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FORE School of Management, New Delhi

Post Graduate Diploma in Management (FMG-28 & IMG-13 & FM-02)


End-Term Examination Term 4 (Academic Year: 2020-2021)
Course Name: Financial Derivatives

Time: 2 Hours (End-Term) 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 assumptions made, if any,
f. Marks are indicated in the right hand parenthesis against
each question,
g. Answer all questions.

Q1. Funds worth INR 25 crores are to be raised by Rosebud Group for a 6-month period after five
months. However, Rosebud CFO feels that the interest rates will go up after five months so
wants to hedge the position of his company. To safeguard against higher interest outgo the
company enters into a forward rate agreement, a 5x11 FRA at 7% MIBOR. The MIBOR at
end of five months is 10%.
Assuming there are 30 days in each month, what will be gain/loss to Rosebud Group from the
FRA? (10 marks)

Q2. Current stock price is $52. Three-month European call and put options on this stock for strike
price of $55 are priced $2 and $3 respectively. The risk-free interest rate is 9% per annum.
a) Explain the principle of put call parity.
b) Using the above information, design an arbitrage strategy using put call Parity.
(5+10 = 15 marks)

Q3. Amaltas Designs and Bavarian Motors are two companies looking to borrow funds from the
market. Amaltas has better credit rating than Bavarian Motors. Amaltas goes for fixed rate
of interest loan while Bavarian Motors goes for floating rate of interest (See Table Below).
Amaltas desires a floating-rate loan and Bavarian Motors wants to go for a fixed-rate loan
but both want them to be at cheaper rates. The market making investment bank which acts
as the financial intermediary charges a 30 bps commission. You have to design a plain
vanilla interest rate swap so that Amaltas can access floating rate loans and Bavarian
Motors can access fixed rate loans.

Company Borrowing at fixed rate in Borrowing at floating rate


Euro-Bond Market in Euro-Bank Market

Amaltas Designs 8.0% LIBOR + 0.5%

Bavarian Motors 9.6% LIBOR + 1.2%

(10 marks)

Q4. Below is the Black Scholes Model option premium and Greeks of an underlying asset with
a spot rate of Rs. 500, Strike price of Rs. 490, Time to expiry of 8 days. Annual interest rate
is 5% while annualized volatility is 25%.
Call Option Put Option
Theoretical Price 13.75 3.213
Delta 0.724 -0.276
Vega 0.248 0.248
Theta -0.434 -0.367
Rho 0.076 -0.031

a) How much will be the theoretical change in call and put premium amounts if the
underlying asset price declines to Rs 499?
b) How much will be the change in call and put premium amounts if the volatility
increases by 1%?
c) Suppose an investor takes a short call on 1 lot having 500 shares in that. To hedge his
options position, he is interested to create a long position in cash. How many shares he
should buy for long position using delta hedging? (5+5+5= 15 marks)

Q5. (A) An investor is interested to play in the options of Tata Motors which is currently at Rs
148. The view of investor is that the share price of Tata Motors will revolve around the
current price during the life of the option. Below are the strike rates and premium amounts
of the underlying:
Call Strikes
Premium
7 145
6 148
5 151

Create a butterfly strategy for the investor and find his net pay if the actual price of the stock
on expiry is 130, 140, 150, 160 and 170. Out of these prices, which price will give him the
highest payoff on expiry? (15 marks)

(B) a) Briefly describe the key ways using which an investor/trader can price options.
b) What is the interpretation of N(d1) and N(d2) in Black-Scholes Model? (10+5 =15 marks)

Q6. a) Describe VaR (Value-at-Risk) concept with an example? How is it useful in the financial
risk management? (10 marks)
b) What are exotic ‘Binary’ and ‘Shout’ Options? Give examples. (5 marks)
c) How are the real options helpful to managers for their project evaluation? (5 marks)
FORE School of Management, New Delhi
Post Graduate Diploma in Management (FMG 28/IMG 13 /FM 02)
End Term Examination Term- 4 (2020-2021)
Course Name : Advanced Marketing Research

Time: 2 Hours Max Marks: 100


Instructions: a. This question paper contains 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.

Questions………………………………
1. Explain the statement with example – “A descriptive research design is formal and rigid than
exploratory research design”. (10)
2. Explain the following concepts with example – (15)
a. Census vs. Sample
b. Problem Identification Research
c. Decision Problem vs. Research Problem
d. Measurement Scaling
e. Issues related to International Marketing Research
3. Management of an automobile company wants to explore the relative importance given by
consumers in terms of “Price” and “Size” of vehicle. Both the attributes have three levels namely
“low”, “medium”, and “high” as shown below –

Attribute Level Level No


Price Low 1
Medium 2
High 3
Size Low 1
Medium 2
High 3

The respondents have given preference rating in a scale of 1 to 9 for different combinations of
attribute level. The regression equation for this is found to be as below –
U = 4.222+X1-0.333*X2+X3+0.667*X4
Where X1, X2 are dummy variables representing price at low and medium level respectively.
X3, X4 are dummy variables representing size at low and medium respectively.
Calculate the part-worths of all the attributes’ levels and relative importance of each attribute. (15)
4. The attitude of a person towards a product is believed to be a function of two variables namely
Durability and Perceived Usefulness. The following table represents the responses of five respondents
regarding attitude towards the product.
Respondent No. Attitude Toward the Durability Perceived Usefulness
Product
1 6 10 4
2 9 12 10
3 8 12 4
4 3 4 2
5 10 12 10

Calculate the regression equation and strength of the relationship. (15)

5. A bank wants to build a model in order to predict whether a person will default a loan or not based
on his profile. The bank has past records of all the defaulters and non-defaulters. Which technique
will be suitable for this problem? Justify your answer. (10)
6. Define ANOVA. Give two examples of problems which can be explored with ANOVA. Differentiate
between ANOVA and ANCOVA. Cite one example of ANCOVA. (10)
7. What do you mean by factor analysis? Mention the circumstances in which a researcher uses factor
analysis. Following are some of the snapshots from factor analysis in SPSS –
Based on the above output answer the following questions –

a) Whether factor analysis is suitable? Justify your answer.

b) If factor analysis is suitable, how many factors should be considered? Mention the total variance
explained by the factors. Justify your answer.

c) Suppose there are three factors, list down the items of each factor.

(15)

8. A company has 10000 data points on 10 attributes of potential customers. The company wants to
segment these customers into a number of segments. However, the company does not have any prior
idea about the number of clusters to be considered in the analysis. Which type of clustering technique
should they use? How should they validate their results? Justify your answer. (10)
FORE School of Management, New Delhi
Post Graduate Diploma in Management (FMG 28/IMG 13/FM 02/FPM)
End Term Examination Term-4 (2020-2021)
Course Name: International Financial System

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 the response
e. State assumptions made, if any
f. Answer all questions
g. Marks are indicated in the right hand parenthesis against
each question.

1. (a) The currency pair USD|SGD exhibits the following bid-ask:


1.3590 – 1.3600
How would one interpret this in a forex market?
If a dealer wants to know SGD|USD bid-ask, what would it be? [10 marks]

(b) The direct rates between two currencies at a point in time are as stated below:
USD|CAD 1.3200
GBP|USD 1.2900
What would be the GBP|CAD cross-rate derived from these direct rates?
Under what condition would a trader enjoy an opportunity for triangular arbitrage?
[15 marks]

2. “The Government of India has announced the launch of Floating Rate Bonds, 2020
(Taxable) with an interest rate of 7.15 per cent. The bonds are available for subscription
July 1, 2020 onwards. As per the Reserve Bank of India (RBI) press release, the interest
rate on these bonds will be reset every six months, the first reset being on January 01,
2021.” [Source: The Economic Times]
Floating Rate Notes is the second most common type of international bond issues.
What would be the coupon rate and amount for the period beginning January 01, 2021
given the following hypothetical information?

FRN Face Value: INR 1,000


Reference rate/base rate: NSC rate
Risk premium = 35 basis points
Assume that at the beginning of every six-month period, the next semi-annual coupon
payment is reset to be 0.99* (NSC rate + risk premium) of the face value, and the NSC rate
prevailing at that time be 6.6 %. [15 marks]

3. “The novel coronavirus crisis has destabilized financial markets and has placed
increasingly severe stress on financial institutions…Even as the financial system wrestles
with the current pandemic, another crisis is approaching faster than many care to admit:
Climate change is upon us, and the financial system is exposed.” [Source: Center for
American Progress]
What are the different risks arising out of the climate change? Explain citing examples.
[15 marks]

4. “State Bank of India, with one of the largest strategic banking relationships worldwide,
provides you and your customers the benefit of our international reach and wide range of
global correspondent banking services. As your correspondent banking partner we offer
you the full range of our business expertise, service offerings and experience of over 90
years, with valued relationships with over 1250 leading banks across 112 countries.” The
Bank boasts of having over 200 offices in 32 countries. [Source: SBI]
The current global environment is of deregulated banking systems. Both sides of banks’
balance sheets typically have international exposure for not just the SBI, but many of the
players.
What are the factors driving this internationalization?
How does the legal structure of bank branches vary from subsidiaries, and what factors
influence the choice between the two? [20 marks]

5. (a) The weightage of Indian companies’ stocks in the global indices of MSCI varies over
time. MSCI recently deferred raising of India’s weight in its global indices. What
implications does it hold for India? [10 marks]

(b) MasterCard recently moved to Delhi High Court citing the issue of double taxation.
State very briefly about the issue.
What, in general, is the issue of double taxation in the international tax environment, and
why does it arise? [15 marks]
FORE School of Management, New Delhi
Post Graduate Diploma in Management (FMG 28/IMG 13 /FM 02/ FPM)
End Term Examination Term-4* (2020-2021)
Course Name: Advanced Project Management

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 the response
e. State assumptions made, if any
f. Answer all questions
g. Marks are indicated in the right hand parenthesis against
each question.
i. Please mark page numbers clearly in your answer sheets and also
scan all pages in serial order and only in Portrait format
(even if you have a written a few pages in landscape format. )

Question 1 (20)
How would you build a high performance team as a project leader? What are the key stages? Give a few
examples form cases you have studied or any real life project situation.

Question 2 (20)
Explain risks associated with levelling resources, crashing projects and with multiple project scheduling.
Illustrate with examples.

Question 3 (20)
What all changes need to be made in project management life cycle stages to cope up with uncertainty such as
Covid 19. How would you do execution, monitoring and control differently than conventional method
followed so far. Give a few examples of possibilities.

Question 4 (20)

Given the project network and baseline information below, complete the form to develop a status report for
the project at end of period 4 and end of period 8. Form the data you have collected and computed for the
periods 4 and 8, what information you are prepared to tell the customer about the status of the project at the
end of period 8?
1/3
2/3
Question 5 (20)

If the indirect cost for each duration are US$1200 for 16 weeks, US$ 1130 for 15 weeks, US$ 1000 for 14
weeks, US$ 900 for 13 weeks, US$ 860 for 12 weeks, US $ 820 for 11 weeks and US$ 790 for 10 weeks,
compute total cost for each duration, Plot a cost graph. What is optimum cost time schedule?

3/3
FORE School of Management, New Delhi
Post Graduate Diploma in Management (FMG 28/IMG 13 /FM 02/ FPM)
End Term Examination Term-4 (2020-2021)
Course Name Strategists’ Toolkit and competitive intelligence

Time: 2 Hours Max Marks: 100


Instructions: a. This question paper contains Four 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.

PART A (2X20 Marks each Total 40 Marks)

Q1. The client Tesla Motors, Inc. is an American company that designs, manufactures, and sells electric
cars and electric vehicle (EV) powertrain components. Headquartered in Palo Alto, California, Tesla
Motors was incorporated in July 2003. Tesla’s primary goal was to commercialize electric vehicles,
starting with a premium sports car aimed at early adopters and then moving as rapidly as possible into
more mainstream vehicles, including sedans and affordable compacts.
The year is 2008. Mr. Elon Musk, Chairman and CEO of Tesla Motors, wants to know how to position a
new car model, the Tesla Model S in the market. The CEO has retained your consulting firm to advise
him.
1. Assess and evaluate whether the EV industry is attractive for our client.
2. The CEO asked you to help him develop strategies to identify the right segment they can sell the new
vehicles to.
3. Can you estimate the profitability in terms of?
a. Average Price per Unit and Profitability per Unit
b. Potential market size and profitability calculations
Additional Information
1. Company
The client Tesla Motors is a startup, started in 2003 by Martin Eberhard and Marc Tarpenning, that has
developed a new patented battery technology that is validated and tested for viability in cars.
The client Tesla Motors has currently one product in the market (Tesla Roadster) and they are planning to
release their second vehicle (Tesla Model S) in the next 24 months.
When candidate asks about the current car model Tesla Roadster, provide the following information about
their current product.
2. Current Car Model
Purchase Price Segment

Tesla Roadster $110,000 Premium Sports


The Tesla Roadster has the following ratings across its features (on a scale of 1-10)
Purchase Price Styling Performance Quality Safety Features Green Rating
Tesla Roadster $110,000 9 10 6 6 6 10

Electric Vehicle Utility By Feature

EV Segments and Share of Competitors

Segment Competitor Average Units Average Cost to


Segment
Worth Share Sold Produce
Sports Segment $1 billion 80% 8,000 $90,000
Premium Sedan
$1.2 billion 75% 18,000 $43,000
Segment
Sedan Segment $1.8 billion 82% 36,900 $38,000
Coupe/Other $1 billion 95% 32,000 $33,000

Q2. Your client LimoLiner is a Northeast-based luxury bus company that operates inter-city passenger
buses along the Boston – DC corridor. The client has been in this market for over 40 years and has been
reasonably profitable for most of that time. LimoLiner buses have larger leather seats with more legroom
than typical intercity buses. In addition to a bathroom, the bus has an attendant and a small galley
provisioned with free light snacks.
In recent years, the client LimoLiner’s market share and profitability have been declining. Looking at the
competitive landscape, the CEO of LimoLiner recognizes that a number of low-cost, no-frills bus
companies have entered the market. As a result of these new entrants and high gas prices, overall demand
for inter-city bus services has been on the rise even as our client loses customers.
1. determine whether they should launch their own low-cost bus line.
2. And if so, how they should compete in this market?
Additional Information:
Limoliner expects gross margins of 40% in the businesses which it enters into. The market growth is
expected to be around 5% per year. LimoLiner’s two main routes are Boston – New York and New York
– DC. There are 5-6 competitors on each route. The low-cost bus lines (Lucky Star Bus, Fung Wah Bus,
Yo! Bus, Bolt Bus, etc) typically operate out of Chinatown in the respective cities or pick up on the street
(not in stations). They tend to use older equipment and have poor reputations for reliability and safety.
The client LimoLiner is struggling most with “first-time riders”, who tend to be younger, perhaps in
college, and are riding inter-city buses for the first time. The client has a stable base of long-term customers
where they have not seen much erosion.
The client currently charges $40/one way on the Boston-New York City route. Low cost competitors are
currently charging an average price of $15/one way. Each bus has capacity of 60 seats and estimated
average utilization of 67%. Fixed Costs: (bus operates 330 days/year at 3 trips per day, thus ~1000 trips
per year). Cost of procuring a bus is $250k (useful life of 10 years). Cost for Operations & Maintenance
is: $20k/year and Insurance charges are $15k/year. A look into the variable cost reveals Labor: 1 driver at
a wage of $25/hour for 5 hours. Fuel: $4/gallon, 200 miles, 10 miles per gallon and Tolls: $75/trip
PART B (4X15 Marks each=60 Marks)

Q3. Our client is a fresh MBA just graduated from business school. Encouraged by the recent technology
and Internet startups boom, and also, to make the world a better place, the client has just founded a startup
company together with two business school classmates. Their business plan is very simple: to start an
online ice cream delivery shop.
Similar to other online food ordering companies like GrubHub, Seamless, Delivery Hero, Just-Eat,
FoodPanda, etc, the client’s startup works like this: They will buy an ice cream store first, then build a
website which would list different kinds of ice cream they sell, as well as menus from local ice cream
shops. The users would then use the website to place orders online. The client would then be responsible
for arranging the ice cream delivery, either from the client’s own store or from local ice cream shops. The
client would generate revenues by charging a small commission fee to ice cream shops for every customer
order from their website. Is this a good idea? Why or why not?
a. What factors should you consider with this type of business?
b. Estimate the market size (in $) in the United States for online ice cream delivery (averaged over
the year) with population 300 million.
c. Is this an attractive business?
Q4. You are a second year MBA student with a strong appetite for entrepreneurship. The other day you
walk into your apartment and you find a baby dinosaur in the corner of your room. What do you do? The
baby dinosaur is the only one in the world, and it turns out he is friendly. No other information regarding
the baby dinosaur is available.
a. What are possible ways to monetize or make money in this situation?
b. What would you prefer to do, sell the dinosaur or use it for a business? Why? What are the
possible costs and revenues you can generate in each case?
c. What are the potential risks in this situation?
Q5. Draw an issue tree depicting How can you have more money at the end of each month without
incurring a debt?
Q6. Define Competitive intellegence? Outline the steps in intellegence cycle? Comment upon the enablers
to the intellegence cycle?
FORE School of Management, New Delhi
Post Graduate Diploma in Management (FMG28/IMG 13/FM 02)
End-Term Examination, Term - 4 (2020-2021)
Learning & Development

Time 2 Hrs. Max.Marks :100


Instructions:
1. This question paper contains 2 pages
2. Possession and use of cell phone is prohibited
3. Be brief and to the point in your response
4. Clearly state assumptions made, if any
5. Answer all questions
6. Marks are indicated in the right hand parenthesis against each question

Question You are asked to design and deliver a two-day training workshop for managers on
1 ‘Effective Feedback Skills’. It is focused primarily on performance reviews.
Approximately 100 managers need to be trained.
a) If you were the training consultant in this case what would be the questions in
your mind before you set out to design the workshop? List down the questions (15
and your justification for the same. Your questions and justifications should )
reflect your understanding of the systematic training process.
b) What are some of the organisational constraints that may affect your training
design? Why?
c) Describe what the content of the training would entail, the methods you
would use (e.g., lecture, case study, role-play), and the instructional media (5)
and equipment you would want, and explain why. State your assumptions
clearly.
d) How would you ensure that you keep a trainee’s interest during training? (15
)

(5)
Question Below given are a few learning objectives.
2 i. The Manager will be able to show how a meeting is to be conducted
ii. The learner will be able to explain the method of welding a metal pipe
iii. The participants will be sensitized to the issues involved in management of
change in the process of claim reimbursement
iv. The procedure of chemical analysis will be explained to the participants in detail
v. The participants will be able to demonstrate the use of an LCD projector, using
suitable power source, a PC and a wall screen so that the projection from the
computer screen is clearly projected on to the wall screen, with illumination and
size as prescribed in the manual. The total time from set-up to projection should
not take more than 10 minutes.
Answer the following:

10
a) Using the guidelines for framing learning objectives as reference, analytically
comment on the appropriateness or otherwise of the manner in which the
objectives have been framed. (15
b) Rephrase the objectives in conformity with the requirements of objective- )
writing (if required).
c) Do you think writing objectives serves any practical purpose? Explain. (10
)

(5)
Question The Training Manager of Sona Steering, an auto ancillary, had meticulously designed
3 a training program on preventive maintenance for the maintenance engineers and
maintenance supervisors of the plant. The training was designed because of rising
numbers of equipment breakdown and, therefore, unscheduled maintenance breaks
resulting in loss of production time and a rise in operations costs. After extensive
discussions with all stakeholders and examining production and maintenance logs, this
training program was designed and then implemented strictly as per design. After a few
months it was found that there was hardly any reduction in number of breakdowns.
Thinking analytically and applying all L&D concepts that you have learned explain
what could be the possible reasons for training failure. Please be precise in your
answer. Unnecessary wordiness may attract penalty.
(30
)

11
FORE School of Management, New Delhi
Post Graduate Diploma in Management (FMG 28/IMG 13/FM 02)
End Term Examination Term- 4 (2020-2021)
Course Name Commercial Banking Practices and Treasury Management (CBPTM)

Time: 2 Hours Max Marks: 100


Instructions: a. This question paper contains two Pages
b. Possession and use of cell phone is prohibited
c. Use of financial calculator is allowed
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.
Questions………………………………

1. In banking “Money is at the start, Money is in the middle and Money is at the end”. 15

In the backdrop of the above statement, explain the business model of commercial banks and discuss the impact
of some key banking ratios, at input (money at the start) an output (money at the end) stage, on the financial
performance of banking companies.

2. Given below is select financial data of Bank One (Rs.in crore). 10


Capital 10000 Deposits 90000
Calculate the Total assets, capital to total asset ratio, and capital to deposit ratio. What does these ratios imply?
Discuss what will happen if, Bank One’s total asset portfolio shrinks by 5% due to non-payment by group of
borrowers engaged in real estate development business? Suggest specific actions Bank One’s management
should initiate to manage the situation.

3.1. Draw an illustrative “Lending Cycle Tree (Lending Life Cycle) framework of a commercial bank and briefly
describe the components and the activities involved in each stage of the lending life cycle. 10

3.2. Bank One has been approached by Royal Hygiene Products (RHP), a manufacturer of masks and alcohol
based sanitizers across India, for seeking working capital finance. RHP has projected sales turnover at Rs.1500
lakhs for the financial year 2020-2021. However, after extensive discussions, RHP agreed with Bank One loan
officer to work out credit limits on the basis of the sales turnover of Rs.1280 lakhs. 20

Using the information given above and applying the projected turnover method, calculate the working capital
requirement of RHP. Determine the maximum working capital finance (MPBF) that Bank One will actually
sanction assuming margin made available by RHP from long term sources is (a) Rs. 96 lakhs; (b) Rs.40 lakhs;
(c) Rs. 64 lakhs, respectively. Discuss the implications for the borrower under each of the scenario. Highlight
the factors, Bank One’s loan officer might have used in determining the reasonableness of the projected turnover
and the importance of “two-way out principle” in extending credit facilities.
4. Given below is the abridged balance sheet of Luminas Auto Ancillaries. 10
(all figures in crore of rupees)
Balance Sheet of Luminas Auto Ancillaries as on June 30, 2020
Shareholder funds 250 Current assets 500
Long term debt 500 Non-current assets 2000
Short term debt 1750
Total Equity and liabilities 2500 Total assets 2500

As loan officer Bank One would you be likely to recommend the working capital loan request after looking at
the balance sheet of Luminas Auto Ancillaries. If yes, why? If no, explain.

5. Rainbow Enterprises is in the business of manufacturing and exporting high-end garments and accessories.
Rainbow sources raw material from overseas as well as from domestic companies. Rainbow’s products are high
end lady’s gowns and accessories. All finished products are exported to Europe and America. 10

12
As a loan officer of Bank One, introduce and describe the salient features of various types of trade finance
facilities suitable for Rainbow Enterprises through their entire trade cycle.

6. Fine Chemicals has an outstanding loan of Rs.12 crores with Bank One for the current year. As per loan
agreement, company reports select financial data to the bank each month. Fine Chemicals has announced within
the past two months that it is switching to new methods for calculating the depreciation of its fixed assets and
for valuing its inventories. Fine Chemicals board of directors is planning to discuss at its next meeting, early
next month, a proposal to reduce share dividends in the coming year. 25

Current One Two Three Four


Month Month Ago Months Ago Months Ago Months Ago
Cash account (Rs. in crores) 66 114 102 88 86
Projected sales (Rs. in crores) 596 590 588 582 576
Monthly average price per share 13.20 13.00 12.80 12.50 13.00
Capital structure (equity/debt ratio ) 30.8% 33.9% 34.6% 34.9% 35.7%
Liquidity ratio 1.10 1.23 1.3 1.39 1.25
EBIT (Rs. in crores) 30 28 26 22 26
Return on assets 3.32% 3.25% 2.98% 3.13% 3.11%
Sales revenue (Rs. in crores) 540 570 576 578 574

Based on information and select data presented above:


• Do you think there are indications of Fine Chemicals developing into a problem loan? In what
accounting, financial and operational dimensions of Fine Chemicals performance should Bank One be
concerned?
• Would you recommend Bank One to continue supporting Fine Chemicals? If yes, what additional
information/data you will call for making informed decision? List out the primary and the secondary
sources of repayment assuming Bank One chooses to support Fine Chemicals.
• Recommend at least six loan covenants (affirmative/negative/financial/operational) that Bank One
should stipulate for continuing loan facility to Fine Chemicals. Explain in what ways each of the
covenants would strengthen the position of Bank One.

13
FORE School of Management, New Delhi
Post Graduate Diploma in Management (FMG 28/IMG 13 /FM 02)
End Term* Examination Term- 4* (2019-2020)
Course Name :_Procurement Manufaturing Planning and Control

Time: 2* Hours Max Marks: 100


Instructions: a. This question paper contains _1_______ 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.

Q.1 Differentiate between Distributive and Integrative Negotiation Styles? Explain with
examples (15)

Q.2. Explain the following terms in contracting:


a) EMD (10)
b) Liquidated Damages (10)
c) Security Deposit (10)
Q.3. Differentiate between Reverse Auctions and Auctions? Also differentiate between
English and Dutch Reverse Auction? Why do you think paintings, IPL players and Tea are
traded in Auctions. (20)

Q.4. For the given three commodities (Copper, Coffee, Crude Oil), and explain the buying
procedure for the same. Illustrate the risks that are there in the supply chain and how does
it impact the sourcing for the same. (20)

Q.5 Why is it important for organizations to have a written ethics policy? What is the
importance of the top management’s commitment to the policy? You are a supply manager
for a major distributor” the CEO has strongly recommended that you buy the lighting
products for the new municipal stadium from a supplier that belongs to the CEO’s country
club. How would you handle this attempt to influence you? (15)

14
FORE School of Management, New Delhi
Post Graduate Diploma in Management (FMG 28, IMG 13, FM2)
End Term Examination Term-4 (2020)
Competency Mapping
Time: 2 Hours Max Marks: 100
Instructions:
• Possession and use of cell phone is prohibited
• This question paper contains 2 Pgs.
• Attempt all the questions
• Be brief and to the point in your answers.
• State assumptions made, if any
• Marks are indicated against every Q.

Q. 1 Refer to the Job Profile provided, and answer the following questions:
1. Apart from the two elements of Competency models i.e., Competency and Proficiency Levels, 15
identify any other four elements of Competency models for the job profile. Briefly explain the
four elements and clearly illustrate an example for each.

2. Comment on the significance of weightage assigned to competencies in competency models. 10

3. Draw a Competency-Assessment technique matrix (with relevant 4-5 competencies and 5+


assessment techniques each), which can be used in assessment center for the profile given. 10
Describe a most appropriate assessment technique to be used to assess the Competency:
Leadership and Navigation: The ability to direct and contribute to initiatives and processes within
the organization
15
4. Apart from the basic or general information such as name, function/dept., designation, Marks
management level, experience etc., identify three points of really critical information required in
a consolidated assessment sheets of candidates. Briefly explain how these points (must be
mutually exclusive to L&D and Hiring) support in making effective L&D and hiring decisions.

Q. 2 Identify the factors that govern the choice of tools/methods for identifying successful employee 5
competencies? Describe a secondary data collection method that can provide rich information to identify 10
competencies required in a job. Marks

Q. 3 Briefly discuss the concerns that need to be addressed in the development and application of competency 10
models.
Also, mention the measures to be taken for making a valid competency model (intuitive/ empirical/ hybrid). 10
Marks
Q. 4 Give three different illustrations of depicting Proficiency Levels in competency models. 10
OR Marks
Briefly discuss the ways of effective integration of Competency Models to HR systems?

Job profile of Head of Consumer, Ads & Promotions @ BrandRoot:

About BrandRoot
BrandRoot is a technology company that connects customers with their favorite local and national
businesses in over 5000 cities across India, US and Canada. Founded in 2015, BrandRoot empowers
merchants to grow their businesses by offering on-demand delivery, data-driven insights, and better in-
store efficiency, providing delightful experiences from door to door. By building the last-mile delivery
infrastructure for local cities, BrandRoot is bringing communities closer, one doorstep at a time.

For the position of Head of Consumer, Ads & Promotions:


BrandRoot’s Advertising & Promotion team operates at the intersection of e-commerce and advertising,
surfacing and monetizing relevant content that benefits our core audiences. We provide digital solutions
to help advertisers reach all BrandRoot audiences (consumer, dasher, and merchant). This role is a critical
driver of BrandRoot’s growth and success in India, United States, and Canada. Reporting to the VP of Ads
& Promotions, the Head of Consumer Promotions, will manage the Promotions P&L and work cross
functionally with marketing, sales, operations, analytics, product, and senior leadership team to drive our
business forward.

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Major responsibilities include:
• Build a major pillar of our Advertising and Promotions business unit. You will do whatever it
takes to scale, from high level strategy to nitty-gritty operational details.
• Evaluate and prioritize new opportunities, performing quantitative and qualitative due diligence
• Balance the marketplace. You will assess the operational and financial impacts of your decisions,
and iterate based on data.
• Managing data and comfortable pulling your own data in SQL and modeling in excel.
• Managing very broad challenges or opportunities and turn them into actionable projects with clear
milestones and goals, with minimal guidance.
• Lead a team, and collaborate with cross functional partners including sales, marketing, analytics,
product, and our senior team.
Required:
• 10+ years of experience in high performance environments including (but not limited to)
technology, consulting, private equity, operations, business development or similar role
• Minimum 5 years in management position, with experience managing a P&L.
Preferred:
• Established senior-level industry-relevant contacts a plus, but not required

16
FORE School of Management, New Delhi
Post Graduate Diploma in Management (FMG 28/IMG 13 /FM 02/ FPM)
End Term Examination Term-4* (2020-2021)
Course Name _ Marketing Strategy with Markstrat Software

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 the response
e. State assumptions made, if any
f. Answer all questions
g. Marks are indicated in the right hand parenthesis against
each question.

PART A (40 marks)


Read the cases carefully and answer the questions.
Case 1
Your Town was considering implementing a bicycle-sharing plan as a means of easing street
congestion, reducing vehicular emissions, and promoting a healthy lifestyle. Some U.S. cities had
embarked on pilot programs, often drawing inspiration from European models. The mayor
requested both a bicycle-sharing strategy and an implementation plan including bicycle storage
locations and numbers of bicycles per location. European cites with bicycle-sharing programs
included Paris (20,000 bicycles), Lyon, and Rennes in France; Barcelona and Pamplona in Spain;
and Dusseldorf in Germany. Copenhagen, and Amsterdam had similar programs. From the
perspective of transportation policy, a city could secure a considerable fleet of bicycles for the cost
of a bus. For residents, bicycles offered a low-cost, healthy alternative to often-crowded public
transportation. The most successful programs were so-called third generation.
First-generation programs involved scattering old bicycles around the streets where they could be
used for free. Second-generation programs accepted coins. Third-generation programs used new
bicycles and advanced technology to gain bicycle access. In one program, users paid an annual
$30 membership fee and received a smart card that secured a bicycle from a mechanized rack. The
first 30 minutes were free, then the rider paid 30 cents per half hour — if the bicycle was not back
in a rack within two hours, the card might be deactivated. In an alternative system, members
received cell-phone text messages containing codes to unlock the bikes. In southern European
cities, the average bicycle was used 10 times per day. Observers believed the strong car culture,
longer commutes, and a preference for wearing helmets had slowed U.S. adoption.
In several cities, private organizations operated bicycle-sharing programs. In a typical
arrangement, the city gave a private company rights to advertise on city-owned properties in
exchange for the program; the private firm secured revenues by selling the advertising space.
Bicycle-sharing programs were not without their problems. Car owners complained about the
removal of parking spaces to accommodate bicycle racks. Demand and supply were sometimes
misbalanced; some racks might run out of bicycles, and racks in popular areas might fill up, so
riders had to search for parking. Some cites have a central monitoring station; employees using
trucks rebalanced the system. Regardless, Your Town’s mayor was keen to explore the
possibility of a bike-sharing program and has asked you to develop the market strategy and
implementation plan for a potential program. (10 +10=20)
Case 2

Recent Columbia Business School graduate Julian Cook was contemplating the prospects for his
entrepreneurial startup. Newlines Airways would be a business-class-only airline flying from
Stansted Airport (north of London) to John F. Kennedy Airport in New York. Julian had raised
$1.8 million from angel investors and spent four months setting up the company in London. As he
contemplated raising venture capital, he reviewed the market segmentation ideas at the heart of his
plan. Julian knew that market segmentation was fundamental to developing the market strategy
and that many domestic and international airlines practiced it.
He believed the most common approaches identified business and leisure customers. Airlines used
several devices to separate business and leisure passengers in the coach section of airplanes: •
Saturday-night stayover. Leisure fares were substantially higher if the passenger completed a
round trip within one week — typical for many business travelers. By staying over on Saturday
night, fares were typically lower. • Booking Time. Flights were typically cheaper when booked far
in advance. When bookings were closer to the flight time — business people traveling for urgent
meetings — prices were higher. Leisure travelers were most concerned with getting from A to B,
generally wanted low fares, and were prepared to put up with cramped seating arrangements and
sitting in the back of the airplane.
Many business people also traveled in the coach section, but some business customers were willing
to pay substantially more for roomier seats, high quality meals, and generally better service; they
sat in the front of the plane. Some airlines also offered extra high-quality service for first-class
passengers at even higher prices. Generally, airlines used a single airplane to cater to all types of
customers, but there were exceptions. The most notable was Southwest Airlines (SWA), founded
in 1971. SWA offered low fares on its flights and had grown to be the largest domestic U.S. airline.
Other airlines copied and elaborated on SWA’s model.
The most notable examples were Ryanair and EasyJet in Europe. When discount airlines like these
launched service, they generally expanded primary demand substantially. Julian aimed to
capitalize on the widening price and comfort gap between business and economy class in long-
haul travel. Newlines would operate Boeing 757-200 aircraft configured with 80 seats, providing
a spacious and pleasant environment. Aircraft would be equipped with the latest technology to
enable business travelers to use their time efficiently while traveling. Newlines planned to start by
leasing two aircraft and to expand its fleet to six by the second year of operations.
Newlines would offer customers a compelling value proposition: high service levels and comfort
at 54 percent of the current published business class fare. Its price would be $2,500 for a roundtrip
ticket versus $5,500 for the major airlines. (Coach prices varied by season but averaged around
$500.) For companies with high volume demand, Newlines’ discount prices would drop to $2,000
for bulk purchases. Newlines would offer passengers considerable time savings, convenience, and
a lifestyle appeal, including fashionable interior cabin design. Specific planned services included
e-tickets, free transfers to/from airports, valet parking, larger carry-on luggage, no check-in,
reduced transfer time from offices, and personalized service like cuisine choice and showers at
destination. Newlines’ business model would allow it to reach break-even at 40 passengers per
flight and significantly reduce the risks of typical airlines that needed more passengers to reach
break-even.
The London-New York route was the busiest transatlantic route with about four million
passengers, growing at four percent per annum annually. Approximately 30 percent of passengers
were business travelers — 1.14 million. About two million passengers in Stansted’s catchments
area traveled to the USA; there were no regulatory impediments to Newlines’ service. British
Airways (12x/day), American Airlines (7x/day), Virgin Atlantic Airways (5x/day), United
Airlines (4x/day), and Continental Airlines (2x/day) served the London-New York route. They
operated out of Heathrow (west of London) and Gatwick (south of London) with wide-body
aircraft (B747s, B777s, B767s, A340s, A300s) and a three- or two-class cabin configuration. By
targeting such a dense route, Newlines believed that competition would be slow to respond.
Newlines’ initial planned market share was two percent and would not be considered a threat. The
London-New York route was highly extremely profitable for the airlines.
As he thought through the issues, Julian wondered about his chances of success. Had he got
the segmentation right? What had he forgotten? (10+10 =20)

PART B (60 marks)

Q1. “A Competitor may enter with a superior product or low cost advantage.” Explain the
potential risk factors in High Growth markets? How did you strategize in such a situation
during your markstrat journey? (6+6=12)
Q2. (a) What were the challenges you encounter while taking production decisions in different
rounds?
(b) How did you use Advertising Team experiments tool? Explain. (6+6=12)
Q3. (a) Brand Positioning starts with establishing a frame of reference. Elaborate all the
important questions one needs to answer in order to position a brand. Use an example of
your choice from the Markstrat experience to explain the process.
(b) The same brand and model of mobile is sold in specialty stores, discount stores,
category specialists, and warehouse stores. Why would a customer choose one store over
another? How did you decide commercial teams for the different segments? (6+6=12)

Q4. (a)Explain what mistakes your group made while doing Markstrat simulation. If given a
chance, what different steps you would take in Markstrat.

(b) Markstrat is now improved as DIGITAL Markstrat (Recent development), what are the
new decisions and reports you would like to have in the new game? (6+6=12)

Q5. Explain how you made use of following tools in Markstrat Simulation exercise. Also
illustrate with an example. (Any two)
a. Marketing Plan tool (6 marks)
b. Regression based charts (6 marks)
c. Growth Share Matrix (6 marks)
FORE School of Management, New Delhi
Post Graduate Diploma in Management (FMG 28/IMG 13 /FM02)
End Term Examination Term- 4 (2020-2021)
Course Name: Investment Banking

Time: 2 Hours Max Marks: 100


Instructions: a. This question paper contains 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

Q1. (a) Peerbhoy & Sons is one of the biggest conglomerate in the country and is listed on the stock
exchanges. While the IT business is flourishing, its two other business are struggling. The
hotel business is not making any money and is mostly operating at breakeven levels. The
consumer business is loss making and is supported by the cash from IT business. Peerbhoy
& Sons is now looking to focus on core areas of business and is ready to take hard decisions.
You are an investment banker with Silverman Brothers working for their advisory team.
You have to approach Peerbhoy & Sons with some investment banking deals. Discuss any
two proposals you will pitch to Peerbhoy & Sons representing Silverman Brothers, and
also give adequate reasons for your proposals. Also state your assumptions.

(b) What is the Green Shoe option embedded to an IPO and what is its purpose?
(c) What are the advantages of private placement over public offers?
(10+10+10=30 Marks)

Q2. Elixir Capital is considering a leveraged buyout of Redwood Inc. which is underperforming.
Elixir believes that it can turn it around after acquiring control of the Redwood Inc.
Redwood Inc currently has EBITDA of $200 million (mn), and Elixir Capital believes that
the new management team could keep this EBITDA flat for the next 5 years.
Elixir Capital has obtained debt financing of $600 mn at 10% interest, and Redwood Inc
expects working capital to be a source of funds at $7mn per year.

Depreciation is at $30mn. Redwood Inc requires capital expenditures of $30mn per year,
and it has a tax rate of 30%.

Assume no transaction fees, zero minimum cash required, and that Fixed Assets on the
balance sheet remains constant for the next 5 years. Also assume that excess cash is not
used to repay debt and, instead, it simply accumulates on the Balance Sheet

Calculate the purchase price required for Elixir Capital to obtain a 4.0 x multiple of invested
capital if it plans to sell Redwood after five years at an EV / EBITDA multiple of 6.5x.

(15 Marks)

Q3. Paige Industries Ltd. has the following information as at the end of the current financial
year.
Tangible Net Worth of equity is =1,18,00,000
Operating profit after Interest & before Tax = 52,00,000
Long-term borrowings = 90,00,000
Working capital Borrowings =20,00,000
Average cost of debt = 8%
Average Industry Return on Capital Employed (RoCE) = 18%
where RoCE is OPBIT/ Capital Employed

Using the above information calculate:


a) The annual super profit of Paige Industries
b) Present value of goodwill with the valuation horizon of 5 years and cost of capital
of 15%
(5+5=10 Marks)
Q4. Samaira Foods is merging with Gillian Farms. The deals share swap ratio has been fixed at
2:5 where 2 Samaira shares will be issued for every 5 shares held in Gillian Farms.
Additionally, cash of ₹1500 will also be paid to Gillian shareholders. Fair value of Avantha’s
share is ₹40.

Samaira Gillian Samaira Gillian


Liabilities (Amt in ₹) (Amt in ₹) Assets (Amt in ₹) (Amt in ₹)
Share Capital
Equity Shares of Rs. 10 each 75,000 15,000 Net Fixed Assets 62,000 16,000
Reserves and Surplus
Share Premium 5,500 1,800 Investments 34,000 12,000
General Reserve 17,000 5,200
P&L Account 4,500 2,000

Long Term Borrowings 14,500 7,500


Current Liabilities 8,500 4,500 Current Assets 26,000 6,500
Miscellaneous 3,000 1,500
TOTAL 1,25,000 36,000 TOTAL 1,25,000 36,000

Assets and liabilities of Gillian Foods company have been revalued by the due diligence team at:

Net Fixed Assets 17,500


Investments 18,500
Current Assets 5,000
Long Term Borrowings 8,500
Current Liabilities 5,200

Create the new merged Balance Sheet and answer the following questions.
a) What is the value of total assets in the new Balance Sheet?
b) What are the values of the Share Capital Account and Share Premium Account?
c) What is the value that is transferred to the new Capital Reserve account which is
created on the new Balance Sheet?
(5+5+5 =15 Marks)
Q5. BVP Ltd. is planning to merge with SKP Pharma in 2020. BVP Ltd. expects to generate an
incremental revenue of Rs. 2,20,00,000 due to jump in market share. BVP also expects pretax
operational cost savings on marketing and sourcing to the tune of Rs.95,00,000 from the year
2022 onwards. The merged entity’s pretax profit margin is 22% while the effective tax rate
would be 27%. The combined cost of capital is expected to be 14%. The synergy which is
expected to be generated post the merger is estimated to grow at an annual rate of 6%.
Particulars BVP Ltd. SKP Pharma
Current share price 300 150
No. of shares outstanding 40,00,000 8,00,000
EPS 70 15

a) If the merger happens at current market prices, what will be the new earnings per share
for the combined entity in 2020, if we ignore the synergy.
b) What is the estimated NPV of synergy in the current year, i.e. 2020?
(7.5+7.5 =15 Marks)

Q6. Marbella Ltd. is negotiating a friendly acquisition of Somerset Group. The management team
of both companies are discussing the nature of the deal with their respective investment
banking teams and legal consultants. Presently, they are also discussing two alternative
methods of payment. Other related information is given below:

Particulars Marbella Ltd. Somerset Group


Pre-Merger stock price Rs.700 Rs.250
No of Shares O/S 1000 300
Pre-Merger Market value Rs.7,00,000 Rs.75,000
Estimated NPV of synergy benefits Rs.40,000

Calculate the post-merger value of the combined firm and the respective gains for Marbella
Ltd. and Somerset Group shareholders under the following conditions, if
a) Somerset shareholders accept the cash offer of Rs.300 per share.
b) Somerset shareholders accept the stock offer of 0.5 shares of Marbella Ltd.
(7.5+7.5=15 Marks)
FORE School of Management, New Delhi

Post Graduate Diploma in Management (FMG 28/IMG 13 /FM 02)

End-Term Examination Term- 4(2020-2021)

Mergers & Acquisitions

Time: 2 Hours Max Marks: 100

Instructions: a. This question paper contains two 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.

Part A

Read the question and answer the questions posed towards the end. Answer to each poser should not
exceed 300 words.

Q1. Tata acquired Corus for a price of $12 billion making the Indian company the world’s fifth largest
steel producer. when the deal was started the price per share was 455 pence. But during the time of
acquisition, the price per share was 608 pence, which is 33.6% higher than the first offer. For this deal
Tata has financed only $4 billion, although the total price of this deal was $12billion.

POSER: Develop the Business Plan and Acquisition Plan for TATA before planning the deal. (MM
20X2=40)
Q2. : Nicholas Piramal Limited (NPIL) acquired the pharmaceutical division of ICI Limited on
March 26, 2002 for a consideration of rupees seventy crore (including fourteen crore for net current
assets); in addition, ICI has reimbursed NPIL rupees one crore towards the cost of acquisition. ICI is a
multinational pharmaceutical company, having an annualized turnover of rupees seventy-six crore, with
thirty-six crores from cardio-vascular formulations. Atenolol, propranolol, halothane and monosulfiram,
etc. constitute major bulk actives manufactured by ICI; Tenormin, Inderal, and Tenochlor (cardio-vascular
drugs, and Fluothane (an anesthesia) are its popular brands; these products contribute about 40 per cent
to its turnover. Globally, the pharmaceutical business of ICI was acquired by AstraZeneca; and in India,
the business has been acquired by NPIL. The prime intent of NPIL (valuing Rupees 946 crore) for acquiring
ICI was to gain leadership in the high-growth cardiology segment; additionally, large potential synergistic
advantage, like field force utilization, plant optimization, supply chain integration and economies of
scale, etc. were the motivations for the deal. With
acquisition of ICI’s pharmaceutical business in India, NPIL was expected to become a largest player in the
cardio-vascular market with an expected turnover of Rupees ninety-eight crore (in cardio-vascular).

POSER: What is the primary intent of this deal and Judge the impact of Deal by considering Flexible
Strategy Game Card (FSGC)Approach. (MM 40)

Part B

Q3. A common justification for mergers of competitors is the potential for cross-selling opportunities it
would provide. Comment on the challenges that might be involved in making such strategy work. (MM
10X1=10)

Q4. Determine the enterprise value of a firm whose projected free cash flow to the firm (enterprise cash
flow) next year is $1 million, WACC is 12%, and expected annual cash flow growth rate is 6% (MM
10X1=10)

9
10
FORE School of Management, New Delhi
Post Graduate Diploma in Management (FMG 28/IMG 13/FM 02)
End Term Examination Term- 4 (2020-2021)
Course Name: Creativity and Design Thinking for Strategic Value Creation

Time: 2 Hours Max Marks: 100


Instructions: a. This question paper contains six Pages
b. Possession and use of cell phone is prohibited
c. Only Non-Programmable calculator can be used
d. Marks are indicated in the right-hand parenthesis against each question.
e. Be brief and to the point in your response.
f. State assumptions made, if any
g. Answer all questions. Please answer the questions in serial order.

Please read the case titled “Deep Dive into the Work” and answer the questions that follow.

Case: Deep Dive into the Work

Vignesh, an MBA student, is based out of Mumbai. He has been in touch with his friend Tao (living in
Korea) for a few years. They both have been discussing the intellectual subject matter over phone calls.
Both of them share an interest in eastern philosophy. No doubt, most of their conversations are very
philosophical and full of intellectualized abstractions.

Vignesh now has a “design ideation firm.” He creates new product and service ideas for entrepreneurs.
Based on recent trends in the market and based on close empathetic observation of the people around him,
he proposes an idea for a new product that may solve the unique/emerging needs/wants of the people.
Similarly, for the service design, he looks for the gaps in the current service landscape.

To do so, Vignesh spends a lot of time traveling and observing people in various settings and talking to
them. Over two years, he has gained a working knowledge of 7 new languages: Tamil, Punjabi, Assamese,
Nepalese, Oriya, Sanskrit, and Konkani, in addition to a few local dialects of Hindi. He although feels that
a lot of money goes into travel, food, and accommodation. He is though sure that all this is an investment
rather than a burden.

Today, Vignesh has a video call scheduled with Tao. He wants to share about a recent book that he has
read. He feels that there can be many new products and service ideas that will emerge out of this single
book in the coming five-ten years. However, this is his gut feeling based on his observations of India and
Nepal's people during his travel. He is going to get his viewpoint checked with Tao today.

Vignesh sets his Skype in order; there is a ringtone already playing in the backdrop. As he fetches the
headphone, he hears a voice from the other end. It is Tao:

Tao: “Hi, Vignesh. How are you doing? So which new book has excited you? I’m curious…”

11
Vignesh has already shared the call agenda with him over an email.

Vignesh: “See, the book is named “Deep Work.” The book is written by Cal Newport, associate
professor of computer science at Georgetown University.”

Vignesh shared one article clipping that provides the introduction to the concept as, “Whilst deep-sea divers
could arguably perform it, deep work has nothing to do with submersion or geographical depth. Rather, it
refers to “cognitive depth” – our ability to work in a state of deep concentration and focus for a long period
of time, without distraction or interruption.”

Vignesh: “So let me share the key terms of this philosophy and their exact definitions that I have
accessed from memory.ai webpage:

Table 1

Terms Definitions
Deep work “Activities performed in a state of distraction-free concentration that push your
cognitive capabilities to their limits.”
Shallow work “Non-cognitively intensive tasks which are low-value and easy to replicate, like
responding to emails, scanning websites, and using social media.”
Cognitive fitness “Your ability to focus without distraction and get good performance from your
brain. It’s a prerequisite for being able to work deeply.”
Task residue “When you switch from one task to another, but a residue of your attention is still
fixed on the former task. First coined by Sophie Leroy.”
Depth philosophy “Your personal approach for achieving deep work, from completely removing
shallow work, to carving out regular periods for it in your daily routine, to
performing whole weeks of deep work at a time.”

Tao: “OK. Sounds interesting. What is the basic premise of the book? What is that author trying to
tell?”

Vignesh: “Hmmm. Let me share that four major principles as highlighted in the author's interview
with The New York Times newspaper. Let me share the excerpts from that interview. Again I think
I can put it as a table?”

Table 2

S.No. Rule
Rule #1 “The first rule is to “work deeply.” The idea here is that if you want to successfully integrate
more deep work into your professional life, you cannot just wait until you find yourself with
lots of free time and in the mood to concentrate. You have to actively fight to incorporate this

12
into your schedule. It helps, for example, to include deep work blocks on my calendar like
meetings or appointments and then protect them as you would a meeting or appointment.”
Rule #2 “The second rule is to “embrace boredom.” The broader point here is that the ability to
concentrate is a skill that you have to train if you expect to do it well. A simple way to get
started training this ability is to frequently expose yourself to boredom. If you instead always
whip out your phone and bathe yourself in novel stimuli at the slightest hint of boredom, your
brain will build a Pavlovian connection between boredom and stimuli, which means that when
it comes time to think deeply about something (a boring task, at least in the sense that it lacks
moment-to-moment novelty), your brain won’t tolerate it.”
Rule #3 “The third rule is to “quit social media.” The basic idea is that people need to be way more
intentional and selective about what apps and services they allow into their digital lives. If
you only focus on possible advantages, you’ll end up, like so many of us today, with a digital
life that’s so cluttered with thrumming, shiny knots of distraction pulling at our attention and
manipulating our moods that we end up a shell of our potential. In “Deep Work,” I introduced
this idea mainly to help professionals protect their ability to focus, but it hit a nerve, and
eventually evolved into the popular digital minimalism movement that I’ve been writing about
more recently.
For example, I’ve never had a social media account, and though I may have missed out on
various small advantages here and there, I’m convinced that it has had large positive impacts
on my professional output and personal satisfaction.”
Rule #4 ““Shallow work” is my term for anything that doesn’t require uninterrupted concentration.
This includes, for example, most administrative tasks like answering email or scheduling
meetings. If you allow your schedule to become dominated by shallow work, you’ll never find
time to do the deep efforts that really move the needle. It’s really important, therefore, that
you work to aggressively minimize optional shallow work and then be very organized and
productive about how you execute what remains. It’s not that shallow work is bad, but that
its opposite, deep work, is so valuable that you have to do everything you can to make room
for it.”

Tao: “Sounds interesting. So what do you plan to do now? What is the actionable in our meeting?”

Vignesh: “See. My point is that the entrepreneurs can think of a product or service rooted in this
philosophy. So I see a huge opportunity to turn this philosophy into something tangible. Let me
guide a few entrepreneurs to build a robust business model around this. As of now, I have noted
some simple, implementable principles. Would you mind another table… Hahaha?”

Tao: “Its raining tables today. Go ahead.”

Vignesh: “See, this one is fascinating. It is based on an article in the memory.ai webpage, and I
believe that the implementation of this philosophy into a product/service/solution would require a
mixture of the following five ingredients:
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Table 3

S. No. Dimension on which we need to help Arguments we can use to convince


customer customers
1 Understanding how they work best The easy route typically isn’t the most
satisfying
2 Removing distractions in their environment A little isolation is healthy and useful
3 Planning and protecting their deep working Time management is central to almost
time everything
4 Monitoring their behavior so you don’t distract Be honest about how you use your time
yourself
5 And then just practicing good self-discipline Have a little staying power
actually to deliver what they promised to do in
that time

I have also put pointers in the table on how we can convince the customers. I mean, the key
advantages of following this philosophy are also listed. So I feel that using this whole idea we can
create something… example, there could be a mobile app that can help people follow this?”

Tao: “See Vignesh. After so much research and discussion, let us not go back to the simplest thing
that comes to anybody’s mind. These days’ kids even are creating Apps. That’s not how a seasoned
design thinker would speak. Do you have made any observations in real-time? Any data or future
trend you are eyeing? Don’t give me this App Crap, which a layperson even can ideate for this.
Nothing bad in having Apps. We need them. But I expect more nuanced ideas. Every time I ask you
for a new idea, you always begin with a mobile app.”

Vignesh: “Sorry, Tao. My intention was not to trivialize the enormity of the task at hand by just
saying that. I’m open to suggestions.

Tao: “Look, you are trying to put people away from distraction. Why are you introducing another
one in the form of this App? By the way, have you done any brainstorming sessions on this?”

Vignesh: “I’m looking forward to a brainstorming session with my friends soon. And yes, I
remember once you told me that a needle has its utility and a rocket has it’s own. So I shouldn’t
mix these tools. I said App, just like that.”

Tao: “I had also shared with you what Donald Norman states (in Living with Complexity) - “We
must design for the way people behave, not for how we would wish them to behave.”

Vignesh: “Yes. I am sorry I was trying to force my way onto the people through this App idea. By
the way, I also remember you shared another quote from him from “The Design of Everyday
Things” that “Finally, people have actually to purchase it. It doesn’t matter how good a product
14
is if, in the end, nobody uses it.” I understand now that I need to see what matters to my target
audience.”

Tao: “Yes. Who is your target audience?”

Vignesh: “Let me share one person’s review of the book. He is Adam Zerner, and after reading the
book, he has made an implementation plan for himself and shared it on the Goodreads.com website.
Also, the blog at commoncog.com is quite handy for in-depth information.”

Tao: “No need to share the review. I will search for that on the internet and read… Let me share
something more important now. Even if the person is already willing to undergo this lifestyle
change, it is still not sure that the product and service you want to create would suit the person.
On the contrary, remember, if they are hard to follow this lifestyle, it certainly means that you are
targeting the wrong audience. Because the message is as straightforward as it can get.”

Vignesh: “Understood. So it means that vaguely defining the target audience, would not help.”

Tao: “I have three observations that you must agree. I’m texting you them as well:

1. Your description of the end beneficiary in its present form is too BROAD. It would be
best if you were SPECIFIC.

2. Don’t select students as your end consumers. You wouldn’t be able to make the business
work by just offering things for “FREE.” That’s not a sustainable business model.

3. When I say be specific, I mean to say that you shouldn’t say – “the solution you are
proposing will work for ALL office going people of ALL the ages living in ALL the cities of
ANY country”. That’s, unfortunately, a recipe to failure. No-one can create a product or
service for EVERYONE. Sorry for using these all caps. I know it sounds loud, but this point
is so important. Right?”

Vignesh: “Exactly. What I can make out of your argument is that being high in the specificity of
the target audience shows that:

1. I have spent time thinking through the problem.

2. The use cases being generated are specific and nuanced

3. I’m building on pinpointed real-data and observations about the exact audience.”

Tao: “OK. That is also something you can consider to be important. But don’t forget my three
points as well. And also, don’t just always begin with the idea of an app. OK?”

15
Questions:

1. This is about the philosophy shared by the “Deep Work” book; what are your real-time
observations about the changing work practices as you have witnessed over the past ten
years? Please share your detailed observations at a) workplaces you have seen; and b) day-
to-day functioning of common people at your home town.
(5+5=10 Marks; word limit 250 words)

2. Can you help Vignesh with problem understanding and subsequent ideation:
a. What 6 product/service/solution ideas for implementation of the philosophy of the
book “Deep Work” can you think? What are the merits and demerits of each idea?
b. If you were given a chance to pick one of these ideas, which one will you prefer and
why? What is the rationale for choosing that idea (Ic)? Illustrate the service/product
design pertaining to this idea.
c. What is the exact user persona for the target customer you have in mind for the single
chosen idea (Ic)? Detail your observations and assumptions about them. Classify these
observations into local (specific to a place, culture, or background) or global.
d. Through an empathy map, explain the preferences of target customers for the chosen
idea (Ic)? Create the tension matrix to highlight competing preferences.
(10+10+10+10=40 Marks; word limit 800 words)

3. Vignesh wants to create a robust and resilient business model for the chosen idea (Ic):
a. Explain, what are the three different plausible business model variants for the chosen
idea (Ic) to ensure a sustainable revenue stream? Rationalize, who will fund the
project in each of these cases until a workable and acceptable solution comes through?
b. Choose the most pertinent business model (BMc) (in question 3a). Create a context
map for the idea and identify the major contextual forces affecting the business model
(BMc). Create a business model stresstest matrix highlighting the effect of three
significant plausible future contextual developments on the critical elements of the
business model (BMc).
c. Looking from the implementation side, how can the negative factors in the business
model (BMc), as identified through the stresstess matrix (in question 3b), be
neutralized? What other implementation-side specific challenges can you foresee as a
design thinker in the business model (BMc), and how can these be overcome?
(15+15+20=50 Marks; word limit 900 words)

16
FORE School of Management, New Delhi

Post Graduate Diploma in Management (FMG 28/IMG 13/FM2)

End-Term Examination Term-4 (Academic Year: 2020-2021)

Course Name: Machine Learning, Blockchains, Fin Tech

Time: 2 Hours (End-Term) Max Marks: 100

Instructions: a. This question paper contains 1 Page.

b. Possession and use of cell phone is prohibited.

c. Calculators can be used

d. Be brief and to the point in your response,

e. State assumptions made, if any,

f. Answer all questions.

g. Marks are indicated in the right hand parenthesis against


each question,

Questions: 4

Q1) FORE is a large organization that generates lots of data every year. Enunciate on the
data generated by FORE using the 5V Model.

(20 Marks)

Q2) Explain the algorithm/s behind a typical Recommender System? (20 Marks)

Q3) If you were to make a new Cryptocurrency that has to overcome the problems with
Bitcoins, what would you do differently (technologically as well as non-technologically).
(20 Marks)

17
Q4) You are a Blockchain consultant who has been entrusted with exploring the potential of
Blockchains at FORE School of Management, New Delhi. Elaborate on the possible application
areas of Blockchains at FORE. For each application area that you propose, do not limit to the
Business Objectives that would be achieved. Go beyond to cover the way the Blockchain/s
would function, the type of Blockchain/s, how would you ensure trust, immutability etc.

(40 Marks)

--- The End --

18
FORE School of Management, New Delhi

Post Graduate Diploma in Management (FMG-28/IMG-13/FM-02)

End-Term Examination Term-4 (Academic Year: 2020-21)

Course Name - Managing Business on Cloud

Time: 2 hours (End-Term) Max Marks: 100

Instructions: a. This question paper contains 2 Pages and 2 main questions

with subparts.

b. Possession and use of cell phone is prohibited,

c. Only Non-Programmable calculator can be used /No calculator

be used,

d. Be brief and to the point in your response,

e. State assumptions made, if any,

f. Marks for each question are indicated in the parenthesis in the

Questions section

g. Answer all questions.

Questions

1. Imperfecto, a startup based in Mumbai, India, provides a social mapping platform available
on iOS, Android, and the web and supports the easy creation and sharing of maps by different
users around the world. The mission of Imperfecto is simple: make mapping a social activity.
The company strives to provide an attractive and intuitive mapping interface that allows users
to seamlessly share individual locations, or a collection of locations, and to discover new
places to explore. From inception, Imperfecto has made it a priority to maintain operational
efficiency with a small engineering team that is focused on the development of applications.
In addition to being able to put its resources toward application development rather than
infrastructure operations, the team’s key needs included the ability to scale effectively as the
company grew and an efficient way to measure application response time, error rates, and
service availability. The Imperfecto team needed an IT solution to help them scale effectively,
use their resources efficiently, and perform application stack log analysis seamlessly. Hence,
Imperfecto decided to use cloud services.

19
a. Discuss in detail the bucket of AWS services or Microsoft Azure services you would
recommend to Imperfecto for scalability, flexibility, seamless connectivity, security, and to
receive analytics-like reporting for its application logs. (20 points)
b. How strategic SLAs can safeguard the interest of stakeholders? Give examples relevant to
the case. (15 points)
c. Discuss how one can avoid falling victim to attacks like Ransomware, SQL Injection, and
smart phishing. (15 points)

2. Consider that a large company is launching a new IT-based platform for the logistics
industry in 3 different geographies: Australia, South Africa, and the Philippines. Being a sales
head, you need to work out a pricing strategy that would generate sufficient revenues while
appealing to the budget sensitive consumers (South Africa) and quality sensitive users
(developed nations).
a. Elaborate what type of market research you need to conduct and collect data for research
purposes. (10 points)
b. With the support of examples explain whether you should follow a different strategy and
pricing to target different geographies or the same across the globe? Give reasons
(10 points)
c. Discuss in detail under which circumstances an organization should adopt the location-
based pricing, on-demand pricing, and dynamic pricing? (10 points)
d. What are the six critical points in any cloud architecture to ensure data security? Explain
using a relevant example from the logistics industry. (10 points)

e. In the following table, you are provided with marketing expenses and its impact in
Australia, conduct relevant calculations, and suggest whether the ROI will be positive or
negative? Students can only list the terms and the calculated values on their answer
sheets.

(10 points)

MARKETING EXPENSES (EXCLUDING OFFER MARKETING IMPACT Quantity


COSTS)
Campaign Development $25,000 Target Reached 28,000

Mass Media $1,10,000 % Convert to Sale 2.5%

Direct Marketing $40,000 Increment Sales


(Calculate)
Total Marketing Budget Net Present Value per New $870
(Calculate) Sale

20
Marketing Staff Expense Incremental Revenue
(Calculate)
Number of Staff Days 8

Average Daily Rate $500 Average Gross Margin % 35%

Total Staff Expense Profit from incremental


(Calculate) sales (Calculate)
Total Marketing Investment Incremental gross margin
(Calculate) (Calculate)
Gross Margin – Marketing Return (i.e. Net profit)
Investment
Return/ Marketing Investment ROI (Calculate)

21
FORE School of Management, New Delhi
Post Graduate Diploma in Management (FMG- 28, IMG- 13 & FM-2)
End Term Examination
Term- 4 (2020-2021)
Course- Personal Growth Lab

Instructions: a. Answer all the questions.


b. This question paper contains two Pages.
c. Possession and use of cell phone is prohibited
d. Marks are indicated in the right hand parenthesis against
each question.
e. Try to be precise while answering the questions.

Marks- 100 Time - Two hours

1.The importance of personal growth cannot be overstated. It is the secret to separating


yourself from the pack, the bridge that carries you toward the goals you are yet to reach.
Explain. (10 Marks).
2. Which are the two major types of self-awareness and how people are grouped in terms of
their self-awareness based on these types? Which are the factors which hinder self-
awareness? What measures one should take to improve one’s self-awareness? (10+5+5)
3. Based on your MBTI type and 16 Personality factor scores, please discuss your strengths
and weaknesses. What kind of challenges you might encounter in the corporate world and what
specific measures would help you in addressing these challenges? Given below are the 16
personality factors for your reference. You need to attempt the question based on your scores
in these dimensions. (20 marks)

22
4. Which are the forces currently constraining your creativity motives? Identify and discuss the
forces within you as well as outside you that are resisting strengthening of these motives. (10
marks)
5. Write notes on
a. Pros and cons of active and reflective learning styles (5 marks)
b. Competencies that help in improving your Self-Regulations (5 marks)

6. Referring to the movie “The Pursuit of Happyness”-

a. Share your view/ perspective on the following dialogue given below? (10 marks)

Christopher Gardner : [after playing basket ball] Hey. Don't ever let somebody tell
you... You can't do something. Not even me....

Christopher : All right.

Christopher Gardner : You got a dream... You gotta protect it. People can't do
something' themselves, they wanna tell you, you can't do it.

b. “Walk that walk and go forward all the time. Don’t just talk that talk, walk it and go
forward. Also, the walk did not have to be long strides…Baby steps counted too.
Move forward”. How relevant these lines mentioned in the film, for you. Explain. (10
marks)

c. Do you think Chris Gardner was a creative person? Based on Pradeep Khandwala’s
Creative Personality Model, assess the creative personality traits of Chris Gardner (10
Marks).

23
FORE School of Management, New Delhi
Post Graduate Diploma in Management (FMG 28/IMG 13 /FM 02/FPM)
End Term Examination Term- 4 (2019-2020)
Course Name: Sales, Distribution and Retail Management

Time: 2 Hours Max Marks: 100

Instructions: a. This question paper contains 2 page


b. Possession and use of cell phone is prohibited
d. Be brief and to the point in the response
e. State assumptions made, if any
f. Non programmable calculators may be used as required
g. Marks are indicated in the right hand parenthesis against
each question.

(This is NOT an open book examination)

Answer ALL the following questions (All questions carry equal marks)

1. Assume you are the National Sales Manager of Glencil Ltd, which is a new company, marketing
FMCG/OTC products. You have discussed with your CEO to initially focus sales and distribution
efforts in eastern region consisting of West Bengal, Bihar and Orissa.

• You are required to go about to design sales territories to cover the three eastern states.
How to go about the task (Enumerate the steps)? (12.5)
• What major criteria would you keep in mind while assigning salespeople to different
territories? (12.5)

2. Read the following case let and answer the following question
Krishna Kumar the Area manager for the fmcg business of ABC limited is facing a problem
at Rohtak region, his HQ. Krishna is already having 4 distributors, 2 of them are financially
very solvent but believe on the quick rotation of goods by selling to ex-Rohtak distributors
for minimum profit. They sell at a minimum margin point and ensure that the transaction
cycle is rotated at least 4 times per month. As the goods move outside Krishna is under
pressure with a limited bargaining power and often fall prey to their unjustified demands.
They have 2 competitive companies with competitive product lines in their portfolio. The
third distributor is based at the central point of the city and caters to the retail maximally
central to the town. He carries four competitive businesses and with a limited attitude to sell
24
ABC’s product. Rohtak is circled by areas, 50% which though rural, is inhabited by affluent
people but with not so progressive consumption orientation. The fourth distributor is with a
great retail level penetration in Rohtak and suburbs but with a very bad credit history and
hence constrained to a limited amount of business. He is not allowed to receive goods from
the company more than a meager amount insufficient to achieve territory budget. The
retailers in the area are highly credit sensitive and rotate distributors in a crafty way so that
supplies of the goods are not hampered. They take goods both from inside (within Rohtak)
and outside parties (wholesalers/distributors).
How Krishna Kumar should proceed to tackle the problem? (25)

3. Enumerate with examples, how the marketers penetrating the rural market should overcome the
challenges of (a) Designing distribution network, (b) Planning and implementing distribution network
logistics and (c) Customer activation (25)

4 (a) You are planning to start a supermarket in your locality. How you will design the store layout? What
factors you will consider before designing the layout? Apart from retail layout what are factors you think
will be important to increase the foot fall in your retail store? (12.5)

(b) Ram Kumar is a territory sales executive of Cadilla health care in South Delhi area. He has three
company authorized distributors viz. Mahananda Pharma, Jeet Medical Stores and Ruchika Enterprise.
How he will calculate Distributor’s ROI from doing business of Cadilla health care? What tactical
advantages he will have if he can know the Distributor’s ROI from ding his company’s business? (12.5)

25
FORE School of Management, New Delhi
Post Graduate Diploma in Management (FMG 28/IMG 13 /FM 02)
/ End Term* Examination Term- 4* (2020-2021)
Course Name _ Export Import Management; A Starter’s Tool kit

Time: 2* Hours Max Marks: 100


Instructions: a. This question paper contains ___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.

Questions
1. A factory in Baddi, Himachal Pradesh is doing well in the domestic market. The product they
produce is incense sticks, or Aggarbattis. The company wants to enter the export market but are
skeptical about the same and they have decided to engage you as an Export consultant. The product
has the following detailed description, ‘Aggarbatti and other odiferous preparations which operate
by burning’, with a HSN number of 330741.The name of the company is M/s Heaven’s Fragrance.

Prepare a detailed report for the company on developing its exports. The following points (which
are only indicative and not exhaustive) may be considered while preparing the report:

pre starting of exports, any import considerations, getting the export orders, how to deliver the
export orders, developing an export plan, export risks management, export incentives, duty
drawback, researching markets, trade indicators, customs duty of the inputs as raw materials and
zero rated exports.

You may use the following information for report writing in case you find it relevant

Current Market information in the Indian Scenario: Information regarding the Industry from
news reports

The agarbatti and dhoop industry heavily depends on forest products for raw materials. The various
raw materials required for the production of agarbatti are Charcoal powder, sticky powder such as
Jigat, Sal resin, Guggul, Nargis powder, raw bamboo sticks, water, various variety of oils, aromatic
essence, flower essence, sandalwood oil, rose petals, natural and chemical aromatic ingredients,
sawdust, various color powder, etc. A decent cardboard box or plastic pouches are required for
packing. Agarbatti and dhoop in India are generally produced manually in India. A large number
of rural women are employed in this industry. Agarbatti and dhoop products can be considered as
the section with unending demand in India which allows the products to be sold through each mode
of trade. The market derived by the increase in the large penetration of agarbatti and dhoop
products in various regions through the retail mode of trade. This segment generating above 60%
1
of the total sum of the revenue generated by agarbatti and dhoop products. The variants generally
found at stores were of pack size below 150 grams, while in case of fragrance they usually prefer
to keep the trending fragrances according to their regions and consumer demands.
Some of the main players in the market are as follows;
Moksh Agarbatti Co/
ITC Limited – Mangaldeep
Mysore Deep Perfumery House - Zed black
Shree Kalpana Perfumery Works Private Limited – Kalpana

NEWS FLASH as per Economic Times June 11, 2020


The government's decision to increase import duty on bamboo sticks from 10% to 25% will open
up new avenues of self-employment in the country and create 1 lakh new jobs in the 'agarbatti'
(incense sticks) industry in the next 8-10 months, Khadi & Village Industries Commission(KVIC)
said. Bamboo sticks are an important input for the industry.

Article excerpts from The Dollar Business; February, 2017


While the agarbatti industry is perceived to be a small cottage industry, export figures speak a
different story. Despite tough competition from China and Vietnam, India has managed to
dominate the market with its premium quality incense sticks. The Dollar Business takes a look at
what makes the product a money-spinner across foreign markets.
Anishaa Kumar | February 2017 Issue | The Dollar Business

Whether it is for religious purposes, medicinal value or simply for its pleasant fragrance, agarbatti
is a product found across almost every Indian home. Today, the Indian market is flooded with
agarbattis [also known as joss stick in China or incense stick in other countries] of various colours,
fragrances and qualities. But, the market for agarbatti is not by any means limited to India. People
across the globe, whether they be in US or UK, Malaysia or Ethiopia enjoy agarbatti as much as
Indians do – opening up a global market for exporters.

Agarbatti, mostly a handmade product [in India], is exported to almost the entire known world
from India. While many countries are known for selling unscented or raw incense sticks, India is
known for its perfumed versions.

In India, a wide variety of agarbattis are available in different shapes, colours and fragrances at
very competitive prices, from sandalwood to lavender, and rose to mogra. Buyers are practically
spoilt for choice. Adding to the brag-bucket is the fact that India-made agarbattis are considered
to be one of the best in the world – no wonder, we enjoy such a vast customer-base across the
globe. So, how attractive is the market?

The contribution of agarbatti to India’s exports business may not have attracted much attention as
it accounts for a mere 0.04% of India’s total exports. But a deeper look at the numbers tells a story
of a niche export product with tremendous potential. This product has seen a steady demand in
overseas markets, irrespective of economic or political climate. Indian incense is exported to nearly
160 countries

Jayesh Prajapati, from Ahmedabad-based Shiv Impex, who is importing Vietnam-made incense
sticks for the first time says, “As a businessman, what I see is that there is more demand for the
Vietnamese product. I, myself, have a local production of agarbatti of about 100 MT per month,

2
but the demand is for agarbattis from Vietnam. We also don’t like the fact that we are importing
from abroad, but we have to take decisions based on consumer demand.”
The reason behind the rising demand of imported agarbatti, he explains, could be that many Indian
manufacturers are reducing the quality in order to bring the prices down. “Earlier, Indian agarbatti
was cheaper by Rs.10-12 per bundle than the Vietnamese agarbatti so nobody was using agarbatti
from Vietnam. Presently the rate differences is only Rs.2-5. The number of agarbattis in a pack is
also more in the Vietnamese product. The Indian-made incense stick is slightly heavier so we have
fewer sticks in a pack. Even if we give the same numbers of sticks as the Vietnamese product, the
local buyers here will not buy Indian agarbatti as they perceive that an imported product will be of
better quality while being cheaper than an India-made product,” he explains.
Incense or agarbatti is available in different shapes such as sticks, cones and coils. In terms
of fragrances, one can find varieties from sandalwood to apple and even chocolate.

Widening horizons
Is the way forward then to find newer markets and innovation? Indian agarbatti exporters are
already taking these steps. Exporters have always been able to find new markets, which have
helped them stay afloat in the business. Many countries have started importing incense sticks from
India over the last few years – while the numbers from countries like Iraq and Netherlands may be
small, they are on the rise. Kuldeep Tickoo of Asian Deed Exports, a New Delhi-based exporter,
says, “The demand is steady from our main markets such as UK, US and Latin America.
Alongside, some new markets in Africa are opening up, which is good for the industry.”

One reason for the growing popularity of incense stick has been the world’s love affair with Indian
culture. Arjun Ranga, MD of Cycle Pure Agarbathies, says, “Of late, we have been witnessing an
increase in exports business. This is mostly because of growing influence of ayurveda, yoga, khadi,
Indian culture, and more.”

Indian agarbatti manufacturers are also exploring a melange of innovative scents, from strawberry
to green apple and even chocolate. “The international market demands traditional fragrances, but
many do regularly suggest new scents to us.” Packaging is another way to add value to the product
– whether it’s done within the country or in the export destination. Shyam Incense Stick (based
out of Rajkot) is one of the many companies that export agarbattis in bulk to countries such as
Spain, Dubai and Mexico, after which the importers add value through their packaging and sell
under their own brand name.

Can PM Modi’s ‘Make in India’ give a leg-up to agarbatti manufacturers over their Chinese
counterparts? According to Indian agarbatti manufacturers, despite several challenges making in
India is something the sector has been following even before PM Modi unfurled the scheme.
According to the Ministry of Micro, Small and Medium Enterprises, most countries around the
world currently use agarbattis produced in manufacturing units located in Andhra Pradesh and
Karnataka (Mysore and Bangalore).

The products from Bangalore, exporter T. S. Sagar says, are very popular among many foreign
importers due to the quality. States like Maharashtra and Gujarat also have a growing export
market.

Marketing is another huge challenge, particularly for new players. “More trade fairs could help the
industry move forward and gain a stronger foothold in the international market,” says Prajapati.

In addition, European Union’s Rapid Alert System (RAPEX) for non-food products has clogged
the smooth flow of agarbatti from India to the region. For starters, RAPEX enables quick exchange
of information between 31 European countries and the European Commission about dangerous
non-food products posing a risk to health and safety of consumers, and agarbattis from India have
at times been at the wrong-end of the RAPEX rap sheet. Even Rakesh Kumar, Executive Director,
3
EPCH believes that, “The biggest challenge that many exporters of agarbattis have been facing in
the recent times is RAPEX, a system placed by EU to keep a check on the imports of products that
potentially pose a threat.”
ITC Trade Map all figures are in thousand US $
Reporting Country : India Product : Aggarbatti, HSN code : 33074100
To world and then the top countries which are importing from India
India’s total exports: 2019 : 323,250,726
: 2018: 323, 997, 680
: 2017: 295,862,157
India exports to the following countries:

Exporte Exported Exporte Exported Exported


Importers d value value in d value value in value in
in 2015 2016 in 2017 2018 2019
World 98724 101091 123350 104184 106897
United States of
America 11042 10676 11692 12687 13815
Nigeria 5342 5725 6243 6456 6586
United Arab
Emirates 6148 6434 23623 4546 4612
Mauritius 1894 1782 1957 1819 4144
United Kingdom 3478 3446 4989 4238 3998
Malaysia 3485 4189 4401 3834 3807
Brazil 2004 2514 2887 2729 3425
Chile 3575 3096 3027 4000 3102

The total of world exports are as follows: 2019: 18,754,622,224


2018: 19,460, 171, 128
2017: 17, 694, 951, 675

World exports of the product 330741 Aggarbatti

2019 : 382,464
2018: 399,809
2017: 408, 222
Marks : 70
2. Calculate the Revealed Comparative advantage from the above figures in 2018 and 2019.
Marks: 10+10

3. If import of incence sticks is taken by M/s Heaven’s Fragrance for a consignment of the value
of $10, 000/ CIF price. What will be the duty incidence the company suffer in this scenario. There
is no luxury tax or compensation cess in the case of aggarbatti. (1$ =70 Rs for the purpose of
caculations) Marks: 10

4
5
FORE School of Management, New Delhi
Post Graduate Diploma in Management (FMG 28/IMG 13 /FM 02/ FPM)
End Term Examination Term-4* (2020-2021)
Course Name: Advertising Brand 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.

Part A
More than 214 years ago, a New York City man named William Colgate made a living making
and selling soap and candles. Today, his name makes up half of that of a multi-billion-dollar
consumer goods corporation known as Colgate-Palmolive. Colgate-Palmolive Company is an
American multinational consumer products company headquartered in New York City, US. It
specializes in the production, distribution, and provision of household, health care, personal care,
and veterinary products. They have a strong presence in the following categories: soaps (one being
Palmolive itself) toothpaste and other oral care products (under the Colgate brand) and, pet food
(Hills).

The oral products market in India consists of toothpaste, toothbrush, tooth-powder, and
mouthwash. According to IRS data (2018), 66 percent of Indian households use toothpaste, 24
percent use toothpowder, and 18 percent are non-dentifrice (e.g. mouth wash) users. The toothpaste
market in India is estimated at Rs 6,000 crore with a CAGR of 19%. The market over the years
has evolved into newer and different segments like gel, sensitivity, whitening, and so on. India’s
per capita consumption is reportedly almost one-fourth that of the US, and less than half that of
other emerging markets. Toothpaste has a high penetration of around 78 percent in urban India.
Colgate is the overall market leader, with a share of 55.9 percent.

In India Colgate Toothpaste brand has come a long way since the days when a single tube would
cost customers 14 annas. Globally this 200+-year-old brand has added zing and freshness in many
forms over the years, including through its packing and some of its brand elements.
“Brush your teeth the Colgate way, every day” ends the advertisement’s long copy from a 1939
print ad for Colgate. Colgate’s advertising has changed over the years; long copy has given way
to celebrities showing off their pearly whites or getting advice from the experts.
Over the years Colgate has held a very strong position in the oral care category in India with close
to 56% market share (HUL (Pepsodent etc.) – 17%; Dabur – 11%; Patanjali – 11%; GSK
(Sensodyne) – 3%). Experts attribute the success to the company’s efforts of continuously being
relevant and constantly evolving their flagship brands as well the range offered. For example,
while launching Colgate for kids they had upped the innovation on the packaging to engage its
younger customers with contests and collectibles. For many of its flagship brands, its roster of
celebrities now includes YouTube stars like Shraddha Sharma, alongside more standard favorites
Virat Kohli and Ranveer Singh. Further, new media channels like digital are now increasingly
becoming an integral part of the communications mix. For example, to connect with youth, a core
segment of their TG for Colgate Plax, they leveraged the augmented reality medium for heightened
consumer engagement and also partnered with the Sunburn Festival and Mood Indigo, popular
youth-centric platforms, to create brand awareness and relevance.

The company engages in frequent line-optimizations to add or remove variants, product forms,
and extensions that are not just exciting and relevant for their core audiences but also attract
younger and diverse audiences. Today, in addition to a wide range of toothbrushes, mouthwashes,
whitening and expert care products, Colgate has extended the brand to many other newer variants
and forms of oral care, including everything from the regular plain white paste and flavoured
toothpaste for kids to Active Salt, Charcoal and Sensitive Pro-relief mouth wash. The company
clearly has a good pulse of the consumers in India as many of its brands “Are made in India and
for India.”. For instance, Colgate Vedshakti and Colgate Pain Out, are indigenously developed
ayurvedic remedy for quick pain relief.

Sometime in early 2019, Colgate embarked on the journey of evaluating its flagship product
Colgate Strong Teeth in one of the biggest moves for the oral-care major's 'bread-and-butter' brand
since the 1950s. The change involved a new packaging and new formulation with 'Amino Shakti'
to make the product more effective. Thus, moving the largest selling toothpaste in the country to
the newly coined 'Andar se Strong' platform. It was a complex task for the ubiquitous brand. Ram
Raghavan, Managing Director, Colgate-Palmolive (India) shares “It was an India-first shift, and
the company was very clear in the strategy that India would lead the way.” He adds, “Until that
point, we always spoke of problems (cavities), but with the shift to strong teeth, the conversation
has moved to a more proactive solution.” The ‘Andar se Strong’ campaign had real life stories of
Deepika Padukone (with her mom). Also, its recently launch Colgate Vedshakti, which caters to
the growing consumer demand for products based on natural ingredients, has become an important
part of the brand’s portfolio. As per company data, Colgate Vedshakti today is a Rs 100 crore
brand with 10 crore consumers using it and is the 2nd highest distributed brand in Maharashtra,
Tamil Nadu, Andhra Pradesh, and Karnataka in the naturals/ ayurvedic category of toothpaste.

Despite the strength of the brand and Colgate’s focus on constantly evaluating its oral care product
range, Close-Up, a strong challenger, changed the way toothpaste looked and felt in the mouth.
High on freshness ingredients, the transparent look and the youth-centric approach gave Colgate
some sleepless nights until they launched Colgate Gel and soon Colgate MaxFresh with its ultra-
fresh cooling crystals and transparent packaging. Close-Up gained a significant share of the
market, forcing Colgate to launch a similar product and alter its strategies for some time.

Colgate has over the years tried to fight the sub-categories in oral care by creating a portfolio of
brands catering to niche consumer needs. It is clear that the other players, Unilever(Pepsodent),
GSK(Sensodyne), and P&G (Oral-B), are not very keen to take Colgate head-on in its main product
line. Hence, they have started carving smaller segments for themselves and, with a focused
strategy, are managing to remain leaders in their respective sub-segments.
Through a series of extensions, Colgate has increased its share of the market from 52.4 per cent in
2017 to 55.9 percent in 2018. While the extension strategy seems to have worked in retaining and
marginally growing its share, analysts wonder whether, in the long run, this strategy will be
effective. In other countries, Colgate has other brands in the oral care category, such as Elmex and
Dentagard, which are very well positioned in some of the peculiar and niche oral care needs. But
in India, it has only Colgate.

Please answer the following questions (Q1, 2 and 3) based on the Caselet

Question 1: With competition set to intensify in the main oral care category, and smaller players
carving out their niches and sub-segments, is Colgate risking its main flagship brand and thereby
likely to lose the consumer mindshare battle in the coming years? Give a detailed account of your
judgment (Marks 25)

Question 2: Has the company done enough to let Colgate remain relevant for its target audiences?
Substantiate your answer with alternatives, if needed (Marks 25)

Question 3: Develop a detailed sales promotion campaign for Colgate Vedshakti. What are all the
factors that the company would have to consider to develop an effective campaign? (Marks 25)

Part B

Question 4: Pick any one brand of your choice (mass brand and not from the oral care category)
and explain how the brand has been managed using any two models that facilitate brand
management (Marks 25)
FORE School of Management, New Delhi
Post Graduate Diploma in Management (FMG 28 /IMG 13/FM02)
End Term Examination / Term - 4 (2020-2021)

Course Name: International Management

Time: 2 Hours Max Marks: 100


Instructions: a. This question paper contains 1 Page.
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.

1. How do the DOCSA (Diagnosing Organizational Culture for Strategic Application) techniques help MNCs in
improving the organizational culture? Explain your answer with a suitable illustration. (25 Marks)

2. The international arena is characterized by a number of communication barriers. Discuss the major
communication barriers that might occur in international business communication. (25 Marks)

3. Critically analyze the impact of the “Abraham Accord” peace deal between Israel, UAE and Bahrain on
international business. What change in political risk perception can an international manager expect after this
deal? (25 Marks)

4. Facebook the social media networking major with more 2.41 billion monthly active users in 2019 is still holding a
strong market presence. But off late, Facebook has been embroiled in many controversies which have dented its
brand value and customer trust. One major controversy that hit Facebook was the allegation that it ignored the
global political manipulation that happened through its platform. Sophie Zhang a former Facebook data scientist
and whistleblower wrote a memo in which she mentioned “In the three years I’ve spent at Facebook, I’ve found
multiple blatant attempts by foreign national governments to abuse our platform on vast scales to mislead their
own citizenry, and caused international news on multiple occasions. I have personally made decisions that affected
national presidents without oversight, and taken action to enforce against so many prominent politicians globally
that I’ve lost count”. Facebook is also battling with the menace of fake accounts which is used for creating fake
news and misinformation. In 2019 Facebook announced that it removed more than 2.19 billions fake accounts
between January and March, it’s biggest-ever takedown of fakes in one quarter. The trust and credibility of
Facebook among genuine customers have been diminishing over time. Unless the company acts fast on all these
challenges they are going to face a tough time in keeping their leadership position in the social media space.

Taking into consideration the above and other challenges faced by Facebook, you are required to develop a
detailed strategic plan that may improve the credibility and trust of Facebook among the different stakeholders.
The strategic plan should include specific points that would address the concerns of political leadership of a
country and ordinary users of the platform. The strategic plan should also include an implementation schedule.
(25 Marks)
6
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