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EXECUTIVE M.B.A. DEGREE EXAMINATION, DECEMBER 2009.

First and Second Years

Paper I — PERSPECTIVES 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) Unity of direction
(c) Strategy
(d) Decision tree analysis
(e) Authority
(f) CPM.

SECTION B — (3  15 = 45 marks)

Answer any THREE of the following.

2. What are the Universal principles of management?

3. State the merits and demerits of MBO.

4. Explain the factors that influence the delegation of authority.

5. Discuss the barriers to effective communication.

6. Describe the social responsibilities of management.

7. Discuss the application of linear programming in decision making.

SECTION C — (15 marks)

(Compulsory)

8. Case Study :
Mr. Kishore is Manager of the automobile underwriting department of the Regional office in
Visakhapatnam. Over the past two years, there has been a 43% increase in the number of policies
written in this department. This large increase in business has resulted in a problem for Mr. Kishore. A
backlog of policy applications has built up over the past few months and despite Kishore’s efforts, the
department just cannot get caught up. Kishore is working specially hard and is spending nights and
weekends working away at the backlog. After considerable think through of the problem, Kishore has
decided that one way to handle this overload and his job is to delegate some of his authority and
responsibility to his staff. His staff consists of five underwriters, twelve policy raters, secretaries and
clerks.
Kishore, however, is having difficulty in persuading his employees to show any initiations. They seem
to be satisfied with doing routine work and continually come to him looking for solutions to work
problems. Naturally, Kishore end up working out solutions for them and he is over burdened most of
the time.
Question :
(a) Diagnose the situation.
(b) How should Kishore go about delegating authority and responsibility?

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EXECUTIVE M.B.A. DEGREE EXAMINATION, DECEMBER 2009.

First and Second Year

Paper II — BUSINESS ENVIRONMENT

Time : Three hours Maximum : 75 marks

SECTION A — (3  5 = 15 marks)

Answer any THREE of the following.

1. (a) Fiscal policy.

(b) Balance of payments.
(c) Cultural environment.
(d) Structure of Indian Industry.
(e) Plan holiday.
(f) Social Justice.
SECTION B — (3  15 = 45 marks)
Answer any THREE of the following.
2. How do you assess the impact of legal environment on business?

3. Discuss the performance of public sector in the recent past.

4. Explain the causes and symptoms of industrial sickness.

5. Describe the trend in the growth of external debt of India.

6. Elucidate the strategies followed during the planning era.

7. Enumerate the features of industrial policy of 1991.

SECTION C — (15 marks)

(Compulsory)

8. Mahindra and Mahindra (M&M) is a major player in the tractor and certain segments of the
automobile market in India, after an impressive growth for a few years, the tractor market in India has
been stagnating during 98-99, 2000-01.
M&M has been selling its tractor and utility vehicles in foreign markets including USA. Some of the
components for its products have been sourced from abroad. M&M has a 100% subsidiary in USA,
Mahindra USA, with a strong network of 100 dealers. Mahindra has a five-percent market share in the
US market in the 28-30 horse power (HP) range. As a part of the strategy aimed at building a global
supply chain, Mahindra USA has signed a memorandum of understanding (Mou) with the Korean
tractor major Tong Yang, apart of the $ 2 bn Tong Yang Moolsam group, according to which
Mahindra will source high horse power (mostly 25-40 hp range) and sell them around the world under
the M&M brand name. To start with the premium range of tractors will he sold in the US.
M&M’s current tractor range is more utility oriented and lacks the aesthetic appeal that Tong Yang's
tractors, have, a must for a strong presence in the US market.
Questions :
(a) What are the advantages and disadvantages of global sourcing?
(b) What are the possible risks of the alliance? How can they be overcome/minimised?

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EXECUTIVE M.B.A. DEGREE EXAMINATION, DECEMBER 2009.

First and Second Years

Paper III — MANAGERIAL ECONOMICS

Time : Three hours Maximum : 75 marks

SECTION A — (3  5 = 15 marks)

Answer any THREE of the following.

1. (a) Demand schedule

(b) Micro economics
(c) Sunk cost
(d) Equilibrium firm
(e) Accounting profit
(f) Systematic risk.

SECTION B — (3  15 = 45 marks)

Answer any THREE of the following.

2. How is economic analysis useful for decision making?

3. Explain different methods of estimating price and income elasticity of demand.

4. Discuss the relationship between cost and output in the long run.

5. Describe the pricing strategies employed in the introductory stage.

6. Examine behavioural theory of the firm.

7. State the factors that may be considered in public investment decisions.

SECTION C — (15 marks)

(Compulsory)

8. The Manager of a company now producing at 70% of its productive capacity considers whether he can
profitably make use of his spare capacity by increasing his sales. The price of his product in the home
market is Rs. 100 per unit and his profit is 10% of turnover. Full costs are Rs. 90 per unit. Of these,
fixed costs are Rs. 30 per unit and Rs. 60 per unit are costs which vary with output mainly labour and
raw materials. The manager discovered that he can sell his product at Rs. 75 per unit in the export
market. He wanted to know whether or not he should take up the export business and therefore
referred the matter to the cost accountant of the company. The cost accountant who was a believer in
full costing made certain calculations and arrived at the following estimates :
Situation 1 – Home market : Profit Rs. 10 per unit
Situation 2 – Home market : Profit Rs. 19 per unit
Export market : Loss Rs. 6 per unit
His conclusion was that the export business is unprofitable and should not be taken.
Questions :
(a) How did the cost accountant arrive at his estimates?
(b) Do you agree with the view that export business should not be taken up?

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EXECUTIVE M.B.A. DEGREE EXAMINATION, DECEMBER 2009.

First and Second Year

Paper IV — ACCOUNTING FOR MANAGERS

Time : Three hours Maximum : 75 marks

SECTION A — (3 × 5 = 15 marks)

Answer any THREE questions.

1. (a) Going-concern postulate.

(b) Contingent liability.
(c) Forfeiture.
(d) Pro-rata allotment.
(e) Inflation accounting.
(f) Semi-variable cost.

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

2. What objectives does management seek to achieve by using accounting information?

3. Explain the significance of separate entity postulate in recording transactions and events of an entity.
4. How does a funds flow statement differ from balance sheet and income statement?
5. On 1 st January, 2007 A Ltd made an issue of 10,000 12% debentures of Rs. 100 each at Rs. 98 per
debenture. According to the terms of issue, commencing from 2008. The company should redeem 500
debentures either by purchasing them from the open market or by drawing lots at par at the company’s
option. Profit of any, an redemption is to be transfered to capital reserve. The company’s accounting
year ends on 31st December. Interest is payable on 30th June and 31st December.
During 2007, the company wrote off Rs. 5,000 from debenture discount account.
During 2008, the company purchased and cancelled the debentures as given below.
(a) Rs. 20,000 at Rs. 97 per debenture on 30th June, and
(b) Rs. 30,000 at Rs. 96 per debenture on 31st December.
Give the journal entries in the books of A Ltd. for both the years and show how these items will
appear in the financial statements for 2008, giving the corresponding figures for the previous
year.

6. ‘‘Disclosure of significant accounting policies adopted in the preparation of the financial statements
enhances the intelligibility of financial statements’’. Discuss.

7. Explain why knowledge of cost behaviour is useful information for a manager to have.

SECTION C — (15 marks)

(Compulsory)
8. Prepare a statement showing the amount of depreciation under. ‘Current Cost Accounting’ (CCA)
method for each of the four year as well as the back log depreciation for a certain item of the asset
from the following details :
Cost of machine Rs.50,000
Estimated life 4 years
Residual value Nil
Inflation factor 10% p.a.
Assume straight line method of depreciation.

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EXECUTIVE M.B.A. DEGREE EXAMINATION, DECEMBER 2009.

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 questions.

1. (a) Geometric mean.

(b) Sampling errors.
(c) Poisson distribution.
(d) Coefficient of variation.
(e) Seasonal variations.
(f) Mutually exclusively event.

SECTION B — (3  15 = 45 marks)

Answer any THREE questions.

2. State the applications of correlation analysis in managerial decision making.

3. Explain the merits and demerits of any two measures of central tendency.
4. How do you select a good sample from the universe?
5. The marginal cost function of a product is given by
C  6  10x  3x 2
The total cost of manufacturing one unit is Rs. 80. Find the total cost function and the average cost
function.
6. A normal distribution is known to have the following parameters :
Mean = 25, S.D. = 2.5 and n  1000.
Determine the heights of the ordinates of the curve at :
(a) 19.5
(b) 21.5
(c) 26.5 and
(d) 32.
7. The lines of regression of a bivariate population are
8x  10 y  66  0
40x  18 y  214

The variance of x is 9. Find

(a) The mean value of x and y .
(b) Correlation coefficient between x and y .
(c) Standard deviation of y .
 SECTION C — (15 marks)

(Compulsory)

8. The total sales of a firm selling products A and B are given by the relationships V  a  bx  cy . The
data for 3 months period is given below :
Months Volume of sales (V) (Rs.) x y
April 15,000 3 4
May 18,000 5 2
June 20,000 6 3
Using determinant method, determine the sales in the next month when it sells 8 units of x and 5
units of y . If a, b, c are all positive and the p th, qth and rth terms of a Geometric Progression (GP),
then prove that
log a p 1
log b q 1  0 .
log c r 1

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EXECUTIVE M.B.A. DEGREE EXAMINATION, DECEMBER 2009.

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. (a) Personal computer.

(b) Computer based HRM.
(c) Computer viruses.
(d) Topologies of computer networks.
(e) Machine language.
(f) LAN.

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

2. Explain the role of computers in information management.

3. State the managerial applications of spread sheet software.

4. What are the features of computer based inventory systems?

5. Elucidate the legal dimensions of computerisation.

6. What are the perspectives MIS?

7. Illustrate structured query language statements with suitable example.

SECTION C — (15 marks)

(Compulsory)

8. Sandal, shoe, and bookmaker Deckers Outdoor Corporation recently switched to an Internet
networking technology called virtual private networks to interconnect their global company.
Virtual private networks (VPNs) use the power of the Internet instead of using private
telecommunications lines or other network links. A virtual private network is a secure and encrypted
connection between two points across the Internet. It transfers information by encrypting and
encapsulating telecommunications traffic into packets and sending the packets over the Internet. Most
VPNs are built and run by Internet service providers. Companies that go with a VPN from an Internet
service provider essentially outsource their networks to save money on having to acquire and manage
their own wide area network equipment and bandwidth requirements.
Deckers is a $100 million company whose 20-person office in Hoek Van Holland, the Netherlands,
collaborates on product development with its staff in Goleta, California. The VPN cost roughly
$31,000 to implement and saves Deckers $10,000 per month compared with leasing their previous
high-speed network connections.
“We needed a network that would serve as the foundation for our international expansion,” says Steve
Miley, MIS director at Deckers. “It will be critical ... because our offices will use it to make sure
projects are done on time”.
Employees at the two sites use the VPN to update the status of product development projects through
Lotus Notes groupware databases. The VPN supports Notes’ ability to replicate databases of project
information at each work site, which is crucial to groupware support of project team collaboration.
VPN performance “is slow but workable for interactive Notes database access”, Miley says. And as
the quality of Internet service improves, VPN performance can only improve, be adds.
Security, a reported shortcoming of virtual private networks, is improved with NetFortress software
from Fortress Technologies. It automatically changes encryption keys every 24 hours. “We feel, very
secure with their products on our network”, he says.
Offices for production management in Hong Kong, Mexico, and Macao will be added to the VPN this
year, Miley says. Those sites currently use expensive international telephone calls to access servers in
Goleta. Desktop videoconferencing over the VPN, to cut international travel costs, is also planned.
Deckers doesn’t mind being among the first to implement a virtual private network. “VPNs are here to
stay”, Miley says. “And we’re on the leading edge, not the bleeding edge”.
Questions :
(a) What are the business benefits of Deckers’ switch to a virtual private network?
(b) What can be done to overcome several limitations of virtual private networks?
(c) Does it make business sense for any company to use the Internet as their private
telecommunications network? Why or why not?

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EXECUTIVE M.B.A. DEGREE EXAMINATION, DECEMBER 2009.

First and Second Year

Paper VII — FINANCIAL MANAGEMENT
Time : Three hours Maximum : 75 marks

SECTION A — (3 × 5 = 15 marks)

1. Answer any THREE of the following :

(a) Objectives of financial management.
(b) Money market.
(c) Capital rationing.
(d) Net Operating approach.
(e) Marginal cost of capital.
(f) Dividend capitalization.

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

2. How is the finance function in a firm organised? What are the functions that financial officers perform
in a large firm?

3. What is meant by the term ‘the firm’s break –even sales level’? Does the break-even point as defined
consider financing costs?

4. From the following selected data determine the value of the firms ; P and Q belonging to the
homogeneous risk class under
(a) The NI approach and
(b) The NOI approach.
Levered firm Unlevered firm
P Q
EBIT Rs. 2,00,000 Rs. 2,00,000
Inertest at 10% 50,000
Equity -capitalization rate 15%
Corporate tax rate 50%
Which of the two firms has an optimal capital structure under the
(i) NI approach and
(ii) NOI approach?

5. What is stable dividend policy? Why should a firm follow such a policy?

6. Length of operating cycle is the major determinant of working capital needs of a business firm?
Explain.

7. What are the motives for holding cash? Discuss the objectives of cash management.

SECTION C — (15 marks)

8. This question is compulsory.
A company is considering on investment proposal to instal milling controls. The project will cost Rs.
50,000. The facility has a life expectancy of 5 years and no salvage value. The company’s tax rate is
55% and no investment allowance is allowed. The firm uses straight line depreciation. The estimated
cash flows before tax (CFBT) from the proposed investment proposal are as follows :
Year CFBT
Rs.
1 10,000
2 11,000
3 14,000
4 15,000
5 25,000
Compute the following :
(a) Pay back period
(b) Average rate of return.

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EXECUTIVE M.B.A. DEGREE EXAMINATION, DECEMBER 2009.

First and Second Years

Paper VIII — OPERATIONS MANAGEMENT
Time : Three hours Maximum : 75 marks
SECTION A — (3  5 = 15 marks)

Answer any THREE questions.

1. (a) Duties of production manager.

(b) Heat treatment.
(c) Flow Process chart.
(d) Surface treatment.
(e) TQM.
(f) Just-in-time.

SECTION B — (3  15 = 45 marks)

Answer any THREE of the following.

2. Describe how production function is organised in a manufacturing firm with the help of an
organisational chart.

3. Discuss the various factors involved in the location of a plant.

4. What is meant by ‘‘experience curve’’ ? What is its use in long range capacity planning?

5. What do you mean by ‘‘operation planning’’? Explain briefly the objectives of operation planning.

6. What is statistical quality control? What are its advantages?

7. What is materials control cycle? What are the various steps involved in it?
SECTION C — (15 marks)

(Compulsory)

8. From the following data draw an ABC analysis graph after classifying A,B & C class items :
Item Unit Price Annual Consumption
(Units)
1 200.0 3,000
2 20 60,000
3 5000.0 20
4 12.5 200
Item Unit Price Annual Consumption
(Units)
5 9.0 350
6 25.0 6,000
7 1000.0 40
8 70 300
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EXECUTIVE M.B.A. DEGREE EXAMINATION, DECEMBER 2009.

First and Second Years
Paper IX — MARKETING MANAGEMENT
Time : Three hours Maximum : 75 marks
SECTION A — (3  5 = 15 marks)
Answer any THREE questions.

1. (a) Marketing orientation.

(b) Demographical environment.
(c) Marketing budget.
(d) Buying motive.
(e) Brand equity.
(f) Value pricing.

SECTION B — (3  15 = 45 marks)

Answer any THREE questions.

2. What are marketing concepts? Distinguish between various concepts of marketing.

3. ‘‘The legal environment for marketing decisions is basically a positive environment’’. Comment.

4. Explain in brief, the importance of marketing planning.

5. Discuss how and why the field of consumer behaviour was developed.

6. What is Product life cycle? Show a similarity between product life cycle and human life cycle.

7. Explain the importance of pricing in a marketing mix. What are the determinants in pricing a product?

SECTION C — (15 marks)

(Compulsory)

8. Case study :
Arion Auto was a dealer for the Hanuman Motor Company, India’s most popular car maker. Aimed at
the first time buyer, this company had notched up 80 per cent market share at one time. Gradually,
with the entry of new players, the share has come down to about 50 per cent by 2003, but there was
still a large market for its 800 cc car. In other segments, the company had a much lower share.
A customer who had just bought the car from Arion was upset, as the car had developed a couple of
significant problems within a week. It had an unexplained noise in the engine while turning, and its
rear bumper had come loose. The customer claimed that he had been sold a defective car, and that the
dealer should replace it with a new one.
The service manager at Arion motors tried to communicate to the buyer that it was company policy to
rectify any problem within the warranty period free of cost, and that he would do the same, as per the
policy. However, the customer was not satisfied, as he would have to suffer great inconvenience on
account of it.
Being a businessman on the move, he had many important engagements, and he would be severely
hampered in his movements without a car. What should the Arion service manager do?

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EXECUTIVE M.B.A. DEGREE EXAMINATION, DECEMBER 2009.

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) HR Department.
(b) Job Design.
(c) HR Planning.
(d) Placement.
(e) Counselling.
(f) Learning Employee.

SECTION B — (3  15 = 45 marks)

Answer any THREE of the following.

2. Explain different types of incentives available to employees.

3. State the indicators of employee Job satisfaction.

4. What are the essentials of an effective employee grievance redressal procedure?

5. Discuss different techniques of performance appraisal followed in the Indian Industry.

6. Enumerate the tools used in the selection of employees.

7. Describe the methods of conducting job analysis.

SECTION C — (15 marks)

8. Compulsory.
The Frank Home Oil Service has had a long-standing tradition of promotion from within, largely on
the basis of length of service. Men were hired as labourers and moved up through several Promotional
ladders to higher-paying positions, including maintenance work. Older workers typically “bid” the
mechanics” jobs when there were openings, because this work was easier than delivery and pumping
jobs. Recently the company became concerned that its maintenance mechanics were less skilled than
those of its competitors. As new and more complicated equipment was purchased, the company found
itself without adequate maintenance personnel.
The company was finally able to negotiate an agreement with the union permitting it to use aptitude
tests in selecting new mechanics. The steady stream of older workers bidding on these jobs was now
halted. To fill openings as they occurred, the company for the first time was able to go outside the
organisation and hire young trade–schooled graduates who quickly learned the requisites skills. Over
time the older mechanics who had come into their jobs “unscreened” were shifted to the less-skilled
work in the department-largely building - maintenance work.
The immediate problem is that declining business is forcing a cutback in the size of the maintenance
department. Normally, department seniority is used to determine who will, be laid off. The result in
this case will be that nearly all of the relatively new and more able younger mechanics will be laid off,
except those who have enough seniority to “bump” the few unskilled labourers in the department. The
company fears that its maintenance work will be crippled and that a good share of the mechanics will
leave the company permanently to take jobs elsewhere.
Questions :
(a) How would you analyze the company’s problem? What mistakes have been made that other
organizations can profit from?
(b) What are the alternative solutions, and how would you go about trying to put any of them into
effect?

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