The comparative balance sheet of Doba Company

showed the following changes in balance sheet

items from 1991 to 1992.

Rs.

Working capital 1,27,500 increase

Long-term investments 45,000 increase

Land 48,000 increase

Machinery

(Less accumulated depreciation) 90,000 increase

15% debenture 2,40,000 increase

Share capital 60,000 increase

Reserves and Surplus 10,500 decrease

The following additional data are provided :

(a) Net profit for the year was Rs. 1,57,500

(b) Accumulated depreciation for 1991 was

Rs. 67,500 and for 1992 Rs. 90,000.

(c) A machine of Rs. 1,12,500 was purchased

during the year, depreciation expense for the

year was Rs. 22,500.

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(d) A bonus issue of shares of Rs. 60,000 was

made during the year.

(e) A cash dividend of Rs. 87,000 was declared

and paid during the year.

Prepare a statement of changes in financial position for Doba Company.

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EXECUTIVE M.B.A. DEGREE EXAMINATION, DECEMBER 2011.

First and Second Years

Paper V — QUANTITATIVE TECHNIQUES FOR MANAGERIAL DECISIONS

Time : Three hours Maximum : 75 marks

SECTION A — (3 5 = 15 marks)

Answer any THREE of the following.

1. (a) Functions.

(b) Mean.

(c) Conditional probability.

(d) Regression.

(e) Sampling errors.

(f) Survey method.

SECTION B — (3 15 = 45 marks)

Answer any THREE of the following.

2. Explain the use of quantitative techniques in managerial decision making.

3. What are the tools used in the collection of data?

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4. Enumerate the limitations of different techniques

of sampling.

5. A bag contains 5 white balls and 3 red balls.

Another bag contains 4 white balls and 5 red balls.

If one ball is drawn from each bag find out the

probability that :

(a) Both are white

(b) Both are red

(c) One is white and one is red.

6. Calculate harmonic mean and geometric mean

from the data given below :

x : 5 12 17 20 25 30

y : 3 2 5 9 5 2

7. Solve the system equation :

17 zyx

1632 zyx

2243 zyx .

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SECTION C — (15 marks)

(Compulsory)

8. Case study :

A sample of 400 students of under-graduate and 400 students of post-graduate classes was taken to know their opinion about autonomous colleges. 290 of the under-graduate and 310 of the post-graduate students favoured the autonomous status. Present these facts in the form of a table and test, at 5% level, that the opinion regarding autonomous status of colleges is independent of the level of classes of students.

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EXECUTIVE M.B.A. DEGREE EXAMINATION, DECEMBER 2011.

First and Second Years

Paper VI — INFORMATION MANAGEMENT AND COMPUTER APPLICATIONS

Time : Three hours Maximum : 75 marks

SECTION A — (3 × 5 = 15 marks)

Answer any THREE of the following.

1. Write short notes on :

(a) Spread sheet.

(b) Computer based HRM.

(c) Computer virus.

(d) COBOL concept.

(e) Operating Systems.

(f) Control System.

SECTION B — (3 × 15 = 45 marks)

Answer any THREE of the following.

2. What are the managerial applications of software?

3. Formulate computer based inventory system with suitable example.

4. Discuss the methods used for the detection and removal of virus.

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5. State the social dimensions of computerisation.

6. Discuss the features and applications of COBOL.

7. Give an account of systems analysis and design.

SECTION C — (15 marks)

(Compulsory)

8. Case Study :

Before embanking on integrated information system projects, top managers often know which employees are likely to be laid off. However, in an effort to with the cooperation of employees during system development, managers often provide verbal assurances of job security to employees who will be laid off a few months often after the system becomes operational. Manager often find themselves in a dilemma. Being truthful about coming layoff many interfere with employee cooperation. How would you as a manager, handle this situation?

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EXECUTIVE M.B.A. DEGREE EXAMINATION, DECEMBER 2011.

First and Second Years

Paper VII — FINANCIAL MANAGEMENT

Time : Three hours Maximum : 75 marks

SECTION A — (3 5 = 15 marks)

Answer any THREE of the following.

1. (a) Financial Market

(b) Wealth maximisation

(c) NPV

(d) EBIT

(e) Optimum capital structure

(f) Marginal cost of capital.

SECTION B — (3 15 = 45 marks)

Answer any THREE of the following.

2. How do you organise finance function in a firm?

3. Explain the working of Indian money market.

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4. State different methods of valuing bonds.

5. The company is considering investment of Rs. 1,00,000 in a project. The following as the income following as the income forecasts, after depreciation and tax, 1st year Rs. 10,000 and 2nd year Rs. 40,000, 3rd year Rs. 60,000, 4th year Rs. 20,000 and 5th year Re. Nil.

From the above information, you are required to calculate

(a) Pay — back period,

(b) Discounted pay — back period at 10% interest factor.

6. From the following particulars, calculate

(a) P/V ratio

(b) Profit when sales are Rs. 40,000 and

(c) New break—even point if selling price is reduced by 10%

Fixed cost Rs. 8,000 ; Break even point Rs. 20,000 ; and Variable cost Rs. 60 per unit.

7. What are the considerations in formulating dividend policy?

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SECTION C — (15 marks)

(Compulsory)

8. Case study :

Ever-Responsive Ltd is a widely-held company. It is considering a major expansion of its production facilities and the following alternatives are available :

Alternatives

Particulars A B C

(Rs.) (Rs.) (Rs.)

Share Capital 50,00,000 20,00,000 10,00,000

14% Debentures – 20,00,000 15,00,000

Long-term Loan® 18% p.a. – 10,00,000 25,00,000

Expected rate of return before tax is 25%. The rate of dividend of the company has been not less than 20%. Taxation rate applicable to the company is 50%.

Assuming that at present, there is no debt, which alternative financing strategy do you recommend? And why?

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EXECUTIVE M.B.A. DEGREE EXAMINATION, DECEMBER 2011.

First and Second Years

Paper VIII — OPERATIONS MANAGEMENT

Time : Three hours Maximum : 75 marks

SECTION A — (3 × 5 = 15 marks)

Answer any THREE of the following.

1. (a) Product layout.

(b) Gantt chart.

(c) JIT.

(d) Qualitative factors in location.

(e) Codification.

(f) Flow chart.

SECTION B — (3 × 15 = 45 marks)

Answer any THREE of the following.

2. State the controllable variables in production planning.

3. Describe life cycle approach to operation management.

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4. How does concurrent engineering benefit production system?

5. Bring out the functions of Store Keeper.

6. Explain the techniques employed while controlling projects.

7. Elucidate the factors that may be considered while selecting product.

SECTION C — (15 marks)

Compulsory

8. A firm’s annual requirement of inventory is 30,000 units. The acquisition cost amount to Rs. 150 per order. The carrying costs are likely to be Rs. 1.20 per unit per year.

Assume the following order sizes :

(a) 30,000 units

(b) 15,000 units

(c) 6,000 units

(d) 3,000 units

(e) 1,500 units

(f) 750 units.

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Determine :

(i) Order cost

(ii) Carrying cost

(iii) Average inventory

(iv) Economic order quantity.

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EXECUTIVE M.B.A. DEGREE EXAMINATION, DECEMBER 2011.

First and Second Years

Paper IX — MARKETING MANAGEMENT

Time : Three hours Maximum : 75 marks

SECTION A — (3 5 = 15 marks)

Answer any THREE of the following.

1. (a) Selling concept

(b) Market organisation

(c) Niche strategy

(d) Post-Purchase behaviour

(e) Brand equity

(f) Non-price competition.

SECTION B — (3 15 = 45 marks)

Answer any THREE of the following.

2. How do you resolve channel conflict decisions?

3. What are the tools employed in sales promotion?

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4. State the steps involved in the marketing research

logically.

5. Examine the role of marketing in the service

sector.

6. Describe the social pressures on marketing.

7. Explain the influence of psychological factors on

consumer behaviour.

SECTION C — (15 marks)

(Compulsory)

8. Analyse the following case and answer the

questions given at the end :

Business Today, September 15, 2002 issue

reported that, Gloom was the prevailing theme at

the press conference called by the Cellular

Operators Association of India on August 19, 2002.

All the suits of the stage with the exception of

MTNL's J.M. Mishra – reeled of numbers and

factoids painting an extremely dismal picture of

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the sector. It was left to Bharati Enterprises CEO,

Sunil Mittal, to remind his brethren that the

purpose of the meet was to celebrate the 8 million

subscriber milestone.

Mittal's Bharati Televentures is a listed company

a rarity among Indian Telcos and that may

explain his reluctance to admit that the sector is

in the throes of crisis. A little prodding, and he

confesses that “on an accumulated basis, on

cellular service(s) company has positive cash flow”.

The Numbers paint a bleak picture : Telcos

invested a close to $ 6 Billion (Rs. 29,400 crores) in

51 cellular networks to which none has yet some

have been around 7 years now — become self

financing. The sectors accumulated losses have

increased from Rs. 6929 crores in 2000-01 to

Rs. 7719 crores in 2001-02 and the losses are

expected to increase by an additional Rs. 1000

crores this year. Two Big Players Idea and Bharati

have tooted up losses of Rs. 212 crores and Rs. 140

crores. Hutchison Telecom Chief Asim Ghosh says,

“The entire industry is profit-negative and cash

flow-negative today”.

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Questions :

(a) What are the reasons for mounting losses in cellular sector in India?

(b) If you were the marketing manager of Bharati Enterprises, what are the strategies you propose to make the organisational come out of continuous losses?

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