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Management

Corporate Governance

1. In the second version of McKinsey’s model called “the Central model” governance chain is represented by a. Well-developed equity market & dispersed ownership b. Underdeveloped equity market & concentrated ownership c. Well-developed equity market & concentrated ownership d. Underdeveloped equity market & dispersed ownership

2. Corporate governance refers to a combination of law, rules, regulations and a. Value b. Wealth c. Voluntary practices d. Customer Satisfaction

3. ____________, is one of the major tools. Corporations use to direct persuasive communication to target buyers & the public. a. Advertising b. Media c. Press d. None

4. Policy adopted by the monetary authority with respect to the supply of money is called a. Monetary Policy b. Fiscal Policy c. Budgetary Policy d. Economic Policy

5. Cash reserve requirements refer to the a. Purchase & Sale of government securities & other approved securities by the Central bank. b. Changes in bank rate by the Central Bank

c. That portion of bank’s total cash reserves which they are statutorily required to hold with the RBI.

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Examination Paper

d. The particular level of liquid ity maintained by commercial banks.

6. This committee was set up in January 1995 to identify good practices by the confederation of British Industry (CBI) a. The Paul Ruthman Committee b. The Greenbury Committee, 1995 c. Cadbury Committee, 1995 d. The Hampel Committee,1995

7. ______________, plays a significant role in the growth of the corporate sector by providing them finance for their Operations. a. Investors b. Bank c. Organization d. None

8. The first stock market scam was one which involved both the bond and equity markets in India. a. MNC’s efforts at Consolidation of ownership, 1993 b. Vanishing Companies Scam, 1993-94 c. M. S. Shoes, 1994 d. Harshad Mehta scam, 1992

9. Debt purchasers provide finance in return for a promised stream of payments & a variety of other convenants pertaining to corporate behavior, such as the value and risk of corporate assets. These are called a. Concentrated Debt b. Diffused Debt c. Creditor Incentives d. Debt Collection

10. A person having control over the direction, conduct, management or superintendence of then affairs of a company is called a. Director b. Co- director c. Board members d. None

11. A director who is not duly appointed but acts as a director is known as a a. Fraudulent Person b. De Facto c. De Jure d. None

12. This type of auditors are usually referred to as a CPA (Certified Public Accountants) firms

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Examination Paper

a. Internal auditors b. Independent auditors c. Government auditors d. None

13. To introduce corporate governance practices in the banking sector the recommendations of the working group of directors of financial Institutions known as the a. Ganguly Group b. Policy Implication c. Government Control d. Withdrawal effects

14. It is a manipulative method where one buy the power or the influence of others persons in order to satisfy his selfish need. a. Coercion b. Tax Evasion c. Bribery d. Insider Trading

15. This model supports the idea of multiple interests of stakeholders rather than shareholders interest alone a. The Social Entity Theory b. Trusteeship Model c. The Pluralistic Model d. Social Responsibility

16. This policy was released in August by the Ministry of Environment & Forests (MOEF) for Public discussion a. The National Environment Policy, 2004 b. Draft Policy c. Biodiversity Conservation d. Forest & wildlife Conservation

17. Out of the following which Committee appointed to examine all current Capital market regulations & to suggest amendments to them a. SEBI b. Dhanuka Committee c. Primary Market Reforms d. None

18. Out of the following which one sentence is the true

a. It lays down the framework for creating long-term trust between companies & the external provides of capital

b. It rationalizes the management and monitoring of risks a firm faces globally

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Examination Paper

c. It does not limits the liability of the top management 7 directors by carefully articulating the decision making process

d. It never ensures the integrity of financial reports.

19. Out of the following which is the responsibility of an Auditor

a. Whether loans & advances made by the company on the basis of security have been properly secured.

b. Whether loans & advances made by the company have been shown as deposits. c. Whether personal expenses have been charged to revenue account d. He has to ensure that his work involves exercise of judgment.

20. This theory assumes that managers are basically trustworthy and attach significant value to their own personal reputation a. Agency Theory b. Stewardship Theory c. Stakeholder Approaches d. Sociological Theory

1. What is clause 49?

2. Explain Board of Directors & Corporate Governance?

1. Banks are also using concept of Corporate Governance. Explain why Corporate Governance is widely used in Banks. Also state few sound Corporate Governance Practices.

2. What is ethics & state why ethics is necessary in Business and also state the importance and need of business ethics?

Six Sigma Green BeltPart One:

Multiple Choices:

6. The primary purpose of a control chart is to: a. Set Specifications and tolerances b. Compare operations. c. Determine the stability of a process. d. Accept or reject a lot of material

7. When a control chart is used on a new process, capability can be assessed at which of the following times? a. Before the chart is first started b. After the first ten points are plotted c. When the plotted points hug the centerline d. After the process is shown to be in control

8. Precision is best described as: a. A comparison to a known standard b. The achievement of expected outgoing quality c. The repeated consistency of results d. The difference between an average measurement and the actual value

9. The overall ability of two or more operators to obtain consistent results repeatedly when measuring the same set of parts and using the same measuring equipment is the definition of: a. Repeatability b. Precision c. Reproducibility d. Accuracy

10. Which of the following conditions must be met for a process to be in a state of statistical control? a. Most of the product out by the process is in specification. b. All subgroup averages and rang are within control limits. c. All variation has been completely removed d. Previously optimal process settings are used.

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Examination paper: Six Sigma Management

2 Which of the following measures of dispersion is equal to the sum of deviations from the mean squared divided by the sample size? d. Range e. Standard deviation f. Variance g. Mode

3 An X and R chart is used to: d. Indicate process variation e. Specify design Limits f. Interpret costs g. Identify customer expectations

4 Which of the following is the most useful graphical tool for promoting and understanding the process of capability?

d. A flowchart e. A histogram f. An affinity diagram g. An Ishikawa diagram

5 The type of chart that presents the value of items in descending order is a: d. Histogram e. Pareto chart f. U chart g. Cusum chart

6 Measures of which of the following provide attributes data? d. Temperature in degrees e. Attendance at meetings f. Weight in pounds g. Length in metric units

7 The fraction of nonconforming products is plotted on which of the following types of control chart? d. P chart e. U chart f. Np chart g. C chart

8 A cause and effect diagram is a useful tool for doing which of the following? d. Determining the flow of a process e. Detecting shifts in a process f. Developing theories based on symptoms g. Arranging theories by defect count

9 Which of the following statistics would best describe the central tendency of a sample of data? d. Mode e. Mean f. Standard deviation g. Range

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13. Which of the following type of tools or techniques is considered qualitative? a. Histogram b. Frequency distributions c. Pareto chart d. Process observations

14. Out of the following which technique is most useful in narrowing issues and limiting discussion? a. Brainstorming b. Quality function deployment c. Cause and effect analysis d. Mutilating

15. In statistics, an estimation error that is persistent or systematic is called: a. Bias b. Sensitivity c. Random d. Shift

16. For a normal distribution, two standard deviation on each side of the mean would include what percentage of the total population: a. 47% b. 68% c. 95% d. 99%

17. If a distribution is normal, u=50 s=15, what percentage of data will be less than 30? a. 59.18% b. 40.82% c. 9.18% d. 1.33%

18. A company is receiving an unusually high number of returns from various customers. The first step in investigating the problem would be to a. Check the inspection records b. Establish the correlation of the returns to shipments c. Brainstorm the potential causes d. Classify the returns by type and degree of serious

19. Which of the following is the best definition of a flow chart? a. A diagram used to structure ideas into useful categories b. An illustration used to analyze variation in a process c. A picture used to separate steps of a process in sequential order d. An analytical tool used to clarify opposing aspects of a desired change

20. Which of the following activities would NOT contribute to the effective functioning of a team? a. Eliminating unnecessary activities b. Development team performance measures c. Defining process in detail d. Monitoring each member’s performance

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2 What is the standard deviation of the population-10, 4, 16, 12, and 8? a. 4.00 b. 4.47 c. 16.00 d. 20.00

3 Which of the following tools would be most appropriate for collecting data to study the symptoms of a problem? a. Check sheet b. Flow diagram c. Force-field analysis d. Activity network diagram

4 Which of the following measures is a sufficient statistic for the parameter u? a. Median b. Mid-range c. Mean d. Mode

5 Positional, cyclical, and temporal variations are most commonly analyzed in: a. SPC charts b. Multi-vari charts c. Cause and effect diagram d. Run charts

6 Which of the following describes the deming method for continuous improvement? a. Cost of quality analysis b. Process map c. Tree Diagram d. Plan-do-check-act cycle

7 In analysis of variance, which of the following distribution is the basis for determining whether the variance estimates are all from the same population? a. Chi square b. Students c. Normal d. F

8 Which of the following statement best describes the set of value of a random variable? a. It is finite. b. It is an interval c. It can be discrete or continuous. d. It can be tracked by using control charts or scatter plots.

9 Which of the following is the best description of randomization? a. A technique used to increase the precision of an experiment b. A means of assuring representative sampling c. The repetition of an observation or measurement d. The relationship between two or more variables


19. When the order of items is not important, which of the following method is used to determine the number of sets and subsets of items? a. Combination b. Permutation c. Factorization d. Simulation

20. Scatter diagrams are best described as: a. Histograms. b. Correlation analysis. c. Pareto analysis. d. Ishikawa diagrams.

21. A __________ is created to determine customers of a specific process. a. Pareto chart b. Flow diagram c. Cause and effect diagram d. Scatter diagram

22. A production line uses signs at specific points on the line to indicate when components or raw materials need to be replenished. This practice is an example of: a. Kanban b. Poka-yake c. Checkpoints d. Hoshin

23. Which of the following is a good tool for planning cycle time reduction and concurrent operations? a. A timeline b. A Pareto diagram c. An X and R chart d. A PERT chart

24. Attribute and variable data are best described as which of the following? a. Counted values measured values b. Counted values visual features c. Measured values counted values d. Visual features counted values

25. All of the following are common ways for people to react to conflict except: a. Competing b. Collaborating c. Avoiding d. Sabotaging

26. A quality manager has chosen to survey customer satisfaction by taking samples based on the categories of frequency of use, categories of use, and demographic. This technique is known as a. Random sampling b. Data collection c. Stratification d. Customer classification

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2 Which of the following actions is Not used to reduce process cycle time? c. Analyzing current processes d. Reducing queue times e. Setting priorities f. Implementing activity-based costing

3 A company’s accounts payable department is trying to reduce the time between receipt and payment of invoices and has recently completed a flowchart. Which of the following tool is the next to be used by them? c. Fishbone diagram d. Scatter diagram e. Box and whisker plat f. Histogram

4 In a manufacturing company, the machine shop is what kind of customer in relation to the Human Resource department? c. Intermediate d. Hidden e. External f. Internal

END OF SECTION A

Section B: Short Notes (30 Marks)

21. This section consists of Short Notes Questions. 22. Answer all the questions. 23. Each Question carries 6 marks.

1. Describe how QFD fits into the overall DFSS process.

2. What is interrelationship Digraph? Explain it with example.

3. Find the area under the standard normal curve between +1.50 standard deviations and +2.50 standard deviations.

4. Define terms related to One-Way ANOVA and interpret their results & data plots.

5. Define & describe the use of Rational Sub grouping.

END OF SECTION B

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Section C: Applied Theory (30 Marks)

· This section consists of Applied Theory Questions. · Answer all the questions. · Each question carries 15 marks. · Detailed information should from the part of your answer (Word limit 200 to 250 words).

1. Suppose you are cooking steak for 100 people, & the current approval rating is 75% acceptable. You want to know the affect of different methods and approaches to see how the overall approval or “yield” is affected. By using the Full Factorial method explain how the overall approval or “yield” is affected.

2. Interpret Control Charts? Distinguish between common & special causes using rules for determining stastical control.

END OF SECTION C

Six Sigma Black Belt

Section A: Objective Type (40 Marks)

· This section consists of Multiple Choice questions. · Answer all the questions. · Part one questions carry 1 mark each & Part Two questions carry 2 marks each.

Part One:

Multiple Choices:

1. Calculate the estimated variance of the population from which the following values have been randomly selected: 2.8 2.7 2.6 2.9 2.8 2.8 2.8. a. 095 b. 009 c. 088 d. 008

2. The mean, median and mode of a distribution have the same value. What can be said about the distribution?

a. It is exponential b. It is normal c. It is uniform d. None of the above

3. Approximately what percent of the data values are smaller than the mean? a. 25% b. 50% c. 75% d. None of above

4. A normal probability plot is used to: a. Determine whether the distribution is normal b. Plot Z value c. Determine process capability d. It percent out of specification

5. Nominal Group technique is used to: a. Help a group reach consensus b. Generate a group on new ides c. Provide a consistent stable group leadership d. Provide a name for the group


6. An example of a project metric would be: a. The decrease in defect occurrence b. The decrease in product cost c. The decrease in cycle time d. All the above

7. A correct statement about the relationship between the terms parameter and statistic is: a. A population statistic is more accurate than a parameter b. A sample parameter is used to estimate a statistic c. A sample statistic is used to estimate a population parameter d. Standard deviation calculation requires both statistics and parameters

8. A and B are events. P(A) = 0.80 and P(B) = 0.90: a. Events A and B are disjoint or mutually exclusive b. Events A and B are not disjoint or mutually exclusive c. P (A and B) = 0 d. P(A and B) = 1.7

9. In a certain sampling situation, a=0, b=0.08. the power of the sampling plan this case is: a. 0 b. 0.08 c. 1.00 d. 0.92

10. A newspaper article describes a high positive correlation between obesity and orange juice consumption among six-year-old children’s. Parents who restrict the use of orange juice for their children have: a. Made a type I error b. Made a type II error c. Misunderstood margin of error d. Confused correlation with causation

11. In an experimental design context, replications refer to: a. Duplicating experimental result at another location b. Repeating a test with the same factor levels c. Obtaining the same or similar result from different factors d. Repeating an experiment but using at least one different factor level

12. Find the upper control limit for a range chart if n=4 and the average range is 2.282. a. 2.282 b. 4.564 c. 5.208 d. 3.423

13. An x-bar control chart been established with control limits of 3.245 and 3.257, n=5. An engineer collects the following sample and plots the average on the control chart: 3.257, 3.256, 3.258, 3.259 a. The process is out of control b. The process is not out of control c. The engineer misused the control chart d. The control limits are incorrect

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14. TEIZ is an acronym which refers to: a. A set of problem solving tools b. An organization of quality professionals c. An experiment using transitional results d. A Russian general responsible for creative thinking

15. A robust design is one which; a. Has high reliability b. Has low maintenance frequency c. Is simple to manufacture’ d. Is resistant to varying environmental condition

16. A frequent cause of system sub optimization is: a. Optimizing individual process b. Failing to draw a system flow chart c. Using data with outliers d. Failing to consider the normal distribution

17. The x2 distribution is: a. Symmetric b. Left skewed c. Right skewed d. Normal

18. An advantage of using standard deviation rather than range for measuring dispersion of a large sample is that: a. Standard deviation has a simpler formula b. Calculators have a standard deviation key but not a range Key c. Standard deviation uses information from each measurement d. Range calculation are not normally distributed

19. The team development stage characterized by expression of individual opinions and ideas often without regard for team objectives is known as: a. Performing b. Norming c. Conflicting d. Storming

20. SMED is an acronym for activity that: a. Involve housekeeping in the work area b. Makes mistake of a certain type impossible c. Emphasizes the pull of the customer d. Reduces set up the time

21. A principle advantage of fractional factorial experimental designs is: a. Reduced cost b. Improved accuracy c. Increased confounding d. Higher confidence level

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22. Dr. W Edwards Deming: a. Lectured in Japan after World War II b. Was an author of several books in the US c. Is considered an expert in the quality field d. All of the above

Part Two:

23. What percent of population falls below the lower specification limits? a. 9.18% b. 22.66% c. 6.68% d. 1.83%

24. Find the mean, median and mode of the following data set: 9, 11, 12, 14, 18, 18, 18, 20, and 23: a. 15.5, 18, 18 b. 15, 14, 18 c. 15, 12, 18 d. 15.5, 16, 18

Use for problems 25-27:A B Res.

1 - - 202 - + 303 + - 404 + + 50

25. Calculate the main effect of factor A: a. 20 b. 25 c. 30 d. None of the above

26. Calculate the interaction effect: a. 20 b. 25 c. 40 d. None of the above

27. If it is desirable to maximize the response R, the following levels should be used: a. A+ and B+ b. A+ and B- c. A- and B+ d. None of the above


Use for questions28-30:

Here is an experimental design with result:

A B C

1- - +

2 - + -

3 + + +

4 + - -

Responses

10 11 10

22 20 23

34 36 37

26 25 25

28. This experimental design is: a. Full factorial b. Half factorial c. Quarter factorial d. None of the above

29. The number of factors, levels and replications: a. 3, 3, 3 b. 3, 2, 2 c. 3, 2, 3 d. None of the above

30. An indication of the experimental error is available because the design has: a. Multiple replications b. Multiple levels c. Multiple factors d. None of the above

31. The average number of defects is 21.6. Find the upper control limit for the C-chart. a. 26.4 b. 24.6 c. 26.2 d. None of the above

END OF SECTION A


· This section consists of Short Notes Questions. · Answer all the questions. · Each Question carries 6 marks.

1. Briefly define Affinity Diagram with an example.

2. By using imaginary figures draw a Run Chart.

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3. Consider the following data & develop a normal probability graph paper & normal probability plot:

7.9, 9.7, 10.6, 12.7, 12.8, 18.1, 21.2, 33.0, 43.5, 51.1, 81.4, 93.1

4. A painting process produces coatings with a thickness of 0.0005 & a standard deviation of 0.00002. What should the tolerance limits be for this process? Briefly explain Tolerance design?

5. What is Pugh matrix? State the steps which are used in Pugh matrix.

END OF SECTION B



1. Define & describe the purpose of root cause analysis? Recognize the issues involved in identifying a root cause analysis and list various tools for resolving chronic problem?

2. Describe the purpose & elements of FMEA including risk priority number (RPN), and evaluate FMEA results for processes, products, & services. Distinguish between design FMEA (DFMEA) & process FMEA (PFMEA) and interpret results from each.

END OF SECTION C

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International Business Management

Section A: Objective Type (30 marks)

· This section consists of multiple choice questions and short answer type questions · Answer all the questions. · Part One carries 1 mark each and Part Two questions carries 5 marks each.

Part One:

Multiple choices:

11. What is the series consideration for strategy implementation? a. Strategic orientation b. Location

c. Dimensions d. Both (a) & (b)

12. The major activity in global marketing is a. Pricing policies b. Product lines c. Market assessment d. All of the above

13. The third ‘P’ in the international marketing mix is a. Product b. Price c. Promotion d. Place

14. The European Economic Community was established a. 1958 b. 1975 c. 1967 d. 1957

15. Environment Protection Act a. 1986 b. 1967 c. 1990 d. None of the above

16. People’s attitude toward time depend on a. Language b. Relationship c. Culture

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Examination Paper of International Business Management

h. All of the above

21. Culture necessitates adaption of a. Product b. Price c. Promotion d. Place

22. The legal term for brand is a. Symbol b. Name c. Trade mark d. All of the above

23. FDI flows are often a reflection of rivalry among firms in a. Global market b. Indian market c. International market d. None of the above

24. ISO certification is a. Expensive process b. Elaborate process c. Evaluative Process d. Both (a) & (b)

Part Two:

10 What do understand by ‘Inward-oriented Policies’?

11 What is ‘Factor Endowments Theory’?

12 Explain the term ‘Totalitarianism’.

13 Write about ‘Persistent Dumping’.

END OF SECTI

ON A

Section B: Caselets (40 marks)

This section consists of Caselets.

Answer all the questions. Each caselet carries 20 marks. Detailed information should

form the part of your answer (Word limit 200 to 250 words).


Caselet 1

THE EU’S LAGGING COMPETITIVENESS

In a report produced for the European Commission, published in November 1998, it was argued that the EU lags behind the USA and Japan on most measures of international competitiveness. Gross domestic product per capita, sometimes used as an indicator of international competitiveness at the country level, was 33 per cent lower in the EU as a whole than in the USA and 13 per cent lower than in Japan. The EU’s poor record in creating employment was singled out for particular criticism.As this appeared to apply across the board in most industrial sectors, it suggested that the EU’s poor performance related to the business environment in general and, in particular, to the inflexibility of Europe’s labour markets for goods and services. A shortage of risk capital for advanced technological development and high cost and inefficiency of Europe’s financial services were also highlighted by the report. For one reason or another, European industries generally lag behind in technology industries. If measured by the number of inventions patented in at least two countries, the USA is well ahead of most European countries, as well as Japan. Despite these shortcomings, the report’s authors focus attention on flexible markets, market liberalisation, and the creation of a competitive business environment rather than on targeted intervention by the EU or national authorities.

1. Is gross domestic product per capita a useful indicator of International competitiveness in the EU?

2. Is it fair to point the blame for the EU’s poor international competitiveness at inflexible labour markets, regulated goods and services markets, and a general lack of competition? What alternative explanations might be suggested?

Caselet 2

PERU

Peru is located on the west coast of South America. It is the third largest nation of the continent (after Brazil and Argentina), and covers almost 500,000 square miles (about 14 per cent of the size of the United States). The land has enormous contrasts, with a desert (drier than the Sahara), the towering snow-capped Andes mountains, sparkling grass-covered plateaus, and thick rain forests. Peru has approximately 27 million people, of which about 20 per cent live in Lima, the capital. More Indians (one half of the population) live in Peru than in any other country in the western hemisphere. The ancestors of Peru’s Indians were the famous Incas, who built a great empire. The rest of the population is mixed and a small percentage is white. The economy depends heavily on agriculture, fishing, mining, and services. GDP is approximately $115 billion and per capita income in recent years has been around $4,300. In recent years the economy has gained some relative strength and multinationals are now beginning to consider investing in the country. One of these potential investors is a large New York based that is considering a $25 million loan to the owner of a Peruvian fishing fleet. The owner wants to refurbish the fleet and add one more ship. During the 1970s, the Peruvian government nationalised a number of industries and factories and began running them for the profit of the state. In most cases, these state-run ventures became disasters. In the late 1970s, the fishing fleet owner was given back his ships and are getting old and he needs an influx of capital to make repairs and add new technology. As he explained it to the NEW YORK banker: “fishing is no longer just un art. There is a great deal of technology involved. And to keep costs low and be competitive on the world market , you have to have the latest equipment for both locating as well

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as catching and then loading and unloading the fish.”Having reviewed the fleet owner’ operation, the large multinational bank believes that the loan is justified. The financial institution is concerned , however , that the Peruvian government might step in during the next couple of years and again take over the business . If this were to happen, it might take an additional decade, for the loan to be repaid. If the government were to allow the fleet owner to operate the fleet the way he has over the last decade, the loan could be rapid within seven years. Right now, the bank is deciding on the specific terms of the agreement. Once these have been worked out , either a loan officer will fly down to lima and close the deal or the owner will be asked to come to NEW YORK for the signing. Whichever approach is used, the bank realize that final adjustments in the agreement will have to be made on the spot. Therefore, if the bank sends a representative to Lima, the individual will have to the authority to commit the bank to specific terms. These final matters should be worked out within the next ten days.

1. What are some current issues Facing Peru? What is the climate for doing business in Peru today?

2. Would the bank be better off negotiating the loan in New York or in Lima? Why?

END OF SECTION B

Section C: Applied Theory (30 marks)

24. This section consists of Long Questions. 25. Answer all the questions. 26. Each question carries 15 marks. 27. Detailed information should form the part of your answer (Word limit 150 to 200 words).

6. Imagine that you are the director of a major international lending institution supported by funds from member countries. What one area in newly industrialized and developing economics would be your priority for receiving development aid? Do you suspect that any member country will be politically opposed to aid in this area? Why or Why not?

7. The principle problem in analysing different forms of export financing is the distribution of risks between the exporter and the importer. Analyse the following export financing instruments in this respect: Letter of Credit Cash in advance Draft Consignment Open Account

END OF SECTION C

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Global Marketing Management


3. This section consists of Mixed Type questions & Short Answer type questions. 4. Answer all the questions. 5. Part One questions carries 1 mark each & Part Two questions carries 5 marks each.

Part One:

Multiple Choices:

• All the ethnocentric orientations are collectively called…………………………………………………………….

• Presently number of members countries in OECD are 12 20 24 29

• If the value be ‘a’ , benefit be ‘b’ and the price be ‘c’ then relation between the threes is given by a=b/c a=c/b a=b+c none

• If the confidence limit be ‘t’ standard deviation be ‘b’ and the error limit be ‘c’ then the sample size will be given by n=t+b/c n=t*b/c n=t*c/b none

• According to Backer spielvogel and Bates’s global scan the segment content of Achiever is 26 22 13 18

• CAT stands for ………………………………………………………………………….…

• Cave dwellers are…………………………………………………………………………

• LIFO stands for life in fire option.(T/F)

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9. Starbursts are ………………………………………………………………………………………………………

10. Name one of the common wealth of independent States (CIS)……………………………………………..

Part Two:

1. Write short “Hofstede’s Cultural Typology”.

2. Write a short note on “Diffusion Theory”.

3. According to “D’arcy Massius Benton & Bowles’s Euroconsumer Study”. Who are disaffected survivors.

4. What do you understand by “Piggyback Marketing”.

END OF SECTION A


4. This section consists of Caselets. 5. Answer all the questions. 6. Each caselet carries 20 marks. 7. Detailed information should form the part of your answer (Word limit 200 to 250 words).

Caselet 1

Which Company Is Transnational?

Four senior executives of companies operating in many countries speaks:

COMPANY AWe are transnational company. We sell our products in over 80 countries, and we manufacturer in 14 countries. Our overseas subsidiaries manage our business in their respective countries. They have complete responsibility for their country operations including strategy formulation. Most of the key executives in our subsidiaries are host-country nationals, although we still rely on home-country persons for the CEO and often the CFO (chief financial officer) slots. Recently, we have divided the world regions and the United States. Each of the world regions reports to our world trade organization, which is responsible for all of our business outside United States.

The overseas companies are responsible for adapting to the unique market preferences that exist in their country or region and are quite autonomous. We are proud of our international reach: We manufacture not only in the United States but also in Europe and the United Kingdom, Latin America, and Australia.

We have done very well in overseas markets, especially in the high-income countries with the exception of Japan. We would like to enter the Japanese market, but let’s face it, Japan is a protected country. There is no level playing field, and as you no doubt know, the Japanese have taken advantage of the protection they enjoy in their home country to launch an export drive that has been a

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curse for us. Our industry and our home country (the United States) has been a principle target of the Japanese, who have taken a real bite out of our market share here in the United States. We are currently lobbying for more protection from Japanese competition.

COMPANY BWe are a unique transnational media company. We do not dominate any particular area, but we have an important presence on three continents in magazines, newspapers, and television. We have a global strategy. We are a global communications and entertainment company. We’re in the business of informing people around the world on the widest possible basis. We know how to serve the needs of our customers who are readers, viewers, and advertisers. We transfer people and money across national boundaries, and we know how to acquire and integrate properties as well as how to start up a new business. We started out as Australian, and then the weight of our main effort is in the United States. We go where the opportunity is because we are market driven.

Sure, there are lots of Australians in the top management of this company, but we started in Australia, and those Aussies know our business and the company from the ground up. Look around and you’ll see more and more Americans and Brits taking the top jobs. We stick to English because I don’t believe that we could really succeed in foreign print or broadcast. We know English, and so far the English-speaking world is big enough for us. The world is shrinking faster than we all realize, and to be in communications is to at the center of all change. That’s the excitement of what we’re doing – and also the importance.

COMPANY CWe’re a transnational company. We are committed do being the number-one company in our industry worldwide. We do all of our manufacturing in our home country because we have been able to achieve the lowest cost and the highest quality in the world by keeping all engineering and manufacturing in order to maintain our cost advantage. We are doing this reluctantly but we believe that the essence of being global is dominating markets and we plan to do whatever we must do in order to maintain our position of leadership.

It is true that all of our senior managers at home and in most of our foreign markets are home-country nationals. We feel more comfortable with our own nationals in key jobs because they speak our language and they understand the history and the culture of our company and our country. It would be difficult for an outsider to have this knowledge, which is so important to smooth-working relationships.

COMPANY DWe are a transnational company. We have 24 nationalities represented on our headquarters staff, we manufacture in 28 countries, we market in 92 countries, and we are committed to leadership in our industry. It is true that we are backing off on our commitment to develop business in the Third World. We have found it extremely difficult to increase sales and earnings in the Third World, and we have been criticized for our aggressive marketing in these countries. It is also true that only home-country nationals may own voting shares in our company. So, even though we are global, we do have a home and a history and we respect the traditions and sensibilities of our home country.

We want to maintain our number-one position in Europe, and over time achieve the same position of leadership in our target markets in North America and Japan. We are also keeping a close eye on the developing countries of the world, and whenever we see a country making the move from low income to lower middle, or from lower middle to upper middle, or from upper middle to high income we commit our best effort to expand our positions, or, if we don’t have a positions, to establish a position. Since our objective is to achieve an undisputed leadership position in our industry, we simply cannot afford not to be in every growing market in the world.

We have always had a European CEO, and this will probably not change. The executives in this company from Europe tend to serve all over the world, whereas the executives from the United States

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and Japan serve only in their home countries. They are very able and valuable executives, but they lack the necessary perspective of the world required for the top jobs here at headquarters.

1. Which company is transnational?

2. What are the attributes of a transnational company?

3. What is the difference between a domestic, international, multinational, global, and transnational company?

4. At what stage of development is your company and your line of business today? Where should you be?

Caselet 2

Parker Pen Co. (A) INTRODUCTION

The meeting at sunny Palm Beach concluded with nary a whimper of dissent from its participants. After years of being run as a completely decentralized company whose managers in all corners of the world enjoyed a high degree of flexibility, Parker Pen Co., Janesville, Wisconsin, was forced to reexamine itself. The company had enjoyed decade after decade of success until the early 1980s. By this time, Parker faced strong competitive threats and a deteriorating internal situation. A new management team was bought in from outside the company – an unprecedented step for what had been until then an essentially family-run business. At the March 1984 Palm Beach meeting, this new group of decision makers would outline a course of action that would hopefully set Parker back on a path to success.

The men behind the new strategy were supremely confident of its chances for success – and with good reason. Each was recognized as a highly skilled practitioner of international business and their combined extensive experience gave them an air of invincibility. They had been recruited from larger companies, had left high-paying, rewarding jobs, and each had come to Janesville with a grand sense of purpose. For decades, Parker had been a dominant player in the pen industry. In the early 1980s, hoe-ever, the company had seen its market share dwindle to a mere 6 percent and, in 1982, net income plunged a whopping 60 percent.

To reverse this decline, Parker recruited James Peterson, an executive vice president at R.L. Reynolds, as the new president and CEO. Peterson hired Manville Smith as president of the writing instruments group at Parker Smith, who was born in Ecuador and had a broad international background, came from 3M where he had been appointed division president at the tender age of 30. Richard Swart was vice president/marketing of the writing instruments group. He spent 11 years at the advertising agency BBDO and was an expert on marketing planning and theory. Jack Marks was head of writing instruments advertising. Marks came to Parker from Gillette, where, among other things, he assisted in the worldwide marketing of Paper Mate pens. Rounding out the team was Carlos Del Nero, manager of global marketing planning, who brought with him considerable international experience at Fisher-Price. Each of these men was convinced that Parker would right itself by following the plan they unveiled at Palm Beach.A BRIEF HISTORY OF PARKER PENThe “Rolls Royce” of the Pen Industry

The Parker name has been identified with pens since 1888 when George S. Parker delighted ink-splotched pen users everywhere by introducing a leakproof fountain model called the Parker LuckyCurve. Parker Pen would eventually blossom into America’s, if not the world’s, largest and best-known pen market. Parker’s products, which would eventually include ballpoint pens, felt-tip pens,

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desk sets, mechanical pencils, inks, leads, erasers, and, of course, the fountain pen, were also known for their price tags. In 1921, for example, Parker introduced the Duofold pen. The Duofold, even though it was comparable to other $3 pens on the market, was extravagantly priced at $7. Parker was able to charge a premium price because of its reputation for quality and style, and its skill in positioning products in the top price segment.

Parker’s position as America’s leading pen marker was solidified during the years when the pen was mainly viewed as a gift item. High school and college graduates in the 1940s and 1950s, for example, were quite likely to receive a Parker “51” fountain pen (priced at & 12.50) commemorating their achievement. Indeed, it was with a “51” that General Douglas MacArthur signed the Japanese Peace Treaty in 1945. Parker’s stylish products and high profile name would keep it at the top of the pen market until the late sixties as well as a few foreign brands, knocked them out of first place once and for all.

Of course, Parker would not have lost its hold on the market had it not made some oversights along the way. In addition to a more competitive environment, Parker failed to come to terms with a fundamental change in the pen market – the development of the disposable, ballpoint market. WhenParker unveiled the $25 “75” pen in 1963, it showed that it remained committed to supplying high showed that it remained committed to supplying high priced pens to the upper end of the market. As the 1960s wore on, a clear trend toward cheap ballpoint and soft-tip pens developed. Meanwhile,Parker’s only ultimately successful addition to its product range in the late sixties was the “75”Classic line, yet another high-priced pen.

A Brie Flirtation with Low-Priced Pens

Parker did, however, make an effort to compete in the lower price segment of the market in the late 1960s only to see it fail. In an attempt to capitalize on the trend toward inexpensive pens, Parker introduced the T-Ball Jotter, priced at $1. 98. The success of the Jotter led it to move even further down the price ladder when it acquired Eversharp. Whereas the Jotter had given Parker reason to believe it could make the shift from pricy pens to cheap pens with little or no difficulty, the Eversharp experience proved to be different. George Parker, a grandnephew of the company’s founder and president of Parker at the time, stated the reasons for the Eversharp failure, as well as its consequences:

All the market research surveys said go lower, go lower, go lower, that’s where the business is. So I said, ‘Go lower? Fine. But we don’t know how.’ We bought Eversharp and tried to run it ourselves, and we couldn’t do it. our people just couldn’t think in terms of big units, and they didn’t know how to sell people on the lower-priced end of the business – grocers, supermarkets, rack jobbers. The result was, Bic and Paper Mate were cleaning up in the lower-priced end, Cross in the high, and Parker was getting up, but our costs went up faster, and our profits were squeezed.

The 1970s: The Illusion of Success

Despite the difficulties Parker encountered when it left its niche in the upper end of the pen market, the company experienced a healthy period of growth and profitability for most of the 1970s. Demand for its products remained strong, and its worldwide markets expanded significantly due to a rise in consumer income and increasing literacy rates in much of the Third World. Parker also chose to diversify during this decade, and its most noteworthy acquisition, Manpower, Inc., proved to be a temporary-help firm, Parker was the slightly more profitable of the two. With the boom in temporary services in the late seventies and early eighties, however, Manpower eclipsed Parker in sales and earnings and eventually subsidized its parent company during down periods.

Why did parker fall from its position of leadership in the writing instrument market” there were many reasons, and one of the most important was the weakening of the U.S. dollars. At its peak, Parker accounted for half of all U.S. exports of writing instruments and 80 percent of its total sales

9


came from 154 foreign countries. Parker was especially strong in Europe, most particularly in the United Kingdome. When sales in the strong European currencies were translated into dollars, Parker earned huge profits.

The downside of a weak dollar, however, was that it gave Parker the illusion that it was a well-run company. In fact, throughout the 1970s, Parker was a model of inefficiency. Manufacturing facilities were dated and inefficient. Production was so erratic that the marketing department often had no idea what type of pens they would be selling from year to year or even month to month. Under the leadership of George Parker, nothing was done by company headquarters to update these facilities or to develop new products. As a result, subsidiaries and distributors around the world saw fit to develop their own products. By the end of George Parker’s reign, the company’s product line included 500 writing instruments.

That distant subsidiaries would have the leeway to make such decisions was not at all unusual at Parker, for it had long been known as one of the most globally decentralized companies in the world. Decentralization , in fact, was something that Parker took pride in and considered to be vital to its success as a multinational. Yet it was this very concept that Peterson and his new management team would hold to be responsible for much of what ailed Parker Pen.

PARKER’S GLOBAL OPERATIONS BEFORE PETERSON

In addition to having a hand in manufacturing and product-line decisions, Parker’s subsidiaries developed their own marketing strategies. More than 40 different advertising agencies promoted Parker pens in all the corners of the globe. When Peterson came to Parker, he was proudly informed that the company was a “federation” of autonomous geographical units. The downside to the “federation” concept, Peterson though, was that home country management often lacked the information needed to make and coordinate basic business decisions. Control was so completely decentralized that Parker didn’t even know how many pens it was selling by the time Peterson and his group arrived.

On the other hand, decentralization obviously had its positive aspects, most noticeably in the field of advertising. Pens mean different things to different people. Whereas Europeans are more likely to choose a pen based on its style and feel, a consumer from a lesser-developed country in the seventies viewed the pen as nothing less than a badge of literacy. In additional, tastes varied widely from country to country. The French, for example, remained attached to the fountain pen. Scandinavians, for their part, showed a market preference for the ballpoint. The logic behind having so many different advertising agencies was that, even if it appeared to be somewhat inefficient, in the end the company was better off from a sales standpoint.

Some of the individual advertising agencies were able to devise excellent, imaginative campaigns that struck a responsive chord among their local audiences. One example was the Lowe Howard-Spink agency in London. The Parker U.K. division became the company’s most profitable during the tenure of the Lowe agency. An example of its creativity is an ad is a picture of a dead plumber, on his back, with a giant Parker pen protruding from his heart. Part of the text is as follows:

Do you know plumbers who never turn up?

Hairdressers who missed their vocations as butchers?

Drycleaners who make your stains disappear – and your clothes with them?

Today, we at Parker give you the chance to get your own back.

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Not only are we offering a beautiful new pen called the Leque which owes its deep luster to a Chinese technique 2000 years old, but we are attempting to revive something that went out when the telephone came in.The well-armed, witty, malicious dart.

Although the Parker U.K. division was a success, however, the company’s general inefficiencies, loss of market share, and lack of strategic direction were finally revealed in the early 1980s with the rise of the U.S. dollar. Parker’s financial decline was even more precipitous than the dollar’s increase.When the huge 1982 losses were registered, Peterson was brought in from R.J. Reynolds to try and turn things around for Parker. He decided that every aspect of the company needed to be closely examined, not the least of which was Parker’s decentralization of global operations.

1. What would you do if you were in James Peterson’s shoes in January 1982?

2. What changes, if any, would you make in Parker’s marketing strategy?

3. Which aspects of Parker’s structure would you discard? Which would you keep?

4. Assume that you are James Peterson and you have just hired a new management team composed of highly qualified executives from outside companies. You and your new team are convinced that you have the solution to Parker’s problems but there are many hold overs who disagree with you. How would you implement your plan? To what extent would you incorporate the views of Parker management into your plan?

END OF SECTION B



a. Consider the equation Y=f(A,B,C,D,E,F,G), where Y stands for consumption of soft drinks and D is the variable for cultural elements. How would this equation help a soft-drink marketer understand demand for soft drinks in global markets?

b. The president of XYZ Manufacturing Company of Buffalo, New York, comes to you with a license offer from a company in Osaka. In return for sharing the company’s patents and know-how, the Japanese company will pay a license fee of 5percent of the ex-factory price of all products sold based on the U.S. company’s license. The president wants your advice what would you tell him?

END OF SECTION

S-2-301012

11

International Finance


· This section consists of Multiple choice & Short Answer type questions. · Answer all the questions. · Part One questions carry 1 mark each & Part Two questions carry 5 marks each.

Part One:

Multiple choices:

17. Maintenance margin money denotes the minimum level to which the margin is allowed to fall in the sequel of loss, if the balance drops below this, one has to deposit, a. Initial margin amount b. Variation margin amount c. Maintenance margin amount d. Initial as well as variation margin amount.

18. The two kind of swap in the forward market are a. Forward swap and reverse swap. b. Reverse swap and option swap. c. Forward and option less swap. d. Forward swap and option swap.

19. International Fisher Effect or generalized version of the Fisher effect is a combination of a. PPP theory and Fisher’s open proposition. b. Fisher’s open and closed proposition. c. PPP theory and Fisher’s closed proposition. d. None of the above.

20. Exchange rates are quoted as ‘direct’ and ‘indirect’ ,if the direct quote of a country ‘X’ (currency unit ‘a’) with country ‘Y’ (currency unit ‘b’), is “ a 50/ b 20” then the indirect quote will be a. b 2.5/ a 1 b. b 0.4/ a 1 c. b 10/ a 1 d. Cannot be calculated.

21. If the investors are risk neutral ie forward prices are equal to the expected spot prices at delivery then the covariance of marginal rate of substitution and the exchange rate of contract at delivery is Always unity Zero Infinite Between Zero and unity

1

Examination Paper of Finance Management

6. In cylinder or tunnel option, the correct option is a. If the spot rate is lower than the lower strike rate then buyer has to pay lower spot rate. b. If the spot rate is lower than the lower strike rate then buyer has to pay lower strike rate. c. If the spot rate is higher than the higher strike rate then buyer has to pay lower strike rate. d. If the spot rate is higher than the higher strike rate then buyer has to pay higher strike

rate.

7. The concept of parallel loan says a. Amount of the loan moves out of the county but it serves the purpose of internal loan

also. b. Amount of the loan moves out of the county but it serves the purpose of cross border

loan. c. Amount of the loan moves within the county and it serves the purpose of external loan

only. d. Amount of the loan moves within the county but it serves the purpose of cross border

loan.

8. According to one of the earliest theory proposed by Hymer on the imperfect market a. Multinational firm is a typical imperfect market. b. Multinational firm is a perfect market c. One should not look for control if want the maximum profit d. None

9. If the NVP(net present value) from parent’s perspective and from the subsidiary’s perspective are positive and negative respectively then a. Project cannot be accepted b. Project shall be accepted c. Project may be accepted but it is doubtful how far useful for parent unit. d. Project may be accepted but chance of loss in host country currency will be there.

10. If ‘A’ and ‘B’ are the price elasticity of demand for import and export respectively then devaluation helps to improve current account balance, only if a. 2A + B is greater than 1. b. A - B is equal to 0. c. A+B is greater than 1. d. A + B is lesser than 0.

Part Two:

1. Write a note on ‘Fixed Parity System’ for exchange rates.

2. What are Direct & Indirect Quotes of exchange rates?

3. What is ‘Forward Market Hedging’?

4. How could ‘Optimization of Portfolio’ be achieved?

2


END OF SECTION A


14 This section consists of Caselets. 15 Answer all the questions. 16 Each caselet carries 20 marks. 17 Detailed information should form the part of your answer (Word limit200 to 250 words).

Caselet 1

MANAGING EXCHANGE RATE RISK

Mahindra International (India) imported spares of an engine from a US manufacturer for $ 5,000 per annum at a price of $ 2.5 per piece. The average exchange rate during 2001-02 was Rs. 47.70/$. The Indian company imported the spares also from a British manufacturer. In fact, it had diversified its import in view of reducing the risk associated with the supply. The import from the USA was competitive in view of the fact the same spares imported from the UK was slightly costlier. The American spares cost Rs. 119.25 per piece, while the British spares cost Rs. 120.00 per piece. In 2002-03, US dollar appreciated to Rs. 48.40 with the result that the cost of American spares turned higher than the British spares. In the sequel of the appreciation of US dollar, the Indian importer cut its demand from 2,000 pieces to 500 pieces. The loss to the US exporter was colossal. But at the same time, the Indian Importer suffered a lot. It had to pay a higher price for the US spares in terms of rupee. And also, it had to divert its import from the USA to the UK insofar as the pound sterling did not appreciate during this period. All this happened in the wake of the exchange rate changes.

Mention the loss borne by the US exporter in the sequel of appreciation of dollar.

What strategy the Indian importer needs to follow to hedge the exchange rate risk?

Caselet 2

ABN AMRO BANK AND CORRESPONDENT BANKING IN INDIA

ABN AMRO bank has emerged as a major correspondent bank owing to a large network. In India, it operates in six major cities, viz. Baroda, Chennai, Kolkata, Mumbai, New Delhi and Pune. Being a correspondence bank, its product offerings are found primarily in the area of trade and clearing. It is doing well in these owing to strong tie-up with local Indian banks reaching 350 centres across the country. As a result, payments are effected speedily and effectively.

Cash Management

The customized products in the area of cash management include cheques payable at par at all its branches across the country, apart from traditional collection services, such as collection of outstation/upcountry cheques drawn on other banks. ABN AMRO is a member of all major clearing

3


centers in the major financial centers. It has an electronic delivery system and structures multilateral netting of cash.

Trade Services

Under trade services, the Bank offers a comprehensive range of products, such as:

3. LC reimbursement 4. Indian rupee trade payments 5. Handling documentary bills for collection 6. Bills negotiation 7. Letter of credit advising 8. Letter of credit confirmation 9. Guarantees

Treasury Services

Treasury services at ABN AMRO Bank (India) are available round-the-clock. Rupee funding at its treasury desk is provided at competitive rates along with advice on market trends and rates. It provides also advisory services on the request of financial institutions and corporate in the area of regulatory, economic and financial matters including depository services.

3. Describe the network of ABN AMRO Bank in India.

4. What role does it play for global cash management?

END OF SECTION B



a. Crawling peg is the compromise between fixed exchange rate and floating exchange rate discuss.

b. Is international working capital management more complex than the domestic working capital management?

END OF SECTION C

4

Security Analysis and Portfolio Management


• This section consists of Multiple choice questions & Short Answer type questions. • Answer all the questions. • Part One questions carry 0.5 mark each & Part Two questions carry 5 marks each.

Part One:

Multiple choices:

6. Covariance of the returns of security i and market portfolio is 270. Standard deviation of market portfolio is 15. Calculate β of security i. 1.2 2.4 3.0 3.8 4.2

7. In an economy the level of confidence can be gauged by examining the following factors. The current investment climate The current capacity utilization Overall economic conditions Financial performance of companies All of the above

8. Default free bonds can still have Price change risk Interest rate risk Marketability risk Political risk All of the above

9. The analyst should take into account the following characteristics while evaluating a company for investment purpose. Permanence Labor conditions Government policies and regulations Past earnings performance and future expectations All of the above

5


5. B1 and B2 group shares in BSE can be settled through a. Carry forward settlement b. Spot delivery c. Hand delivery d. Kerb trades e. None of the above

6. Which among the following factors are considered while conducting five factor ROE analysis? a. Pre-tax margin b. Operating margin c. Asset turnover d. Total leverage e. All of the above

7. The ratio of market capitalization to book value can be used as a proxy for a. ROE b. ROA c. EBIT d. EBDIT e. None of the above

8. A stop loss order is given when the market is a. Highly volatile b. Experiencing a downtrend c. Experiencing a bull run d. Inactive e. None of the above

9. The low exit and high entry barriers can be found in industries which have a. Low and stable returns b. Low but risky returns c. High and stable returns d. High but risky returns e. None of the above

10. Which of the following companies deal in commodities? a. HLL b. Reliance c. Wipro d. Grasim e. Both (b) and (d) above

11. Which among the following is unique to a security? a. Risk-free rate b. Risk premium c. Rates of expected inflation d. Nominal interest rates e. None of the above

6


2 To prove the independent nature of price changes in stocks, analysts conduct which of the following tests? 1. Auto-correlation tests 2. Residual analysis 3. Event studies 4. Runs test 5. Both (a) and (d) above

3 A “Connected Person” according to the SEBI Regulations, 1992 is defined as 1. A company under the same management 2. A merchant banker or a share transfer agent or a broker 3. An employee of a public financial institution 4. The company’s banker 5. All of the above

4 The slope of the CAPM line is also referred to as the 1. Systematic risk 2. Market price of the risk 3. Unsystematic risk 4. Both (a) and (b) above 5. None of the above

5 The risk of the whole market as measured by ‘Beta’ is 1. 1 2. 0 3. -1 4. Greater than 1 5. None of the above

6 Securities which are plotted above the SML line are 1. Underpriced 2. Those whose intrinsic value is equal to the market value 3. Overpriced 4. Favorable investments 5. Both (a) and (d) above

7 In India, the secondary market for shares is regulated by 1. RBI 2. Ministry Finance 3. SEBI 4. Company Law Board 5. There is no regulatory authority

8 Banker’s acceptances are traded in 1. Money market 2. Capital market 3. Derivative market 4. Forex market 5. None of the above

7


19. Which among the following is/are market determined? a. Havala rate b. Carry forward margin c. Badla charges d. Making up price e. None of the above

20. High growth rates in earnings and market shares is a characteristic of companies which are in a. Maturity stage b. Expansion stage c. Pioneering stage d. Declining stage e. None of the above

Part Two:

5. Explain ‘Discretionary Order’, a type of order available to stock traders.

6. What does ‘β’ (Beta) mean in risk measurement?

7. Define ‘Liquidity’.

8. What is ‘Beta Control’?

END OF SECTION A


5. This section consists of Caselets. 6. Answer all the questions. 7. Each caselet carries 20 marks. 8. Detailed information should form the part of your answer (Word limit 200 to 250 words).

Caselet 1

18. Which company do you think in India confirms to the traditional explanation of why firms grow?

19. Which company do you think in India has improved its valuation after focusing on its core competencies.

9


Caselet 2

1. How does the introduction of rolling settlement complement the stock being traded in the demat format?

2. What are the advantages to the company whose shares are traded in the demat form?

END OF SECTION B


This section consists of Long Questions. Answer all the questions. Each question carries 15 marks. Detailed information should form the part of your answer (Word limit 150 to 200 words).

1. Investment in bond assures the investor a fixed return with some element of risk. Elaborate on the various risks involved in bond investment and recommend the techniques to reduce these risks.

2. Explain where in the companies resort to manipulative accounting techniques with respect to the following areas.

Operations Research


Part One:

Multiple Choices:

22. In case of (<=) inequality, to convert the inequality to an equation, we used to add a slack variable to the left hand side of the constraint, this slake variable should be a. Negative b. Positive c. May be positive or negative d. Zero

23. In a set of m Χ n equations (m<n) the maximum number of corner points is given by…………………

24. According to penalty rule for artificial variables, the objective coefficient of the artificial variable represents an appropriate penalty, positive or negative depending on the problem, but the necessary condition required to hold this is, the value should be a. ∞ b. 0 c. 1 d. None

25. The cases of the Simplex method in which the value of the variables may increased indefinitely without change in the constraints is a. Degeneracy b. Alternative optima c. Unbounded solutions d. Nonexisting solutions

26. An arc in network model is said to be ‘Directed’ if it allows positive flow in one direction and a. Negative flow in negative direction b. Zero flow in negative direction c. Negative flow in perpendicular direction d. None

1

Examination Paper of Operations Management

10 PERT stands for……………………………………………………………………………………..

11 In preemptive method for goal programming , the optimum value of a higher priority goal is never degraded by a lower priority goal.(T/F)

12 The column dropping rule does not guarantee the non degradation of higher priority goals.(T/F)

13 The additive algorithm developed by E Balas for solving ILP problems was based on pure binary variables.(T/F)

14 According to inventory model for commodity possession for smooth business operation, Holding cost represents d. Price per unit of an inventory item. e. The fixed charge incurred when an order is placed regardless of its size. f. The cost of maintaining inventory in stock. g. None.

Part Two:

25. What do you understand by ‘Degeneracy’ found in using simplex method?

26. What do know about ‘The Balancing of Transportation Model’? If unbalanced then remedy?

27. Explain ‘Vogel Approximation Model (VAM)’?

28. Explain ‘Dijkstra’s Algorithm’ for routing?

END OF SECTION A

Section B: Practical Problems (40 marks)

This section consists of Practical Problems. Answer all the questions. Each Practical Problem is of 10 marks.

1. The stock of WalMark Stores, Inc., trades on the New York Stock Exchange under the symbol WMS. Historically, the price of WMS goes up with the increase in the Dow average 60% of the time and goes down with the DOW 25% of the time. There is also a 5% chance that WMS will go up when the Dow goes and 10% that it will go down when the Dow goes up.

a) Determine the probability that WMS will go up regardless of the Dow. b) Find the probability that probability that WMS goes up given that the Dow is up? c) What is the probability WMS goes down given that Dow is down?

2


27. Prove that if the probability P {A/B} = P {A}, then A and B must be independent?

28. Tasco Oil owns a pipeline booster unit that that operates continuously. The time between breakdowns for each booster is exponential with a mean of 20 hours. The repair time is exponential with mean 3 hours. In a particular station, two repairpersons attend 10 boosters. The hourly wage for each repairperson is $18. Pipeline losses are estimated to be $30 per broken booster per hour. Tasco is studying the possibility of hiring an additional repairperson.

a. Will there be any cost savings in hiring a third repairperson? b. What is the schedule loss in dollars per breakdown when the number of repairpersons on

duty is two? Three?

29. Cars arrive at a one-bay car wash facility the interarrival time is exponential, with a mean of 10 minutes. Arriving cars line up in a single lane can accommodate at most five waiting cars. If the lane is full, newly arriving cars will go elsewhere. It takes between 10 and 15 minutes, uniformly distributed, to wash a car. Simulate the system for 960 minutes, and estimate the time a car spends in the facility?

END OF SECTION B

Section C: Long Answers (30 marks)

g. This section consists of Long answer type questions. h. Answer all the questions. i. Each Question carries 10 marks.

5 Define Transportation Model and its variant in brief?

6 Explain in detail Game Theory. Support you answer examples?

END OF SECTION C

Logistics Engineering and Management


32. This section consists of Mixed Type questions & Short Answer type questions. 33. Answer all the questions. 34. Part One questions carry 1 mark each & Part Two questions carry 5 marks each.

Part One:

Multiple Choices:

8. Analysis method in which evaluation of alternative design configuration using multiple criteria is Level of repair analysis Maintenance task analysis Evaluation of design alternatives None of the above

9. Orientation of Logistic are Product among organization Total benefits among organization Towards managing of labour Towards managing the physical flow of material & product among organization

10. LMI stands for Logistics Management Information Legal Management Information Logistics Managerial Information None of the above

11. Technical performance measures (TPMs) is applied for Evaluation of prime mission related system & elements for expenses Evaluation of prime mission related system & elements for labour Evaluation of prime mission related system & elements for support None of the above

12. System structure should facilitate Design on an evolutionary basis Design a system with in a minimum cost Design on an evolutionary basis & with minimum cost Both (a) & (b)

13. Conceptual design is initiated in response of Identification of customer need Identification of consumer demand Identification of Industry demand

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None of the above

12. Industrial engineering refers to a. Design & development of a product b. Design & development of industrial tools c. Design & development of expenses d. Design & development of production capability

13. Contractor logistic support (CLS) refers to a. System maintenance activities b. System evaluation activities c. Both (a) & (b) d. None of the above

14. Discounting refers to a. Application of selected rate of interest b. Application of selected difference measure c. Application of selected of interest & measure differences d. None of the above

15. A plan which is directed towards covering of logistic support for a system is a. System Retirement Plan b. Post production Support plan c. Facilities plan d. Computer Resource plan

Part Two:

9 Personal training requirement are based on what factor?

10 What is meant by Design criteria? Provide some examples?

11 Briefly describe evaluation of logistics’ elements?

12 What are the advantages & disadvantages of functional organization?

END OF SECTION A


This section consists of Caselets. Answer all the questions. Each caselet carries 20 marks. Detailed information should form the part of your answer (Word limit 200 to 250 words).


Caselet 1

Company Profile

2. Analyze the case in view of the logistics outsourcing practices of the ISL2. Discuss the importance of logistics outsourcing with reference to supply chain management?

Caselet 2

Introduction

1. What modification would you suggest in enhancing the existing logistics system?

2. Critically analyze the efforts of ABC in launching generic versions of products going off patents?

END OF SECTION B


This section consists of Long Questions. Answer all the questions. Each question carries 15 marks. Detailed information should form the part of your answer (Word limit 150 to 200 words).

1. Define Logistic support in the context of the production /construction phase. What are the elements of Logistic support?

2. Define reliability & maintainability. What are their major characteristics?

Six Sigma Green Belt


· This section consists of Multiple Choice questions. · Answer all the questions. · Each question carries 1 mark.

Part One:

Multiple Choices:

27. The primary purpose of a control chart is to: a. Set Specifications and tolerances b. Compare operations. c. Determine the stability of a process. d. Accept or reject a lot of material

28. When a control chart is used on a new process, capability can be assessed at which of the following times? a. Before the chart is first started b. After the first ten points are plotted c. When the plotted points hug the centerline d. After the process is shown to be in control

29. Precision is best described as: a. A comparison to a known standard b. The achievement of expected outgoing quality c. The repeated consistency of results d. The difference between an average measurement and the actual value

30. The overall ability of two or more operators to obtain consistent results repeatedly when measuring the same set of parts and using the same measuring equipment is the definition of: a. Repeatability b. Precision c. Reproducibility d. Accuracy

31. Which of the following conditions must be met for a process to be in a state of statistical control? a. Most of the product out by the process is in specification. b. All subgroup averages and rang are within control limits. c. All variation has been completely removed d. Previously optimal process settings are used.


15Which of the following measures of dispersion is equal to the sum of deviations from the mean squared divided by the sample size? d. Range e. Standard deviation f. Variance g. Mode

16An X and R chart is used to: d. Indicate process variation e. Specify design Limits f. Interpret costs g. Identify customer expectations

17Which of the following is the most useful graphical tool for promoting and understanding the process of capability?

d. A flowchart e. A histogram f. An affinity diagram g. An Ishikawa diagram

18The type of chart that presents the value of items in descending order is a: d. Histogram e. Pareto chart f. U chart g. Cusum chart

19 Measures of which of the following provide attributes data? d. Temperature in degrees e. Attendance at meetings f. Weight in pounds g. Length in metric units

20 The fraction of nonconforming products is plotted on which of the following types of control chart? d. P chart e. U chart f. Np chart g. C chart

21 A cause and effect diagram is a useful tool for doing which of the following? d. Determining the flow of a process e. Detecting shifts in a process f. Developing theories based on symptoms g. Arranging theories by defect count

22 Which of the following statistics would best describe the central tendency of a sample of data? d. Mode e. Mean f. Standard deviation g. Range


29. Which of the following type of tools or techniques is considered qualitative? a. Histogram b. Frequency distributions c. Pareto chart d. Process observations

30. Out of the following which technique is most useful in narrowing issues and limiting discussion? a. Brainstorming b. Quality function deployment c. Cause and effect analysis d. Mutilating

31. In statistics, an estimation error that is persistent or systematic is called: a. Bias b. Sensitivity c. Random d. Shift

32. For a normal distribution, two standard deviation on each side of the mean would include what percentage of the total population: a. 47% b. 68% c. 95% d. 99%

33. If a distribution is normal, u=50 s=15, what percentage of data will be less than 30? a. 59.18% b. 40.82% c. 9.18% d. 1.33%

34. A company is receiving an unusually high number of returns from various customers. The first step in investigating the problem would be to a. Check the inspection records b. Establish the correlation of the returns to shipments c. Brainstorm the potential causes d. Classify the returns by type and degree of serious

35. Which of the following is the best definition of a flow chart? a. A diagram used to structure ideas into useful categories b. An illustration used to analyze variation in a process c. A picture used to separate steps of a process in sequential order d. An analytical tool used to clarify opposing aspects of a desired change

36. Which of the following activities would NOT contribute to the effective functioning of a team? a. Eliminating unnecessary activities b. Development team performance measures c. Defining process in detail d. Monitoring each member’s performance

3


18 What is the standard deviation of the population-10, 4, 16, 12, and 8? a. 4.00 b. 4.47 c. 16.00 d. 20.00

19 Which of the following tools would be most appropriate for collecting data to study the symptoms of a problem? a. Check sheet b. Flow diagram c. Force-field analysis d. Activity network diagram

20 Which of the following measures is a sufficient statistic for the parameter u? a. Median b. Mid-range c. Mean d. Mode

21 Positional, cyclical, and temporal variations are most commonly analyzed in: a. SPC charts b. Multi-vari charts c. Cause and effect diagram d. Run charts

22 Which of the following describes the deming method for continuous improvement? a. Cost of quality analysis b. Process map c. Tree Diagram d. Plan-do-check-act cycle

23 In analysis of variance, which of the following distribution is the basis for determining whether the variance estimates are all from the same population? a. Chi square b. Students c. Normal d. F

24 Which of the following statement best describes the set of value of a random variable? a. It is finite. b. It is an interval c. It can be discrete or continuous. d. It can be tracked by using control charts or scatter plots.

25 Which of the following is the best description of randomization? a. A technique used to increase the precision of an experiment b. A means of assuring representative sampling c. The repetition of an observation or measurement d. The relationship between two or more variables

4


30. When the order of items is not important, which of the following method is used to determine the number of sets and subsets of items? a. Combination b. Permutation c. Factorization d. Simulation

31. Scatter diagrams are best described as: a. Histograms. b. Correlation analysis. c. Pareto analysis. d. Ishikawa diagrams.

32. A __________ is created to determine customers of a specific process. a. Pareto chart b. Flow diagram c. Cause and effect diagram d. Scatter diagram

33. A production line uses signs at specific points on the line to indicate when components or raw materials need to be replenished. This practice is an example of: a. Kanban b. Poka-yake c. Checkpoints d. Hoshin

34. Which of the following is a good tool for planning cycle time reduction and concurrent operations? a. A timeline b. A Pareto diagram c. An X and R chart d. A PERT chart

35. Attribute and variable data are best described as which of the following? a. Counted values measured values b. Counted values visual features c. Measured values counted values d. Visual features counted values

36. All of the following are common ways for people to react to conflict except: a. Competing b. Collaborating c. Avoiding d. Sabotaging

37. A quality manager has chosen to survey customer satisfaction by taking samples based on the categories of frequency of use, categories of use, and demographic. This technique is known as a. Random sampling b. Data collection c. Stratification d. Customer classification

5


7 Which of the following actions is Not used to reduce process cycle time? c. Analyzing current processes d. Reducing queue times e. Setting priorities f. Implementing activity-based costing

8 A company’s accounts payable department is trying to reduce the time between receipt and payment of invoices and has recently completed a flowchart. Which of the following tool is the next to be used by them? c. Fishbone diagram d. Scatter diagram e. Box and whisker plat f. Histogram

9 In a manufacturing company, the machine shop is what kind of customer in relation to the Human Resource department? c. Intermediate d. Hidden e. External f. Internal

END OF SECTION A


35. This section consists of Short Notes Questions. 36. Answer all the questions. 37. Each Question carries 6 marks.

14. Describe how QFD fits into the overall DFSS process.

15. What is interrelationship Digraph? Explain it with example.

16. Find the area under the standard normal curve between +1.50 standard deviations and +2.50 standard deviations.

17. Define terms related to One-Way ANOVA and interpret their results & data plots.

18. Define & describe the use of Rational Sub grouping.

END OF SECTION B

6




3. Suppose you are cooking steak for 100 people, & the current approval rating is 75% acceptable. You want to know the affect of different methods and approaches to see how the overall approval or “yield” is affected. By using the Full Factorial method explain how the overall approval or “yield” is affected.

4. Interpret Control Charts? Distinguish between common & special causes using rules for determining stastical control.

END OF SECTION C

7


Six Sigma Black Belt


· This section consists of Multiple Choice questions. · Answer all the questions. · Part one questions carry 1 mark each & Part Two questions carry 2 marks each.

Part One:

Multiple Choices:

1. Calculate the estimated variance of the population from which the following values have been randomly selected: 2.8 2.7 2.6 2.9 2.8 2.8 2.8. a. 095 b. 009 c. 088 d. 008

8. The mean, median and mode of a distribution have the same value. What can be said about the distribution?

a. It is exponential b. It is normal c. It is uniform d. None of the above

9. Approximately what percent of the data values are smaller than the mean? a. 25% b. 50% c. 75% d. None of above

4. A normal probability plot is used to: a. Determine whether the distribution is normal b. Plot Z value c. Determine process capability d. It percent out of specification

6. Nominal Group technique is used to: a. Help a group reach consensus b. Generate a group on new ides c. Provide a consistent stable group leadership d. Provide a name for the group

8


20. An example of a project metric would be: a. The decrease in defect occurrence b. The decrease in product cost c. The decrease in cycle time d. All the above

21. A correct statement about the relationship between the terms parameter and statistic is: a. A population statistic is more accurate than a parameter b. A sample parameter is used to estimate a statistic c. A sample statistic is used to estimate a population parameter d. Standard deviation calculation requires both statistics and parameters

22. A and B are events. P(A) = 0.80 and P(B) = 0.90: a. Events A and B are disjoint or mutually exclusive b. Events A and B are not disjoint or mutually exclusive c. P (A and B) = 0 d. P(A and B) = 1.7

23. In a certain sampling situation, a=0, b=0.08. the power of the sampling plan this case is: a. 0 b. 0.08 c. 1.00 d. 0.92

24. A newspaper article describes a high positive correlation between obesity and orange juice consumption among six-year-old children’s. Parents who restrict the use of orange juice for their children have: a. Made a type I error b. Made a type II error c. Misunderstood margin of error d. Confused correlation with causation

25. In an experimental design context, replications refer to: a. Duplicating experimental result at another location b. Repeating a test with the same factor levels c. Obtaining the same or similar result from different factors d. Repeating an experiment but using at least one different factor level

26. Find the upper control limit for a range chart if n=4 and the average range is 2.282. a. 2.282 b. 4.564 c. 5.208 d. 3.423

27. An x-bar control chart been established with control limits of 3.245 and 3.257, n=5. An engineer collects the following sample and plots the average on the control chart: 3.257, 3.256, 3.258, 3.259 a. The process is out of control b. The process is not out of control c. The engineer misused the control chart d. The control limits are incorrect

9


22. TEIZ is an acronym which refers to: a. A set of problem solving tools b. An organization of quality professionals c. An experiment using transitional results d. A Russian general responsible for creative thinking

23. A robust design is one which; a. Has high reliability b. Has low maintenance frequency c. Is simple to manufacture’ d. Is resistant to varying environmental condition

24. A frequent cause of system sub optimization is: a. Optimizing individual process b. Failing to draw a system flow chart c. Using data with outliers d. Failing to consider the normal distribution

25. The x2 distribution is: a. Symmetric b. Left skewed c. Right skewed d. Normal

26. An advantage of using standard deviation rather than range for measuring dispersion of a large sample is that: a. Standard deviation has a simpler formula b. Calculators have a standard deviation key but not a range Key c. Standard deviation uses information from each measurement d. Range calculation are not normally distributed

27. The team development stage characterized by expression of individual opinions and ideas often without regard for team objectives is known as: a. Performing b. Norming c. Conflicting d. Storming

28. SMED is an acronym for activity that: a. Involve housekeeping in the work area b. Makes mistake of a certain type impossible c. Emphasizes the pull of the customer d. Reduces set up the time

29. A principle advantage of fractional factorial experimental designs is: a. Reduced cost b. Improved accuracy c. Increased confounding d. Higher confidence level

10


23. Dr. W Edwards Deming: a. Lectured in Japan after World War II b. Was an author of several books in the US c. Is considered an expert in the quality field d. All of the above

Part Two:

25. What percent of population falls below the lower specification limits? a. 9.18% b. 22.66% c. 6.68% d. 1.83%

26. Find the mean, median and mode of the following data set: 9, 11, 12, 14, 18, 18, 18, 20, and 23: a. 15.5, 18, 18 b. 15, 14, 18 c. 15, 12, 18 d. 15.5, 16, 18

Use for problems 25-27:A B Res.

1 - - 202 - + 303 + - 404 + + 50

28. Calculate the main effect of factor A: a. 20 b. 25 c. 30 d. None of the above

29. Calculate the interaction effect: a. 20 b. 25 c. 40 d. None of the above

30. If it is desirable to maximize the response R, the following levels should be used: a. A+ and B+ b. A+ and B- c. A- and B+ d. None of the above

11


Use for questions28-30:

Here is an experimental design with result:

A B C

1- - +

2 - + -

3 + + +

4 + - -

Responses

10 11 10

22 20 23

34 36 37

26 25 25

32. This experimental design is: a. Full factorial b. Half factorial c. Quarter factorial d. None of the above

33. The number of factors, levels and replications: a. 3, 3, 3 b. 3, 2, 2 c. 3, 2, 3 d. None of the above

34. An indication of the experimental error is available because the design has: a. Multiple replications b. Multiple levels c. Multiple factors d. None of the above

35. The average number of defects is 21.6. Find the upper control limit for the C-chart. a. 26.4 b. 24.6 c. 26.2 d. None of the above

END OF SECTION A


· This section consists of Short Notes Questions. · Answer all the questions. · Each Question carries 6 marks.

3. Briefly define Affinity Diagram with an example.

4. By using imaginary figures draw a Run Chart.

12


6. Consider the following data & develop a normal probability graph paper & normal probability plot:

7.9, 9.7, 10.6, 12.7, 12.8, 18.1, 21.2, 33.0, 43.5, 51.1, 81.4, 93.1

7. A painting process produces coatings with a thickness of 0.0005 & a standard deviation of 0.00002. What should the tolerance limits be for this process? Briefly explain Tolerance design?

8. What is Pugh matrix? State the steps which are used in Pugh matrix.

END OF SECTION B



3. Define & describe the purpose of root cause analysis? Recognize the issues involved in identifying a root cause analysis and list various tools for resolving chronic problem?

4. Describe the purpose & elements of FMEA including risk priority number (RPN), and evaluate FMEA results for processes, products, & services. Distinguish between design FMEA (DFMEA) & process FMEA (PFMEA) and interpret results from each.

END OF SECTION C

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