MBA40112 MBA Degree Examinations - April, 2015 (Regulation 2012-13) (Examination at the end of IV Semester)

Paper-I: Knowledge and Technology Management Time : Three hours

Maximum Marks: 70

SECTION – A Answer any FIVE of the following questions

(5x3=15)

1. Write short notes on: a) Difficulties in Knowledge Management b) Types of Knowledge c) Six C’s of Knowledge Management d) Knowledge Management Strategy e) Training and Development f) Reward Systems g) Technology forecasting h) Technology acquisition SECTION-B Answer ALL questions

(5x8=40)

2. a) What is the significance of Knowledge Management? Explain Knowledge Management systems life cycle. (OR) b) What is the need for Knowledge Sharing? Also explain the process of managing and sharing knowledge. 3. a) Explain briefly the drivers of Knowledge Management. (OR) b) Discuss the critical success factors in Knowledge Management implementation. 4. a) Who is a Knowledge worker? Explain how knowledge worker is managed. (OR) b) Explain the interface between HRM and Knowledge Management. 5. a) What are the different types of Technology? Explain how Technology is used as a tool for competitive advantage. (OR) b) What is the need for Management of Technology? Discuss the impact of technology on society and business. 6. a) What do you understand by Technology strategy? Explain different types and key principles. (OR) b) Discuss various issues involved in technology transfer management.

SECTION – C

(1x15=15)

7. Case Study (Compulsory) Precision Tool Engineering is a company producing machinery and machine tools and some other related engineering products for specialist production companies. It employs a total workforce of 400, two-thirds of which work in the production department. Contd ..

:: 2 :: In late 1989, the management decided to introduce a TQM scheme to increase efficiency and quality control. Throughout the 1980s, more flexible arrangements had been introduced together with a breakdown of old work demarcation lines. Machines were now built by flexible teams of workers employing different skills (fitters, electricians, hydraulic engineers, etc.). In 1989, the first moves towards TQM were made with the introduction of BS 5750. Workers were asked to inspect the quality of their work which resulted in reduction of the need for specialist inspectors and both time and money were saved. Agreements were negotiated with the union for extra pay as a result of the increase in worker responsibility. In early 1990, the management decided to introduce a full—blown TQM scheme on the basis of the success with the introduction of BS 5750. Problem solving groups were formed based on work groups with voluntary participation. (Group leaders, who were mainly supervisors, were trained in how to run a group and in problem-solving techniques. The aims of the groups were to: 1. Identify problems inside their work area. 2. Propose solutions. 3. Identify problems outside their work area. 4. Refer external problems to a review team. The review team was mainly made up of managers with one representative from the each group, usually the group leader. The unions were lukewarm to the scheme and some shop stewards were directly against it. With the space of nine months, the TQM scheme was reviewed and the senior management came to the conclusion that it had not lived up to expectations, and some board members called it a failure. Some areas they had identified were that team leaders had felt uncomfortable in their roles and there had been considerable skepticism from some groups of workers. Questions: 1. Why do you think that the BS 5750 scheme was successful and that the TQM scheme failed in Precision Tool Engineering? 2. What suggestions would you make to a similar company who were thinking of introducing TQM in order to make it a success?

(MBA40112)

MBA40210 MBA Degree Examinations - April, 2015 (Regulation 2010-11) (Examination at the end of IV Semester)

Paper-II: International Business Time : Three hours

Answer all questions

Maximum Marks: 70

(5x14=70)

1) Give an account of the nature and scope of International Business. (OR) Enumerate the features of human cultural environment on an international firm, How does it influence the trade and investment pattern of a nation. 2) How does an international firm determine its partner’s independence, dependence and inter-dependence? (OR) Give an explanation of the various Tariff and Non-tariff Barriers. 3) What is global competition and how does a firm become competitive? What are the different aspects of global competition? (OR) What do you understand by globalization of social responsibility? Explain. 4) What are the various modes of entry into foreign markets? (OR) Describe in detail the various International business negotiations. 5) Briefly explain how growth in international business has taken place across the globe. (OR) Explain the nature of world trade in recent times including the trends in foreign investment.

MBA40212 MBA Degree Examinations - April, 2015 (Regulation 2012-13) (Examination at the end of IV Semester)

Paper-II: International Business Time : Three hours

Maximum Marks: 70

Section-A Answer any FIVE of the following

(5x3=15)

Section-B Answer all questions

(5x8=40)

1) a) Globalization b) Joint Ventures c) UNIDO d) IPR e) Export Finance f) Foreign Trade g) Country Risk Analysis h) Global Outsourcing

2. a) Define International Business environment. What are the various types of environment? (OR) b) What do you mean by globalization? Enumerate the stages of globalization for a firm. 3. a) How does international firm determine its trading partner’s dependence, independence and interdependence? (OR) b) Give an explanation of the various Tariff and Non-tariff Barriers for an international firm. 4. a) Outline the role of World Bank in international business. (OR) b) Discuss the current EXIM policy and its implications. 5. a) Narrate the advantages and disadvantages of any three modes of foreign entry for a firm. (OR) b) Describe India’s competitive advantage in the global textile industry. 6. a) How significant are social responsibilities and ethics for an international firm? (OR) b) Write about accounting implications of currency transportation in international trade. Section-C

(1x15=15)

7. Case Study (Compulsory) If not for Hong Kong, Sonya Madden believes she could never have made the quantum leap from investment banker to international fashion designer. Basing her business close to the supplies enabled the celebrated Canadian accessories designer to produce small runs — enhancing her eponymous brand’s exclusivity — and provide the fickle world of fashion with a fast turnaround. Famous for her luxurious, cashmere cardi-wraps that are now sold internationally, Ms. Madden says Hong Kong’s favourable business environment is another reason why the city helps turn entrepreneurial dreams into reality. Contd ..

:: 2 :: Ending up as an investment banker, Ms. Madden spent seven years working in London, Hong Kong and New York before realising design was her passion. She left banking in 2000, returned to Hong Kong, and after taking some design classes set up her own business. Close to the source ‘I’d always loved Hong Kong, but the decision to base my business here was taken for much more pragmatic and practical reasons,’ Ms. Madden explained. ‘It made sense to be close to so many manufacturers and suppliers, and I’d also made some strong connections with people I knew would support me.’ ‘The wonderful thing about Hong Kong is that it’s next to China, the factory of the world. All of the major manufacturers have offices in Hong Kong, and there is no other place in the world where you would be able to source, for example, yarn from Italy, fur from Canada, and beads from India, all in one day.’ ‘The other advantage is access to factories. I am only half a day away from my factory (in the Chinese mainland) which is important in the fashion business, where lead times are shorter and on-time delivery critical.’ ‘I’m also in Hong Kong for the same reason so many large corporates are headquartered here: the legal, technical, financial and administrative infrastructure gives one a confidence that you wouldn’t get in any other Asian city. The favourable tax environment is a huge plus, and it’s very conducive to doing business in general. Any time I ask for support, the knee-jerk reaction is yes, I can do that; yes, we want to do business with you. For a start-up, this is incredibly compelling. A lot of other, more mature parts of the world don’t have that eagerness.’ Celebrity Clientele Within four years of starting her business, Sonya Madden’s wraps were being sold in all Kate Spade boutiques, and US department stores Saks Fifth Avenue, Henri Bendel and Nieman Marcus. Hollywood celebrities picked up on the trend, with Catherine Zeta-Jones reported to own a dozen of the brand’s luxurious, made-in-China cardi-wraps. And it’s all largely through word of mouth. Having reintroduced the wrap as fashion’s must have, Ms. Madden continues to build her brand and is planning offices in New York and Los Angeles by the end of 2007. She believes the wrap is here to stay. ‘When I was first designing, I called my wraps security blankets for adults,’ said Ms. Madden, who was inspired by the pure pleasure of cocooning oneself in luxurious yarns. ‘With today’s lifestyles, versatility is so important and the beauty of the wrap is that you can wear it during the day, evening or weekend. A wrap gives the ability to accessorize an outfit in a way you can’t with a coat or jacket.’ Question: 1. Evaluate Sonya Madden’s decision to locate her business close to where she has her products produced.

(MBA40212)

MBA403M12 MBA Degree Examinations - April, 2015 (Regulation 2012-13) (Examination at the end of IV Semester)

Paper-III: Advertising Management Time : Three hours

Maximum Marks: 70

Section-A Answer any FIVE of the following

(5x3=15)

Section-B Answer all questions

(5x8=40)

1) a) Advertising b) Copy testing c) Emotional appeal d) DAGMAR e) Hierarchy of Effects f) Creative Strategy g) Transit media h) Ad Copy elements

2. a) What is Advertising Management? Outline the various types of advertising. (OR) b) Give an account of the processes and functions of an advertising agency. 3. a) What are the broad objectives of advertising? What are the problems encountered in objective setting of an advertising campaign? (OR) b) Enumerate the various methods of advertising budgets. Also mention the advantages and disadvantages of each method. 4. a) Elucidate the various kinds of appeals that are used in ad campaigns with appropriate examples. (OR) b) How is advertising message designed? What are its components? Outline briefly the role of a copy writer. 5. a) Discuss media mix strategies by an example of an FMCG company. (OR) b) Compare the attributes of print media vis-à-vis electronic media. 6. a) Describe the various stages of advertising evaluation and testing. (OR) b) Discuss the PACT in detail.

Section-C

(1x15=15)

7. Case Study (Compulsory) Every once in awhile, a product or a company’s name becomes so famous it gets added to the national vocabulary. A generation ago, employees started making “xerox”copies. Before that, people started taking “aspirins” instead of “pain medicine” and covering wounds with “band aids” rather than “adhesive strips”. Today, it is common to hear someone say she “googled” something. Contd ..

:: 2 :: The basic Google business model organizes a vast amount of information into a system that can be easily accessed using the Web. Google provides information to users for free. The company sells advertising that is linked to the the free information. One primary advantage held by Google is that the firm has been able to expand indexing and retrieval searches into nearly 100 languages. Using tools from Basis Technology, Google offers searches in Asian languages as well as other challenging languages. The net result is a global company with a worldwide reach. One industry leader commented that Google has created almost a “new world order” in advertising. Google’s management team remains acutely aware of competitors. Microsoft and Yahoo! are two main search engine providers that could affect Google’s share. New competitors and emerge every day. In June 2009, Microsoft introduced the search engine Bing in an effort to challenge Google. Bing replaced Microsoft’s Live Search engine. It was started after more than a year of research showing that although users said they were generally satisfied with Web search services there were times when searches became too difficult. In the beginning, Bing received praise from many influential reviewers, increasing the possibility that it could shake up the dynamics of the search business, which is worth $12 billion in the United States alone. In July, 2009 Microsoft and Yahoo! announced a partnership in Internet search and advertising intended to build on introduction of Bing and close the gap with Google. By 2012 Google still held 65 percent of the search market, compared with 15 percent for Bing. Both competitors made inroads against Yahoo! Bing’s competition with Google became more direct when the company began running television commercials designed to indirectly hint that Google searches were too complicated, turning users into data-spewing zombies. Bing was offered as the easy-to-use alternative. Then, Microsoft CEO Steve Ballmer allegedly offered to pay Rupert Murdoch’s News Corp. to remove all its content from Google. This would include content from The Wall Street Journal, the New York Post, and The Times of London. The idea was that if Web surfers could not find News Corp. content when they, did a Google search, they would be more inclined to use Bing. There were reports that Microsoft offered the same deal to other publishers. News providers have long been frustrated that stories and materials they create are posted without the news company receiving any compensation, whereas Google and Bing are able to sell advertising beside the stories. Google responded by saying any organization was free to pull content at anytime, apparently unfazed by Bing and Microsoft’s effort. Google’s power in the marketplace makes company leaders optimistic about the future. Time will tell if Bing can make stronger inroads on what is practically a cultural icon. 1. What tactics should Microsoft and Bing use to gain market share? 2. As an advertiser, does Bing hold an advantage due to lower clutter on the site, or does Google’s wider reach offset that advantage? 3. Which site would facilitate a faster search engine optimization effort? Why?

(MBA403M12)

MBA404M12 MBA Degree Examinations - April, 2015 (Regulation 2012-13) (Examination at the end of IV Semester)

Paper-IV: Sales and Distribution Management Time : Three Hours

Max. Marks: 70

SECTION-A Answer any FIVE of the following questions:

(5x3=15)

1. a) Sales Management b) Marketing Mix c) Sales presentation d) Sales Audit e) Marketing channels f) Wholesaling g) Market Logistics h) Sales Budget SECTION-B Answer ALL questions

(5x8=40)

2. a) What is the role of sales element in the Marketing Mix of a company? (OR) b) Explain briefly how selling through different media is possible? 3. a) What are the different modes of sales presentation and design? (OR) b) Give an account of the recruitment and selection process of sales personnel. 4. a) Enumerate the various activities in sales force management. (OR) b) How are sales programmes evaluated? Explain. 5. a) Outline the role of distribution in marketing mix. What do you understand by channel management? (OR) b) What are channel intermediaries? What are their various types? 6. a) How does an organization arrive at market logistics decisions for distribution channels? Discuss. (OR) b) What is the role of information system in distribution channel management? SECTION-C

(1x15=15)

7. Case study – Compulsory Mr.Dillip Gangadharan is the Vice President (Sales) of MRF Tyre Company, who is negotiating with Mr.Chandrapal Singh, the Vice President (Purchase) of Maruti Udyog Limited, the leading car manufacturer in India, for a contract to deliver tyres for the new car line called ‘Alto’ in the Indian market. Contd ..

:: 2 :: Mr Chandrapal Singh: My position is that we are not prepared to pay more than 1200INR per tyre which has to be steel belted, radial with a warranty of 25,000 kilometers. What are you willing to offer? Mr Dillip Gangadharan: We are prepared to deliver such tyres at 1600 INR per tyre. That’s the rock bottom we can go. We are barely making any profit at this level. Mr Chandrapal Singh: Come on. Why are you trying to fool me? I am in this profession for quite some time. You people have a reputation for sticking it to your customers. I know your costs cannot be more than 600 INR per tyre. We are thinking of placing an order for 250,000 tyres for our new model of ‘Alto’ this year. Let us skip the preliminaries and get straight down to the lowest that you can offer. You should also know that other tyre companies are also trying to do business with us and many of them will come down to our price level by merely looking at the size of the order. Mr Dillip Gangadharan: Our price is 1600INR. Given the quality of our product, we feel that we don’t have to negotiate with prices. The product can sell itself. Mr Chandrachud Singh: What you mean is that you really want to stick it to your large original equipment manufactures. Even with the volume we are offering you, you seem to be too greedy. If you really want our business, you should try to do business with us. This take it or leave it attitude is going to backfire for your business Mr Dillip Gangadharan: It’s OK. The company does not allow any of the salespeople to play with the prices for any customers. Mr Chandrachud Singh: What do you mean by this? With the kind of volume we are offering, you are not ready to come down on prices? Mr Dillip Gangadharan: That’s right. My company has got the best rated steel radial tyre in the industry and we cannot afford to negotiate on price. Mr Chandrachud Singh: All right gentleman, you are missing an opportunity here for some big business; if this is the way you do business, then I don’t find a day when you will be able to do business with us, at least as long as I am there in this company? Questions 1. Is this a good illustration of how negotiations should take place? What kind of bargaining tactics are used by both the parties in this case? 2. What should Mr Dillip Gangadharan have done to close the sale? Suggest a negotiation strategy for him.

(MBA404M12)

MBA405M12 MBA Degree Examinations - April, 2015 (Regulation 2012-13) (Examination at the end of IV Semester)

Paper-V: Retail Management Time : Three hours

Maximum Marks: 70

SECTION-A Answer any FIVE of the following questions

(5x3=15)

1. Write short notes on: a) Nature of Retailing b) Retail organization structures c) Non-store based retailing d) Retail market strategy e) Retail location-importance f) Methods of merchandise procurement g) Retail advertising h) Complaint handling SECTION – B Answer all Questions

(5x8=40)

2. a) Explain the status of Indian Retailing environment after liberalization. (or) b) How are retail customers different from consumers? Also briefly explain the changing trends of consumerism and consumer buying behavior. 3. a) What is the importance of retail location? Explain different theories of retail location. (or) b) What is the need for retail market strategy? How is it useful in developing a sustainable competitive advantage? 4. a) Explain different policies and practices of HRM in Retail Management. (or) b) What is the merchandise planning? Explain different methods of merchandise procurement. 5. a) What is retail budget? Explain different methods of budgeting. (or) b) What is retail promotion mix? What are the components of retail promotion mix? 6. a) What is the need for customer relationship management (CRM)? Explain briefly the CRM measurement. (or) b) What is the retail customer service? Discuss the various ways of delivering retail customer service.

SECTION-C CASE STUDY (Compulsory)

(15 Marks)

Wal-Mart (www.walmart.com) only opened its first foreign store in Mexico in 1991. Yet, by 2002, it had more than 1,200 units located outside the United States. These units accounted for more than $35 billion in annual sales. During 2002 alone, Wal-Mart planned to spend about $2 billion on its foreign expansion for both renovating existing stores and opening 130 new ones. Contd ..

:: 2 :: Although Wal-Mart is the number-one retailer in terms of sales and market share in the United States, Canada, and Mexico—and it is growing at a rapid pace in Asia—it still has relatively low market penetration in Europe and South America. According to the president of Wal-Mart International, China is “the only overseas market where we replicate the scale of our U.S. operations. China offers the potential for 3,000 Wal-Marts by 2028, up from only 19 in 2002.” And while French-owned Carrefour (www.carrefour.com) has beaten Wal-Mart to the Chinese market, Wal-Mart plans to catch up by aggressively adding new stores. The presence of Wal-Mart and Carrefour is having a big effect on China’s food distribution system, which traditionally had a great deal of spoilage. As the spokesperson for a leading consulting firm notes, “Carrefour and Wal-Mart are so powerful that if you’re a supplier, you can’t afford to lose them. When they say they want a frozen product on Wednesday, then that’s when it arrives. And it is chilled, not swimming in water. If you don’t follow their standards, they will look for others who will ” In Japan, Wal-Mart decided to use a local firm, Seiyu, to “run the business for us” after analyzing the difficulties such firms as OfficeMax (www.officemax.com), Costco (www.costco.com), and Carrefour had in the Japanese market. Wal-Mart plans to streamline Seiyu’s operations and supply chain to position Wal-Mart as the price leader. In Europe, Wal-Mart has had operations in only two countries: Great Britain and Germany. In 1999, it acquired Asda (www.asda.co.uk), a British chain. Even though Asda’s operations were similar to Wal-Mart’s, Wal-Mart Stores’ foreign presence was quickly noted by competitors and consumers alike. Wal-Mart Stores’ British sales are still below its major competitors, Tesco (www.tesco.com) and Sainsbury (www.j-sainsbury.com), while Asda has been growing at two times the market average. In 1997, Wal-Mart acquired two German chains, Wertkauf and Interspar (wwwjnterspar.com). A major difficulty with the German marketplace is its tough zoning laws. As a result, Wal-Mart was only able to build two new stores in Germany in 2001. Enlarging a store in Germany is also quite difficult and the cost of renovations is five times that of the United States. Several estimates by retail analysts suggest that Wal-Mart is losing $100 million annually in Germany. These analysts estimate that Wal-Mart must triple its market share from 2 percent to 6 percent and double its store count in order to get its suppliers to reduce their prices. Wal-Mart would prefer operating large stores in all of its markets. Nonetheless, it has developed strategies to adapt to foreign market conditions. In Korea, its stores are typically seven stories high—three for shopping and four for parking. And in Mexico, Wal- Mart has developed five different formats, ranging from upscale groceries catering to the upper middle class and wealthy to the Bodega Aurrera chain for low-income consumers. Questions 1. Describe the pros and cons of foreign expansion for Wal-Mart versus building additional locations in the United States. 2. Discuss the difficulties in conducting a trading-area analysis in a foreign country such as Mexico. 3. Describe the difficulties in site selection in a foreign country such as Mexico. 4. What are the pros and cons of Wal-Mart’s use of five different formats in Mexico from a site location perspective?

(MBA405M12)

MBA403F12 MBA Degree Examinations - April, 2015 (Regulation 2012-13) (Examination at the end of IV Semester)

Paper-VI: Banking and Insurance Management Time : Three hours

Maximum Marks: 70

Section A — (5 x 3 = 15 marks) Answer any FIVE of the following questions 1. Write Short notes on : a) Functions of banks b) Online banking c) Principle of insurable interest

d) Micro insurance e) Credit management f) Fund based banking products

g) Kinds of insurance h) Financial Institutions

Section B — (5 x 8 = 40 marks) Answer ALL questions 2. (a) What is a commercial bank? Explain the role of commercial banking in India. (or) (b) Explain the various types of commercial banking services offered by banks. 3. (a) What do you understand by risk management? Explain the importance of risk management. (or) (b) Describe the main provisions of the RBI Act, 1934. 4. (a) Discuss the various e-banking services offered by a bank. (or) (b) Define Banking Ombudsman? Explain the role of Banking Ombudsman in customer care. 5. (a) Describe some of the significant landmarks in the history of insurance sector in India. (or) (b) Explain the concept of Micro-insurance and discuss about its models. 6. (a) Explain the various types of re-insurance. (or) (b) Define the term banc assurance? Discuss the pre-requisites for the successful execution of banc assurance. Section C —(1 x 15 = 15 marks) Case Study (compulsory) Mr John was a young, single man with some learning difficulties. He lived independently but relied on his family and his community support worker, MrsYamini, for help in managing his finances. Mr John had only been in work for a few months - as a warehouse assistant - when the factory that employed him closed down. He realised there was no real likelihood of finding immediate employment, so he decided to start his own business as a handyman. He approached his bank and asked for a loan in order to buy a small van and some tools. As his literacy skills were limited, Mr John had not prepared any kind of business plan. However, the lending officer told him this would not be necessary and that the computer showed he was “good for the credit”. So the bank gave Mr John Rs.4,00,000 as a personal loan. Excited by the prospect of his new venture, Mr John went ahead and bought a small second-hand van and some tools. Unfortunately, however, he was unable to find any work as a handyman. His current account quickly became overdrawn and he was unable to meet the loan repayments. Without any prior discussion with Mr John, the bank passed his details to its debt recovery section, who in due course wrote to him. Extremely alarmed by the tone and content of this letter, Mr John panicked. Within a couple of days he had managed to sell his van - at a significant loss - to try and pay back some of what he owed. Questions:

1. Discuss the issues in the case. 2. Is Mr. John right in going for a personal loan? 3. Is it the problem of the lender or the borrower?

MBA403H12 MBA Degree Examinations - April, 2015 (Regulation 2012-13) (Examination at the end of IV Semester)

Paper-VI: Human Resource Development Time : Three hours

Maximum Marks: 70

SECTION A — (5 x 3 = 15 marks) Answer any FIVE of the following questions 1. Write short notes on (a) Define Learning (b) Effectiveness of Career Planning (c) Organisational Development (d) Outsourcing

(e) HRD process (f) Strategic Organisation - Concept (g) HRD scorecard (h) TQM

SECTION B - (5 x 8 = 40 marks) Answer ALL Questions 2. (a) Define Human Resource Development. What is its importance? Also discuss briefly about HRD climate. (OR) (b) Explain HRD approaches for coping with organizational change. 3. (a) Define Performance Appraisal. Explain different methods of1 Performance Appraisal. (OR) (b) Explain the process of Organizational Development. Also state the interventions. 4. (a) What is the need for training? Explain how training methods are evaluated. (OR) (b) What do you understand by Management Development? Explain its importance and scope. 5. (a) Discuss the HRD experiences in Indian Public Sector Industries. (OR) (b) Discuss the Global Developments and implications for HRD in India. 6. (a) What do you understand by HRD audit? Explain briefly the Methodology involved. (OR) (b) What are the HRD audit objectives? Discuss the current status of HRD audit in India. SECTION C - (1 x 15 = 15 marks) Case Study (Compulsory) The financial institution has just decided to open a branch at Bhimunipatnam, an exclusive resort located about 20 miles from Waltair, a large city. There is no bank at present in Bhimunipatnam. The financial institution is anxious to determine the appropriate wage for clerical staff it expects to hire. Clerks in the city office at Waltair receive a starting wage of Rs 1000 per month. As a matter of company policy these wage rates have been set at mid point of the range for financial institutions in Waltair. A survey at local business at Bhimunipatnam, indicate that the ‘going rate’ for qualified clerical personnel varies between Rs 1200-1400 a month. This higher rate in Bhimunipatnam may be attributed, in part to the substantially higher cost of living in this resort town, the limited number of young people seeking employment and the fact that there are no other financial institutions in Bhimunipatnam. Banks in Waltair have traditionally paid lower wages than other businesses, on the ground that banks offer better working conditions and higher prestige. Questions: 1. What amount, the financial institutions should fix as its hiring rate for clerical personnel? 2. What factors should be considered in making the decision? ***

MBA404F12 MBA Degree Examinations - April, 2015 (Regulation 2012-13) (Examination at the end of IV Semester)

Paper-VII: Financial Derivatives Time : Three hours

Maximum Marks: 70

Section A - (5 x 3 = 15 marks) Answer any FIVE of the following questions 1. Write Short notes on: (a) Put options (b) Warrants (c) Yield curve (d) Interest rate Swaps

(e) Stock index (f) Futures (g) Margining system (h) Derivative markets Section B — (5 x 8 =40 marks) Answer ALL questions

2. (a) Discuss about the different types of traders in derivatives market. (or) (b) Examine the reasons for the growth of financial derivatives in India. 3. (a) Write a note on role of clearing house with special emphasis upon ‘delivery mechanism’ in futures market. (or) (b) Discuss the statement ‘The basic function of futures contract is hedging’. 4. (a) What is an option strategy? Explain the significance of choosing a right option strategy. (or) (b) Write a detailed note on basic objectives and principles of option trading. 5. (a) Discuss the Black-Scholes option pricing model with suitable examples. (or) (b)Write a note on : i) Option Greeks ii) Volatility 6. (a) What is a currency swap and how it is different from an interest rate swap? (or) (b) How do you evaluate the price quote for a swap? Section C - (1 x 15 = 15 marks) Case Study (compulsory) From the following data, calculate the value of a call option: Style of option = Current price of the stock = Option period = Time intervals for change at each = Up movement factor (U) = Down movement factors (d) = Exercise interest rate =

European Rs.600 6 months 3 months 1.1 0.9 12% p.a.

Draw a two-step binomial tree, show the stock prices at each node and calculate the option price.

MBA404H12 MBA Degree Examinations - April, 2015 (Regulation 2012-13) (Examination at the end of IV Semester)

Paper-VII: Leadership Time : Three hours

Maximum Marks: 70

SECTION A — (5 x 3 = 15 marks) Answer any FIVE of the following questions 1. Write short notes on (a) Thought leadership (b) Leadership Attitudes (c) Leadership and Motivation (d) Leadership Grid

(e) Self Managed Teams (f) Types of Teams (g) Managing conflict (h) Succession Policy SECTION B - (5 x 8 = 40 marks) Answer ALL Questions

2. (a) What do you mean by Personality Traits? Explain the traits of effective leaders. (OR) (b) What is ethical leadership? Explain achievement Motivation theory. 3. (a) What are leadership styles? Explain the relationship between the leadership behavior and styles. (OR) (b) Explain Normative Leadership Theory. 4. (a) What are the skills required for effective Team meetings? Also explain ‘Ginnet’s Team Effectiveness Leadership Model’ (OR) (b) Explain about Stewardship and Servant Leadership. Also state how it is different to charismatic leadership. 5. (a) Why Leader-follower relations are important? Discuss the evolution of ‘Dyadic Theory’ (OR) (b) What do you understand by Change Management? Explain how leadership is used in Change Management. 6. (a) Explain briefly different approaches of leadership development. (OR) (b) Explain the process of organizing leadership development programmes. SECTION C - (1 x 15 = 15 marks) Case Study (Compulsory) Prakash hails from a hardworking immigrant family. Right from his childhood he wanted to achieve something and acquire power for himself. Unfortunately, he could only, a low-paid job in the assembly line in a large manufacturing firm. It is a charmless job having no promotional opportunities. Since he had to support a large family, he needed a well-paid job and all his efforts in this direction had gone waste. To blow off his steam and to relieve himself from worldly woes, he started living in a “fools paradise” and spent most of his days in day- dreaming. Not surprisingly, he fell a prey to drinking and other vices. After exhausting his, meagre financial resources, he would get depressed and start worrying about his family. It has been a vicious circle and he wants to come out of it. Unable to bear with this miserable situation, one fine morning, he wanted to seek advice and counsel from his supervisor. But since his relationship with his supervisor is not-too intimate, he sought help from his union leader. The union leader listened to Prakash’s woes patiently. He told Prakash in a sympathetic tone: “There is no use working in this company. We have innumerable problems, and not a single problem is solved by rnanagement so far. The work’ng conditions are pathetic. Our salary is too low. And let’s not talk about our benefit plans. After our contract finishes let’s unite together and fight with management for better sálary and working conditions”. Questions:  Analyse the nature of role conflict experienced by Prakash in this case.  What type of conflict resolution strategy is the union leader, suggesting in this case?  How do you advice Mr. Prakash? ***

MBA405F12 MBA Degree Examinations - April, 2015 (Regulation 2012-13) (Examination at the end of IV Semester)

Paper-VIII: International Financial Management Time : Three hours

Maximum Marks: 70

Section A - (5 x 3 = 15 marks) Answer any FIVE of the following questions 1. Write Short notes on: (a) Bretton Woods system (b) Exchange Rate (c) Gold standard (d) Interest Rate Risk

(e) Capital Structure (f) Types of International finance (g) Bilateral Treaties (h) Dividend Policy Section B — (5 x 8 =40 marks) Answer ALL questions

2. (a) Discuss the complexities and issues in Financial decisions of a multinational firm. (or) (b) What are the objectives of IFM? Differentiate between Financial Management and International Financial Management. 3. (a) Explain International Parity conditions relating to purchasing power, forward rate and interest rate. (or) (b) Explain briefly various aspects of global financial markets. 4. (a) What do you mean by Management of exposure? Explain transaction, translation and real operating exposure. (or) (b) Explain briefly the techniques of capital budgeting. 5. (a) Explain about International CAPM. Also explain how it is used for identification of optimum portolio. (or) (b)What is cost of capital? Explain how weighted average cost of capital is calculated. 6. (a) What is working capital? What are its determinants? Explain different sources of finance to a working capital. (or) (b) What is transfer pricing? Explain the mechanism of multinational transfer pricing. Section C - (1 x 15 = 15 marks) Case Study (compulsory) Calculate the weighted average cost of capital, when the capital structure shows: (a) Existing debt of $5.0 million at 10% for 6 years (tax rate is 30%) (b) New debt of $3.0 million at 8% for 10 years with a floating cost of $2.0 lakhs (c) Existing equity sharges of $7.0 million ($15 per share) EPS $4.0 growth rate of 5% and dividend pay out ratio of 50% and (d) Proposed equity share (1 lakh shares) to be sold at $15.0 with $2 lakhs floatation cost.

MBA405H12 MBA Degree Examinations - April, 2015 (Regulation 2012-13) (Examination at the end of IV Semester)

Paper-V: Strategic and Global Human Resource Management Time : Three hours

Maximum Marks: 70

SECTION A — (5 x 3 = 15 marks) Answer any FIVE of the following questions 1. Write short notes on (a) Retention strategies (b) Key Result Areas (KRA’s) (c) Downsizing (d) Cross Cultural Communication (e) HR Outsourcing (f) Business Ethics (g) Head Hunting (h) International Staffing SECTION B - (5 x 8 = 40 marks) Answer ALL Questions 2. (a) What do you mean by strategic management? Explain the process of strategic HRM. (OR) (b) Define recruitment. Discuss the various recruitment and retention strategies. 3. (a) What do you understand by learning organizations? Explain the process of creating a learning organization. (OR) (b) Define Training. Discuss the relationship between training and performance linked pay of the employee. 4. (a) What is strategy implementation? Discuss the various behavior issues in strategy implementation. (OR) (b) Define leadership. Examine leadership is a human aspect of strategy implementation. 5. (a) Explain the concept of Global HRM? Discuss the Global recruitment and selection process in International Staffing. (OR) (b) Discuss the Western and Eastern Management thoughts in the Indian Context. 6. (a) What is cross-cultural leadership? Discuss the cross-cultural and strategic HR issues in International assignments. (OR) (b) Present an overview of HRM in USA, Japan and Russia. SECTION C - (1 x 15 = 15 marks) Case Study (Compulsory) As a new member of the board of directors for a local savings and loan association, Jack Nelson was being introduced to all the employees in the home office. When he was introduced to Ruth, he was curious about her work and asked her what her machine did. Ruth replied that she really did not know what the machine was called or what it did. She explained that she had only been working there for two months. She did, however, know precisely how to operate the machine and, according to her supervisor, she was an excellent employee. Contd .. 2

:: 2 :: At one of the branch offices, the supervisor in charge spoke to Mr. Nelson quite confidentially, telling him that “something was wrong” but she didn’t know what. For one thing, she explained, employee turnover was too high, and no sooner had one employee been put on the job than another one resigned. With customers to see and loans to be made, she explained, she had little time to work with the new employees as they came and went. All branch supervisors hired their own employees without communication with the home office or other branches. When an opening developed, the supervisor tried to find a suitable employee to replace the worker who had quit. After touring the 22 branches and finding similar problems in many of them, Mr. Nelson wondered what the home office should do or what action he should take. The savings and loan firm was generally regarded as a well-run institution that had grown from 27 to 191 employees during the past eight years. The more he thought about the matter, the more puzzled Mr. Nelson became. He couldn’t quite put his finger on the problem, and he didn’t know whether or not to report his findings to the president. Questions: 1. What do you think was causing some of the problems in the savings and loan home office and branches? 2. Do you think setting up an HR unit in the main office would help? 3. What specific functions should it carry out? What HR functions would then be carried out by supervisors and other line managers?

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(MBA405H12)