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M.B.A. DEGREE EXAMINATION, MAY 2011.

Final Year

(A-Financial Management)

Paper I — SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

Time : Three hours Maximum : 75 marks

SECTION A — (3 ´ 5 = 15 marks)

Answer any THREE of the following.

1. (a) Investment opportunities.

(b) Rolling settlement.

(c) Optimum portfolio.

(d) Balanced fund.

(e) P/E ratio.

(f) Weak form of efficiency.

SECTION B — (3 ´ 15 = 45 marks)


2. Review the working of stock exchanges in India.

3. State the techniques employed while selecting a portfolio.

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4. What are the measures of evaluation of a portfolio?

5. How do you analyse risk in investment decision?

6. Explain different approaches for valuation of bonds.

7. Enumerate the charts used under technical analysis.

SECTION C — (15 marks)

8. Case study : The following table gives an analysts' expected

return on two stocks for particular market returns :

Market return Aggressive stock Defensive stock

5% (–)5% 8%

25% 40% 18%

(a) What are the betas of the two stocks? (b) If the risks free rate is 8%, what is the SML?

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M.B.A. DEGREE EXAMINATION, MAY 2011. Final Year

A – Financial Management

Paper II — MANAGEMENT OF FINANCIAL SERVICES


SECTION A — (3 × 5 = 15 marks)


1. (a) Concept of financial system. (b) Stock broker. (c) Nature of merchant banking. (d) Debt securitization. (e) Credit card. (f) Bill discounting.

SECTION B — (3 × 15 = 45 marks) Answer any THREE questions.

2. How is risk managed in financial services?

3. State the organisation of stock exchanges in India.

4. Describe the nature and scope of financial services.

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5. Classify mutual funds with examples.

6. Examine the working of housing finance institutions in India.

7. What are the pre-issue obligations of merchant banks?

SECTION C — (1 × 15 = 15 marks) (Compulsory)

8. Case study 20th Century Leasing Company Ltd., provided you

the following information and requested you to suggest whether the lease proposed feasible or not, using NPV method.

Cost of asset Rs. 20,00,000 Cost of capital is 10% Rate of depreciation 10% Economic life of the asset 10 yrs Tax rate 25% Lease rental per year Rs. 6,00,000.

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Final Year

A-Financial Management

Paper III — PROJECT MANAGEMENT




1. (a) Feasibility study

(b) Cost overruns

(c) NPV

(d) Project formulation

(e) Selection of materials handling equipment

(f) Project idea.

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SECTION B — (3 × 15 = 45 marks)


2. Discuss the conduct of technical analysis.

3. State the phases in the formulation of Project report.

4. Describe the significance of economic analysis in project management.

5. What are the sources of financing projects in India?

6. Describe the management of transition from project to operations.

7. Elucidate the uses of management information system in the implementation of Project.


Compulsory

8. Case study Draw a network from the following activities and

find the Critical path. Also Calculate the earliest time and latest time of each node and explain the nature of the slack of the nodes.

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Activity immediate predecessor

Duration (Days)

A – 4 B – 7 C – 6 D A.B 5 E A.B 7 F C.D.E. 6 G C.D.E. 5

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M.B.A. DEGREE EXAMINATION, MAY 2011

Final Year

(B-Marketing Management)

Paper I — SALES AND ADVERTISING MANAGEMENT


SECTION A – (3 × 5 = 15 marks)


1. (a) Sales quota

(b) Sales force

(c) Personal selling

(d) Advertising copy

(e) Advertising agency

(f) Selling skills

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SECTION B – (3 × 15 = 45 marks) Answer any THREE of the following.

2. Explain the relationship between sales and distribution management.

3. Elucidate the techniques employed while selecting salesmen.

4. What are the different methods of preparing sales budget?

5. How do you evaluate the effectiveness of advertising?

6. State the considerations in the selection of advertising media.

7. Describe the nature and significance of marketing communication process.

SECTION C – (15 marks)

8. Case study

Revlon-the cosmetic giant in the West created a breakthrough in advertising by featuring a Revlon girl. Cindy Crawford, the well-known super-model, is now the Revlon girl. The face for many years was of a model, Lauren Hutton. In 1997, they created a new campaign titles ‘‘The Most

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Unforgettable Women in the world’’. Renowned beauties like Imam were featured with Jerry Hall.

Lakme in India has also featured versatile as well as saleable faces-Yasmin (Miss India 2006), Purnima Dixit, Maureen Keelan (now Wadia) Lakme's search for a model gave them a sophisticated face of Shyamolie Verma in 1991 Shyamolie became a corporate model for all their products for three years. Then followed an assortment of faces, some known, some unknown. (Juhi Jessica, Sherry Mehrhomji). However, none of these faces could take in the whole gamut of products. Shymolie surprisingly has surpassed all her successors. Once again the search for a Lakme girl is on. Lakme Lever never took an unknown face. Besides, Lakme as a brand is bigger than the face. Aishwarya Rai in 2000's was their perfect face and screen. Bipasha basu was their change in the mid 2000's. To be Lakme face today, uou don't just have to look good, you have to feel good.

Questions :

(a) What is the logic behind a Lakme girl versatile enough for the entire range of products?

(b) What is the difference between a Lux model recommending the soap and a Lakme model? ; and

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(c) What do you think are the reasons for the success of Shymolie Verma as Lakme's model for all their products for three years?

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Final Year


Paper II — MARKETING OF SERVICES




1. (a) Concept of service.

(b) Service delivery.

(c) Credit card.

(d) Marketing of cardiac case.

(e) Indmark.

(f) Logistics.



2. What are the basic issues in the marketing of services?

3. Describe the significance of branding in the marketing of financial services.

4. State the constraints in the marketing of tourism services.

5. Bring out the marketing practice of Appollo hospitals.

6. Describe the marketing approach followed by public utilities.

7. Elucidate the marketing of family planning.

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8. Case study :

Few would disagree that paying to free-fall a hundred feet from a cliff, bridge, or other tall structure could be a risky venture. The venture, of course, is bungee jumping. Adapted from ancient cliff-diving rituals, bungee jumping was popularized in the late 1980s by daredevil New Zealanders. Of the four pre-purchase components discussed in this chapter, the sport vividly illustrates the last (but not the least) of these components: risk—namely, physical risk.

How many people would be willing to hurl themselves from great heights with only beefed-up rubber bands connected to their ankles to halt the fall ? For about $ 60 (which includes a commemorative T-shirt), quite a few, as A.J. Hackett, founder of A.J. Hackett Bungy the world’s largest bungee jumping corporation, will tell you. Hackett first launched A.J. Hackett Bungy by plummeting 327 feet from Paris’s Eiffel Tower in 1987. The leap demonstrated the safety of his specially designed bungee equipment, attracted worldwide attention, and five years subsequent to the jump, spawned over $ 7.5 million in annual sales for his corporation. The company now employs over 100 people and has operations in Australia, New Zealand, Bali, France and the United States.

The sport of bungee jumping has taken on new dimensions, too, since Hackett first took the plunge. Today, thrill-seekers can choose to bungee from helicopters, leap in tandem with other jumpers, or fly like Superman by being catapulted from the ground into mid-air. One couple even choose to take their wedding vows while bungee jumping. To reduce the uncertainty and consequent risks potential bungee consumers face, A.J. Hackett Bungy emphasizes instruction and adheres to strict safety standards. Since the company was founded, over 500,000 customers have taken the plunge and no accidents have occurred, say company officials. When properly managed, says Henry van Asch, a managing director and cofounder of the company, bungee jumping “is such a good product that most people go away feeling elated with what they’ve done and can’t wait to tell other about it.” Although the company advertises in the adventure travel media, its main promotion comes through word-of-mouth says van Asch.

Questions :

(a) Examine he perceived utility of a bungee-jump purchase. Under what circumstances might such a purchase fulfil a functional, social, emotional, epistemic, or conditional value? Develop a marketing plan to appeal to the values that impact the purchase decision.

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(b) “I can say I’ve done it, and that means I don’t have to do it again,” commented one bungee jumper after he took the flying leap. Does this statement refute the notion that a satisfied customer will be a repeat customer? List various service industries that do not rely on repeat patronage.

(c) What additional strategies might A.J. Hackett Bungy employ to reduce pre-purchase risk certification branding and money-back guarantees?

(d) Examine how the components of the service encounter, such as the service environment and service personnel, might either positively or negatively affect jumpers' perceptions of their bungee purchases.

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Final Year


Paper III — RURAL MARKETING




1. (a) Message design.

(b) Distribution system.

(c) Reference group.

(d) Rural marketing research.

(e) Concept of rural marketing.

(f) Rural advertising.



2. Explain the features of rural environment.

3. What are the factors that influence rural consumer behaviour?

4. Bring out the recent trends in rural consumer behaviour.

5. Rural consumers are price conscious. Comment.

6. Suggest promotion mix to build relationship in rural marketing.

7. Explain the services rendered by participants in rural marketing.


8. Case Study (Compulsory) :

When Sri Krishna approached me for advice, I was unable to say anything with conviction and good evidence. He got an interview call letter for the position of sales manager from a reputed agrochemicals company in South India. The job involved working in rural areas to promote pesticides and related products. Sri Krishna was in the dilemma for a good reason. He had neither science background nor rural exposure.

Urekal while surfing the internet lazily, almost aimlesly, I had a surprise finding. It was the interview with Aruna Bhinge. In this interview, she talked to Sujatha Agrawal about the twists and turns on the road to success.

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The excerpts from the interview are :

“I was always interested in science and wanted to do an MS-Ph.D programme in the United States. Instead, I got married, moved from Pune and decided to do an M.Sc and then a Ph.D in Mumbai, It took me nearly five years to get my masters in science (by research). Luckily, I was working with the Maharashtra Government’s Department of Science and Technology at the time. But the research experience was quite de-motivating.

I also discovered that I did not like staying in one place, a laboratory in this instance. I believe I am analytical, an independent thinker and good at getting things done. I also like to travel and talk to people. So I decided against a career in research. My husband suggested that I do a management course if I wanted a good corporate job. I was not confident about getting through the entrance test (it was almost 10 years since I had studied formally, though I was always a topper at school). He encouraged me by saying that if I did not pass only he and I would know about it. I did get into the Narsee Monjee Institute of Management Studies. I guess I was lucky, but it also shows what determination can do. I ended up topping my class in marketing. You don’t really have to study marketing; it is logic and common sense, though my analytical ability and household experience helped enormously.

ANZ Grindlays offered me a job in corporate banking after a campus interview, It was a good break, with a fantastic salary. But I was keen on marketing products and felt a bit sad that my years of scientific experience were being wasted. To me Grindlays was a golden cage. When I got an offer from Merind I was quite happy to move on though the money was not that good. Merind was a fantastic experience and for that I must give credit to Mr. Nawshir Khurody, the company’s then Managing Director. I was involved in setting up the diagnostics division and there was a tremendous amount of learning involved. I understood how to handle different business issues; dealing with suppliers, pricing, setting up a sales force, establishing a distribution network. In five years, we launched 25 products. I left the company only because its future seemed uncertain, since the Tata Group was not looking at pharma as a core business area.

I also worked briefly with Lifescan, an American company that was launching diabetes monitors in India. But I wasn’t happy with their marketing strategy (they wanted to talk to doctors, not patients). And the scope of work was very small when compared with what I had done in Merind.

Fortunately, at that time Rallis was looking for a marketing person for agrochemicals. Though I did not know anything about the pesticides business, Mr. Vijay Rai convinced me about the job by saying that it was essentially a marketing function, of which I did have knowledge. Rallis has been an enriching experience. The marketing of pesticides involved visiting remote places, holding meetings with farmers, understanding their problems and psychology, creating marketing strategies to improve their knowledge level—it was an exciting period in my career.

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I think farmers are wonderful people. They are receptive and they believe and trust you very easily. And they value and respect you. I had been dealing with doctors previously; it was so much more refreshing to talk to farmers. I believe that farmer contact is the key to success for Rallis. The farmer wants you to, for instance, guide on the correct pesticide usage. Some of them cannot even recognize the diseases or pests harming their crops. The simply take the affected part of the plant to the dealer and he probably sells them a product that gives him, the dealer, the best returns.

Earlier our people were very dealer-oriented, but we helped change their focus towards greater interaction with farmers. You need to go to their fields to really influence them. Our farms are not like those in America, where you will see fields that stretch beyond the horizon, but not a single farmer. In India you will see a farmer every acre or two. And they don’t mind spending half an hour talking to you. We would plan farmer-contact strategies in advance, and visit the fields before and during the crop season. I think the sales force appreciated this, and the farmers found it very useful.

It is important to design literature and material that educates farmers as well as promotes products. We designed flip charts which explained, simply and clearly, the diseases and pests, how to recognize and eliminate them. We also designed material which the sales person could carry as rolled-up charts on his back along with a stand. As he travelled through the villages he would stop wherever he saw farmers working in their fields and hold meetings. It worked very well.

Now based on this, can I advice Sri Krishna to attend the interview?

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Final Year

(C-Human Resource Management)

Paper I — HUMAN RESOURCE PLANNING AND DEVELOPMENT



Answer any THREE of the following. 1. (a) Process of HR planning. (b) Supply of HR. (c) Monitoring. (d) HRD in voluntary organisations. (e) Impact of culture on HRD. (f) Task analysis.



2. Explain the techniques of forecasting demand for HR.

3. What are the motivational aspects of HRD?

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4. Review HRD in government sector.

5. Enumerate the progress of HRD in the service sector.

6. Elucidate HR planning at macro level.

7. What are the emerging trends and perspectives of HRD?


8. Case Study: Mark Colvard, a United Parcel Manager in San

Ramon, California, recently faced a difficult decision. One of his drivers asked for two weeks off to help an ailing family member. But company rules said this driver wasn't eligible. If Colvard went by the book, the driver would probably take the days off any way and be fired. On the other hand, Colvard was likely to be criticized by other drivers if he bent the rules. Colvard chose to give the driver time off. While he took some heat for the decision, he also kept a valuable employee

Had Colvard been faced with this decision six months earlier, he says he would have gone the other way. What changed his thinking was a month he spent living in McAllen, Texas. It was part of a UPS management training experience called the Community Internship Program (CIP). During his month in McAllen, Colvard built house

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for the poor, collected clothing for the Salvation Army and worked in a drug rehab centre. Colvard gives the program credit for helping him empathize with employees facing crises back home. And he says that CIP has made him a better manager. “My goal was to make the numbers, and in some cases that meant not looking at the individual but looking at the bottom line. After that one-month stay, I immediately started reaching out to people in a different way”.

CIP was established by UPS in the late 1990s to help open the eyes of the company’s Predominantly white managers to the poverty and inequality in many cities. Today, the program takes 50 of the company's most promising executive each summer and brings them to cities around the country. There they deal with a variety of problems-from transportation to housing, education, and health care. The company’s goal is to awaken these managers to challenges that many of their employees face, bridging the cultural divide that separates a white manager from an African -American driver or an upper-income suburbanite from a worker raised in the rural South.

Question : Do you think individuals can learn empathy from

something like a one-month CIP experience? –––––––––––

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Final Year

C – Human Resource Management

Paper II — MANAGING CHANGE IN ORGANISATIONS




1. (a) Planned change.

(b) Process of consultation.

(c) Cultural adaptation.

(d) Change leadership.

(e) Concept of change.

(f) Organisational dynamics.



2. Discuss the process of organisational change.

3. Suggest measures to manage resistance to change.

4. What are the interventions in organisational change?

5. Describe the evaluation of organisational change programme.

6. Critically examine work design model of organisational change.

7. Discuss manager as a change agent.


8. Case study

Danny had been thinking for quite some time now that he should put some of the management principles he had been reading about into practice in his department. That night, he finally decided to stay late and work on a job enrichment plan for everyone on the

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staff. The way clerical services was presently set up, each employee had one specific task to do. Whether it was typing, filing, collating, processing orders, or covering the switch board; each employee was considered on an equal level, and salary differed according to seniority rather than job.

Danny hoped that by reassigning responsibility so everyone would work on all the different jabs instead of doing the same thing constantly, he would eliminate some of the tedium the staff felt, making it a happier and thus more productive group. The next day he called a meeting of his six-person staff Laura, Bert, Sal, Ellen, Toby and Morton said very little when he told them of the new work arrangement, but Danny attributed that to their surprise about the new system, he encouraged them to ask him for any help they might need and tried to win their support for the job redesign.

During the next few days, clerical services worked according to the new plan. Except for an Occasional difference of opinion about who would type what letter, the staff seemed to be adjusting very well things were working out. He was just considering writing a memo to his boss Timothy Lesser, about his job enrichment program.

When Bert, Laura, and Morton appeared at his door, “what can I do for you?” Danny asked. “We want to talk to you about this new work system, ‘‘Bert replied, “We don’t think it’s fair that you ask us to do more work but continue to pay us the same salary.” Danny hadn’t counted on this happening, but still he didn’t panic. After all, he had a reasonable explanation. “Bert, 1 thought all of you understood the purpose of the new system. You aren’t being asked to do more work-just different work. I had hoped it would help made your jobs more interesting make the day go quicker.

‘‘Are you serious?” asked Bert sarcastically. ‘What makes you think we care whether our jobs are ‘interesting’ or not? If you really want to help us, why don’t you get us more money; Money is what we happen to be interested in, Danny. “Do you three know if Sal, Ellen, and Toby feel the same way as you do about this? Danny asked. “Of course they do,” said Morton, “we all feel that this new programme of yours is just another way to get more work-out of us for the same pay. We think we should either go back to the old system or be given more money.

Danny was literally speechless. How could he tell people that they couldn’t find satisfaction in their work and they were interested only in their paychecks? The management books he’d been reading hadn’t told his what he should do about something like this. The case studies he had read always ended with more satisfied, more productive workers. Now what was he to do? Was his carefully planned job enrichment program a waste of time?

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Questions :

(a) Should Danny abandon his new plan and go back to the old work system?

(b) How could Danny have introduced the job enrichment program so that his staff would have felt more positive about the change?

(c) Can Danny now convince his staff that the enrichment program is really for its benefit? How?

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Final Year

C-Human Resource Management

Paper III — ORGANISATIONAL DYNAMICS




1. (a) Group cohesion.

(b) Role flexibility.

(c) Transmational leadership.

(d) Organisational values.

(e) Coalition formation.

(f) Partnering.



2. What are the phases in the development of group?

3. Suggest measures to reduce ambiguity and conflict.

4. Describe the process of empowerment in a concern.

5. Discuss the features of learning organisation.

6. Elucidate the issues involved in cross cultural dynamics.

7. Bring out the psychological and behavioural aspects of job stress.


8. Case study :

Columbia Broadcasting System (CBS) is one of the three major communication networks in America and is involved in television, radio, records, books and magazine publishing. All major corporate decisions are made by the board of directors which decides the fate of millions of dollars and thousands of jobs, careers and reputations. With so much at stake, corporate politics plays a very important role in making decisions. Such political play is indicated by a major top level shake-up in the company in 1986. The story of this shake down began earlier.

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In 1980, the founder and chairman of CBS, William Paley Hired Thomas Wyman as Chief Operating Officer (CEO) of the company. Three years later in 1983, because of some economic setbacks and personality conflicts, the board of directors forced Paley out of the Chairman’s position and appointed Wyman as the Chairman. This was a big blow to Paley who had started the company and had brought it up to be one of the major media leaders in the country. Unfortunately he could not anticipate the political ploy played by Wyman and his supporters in the board.

From 1983 to 1986, when the big shake up occurred, CBS went through a number of significant events affecting its operations and its future. For example, in 1985, a group of entrepreneurs showed its interest in buying the company. On that speculation, the company stock share value rose and a number of financial investors made bids for the company, Among these bidders was Ted Turner, who currently owns CNN, the news channel. Turner expressed his desire to focus purely on broadcasting business and sell off other entities such as records, books, and magazine publishing. None of these bids materialized and CBS started slipping in its stock price and doing poorly financially.

Another bidder Laurence Tisch bought about 25 per cent of the company stock in 1985 and by virtue of his portfolio, he was appointed to be a member of the board of directors.

On the fateful day of September 10, 1986, in a board meeting, William Paley, who was still a member of the board, tried unsuccessfully to remove Wyman as Chairman of the company. Wyman had appointed some board members who supported him along with some others. However, Wyman was afraid that either Tisch or some other group unfriendly to him might make an offer to CBS that would be acceptable and he might find himself in a hostile environment. With that fear in mind, Wyman played his card. He announced that Coca Cola company was willing to buy CBS.

This statement stunned the entire board as none of the members knew anything about it. The company had been fighting to remain independent since the first bid and now Wyman was asking the board to consider selling the company to Coca Cola whose leaders were known to be friendly with Wyman. Since none of the board members knew of this offer prior to the announcement by Wyman, this made them suspicious that Wyman was negotiating with Coca cola behind their backs. They could not know whether this offer was real or simply a political ploy by Wyman, since he did not bring any concrete evidence to support his claim, or any other paper suggesting a solid commitment by Coca Cola, at the meeting.

The move cost Wyman his credibility and integrity and the board became highly suspicious of his motives. Both Tisch and Paley refused to consider the offer and many other board members joined them. Wyman was forced to resign and the board asked Tisch to act as CEO and Paley returned to his position as Chairman. Soon after, CBS started selling its records, books and magazine publishing business, which interestingly enough was the focus of Ted Turner who was one of the original bidders but failed to buy the company. As a post script to this meeting, it may be noted that Tisch consolidated his position as CEO of the company and was in solid and total control of CBS within two years of the shake up on September 10, 1986.

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Questions :

(a) What type of power and politics you think both Paley and Wyman play in the final shake up at CBS?

(b) Do you think the various bids to buy CBS in 1985 were real or could they have been manipulated by vested interests to raise the stock share price of the company?

(c) Given the later information that Tisch came in firm control of the company within two years of this shake up, do you think that Tisch was playing silent politics all along.

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Final Year

(D-International Management)

Paper I — INTERNATIONAL BUSINESS




1. (a) Comparative cost theory.

(b) Multinational corporate culture.

(c) Regional cooperation.

(d) Multilateral trade agreements.

(e) Global trade.

(f) International monetary system.



2. What is the role of international trade in todays market conditions?

3. State the significance of WTO in promoting international trade.

4. Explain the HRM in MNCS.

5. Describe the theories related to cross cultural management in international business.

6. Elucidate the strategic planning adopted by MNCS.

7. How do you assess the impact of economic environment on international business?


8. Case Study : In the last decade, the Indian animation industry witnessed high growth rates largely due to

some inherent strengths and the cost advantage that it offered. The companies were adopting different business models, and experts believed that many of these companies were

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moving up the value chain. However, they felt that the Indian animation industry had a lot of bottlenecks and that Indian animation companies had some weaknesses as well. In such a scenario, the Indian animation companies had to make the right strategic moves in order to tap the full potential of the market

In November 2008, NASSCOM announced that the Indian animation industry was poised for significant growth in the coming years. The industry was expected to record US$1163 million by 2012, as against the projected US$460 million by the end of 2008, reporting a CAGR of 27 percent, according to a report jointly prepared by NASSCOM and Ernst and Young. There were several movies slated for release in 2009 including big budget movies like “Sultan-The Warrior”, Coochie Coochie Hota Hai”and a few more.

The entry of big players into the animation industry served to encourage the animation studios in India, which were hoping to get both investment and more and more original and varied content that would suit the global audience.

Experts felt that the Indian animation industry had gained significant momentum in the 1990s and the 2000s. It had witnessed the entry of many new players and many of the companies were moving up the value chain These companies were adopting different business models in their bid to take advantage of the huge scope for growth in the industry (Refer to Exhibit 111 for the business models adopted by the Indian players). While the projections for growth were good and some experts felt that the Indian animation companies had some strengths, others pointed out to weaknesses which could prevent the companies from tapping the full potential of the global animation industry. Industry experts pointed out that Indian players still accounted for only a minuscule share of the global animation industry Tuning Point was in the l990s that the Indian animation industry witnessed a boom. Ram Mohan and Sako were determined to make the animated series based on the Ramayana and so Rain Mohan traveled to Japan to make it happen.

Indian Animation Gains Momentum .The low entry barrier and the lure or easy dollars that could be earned by providing cut-price work for the animation studios from the West resulted in several small companies crowding the Indian animation industry. The Indian film industry, which is the second largest in the world, was not involved in animation in a big way. It had been using animation to a limited extent in live action movies, mostly in the form of visual effects. The Indian animation industry had been growing at exceptional rates since the late l990s, but experts felt that some serious challenges remained in the way of sustaining such growth rates. A major challenge for the industry was the skilled manpower crunch. Even though India had a large English speaking labor force, there was a dearth of readily employable skilled animators. Industry experts felt that while the growth of the animation industry in India had been phenomenal, there was an opportunity for it to grow

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even more. The low cost of production was a huge advantage. For instance, the production cost of a half-hour animated movie in India cost around US$60-70,000 while in the US, it was around US$250,000-300,000, according to NASSCOM’s analysis.

Questions : (a) Explain the favorable conditions for Indian animation industry. (b) Discuss the role of human resource in developing international business for Indian

animation industry.

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(DBUS 41)


Final Year

(D-International Management)

Paper II — INTERNATIONAL FINANCIAL MANAGEMENT

Time : Three hours Maximum : 75 marks SECTION A — (3 × 5 = 15 marks)

Answer any THREE of the following. 1. (a) Economic dimensions in international

financial management. (b) World Bank. (c) Fixed exchange rate. (d) Cash management in MNC. (e) Bond market. (f) Accounting exposure.

SECTION B — (3 × 15 = 45 marks) Answer any THREE of the following.

2. Explain finance function in MNC. 3. Discuss the working of international financial

institutions.

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4. Describe the sources of financing foreign trade.

5. State the factors that influence international financing decision.

6. Bring out the forex regulations at the international level.

7. Enumerate the techniques of forecasting exchange rate.


8. Case study :

Given the following data about the cash requirements of an MNC and its affiliates :

Location Mean Expected Standard

Cash Needs Deviation

(Rs. Crore) (Rs. Crore)

Parent 350 50

Affiliate X 75 15

Affiliate Y 120 34

Affiliate Z 95 25

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Assuming that the MNC wishes to insure that all cash needs of the parent and affiliates can be met on time.

(a) How much cash would be needed by each entity under a decentralised cash management system?

(b) How much savings would accrue from a centralised system? Show how these savings are possible.

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(DBUS 42)


Final Year

(D-INTERNATIONAL MANAGEMENT)

Paper III — INTERNATIONAL MARKETING



Answer any THREE questions.

1. (a) Concept of international marketing.

(b) International cultural environment.

(c) Letter of credit.

(d) International market research.

(e) Product development for international market.

(f) Segmentation of international market.


Answer any THREE questions.

2. Discuss the significance of international marketing.

3. Give an account of international economic environment.

4. State the factors that may be considered while selecting distribution channel for international marketing.

5. Explain the process involved in international market research.

6. Critically examine the working of FTZs.

7. What are the issues in selecting price for international marketing?


8. Case Study :

It’s “You can’t Beat the feeling” in America; “I Feel Coca-Cola” in Japan; ‘‘A Unique Sensation” in Italy; and in Chile, “The Feeling of Life.” The subtle differences in these slogans reflect Coca-Cola’s philosophy regarding global marketing; Plan globally and act locally. In other words, Coca-Cola has developed a fairly standardized marketing strategy

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and views the entire world as a single market, but it is also sensitive to local cultures. The formula has succeeded. International sales account for about 80 percent of Coca-Cola’s profits.

But Coca-Cola, like many firms, is finding growth difficult. Coca-Cola’s share of the grocery store soft drink market fell from 61.8 to 60.4 percent in 1991. One point of market share is worth about $460 million in sales. Some cola drinkers are changing to cheaper store brands like. Wal-Mart’s Sam’s American Choice. Noncolas like Dr. Pepper and Barq’s root beer have also grown in popularity, along with flavored seltzers, juice drinks, and “natural” sodas.

Changing tastes and falling market share have Coca-Cola looking to Eastern Europe for new market opportunities. Since 1989, Coca-Cola has invested $450 million in Eastern Germany. Former East Germans, who watched Coca-Cola commercials on West German television for years, are crazy about Coca-Cola. Germany is Coca-Cola’s largest market among European Community nations. Which contributed $767 million in 1991 profits, more than the United States did. And in Moscow, Coca-Cola is building a $15 million production plant and training facility. At 177 rubles a can (27 cents), not many Russians can afford it yet, but Coca-Cola has plans to stay in Russia for the long haul. They are planning to build a $50 million production plant in St. Petersburg.

Horst’ Muller, the hed of Coca-Cola’s operations in eastern Germany, encountered one major difficulty – finding sales representative. Muller needed sales representatives to handle orders, deliveries, and sales promotions, but the people of eastern Germany come from a culture where selling is a foreign idea. So he turned to his 2,100 employees, many of whom came from former. East German plants that Coca-Cola bought from the state. The friendliest technicians, factory workers, and clerks were sent to the West for sales training. The result was an enthusiastic team of sales representatives hustling for new business. Coca-Cola sold 74 million cases of soda in eastern Germany in 1991, up from zero cases the previous year.

With this level of success Coca-Cola expects to take on PepsiCo, Inc., which has, had a stronghold in most of Eastern Europe and the former Soviet Union for years, Pepsi has always been weaker than Coca-Cola in Germany, and Coca-Cola’s dominance in Western Europe (where it outsells Pepsi 6 to 1) has helped bring Coca-Cola closer to lucrative markers in Eastern Europe dominated by Pepsi. Industry analysts expert Coca-Cola to start shipping to Poland from its eastern German plants. Coca-Cola also has facilities planned for Bulgaria, Romania, Czechoslovakia and Russia.

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Success with not come easy for Coca-Cola in eastern Europe. PepsiCo, already has sixty-five bottling plants in Eastern Europe and the former Soviet Union. Awareness of the Pepsi brand is higher than of any other brand. Pepsi sold 45 million cases in the former Soviet Union alone in 1991, and has allocated $1 billion for global expansion. But as the cola wars are staged on new ground in the future, many expect Coca-Cola’s superior global resources to neutralize PepsiCo’s advantage in Eastern Europe.

Questions :

(a) Does Coca-Cola have a global marketing strategy’s?

(b) What cultural barriers did Coca-Cola encounter in eastern Germany?

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