Term III - End Term
Term III - End Term
Term III - End Term
Instructions:
a. This question paper contains __FOUR (4)___ Pages
b. Possession and use of cell phone is prohibited
c. Only Non-Programmable calculator can be used
d. Be brief and to the point in the response
e. State assumptions made, if any
f. Answer all questions
g. Marks are indicated in the right hand parenthesis against each question.
a. What percentage of people use Phone for surfing Social media? (4 Marks)
b. What percentage of people who access social media do it on Laptop? (4 Marks)
c. What percentage of people who engage in online buying do so on Tablet? (4 Marks)
d. What percentage of people use Laptop for various online activities? (4 Marks)
2. Given below is the output of the Multivariate regression analysis showing the effect of the Green price,
Green Products ,Green Place and Green Promotions on Green Purchasing.
a. Which variable is the most important variable to impact Green Purchasing? (4 Marks)
b. Which is the least important variable to affect Green Purchasing? (4 Marks)
c. Write the Regression Equation to predict Green Purchasing (4 Marks)
a. Based on Eigen Values method, How many Factors are extracted? What is the cumulative %
Variance explained by those factors? (4+4 Marks)
b. Based on Rotated Component Matrix, How many factors are there? Make a table and club the
statements as per the different factors. Also, appropriately name the factors. (4+4+4 Marks)
4. Consider yourself as the marketing manager of Luxury watch brand ZUCCI , the brand is looking for new
growth areas. After As a marketing manager, your task is to get the marketing research done. For this you
need to give a research brief to the marketing research agency. Design a research brief with specific on
following points
a. What are the key questions to cover in the questionnaire (Give 6 to 10 questions as guideline) to
be answered on a Likert scale? (4) Marks.
b. What demographics information to be collected about the respondent? (4) Marks.
c. What are the key attributes on which you would like brand ZUCCI to be compared with
competition? (6) Marks.
d. Suggest the statistical tools you would like to use the agency to use to providing you the result.
Describe which tool will help you answer which question? (6) Marks.
5. Sridhar from Bangalore, had developed an electric car-VERVE (It is fully automatic, no clutch, no gears), two
door hatch back, easily seating two adults and two children with a small turning radius of just 3.5 meters).
It runs on batteries and as compared to other electric vehicles, has an on-board charger to facilitate easy
charging which can be carried out by plugging into any 15-amp socket at home or work. A full battery charge
takes less than seven hours and gives a range of 80 km. In a quick –charge mode (two-and-a-half hours) 80
percent charge is attained which is good enough for 65 km. A full charge consumes just about 9 units of
electricity. Somehow the product did not take off the way he expected. He is contemplating about
repositioning the car. As he stood looking at the prototype, he knew that there were a couple of questions
to which he must find answers before he undertook the repositioning exercise. Who should be the targeted
segment –old people, young student just going to college, house wives? What should be the positioning
stance? What kind of image would these customers relate to? Was a new name or punch line required?
How should the promotions be undertaken? Hyundai had done it with Shah Rukh Khan, should he also
consider a celebrity? If yes who?
1) What kind of research study should Sridhar undertake and why? (6 Marks)
2) Define the objectives of his research. (4 Marks)
3) Do the stated objectives have scope for a qualitative research? If yes, then why? (4 Marks)
4) Which research method would you recommend and why? (6 Marks)
FORE School of Management, New Delhi
Post Graduate Diploma in Management (FMG29/IMG 14/FM 03/BDA 01)
End-Term Examination, Term - 3 (2020-2021)
Employee Relations – Legislations & Compliance
Q2 Read the following situations and then explain if these amount to strike in 5x5= 25
terms of ID Act, 1947 or not:
a) Shri Ram Fibres has a factory manufacturing bulk drugs at Manesar.
The Factory employs 250 employees. A few employees of the testing
laboratory in the factory were having some issues relating to
deployment of workers in the shifts. The previous day, they had a
heated discussion with the Shift Manager who point-blank refused
the employees’ suggestion. The employees left, threatening to escalate
the conflict to the level of HOD and the Unions. Most of the
employees commuted from a nearby village, using public transport.
The next day, due to an accident on the NH 8, the traffic was held up
and 6 of the employees could not report for the shift. They could not
inform the shift manager also since there was no means of contacting
him from the highway (a no signal area). Next day when they reported
for duty they were surprised to see that they have all been issued with
a charge sheet accusing them of ‘striking work’ without notice.
b) The bus conductors of Delhi Transport Corporation went on a flash
strike because one of their members was assaulted by a drunk
passenger. They were demanding adequate protection for bus staff
on night routes and also for pressurizing police to take action against
1
the passenger. The Chief Operating Officer of DTC told the
employees the strike was illegal since as per rules of the company and
the ID Act, 1947, the striking employees were to give notice. They
cannot go on a flash strike.
c) The sewerage maintenance staff of MCD (South-West Zone) went
on a strike after giving a week’s notice to the Zonal Executive
Engineer (Public Health). They were demanding parity in incentive
scheme with the staff in other zones. The Executive Engineer
declared the strike illegal and informed the concerned Assistant
Labour Commissioner of the area.
d) Majestic Electrosmelt Limited blends precious metals in molten steel
to make special alloys. It is a Factory within the meaning of the
Factories Act. For the past few months, a dispute had been going on
between the Management and the Unions regarding a wage increase.
Since the issue was complex, both parties had asked the local
Assistant Labour Commissioner to conciliate between them. The
Conciliation Officer had called several meetings but the problem was
no way near to resolution. After the last meeting, the Union gave a
15 days’ notice of strike. The management and the labour department
both condemned the Unions action and said this was illegal and
amounted to coercive tactics when the negotiations were on.
e) The Bank Employees’ Federation, representing the bank Tellers, gave
a 14 days’ notice for strike. The Management immediately convened
a meeting of the Union and started discussing the issues with the
Union. The meetings stretched for about 2 months but no settlement
could be reached. After 2 months, the Union went on a strike.
2
FORE School of Management, New Delhi
Post Graduate Diploma in Management
End Term Examination Term- 1II (2020-2021)
Business Analytics II
Time:2 Hours Max Marks: 100
Instructions: a. This question paper contains_8 Pages
b. Possession and use of cell phone is prohibited
c. Only Non-Programmable calculator can be used
d. Be brief and to the point in the response
e. State assumptions made, if any
f. Answer all questions
g. Marks are indicated in the right hand parenthesis against
each question.
h. You have to make use of excel solver/regression using excel for question
1 & 4.
i. You need to attach the supporting excel sheets with solver/regression
output for question 1 & 4 along with your answer script.
j. Z table is given along with the paper
Question 1 ( 40 Marks)
Note: In part c you are required to compute early start, late start, early finish and late finish and
available slack for all the activities after crashing.
Question 2 ( 25 Marks)
Concerned with the increase in plastic water bottles in landfills, a leading environmentalist wants to
determine whether there is any difference in taste between the local tap water and leading bottled
water. She randomly selects 14 consumers and conducts a blind taste test. She asks the consumers
to rank the taste on a scale of one to five ( with five indicating “excellent” taste ). The sample results
are shown in the accompanying table.
Question 4 ( 20 Marks)
Instructions
1. This question paper contains 6 Pages and 3 exercises.
2. Individual total marks for each exercise and its component questions have been
indicated in the right hand parenthesis against each exercise.
3. Attempt all exercises. Be brief and to the point in the responses. Figures should be
rounded to 2 nearest decimal points wherever required, unless otherwise advised.
4. Formulae and computations should be confined to rough work. Only Final results
should appear in the main body of the answers.
5. Do not mix the answers and the rough work.
6. State assumptions made, if any.
7. Answers given in pencil will not be evaluated.
8. Possession and use of cell phone is prohibited.
9. Only Non-Programmable calculator can be used.
WHY consolidated reporting in addition to standalone reporting? Answer in bullet points. Answer not
to exceed 1 page.
Ex. 2: CASE: Procter & Gamble Hygiene and Health Care Limited: Related Party 25 M
Transactions (RPTs)
2A. The following details have been extracted from Note 32 to the 2019-20 annual report of
Procter & Gamble Hygiene and Health Care Limited regarding related party disclosures.
(b) Other parties with whom transactions have taken place during the year:
Relationship Name of the Company
Fellow subsidiaries 34 companies
Key managerial Total 8. (1 MD, 5 non-executive directors, 1-CFO. 1-
personnel Compny secretary)
(c) Details of related party transactions between the Company and its related parties
are as under: `
S. Nature of Transactions Rupees in lakhs
No. Ultimate Holding Fellow Subsidiary Key Managerial
& Holding Companies Personnel
Company
2019-20 2018-19 2019-20 2018-19 2019-20 2018-19
1 Purchase of Goods 594 514 2,070 16,130
2 Purchase of Equipment/ 1,003 695
Assets/Spares
3 Sale of Products 1,297 756
4 Sale of Capital goods 431 54
5 Loans Given 9,000 9,000
6 Loans Realized 18,000 9,000
7 Interest income 346 794
8 Recovery of Expenses 2,134 530 3,378 4,070
Cross charged
9 Expenses cross-charged 534 407 2,167 1,805
10 Reimbursement of 2,64 1,943
expenses shared by
group cos. (Income)
• The sales to and purchases from related parties are made on terms equivalent to those that prevail
in arm’s length transactions.
• Outstanding balances at the year-end are unsecured and interest free and settlement occurs in
cash.
• There have been no guarantees provided or received for any related party receivables or payables.
• The Company has not recorded any impairment of receivables relating to amounts owed by
related parties in the current year or prior years. This assessment is undertaken each financial
year through examining the financial position of the related party and the market in which the
related party operates.
10. In your judgement how much P & G India ltd. has lost to its parent
on account of interest free loan given?
Aarti & Rahul Beer Ltd. is a well-established listed company in the beer business. It sells its beer under
the proprietary ‘Rahul Beer’ brand name. The CEO of the company, Aarti Rathore, is convinced that
after being in the business for more than ten years, the company and its ‘Rahul Beer’ have earned a certain
amount of reputation and preference in the market. She is therefore inclined to carry out a financial valuation
of the brand ‘Rahul Beer’. She appoints a brand valuation expert firm Kriti Jain Intangibles Valuation
Pvt. Ltd. and discusses her intent with its managing director Kriti Jain. Kriti accepts the assignment for
brand valuation and asks Aarti to provide certain information to carry out her assignment.
A. Financial information
The extracts from the financial statements of the company, historical for March/2020 and March /2021 and
forecasts for next 5 years are given here:
Rs. crore
Historical Forecasts
Particulars Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Mar-26
Equity 160 200 200 200 200 200 200
Other equity 35 25 54 100 143 199 255
Noncurrent borrowings 60 50 40 40 30 20 10
Rs. crore
Historical Forecasts
Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Mar-26
Sales 750 804 868 879 958 1043
Other operating income 10 12 12 14 14 15
Other income (non-operating) 12 15 15 18 18 21
Total income 772 831 895 911 990 1079
Total expenses other than interest
on Noncurrent borrowings 697 744 787 793 853 927
Profit before interest,
75 87 108 118 137 152
extraordinary income and tax
Less: Interest on Noncurrent
6 5 4 4 3 2
borrowings
Extraordinary income/(loss) 5 5 -6 -4 2 3
PBT 74 87 98 110 136 153
Tax expenses 21 25 27 30 39 43
PAT 53 62 71 80 97 110
C. Marketing information
1. Through extensive market research under the guidance of Kriti, portion of purchase decision
attributable to brand, i.e., Role of Brand (RBI) Index has been worked out to be 70%.
2. Through extensive market research, brand strength score, that is, ability of the brand to create
loyalty and keep demand and profit growing in the future is estimated to be 56% by Kriti
further in consultation with the internal valuation team, consisting of senior managers from the
finance and marketing departments of the company.
3. Kriti decides to link the brand strength score with the highest risk free rate of return prevailing
in the Indian capital market. The current long term (5-year) government of India bond yield rate, that
is, the highest risk free earning rate, is 5.59%. A brand strength score of 100% will qualify for this rate
E. Analysis Required
1 Place yourself in to the shoes of Kriti to carry out a financial valuation of the Rahul 35 M
Beer brand following the Interbrand approach in a tabular format.
2 Suppose you were the CEO of the company, why should you decide to value your 15 M
company’s brand over and above the reason given in the beginning? More specifically
does the brand value enhance your business prospects? Can that be measured?
……………..
Please read the Case titled "Kalaakaar Group's Re-manifestation" and answer the questions
"Kalaakaar'' reads the nameplate ofRazu's otherwise shabby-looking house. It was not always like this.
Razu was born and brought up in Howrah. The lanes down the town were always beautifully decorated
by local artisans. Not for money. Just an expression ofinner joy as an artist. Now that is something with
the power to catch the imagination of a c}Jild. He always wondered if the moonlit nights can throw
colors in air that condense by the morning-leaving a rainbow on the streets. The power of colors is
Soon he started getting imbibed into the world of colors. He would lovingly accompany the artists as
an unofficial assistant. It was learning by observation. Although he was not happy the way, the artists
were treated by the bypassers and the locals. He would feel the sacred job deserves much more dignity.
He would, at times, shout and scream at those who would ill-treat these artists. Being a kid, that would
not help him much, as he would be chased away with a stick. All this was leaving an impression
nonetheless.
He moved to another city after high school. The family had to relocate. For Razu, this had brought an
intense feeling of separation. He was feeling nostalgic. Now all he would.s.e.e around him was yellow-
-
colored taxis, high rise buildings, and a crowd of people around him. A completely new world for him.
He would play with boys from his school who would be keen to hear his stories. A Pandora box for
them. Stories of his real encounters with art. Also, narrations about fascinating people. He had this
Page 1 of 4
One day the boys told him to recreate his old experiences. They decided to meet in the evening with
boxes of colors. Whatever each one of them could find in their cupboards, Amirah, or under the study
table. Some colors had dried up. But little drops of water were sufficient to bring them back to life.
Razu would dip his finger •in the color and would guess how old the packaging is. The boys would
surprise. The plan for the day was to recreate their stories. The ones they had heard and the ones they
were planning to write. As the.moon appeared on the horiz.on, there were long queues of taxis-all
parked for the next morning. The boys went to work. They recreated the stories they were hearing, had
heard, and would like to hear - onto the canvas - the taxi doors. They knew this is going to be crazy.
A few months later, the boys were in high spirits. They had created a trend in the city. The art wasn't
the revolution, but it's acceptability was. This unique art was trending on the covers of the newspapers.
Peopie were excited as their children were being invited by tax:i ownenrto draw novelty on their taxi
doors. The children would get mithai (sweets) in return for their efforts. The stories they would create
were sweeter, though. However, no one could understand them easily except for the artist herself.
Razu entered college. He was there to gain systematic training in fine arts. The teachers were opening
a world of possibilities for Razu. He was glad to have people with similar mindsets and likings in his
------
~l_ass. It was a lovely workgroup. They would represent the college during inter-university competitions.
Winning the zonal trophy-was a IU.O£al ~ic~ory for Razu. The team wanted to try something modern. But
Razu had stuck to the indigenous ideas. He r~b~lle<LThe gron~ conceded to him only because they
. ~-- - .
liked his nature, not for his opinion.
Whenever he would win a competition, he would shout out loud, "Kalaakaar hi kalaakaar ko samjha"
(An artist could understand an artist). He was entering the mainstream business slowly and leaving a
mark as an artist hired on contract. Mostly these would be pointed task-based projects. There was not
much scope for creative liberty. The execution was the key to such projects. Razu would generally
consult Trinal, who· had a knack of cutting on the cost by bringing in lean method to art. He would
preve;it Razu from 9yer~$pendi.ng out of emotional attachment to the projects. Trinal was indispensable,
especially towards the end phase of projects. Trinal's wife was interested in art but wasn't willing to
pursue it fulltime, given the uncertainty involved in each project.
Razu would often tell her that the beauty of art lies in its uncertainty. The same argument that he would
often present to Ms. Sampson, his favorite teache~ at a ~~llege. Given these unique arguments,
he was quite famous in college. His fame had brought diverse projects to him. Often he would share
these projects with classmates or delegate to his juniors at college.
~ t was during this time that he had bought a big house. All his friends together came to paint the house
ftJ!'U
; u with their signature styles. The house was a hub of ideation. Long discussions over coffee and longer
working hours to implement and execute. The core group of ten artists had undertaken a plethora of
projects with a diverse range from different industries. The group performed well because they would
stick to their core strength around "colors." They had a good network developed over the years.
----
Page 2 of4
2t
nes had peaked for the group. Soon, Trina] had to shift his base c. ll . . . .
Also, over time, art became commoditized. The game had shifted to rn• c.Wing •hJS wife's Job
Tb•sfer.
wrtu 0 0
nan
d standardiz.ed solution templates. The artists doing custom'zed k anu,acturmg
. excellence
an from the limelight that they once enjoyed The confidence, f thwor are•now m the background'
away
· o e group 1s 1ow.
Razu still argues that perhaps every industry has its cycles d h' Id . .
However, his . friends
. are uncertain. They all had to ch •·anth ·t mgs wou tum m their favor again.
other things. Some reskilled themselves. Others like Mohitange e1rfc career
be' path.
'di Some
M . of them got
. into
earned money on educating his son That 'd ff. . _ pre er mg 1 e. ohrt - spent
-- his-hard-
. - _ __ _ _ · 8
Pat o • 1s son, Tappu, is heading the project for an
upcommg product at Google. Tappu told Mohit that this product might change the way marketing is
done in India Mohit is proud of his so b t t'II fc 1 • •
n u s I ee s nostalgic and always stnves for an outlet to his
creative instincts though he has not shared this with Tappu. ·
3 Mareh 2020: Jts Trinal's da-Jghter's Wedding an(i all the team have re-Ullited. The team is happy to
diseus, 1heir old achievements. But as they passed in front of Razu•s old house, they feh pity. The same
house once basked in 1he glo,y of their efforts. Razu had invited them all to that house last night During
1he discussion over tea, he had offered th~m a plan for re-manifestation of ''kalaakaar" group. He a,gued
that "bus.iness of colors can never be out of trends." This time, however, he wanted to start in a more
organized and professional ~anner. He was to lead a start-up. He not only wanted to earn big for the
group but also to make an impact in their lives.
He has given the group a week to think. During the discussion, Mohit had favored Razu's idea, but he
_ .was the only one. Trinal
I
looked non-committal. He had apprehensions about the lack of funding and
severe competition in the market. Trinal's skepticism rubbed to the other seven members. Trina! asked
Razu, "What is the use of experimenting something without knowing the end goal? What if the
experiment fails, is it worth the time and effort? Look at the cost side." To this, Rizu said, "I have made
some market observations. But I'm not going to push those on the group. It is up to us. We will discuss
this. It will require cutting through the clutter. What is the hurry, right now? We will figure out over
Wtime." Mobit pitclied in,·"But what is the exact plan?" To this, Razu replied pro~ptl:, "Why do you
always ask for a plan? All I can tell you is that I have some business model options m mmd that are
futuristic." That's when Razu's wife called everyone for dinner. It was a quiet dinner. Perhaps a lot was
going in the minds. Then, the group dispersed to their respective places.
To Razu's satisfaction, he had overheard Trinal's wife, suggesting him to give Razu a chance at least.
Razu knows one thing for sure, while Trina! may have fall back options, his own choices are limited.
Pae:e 3 of 4
1) Today, Trinal had sent an SMS to Razu that read, "Dear Razu, I understr.nd your passion for
colors. But how are the colors going to manifest? Pm not clear. What business are we getting in?
Would it work?" Indicate: a) What options are available to Razu? b) Which of these options are
"blue-sky~ (the fresh ones, thought-provoking, and has a long term economic viability)? c)
As Razu's consultant, select the most promising idea (I*) for him out of these options. d) Provide
a rationale for the selection and, e) possible description of the target audience. State assumptions
mad_e, if~ny. (5+5+5+5+5 = 25 Marks; Restrict your answer within 500 words)
2) Ra zu 1s
. now an aspanng
. ' entrepreneur. He wants to understand the problems encountered by
entrepreneurs as they try to bring business model innovations. Recently, he heard about
"Business Model Journey ~re." He thinks that you might know about the framework. As he
approached you, being his consulta~t, you have decided to help Razu. This discussion is in light
of the most promising idea (I*). a) For his understanding, draw the "Business Model Journey
Arc" framework and indic~i;the stages in the arc. b) For mentoring, you also need to highlight
what kind ofchallenges are more prone to happen at each stage of the business model journey for
bis selected idea (I*), in answer 1. State assumptions made, if any.
""' .__ (10+15 = 25 Marks; Restrict your answer within 250 words)
~'
3) Razu recently bas been relying on YouTube videos to g et the req uired information. During this
week, he feels that the more he reads online articles or watches YouT ube videos, -the more -
confusing are the views of the experts. Some tend to suggest that one should begin with the goal
in mind, while others are indicating that the resources should channelize the flow of one's decision
makin_g. He is not able to understand the diversity of the views among experts. He is wondering
in his Case what could be a foolproof way forward if there is one. Can you help Razu in deciding a
structured course of action for the selected idea (I*)? Remember, he is trying to have a business
that can thrive for years to come, a long term haul. State assumptions made, if any •
...:,._ .(t5 !_Vlarks; Restrict your answer within 250 words)
4) There are a lot of youngsters who are not only gifted with talent but have also absorbed in
technological know-how b~g in the tech-savvy environ-!Dent In such a case, what Razu can see
is that he might not be ~ o compete with these you~gsters on ce~ ainJ rQ.Pts, He wonders if the
group's ~xperie~e can givdt an edg~-over !!!_ese young newcomers, or just the power of idea
alone miglit suffice, or they geed to figure out something else. a) Please help him figure out bow
he can identify and combine the elements that may work to tbt:_ group's .strength. b) Can you
suggest Razu how th!_group can counter such threats !~om co~ i_!g,.r s? State assumptions made,
if any.
(15+10 = 25 Marks; Restrict your answer within 250 words)
--F?iy: ~~hool of Management, New Delhi
Post Graduate Dmloma m Management FMG-28/IMG-13 IFM-l
End-Term Examinatio,n,, Term- 3 (2019-lQ}
Paqer Name: BUSINESS ET~ICS & CORPQMTE S~CIAL RESPONSIBILITY (CSI\l
Time: 2*Hours Max Marks: 100
Instructions: a. . t" •
Th 1s ques ion paper contams 4 Pages -
b. Possession and use of cell phone is prohibited ----- --- ___
c. Be brief and to the point in the response
d. State assumptions made, if any
e. Answer all questions
f. Marks are i:idicated in the right hand parenthesis against
each questio~ .___
- -- -- -
Questions:
' '
Case Study/ ~ otn.,,•-,
--~ the 'baby kilferi'? Nestle and the inf~nt form~ --... '\
controversy
_,.,.,. - __,- ,.,,.-:-
The 'Baby K:!llilf' is the title of War on Want' s 1970s incendiary report on Nestle's marketing of
infant formula in developing countries. While much has been said ab~ut the issue e-ver iii 'it:sf"JO>
yew"s, with evidence being marshalled from both sides proclaiming the comp~ y 's innocence 8nd • _.
guilt, the world,s largest food company remains mired in a contr~versy that seems destine~ never
to go away. Since the issue first went public in 1973, Nestle has continued to face mtense
opposition to its practices, &1d has the dubious distinction of having endured the world,s longest
consumer boycott. Has Nesti~ failed to listen properly to its critics? Doe~ it simply not care? Or
is it that the critics have either got it wrong, or will never be satisfied? In what has been one of
the most remarkable, and proBably the most well- known. ' campaign against an individual
company, over just one single issue, the truth of the matt~r re~ains thoroughly contested.
1
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UnfortUnately s d1scuss1on hasn't brought a whole lot of agreemen · •· ~ ed
nutshell, ese are the basic details of the criticisms against the company. Nestle, the Swt . ~ , .
multi · tonal behind global brands such as Nescafe, Kit-Kat, Perrier, Maggi, Milo, and Bu1to~1
pas , is one of the leading suppliers of infant formula (powdered baby milk) across the globe.
Th re have never been any major criticisms 01 'infant formula as a product, but problems can
ari e when it ~s used or marketed inappropriately. For example, before being fed to babies, infant
fo ula needs to be mixed with water, and all utensils need to be thoroughly sterilized. In many
count ·es though, high levels of illiteracy can mean that mothers are unable to read -the necessary
instruct! and poor sanitation can lead to babies being accidentally fed f'Qffl1ula mixed .with' ~
contaminated water. Similarly, mothers in poor countries may try to save- rrioney by ·
'economizing' on the formula by using less than the re~9m_men~led.-<lo.s_~ .or substituting it with
other inferior alternatives such as cow's milk, rice water, or cornstarch with water.
Many of the initial problems for Nestle, and one of the main reasons why it has continued to
spark hostility, arose from the clafm that it has 'aggressively' promoted infant formula.
Ironically, the product is actually a vital health resource for mothers who cannot for one reason
or another breastfeed. Infant fonnula is clearly a preferred alternative to other 'traditional'
substitutes such as those mentioned above. More recently, formula has also been seen as an
important alternative to breastfeeding for HIV/AIDS infected mothers. However, critics argueq .
that Nestle actively promoted the product to mothers who could breastfeed safely. This allegedly
included practices such as:
. . 'Ii
'11 ~-- am~~lets announcing 1h,e.J2ene?ts of formula·m .: -- ..
~ - :rnmo~ ~ ~4gngrfl pr.downplaymg the benefit~ rea~tfe.edt~g~ _..
· • • J ) ~ health .workers tQ endorsei mttle-feedmg. · .
With br~ tfe e,zlin~ .,10d sales of infant formula on the rise, many ~aw th~ ctions of
, -:-- Ne.~ }~.(~ th~.rest of tH~1ndostry} as'~,~ t cau~e of i_nf~t- ~ortality the developi* world. !n
"-' ... .. · Widespread condemnati¾, ensued and bo)q)U..act1on was 1ru!Jat~d-ag~~~t the 'comp~.Y. durt.._ng
_· · . ._ - . the 1970s. Although there was.much debate 8'6ut the cau~l ·refattons_h1p_s mvolv~d, cr1t1c1sms of'=
J. ·, ,.';u'ch.-.ae;gressive ~keting practices eveni~ ~ t"led to the WHO introducing &'<tttode conduct o:
, go\'.e~fug~ e marketing of infant formula i~ 1.98}..:._ ~~~~ally the abo.v~ ~ract1ces ~ere
• "'- t' 1 b~ned by lhe code (ana its subsequent resoh.ittons), which -also ehmm~ted all direct .
euec _1ve y -, . - . . h d tained
company contact ~ consumers, and called on producers to ensure -t -at pro ll;cts con
i.: and used languages understood by lo~ l_
appropna . · te· hea.tth ~·.....,;. ~ -~... - - , ··users. Althou.gh1a voluntary
N I'
agreement, an d on lN
"'I
~oal · -~
'-..:,,
- ·rce
.
_ able once adopted
'
by ' national govel'tUri-·ents,
eo=~ '. est e
___ ~ ~:!,;__
announced it would ~ ly fully " : d•. . .. , :"'., .
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I
I That should have been the end of the , story.
. f,c.However,
• in many ways it was onl Y th e begmnmg.
. .
lthough the first boycott o f. N estle was e 1ective1y called off in 1QR4 , var,· ous groups m1t1ated
. ..
A
her campaigns throughout the .1980s, 1990s,
. and 2000s, usually as a result of new a11egat1ons
.
furt
surfacing of apparen~ non-comp.ltan_ce with _t~ .WHO code, or lo~bying by Nestle to prevent
governments translating the code mto leg1slat1on. IBF AN, the mtemati"onat pressure grou
coc,rdrr;;;tl"ng the global campaign against Nestlc! argues in a 2005 pubhcat,on that Nesti< is
singled out for boycott action because independent monitoring finds it to be the 'largest single
source of violations' of the WHO code and because it 'takes the lead in attempting to undermine
implementation of these measures by governments'. In a 2004 report, Breaking the Rules -
Stretching the Rules, the group identified hundreds of alleged violations of the code from
countless different countries, including donating formula to hospitals in China, calling on new
mothers at home in Indonesia, and distributing brochures in Thailand that daim Nestle's
products give 'valuable nutrients which have complete benefits for baby from birth to one year'.
Nestle's response to the alleged violations has tended to rely on denial, correction of perceived
inaccuracies, arguments about incorrect interpretations of the code, and blaming of occasional
miscreant employees. _Although it has admitted making mistakes in the distant past, the company
maintains that it has always abided by the WHO code and that campaigners simply have got it
wrcng. The company is unambiguous in its public pronouncements,that 'breastfeeding is best for
babies'. Its policy claims that Nestle supports the WHO global public health recommendation
,_ •~ailing for exclusive breastfeeding for six months and introduction of safe and appropriate
.conq!~mentary rooTs" thereafter', 'does warn mothers 0£. the consequehces of incorrect or ,, "' /
inappro"i,r1aitr'l'2_e o f ~ formula', 'does not advertise or promote infant fo1mula t9 the public, ~ :?'>-,....
and 'will take dis'e;plinary ~eas~res against any Nestle personnel who deliberately vio\ate it,(s
policy.'--;:?
Aware that campaigners remained unconvinced, over the last few years the company has stepped
up efforts to develop new ways of managing the baby milk issue. In 2002, the company
introduced an ' ombudsman system' to encourage employees to confidentially
1
report violations of
the code without fear of retribution. This was followed by an independent assessment of its
African operations by Bureau Verit~~ global auditing firm, that declared in ,2005 .that it had
found 'no systematic shortfalls in terms of Nestle's imp~ementation of its Instruction ~n the
Marketing of Breast-milk Substitutes'. The company also, for the first time, released ded~cated
reports on its economic and social impact~ in Africa and Latir. America - which were cau:musly
welcomed by the reporting industry, but predictably condemned as part of a PR o~ensive by
boycotters. Whichever way you look at it, the boycotters of Nestlt! have certamly made
·t Alth gh there seems to be
considerable progress in forcin- g-the company to c han~e 1 s ways.
fl f -• • b . t ou . .
I·t marketing practices,
O 1
little· chance of any staunching
· of the steady
. .ow
. N en tcismh a ou ·ght s wonder why, 1fthe
.
Nestle has clearly done much to respond to its cnt1cs. onet .e1ess,. one m1 . . . .
policy 1s 1t seemingly
t
company is so committed to the WHO code, no to mentwn its ow
0
,
3
possible for its critics to un c.
30- 1
year boycott would h cover h I Urther examples of violations. You would have thought •that a
10 1
e:
nnu a busmess
. ~v~ e ped stop all such problems before now. After all, the mfant
makes only · · ·· I · · l'
fi a minor contribution (about one per cent) to the mu tmat1ona s
pro its, Yet h~ generated vast amounts of adverse publicity for the company.
Nonetheless, it is difficult .to determine whether the ongoing boycott actions ha~ actually
harmed the firm's profitability. As the Financial Times recently commented: 'on the face of i~
the boycott ·has done Nestle little harm•, pointing out that it was rated the world's llth most
respected company in the 2004 Financial Times/PwC survey and had been in the top 20eveiy
year sin~98, When the surveyl,egan. Since the beginning of 1977 when the boycott fir::;
began, the newspaper reports that Nestle's share price has increased by 1,592 per cent,
outperforming Morgan .Stanley' s E~ropean stock index by 166 per cent. ----==.
Ultimately though, despites its protestations that it is doing no wrong, Nestle still remains among .
the handful of companies universally condemned by anti-corporate activists, students unions, and
pressure groups. A recent poll revealed that Nestle was one of the world's most boycotted
companies, and was the number one target for boycotters in the UK. So, whilst the company may
continue to dispute the legitimacy of the claims made against it, it still has a long way to go
before it convinces its critics of its ethics. Given that the company has recently launched its own
range of fair trade coffee, and is now a part owner (through its stake in L'Orea\) of the Body
Shop, it remains to be seen whether the firm will be successful in attracting more ethicallv
minded consumers.
Case questi~ns: _
. . '1y eval.uate
1. Critical ._ t he ethical issues present in the case in context to Nestle's 15
m&_rketing
Marks
2. of infant fornuila.
Conduct . and exp lam
a stakeholder analysis . the implications for each of the .stakeholder.
15 Marks
Discuss the steps that corporates c~n take to ·imp lement responsible and suStainal5ility
15 Marks
3. practices with reference to the Gase Sludy.
\
4
\
\
\
' \
I
.
\ .h
. FORE $chool of ~ c1naeement. New Delhi
'
\ i.
Pos,t Gradu51te Diplom~ in Manaeement (IMG-1:})
\
'\\~
\
End Term Examinatnn l Term - J cio1~-2Q2P1 \
i
rourse Name; Internati~nal Busines§ Manaeen\ent
I - ,
· ,_
" .~ ...... .
\
~e: 2,JJours
.' ( \, \_ MaxMarl;~ ,
a. Thibquestion paper contains ...Z... Pages.
1
,, structio~:· - \ ~-- ·
o:·P~1iession and use of cell phone is prohibited. \ .
\ '\
\
c. Stat~ assumption~ made, if any\ _ . -.
d. Answer all questions. -.
. ·
. e. Mar~ are indicated in the right hand parenthesis again~t each question. , 1
, .,
''--
•.
. ~ - ' . .. \
1. Discuss the stra~ gic implications of globalization in the age of Trump for companies enga~Jng
- \ .
2. "Understanding cu1tukf influence is very critical for; if~ rnation~ business owth" - Do ~\ • .- '· _.,.-
agree to this statement ? Substantiate your arguments witb su:~able examples. . . f
. . \ ./ ~". (20 Marks) ~ ,, · ...
' \ . {/ .. . - ~-
3. Describe the different orga~ational architecture-~oices tHa, can be made in at
business. \ l .,.- .r "- \. ( Marks)
,J.
~~--.... . .
" '\: - t;
4. Read the following case caretultyv . --.- ... .... _..i,J ·--- . - ~- : \..1 '-
.. . .
.
·-· ~ -.-_:_\.
.
~ .--- ~-. t, ' '
H&M and Its Order Ti~ing ·'. ...~ - ,
David Beckham, Freja Beha, Beyonce, Gisele Biindd!en, (;eoq!ia May Jagger, \ iranda l<,rr, Madonna, ,•
Vanessa Paradis, Katy Perry, Lana Def Rey, Rihanna, and Anja Rubik represent-just P,•·u.tial l~t Qf welf- a
known people around the world who have \YOrked with H&M (do you recognize alf'Q(tb1em?). But ,let's
move on from the naine droppfng ~b_H~nne~ iffyfauntz,or H&M as·it is more conuno111i·~kn0wn. H&M is
a Swedish multinat.ional retail clqtl;iing giant known for i~ fashion clothing for won1rm, men, teenagers,
and childien. H&M has effectively used superstar i::elebrities sue~ as Beckham, Be}'fnr.e, and Bilndchen
for years _to carry its, advertising.message worldwide. Behind the scenes~ H&M's ,glof,al supj>iy ~ains are
equally ~ell orchestt:c!tedJ ~ g h powered ·as its advertising campaign~ .. :, / / "-
H&M H~es & Mauritz AB, is now the full name of the company (it started simpl /as "''Hennes" in 1!ML.
. in a small Swedish town called Vasteras). The idea for the companyemerged t1ien, in 1946, Erling
Perssog., the company's founder, came up with the idea of offering fashionable cJUthing at relatively-tuw-
prices while he was on a ~business trip to the United States. At that time, Pe~ on decided to focus tm
women's clothing only, and Hennes, which means "her" or "hers" in swedish/ 1_as started. A couple of
decades later, in 19~8, Hennes a(:quired the b~Jilding and inventory of hunting eguipment retailer Maurj.tz
Wi~rss. Asupply of men's clothing was also part of the inventory.This resultea in menswear being
I included in the compa-ny's collection-aQd gave birth to Hen~es · & Maurits.. (H&M). H&M D9)..-1las
some 3,800 sto~n 60 counn-ies~d approximately..J48,000 employees. It. is the s~cond-Jarge_stt1othio..g_
retailer in the world after Spain-based Indilex (parent company of Zara) and"'ahead of. U.S.-based Gap Inc.
. .....-- - -
1/2
I
OQ¥~
f.&M compriS2s six different branr.s, although the H&M brand is the most recognizable worldwide. The
other brands «re COS, Monki, We-.?kday, Cheap Monday, and & Other Stories. H&M designs sustainable .
' fashion for al} people at relatively modest prices and sells its products in some 60 countries and online in - --
..... an addition~ 10 markets. COS rxplores the concept of style over 'fashion and sells its products in stores
-and 38 coumries. Monki is promoted as a fashion experienc~ a~d is offered in 30 markets in
stores 1and oriline."'""Weekday is a jeans focused fa~ion destination with sales in l5_maraets. Cheap
Monday combines "Jnflu~nce~ from street fashion and subculture with a catwalk vibe" 22 and is offered
in soJ,tle 20 markets. The & Other Stories brand w~s aunched in 2013 and focuses on personal expressi~ _
and ~yling, wiffiavailability in 1~rkets. The collection of these brands, driv_en byjhe-H&M collection
and Its footprint in 70 countries, presents a unique global._sl,!P.pJµhaifl-ehailenge for the company.
-----..... -- ---=-
- ' ·, · ~--- -· .
Th~-tn!l~~oris of clothi;ig are ·created by a team of 160 in-house designers and 100 pattem makers. The
design andJiattem team is large and diverse, representing different age groups and nationalitfes. H&M's
design' process is about "striking the right balance between fashion, quality and the best price ... and it
always invo1ves sustalnability awai=eaess." 23 H&M does not own its own factories but instead works
.,.r,th around 900 in~pendent suppliers to implement the team's designs into reality. These independent
supp!iers are mostly ' ocated in Europe and Asia. They manufacture all of H&M's products, and they also
g-enerally source f~brics and other components needed to create the fashion statements we have come to
k,1ow from the H&M brands. Some 80 people in the H&M organization are dedicated to constantly
wditing the working conditions at the '-actories of suppliers, including safety and quality testing, and
,._,_ ensuring that chemicals requirements are met.
" .---
\VIthin the global supply chain infrastructure, one key aspect of H&M is the ordering of each product.
Specifically, ~rdering each product at the optimal moment is an important part of H&M achieving the
1
right balance among price, cy~le time, and quality. To realize the effectiveness needed to ultimately sell
_. f~s~~n-oriented clot~ing a~,,afford~ble ~?ces,~ I-~&~!_ ~~~!th. long-tp~,artn~r~ invests -- - - ·- -
.). resources ..tw.".?;_tEe s•.1strunab1hLy vrme-worR'. neecled 1\ its supply chains. In these areas, the
"":"'" compaiiy"strives to prdrnot~lasting improveinents in working CQnditions and environmental impact
-.....:" throughout \he footprint that it · akes worldwide. Through its 900-,~~ppJiers, H&M is connected to scme
1,900 factories and about 1.6 mil-~ workers. \
_- What ;,.;:..iderations sho~ a mar.ager keep in mind whll~ setting up a global p;..,duction
.~na supply cbaft\ network ? \, ' _ . (15 Marks)
\ ' \ '
4.2. Yo~ re hi_"• by H&M:"' a Consutra_n\ '.o ~~nduct ~•k assess~ nt of,their !Iobal !'.rodu\uon
resolution. - .., 1
\"'
-- '-~ \ .
(25 Marks)
. \xv
:,_ I \ \
FORE School of Management, New Deihl ,
I Post Graduate Diploma in Management (FMG 28/IMQ,13/FM 2/FPM)
· E nd-Term Examination Term-3-
Course Name: _B~siness·Research Methods
Time: 2 Hours .,--
- Max Marks: 100
Instructions: a. This question paper contains 3 Pages,
b. Possession and use of cell phone is prohibited, .
C.
Only Non-Programmable calculator can be used
d. Be brief and to the point in your response,
e. State assum_ptions made, if af!y,
. .. t Ma·rks 'ate indica.ted in the right hand parenthesis against
each question,
g. Answer all questions.
Questio~l Even·· tnou~h exploratory research designs are lowest in terms of accuracy of
finditrgs, it is re~mmended that no research must be carried out without them. Examine the
above statement afid)~stify with examples why you agree/disagree.with it. (10)
Question-2 An
investigation was proposed that woutd study two independent variables- detergent type
(Mighty G - ) and water temperature (Hot and Cold) each consisting of two variables
thereby having a 2x2 factorial design. The investigators suspect that the type of detergent and water
~ rature may have some impact on the whiten~~ _of the clothes. The study also wish to detennine the
inteQCtion effect of the' detergent type and the water temperature on the whiteness_ level. ·
a / f we begin with the assumption of normality and. equal variances of populations, what
statistical test would ·you suggest for this investigation? Explain it by developing the
. hypotheses. . · " --- (5)
b. The investigators wish to investigate the following three things
(i) \\'hether there is a difference in whitening power of Mighty Good and Super Max
detergent.
(ii) ., W li"ether there is a 'significant effect on the whiteness of clothes when washed in
I -
hot orcold water.
(iii) Whether th~-- deter~ent type a~d ':ater te~perature may work together to change
the whiteness oftlje clothing (1.e. mteract1on effect).
• SPSS tput (Tables) which are based on some
In light of the abov~ ~tatements interpret the fo 11owmg ou . . . .
hypothetical data (level of signi~~ance is 5%). Also, discuss its managenal tmphcattons.
\~' t \
-l I '-,_ '-,
(10)
n
"
MlP.nf
:ml 11 ,m~lfinn
. --.....:: Testsrl~flq
!if.I
Mean Std.Dmation N .
migh~ good hot
45.770 124716 10
cold 6.5376
r::e1usum
61.340 10 Suares Si .
. Total 53.555 . 12.5586 Corrected Model
20 2993.517' .000
• supermax hot -
52.240 10.6019 20 · lnlercem 166880.208 166880108 1.957E3 . -:ooo--
COid 64.400 6.7060 20 Detergent 302.736 302.736 · 3.551 .065
Total 58.320 Waler
Total 10.7043 40 2563.176 2563.176 30.063 .000
hot Detergent *waler
50.083 11.4689 30 38.760 38.760 .455 .503
Cold 63.380 Error 477(573
6.6993 30 56 85.260
Total 56.732 Total 200877.010
11.4744 60 60
Corrected Total 7768.090 59
Table-(i)
Table-(ii)
Question-3(a) o· · · h be . .
istmgms
h
?::;'earc
tween quahtat1ve and quantitative source of data collection Can qualitative
methods be used for a co cJ · • ·
study? Justtfy your answer with suitable illustrations.
(15)
Ques~on-3(b) Qualitative methods require special skills and techniques on the part of the investigator.
Examme the truth of the statement by using suitable examples. - ~b
or a
marketing research study to gat~er this Ill • jt C ver tlie following areas-
all the functions with which the parents and their child come"~ h as. a(lrni~ i 4 ~ l
infrastructure, teac}Jers, teachers',ettitude, meajy fee struc$µre.! parent-teajller ~ ctiOn, hygienic
---
conditio;and so ~n). Design a {uestionnaire f(a't can be usecffor this study )
Question-4(b) Suppose you ·want to ascertain the amount of money stude~.s spend on eating outside.
Assuming you want to ask just one question, how would you phr~e it in each of the following forms:
.. (~S)
open-<:nded, dichotomOIJS, and multiple -category? In what ways ~.iil\the,i:a. of data obtained through
·3_. -~
4~-~" ·:',
each form differ? , ~ · \1 (5) ·
/ .
sales growth, profitability of sales and new ~count ·sales achieved by the sales e~ecutives,- The company
wants its sales executives to be good Jlt-8.H-these things and not just one, so· looking at any single
paramete! would seem inade-quate.'" In light of the above statement a hypothetical data for 50 sales
executives has.~en-considered. Using the software package SPSS, a statistical technique known a7"Factor -
analysis was performed. f~r the·dat.a.. The output is givcit'dri .the following tables.
..-=--
Sig. .000
Initial Extraction
Sales Growth 1.000 .952
Sales Profitability 1.000 .924
New Account 1.000 .894
\.....
Total Variance Explained' .
Comp Initial Eigenvalues Extraction Sums ofSquare4.Loadings
onent Total %of Cumulative Total %of 1 Cumulative
1 2.769 92.295 92.295 2.769 92.295 92.295~
2 .164 5.460 97.755
3
- - -•
.067
-
2.245 100.000
" Co1nponent
1
Sales Growth .976
Sales Profitability ' .961
N e'"' Account .945
'
""
loterpret the above tables with 5% level of significance (20)
' 3
\
"¾,_ t_o F?RE School of Manat~ement, New Delhi,~ · ,, .• . l" .
· ~ .~t Grad:?~_!)1plom;::_an~!l.l:~~ ~iMtiJ~irMa.t J.-~~~>L ~·: 1, ::;
• -Z2•-.n 1 e1 m- - ammation Term- ( 019-202 }
Co~rse Name -Export - Import Procedures and Documentation .
\ ,
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o~let but due to their expansion ·ltrategy th~_deci<Ie~ t~ nJ ' ~ ~ •,f to sell by"
.,..-:-'..... '" # - . - -- •.
~
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.-1~ name of Mls XYZ corporation, at Puchong, Malaysia_.~ .or••·/ .
- .
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or er w
-
.
is b~ h~Ml;~
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be packed well bubtil~ wr~p an' alsJ,.~.hrink ,vrapped , ·d then the ind idual units
·, n~,._t~ ~ ~ ~ported . a' ~voo~ n~ ~ · o~ This is the t~nd~r<I packi g·. which the
· custo.m er requires~ . The ~ontainef n'!l@ · ·r is 2003004 , The buye.r s agreed to
}open an ,Lie and he has nt. e· L/c to . s P-rio~ify ~f li ahead of ime around .
•Januarr:ts·th, 2020 thr~ug· .;_ its~ba.,ik ~s ~ !"Y.~ank a~d the~ was rece ~ed at m!'C
Bank in New Delhi. Tbe""/C o;_ned ; ~as @t, ~ f. cred~ - -~0 0 -da~ Marks and
ntimfi'ers are to applie~ n _ea~ . p ka~ f~~ , lVh~re xiS'froi~~ndy .
is the total number: of sets 1.e 2 .. . \~ and ~ c it~ e·:lnarkel sepe~atel~-~
2. What will be the value ~f the Le¥ er of Credjt opene •by t'ae impo i: •
\.3. What is the likely date tbat~!1~"L/c-~as be~n opened?·\ • -
4. ~»Ydoes an exporter· prefer-to. r~ o.ni Letter:~f i~di\~ :.-,:-· .. -
5. Whlli are 'fbe other ronns of pay ~nt which are prllcticed ID th nternational
trade .which Mis Priority Internat onal .could _have negotiite_d.
r '
\
---
t: -venne Hill of L f ing and ~vhat is its importance in the logistics ·f rade·t What d
I
·~:-_ und~rsta.nd by... eDate of Ship. m
. ent in terms of the logis'\·ics~tr?,(le and also as per the
---~
· CustoD;.1S.-. _µ,,.: - _ _ _ . ( 20 marks)
.......... ' ,, - . .
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. \
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.- ;, -
.......,1 . ~ _ ..._
c.. .::-,. \ - ,-~~
3) \ ~ m6ngst the export,_lnc~ntive~, Duty Drawba.c k is one oft in~enti~es whicli is W'i O -
~ mp~tible and is PTI!cti~d by ~ost countries. You ha~~ a c .mpany Mis l ndia G~ms
a\la1pur SEZ. You are \mport1ng Gems and other p ~ , , metals from various
~8lltries~ml then do~ng v~ ue addition to it and then exportuJg~, back. In ()~ f the
- con\ ignments you -had sent rings and lockets for the value o · S 300,0~0~to
, _ Ge~ y. The giv~ price w ~ India gives yo'! a duty drawba~K . . cent f'dt
-th_e·s, me product. Calcula~e duty drawback.in this case. What is the 1 . -~t.iv.e You~ t'\-
will get. { 1US$= 70 Rs) , (~ O ·· rks) . " \ -·~- ---...-..:,
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FORE School of Management, New Delhi
Post Graduate Diploma in Management
End Term Examination Term- 1II (2020-2021)
Project Management
Time:2 Hours Max Marks: 100
Instructions: a. This question paper contains_5 Pages
b. Possession and use of cell phone is prohibited
c. Only Non-Programmable calculator can be used
d. Be brief and to the point in the response
e. State assumptions made, if any
f. Answer all questions
g. Marks are indicated in the right hand parenthesis against
each question.
h. Z table is given along with the paper
Question 1. (20Marks)
This represents the graph for “Project Life Cycles and their effects. Explain with example.
Question 2. (20Marks)
You manage a hotel in Goa. You are shifting the focus of your resort from a traditional fun-in-the-sun
destination to eco-toursim. How would you classify the following projects in terms of compliance,
strategic and operational?
[For each of the following projects , you need to identify which category does each of the project fall
into (compliance project/ strategic project/ operational project) ]
Note: Compliance projects should be done at any cost. The organization's view will be reflected in
the strategy projects. Operational projects are carried out to fulfil operational needs and they can be
postponed if financial budget constraint exists but compliance projects cannot be postponed
a) Convert the pool heating system from electrical to solar power.
With respect to the aforesaid projects, What made some projects more difficult? How can you use
your class learnings to make the transition successful?
Question 3. (10Marks)
Do you think infrastructural projects in India Scope constrained, time acceptable and cost enhanced?
Why?
Question 4 ( 20 Marks)
Colonial state college is considering building a new multipurpose athletic complex on campus. The
complex would provide a new gymnasium for intercollege basketball games, expanded office space,
classrooms and other facilities. The following activities have to be undertaken before the
construction can begin:
G Obtain Financing E 12
H Hire Contractor F.G 8
b. Compute the expected time and variance of time of completion for each of the activities.
c. Based on computation in b. , Develop the activity schedule for the project.
Under activity schedule compute the early start, late start, early finish , late finish and available
slack for each of the activities.
d. What are the critical activities? What is the expected project completion time?
e. If the club manager plans to start the project on February 1, calculate the probability that
the swimming programme will be ready by the schedule May 1 date (13 weeks) based solely
on the critical path. Should the manager begin planning the swimming programme before
February 1 ?
FORE School of Management, New Delhi
g. Marks are indicated in the right hand parenthesis against each question
1.1. Why do startups need venture capitalists? And how do venture capitalists make money? Offer
your views particularly detailing the concept, the business model, the revenue model, and the
venture capital cycle of a venture capital firm. 10
1.2.Wellness Enterprises, a startup, has 64 lakh common shares and 36 lakh preferred shares
outstanding. Currently the preferred shareholders are holding shares issued at Rs. 150-lakh in
Wellness Enterprises. As per the term sheet the preferred shares carries participating liquidation
preference rights with a total liquidation preference of three times the original issuance price.
10
1.3. Excel Venture Fund (EVF) is considering 12 million investments in Wellness Enterprises (WE)
that expects to require no further capital through year five. WE present has 300,000 shares
outstanding before the investment. WE expect to earn ₹ 9 million in year three, and should be
comparable to companies commanding price-earnings ratio (PER) of about 21. EVF expects to exit
this investment at that point through sale of its holding. Assume further that EVF requires a 45%
projected internal rate of return (IRR) on project of this risk. 10
Calculate (a) percentage of WE stocks EVC will own, (b) number of new shares WE will issue to
EVF for investment of ₹ 150 million (c) price per share EVF will pay at the time of investing funds,
and (d) pre-money and post-money valuation of WE.
2.1. Describe the characteristics and classification of commodity markets. Why and how are
commodities traded? What is the role of hedgers and speculators in the commodities market?
10
2.2. Two commodity market speculators-one bullish and one bearish- choose to take opposite
positions of 3 kg in April at ₹48000 per 10 grams. Both maintain accounts at Sun Brokerage Limited
that allow them to trade at minimum margins. Both would be required to put up ₹720000 as initial
cash margin to open their positions. Traders are aware that the exchange also set ₹600000 as the
maintenance requirement for their contracts. The minimum lot for gold is 1 kg meaning each of
the speculator has bought/sold 3 contracts. Considering that gold prices fluctuates, any adverse
price movement will put one of the speculators into margin call territory. Calculate how much
each of the speculators have to deposit/can withdraw if April aluminium prices (a) rises to 49250
per 10 grams, (b) crashes to ₹ 46500 per 10 grams respectively and the funds speculators need to
bring to meet the margin requirements, if any. (1 Kg= 1000 grams). 10
3.1. Assume an investor requires to pay 98.75 for a 91-day T-bill with 100 par value. 6
• The annualized yield will be…
• Calculate the yield if the T Bill is traded at Rs.98.96 after 18 days.
3.2. Sun Asset Reconstruction Company (SARC) plans to sell three-year bonds with face value of
₹ 450 million at issue price of 64% of face value, in lieu of portfolio of debt acquired under debt
resolution arrangement. 9
• What type of bond the SARC is selling and why? Give reasons.
• Calculate the amount SARC will receive upfront and the yield on the bond. Describe how
SARC will record the transactions in its balance sheet, the statement of profit and loss
account and the statement of cash flows right from the time of issuance, until redemption
of bonds on maturity.
4. The COVID-19 pandemic has come as shocker for the housing finance companies in general and
Evergreen Housing Finance business in particular. The company is facing liquidity crunch due to
its excessive reliance on short-term funding sources as well as possible higher default/deferment
in loan payments. The Direct Finance of Evergreen realizes the financial fragility of the company,
and thinking about leveraging the existing home loan portfolio to raise funds as an alternative to
sustain its growth plan. 15
• Considering the scenario described above, do you think securitization of home loan
portfolio can actually act as an enabler to resolve problems faced by Evergreen Housing
Finance? Offer your comments.
• Illustrate the securitization process using the deal diagram depicting the various stages of
securitization and the roles played by each of the participant in the securitization deal.
5.1. Sunbeam Auto Lamps (SAL) signed a contract of ₹900 lakhs with Maruti Suzuki Limited to
supply automotive lights during the financial year 2020-21. After signing the contract, the
management realized that they are is “long on order and short on cash” and seeking solutions to
execute the order on time. 15
Please read the short case titled “Confluence of the Four” and answer the questions that follow.
1 Based on https://www.bbc.com/worklife/article/20170807-ikigai-a-japanese-concept-to-improve-work-and-life
Page 9 of 15
Tao: Pretty close. This Venn diagram is pretty close. But remember, this is not a mathematical
formula. It is a loose representation of the concept for amateur understanding.
As both talked, they exchanged their notes about the concept and promised to work more on it before
scheduling the next call.
Vignesh: Still, no harm trying out this concept, I guess.
Tao: No harm. Let me give you a week to figure out something. We will connect again. Ok?
Vignesh: Sure. I have few friends whom I think can help me with this venture idea. Let me get back
to you.
Tao: I will also like to share with you what I have read2. Don’t get into a trap where you are still
working on a passion or mission (that lies on the confluence of two circles on the Venn diagram)
or even about a point that lies at the intersection of, say, only three circles. On the other hand, you
should also appreciate that there may be more than one interest that may qualify as your Ikigai.
Vignesh: Oh. Is it?
Tao: Yes. There is more to it. However, I will share that at the appropriate time with you.
Tao plans to send the details task over email and wants Vignesh to approach this systematically. Vignesh
is your good friend. He has now contacted you for help as he knows that you once mentioned this concept
to him in a conversation.
Vignesh wants you to take him through the following questions through your personal venture example
(not team/group venture idea). Prepare a detailed explanation as per the following questions and share it
with Vignesh to demonstrate how he can also plan to work on his Ikigai.
Questions:
1. Explain to Vignesh your process of developing a new personal venture idea (“grounded idea”)
around your Ikigai (using this concept), starting from scratch. Outline the steps and the
associated details/entries that you have used. Feel free to support it with a pertinent visual
diagram. Reflecting on this, tell the possible pros and cons of using this Ikigai based approach
to find a personal venture idea. (25 Marks; Word limit: 400 words)
2. Vignesh agrees with you that the “grounded idea” may look boring. Explain Vignesh,
through your example, how you can convert your “grounded idea” into a “spaced-out idea”
(unrealistic and idealistic) and then turn it further into a “blue-sky idea.” The explanation
should show that the “blue sky idea” is thought-provoking and refreshing; but also
technologically feasible and economically viable. Provide a step-wise explanation, and feel
free to support it with a pertinent visual diagram. (25 Marks; Word limit: 400 words)
2 Based on https://www.sloww.co/ikigai/
Page 10 of 15
3. Use the “Jobs-to-be-done” framework to explain what core job you are delivering for your
customers. Elaborate the associated “value gaps” that you are addressing through your
venture idea. As an output, show the “success matrix” of your solution/value proposition from
the end user’s perspective (not your venture). (25 Marks; Word limit: 400 words)
4. Vignesh is curious about how one goes about calculating the size of the market for the
opportunity associated with a new venture idea. Explain to Vignesh how you would go about
calculating the market size for your personal venture idea. Show him how you would choose
an exact customer persona for your solution and then estimate the market based on this user
persona. (25 Marks; Word limit: 400 words)
Page 11 of 15
FORE School of Management, New Delhi
Post Graduate Diploma in Management –FMG-29/IMG-14 /FM-3/BDA-1
End-Term Examination, Term- 3 (2020-21)
Paper Name: _ BUSINESS ETHICS & CORPORATE SOCIAL RESPONSIBILITY (CSR)
Time: 2*Hours Max Marks: 100
Instructions: a. This question paper contains 4 Pages.
b. Possession and use of cell phone is prohibited.
c. Be brief and to the point in the response.
d. State assumptions made, if any.
e. Answer all questions.
f. Marks are indicated in the right hand parenthesis against
each question.
Questions:
1. “In January 2021, The Corporate Affairs Ministry has amended the CSR spending rules
under the Companies Act to provide greater transparency and flexibility to the Indian
corporate sector.” In the light of the above statement, explain the CSR Law along with
schedule VII activities with illustrations. 25 Marks
2. The CSR Managers/Implementing Teams face number of issues & challenges in managing
CSR activities of companies. Discuss with examples. 15 Marks
3. Explain briefly the application of Stakeholder Theory in context to CSR & Sustainability
activities of a company. Do you think it can help a company to improve its reputation in
the society? Comment. 20 Marks
Case questions:
12
1. Do you think the Bryson Corporation should act ethically in this situation? What about
Harry Jackson? 15 Marks
2. What do you think Stanton should do now, and why? 10 Marks
3. Discuss the steps/ecosystem that the company should take/make to avoid a situation like
this in future. 15 Marks
13
14
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