By DeeCee - Divine Classes

Sample Paper - 1

BUSINESS STUDIES

MM – 80 TIME: 3 HOURS

Q.1 Leisure Ltd. is a multi-product company in Mumbai. It deals in products like stationery, books,
music instruments, laptops, and mobile phones etc. The company has a functional structure with
separate heads for production, marketing, and finance. To facilitate specialisation Vijay Kumar, the
General Manager of the company decided to group books, music instruments, stationary etc. under
'Eduproducts' and laptops and mobile phones under 'Electroproducts. Identify the step in the
organising function of management being described above. (1)

(a) Identification and division of work

(b) Assignment of duties

(c) Departmentalisation

(d) Establishing reporting relationships

Q.2 It may be difficult to know the extent of the relative impact of the social, economic, political,
technological or legal factors on change in demand of a product in the market. Identify the related
feature of business environment. (1)

(a) Inter-relatedness

(b) Dynamic

(c) Complexity

(d) Relativity

Q.3 It is defined as the framework within which managerial and operating tasks are performed. (1)

(a) Span of management

(b) Organisational structure

(c) Informal organisation

(d) None of the above

Q.4 Identify the dimensions of the business environment illustrated by the picture given above. (1)

(a) Technological

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(b) Social

(c) Political

(d) Legal

Q.5 Every organisation whether it is government-owned, a privately owned business or a company in

the private sector requires management." Name the feature of management highlighted in the
above statement. (1)

(a) Management is an intangible force

(b) Management is a group activity

(c) Management is all pervasive

(d) Management is multidimensional

Q.6 Assertion (A): Different elements of business environment are closely interrelated.

Reason (R): A change in any dimension of business environment necessitates a corresponding

change in other dimensions as well. (1)

(a) Both the statements (A) and (R) are correct and (R) is the right explanation of (A)

(b) Both the statements (A) and (R) are correct but (R) is not the right explanation of (A)

(c) Statement (A) is correct but statement (R) is incorrect

(d) Both statements (A) and (R) are incorrect

Q.7 It acts as the binding force between departments and ensures that all action are aimed at
achieving the goals of the organization.' The statement highlights the following characteristic of co-
ordination: (1)

(a) Co-ordination is an all pervasive functions.

(b) Co-ordination is the responsibility of all managers.

(c) Co-ordination is a continuous process.

(d) Co-ordination ensures unity of action.

Q.8 Ketan works as a production manager in a company dealing in stationery products. Every year at
the time of drawing annual production plans he along with his team have to undertake intellectual
thinking involving foresight, visualization and judgement. This is because plans cannot be made on
guess work. Identify the related feature of planning being described above. (1)

(a) Planning is a primary function

(b) Planning is pervasive

(c) Planning invoice decision making

(d) Planning is a mental exercise

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Q.9 In order to be ahead of its global competitor 'Awasthi Telecom' has decided upon its future
course of action through re-farming spectrum and aggressive fabrication of towers. Identify the
related point with reference to importance of understanding business environment. (1)

(a) It helps in assisting in planning and policy formulation

(b) It helps in coping with rapid changes

(c) It helps in improving performance

(d) It enables the firm to identify opportunities and getting the first mover advantage

Q.10 During good times, Diva Ltd. used to pay 40% of the salary as bonus to its employees but due to
recession in business its percentage has been reduced to 15%. This is because its owner believes that
the application of the principles of management has to be changed as per the requirements of the
prevailing situation at a particular point of time. Which feature of principle of management is being
described in the given statement? (1)

(a) Contingent

(b) Mainly behaviour

(c) Cause and effect relationship

(d) General guidelines

Q.11 Besttech Limited is one of the India's largest information technology services company. It has
organised itself in a manner that allows customer orientation to dominate over other goals and
diversified on the basis of product lines. What type of organisational structure allows for the
addition of the new product lines without interrupting the existing operations in order to facilitates
expansion and growth of a business enterprise? (1)

(a) Functional structure

(b) Divisional structure

(c) Matrix structure

(d) None of the above

Q.12 "This approach is applicable in the cases of unsought goods like life insurance, vacuum cleaner,
fire fighting equipments including fire extinguishers. These companies are seen having a strong
network of sales force. This concept is applicable for the firms having over capacity in which their
goal is to sell what they produce than what the customer really wants." Identify the marketing
concept being referred to in the above paragraph. (1)

(a) Product concept

(b) Production concept

(c) Selling concept

(d) Marketing concept

Q.13 Match the following by choosing the correct option. (1)

Column A Column B

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(i) Trade Test (a) Defines the interests of the candidate

(ii) Personality Test (b) Evaluate the potential of a candidate in
acquiring new skills and develop
(iii) Aptitude Test (c) Provide an insight in to a person’s
emotions, her reactions, maturity and
value system etc.
(iv) Interest Test (d) Measure the knowledge, skills and
proficiency that a candidate possess
with regard to a particular job position.
(a) (i)-(b); (ii)-(c); (iii)-(a); (iv)-(d)
(b) (i)-(b); (ii)-(d); (iii)-(a); (iv)-(c)
(c) (i)-(d); (ii)-(c); (iii)-(b); (iv)-(a)
(d) (i)-(c); (ii)-(d); (iii)-(a); (iv)-(b)

Q.14 Which of the following statement does not reflect a condition to be satisfied for an exchange to
take place? (1)

(a) Involvement of at least two parties the buyer and the seller

(b) Each party should be capable of offering something of value to the other

(c) Exchange can take place even if the buyers and sellers are not able to communicate with each
other

(d) Each party should have freedom to accept or reject other party's offer

Q.15 Good Living Ltd. manufactures Air Fresheners in 'Block' formats which can be used in
bathrooms, cupboards, etc. These 'Blocks' come in a range of four exciting fragrances namely rose,
lavender, citrus and jasmine. Each of these 'Blocks' are first individually packed in a foil and then in a
cardboard box. 100 such boxes are then placed in a big corrugated box and delivered to various
retailers for sale. Identify the level of packaging which relates to putting the 'Blocks' in a corrugated
box. (1)

(a) Primary package

(b) Secondary package

(c) Transportation packaging

(d) None of the above

Q.16 One of the common irregularities noted by the Securities and Exchange Board of India during
the inspection of a stock exchange was that it was dealing with unregistered sub-brokers.

Identify the related function of Securities and Exchange Board of India. (1)

(a) Regulatory function

(b) Protective function

(c) Developmental function

(d) None of the above

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Q.17 In order to enhance the easy marketability of the products, Dev, a producer gets the home
furnishing products manufactured in confirmation to the predetermined specifications. Identify the
type of marketing function being described in the given case. (1)

(a) Physical distribution

(b) Standardisation and grading

(c) Transportation

(d) Warehousing

Q.18 Mrs. Chetna Dixit of Bangalore received a crumbled cake, bad in taste, accompanied with low-
priced greeting card after a delay of two days as against her order based on the rosy photos and
promises on their website. She approached the seller but he did not respond to her complaint. So,
she filed a case in the District Forum and on receiving the legal notice the seller realized that he will
be in lot of problems if the matter goes any further. Identify the right of the consumer which was
exercised by Mrs. Chetna Dixit by filling a case. (1)

(a) Right to be assured

(b) Right to safety

(c) Right to be heard

(d) Right to consumer education

Q.19 One of the steps in the trading procedure necessitates that, the investor has to deliver the
shares sold or pay cash for the shares bought. This should be done immediately after receiving the
contract note or before the day when the broker shall make payment or delivery of shares to the
exchange. This is known as …………………………. (1)

(a) Pay-in day

(b) Pay-out day

(c) Order confirmation slip

(d) Unique code number

Q.20 Assertion (A): Consumer protection has a wide scope. (1)

Reason (R): Consumer protection relates to educating consumers about their rights and
responsibilities,

(a) Both the statements (A) and (R) are correct and (R) is the right explanation of (A)
(b) Both the statements (A) and (R) are correct but (R) is not the right explanation of (A)
(c) Statements (A) is correct but statement (R) is incorrect
(d) Both statements (A) and (R) are incorrect

Q.21 Mr. Nitin Singhania's father has a good business of iron and steel. He wants to go to the USA for
his MBA but his father thinks that he should join the business. On the basis of emerging trends, do
you think that Mr. Singhania should send his son to the USA? Give any three reasons in support of
your answer. (3)

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Q.22 At Wipro, Project Readiness Program [PRP] a 68 day structured training program is offered to
all campus recruits coming from varied background (Engineers + Non-engineers) to be trained on
essential behavioural and technical skills that prepare them to work in live customer projects. E-
learning has been introduced in this training for engineering campus new hires. About 25% of the
training duration has been adopted in E-Learning mode. (3)

(a) Identify the method of training being described in the above paragraph. Will it be categorised as
an off the job training method why or why not?

(b) Name any two other methods of training which fall in the same category training methods.

Q.23 How does controlling help in "Judging accuracy of standards" and "Ensuring order and
discipline"? (3)

Q.24 Mr. Vikas Mehra was the Chairman of IBM Bank. The bank was earning good profits.
Shareholders were happy as the bank was paying regular dividends. The market price of their shares
was also steadily rising. The bank was about to announce the taking over of 'UK Bank'. Mr. Vikas
Mehra knew that the share price of IBM Bank would rise on this announcement. Being a part of the
bank, he was not allowed to buy shares of the bank. He called one of his rich friends Mukand and
asked him to invest Rs 4 crores in the shares of his bank promising him the capital gains,

As expected, after the announcement, the share prices went up by 50% and the market price of
Mukand's shares was now Rs 6 crores. Mukand earned a profit of Rs 2 crores. He gave Rs 1 crore to
Vikas Mehra and kept Rs 1 crore with him. On regular inspection and by conducting enquiries of the
brokers involved, the Securities and Exchange Board of India (SEBI) was able to detect this
irregularity. SEBI imposed a heavy penalty on Vikas Mehra.

Quoting lines from the above paragraph, identify and state any two functions performed by the SEBI
in the above case. (3)

Q.25 Nishant, the director of a garment company, is planning to manufacture bags for the utilisation
of waste material from one of his garments unit. He has decided that his manufacturing unit will set-
up in a rural area of Odisha where people have very few job opportunities and labour is available at
very low rates. He also thought of giving equal opportunities to men and women.

For this, he wanted four different heads for sales, accounts, purchase and production. He gave an
advertisement and short listed ten candidates per post after conducting different selection tests.

Identify and state the next three steps for choosing the best candidate out of the short-listed
candidates. (4)

Q.26 Rakesh is working under his superior Neeraj. He always communicate useful ideas and
suggestions to his superior regarding the reduction of cost, improvements in the product, etc. Neeraj
implements his suggestions and has always found favourable results but he never appreciates
Rakesh for his suggestions. Now, Rakesh decides not to communicate any suggestion or idea to
Neeraj. Identify the factor which acts as a communication barrier. Explain three other factors of the
same group of communication barriers. (4)

Q.27 Neeraj has been working as a sewing machine operator in an export house for the past ten
years. His basic work is to seam the parts of a garment together, and attach buttons, hooks, zippers,
and accessories to produce clothing. Considering the fact that Neeraj is an experienced operator, he
is well versed with the fundamentals of industrial production and possesses good communication
skills. The plant superintendent in the factory recommends Neeraj's name to the production

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manager for the post of supervisor which will fall vacant after a month on the retirement of the
present supervisor. Consequently, Neeraj is assigned the post of supervisor and his salary is
increased accordingly. Moreover, as per the policy of the export house, he is offered free medical aid
and education to his two children.

In context of the above case: (4)

(a) Identify the type of source of recruitment used by the export house to fill up the post of
supervisor. Give any two advantages of using this source.

(b) Identify the types of financial incentives offered to Neeraj by quoting lines from the paragraph.

Q.28 Explain briefly any four factors which affect the choice of capital structure of a company. (4)

Q.29 Vivo Ltd. is a company manufacturing textiles. It has a share capital of Rs 60 lakhs. The earning
per share in the previous year was Rs 0.50. For diversification, the company requires an additional
capital of Rs 40 lakhs. The company raised funds by issuing 10% debentures for the same. During the
current year, the company earned a profit of Rs 8 lakhs on the capital employed. It paid tax @ 40%.

State whether the shareholders gained a lost, in respect of earning per share on diversification.
Show your calculations clearly. (4)

Q.30 Indian Youth Organisation (IYO) organised a visit of its members to an old age home to
inculcate the habit of social work among them. The visit revealed that the living conditions of the
inmates of the old age home were not hygienic. So, the IYO members decided to clean the premises.
During their cleanliness drive, they realised that the old age home also required pest control. But
some of the inmates of old age home were reluctant for it because they believed that the pest
control may create health problems for them. IYO, therefore decided to provide ethical, safe and
odourless pest control. They showed to the inmates of old age home a pamphlet of the proposed
pest control product which promised easy, inexpensive and long lasting pest control. The inmates
happily agreed and the pest control was carried out. It worked for a fortnight but to their dismay the
effect started wearing off. IYO contacted the pest control company which kept on postponing their
visit. After waiting for a month, IYO filed a cased in the consumer court. (4)

The consumer court was satisfied about genuineness of the complaint and issued necessary
directions to the pest control company.

State the four directions that might have been issued by the court.

Q.31 Explain briefly the following techniques of scientific management (6)

(a) Time study

(b) Differential piece rate wage system

Or

Describe briefly the following principles of scientific management.

(a) Science, not rule of thumb

(b) Harmony, not discord

Q.32 Two years ago, Madhu completed her degree in food technology. She worked for sometime in
a company that manufactured chutneys, pickles and murabbas She was not happy in the company

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and decided to have her own organic food processing unit for the same. She set the objectives and
the targets and formulated an action plan to achieve the same.

One of her objectives was to earn 10% profit on the amount invested in the first year. It was decided
that raw materials like fruits, vegetables, spices, etc. will be purchased on three months credit from
farmers cultivating only organic crops. She also decided to follow the steps required for marketing of
the products through her own outlets. She appointed Mohan as the Production Manager who
decided the exact manner in which the production activities were to be carried out. Mohan also
prepared a statement showing the number of workers that will be required in the factory
throughout the year. Madhu informed Mohan about her area wise sales target for different products
for the forthcoming quarter. While working on the production table, a penalty of 100 per day for not
wearing caps, gloves and apron was announced. (6)

Quoting lines from the above paragraph, identify and explain the different types of plans discussed.

Q.33 Aman Chadha started 'Bulls Eye' a company for providing cyber security solutions to
businesses. Its objective is to prevent, detect and respond to cyber attacks and protect critical data.
He was a hardworking software engineer and an expert in cyber security. His reputation grew by
leaps and bounds as he was not only a person of integrity but also did his work with utmost honesty
and sincerity. The business started growing day by day.

He was delighted when he was offered a big project by the Ministry of Defence. While working on
the project, he found that the volume of work made it impractical for him to handle all the work by
himself. He decided to expand the team. The company maintained a close liaison with a local
engineering college. During a campus placement, Ishan and Vrinda were appointed to work for the
new project.

He found the new employees capable, enthusiastic and trustworthy. Aman Chadha was thus, able to
focus on objectives and with the help of Ishan and Vrinda, the project was completed on time. Not
only this Aman Chadha was also able to extend his area of operations. On the other hand, Ishan and
Vrinda also got opportunities to develop and exercise initiative. (6)

(i) Identify and briefly explain the concept used by Aman Chadha in the above case which helped him
in focusing on objectives.

(ii) Also, state any four points of importance of the concept identified in (i) above.

Q.34 "Haryaram' is a famous chain selling a large variety of products in the Indian market. Their
products include chips, biscuits, sweets and squashes. It charges a comparatively higher price than
its competitors as it sells quality products. Besides, it offers regular discounts to its customers and
easy credit terms to its retailers. It has five of its own retail shops. It also sells its products through
various grocery stores so that the products are made available to customers at the right place, in the
right quantity and at the right time. It regularly uses different communication tools to increase its
sales.

The above paragraph describes the combination of variables used by Haryaram to prepare its market
offering. Identify and explain the variables. (6)

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ANSWER KEY

Ans.1 (c) Departmentalisation

Ans.2 (c) Complexity

Ans.3 (b) Organisational structure

Ans.4 (a) Technological

Ans.5 (c) Management is all pervasive

Ans.6 (a) Both the statements (A) and (R) are correct and (R) is the right explanation of (A)

Ans.7 (d) Co-ordination ensures unity of action.

Ans.8 (d) Planning is a mental exercise

Ans.9 (a) It helps in assisting in planning and policy formulation

Ans.10 (a) Contingent

Ans.11 (b) Divisional structure

Ans.12 (c) Selling concept

Ans.13 (c) (i)-(d); (ii)-(c); (iii)-(b); (iv)-(a)

Ans.14 (c) Exchange can take place even if the buyers and sellers are not able to communicate with
each other

Ans.15 (c) Transportation packaging

Ans.16 (a) Regulatory function

Ans.17 (b) Standardisation and grading

Ans.18 (c) Right to be heard

Ans.19 (a) Pay-in day

Ans.20 (b) Both the statements (A) and (R) are correct but (R) is not the right explanation of (A).

Ans.21 Yes, according to me, Mr. Singhania should send his son to USA for his MBA because
management is being recognised as a profession to a great extent because of the following reasons:
(Explain)

• Well defined body of knowledge

• Ethical code of conduct
• Service motive

Ans.22 (a) Induction training/Orientation training is being offered to the employees at Wipro. It is a
type of on-the-job training method.

(b) Internship training and Apprenticeship training.

Ans.23 Controlling helps in "Judging accuracy of standards" and "Ensuring order and discipline" as
explained below:

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(a) Judging accuracy of standards: An efficient control system enables management to determine
weather the standards set are accurate and objective. This is because it helps to helps to review and
revise the standards in light the changes taking place in the organisation and in the environment.

(b) Ensuring order and discipline: Controlling helps to minimise dishonest behaviour on the part of
the employees by keeping a close check on their activities. Thus, it creates an atmosphere of order
and discipline in the organisation.

Ans.24 The two functions performed by SEBI in the given case are stated below;

(a) Regulatory function is being performed by SEBI: "on regular inspection and conducting inquires
of the brokers involved."

(b) Protective function is performed by SEBI: "The SEBI imposed heavy penalty on Mr. Vikas Mehra."

Ans.25 The next three steps to be followed by Nishant in the selection process after giving an
advertising and short listing ten candidates per post after conducting different selection tests are as
follows:

(i) Employment Interview: It is a face-to-face interaction between the interviewers and prospective
candidate. It involves a formal, in-depth conversation that is conducted to evaluate the applicant's
suitability for the job.

(ii) Reference and Background Checks. At the time of filling up of the job application form,the
prospective candidates are required to provide names, addresses, and telephone numbers of
references for the purpose of verifying information and gaining additional information about
him/her.

(iii) Selection Decision: The final decision about the selection is made from among the candidates
who pass the tests and interview.

Ans.26 Due to the lack of proper incentives, Rakesh has decided not to communicate any suggestion
or idea to Neeraj. If there is no motivation or incentive for communication, subordinates may not
take initiative to communicate.

It is a type of personal barrier. Sometimes the personal factors of both the sender and the receiver
may exert influence on effective communication. A few of these are discussed below:

(a) Fear of challenge to authority. A superior may withhold or suppress the communication which he
perceives is likely to adversely affect his authority.

(b) Lack of confidence of superior in his subordinates: A superior may not seek the advice or opinions
of his/her subordinates if he/she does not have confidence on their competency.

(c) Unwillingness to communicate: Sometimes, subordinates may deliberately withhold any

communication with their superiors if they perceive that it may adversely affect their personal
interests.

Ans.27 (a) The internal source of recruitment has been used by the export house to fill up the post of
supervisor through promotion. The two advantages of using internal source of recruitment are
stated below:

(i) Employees are motivated to improve their performance: When employees are promoted
internally from within an organisation, it has a positive impact on their commitment and loyalty and

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they tend remain satisfied with their jobs. Also, it may lead to a chain of promotion at lower levels in
the organisation. As a result, it motivates the employees to improve their performance through
learning and practice.

(ii) Internal recruitment simplifies the process of selection and placement: The candidates can be
appraised more perfectly and economically as that are already working in the organisation. As the
candidates are already known to the organisation, it is considered to be a more reliable method of
recruitment.

(b) The types of financial incentives offered to Neeraj are as follows:

(i) Pay and allowances: "his salary is increased accordingly."

(ii) Perquisites: "as per the policy of the export house, he is offered free medical aid and education to
his two children."

Ans.28 Factors: (Explain) (Refer from Notes/Book)

• Risk
• Flexibility
• Interest coverage ratio
• Cash flow position

Ans.29 Let us presume that the share capital of Rs 60 lakh is made up of Rs 6 lakh equity shares
assuming that the face value of each share is Rs 10.

Sources Situation 1 Situation 2

Equity shares 60,00,000 60,00,000
10% Debentures NIL 40,00,000
Total Capital 60,00,000 1,00,00,000
EBIT - 8,00,000
Less: Interest - (4,00,000)
EBT - 4,00,000
Less: Tax @ 40% - (1,60,000)
EAT 3,00,000 2,40,000
No. of shares of Rs 10 each 6,00,000 6,00,000
EPS 0.50 2,40,000/6,00,000 = 0.40
0.50 X 6,00,000 = 3,00,000

Consequently EBT/EBIT in situation 1 = Rs 5,00,000

Thus, on diversification, the earning per share fell down from Rs 0.50 to Rs 0.40.

Ans.30 The four directions that might have been issued by the court are as follows:

Reliefs available to a consumer

(i) To remove the deficiency in service.

(ii) To refund the charges paid for the service.

(iii) To pay a reasonable amount of compensation for any loss or injury suffered by the consumer
due to the negligence of the opposite party.

(iv) To discontinue the unfair/restrictive trade practice and not to repeat it in the future.

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Ans.31 Refer from Notes

Ans.32 The different types of plans discussed above are listed below:

(a) Objectives: Objectives are the end results of the activities that an organisation seeks to achieve
through its existence. All other activities within the organisation are directed towards achieving
these objectives.

"One of her objectives was to earn 10% profit on the amount invested in the first year."

(b) Policy: A policy is a set of general guidelines that helps in managerial decision making and action.

"It was decided that the raw materials like fruits, vegetables, spices, etc. will be purchased on three
months credit from farmers cultivating only organic crops."

(c) Procedure. A procedure contains a series of specific steps to be performed in a chronological

order to carry out the routine activities.

"She also decided to follow the steps required for marketing of the products through her own
outlets."

"The exact manner in which the production activities are to be carried out."

(d) Rule: A rule is a specific statement relating to the general norms in terms of Do's and Don’ts that
guide the behaviour of people. It commands strict obedience and a penalty is likely to be imposed on
its violation.

"While working on the production table, a penalty of 100 per day for not wearing caps, gloves and
aprons was announced."

Ans.33 Delegation of authority is the concept used by Aman Chadha in the above case which helped
him in focusing on objectives.

Delegation of authority is the process of granting of authority to the subordinates to operate within
prescribed limits.

(ii) The four points of importance of delegation of authority are described below:

(a) Effective management: It helps the managers to function more efficiently as they get more time
to concentrate on important matters. Freedom from doing routine work provides them with
opportunities to excel in new areas.

(b) Employee development: By empowering the employees, they are given more opportunities to
utilise their talent and this may help them to become better leaders and decision makers in future.

(c) Motivation of employees: Delegation also has psychological benefits as helps in building the self-
esteem of an employee and improves his confidence and work performance. When a superior
entrusts a subordinate with a task, it is not merely the sharing of work but involves trust on the
superior's part and commitment on the part of the subordinate. Thus, delegation may give rise to
latent abilities in the subordinates.

(iv) Facilitation of growth: With the increase in the competence of the employees, an organisation
tends to gain in many ways. The growth and expansion of the firm becomes easy as the capable
workforce is ready to take greater responsibilities.

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Ans.34 The combination of variables used by Haryaram to prepare its market offerings are described
below:

(a) Product: "Their products include chips, biscuits, sweets and squashes."

A product is anything of value i.e., a product or service offered to a market to satisfy its needs or
wants. A product includes physical product, after sale service, handling grievances etc. Every
marketer needs to constantly review and revise its products in order to enhance customer's
satisfaction and have a competitive edge.

(b) Price: "It charges a comparatively higher price than its competitors."

Price is the monetary value paid in consideration for purchase of a product or service by a buyer to
its seller. It is a very crucial decision for the marketers as consumers are very sensitive to the pricing.
The factors affecting price determination are cost of product, the utility and demand, extent of
competition in the market, government and legal regulations, pricing objectives and marketing
methods used.

(c) Place: "It has five of its own retail shops. "Or "It also sells its products through various grocery
shops," It is considered an important element of marketing mix because it includes all those
activities that help in making the goods and services available to the prospective buyers in the right
quantity, at the right time and in right condition. The two main decisions involved in physical
distribution are physical movement of goods from producers to consumers and choice of channels of
distribution.

(d) Promotion: "It regularly uses different communication tools to increase its sales." Promotion
refers to the set of activities undertaken by a marketer to inform the prospective buyers about the
product and persuading them to make a purchase. The various components of promotion mix are
advertising, sales promotion, personal selling and public relation."

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