IMI

INTERNATIONAL AMNAGEENT INSTmUE

BHLBANESWAR
Shuping xlobal inaders for tomorrew

Post Graduate Diploma in Management (2019-2021)

END TERM EXAMINATION: TRIMESTER III (March 2020)
IS 608 Business Analytics

Time: 2 hours Maximum marks: 30

Instructions:

1. Closed book.
2. Answer ALL questions. Relevant marks are mentioned against each question.
3. The relevant data file is available in BAEXAM folder in O-Drive.
4. The key outputs which helped you in arriving at the answer for each question are to be
reproduced in the answer sheet with analytical and managerial interpretations.
5. Please write on top of your answer sheet "Set B."

SET-B
1. No Bank is interested to generate a model that would predict the customers who are
likely to accept an offer for personal loan. It has collected data on 1000 customers. Run a
naive Bayesian using relevant variables to fulfill the objective[Datal]
(i) Based on your analysis, what is the probability that a customer has a credit eard,
given that she accepted the personal loan offer? 5)
(ii) Critically analyze the confusion matrix, lift chart, and decile chart. (10)
(ii) 10 new customer profiles have been received by No Bank personal loan
department. Predict whether or not these prospects would accept personal loan
offer based on the model developed by you [Data2]. (5)

2. Run Classification Tree using relevant variables on the data available with No Bank

[Datal].
) Draw and interpret all the rules in the fully grown tree and the best pruned tree.
7- What would be your recommendations based on your interpretations? (5)
Prediet-price-of the 14new Toyota-cars-reeeived-based-en-the best pruned-
regressiontree-medetdeveeped-by you fData 21 (5)

r e d i t ststther e l0 mus ustomers oud a a t

ha esore Aean etler band on e modol
duselbd by yeu DataO20 1 T u eneshe, fP
TN
1P age
 IM
INTERNATIONAL MANAGEMENT INSTITUTE
BBUBANESWAR
Shaping global lee ders for tomorrow

Post Graduate Diploma in Management (2019-21)

END TERM EXAMINATION: TRIMESTER III
Instruments
Course Name: FN 505- Financial Markets and

Maximum Marks: 40
Time: 2.5 Hours
Instructions: Closed Book

1. Refer to the following figure:

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and Ciher Der X Lve Cumency kates and Analys:

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Forex Jal roncy Cureneycovertee JSDINR opened at 71 18 against its losing at 71 11 USDit
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Explain how an arbitrageur can gain from the above quotes of INR and USD. 5

. INR. TheHowrateareofcurrency futures different from forward agreements? Refer to the figure in QI for JPY-
interest in Japan is 2% and that in India is 6%, what will be the implied futures rate if
youant to purchase yen today? 5
3. What are the various steps involved in stock trading in India? Explain each of them in detail. I5
OWhat are circuit breakers? How are they uscful to an investor? What are the filters proposed by the
NSE? 2+3+31
5Read the following news published in The Mint, dated February 20, 2020:
 A fall in global crude oil prices following China demand concerns, largely because of the coronavirus
outbreak, may help India contain its current account deficit but will lead to inventory losses and lower
margins for domestic oil marketing companies - Indian Oil Corp Ltd. Bharat Petroleum Corp Ltd and
Hindustan Petroleum Corp Ltd.

The virus outbreak in China has hit demand for crude oil and petroleum products, with the
International Energy Agency (IEA) and the Organisation of the Petroleum Exporting Countries (Opec)
trimming demand forecasts. This has led to a fall in global erude oil prices. "If crude oil prices
continue to decline till March, then we will have a huge inventory loss, which will suppress our
margins. Because crude prices at which we have had these products as of December is around S68 per
barrel. Today crude oil is at $54 per barrel, a steep fall," said director finance from an oil marketing
company. Crude oil prices have fallen by around 10% in the last one month. Currently, it is at $59.20
per barrel. Refining firms in China have been forced to reduce output and cancel contracts as
quarantines and flight cancellations have hurt demand and distressed cargoes are now being offered to
large consumers like India. "In the downstream sector, lower oil prices are expected to lead to
inventory losses in the short term even as under-recoveries on sensitive products are likely to decline"
said ICRA Ltd in a note on 18 February. "This kind of fall in crude oil prices has been unprecedented.
We would prefer crude prices to hover around $65 per barrel That is our comfort level," a senior
official from an oil marketing company said. ICRA added that realisations of Indian upstream
companies on crude sales would decline due to lower oil prices, severely impacting the profitability of
the sector. "Though the OPEC+ is already considering deeper production cuts. nevertheless if lower
crude oil prices sustain. the capex programs of private companies could be impacted" ICRA said.
Though low product prices have the potential to invigorate demand. the same is expected to be
outweighed by the demand slowdown. Accordingly, with gross refining margins (GRM) at low levels,
global demand slowdown is expected to exacerbate crack spreads leading to more pressure on the
GRMs, which would be offset partially by lower fuel and losses.

Evaluate the above news and identify whether the situation is a

centango or backwardation. Explain
your position. What is/ are the difference/ differences between a contango and backwardation?
14+11
6Explain the following:
MLong and Short Hedge with an example
Bogk Building Process and the types.companies which can offer IPOs through this route
Conditions for issuing a rights share
13+3+3
7. What are the advantages and disadvantages of EPF, PPF, Rajiv Gandhi Equity hereme? 131

2
 IML
INTERNATIONALMANACEMENT INSIIUTE
BHUBANLSWAR
Shaging elobal lendera for tomorvow

Post Graduate Diploma in Management (2019-2021)

END TERM EXAMINATION: TRIMESTER II (March 2020)
OB506 Organization Design& Theory

Time: 02 Hours Maximum Marks: 30

Instruction: 1.This is Open Book Exam
2. Answer all question

1. Read the following paragraph and answer the questions that follow.

This case describes the culture of ABC Associates Inc., a leading innovator in the industry for
around past 3 years. At ABC innovation is facilitated by the lack of bureaucracy and associated
overhead along with employee commitment, and the use of product champions. Internal
cooperation between departments is also encouraged. The company has never had titles, hierarchy,
or any conventional structures. It also has no mission statement or code of ethics for the entire
company. The company maintains small plants to accentuate a close-knit atmosphere and
encourage communication. The organization has following characteristics
. Direct lines of communication
2. No fixed or assigned authority
3. Sponsors, not bosses
4. Natural leadership defined by followership
5. Objectives set by those who must make them happen
6. Tasks and functions organized through commitments

The organization is similar to many quality circles going on all the time. Leadership is widespread
throughout the organization and is continually changing and evolving. The culture is also
egalitarian and innovative. The company uses sponsors to train and encourage new personnel.
Sponsorships continue throughout a person's career. Pay comes in three forms- salary. profit-
sharing, and an associates' stock ownership program. A compensation team determines pay levels
based on the contributions of associates. The company follows four Guiding Principles and Core
Values:
1. Try to be fair
2. Encourage, help, and allow other associates to grow in knowledge, skill, and scope, and
activity and responsibility
3 Make your own commitments, and keep them
4. Consult with other associates before taking actions that may be "below the water line"

1
 Answer the following questions:
Which culture type among the ones you have studied will you categorize ABC under. What
makes ABC maintain its unique culture. 10 marks

B. What problems would a newly hired person have working at ABC? 5 marks

2Read the case "The Xerox Corporation" from the book (Daft-page 03) and answerthe following
Lquestions:
A.Describe the stages of Life-Cycle that Xerox passes through, providing details of
how the organization develops and evolves through the various stages that you can see.
10 marks

B. How could the Xerox Corporation manage better and prevent decline by
Incorporating Organizational Ambidextricity, either in structure or strategy?
5 marks
 IMI
INIIRNATiONALMANAGEMENT INSTITUTE

BHUBANESWARtomorrow
leadurn for
Shaping global

(2019-21)
Post Graduate Diploma in Management
EXAMINATION: TRIMESTER III (MARCH
2020)
END TERM
GM-608-ENTREPRENEURSHIP
THEORY AND PRACTICE

Maximum Marks: 50
Time: 120 Min.
Instructions: 1. Closed Book
2. All questions are compulsory
3.Show complete working notes.

'Entrepreneurship can
and comment on the statement
(Q1) State three myths about entrepreneurs (15 Marks)
be taught

Dr Saraswati. (15 Marks)

effectuation theory given by
2. Explain five principles of
and fill it with respect to your business idea. (20 Marks)
Q3. Draw a business model canvas
 IM
INTERNATIONAL MANAGEMEVT INSIITLTE
BHLBAVESWAR
ikaping global lendern for tomorrew

N
Post Graduate Diploma in Management (2019-2021)
END EXAMINATION: TRIMESTER III (March 2020)
OM 503-Operations Management-II
Time: 2 Hours Maximum Marks: 400
Instructions: 1. Closed Book
2.Answer allthree questions

An insurance company wants to design a control chart to monitor whether insurance claim
forms are being completed correctly. The company intends to use the chart to see if
improvements in the design of the form are effective. To start the process, the company
collected data on the number of incorrectly completed claim forms over the past 10 days.
The insurance company processes thousands of these forms each day, and due to the high
cost of inspecting each form, only a small representative sample was collected each day.
The data is shown in the following table.

Sample 2 3 4 7 8 9 10
Nos 300 300 300 300 300 300 300 300 300 300
Inspected
No of 10 9 9 13 12 8
forms
completed
incorrectly

Design a suitable control chart that can be used by the insurance company using three-
sigma (standard deviation) limits and comment whether the process is in-control or out-of-
control. (15 Marks)
Consider the following data relevant to an MRP lot-sizing problem
Item Cost Per Unit $25

Setup Cost S100

Inventory Carrying Cost per unit per year 20.8%

Weekly Net Requirements:

 2 3 4 5 6 7 8

105 80 130 50 0 200 125 100

Use the lot -for Lot Rule and EOQ rule to propose an MRP Schedule under each rule.
Calculate the cost associated with the MRP Schedule under each rule. Assume that there
is no beginning inventory. (10 Marks)

3. Old Pueblo Engineering Contractors creates six-month "rolling" schedules, which are
recomputed monthly. For competitive reasons (it would need to divulge proprietary
design criteria, methods, and so on). Old Pueblo does not subcontract. Therefore, its only
options to meet customer requirements are (1) work on regular time; (2) work on
overtime. which is limited to 30 percent of regular time: (3) do customer's work early,
which could cost an additional $5 per hour per month; and (4) perform customer's work
late. which could cost an additional $10 per hour per month penalty, as provided by the
contract.

Old Pueblo has 25 engineers on its staff at an hourly rate of $30 and 8 hours daily regular
time work. The overtime rate is $45. Customers hourly requirements for the six months
from January to June are

Demand and working days

January February March April May June Totals

Demand 5000 6000 6000 6000 5000 4000 32000

Forecast

No of | 20 20 20 20 20 20 120
working
days

Develop an aggregate plan assuming no backordered work at the end of the plan. (15 Marks)

TERM II cOURSE CODE OM 503

 IM
INTERNATIONALMANAGEMENT INSINUTE
BHLB4ANESWAR
Shaping global ieeders for tomerrow

Post Graduate Diploma in Management (2019-2021)

END TERM EXAMINATION: TRIMESTER I (February 2020)
FN602 Financial Management II

Time: 2.5 Hours Maximum Marks: 40

Instructions: 1. Closed Book
2. All questions are compulsory
3.Use of Financial and Scientific Calculators is allowed

A. Based on the following information, calculate the EOQ and the total cost of material:

Units required per annum (Kgs.) 20,00,000

Ordering cost per order (Rs.) 4,000
Carrying cost perkg perannum 2% of material cost
Material Cost (per Kgs in Rs.) 2,000

B. If the supplier offers a discount of 1% on material cost subject to the order size being 30,000 kgs,
what will be your decision and how much will be the net benefit/loss if you go ahead with this.
Marks 3 +4

2 From the following information decided whether to factor the debts or not and also calculate the net
benefit/cost:
Total credit sales per annum= 45 million
30% Customers pay after I month
25% Customers pay after 2 months
45% Customers pay after 3 months.
CIf the company goes for factoring, the factor will pay after 1 month and the charges of factoring will
be 2.5% of turnover. In case factoring is opted, company will save 20,000 a year. On the other hand,
interest on overdraft is 16%.) 9 Marks

3. The annual cash requirement of a company is Rs. 50 crores in a year. Cost of ordering cash Rs. 200
per order. The rate of interest company is earning on the investment is 12% per annum while the
interest earned on the current account is going to 7% p.a. What is the optimum amount of cash the
company should withdraw at once as pe the Baumol Model? What is going to be the cost involved in
this decision of company? If the company's CFO is of the opinion of withdrawing 20% less than the
amount calculated from the Baumol formula, what will be the impact on the total cost? 8 marks

A company has fixed that it needs a minimum balance of Rs. 8,000 per day. The transaction cost Rs. 5
per transaction. The variance of cash flows is Rs 3,000 per day, and the interest rate is 6 % p.a. What
is the Spread, Return point and the upper limit of the cash as per the Miller Orr model? 9 Marks

TERM II COURSE CODE FN602 Page 1

From the following infomation, calculate the Safety Stock. Reorder level. Maximum Level and
Minimum Level: 7 Marks

LEAD TIME OR
USAGE REPLENISHMENT TIME (in
Qty) Days)
MIN 15 10
AVG 20 25
MAX 25 40

TERM II COURSE CODE FN602 Page 2

2