YOUR ULTIMATE PREP GUIDE

TABLE OF CONTENTS
MARKETING 01
CONSULTING 20
OPERATIONS 39
ANALYTICS 49
FINANCE 62
ECONOMICS 84
INTERVIEW TOPICS 95
GENERAL AWARENESS 105
INTERVIEW TIPS 139
 MARKETING

BY MARCLAN
THE MARKETING CLUB OF IIM UDAIPUR

01
MARKETING
What is Marketing?

Marketing is a societal process by which individuals and groups obtain what

they need and want through creating, offering, and freely exchanging products
and services of value to others.

What is Sales?

Sales is an agreement between a buyer and a seller on the price of a security.

e.g., An insurance agent trying to sell insurance or a salesperson selling
encyclopedias door to door.

What are the three types of sales?

Primary Sales: Manufacturers sow the seeds by selling in bulk to
distributors (think warehouses). They focus on building solid partnerships
and volume discounts.
Secondary Sales: Distributors nurture the product, spreading it to shops
(think retailers). They manage smaller quantities and profit margins.
Tertiary Sales: Retailers bring the product to life, selling it directly to
consumers (think us!). They focus on attractive displays, engaging
customers, and driving final purchases.

What is the difference between Marketing and Sales?

The selling concept takes an inside-out perspective. It starts with the factory,
focuses on the company’s existing products, and calls for heavy selling and
promotion to produce profitable sales.

The marketing concept takes an outside-in perspective. It starts with a well-

defined market, focuses on customer needs, coordinates all the activities that
will affect customers, and produces profits through creating customer
satisfaction.

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MARKETING
What is a Product?
A product is anything that can be offered to a market for attention, acquisition,
use, or consumption.

What is a Service?
An act of performance that one party can offer to another that is essentially
tangible and does not result in the ownership of anything. Its product may or
may not be tied to a physical product.

How are products evolving-as-a-service models in the digital age? Give an

example.

Products are shifting towards "as-a-service" models in the digital age,

emphasizing subscription-based access over ownership. For instance, software
as a service (SaaS) like Adobe Creative Cloud offers users a subscription model
for accessing and using software tools, providing flexibility, regular updates, and
cost-effectiveness compared to traditional purchasing models.

What are Needs, Wants, and Demands?

Needs, Wants, and Demands: Needs describe basic human requirements.

For example, need for food, air, water, education, entertainment, etc.
Needs become wants when directed to specific objects that might satisfy the
need. Need for food ---> Want for a Hamburger (KFC Zinger).
Demands are wanted for specific products backed by a willingness and ability to
pay. Marketers do not create needs. Needs pre-exist marketers.
Marketers, along with other social influencers, influence the wants.

What is Segmentation, Targeting, and Positioning?

Segmentation is a marketing technique that helps a marketer identify and
profile a distinct group of buyers with everyday needs. Once the segmentation is
complete, the marketer has to decide which segment he/she shall target to sell
his/her product or service. After segmentation and targeting, the marketer has
to establish and communicate the benefits of offering to develop an image in
the customer's mind.

03
MARKETING
What is Segmentation, Targeting, and Positioning?

Segmentation is a marketing technique that helps a marketer identify and

profile a distinct group of buyers with everyday needs. Once the segmentation is
complete, the marketer has to decide which segment he/she shall target to sell
his/her product or service. After segmentation and targeting, the marketer has
to establish and communicate the benefits of offering to develop an image in
the customer's mind.

What is an example of STP?

Product: "Serenity Sip," a line of herbal teas focusing on relaxation and

stress relief.
Segmented by: Lifestyle (stressed professionals, health-conscious
millennials, active seniors) and demographics (gender, income, location).
Targeted through: Corporate wellness programs, influencer partnerships,
yoga studios, and events.
Positioned as: Daily dose of calm, natural well-being boost, mind and body
revitaliser.

What is the difference between customer and consumer?

Customer - Buyer, not necessarily a user

Consumer - The end user might also be the buyer.
A product is designed to give maximum satisfaction to the consumer, and a
product is branded and advertised in a manner that makes the maximum
appeal to the customer. e.g. A father purchases a 5-star for his son; in this case,
the father is the customer, and the son is the consumer.

What are the 4 P’s of marketing?

Product: These are the goods and services for sale. The customer considers
the product's design, quality, features, and functionality.
Price: The amount the customer needs to pay to purchase the product.
Discounts, payment returns, and credit periods are considered in the
process.

04
MARKETING
Place – These are the distribution, channel, and logistics methods in which
the product reaches the customer. It includes the location of the process.
Promotion – It is the act of creating awareness of the product in the minds
of the consumer. It involves persuading consumers to customers through
advertisement, sales promotion, personal selling, and Direct Marketing.

Explain Porter’s Five Forces:

Porter's Five Forces is a framework for analyzing a market's competitive

intensity and attractiveness. Developed by Michael Porter in 1979, it identifies
five forces that influence the profitability of a business:

The threat of new entrants: The ease with which new companies can
enter and compete with existing firms. This is affected by factors like entry
barriers, high capital requirements, government regulations, or brand
loyalty.
Bargaining power of suppliers: The ability of suppliers to exert pressure
on businesses by raising prices or reducing the quality of inputs. This is
affected by factors like the concentration of suppliers, the availability of
substitutes, and the switching costs for businesses.
Bargaining power of buyers: The ability of buyers to exert pressure on
businesses by demanding lower prices or higher quality products or
services. This is affected by factors like the concentration of buyers, the
importance of the purchase to the buyer, and the availability of substitutes.
Threat of substitutes: The availability of products or services that can
satisfy the same customer needs as the existing products or services. This
can put pressure on businesses to lower prices or innovate.
Competitive rivalry: The intensity of competition between existing firms in
the market. This is affected by factors like the number of competitors, the
level of product differentiation, and the market's growth rate.

By understanding these five forces, businesses can develop strategies to

improve their competitive position and profitability. For example, a company
might try to
Raise barriers to entry to make it more difficult for new competitors to enter
the market.

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MARKETING
Develop strong relationships with suppliers to reduce their bargaining
power.
Offer differentiated products or services to reduce the bargaining power of
buyers.
Develop new or improved products or services to avoid the threat of
substitutes.
Reduce costs and improve efficiency to compete more effectively with rivals.

What is Digital Marketing?

Digital marketing is a form of direct marketing that links consumers with sellers
electronically using interactive technologies like emails, websites, online forums
and newsgroups, interactive television, mobile communications, etc.

What is Social media marketing?

It is a marketing technique to market your product and brand on various social
media channels like Facebook, Twitter, etc., to increase brand awareness and
generate a lead for the business.

What is Content marketing?

It is creating and promoting content for the product, brand or customer
awareness, lead generation, and traffic growth for the website.

What does AIDA stand for in advertising?

The AIDA model is an Attention, Interest, Desire, and Action acronym. It is a
model used in marketing that describes the steps a customer goes through in
the process of purchasing a product.

What are the 5 C’s of Marketing?

The 5 C’s are a good guideline for making the right decisions and constructing a
well-defined marketing plan and strategy.

1. Customer – Determine the needs and from which clients you’re trying to
satisfy. A few research areas can be market segments, frequency of purchases,
the number of purchases, retail channels, and customer needs, depending on
trends over time.

06
MARKETING
2. Company – Determine if your company is in a position to meet those
customer needs. For example, whether your company has the right product line
and technical expertise. An excellent tool to find out your company’s strengths
and weaknesses is the “SWOT” analysis.
Strengths: innovative products, expertise, and procedures
Weaknesses: lack of knowledgeable technical support or average product
quality
Opportunities: a new international market or a market led by a weak
competitor
Threats: a new competitor or price war

3. Competition – Determine who competes with your company to meet

customer needs. Is the competitor an active competitor, or is it a potential
threat? What are their products exactly? What are their strengths and
weaknesses?

4. Collaborators – Determine if there is an outside source or third-party help

that can help the company, such as distributors, suppliers, etc.

5. Context/Climate – Determine if there are any limitations due to

Political issues: legal problems, trade regulations, taxes, or labor laws
Economic issues: growth rate, labor costs, and business cycle stage
Social impacts: demographics, education, and culture
Technological developments: impact on cost structures
This is also known as “PEST” analysis.

Which is your favourite advertisement and why?

To be prepared for this question, you should check out a few of the latest ads.
Ads with a social message are easy to explain and analyse because it is obvious
why you like them.

Here are a few of the advertisements -

https://top15.in/top-15-indian-advertisements-with-a-social-message/

07
MARKETING
Explain - Pure monopoly, Oligopoly, Monopolistic competition, Pure
Competition.

Pure monopoly: A monopoly is a market situation in which there is only one

product seller with barriers to entry of others. The product has no close
substitutes. He is a price maker who can set the price to his maximum
advantage.

Oligopoly: An oligopoly is a market situation where a few firms sell

homogeneous or differentiated products. It is also known as the competition
among the few.

Monopolistic competition: Monopolistic competition refers to a market

situation where many firms sell differentiated products. No firm can have any
perceptible influence on the price-output policies of the other sellers, nor can it
be influenced much by their actions.

Pure Competition: In pure competition, the number of buyers and sellers is

very large. There is perfect competition among them. Every firm is a price taker
and a quality adjuster.

What is a brand, and what is the importance of brand management?

A brand is the set of product or service attributes imbibed in the consumer’s

mind in the form of a name, symbol, logo, design, and trademark. The
importance of brand management is:
Product differentiation from competitors
Building a corporate image
Creating a bundle of benefits for different product categories
Attract and retain the most loyal customers

08
MARKETING
Moment Marketing News and Current Affairs

https://www.marketingweekly.in/post/a-brief-and-curious-enquiry-into-
moment-marketing?cid=b3049fd3-231d-403d-ae1d-2fe610c0bdb7
https://brandequity.economictimes.indiatimes.com/news/marketing/spotlig
ht-2020-emerging-marketing-trends/80039204
https://www.marketingweek.com/marketing-weeks-top-news-stories-of-
2020/

What is Go to Market strategy?

A go-to-market strategy (GTM strategy) is an action plan that specifies how a

company will reach target customers and achieve competitive advantage. The
purpose of a GTM strategy is to provide a blueprint for delivering a product or
service to the end customer, considering factors such as pricing and
distribution.

What's the purpose of a go-to-market strategy?

Go-to-market strategies create the following benefits within an organization:

A clearly defined plan and direction for all stakeholders.
Reduced time to market for products and services.
Increased chances of a successful product or service launch.
Decreased likelihood of extra costs generated by failed product or service
launches.
Enhanced ability to react to changes and customer desires.
Improved management of challenges.
An established path for growth.
Ensures the creation of an effective customer experience.
Guaranteed regulatory compliance.

09
MARKETING
What is Influencer Marketing?

We always looked up to certain individuals and wished to be like them. With the
advent of social media, this urge has increased more than ever. These
individuals influence our perspective, lifestyle, and habits. Such entities are
known as Influencers, and the marketing tactic that leverages their position and
engagement for the growth of a company or promotion of a product, brand or
service is known as influencer marketing. This is one of the most important
types of digital marketing strategy.

Types of Influencers:

Nano: 1,000-10,000 Followers

Micro: 10,000-1,00,000 Followers
Macro: 1,00,000-10,00,000 Followers
Mega: More than10,00,000 Followers

What is Direct Marketing?

Direct marketing reaches customers directly with products, services, or

corporate information. Thus, the target audience receives all advertising
information directly. Direct marketing is a marketing tactic that uses advertising
to get customers to respond directly to its appeal. Direct marketing can be used
to build buyer relationships and sell.

What are the different Types of Direct marketing?

Telemarketing
Email marketing
Text marketing
Direct mail
Kiosk marketing
Direct selling
Social media marketing
Brochures

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MARKETING
Digital Marketing Strategies

Content Marketing Strategies: It is a great way to engage with customers

and build relationships. It examines the various strategies businesses can
use to create content that resonates with their target audience.
Digital Advertising: It is a great way to reach many potential customers. It
explores the different types of digital advertising, from display ads to search
engine marketing.
Email Marketing: Email marketing is still an effective way to reach
customers and build relationships. It examines businesses' various
strategies to create effective email campaigns.
Influencer Marketing: Influencer marketing is a great way to reach a large,
engaged audience. It explores the different types of influencers, from
celebrities to micro-influencers, and the various strategies businesses can
use to work with them.
Mobile Marketing: Mobile marketing is an incredibly powerful tool for
businesses of all sizes. It examines businesses' various strategies to reach
their target audience on mobile devices.
Search Engine Optimization (SEO): An important part of any digital
marketing strategy. It explores the various strategies businesses can use to
optimize their website for search engines.
Video Marketing: It is a great way to engage with customers and build
relationships. It looks at the various strategies businesses can use to create
effective videos that resonate with their target audience.
Visual Content Marketing: It is a great way to engage with customers and
build relationships. It explores the various strategies businesses can use to
create visual content that resonates with their target audience.
Voice Search Optimization: Voice search is becoming increasingly popular,
and businesses need to optimize their websites for voice search. It looks at
the various strategies businesses can use to optimize their website for voice
search.

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MARKETING
Trending Marketing Concepts

Guerrilla marketing is an unconventional and creative approach to marketing

that relies on low-cost, unconventional strategies to promote a product or
service. Here are some key details about guerrilla marketing:

Low-Cost Tactics: It involves low-cost tactics, making it suitable for small

businesses with limited budgets. The focus is on creativity and innovation
rather than large financial investments.
Unconventional Methods: It uses unconventional and unexpected
methods to capture the audience's attention. It often involves thinking
outside traditional marketing channels and finding unique ways to engage
with the target market.
Ambush Strategies: It sometimes uses ambush strategies, where the
promotion occurs in unexpected places or during unexpected events. This
element of surprise helps create a memorable impact on the audience.
Viral Potential: Its campaigns often aim to go viral. By creating highly
shareable and buzzworthy content, businesses hope to leverage word-of-
mouth and social media to reach a broader audience.
Street Art and Public Spaces: Using street art, public spaces, and
unconventional locations is common in guerrilla marketing. This approach
helps reach the audience daily, creating a more intimate connection.
Stunts and Events: It may involve organizing stunts or events that grab
people's attention. These events are designed to be memorable and
shareable, contributing to the campaign's success.
Creativity and Innovation: The success of guerrilla marketing hinges on
creativity and innovation. The more original and unexpected the campaign,
the more likely it is to stand out and resonate with the target audience.
Limited Duration: The campaigns are often short-lived, creating a sense of
urgency and exclusivity. This limited duration contributes to the campaign's
impact and encourages swift engagement.
Emotional Connection: Successful guerrilla marketing aims to create an
emotional connection between the brand and the audience. By tapping into
emotions, campaigns become more memorable and resonate deeper.

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MARKETING
Trending Marketing Concepts

Surrogate marketing: It refers to the practice of promoting one product or

brand to indirectly market another product or brand that may be restricted or
banned from advertising. This strategy is often employed when certain products
or services face legal or regulatory restrictions on promotion. Here are key
details about surrogate marketing:

Legal and Regulatory Constraints: Surrogate marketing is commonly used

when legal or regulatory constraints prohibit the direct promotion of a
particular product or brand. This can be due to health concerns, age
restrictions, or cultural norms.
Indirect Promotion: In surrogate marketing, the focus is on indirectly
promoting the restricted product by marketing a different product not
subject to the same restrictions. The goal is to create brand visibility and
awareness for the restricted product without explicitly advertising it.
Brand Association: The surrogate product is strategically chosen to create a
strong association with the restricted product. This association transfers
positive brand perceptions and sentiments from the marketed product to
the restricted one.
Avoidance of Direct Mentions: Surrogate marketing carefully avoids direct
mentions or promotions of the restricted product. Instead, it relies on
creating a connection in the minds of consumers between the marketed
product and the product that faces promotional restrictions.
Common Examples: Promoting alcohol brands. In many countries, there
are strict regulations on alcohol advertising. To circumvent these
restrictions, companies may promote merchandise, events, or other non-
alcoholic products associated with the brand.
Product Extensions: It often involves promoting product extensions or
related merchandise. This can include clothing lines, accessories, or events
that bear the brand name but aren’t the primary restricted product.
Ethical Considerations: It can raise ethical concerns, especially if it involves
exploiting loopholes in regulations or intentionally deceiving consumers.
Critics argue that it undermines the spirit of the regulations and can lead to
unintended consequences.

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MARKETING
Trending Marketing Concepts

Influencer Marketing: Building a positive and strong brand image is crucial for
creating a seamless connection in consumers’ minds. Brands collaborate with
individuals who have a significant and engaged following on social media
platforms. These influencers promote the brand’s products or services to their
audience, leveraging trust and authenticity. Key details include:

Authenticity: Influencer marketing relies on influencers' authentic

connection with their followers, making it a more genuine form of
promotion.
Reach and Engagement: Influencers can reach a large and targeted
audience, and their content often generates high levels of engagement,
enhancing brand visibility.
Types of Influencers: Influencers can be categorised based on their
follower count: micro (1,000 to 100,000), macro (100,000 to 1 million), and
mega (1 million and above). Different types suit different campaign goals.
Platforms: Influencer marketing is prevalent on platforms like Instagram,
YouTube, TikTok, and Twitter, with each catering to specific audience
demographics.
Compensation Models: Influencers may be compensated through various
models, including flat fees, affiliate marketing, free products, or a
combination, depending on the collaboration terms.
Niche Expertise: Many influencers specialise in specific niches, allowing
brands to target particular audiences effectively.
Storytelling: Influencers often use storytelling to integrate brands
seamlessly into their content, making it more relatable to their followers.
Measuring Success: Success metrics include engagement rates, reach,
follower growth, and, ultimately, the impact on sales or brand awareness.
Regulations: Adherence to advertising regulations, disclosure of sponsored
content, and transparency are crucial aspects of ethical influencer
marketing.
Long-Term Relationships: Building long-term relationships with influencers
can lead to sustained brand advocacy and a more profound impact on
audience perception.

14
MARKETING
Recent Digital Marketing Concepts

Video Marketing: Video content continued to dominate digital platforms.

Short-form videos on platforms like TikTok and Instagram Reels gained
popularity, while long-form content on YouTube remained significant.

Influencer Marketing: Brands increasingly collaborated with influencers to

reach their target audience. Micro-influencers, in particular, were valued for
their niche and engaged followers.

Social Commerce: E-commerce integration with social media platforms

expanded, allowing users to discover and purchase products directly within
social apps. Features like Instagram Shopping and Facebook Marketplace
gained traction.

Voice Search Optimization: With the rise of voice-activated devices like

smart speakers and virtual assistants, optimising content for voice search
has become crucial for digital marketers.

Artificial Intelligence (AI) and Chatbots: AI-powered tools, including

chatbots, were used to enhance customer interactions. They provided
instant support, personalized recommendations, and improved user
experience.

Personalization: Tailoring content and marketing messages to individual

preferences became increasingly important. Personalization efforts included
email campaigns, website content, and targeted advertising.

Augmented Reality (AR) and Virtual Reality (VR): Brands explored AR and
VR technologies to create immersive user experiences. This trend was
particularly prominent in industries like retail and entertainment.

Interactive Content: Interactive content, such as quizzes, polls, and

surveys, gained popularity for engaging audiences and fostering two-way
communication.

15
MARKETING
Recent Digital Marketing Concepts

Privacy Concerns and Data Protection: With increasing awareness of data

privacy, there was a growing emphasis on transparent data practices and
compliance with regulations like GDPR.

User-Generated Content (UGC): Brands encouraged users to create and

share content related to their products or services. UGC helped build trust
and authenticity.

Tools used for marketing analysis

The Ansoff Matrix, BCG Matrix, and SWOT Analysis are strategic management
tools that help organizations assess and plan their business strategies.

Ansoff Matrix
Purpose: Developed by Igor Ansoff, the matrix is designed to help businesses
identify growth opportunities by looking at products and markets.
Components:
Market Penetration: Focuses on selling existing products to existing
markets. Strategies may involve increasing market share, expanding
customer base, or increasing product usage.
Market Development: Involves introducing existing products to new
markets. This could include entering new geographical locations or targeting
different customer segments.
Product Development: Concentrates on creating and launching new
products for existing markets. The aim is to attract existing customers with
new offerings.
Diversification: Involves introducing new products to new markets. This is
considered the riskiest option but has the potential for high rewards.

BCG Matrix (Boston Consulting Group Matrix):

Purpose: Created by the Boston Consulting Group, this matrix helps
organizations analyze their product portfolio based on market share and growth
rate.

16
MARKETING
BCG Matrix (Boston Consulting Group Matrix):
Components:
Stars: High market share and high growth rate. These are products with
high potential that require significant investment.
Cash Cows: High market share but low growth rate. These products
generate more cash than is needed for maintenance, providing funds for
other products.
Question Marks (or Problem Children): Low market share but high growth
rate. These products may become stars or phased out if growth doesn't
occur.
Dogs: Low market share and low growth rate. These products may not
generate much revenue and must be considered for divestment.

SWOT Analysis
Purpose: SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.
It is a comprehensive tool used to analyze an organization's internal strengths
and weaknesses, as well as external opportunities and threats.
Components:
Strengths: Internal factors that give the organization an advantage over
others. This could include a strong brand, skilled workforce, or advanced
technology.
Weaknesses: Internal factors that may place the organization at a
disadvantage. These could be a lack of resources, outdated technology, or
poor management.
Opportunities: External factors that the organization could leverage for its
benefit. Opportunities may include market trends, emerging technologies,
or changing consumer preferences.
Threats: External factors that could pose a risk to the organization. Threats
may come from competition, economic downturns, or regulatory changes.

These tools are often used in combination to develop a holistic understanding

of an organization's current position and to formulate strategic plans for the
future.

17
MARKETING
Consumers vs Customers?

The terms "consumer" and "customer" are often used interchangeably, but they
don't always refer to the same entity. In essence, consumers use products, while
customers are the ones making the purchase. Generally, your marketing efforts
should focus on the customer rather than the consumer. For instance, consider
a small business manufacturing children's games or toys. Although children are
the actual users or consumers, they are not the customers. In this case, the
customers are the parents who buy the products for their children. Consumers
represent just one subgroup of customers. Take the example of an oven – if a
restaurant purchases it to make bread for patrons, the restaurant is a customer,
not a consumer. On the other hand, if you buy a stove to make bread for you
and your children at home, you are the consumer in this scenario.

Some marketing examples you can talk about in your interview, along
with some talking points to help you shine

1. Dove's Real Beauty Campaign

Launched in 2004, Dove's Real Beauty campaign challenged traditional beauty
standards by featuring real women of all shapes, sizes, and ethnicities in their
ads. This campaign resonated with women because it shifted the focus from
unrealistic beauty ideals to celebrating individual beauty and diversity. It also
highlighted Dove's commitment to body positivity and real representation,
which helped them connect with customers on a deeper level.

2. Nike's "Just Do It" Campaign:

Launched in 1988, Nike's "Just Do It" campaign is one of the most iconic and
recognizable slogans in history. It inspires people to push their limits and
achieve their goals, regardless of their fitness level or experience.
This campaign's success lies in its simplicity and emotional connection. It taps
into people's desire for self-improvement and accomplishment, and it motivates
them to take action. The campaign has also been incredibly versatile, adapting
to different sports, athletes, and cultural contexts over the years.

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MARKETING
3. Old Spice's "The Man Your Man Could Smell Like" Campaign:
Launched in 2008, Old Spice's "The Man Your Man Could Smell Like" campaign
took a humorous approach to targeting a younger male audience. The ads
featured Isaiah Mustafa, a former NFL player, in a series of vignettes that played
on traditional stereotypes of masculinity. This campaign was successful because
it was funny, unexpected, and relatable. It broke away from the usual tropes of
men's deodorant advertising and made Old Spice seem cool and approachable.
The campaign also went viral online, further boosting its reach and impact.

4. Ikea's "Live Lagom" Campaign (2023):

This campaign promotes "lagom," a Swedish concept of balance and
moderation applied to sustainable living. Ikea showcases how small changes in
home design and daily routines can make a big impact on the environment.
Resonates with consumers seeking eco-friendly solutions and mindful living.
Positions Ikea as a leader in sustainable home products and practices.

5. Spotify's "Wrapped" Campaign (2023):

Spotify's annual "Wrapped" campaign personalizes user data into creative and
shareable infographics, generating immense social media buzz. The "Only You"
feature highlights unique listening trends, fostering user engagement and brand
loyalty. Drives user engagement and content creation around Spotify, extending
its reach and solidifying its position as a personalized music platform.

19
 CONSULTING

BY CONSULTU
THE STRATEGY AND CONSULTING CLUB
OF IIM UDAIPUR
CONSULTING
Some Important Concepts

About Consulting

Let's define Consulting according to the Oxford dictionary, which says, "Engaged
in the business of giving expert advice to people working in a specific field." In
other words, a consultant is someone who advises a specific group of people.

That's it! It's just that simple.

So, who is a consultant?

A consultant has some level of expertise that a group of people find valuable,
and people within that group are willing to pay the consultant to access their
knowledge.

Why is Consulting so valuable?

Suppose the consultant is someone who gives advice. Then, the question is, why
do people need guidance, and why are they willing to pay for it?

People ask for advice because they want to change something, attain
something, or become something.

That's why people want advice, to get to a certain point, but they don't know
how to get there. They are either facing obstacles or can't overcome them.

The true meaning of consulting is helping people solve problems and move
from their current state to their desired state. The more valuable that desired
state is to someone, the more they are willing to pay for help in getting there.

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CONSULTING
Why do people hire Consultants?

There are three main reasons people decide to bring outside advice:
1. They are unable to figure it out or get to their desired state on their own.
2. They have a general idea, but they want to get there faster.
3. They want to save time and effort by following an efficient and proven
system.

Consulting is more than just giving advice. It involves a hierarchy of purpose:

1. Providing information to a client.
2. Solving a client's problems.
3. Making a diagnosis, which may necessitate the redefinition of the problem.
4. Making recommendations based on the diagnosis.
5. Assisting with the implementation of recommended solutions.
6. Building a consensus and commitment around corrective action.
7. Facilitating client learning—that is, teaching clients how to resolve similar
problems in the future.

Broad Classification of Consulting:

When someone says, "I'm a consultant," they will typically fall into one of three
categories.

1. Management Consulting: Management Consulting is what most people

think of when someone says "consulting." This field is dominated by large firms
like McKinsey, Bain & Company, and Boston Consulting Group, which are hired
to help enterprise businesses improve strategy and operations or manage
significant business events like mergers and acquisitions.

2. Corporate Consulting: This is more of a catch-all category for those with a

"Consulting" job description in the corporate world. It involves in-house
consulting services, implementation teams, B2B consulting businesses, and a
host of other things.

22
CONSULTING
3. Independent Consulting: When someone has developed expertise in an
area, they choose to build and run their own business around that expertise.

Classification based on Functionality

1. Management Consulting: Management consultants, also known as business

consultants or organizational advisors in practice, focus on all sorts of regulatory
concerns, from strategy to a variety of elements within management.
Management Consulting is a collective term used for all services that fall under
Strategy Consulting, Operations Consulting, and HR Consulting. Management
Consultancy frameworks are often used to assess several factors.

a) Strategy Consulting: The term Strategy Consulting is used to describe

consultants who operate at the highest level of the consultancy market, focusing
on strategic topics like corporate and organizational strategy, economic policy,
government policy, and functional strategy. Their focus lies more on
quantitative/analytics skills, and their job description revolves more around
advising and overseeing implementation. Examples of Strategy consulting:
Corporate Strategy
Business Model Transformation
Mergers and Acquisitions
Organizational Strategy
Digital Strategy

b) Operations Consulting: Operations consultants are consultants who help

clients improve the performance of the operations. Consultancy activities in this
segment vary from advisory services to hands-on implementation support for
primary functions(e.g., Sales, Marketing, Production, etc.) and secondary
purposes (e.g., Finance, HR, Supply Chain, ICT, Legal, etc.).

c) Human Resource Consulting: HR consultants help clients with human

capital challenges within their organizations and improve the HR department's
performance. Chief topics central to HR consultants' job descriptions are
organizational changes, change management, terms of employment, learning&
development, talentmanagement, and retirement.

23
CONSULTING
2. Financial Advisory Consulting: This segment generally works on questions
that address financial capabilities and, in many cases, the analytical capabilities
within an organization. A financial consultant often works with a company's CFO
or the strategic consultant to help the business align its financial goals (e.g.,
overhead costs, return on investments, profit margins, etc.) with strategic goals.

3. IT Consulting: Technology consultants, also known as IT, ICT, or digital

consultants, focus on helping clients with the development and application of
Information Technology (IT) within their organization. IT consultants focus on
transitions (projects) in the ICT landscape, contrary to regular IT employees, who
work on day-to-day IT operations (so-called 'business as usual activities).

4. Marketing Consulting: Whether you need a new logo for your company, a
new market position for one of your brands, a new social media strategy to
interact with your customers, or planning and implementing a marketing
strategy, a marketing consultant helps in all marketing aspects of a firm's
business.

5. Compliance and Legal Consulting: These consulting services help firms

adhere to federal and local laws and regulations. A compliance consultant must
have a sound knowledge of local laws and regulations as it's essential for
successful businesses to be compliant with local and federal laws.

6. Others: This includes consulting groups that are not commonly practiced and
can be classified as "Small Shops".
Real Estate Consulting
Engineering Consulting
Design Consulting
Pharma Consulting
Petro Consulting
Sustainability Consulting
PR Consulting

24
CONSULTING
Top Players

Roles/ Hierarchy at a Consulting Firm

25
CONSULTING
Skills required by a Consultant

How will an MBA help you bag your dream consulting role?

1. An MBA can help you bridge the gap between your professional experience
and consulting opportunities.
2. MBA programsimmediately connect you to a priceless networkof people
who are investedin your success.
3. The MBA internship programimproves your chancesof landing your ideal
full-timeconsulting position. During the internship, you will have the
opportunity to work in your desired role and hone the necessary skills.
4. Provide you with numerousopportunities to learn,expand your horizons,
and transform.

26
CONSULTING
Tools and Methodologies for Consulting

What is a Business Framework?

As an independent consultant, clients ultimately hire you to solve a problem or

pain point. Frameworks are useful tools that help you analyze the issue,
structure your thinking, and communicate your recommendations. Business
frameworks can help you articulate goals with strong business writing and
develop a blueprint for success. You can take a broader conceptual framework
and scale it to fit your needs. A business framework also gives you a starting
place and a common vocabulary that you can edit to fit your client's goals.

In other words, think of frameworks as your problem-solving sidekick—like a

trusty Swiss Army knife for consultants. They're these handy tools that help you
break down the problem, organize your thoughts, and present solutions in a
way that just makes sense.

Business Frameworks for Consultants

There are seven business frameworks that can be used across disciplines to
answer some of the most common business questions:

1. The 3C: Company, Competitors, and Customers

The 3C consulting framework revolves around Company, Competitor, and

Customer analysis. Company analysis delves into internal strengths and
weaknesses. Competitor evaluation scrutinizes rivals' strategies and
vulnerabilities. Customer analysis focuses on evolving preferences. These pillars
collectively shape strategic recommendations, aligning with the company's
strengths, addressing competitors' weaknesses, and meeting customer
expectations.

27
CONSULTING

(https://online.visual-paradigm.com/knowledge/strategic-analysis/what-is-ohmaes-3c-model/)

2. Porter's 5 Forces

Power is a key element in you and your client's success. To sustain profitability
and a competitive position, you want to balance the power in your favour.
Porter's Five Forces is a valuable tool in helping you to understand both the
power of your current competitive position and the planned position.

(https://yourfreetemplates.com/wp-content/uploads/2019/03/Porter%E2%80%99s-five- forces-
e1552181129804.png)

28
CONSULTING
Porter's five forces are:
1. Competition in the industry
2. Potential of new entrantsinto the industry
3. Bargaining power of suppliers
4. Bargaining power of customers
5. The threatof substitute products

Key Takeaways
Porter's Five Forces is a framework for analyzing a company's competitive
environment.
The number and power of a company's competitive rivals, potential new
market entrants, suppliers, customers, and substitute products influence a
company's profitability.
Five Forces analysis can be used to guide business strategy to increase
competitive advantage.

3. SWOT Matrix

The SWOT Analysis framework is used to evaluate the Strengths (S), Weaknesses
(W), Opportunities (O), and Threats(T) of a venture or a project.

29
CONSULTING
SWOT analysis, a pivotal tool in strategic planning, assesses an organization's
internal Strengths and Weaknesses and external Opportunities and Threats. It
scrutinizes positive attributes and challenges internally, while externally
evaluating growth opportunities and potential risks. This comprehensive
evaluation empowers businesses to make informed decisions, leverage
strengths, address weaknesses, seize opportunities, and mitigate threats for
strategic success.

4. PESTEL Analysis

PESTEL analysis is like a simple checklist covering politics, the economy, society,
technology, the environment, and the law. It gives a clear picture of what's
happening outside the business, helping to foresee problems, spot chances, and
make smart decisions that fit the current business vibe.

Political Factors: Think about how government policies and stability might
influence the business—like taxes, trade rules, and political conditions.
Economic Factors: Consider the economic climate and trends, such as
inflation, exchange rates, and whether the economy is growing or not. This
helps in anticipating financial challenges and opportunities.
Social Factors: Look at society—demographics, cultural trends, and
people's attitudes. This helps understand what customers like, how they
behave, and any shifts in society that could affect the business.
Technological Factors: Check out the tech scene. What new gadgets or
innovations could impact the industry? This helps in staying competitive and
adapting to technological changes.
Environmental Factors: Consider eco-friendly practices and environmental
trends. This involves looking at sustainability, environmental rules, and how
green the business operations are.
Legal Factors: Think about laws and regulations that affect the business.
This includes making sure the business complies with rules, understanding
industry-specific regulations, and spotting legal opportunities or challenges.

30
CONSULTING

5. BCG Matrix

The BCG Growth-Share Matrix provides a framework for deciding how to use
resources. It is also helpful in assessing each product or business unit'sability to
generate profit continuously.

(https://www.business-to-you.com/bcg-matrix/)

31
CONSULTING
The BCG growth-share matrix breaksdown products into four categories:
Question Marks: High Growth, Low Market Share (Uncertainty)
Dogs: Low Growth, Low Market Share (Less Profitable)
Stars: High Growth,High Market Share(High Competition)
Cash Cows: Low Growth, High Market Share (Most Profitable)

It is simple to implement and easy to understand. Larger companies can use it

to seek volume and experience effects. It predicts the future actions of a
company.
Hence, the company can decide its proper management strategy. It helps
managers evaluate balance in the firm's current Question Marks, Dogs, Stars,
and Cash Cows portfolio.

6. McKinsey 7S

The McKinsey 7S Framework is an excellent tool to help you find and fix internal
organizational problems.

(https://www.intology.co.uk/the-mckinsey-7s-framework)

32
CONSULTING
McKinsey 7S Framework is a strategic planning tool designed to help an
organization understand if it is set up in a way that allows it to achieve its
objectives.
Before the advent of the 7S Model, when managers thought about
organizational design, they tended to focus on structure and strategy. They
thought about who is responsible for what, who reports to whom, how many
layers of management should be there, and how to beat the competition.

It is used for:
Organizational change
Mergers and acquisitions
Implementation of a new strategy
Understanding the weaknesses (blind spots) of an organization

7. MECE

MECE is a systematic problem-solving framework that helps to solve complex

problems. It can help you eliminate confusion and focus on critical data that
pointsthe way towards success.

(https://www.caseinterview.com/mece)

33
CONSULTING
Benefits of using a Business Strategy Framework

A business framework can analyze and guide decisions for your client and your
own business. For example, the 3C Model can help you develop a competitive
strategy for your client or can be applied to develop a social media marketing
plan for your personal brand.
There is no one best framework, and often you may find that you are using
multiple frameworks in your client's work. Frameworks save you time by
providing a starting point for information gathering and analysis, but remember,
your expertise and common sense is the most powerful framework you have.
These tools are time-savers, but your business insight will ultimately deliver
value to your client.

34
CONSULTING
Guesstimate Questions

1. Estimate the number of hours spent watching YouTube videos weekly.

2. How many Apple phones are sold daily in India?
3. Estimate the market size for education loans in India.
4. How many cups of coffee are consumed in India per day?
5. How many tons of potatoes are consumed in your hometown every month?
6. How many tennis balls can you place inside the room we are currently in?
7. How many tourists arrive in Udaipur each day?
8. Estimate the total revenues from The Matrix movie series if they are
released today.
9. How many people fly in and out of Mumbai Airport every day?
10. Estimate the market size for education loans in India.
11. How many tweets are posted on Twitter every day?
12. How many chapatis are consumed in India in a month?
13. How would you estimate the market size of the organic food industry in
India?
14. How many extra airports are needed in India in the current scenario?
15. How many mobile apps are downloaded per day around the world?
16. How many emails are sent per day across the world?
17. Estimate the number of Ayurveda doctors in India.
18. How many litres of fuel is consumed by passenger cars in Mumbai per day?
19. How many reels are posted in Instagram on a daily bais?
20. How many cars pass through the Atal tunnel every year?

35
CONSULTING
Guesstimate Problem Solving Approach

1. Understand the Question: Clearly grasp what the problem is asking and
note any given information.
2. Break It Down: Identify key components and simplify the problem into
smaller parts.
3. Assumptions: Make logical assumptions and state them clearly.
4. Use Benchmarks: Relate the problem to something familiar for easier
estimation.
5. Round Numbers: Simplify calculations by rounding for practicality.
6. Logical Reasoning: Apply common sense and logic to arrive at an estimate.
7. Verify and Adjust: Check the reasonableness of your estimate and refine if
needed.
8. Clear Communication: Clearly explain your assumptions and the steps
taken to arrive at the estimate.

In guesstimate problems, it's not about getting the exact answer. Instead, it's
about showing how you solve problems in a step-by-step way and giving a
sensible and explainable guess.

36
CONSULTING
Interview Questions

1. Why do you want to pursue consulting?

2. What makesa good consultant?
3. What, according to you, are essential skills required to be a consultant?
4. What is the primarycause of concern for consulting firms around the world?
5. Facts vs instincts. Which is more important?
6. Bottom-up vs top-down approach.Which is better according to you?
7. How should consultants set prices for projects?
8. How do you size a market?
9. Why do companies need consultants?
10. How would you explain a complicated technical issue to a client?
11. How does a consultant segment a market?
12. If you want to start a retail fashion outlet in India, what factors will you
consider?
13. A regular brick-and-mortar store is facing a tough time competing with big
online shops. What would you advise it?
14. Which industry do you see evolving and why?
15. What are some important ethical considerations for consultants?
16. As a consultant, how would you use data analytics to solve a business
challenge?
17. Which business strategy frameworks are your favorites, and why?
18. Assume you have five million dollars and a month to start a fresh business.
In what way would you respond to it?
19. Make up a joke about consulting for me.
20. Describe the main issues that the renewable energy sector is currently
facing.

37
CONSULTING
Typical Business Problems

A tech startup is growing rapidly, but it's having trouble retaining customers.
How would you handle this situation?
Traffic to a client's website has suddenly decreased. How would you identify
and resolve the problem?
My marketing department is burning money. I need to reduce costs without
affecting performance and sales in any way.
An organization that provides financial services wishes to use AI and
machine learning to enhance its offerings. Which potential uses come to
mind?
I want to introduce my product/service in China, Taiwan, and Malaysia. Build
a roadmap and entry/launch strategy.

The following articles/videos may help you:

How Consultants ProjectExpertise and Learn at the Same Time | Coworking

Consulting Consulting Is More Than Giving Advice (hbr.org)
6 Tools Every Business Consultant Should Know (harvard.edu)
Project Management Consulting Skills - How consultants manage projects and
file structures - YouTube
What Does A Consultant Do - Successful Coaching & Consulting Secrets Ep. 4 -
YouTube

Other Sources:
https://www.mbopartners.com/blog/how-grow-small-business/top-business-
frameworks/
https://www.bcg.com/en-in/about/our-history/growth-share-matrix
https://fourweekmba.com/3c-model/
https://expertprogrammanagement.com/2018/05/pest-analysis/
https://www.consultancy.in/career/types-of-consultants
https://www.consulting.com/what-is-consulting-definition

38
 OPERATIONS

BY SKEIN
THE OPERATIONS AND SUPPLY CHAIN CLUB
OF IIM UDAIPUR
OPERATIONS
Operations Management

Operations management is the administration of business practices to create

the maximum efficiency possible within an organization. It is concerned with
converting materials and labor into goods and services as efficiently as possible.
Operations management professionals balance costs with revenue to maximize
net operating profit.

Supply Chain Management

Supply chain management can be described as managing the flow of products

and services, beginning from the origin of the products and ending at the
product's consumption. It also involves transporting and storing raw materials
in advancing research, production, and fully furnished items.

40
OPERATIONS
Advantages

The key advantages of Supply Chain Management are:

Develop improved customer relations and service by meeting customer
demands.
Improves efficiency and organizational functions.
Minimizes storage and distribution costs.
Assists in getting goods shipped to the right place at the right time.
Improves inventory management and supports the successful
implementation of just-in-time stock models.
Assists businesses in waste minimization, cost reduction, and efficiency
throughout the supply chain process.

Supply Chain Strategies

1. Push Strategy:

Push strategy relies on modeling, customer demand forecasts, and pushing as

many goods onto the market as possible. The companies foresee the demand
long before it arrives and plan production and inventory to meet their needs.
For example, winter clothing reaches the retailers at the end of summer so that
there is new stock in the shop as soon as winter arrives.

41
OPERATIONS
2. Pull Strategy:

Pull Policy is based on customer orders. It helps the company generate the
number of required items. In business, production and distribution depend on
demand. An example of a pull strategy is McDonald's, where they prepare
burgers after receiving an order.

Scheduling

Scheduling involves making decisions regarding allocating available capacity or

resources (equipment, labor, and space) to jobs, activities, tasks, or customers
over time.

Different Types of Scheduling Strategy

Chase Strategy: Companies that use the chase strategy, or demand matching
strategy, produce only enough goods to meet the demand for goods or match
that demand.

Make-to-Stock: Instead of setting a production level and attempting to sell

goods, a company using make-to-stock would estimate how many orders its
products could generate and supply enough stock to meet those orders.

42
OPERATIONS
Why do manufacturers/organizations hold inventory?

1. Meet variation in production demand

2. Cater to cyclicaland seasonal demand
3. Economies of scale in procurement
4. Taking advantage of price increasesand quantity discounts
5. Reduce transit cost and transittime, which in turn will reduce the overall lead
time

Some More Terminologies

Throughput Time/ Flow Rate: Measures the number of flow units that move
through the process in the given unit of time.

Process Process Time

Batching of raw materials (cement,

180 secs
aggregate, water, admixture)

Mixing of raw materials 120 secs

Dispatch of finished products 90 secs

In the above example,the maximum quantityof concrete that can be produced

is 1 cubic meter in a single iteration.

The processing time for each activity is shown. So, the throughput time is the
total time it takes to manufacture 1 cubic meter of concrete

43
OPERATIONS
Make-to-Order: Companies using a make-to-order strategy produce goods
after the customer has placed an order. Most often, a company that produces
one-of-a-kind goods uses the make-to-order strategy.

Assemble-to-Order: Assemble-to-order (ATO) is a strategy where products that

are ordered by customers are produced quickly and are customizable to a
certain extent.

Inventory Management

What is Inventory?

Inventory is an idle stockof physical goodsthat contain economicvalue and are

held in various forms by an organization in its custody awaiting packing,
processing, transformation, use, or sale in a future point of time.

INPUT PROCESS OUTPUT

Raw Materials Work In Process Finished Goods

Consumables required for Semi-finished production in various Finished Goods at

processing. Eg, Fuel, stages, lying with various departments Distribution Centers
Stationary, Bolts & Nuts etc., like Production, WIP Stores, QC, Final throughout the
required in manufacturing Assembly, Paint Shop, Packing, Supply Chain
Outbound Store, etc.

Maintenance Items / Finished Goods in

Production Waste and Scrap Material
Consumables transit

Finished Goods with

Packing Materials Rejections and Defectives
Stockiest and Dealers

Local purchased items Spare Parts Stocks &

required for production Bought Out Items

Repaired Stock and

Parts

44
OPERATIONS
Cycle Time: There are two types of cycle time- one that can be calculated for
each process involved in production and the other that can be calculated for the
entire concrete production. Both the cycle times are dependent on the process
capacity (how many units can be produced in an hour. In this case, the unit will
be 1 cubic meter).

Stations Cycle Time = (Process Time) /

Process
Available (No. of Workstation)

Batching 4 45 secs

Mixing 2 60 secs

Dispatch 2 45 secs

The cycle time of each station is the average amount of time it will take to
produce 1 cubic meter of concrete as output. Assuming each station can carry
out one process at a time, the process time is divided by the number of
workstations. For example, mixing takes 120 secs per 1 cubic meter of concrete
produced. But since there are 2 stations available, 1 cubic meter of concrete can
be produced in 60 seconds of cycle time.

Bottleneck: The bottleneck is the slowest cycle time (longest cycle time) in the
process and it determines the rate at which the entire system can produce
concrete. In other words, the bottleneck, determines the capacity for the entire
manufacturing. In the above example of concrete manufacturing, the mixing
process is the bottleneck.

45
OPERATIONS
Just-in-Time

The just-in-time (JIT) inventory system is a management strategy that aligns raw-
material orders from suppliers directly with production schedules. Companies
employ this inventory strategy to increase efficiency and decrease waste by
receiving goods only as they need them for the production process, which
reduces inventory costs. This method requires producers to forecast demand
accurately.

For example, some retailers now use the JIT method to streamline the delivery
process. For example, a company that markets office furniture but does not
manufacture it may order the furniture from the manufacturer only when a
customer makes a purchase. The manufacturer delivers it directly to the
customer. The retailer has saved the cost of storing inventory.

Six Sigma

Six Sigma is a disciplined, statistical-based, data-driven approachand continuous

improvement methodology for eliminating defects in a product, process, or
service.

The table below demonstrates the number of defects per million at different
sigma levels. Sigma represents the population standard deviation, which is a
measure of the variation in a data set collected about the process. If a defect is
defined by specification limits separating good from bad outcomes of a process,
then a six-sigma process has a process mean (average) that is six standard
deviations from the nearestspecification limit. This provides enough buffer
between the process's natural variation and the specification limits.

46
OPERATIONS
Trending Topics in Supply Chain

1. Artificial Intelligence and Automation

Artificial Intelligence (AI) plays a pivotal role in revolutionizing supply chain

management by enhancing efficiency and decision-making. Through predictive
analytics, AI enables businesses to forecast demand accurately, optimize
inventory levels, and reduce costs. Machine learning algorithms analyze vast
datasets, identifying patterns to improve demand planning and streamline
logistics. AI-powered tools enhance real-time visibility, providing insights into
supply chain operations and helping businesses adapt swiftly to changes.
Automation of routine tasks, such as order processing and inventory
management, minimizes errors and accelerates processes. Overall, integrating
AI into supply chain management leads to greater agility, cost-effectiveness, and
improved customer satisfaction, fostering a more resilient and responsive
supply chain ecosystem.

2. The Internet of Things

The Internet of Things (IoT) revolutionizes supply chain management by

seamlessly connecting physical devices to gather and exchange real-time data.
This interconnected network enhances visibility, enabling companies to monitor
and optimize every stage of the supply chain. IoT facilitates predictive
maintenance, reducing downtime and enhancing operational efficiency. Smart
sensors and RFID technology track inventory, ensuring accurate stock levels and
minimizing errors. Real-time data analytics provide valuable insights for
decision-making, enabling agile responses to changing conditions. By integrating
IoT into supply chain processes, organizations can streamline operations,
reduce costs, and enhance overall productivity, ultimately fostering a more
responsive and resilient supply chain ecosystem.

3. Circular Supply Chain

Circular Supply Chain in supply chain management focuses on creating a

sustainable and environmentally friendly system.

47
OPERATIONS
It emphasizes minimizing waste, reusing materials, and recycling throughout the
entire supply chain life cycle. This approach aims to reduce the environmental
impact by promoting product design for longevity, efficient resource utilization,
and responsible disposal. Circular Supply Chain fosters a closed-loop system
where products and materials are continuously cycled, reducing the need for
virgin resources and decreasing the overall ecological footprint. Companies
adopting this model prioritize environmental responsibility, cost savings, and
resilience in the face of resource scarcity, contributing to a more sustainable and
circular economy.

4. Cloud-Based Solutions

Cloud-based solutions revolutionize supply chain management by offering real-

time visibility, agility, and efficiency. These solutions leverage a scalable and
flexible infrastructure, enabling seamless collaboration among stakeholders.
They facilitate data-driven decision-making through analytics and predictive
insights, optimizing inventory levels and reducing operational costs. Cloud
platforms enhance connectivity across the supply chain, from suppliers to end-
users, fostering transparency and responsiveness. Additionally, they improve
scalability, allowing businesses to adapt to changing demands swiftly. With
centralized data storage and accessibility, these solutions enhance
communication, minimize errors, and provide a foundation for innovative
technologies like IoT and AI, ensuring a competitive edge in the dynamic
landscape of supply chain management.

48
 ANALYTICS

BY TECHNALYTICS
THE ANALYTICS AND IT CLUB
OF IIM UDAIPUR
ANALYTICS
What is GenAI (Generative AI)?

Generative Artificial Intelligence, or GenAI, is a type of AI that focuses on creating

new and unique content or solutions. Unlike traditional AI models that learn
from existing data to make predictions or decisions, GenAI generates entirely
new outputs.

The main idea behind GenAI is to enable machines to understand patterns in

data and generate novel content autonomously. This includes generating text,
images, music, or solutions to complex problems. Some examples of GenAI are
Generative Adversarial Networks (GANs) and transformer-based models like
OpenAI's GPT (Generative Pre-trained Transformer).

GenAI has found applications in various fields like content creation, art, natural
language generation, and scientific research. Its ability to produce creative and
relevant outputs has significantly improved areas where generating new
content is crucial. However, as with any technology, it should be used ethically,
avoiding potential biases and deploying responsibly.
Overview of Generative AI: https://generativeai.net/
Impact of AI in business: https://www.gartner.com/en/topics/generative-ai

How Generative AI is transforming business?

Generative AI transforms business by revolutionizing various aspects, from

content creation and design to problem-solving and decision-making. It enables
the automatic generation of creative and complex outputs, such as images, text,
and even entire design prototypes. Businesses leverage Generative AI to
enhance efficiency, streamline workflows, and create personalized user
experiences. The technology has applications in diverse sectors, including
marketing, healthcare, finance, and manufacturing, contributing to innovation
and competitive advantage.

Applications of Generative AI

Content Generation, Image Synthesis, Text-to-Image Synthesis, Chatbots and

Customer Service, Data Augmentation, Game Development, Language
Translation, Predictive Analytics, Generative AI capabilities and applications.
https://www.techopedia.com/definition/34633/generative-ai

50
ANALYTICS
Will there be layoffs because of Generative AI?

While AI technologies can automate certain tasks, leading to increased

efficiency, they also create new opportunities and roles. Implementing
Generative AI may change the nature of some jobs, requiring upskilling or
reskilling of the workforce. Instead of mass layoffs, businesses are more likely to
transform the required skill sets, focusing on roles that complement and
collaborate with AI technologies.

Explain the digitization of the economy and the pivotal role played by UPI
payments.

The digitization of the economy refers to the increasing integration of digital

technologies in various economic activities, encompassing the production,
distribution, and consumption of goods and services. The advent of the internet
and widespread mobile device usage has significantly expedited this
transformation, fostering greater connectivity and access to information. A
notable contributor to this digital shift is the role of Unified Payments Interface
(UPI) payments. This system enables seamless and instant money transfers
between bank accounts through mobile devices.

UPI payments have played a transformative role in reshaping traditional

financial transactions, offering a convenient and efficient mechanism for
individuals and businesses to engage in digital financial interactions. The UPI
system facilitates quick and secure fund transfers, bill payments, and online
purchases, thereby contributing to new business models, such as thriving e-
commerce platforms and digital marketplaces. Moreover, UPI payments have
fostered financial inclusion by providing users with accessible and user-friendly
digital tools for conducting monetary transactions.
Digital Payments driving the growth of Digital Economy:
https://www.nic.in/blogs/digital-payments-driving-the-growth-of-digital-
economy/
The Role of UPI in Digital India: https://www.aubank.in/blogs/role-upi-digital-
india-advantages-impact

51
ANALYTICS
Why Are There Layoffs in Tech Companies?

Layoffs in tech companies can result from various factors, including changes in
business strategies, economic downturns, mergers or acquisitions, technological
shifts, or organizational restructuring. Automation and technological
advancements can lead to job redundancies, prompting companies to
streamline their workforce. Additionally, market competition and the need for
cost efficiency can drive companies to make strategic decisions regarding their
workforce.

AI/ML/Deep Learning/GenAI: Commonalities and Variances

Artificial Intelligence (AI) is a vast domain encompassing diverse techniques

and methodologies for developing intelligent systems. It is categorized into two
fundamental types: weak AI, designed for specific tasks, and strong AI, crafted to
perform any intellectual task akin to a human being. The overarching objective
of AI is the creation of machines capable of thinking, learning, and adapting in a
manner reminiscent of humans.

Machine Learning (ML) emerges as a subset of AI, employing algorithms to

train models on data, enabling them to make predictions or decisions without
explicit programming. ML primarily focuses on enhancing system performance
by learning from data, aiming to create models that can generalize effectively to
novel datasets.

Deep Learning, a specific technique within ML, revolves around training multi-
layered neural networks, often called "deep networks," using extensive datasets.
Drawing inspiration from the structure and functionality of the human brain,
these neural networks prove particularly adept in tasks such as image and
speech recognition. What sets deep learning apart is its ability to autonomously
learn features from data, eliminating the need for manual feature engineering.

GenAI, a recent addition to this spectrum, introduces a new paradigm where

artificial systems are not just learning from data but generating novel content
and solutions. This advancement signifies a shift from traditional machine
learning approaches, opening avenues for creative and generative applications
across various domains. AI and GenAI differences:
https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-
generative-ai

52
ANALYTICS
Internet of Things (IoT): The Internet of Things (IoT) represents a network of
interconnected devices, vehicles, appliances, and other physical objects
embedded with sensors, software, and network connectivity. This network
enables these objects to collect and exchange data, fostering seamless
communication and intelligent decision-making. IoT applications span various
domains, including smart homes, industrial automation, healthcare, and
agriculture.

Cybersecurity: Cybersecurity encompasses the practices, technologies, and

processes to safeguard digital systems, networks, and data from unauthorized
access, attacks, and damage. In an increasingly digital world, cybersecurity
measures are crucial to protect sensitive information, ensure privacy, and
maintain the integrity of digital assets. Cybersecurity strategies include firewalls,
encryption, multi-factor authentication, and continuous monitoring.

Digital Marketing: Digital marketing involves the use of digital channels, such
as websites, social media, email, and search engines, to promote products or
services. It leverages online platforms to reach a target audience, build brand
awareness, and drive customer engagement. Digital marketing strategies
include search engine optimization (SEO), content marketing, social media
marketing, and online advertising.
What is digital marketing: https://www.youtube.com/watch?v=bixR-KIJKYM

Statistical Modelling: Statistical modeling refers to the process of using

statistical techniques to represent, analyze, and interpret data. It involves
creating mathematical models that capture relationships between variables and
making predictions or inferences based on data patterns. Statistical modeling is
widely used in various fields, including finance, epidemiology, economics, and
social sciences.

Data Warehousing and Data Centres: Data warehousing involves storing,

organizing, and retrieving large volumes of structured and unstructured data in
a centralized repository. Data centers provide the infrastructure and resources
for storing, processing, and managing data. Together, they form the backbone
of information management, supporting businesses in making informed
decisions based on comprehensive data analysis.

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ANALYTICS
Agile: Agile is an iterative and flexible approach to software development that
emphasizes collaboration, adaptability, and customer feedback. It involves
breaking down the development process into small, incremental cycles called
sprints, allowing teams to respond quickly to changing requirements. Agile
methodologies, such as Scrum and Kanban, prioritize customer satisfaction,
teamwork, and continuous improvement.

What is Data Analytics? What are its different types and applications?

Data analytics is a broad term encompassing many diverse types of data

analysis. Any information can be subjected to these techniques to glean insights
that improve things. These techniques reveal trends and metrics that would
otherwise be lost in the vast ocean of information. This knowledge can then be
used to optimize processes and increase the overall efficiency of a business or
system.
For example, manufacturing companies often record various machines'
runtime, downtime, and work queues. By analyzing this data, they can better
plan workloads and ensure the machines operate closer to peak capacity.
But data analytics can do much more than point out bottlenecks. Gaming
companies use it to set reward schedules that keep players engaged. Content
companies leverage it to keep you clicking, watching, or re-organizing content
for another view or click.

Types of Data Analytics:

Data analytics is broken down into four basic types:
Descriptive analytics: This describes what has happened over a given
period. Have the number of views gone up? Are sales stronger this month
than last?
Diagnostic analytics: This focuses on why something happened. It involves
more diverse data inputs and hypothesizing. Did the weather affect beer
sales? Did that latest marketing campaign impact sales?
Predictive analytics: This moves to what will likely happen soon. What
happened to sales the last time we had a hot summer? How many weather
models predict a hot summer this year?
Prescriptive analytics: This suggests a course of action in response to
predictions. If the likelihood of a hot summer is measured as an average of
these five weather models is above 58%, we should add an evening shift to
the brewery and rent an additional tank to increase output.

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ANALYTICS
Data Analysis Steps

The data analysis process involves several different steps:

Determine the data requirements: Data may be categorized by age,
demographics, income, or gender. Data values may be numerical or divided
by category.
Collect the data: This can be done through various sources such as
computers, online sources, cameras, environmental sensors, or personnel.
Organize the data: This may involve using a spreadsheet or other software
that can handle statistical information.
Clean the data: This means scrubbing and checking it for duplication,
errors, or incompleteness. This ensures accurate analysis.
Data Analytics | Types | Uses: https://medium.com/@joshimayank7/data-
analytics-d4bda2650b61

Cloud Computing

Cloud computing delivers various services, including servers, storage, databases,

networking, software, analytics, and intelligence, over the internet ("the cloud").
This approach offers faster innovation, flexible resources, and economies of
scale. You typically pay only for the cloud services you use, helping lower
operating costs, run your infrastructure more efficiently, and scale as your
business needs change.

Types of Cloud Computing Services:

Infrastructure as a Service (IaaS): This is the most basic category. With
IaaS, you rent IT infrastructure, including servers, virtual machines (VMs),
storage, networks, and operating systems, from a cloud provider on a pay-
as-you-go basis.
Platform as a Service (PaaS): PaaS refers to cloud-based environments for
developing, testing, delivering, and managing software applications. It
simplifies app creation for developers by eliminating the need to manage
underlying infrastructure like servers, storage, networks, and databases.
Software as a Service (SaaS): SaaS is a method for delivering software
applications over the internet, on-demand, typically through a subscription.
Cloud providers host and manage the software and infrastructure, handling
maintenance like upgrades and security patching. Users access the
application via a web browser on their devices.

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ANALYTICS
Cloud Service Deployment Options

Public Cloud: This is the most common type, where cloud resources are
handled and delivered to users/organizations via the internet by a third-party
provider. The third party provides all hardware and software capabilities.
Advantages: Cost-effective, no separate maintenance charges, high
reliability.

Private Cloud: This is a cloud instance used specifically by an organization. It

can be hosted on a third-party service provider but accessed via a private
network, with hardware and software services exclusive to the organization.
Governments and financial institutions often use this type.

Hybrid Cloud: A hybrid cloud platform offers benefits like increased flexibility,
diverse deployment options, enhanced security and compliance, and
maximizing existing infrastructure. Businesses can easily adjust their on-
premises infrastructure to the public cloud during fluctuating demand without
sharing all their data with third-party data centers. This allows combining public
cloud innovation with keeping sensitive data on-premises to meet compliance
requirements or client needs. Additionally, this approach avoids large capital
expenditures for short-term demand spikes and frees up local resources for
critical data or applications, as companies only pay for temporary resource
usage.

Data security in cloud computing:

https://cdainstitute.ca/john-weigelt-data-security-in-the-age-of-cloud/

Basics of cloud computing:

https://dev.to/mayankcse/basics-of-cloud-2dkl

What is cloud computing:

https://www.youtube.com/watch?v=M988_fsOSWo

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ANALYTICS
Tech trends - 2023

Artificial Intelligence (AI) and Generative AI Advancements

Artificial Intelligence (AI) is at the forefront of technological innovation,

encompassing various applications. AI involves the development of algorithms
and models that enable machines to perform tasks that typically require human
intelligence. Machine learning, a subset of AI, enables systems to learn from
data and improve performance without explicit programming. Natural
Language Processing (NLP) allows machines to understand and respond to
human language, enhancing communication between humans and machines.
These AI advancements find applications in diverse fields, from healthcare and
finance to autonomous vehicles, bringing about transformative changes in how
we work and live.
In recent years, Generative AI has emerged as a significant advancement within
the AI domain. Generative AI refers to systems capable of generating new
content, whether text, images, or other forms, indistinguishable from human-
generated content. This technology, often driven by deep learning models like
OpenAI's GPT-3, has found applications in creative fields, content generation,
and even conversational agents, marking a paradigm shift in AI capabilities.

Quantum Computing

Quantum Computing represents the next frontier in computational power.

Unlike classical computers that use bits to process information in binary (0 or 1),
quantum computers use qubits, which can exist in multiple states
simultaneously due to the principles of quantum mechanics. This allows
quantum computers to perform complex calculations exponentially faster than
traditional computers. While quantum computing is still in its early stages,
researchers anticipate ground-breaking applications, such as solving complex
optimization problems, simulating quantum systems, and revolutionizing
cryptography by creating virtually unhackable systems.

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ANALYTICS
5G Technology

The advent of 5G technology marks a significant leap in wireless connectivity.

The fifth generation of mobile networks promises faster data transfer speeds,
lower latency, and the ability to connect many devices simultaneously. 5G
facilitates the development of smart cities, autonomous vehicles, and the
Internet of Things (IoT). The technology's high data transfer rates enable
seamless streaming, virtual reality experiences, and real-time communication.
The ongoing deployment of 5G networks worldwide is set to reshape how we
interact with technology and leverage connectivity.

Extended Reality (Virtual Reality and Augmented Reality)

Extended Reality (XR) encompasses both Virtual Reality (VR) and Augmented
Reality (AR), creating immersive experiences for users. VR places users in an
entirely virtual environment, often through headsets, providing a sense of
presence in a computer-generated world. AR, on the other hand, overlays digital
information into the real world. XR technologies find applications in gaming,
education, healthcare, and enterprise, enhancing training simulations,
architectural visualization, and entertainment experiences.

Blockchain and Decentralized Finance (DeFi)

Initially created for secure and transparent transactions in cryptocurrencies like

Bitcoin, blockchain technology has evolved into a broader concept with
applications beyond digital currencies. Blockchain operates as a decentralized
and distributed ledger that records transactions across a network of computers.
Decentralized Finance (DeFi) leverages blockchain to recreate traditional
financial services without the need for central authorities. Smart contracts, self-
executing contracts with coded terms, enable automated and secure
transactions in DeFi applications.
Coinbase Learn: A comprehensive resource for learning about cryptocurrencies,
blockchain, and DeFi: https://www.coinbase.com/learn/
https://www.youtube.com/watch?v=SSo_EIwHSd4
https://www.youtube.com/watch?
v=rYQgy8QDEBI&ab_channel=Mrwhosetheboss
Blockchain, explained | MIT Sloan
https://mitsloan.mit.edu/ideas-made-to-matter/blockchain-explained

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ANALYTICS
Edge Computing Evolution

Edge Computing involves processing data closer to the generation source rather
than relying on a centralized cloud infrastructure. This evolution addresses the
need for real-time processing and reduces latency in various applications. Edge
Computing finds applications in IoT devices, autonomous vehicles, and smart
cities. By enabling faster decision-making at the network's edge, Edge
Computing enhances efficiency and responsiveness, particularly when quick
data processing is critical.

Big Data

Big Data refers to the vast volume of structured and unstructured data
generated by organizations, individuals, and devices. Managing and analyzing
big data presents challenges due to its sheer volume, velocity, and variety.
Advanced analytics tools and technologies enable organizations to derive
valuable insights from big data, aiding decision-making, identifying trends, and
predicting future outcomes. Big data applications span various sectors,
including healthcare, finance, marketing, and scientific research.

Data Mining

Data Mining involves extracting valuable patterns and knowledge from large
datasets using computational techniques. It encompasses various methods,
such as clustering, classification, and association rule mining, to uncover
meaningful information hidden within data. Data mining is crucial in business
intelligence, helping organizations identify trends, customer behavior, and
predictive patterns. It is a fundamental process in deriving actionable insights
from complex datasets.

Content Creation by AI
AI-driven content creation uses artificial intelligence algorithms to generate
written or spoken content, such as text, images, or videos. This innovative
application of AI extends to tasks like summarizing articles, composing music, or
generating visual art. Content creation by AI finds utility in diverse fields, from
automating content generation for websites and social media to assisting artists
and writers in their creative processes. Notable examples include language
models like ChatGPT, Bard, and Adobe Firefly, which can produce coherent and
contextually relevant content based on input prompts.

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FAQs

1. Explain the concept of chatbots. Do you happen to be familiar with ChatGPT?

Propose potential use cases and highlight the reasons behind its success.

2. What are some shortcomings of generative AI?

3. What are the advantages and disadvantages of generative AI?

4. What do you think about Industry 4.0?

5. What are the advantages and disadvantages of work-from-home (WFH) and

hybrid work models?

6. Define ERP. Have you encountered one in your professional environment? If

yes, how did it operate, and what improvements would you recommend?

7. Why do you think integrating technology and analytics is crucial in today's

business landscape?

8. Could you provide some practical applications of Blockchain technology?

9. Can you provide an example of a business or industry where the effective use
of analytics and technology has resulted in a competitive advantage?

10. How would you approach a company struggling to adopt new technologies
due to employee resistance?

11. What factors should a company consider When selecting a cloud service
provider? Please describe the relevant parameters.

12. Discuss a specific project or experience where you applied analytics to solve
a complex problem. What were the outcomes?

13. In your opinion, what role does data privacy play in the ethical use of
analytics? How would you address concerns related to data privacy in a business
setting?

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FAQs

14. Given the rapid advancements in technology, how do you stay updated with
the latest trends and innovations in analytics and business technology?

15. If you were to lead a team working on implementing a new analytics tool for
a company, what factors would you consider to ensure a successful
implementation?

16. Describe a situation where you had to make a data-driven decision. What
challenges did you face, and how did you overcome them?

17. How do you see artificial intelligence impacting the business landscape in
the next five years, and what opportunities or challenges do you foresee?

18. Discuss when you had to communicate complex analytical findings to a non-
technical audience. How did you ensure effective communication and
understanding?

19. How can business analytics contribute to strategic decision-making within an

organization?

20. What is SDLC?

21. Considering your interest in technology and analytics, how do you plan to
leverage your MBA education to bridge the gap between business and
technology in your career?

22. What are the current trends in information technology?

23. What is agile? How did agile practices contribute to the project's success, and
what challenges did you encounter?"

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 FINANCE

BY FINOMINA
THE FINANCE CLUB OF IIM UDAIPUR
FINANCE
What is Finance?

Finance is a broad term describing the study and system of money, investments,
and other financial instruments. Bonds, Stocks, Derivatives, and Mutual Funds
are examples of financial instruments.

Finance is classified into:

Public Finance: This includes tax systems, government expenditures, and

budget procedures. The government oversees the allocation of resources,
distribution of income, and stabilization of the economy.
Corporate Finance: Corporate finance involves managing a business's
assets and debts. Calculating whether a project would give considerable
returns on a given investment comes under Corporate Finance.
Personal Finance: It is the proper management of an individual's income
and expenses. Retirement planning is one example of this.
Behavioral Finance: It seeks to understand the emotional, social, and
psychological reasons behind financial decisions. An example would be -
Studying investors' reaction to a lawsuit brought against a company.

What is Accounting?

Accounting could be understood as recording, classifying, summarizing, and

reporting business transactions and economic activity from business operations
over some time to stakeholders such as shareholders, employees, the general
public, or regulators.

Remember this equation:

Assets = Liabilities + Equity

Example: You take a loan of 1 crore; 1 crore gets added to the assets side as
cash, which you received from the lender(s). And one crore gets added to the
liabilities side as a loan you took from the bank. The same goes for all
transactions. The equation is always balanced.

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Domains of Finance Banking

The banking industry handles money, credit, and other monetary exchanges
and offers investment accounts, authentications of stores, and financial records.
Banks utilize these stores to make credits. These advances incorporate home
loans, business credits, and vehicle advances. Business banks offer types of
assistance to private people and organizations. Retail banking gives executives,
people, and families credit, store, and cash.

Web banking offers these types of assistance through the Internet. The area is
additionally called E-banking, internet banking, and net banking. Most banks
presently offer online administrations. Since they have no branches, they can
pass cost reserve funds onto the buyer.

Venture banking discovers financing for companies by starting public stock

contributions or bonds. They additionally encourage consolidations and
acquisitions. The biggest U.S. speculation banks incorporate Bank of America,
Citigroup, Goldman Sachs, J.P. Morgan Chase, and Morgan Stanley.

Insurance

The insurance sector comprises companies that offer risk management

regarding insurance contracts. The insurer will guarantee payment for a
particular future event, and in return, they will charge a premium from the
insured or the policyholder.

Life insurance is a sector with tremendous growth potential – that is how the life
insurance sector is referred to, due to the low insurance penetration and
density in the country among its comparable peers, which is visible with
premium growth at a CAGR of 18% since last year for FY ended 2023 in India.

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Portfolio Management

Portfolio management is managing an individual's investments to maximize

their earnings in a specific time interval. Furthermore, efficient portfolio
management ensures that the risk of the capital invested is reduced to counter
financial or economic risks. Portfolio managers optimize the investment risk,
provide an investment mix, and diversify the portfolio to achieve financial goals.

Principally, portfolio management can be visualized as a SWOT analysis of

various industries and sectors and classifying them according to their associated
risks.

Objectives of portfolio management are as follows:

Capital appreciation
To maximize Returns on Investment (ROI)
Risk optimization

Career Opportunities:

Investment Banks: Investment Bankers, Security Salespeople, traders

Commercial Banks: Loan officer, Branch Manager, Investment Bankers,
traders
Money Management Firms: Portfolio Manager, Security Analyst
Hedge Funds: Portfolio Manager, Security Analyst
Private Equity Firms: Investment Bankers
Real Estate Firms: Financing Specialist, Analyst, Deal Manager

Types of Business:

There are four types of business organizations: Sole Proprietorship, Partnership,

Company, and Limited Liability Company (LLC).

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Sole Proprietorship: A business owned and run by one person for their
benefit. The business's existence is entirely dependent on the owner's
decisions.
Partnership: Refers to a business owned by a minimum of 2 and a
maximum of 50 people. There are two types - General partnerships (do not
require a formal agreement, but all partners' liability is unlimited) and
Limited partnerships (require a formal agreement and partners' debt can be
limited).
Company: It's a separate legal entity from its owners. A private limited
company has a minimum of 2 and a maximum of 200 shareholders. A public
limited company can have as many shareholders as possible.
Limited Liability Company: Similar to a limited partnership, an LLC
provides owners with limited liability while giving some of the income
advantages of a partnership.

A financial market is where people trade financial securities, commodities, etc.

The stock, bond, forex, and derivatives markets are a few examples of the
financial market.

Money Market deals with trading debt instruments like inter-corporate

deposits, certificates of deposits, treasury bonds, commercial papers,
commercial bills, etc. Trading occurs in a very short time in the money market.
Large institutional investors, mutual funds, and commercial banks are money
market participants.

The capital market involves trading financial instruments like equity, public
sector bonds, and mutual funds units. Capital markets are composed of the
suppliers and users of funds. Capital markets are mainly composed of primary
and secondary markets. The stock market and Bond market are the most
common capital markets.

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Forex, also known as F.X. or Foreign exchange market, is an over-the-counter
global marketplace. The foreign exchange market determines the currency's
exchange around the world. Forex is the largest financial market in the world,
which works 24 hours a day. The trade of currency always takes place in pairs.
Hence, one currency's value will be relative to the value of another currency in
the pair. The most liquid trading pair is EUR/USD.

Financial Statements

Financial statements are formal records of the financial activities and position of
a business, person, or other entity. The three primary financial statements are
the income statement, balance sheet, and cash flow statement.

Income Statement shows a business's income and expenditures. It also

indicates whether the business is making a profit or a loss for a given period. It
also provides information about the enterprise's operations, including sales and
the various expenses incurred.

The Balance Sheet shows the position of the business at a particular point in
time. It shows the company's assets, liabilities, and equity. In a balance sheet,
Assets = Liabilities + Owner's Equity.

Cash Flow Statement measures how well a company generates cash to pay its
debt obligations, fund its operating expenses, and fund investments. It helps
stakeholders understand how the company's operations run and where it gets
and spends money. The cash flow statement has three sections that report cash
flow for three different activities - Operating Activities, Investing Activities, and
Financing Activities.

Scope of Finance Function: Investment, Financing, and Dividend Decisions

Investment Decision: Investment decisions are often called Capital

Budgeting or Capital Expenditure (CAPEX) decisions. These decisions create
revenue and profits for the firms.

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Financing Decisions: These decisions have to do with the source of funds. A
corporation can raise money from lenders or shareholders. Overall, the
financing choices available to large corporations are endless, and the related
decisions are financing decisions.
Dividend Decisions: The profits after tax can be distributed to the
shareholders or retained by the firm. These decisions related to the
appropriation of profits after tax are dividend decisions.

IFRS vs. GAAP

GAAP (Generally Accepted Accounting Principles) is a common set of

accepted accounting principles, standards, and procedures that companies and
their accountants must follow when compiling their financial statements.
IFRS (International Financial Reporting Standards) is a set of international
accounting standards that state how particular types of transactions and other
events should be reported in financial statements. IFRS guidelines are less
comprehensive and lack details compared to GAAP.

The International Accounting Standards Board is the independent accounting

standard-setting body of the IFRS Foundation outside the United States.
The Financial Accounting Standards Board is a private, non-profit organization
standard-setting body formed to establish and improve GAAP in the United
States.

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FINANCE

IFRS also recognizes

Only the cost model
Fixed Asset revaluation models
can be used to value
Valuation in addition to cost
fixed assets in GAAP.
models.

Intangible assets are

Intangible assets are valued based on
Intangible Assets
valued at fair value. future economic
benefits.

This does not

This averages the
average the
Earnings per share Individual Interim
Individual Interim
period.
period.

Some
All development developmental costs
Development Cost costs are expensed are expensed, and
out under GAAP. others are
capitalized.

GAAP requires the

splitting of liabilities IFRS does not make
Liabilities Grouping
into current and such a classification.
non- current.

Extraordinary and
Such items come
unusual amounts
Income Statement under income
are shown below net
statements.
income.

Preparation of GAAP prefers a risks- IFRS is in favor of a

Cons F.S. and-rewards model. control model.

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Business Cycle

A business cycle refers to Gross Domestic Product (GDP) fluctuations. It explains

the expansion and contraction of the economy.

Various stages of the Business Cycle are:

Expansion: Expansion is the first stage in the business cycle. This stage
depicts an increase in positive economic indicators like income, output,
employment, and profits.
Peak: The economy reaches its upper saturation point, i.e., peak. The peak
is the second stage of the business cycle. The economic indicators do not
increase any further and are at their highest.
Recession: The recession is the next stage. The demand starts falling
rapidly, and all the positive economic indicators, like income, output,
employment, etc., begin to fall.
Depression: The next stage is Depression, which indicates a commensurate
rise in unemployment. The growth in the economy in this phase continues
to decline.
Trough: In the Trough Stage, there is further decline until the positive
indicators reach their lowest point. It is the negative saturation point for the
economy.
Recovery: After reaching its negative saturation point, the economy comes
to the stage of recovery. The economy has a positive attitude, and positive
indicators have increased.

Initial Public Offering (IPO) is a company's issuance of public shares to raise

capital from public investors. By issuing an IPO, a private company transforms
into a public company. Once a company decides to go public, it gets regulated
by SEBI. Hence, the company has to disclose a few details mandatorily for the
knowledge of investors.

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Follow-on Public Offering (FPO) is the issuance of shares by a company listed
on a stock exchange. The company issues additional shares after an Initial Public
Offering (IPO) to raise more capital to expand or to pay off the debt. Companies
use FPO to diversify their equity base. FPOs are also known as secondary
offerings.

For details of the major IPOs of 2023 Click here.

What is Fundamental & Technical Analysis?

Fundamental analysis refers to the method of analyzing securities by

determining the stock's intrinsic value. It involves analyzing the financial
performance and position of the company. It assesses all the factors that can
influence the stock's value, called fundamentals, which are nothing but financial
statements, management, business concepts, competition, etc. It analyzes the
economy, the industry it belongs to, and the firm itself.
It focuses on past and present data and is relevant for long-term investments.

Technical Analysis refers to the process of analyzing price volume movements.

It predicts the change in the price of a security based on market information. It
determines whether the uptrend or downtrend in price will continue or will
reverse in the future. The main objective of the technical analysis is to identify
the right time to enter or exit the market.
It focuses only on past data and is relevant for short-term investments.

There are two methods for conducting technical analysis:

Understanding Chart Patterns: The chart patterns help in determining the

direction of the trend. A green-colored candlestick shows a bullish trend, while a
red-colored candlestick shows a bearish trend. Chart Patterns include Spinning
Top, Hammer and Hanging Man, Head and Shoulders, Double Top, etc.

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Technical Indicators: These indicators are heuristic or mathematical
calculations based on price, volume, or open interest of security used by traders
who follow technical analysis. They predict as well as confirm the trends.
Examples of Technical Indicators are Simple Moving Average (SMA), Relative
Strength Indicator (RSI), Stochastic Oscillator, Moving Average Convergence
Divergence (MACD), etc.

Shares, Bonds, and a Few Basic Concepts:

Share: It refers to a unit of ownership in the company. A share is a share in the

share capital of a company and includes stock.

Types of Shares

Preference Shares: It carries the following two preferential rights over holders
of equity shares.
Preferential right with respect of dividends at a fixed rate or a fixed amount
Preferential right in respect of repayment of capital in the event of winding
up

Equity Shares: Those not preference shares are known as equity shares.
Members holding equity shares carry voting rights. The rate of dividends is not
fixed.

Primary Market: The primary market is where the bond or new stock is sold
for the first time.

Initial Public Offering: It refers to the process of offering shares of a private

corporation to the public in a new stock issuance.

Share Market/ Stock Market: It refers to a collection of markets and

exchanges where regular activities of buying, selling, and issuing publicly held
companies' shares take place.
Example: SENSEX, NASDAQ, etc.

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Market Capitalization: It refers to the market value of a company's
outstanding shares of stock. It is calculated by multiplying the total number of
the company's outstanding shares by the market price of its share.

Net Worth: Net worth refers to the difference between the assets and liabilities
of the company. It presents a snapshot of the company's current financial
position.

Bonds
It refers to the unit of corporate debt issued by the company. Long-term debt
security enables firms to borrow money for a fixed period at a fixed rate by
multiple lenders.

Coupon: It is the annual interest payment that the bondholder receives from
the date of bond issue till its maturity.

Coupon Rate: It is calculated by dividing the periodic interest payments

received by the bond's face value.

Yield to Maturity: It refers to the total return anticipated on a bond if it is held

until it matures.

Zero-Coupon Bond: It refers to the debt security that does not pay any interest
but trades at a deep discount, offering full face value at maturity. The difference
between the face value and the price of a zero-coupon bond indicates the
investor's return.

Golden Rule of Accounting: Real, Nominal, Personal A/c

There are 3 Golden Rules of Accounting. To understand the three golden rules,
one needs to have an understanding of the three types of accounts, which are:

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1. Real Accounts: These accounts are recorded in the ledger as Assets or
Liabilities. The balances of these accounts are not closed at year-end, and
the balance amount remaining is carried forward to the next year. Ex.
Building a/c of a business
2. Personal Accounts: These are recorded as accounts belonging to
individuals, firms, and associations. Ex. Creditor a/c: creditor of a business
3. Nominal Accounts: Ledger accounts of all incomes, expenses, losses, or
gains. Ex. Interest a/c

Based on the above accounts, there are three golden rules to be followed when
recording any transaction:
#1 For a real a/c: Debit what comes in, credit what goes out
#2 For a personal a/c: Debit the receiver, credit the giver
#3 For a nominal a/c: Debit all expenses and losses, credit all incomes and gains

Discounting

We use discounting to find the present payment values or a stream of payments

to be received in the future. As we know, A dollar is always worth more today
than it would be worth tomorrow if money had a time value. As the discount
rate increases, the risk associated with an investment and its future cash flows
also increases.
Ex. The present value of $110 at the beginning of a year is $100 if the discount
rate is 10% annually.

Time Value of Money

The time Value of Money is a concept that states that the same amount of
money will have a higher value today than in the future. The reason behind
money having higher value is its ability to earn interest. As money can be
deposited in a bank to earn interest or invested in assets (Real Financial) to earn
a return, any amount is worth more the sooner it is received.

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How is TVM calculated?
FV = Future value of money PV = Present value of money i = Interest rate
n = Number of compounding periods per year t = Number of years
Based on these variables, the formula for TVM is: FV = PV x [ 1 + (i / n)](n x t)

Net Present Value (NPV)

Suppose we want to identify whether a project is a good investment

opportunity. The simplest way to do this is by comparing the initial investment
with the cash generated using that investment. If the cash generated using the
investment is more than what we had invested, it is a good opportunity, and vice
versa. Cash received is called cash inflow, and the cash paid is called cash
outflow.
Since cash inflows and outflows occur during different periods, and because of
the time value of money, their value can differ significantly from the amount. We
need to find the present value of these cash flows and then subtract outflows
from inflows.

Net present value (NPV) is the difference between the present value of cash
inflows and the present value of cash outflows over some time. NPV is used in
capital budgeting and investment planning to analyze a projected project's
profitability.

Internal Rate of Return (IRR)

IRR is a measure of an investment's rate of return. The term 'Internal' refers to

the fact that IRR does not consider external factors like inflation, cost of capital,
or financial risks.
Generally, we accept the project if the IRR is more than the Discounting Rate. If
IRR is less than the Discounting Rate, we reject the project.
The net present value becomes zero at the discount rate equal to IRR.
Sometimes, more than one IRR is also possible for an investment opportunity.

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Annuity

An annuity is an equal and equal time interval of cash flows made over a
predetermined period. Annuities can be used for various purposes, but the
most common is providing a steady income for retirees.
The formula for the present value of an ordinary annuity, as opposed to an
annuity due (where the cash flows are made at the end of the year), is below.
(An ordinary annuity pays interest at the end of a particular period rather than
at the beginning, as with an annuity due.)

PV = PMT× {1 - (1 / (1+r)n )} ÷ r
where:
PV = Present value of an annuity stream PMT = Money value of each annuity
payment
r = Interest rate (also known as the discount rate)
n = Number of periods in which payments will be made

Perpetuity

A perpetuity is a security that pays for an infinite amount of time. In Finance,

perpetuity is a constant stream of identical cash flows with no end.
The present value of a perpetuity is calculated as follows: PV = PMT ÷ r
where:
PV = Present value of a perpetuity PMT = Money value of each cash flow
r = Interest rate (also known as discount rate)

Non-Performing Asset (NPA)

A non-performing asset (NPA) is described as a classification for loans or

advances in which the principal amount's interest and/or installment has
remained 'past due for a specified prolonged period. In other words, an asset
(loan or advances made by a bank) is labeled as a non-performing asset when it
ceases to generate income for the lender. Once the borrower has failed to make
interest or principal payments for 90 days, the loan is considered a non-
performing asset.

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NPAs impose financial burdens on the lender; a large number of NPAs over
some time can suggest to regulators that the bank's financial health is at risk.

NPAs may be categorized as substandard assets, doubtful assets, or loss assets

based on the length of time overdue and the likelihood of repayment.
For the quarter ending September 2023, the gross NPAs fell from 3.9% in March
2023 to 3.2% in September 2023. The fall has been across private banks, PSBs,
and foreign banks. For the banking sector as a whole, with PSBs reporting gross
NPAs of 4.4% as of September 2023 compared to 5.2% as of March 2023

NBFC

A Non-Banking Financial Corporation (NBFC), also known as a Non-Bank

Financial Institution (NBFI), offers certain bank-like services but has not been
granted a banking license from the regulator. They are not allowed to accept
demand deposits from the public, and this limitation keeps them outside the
purview of conventional oversight from the financial regulator. There are several
NBFCs, and below is a non-exhaustive list of some of these:

Asset Financing Companies (AFCs)

Housing Finance Companies (HFCs)
Investment Companies (I.C.s)
Loan Companies (L.C.s)
Micro Finance Institutions (MFIs)

Corporate Governance

Refers to the rules, processes, or laws by which an enterprise's business

operates, regulates, or controls. It involves keeping in mind the best interests of
all stakeholders. Corporate governance is based on the 4Ps: People, Process,
Performance, and Purpose. It makes companies accountable and transparent to
minimize expropriation and unfairness for stakeholders.

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FINANCE
Arbitrage

Arbitrage is a type of trade in which a security, currency, or commodity is nearly

simultaneously bought and sold. The purpose is to benefit from the price
difference for the same financial instrument offered on different exchanges.
To know more about Arbitrage and a few compelling examples, Click Here

Diversification

Diversification includes different types of investments in the portfolio, such as

stocks, bonds, real estate, commodities, etc., to mitigate the risk. One should
invest in more than one industry to diversify the portfolio, even for stocks. It will
help hedge against market volatility and reduce the risk to give higher returns in
the long term.

Mutual Funds

A mutual fund professionally manages a well-diversified investment portfolio on

behalf of the investors, and they charge small fees in return. It could be an ideal
investment vehicle for those who do not know how to invest or do not have
enough time to follow market trends regularly. Investors can select a mutual
fund scheme based on their financial goals.

Mergers and Acquisitions

When a company takes over another company, it becomes the new owner,
called an Acquisition. From a legal viewpoint, the target company ceases to exist;
the buyer controls the business. The buyer's stock continues to be traded while
the target company's stock ceases to trade.

A Merger is the voluntary fusion of two companies into one new legal entity. The
firms that agree to merge are roughly equal in size, customers, scale of
operations, etc. Mergers are mostly done to gain market share, reduce
operational costs, expand to new territories, unite common products, and
increase profits - all of which should benefit the firms' shareholders.

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Reserve Bank of India (RBI)

RBI is India's central bank, the only bank authorized to plan, prepare, and
implement monetary policy for India. The primary objective of RBI is to maintain
price stability by keeping inflation in check. It also ensures the consistent growth
of the economy while making decisions. RBI issues currency and also exchanges
or destroys currency not fit for circulation. RBI is known as the 'bank of all banks'
because it regulates all banks in India.

Security Exchange Commission of India (SEBI)

SEBI, also known as the Security Exchange Commission of India, is the regulator
and controller of India's capital markets. The stock market, Money market, etc.,
fall under the bracket of the capital market. SEBI primarily works for the
investors' best interest to maintain their confidence in the market by ensuring
many checks and balances to maintain transparency. SEBI was given statutory
power under the SEBI Act, 1992, on 30 January 1992.

Basel Norms

Basel Norms are the international standards issued by the Basel Committee
that aim to deal with banking regulations and were established to strengthen
the banking system worldwide. The committee was established in 1974 and
included central bank governors of ten countries to solve the issues regarding
the regulatory framework of financial institutions.

Basel I

Basel is the first accord issued by the Basel Committee on Banking Supervision
(BCBS) in Basel, Switzerland. The accords were first established in 1988 and deal
with the minimum capital requirements for banks. The main aim of these norms
is to minimize the risks associated with financial institutions, which include the
credit risks that occur when a borrower from the bank cannot repay his loan.

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Basel II

The Basel II accord was first published in June 2004 and has devised rules
regarding cash that have to be maintained by financial institutions to
compensate for their operations as well as other liquidity risks. This norm is the
second in the series of accords issued by the Basel Committee on Banking
Supervision (BCBS). The Basel II norms were added to the Basel I norms to
accommodate deeper models for calculating regulatory capital. These norms
suggested mandating the financial institutions to hold more capital,
corresponding to the risks associated with the institution.

The three crucial pillars of Basel II are:

Minimum Capital Requirement: It deals with the regulatory capital for the
bank, which will compensate for the credit risk, market risk, and regulatory
risk associated with the bank.
Supervisory review: This pillar works as a regulator for pillar I and provides
a framework to deal with systematic, liquidity, and legal risks associated with
the bank.
Market discipline: It mandates the institution to provide information
relating to the institution to the investors and the various stakeholders. This
pillar helps them to establish the capital sufficiency of the financial
institution.

Basel III

These norms were published in the aftermath of the financial crisis of 2008.
These were first published in November 2010 and were scheduled to be
introduced in 2013; however, it was extended to 31 March 2019. The accord
deals with the problems faced during the financial crisis. It aims to strengthen
the bank's capital requirements by increasing its liquidity and decreasing the
financial leverage associated with the banks.

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Topics in Finance

1. Role of AI/ML in Finance

2. Bank Mergers
3. The anticipation of the world towards the turnaround of global financial
markets
4. How can the MSME sector evolve in these recessionary conditions?
5. The exploding use of AI in the investment and banking sector
6. The implication of US-China trade wars on the macroeconomic growth of
the Indian economy
7. Impact of Covid-19 on investment decisions
8. Steps the Indian government is taking to combat an economic slowdown
9. Are the Insolvency and Bankruptcy Code, 2016 useful reform to recover
back bad loans?
10. ESG Investing
11. Structural changes in the Indian banking system to tackle the problem of
growing NPAs.
12. A recent moratorium was implemented on different banks and the impact.

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PI Questions

1. What are the various capital budgeting methods?

2. Explain NPV and IRR.
3. Can we have multiple IRRs? When do we have multiple IRRs?
4. Which method is better to make an investment decision - NPV or IRR?
5. What do you mean by the financial statements? What are its types? How are
they interlinked with each other? State the treatment of prepaid expenses in
each of the financial statements.
6. What is the company's market cap? Is it the same as the net worth of the
company?
7. What is depreciation? Why do we calculate it? What is the rate of
depreciation on furniture? Compute the depreciation on the chair you are
sitting on by both methods.
8. If you are to invest in a company's share, what are the three things you will
check in their books of accounts?
9. What is the importance of the different financial statements? Which,
according to you, is the most important and why?
10. How is Corporate Income double-taxed?
11. How will you decide which project to Finance?
12. Extempore on Budget
13. What is GDP (Purchasing Power Parity)
14. Difference between cost, financial, and management accounting.
15. What is the difference between operating leverage and financial leverage?
16. What is the difference between a company's balance sheet and a bank?
17. What is the difference between Depreciation and Amortization?

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Preparation Tips or Potential Interview Questions:

1. Read financial statements from the company's annual reports in which you
were working if you have work experience.
2. Pick any sector and thoroughly prepare on the growth, investments, key
financial parameters used in the sector analysis, and recent current affairs.
3. Be clear with the basic concepts, especially if you have a
commerce/economics background. Financial statements, capital budgeting
methods, and financial ratios are important topics. Be clear with
depreciation, amortization, tangible and intangible assets, and other basic
accounting terms. You should be able to answer everything if your basics
are clear.
4. Must study Financial Crisis 2008 and recent M&A deals in India.
5. If you are sure that Finance is the domain you would like to choose, please
be sure to be clear about various career opportunities in Finance and your
preference among them.
6. Have a basic understanding of SENSEX, NIFTY, and stock markets.
7. How did the COVID-19 pandemic boost monopolization and market power?

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 ECONOMICS

BY PIE
THE ECONOMICS CLUB OF IIM UDAIPUR
ECONOMICS
What is Economics?

Economics is a social science that focuses on the production, distribution, and

consumption of goods and services and analyses the choices that individuals,
businesses, governments, and nations make to allocate resources. It studies
how people allocate scarce resources individually and collectively for
production, distribution, and consumption.

There are two branches of economics: Microeconomics and Macroeconomics.

Microeconomics: This branch studies the decisions of individuals and firms to

allocate resources for production, exchange, and consumption.

Macroeconomics: Macroeconomics is the branch of economics that deals with

the structure, performance, behavior, and decision-making of the whole, or
aggregate, economy.

Importance of Economics in MBA

Economics is the study of what drives human behavior, which leads to decisions
made in times of affliction or success. Using scientific methods, economics helps
allocate scarce resources to ensure efficiency in today’s world. It is of special
importance to business students because businesses rely on economics for
product research and development, marketing, purchase and resource
allocation, and many other strategic decision-making strategies. Understanding
these is vital for any business to operate efficiently, drive out competitors, and
succeed. In short, studying economics develops your competencies and
transferable skills, such as critical and analytical thinking, problem-solving,
research, numeracy, and communication.

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Types of economies

Capitalist Economy: It is the economy where the decisions about what to

produce, how much to produce, and the price to sell are solely taken by the
market or the private enterprises in the system, and the state has no economic
role. This concept originated in the famous work of Adam Smith- The Wealth of
Nations (1776).

State Economy: It is the economy where the state solely makes decisions
regarding production, distribution, supply, and price.

Mixed Economy: It is an economy where the state controls some elements, and
the market regulates the rest. In other words, it combines the capitalist
economy and the state economy.

Demand, Supply, and Equilibrium

Demand curve: It represents the relationship between the quantity of goods

the consumers are willing to buy and the price.
Influencing factors: Income of the consumer, Price of the good, Price of
other goods, Tastes and Preferences of consumers.

Supply curve: It represents the relationship between the quantity of goods that
producers are willing to sell and the price of the goods.
Influencing factors: Production costs (e.g., raw materials and labor costs),
technological progress, the level of competition and number of
sellers/producers, and regulations.

Equilibrium: It is the state in which market supply and demand balance each
other, and as a result, prices become stable. Generally, an over-supply of goods
or services causes prices to go down, which results in higher demand, while an
under-supply or shortage causes prices to go up, resulting in less demand. The
balancing effect of supply and demand results in a state of equilibrium.

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What is Money?

Money is anything that can perform the following functions:

medium of exchange
store of value
unit of account
standard of deferred payment

National Income and Related Terms

National Income: National Income is the monetary value of all the final services
and goods produced in an economy during a given period. There are four ways
to calculate a country's income: GDP, NDP, GNP, and NNP, also a subject in
‘National Income Accounting’.

GDP: Gross Domestic Product (GDP) is the value of all the final goods and
services produced within the nation's boundary during one year. GDP is one of
the primary indicators used to gauge the health of a country's economy.
One of the ways to calculate GDP is by expenditure method:
GDP= C+ I +G + NX Where,
C: all private consumption or consumer spending in a nation's economy
G: the sum of government spending.
I: the sum of all the country's business's spending on capital
NX: the nation's total net exports, calculated as total exports minus total
imports. (NX = Exports- Imports)

NDP: Net Domestic Product (NDP) is the GDP minus the depreciation of the
goods and services produced.

GNP: Gross National Product is the summation of a nation's GDP and the
nation's income from outside of the nation. GNP indicates both the quantitative
and qualitative aspects of the economy.

NNP: Net National Product (NNP) is the GNP minus the depreciation of the
economy. This is the National Income of the Nation.

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Real v/s Nominal GDP

The main difference between real and nominal values is that real values are
adjusted for inflation while nominal values are not. Generally, for a country with
positive inflation, nominal GDP will often appear higher than real GDP.
Nominal GDP = Pt * Qt
P refers to the price, Q is the quantity, and t indicates the year (usually the
current year).
Real GDP = Pb * Qt
Where b denotes the base year.

Price fluctuations and terms

Inflation: Inflation is the quantitative measure of an increase in the general

price level of goods and services, decreasing the purchasing power per currency
unit.

Hyperinflation: It refers to unusually rapid inflation. This can lead to a nation's

monetary system breakdown in extreme cases.

Deflation: Deflation is a decrease in the general price level of goods and

services. Deflation occurs when the inflation rate falls below 0%.

Stagflation: Stagflation is the situation of an economy when inflation and

unemployment are at higher levels that are opposite to the conventional
situation. The conventional belief is that a trade-off exists between inflation and
the unemployment rate, according to the Phillips Curve.

GDP Deflator: It is the measure of price behavior. It is the ratio of GDP at its
current price and GDP at a constant price, i.e., Nominal GDP to Real GDP

Recession: This is a period during which aggregate output declines. Two

consecutive quarters of decrease in output signal a recession.

Depression: A prolonged and deep recession becomes a depression.

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ECONOMICS
Types of Policies

Fiscal Policies: The government of a country uses fiscal policies to control its
revenues and expenditures to achieve economic objectives. The two principal
instruments of Fiscal policy are taxation and government spending. The changes
in the above two components are expected to bring out a difference in the
aggregate demand, savings, investments, and income distribution. Fiscal policy
can be contractionary or expansionary in nature.

Monetary policies: A country's Central Bank uses monetary policy to control

the money supply, often targeting an inflation rate or interest rate to ensure
price stability and general trust in the currency. Monetary policy is maintained
by changing the interest rate, or the money banks must keep in the vault.
Monetary policy is can either be expansionary or contractionary, where an
expansionary policy increases the total supply of money in the economy more
rapidly than usual, and a contractionary policy expands the money supply more
slowly than usual or even shrinks it.

Monetary Policy Tools:

Cash Reserve Ratio (CRR): It refers to the ratio of demand deposits, time
deposits, and cash-on-hand that commercial banks must maintain with RBI.
Lowering CRR will leave the banks with excess reserves for making loans
and would, therefore, increase the money supply.
Statutory Liquidity Ratio (SLR): This refers to the ratio of demand deposits
and time deposits that commercial banks must maintain in cash, gold, or
government securities. Like CRR, it determines how much of their deposits
commercial banks will have for making loans.
Repo Rate: Repo rate is the rate at which the central bank of a country
(Reserve Bank of India in the case of India) lends money to commercial
banks in case of any shortfall of funds. The repo rate is used by monetary
authorities to control inflation. In the event of inflation, central banks
increase the repo rate, which acts as a disincentive for banks to borrow from
the central bank. This ultimately reduces the money supply in the economy
and thus helps arrest inflation.

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ECONOMICS
Reverse Repo Rate: Reverse repo rate is the rate at which a country's
central bank borrows money from commercial banks within the country. It is
a monetary policy instrument that can be used to control the money supply
in the country. An increase in the reverse repo rate means that commercial
banks will get more incentives to park their funds with the RBI, thereby
decreasing the money supply in the market.
Bank Rate: This is the rate at which RBI lends money to banks or financial
institutions. The Bank rate signals RBI's long-term view of the economy and
outlook for interest rates. If the bank rates were to increase, banks would
increase lending rates to their customers to maintain their profit margins.
Open Market Operations: It refers to the selling and purchasing of
treasury bills and government securities by any country's central bank to
regulate the money supply in the economy.

Various Policy Rates by RBI (as of 10 January 2024)

SLR -18%
CRR - 4.5%
Repo Rate - 6.5%
Reverse Repo Rate - 3.35%
Marginal Standing Facility Rate - 6.75%
Bank Rate - 5.15%
Standing Deposit Facility Rate - 6.25%

Taxes

Direct Taxes: As the name suggests, these are taxes directly paid to the
government by the taxpayer. It is a tax directly applied to individuals and
organizations by the government, e.g., income tax, corporation tax, wealth tax,
etc. A direct tax cannot be shifted to another individual or entity. The individual
or organization upon which the tax is levied is responsible for fulfilling the tax
payment.

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ECONOMICS
Indirect Taxes: These are applied to manufacturing or selling goods and
services. These are initially paid to the government by an intermediary, who
then adds the amount of the tax paid to the value of the goods/services and
passes on the total amount to the end user. It can also be defined as a tax that
increases the price of a good so that consumers are paying the tax by paying
more for the products. Examples are sales tax, service tax, excise duty, etc.
Unlike direct taxes, indirect taxes can be shifted from one taxpayer to another.

Deficit

Fiscal Deficit: It is an economic phenomenon where a government's total

expenditures exceed the revenue that it generates (excluding money from
borrowings). Deficit differs from debt, which is an accumulation of yearly
deficits. The components of fiscal deficit are:
Revenue: It includes the revenue collected from taxes imposed by the
central government, such as corporation tax, customs duties, excise duties,
GST, and other tax-related income. It also includes taxable income from
sources like interest receipts, grants in aid, dividends, and receipts from
Union Territories.
Expenditure: This includes the funds allocated by the government for
various purposes, including pension payments, salaries, infrastructure
development, healthcare, and other areas outlined in the budget. It reflects
the government’s spending patterns and priorities.

Primary Deficit: It is an amount by which a government's total expenditure

exceeds its total revenue, excluding interest payments on its debt.
Primary Deficit = Fiscal Deficit— Interest Payment
The total borrowing requirement of the government includes the interest
commitments on accumulated debts. The primary deficit reflects the extent to
which such interest commitments have compelled the government to borrow in
the current period.

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ECONOMICS
GST

The Goods and Services Tax (GST) is a comprehensive tax levy on the
manufacture, sale, and consumption of goods and services at a national level. A
tax credit mechanism collects this tax on value-added goods and services at
each stage of sale or purchase in the supply chain. The system allows the set-off
of GST paid on the procurement of goods and services against the GST, payable
on the supply of goods or services. However, the end consumer bears this tax as
he is the last person in the supply chain.
GST will likely improve tax collections and boost India's economic development
by breaking tax barriers between States and integrating India through a uniform
tax rate. (Source: http://gstindia.com/)

Balance of Payments (BOP)

The Balance of Payments shows the country’s transactions with the rest of the
world. It notes inflows and outflows of money and categorizes them into
different sections. The balance of payments, also known as the balance of
international payments, encompasses all transactions between a country's
residents and non-residents involving goods, services, and income; financial
claims on and liabilities to the rest of the world; and transfers such as gifts. The
different sections of the Balance of Payments are:

Current Account Balance of Payments: It measures transactions for

goods and services. It measures goods, services, and investment income
inflow and outflow. The current account comprises the trade balance (which
is a trade in goods) and the balance of trade in services. The main
components of the current account are:
1. Trade in goods (visible balance)
2. Trade in services (invisible credit), e.g., insurance and services
3. Investment incomes, e.g., dividends, interest
4. Net transfers, e.g., remittances from abroad, international aid

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ECONOMICS
Current Account Deficit: A measurement of a country's trade in which the
value of goods and services it imports exceeds the value of goods and
services it exports. The current account includes net income, such as
interest and dividends, and transfers, such as foreign aid. However, these
components comprise a smaller percentage of the current account than
exports and imports. A current account deficit represents negative net sales
abroad. Developed countries like the United States often run current
account deficits, while emerging economies often run account surpluses.

Financial Account (Capital) Balance of Payments: The capital account of the

balance of payments measures the outflow and inflow of capital into the
economy. It considers the movement of short-term and long-term capital and
loan repayments. This includes:
1. Foreign direct investment
2. Purchase of securities by investors
3. Loans by international financial institutions in a floating exchange rate
A surplus must match a Current Account deficit in the Capital Account.

Balance of Trade
The difference between a country's imports and exports is called the balance of
Trade. The balance of trade is the largest component of a country's balance of
payments. Debit items include imports, foreign aid, domestic spending, and
domestic investments abroad. Credit items include exports, foreign spending in
the domestic economy, and foreign investments in the domestic economy. A
country has a trade deficit if it imports more than it exports; the opposite
scenario is a trade surplus.

Foreign Direct Investment (FDI)

An investment made by a company or entity based in one country into a
company or entity based in another country. The investing company may make
its overseas investment in several ways: setting up a subsidiary or associate
company in a foreign country or acquiring shares of an overseas company. An
investing company may invest overseas in several ways - either by setting up a
subsidiary or associate company in a foreign country, acquiring shares of an
overseas company, or through a merger or joint venture.

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ECONOMICS
Important Personalities
Shaktikanta Das: RBI Governor
Nirmala Sitharaman: Minister of Finance and Corporate Affairs
Piyush Goyal: Minister of Commerce and Industry
Narayan Tatu Rane: Minister of Micro, Small and Medium Enterprises
Ashwini Vaishnaw: Minister of Railways, Communications, Electronics, and
Information Technology
Raj Kumar Singh: Minister of Power, New and Renewable Energy
Claudia Goldin: Nobel Prize in Economics (2023)
Abhijit Banerjee: Nobel Prize in Economics (2019)
Amartya Sen: Nobel Prize in Economics (1998)
Adam Smith: Father of Modern Economics
John Keynes: Father of Macroeconomics

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INTERVIEW TOPICS

BY DHRUVA
THE HR CLUB OF IIM UDAIPUR
INTERVIEW TOPICS
1. Global Economic Trends:

The world economy is constantly in flux, with factors like trade disputes,
geopolitical tensions, and technological advancements creating a dynamic
landscape. Understanding these trends is vital for businesses to navigate risks
and opportunities. For MBA aspirants, grasping these concepts is key to
formulating global strategies.
Further reading on IMF: (https://www.imf.org/en/Publications/WEO)

2. Impact of COVID-19 on Businesses:

The pandemic has catalyzed change, forcing businesses to pivot and innovate.
Remote work, e-commerce, and digital transformation have accelerated, and
understanding these shifts is crucial for emerging business leaders.
McKinsey insights on COVID-19:
(https://www.mckinsey.com/business-functions/strategy-and-corporate-
finance/our-insights/the-impact-of-covid-19-on-future-of-organizations)

3. Sustainable Business Practices:

As environmental concerns become more pressing, sustainable business

practices are transitioning from a "nice-to-have" to a "must-have." Companies
are integrating green initiatives into their core strategies, affecting everything
from supply chain operations to product development.
Harvard Business Review on Sustainability
(https://hbr.org/2020/01/what-sustainable-business-looks-like)

4. Digital Transformation in Companies:

Digital transformation is reshaping industries by integrating technology into all

areas of business. For an MBA aspirant, understanding how technologies like AI
and Big Data drive business efficiency and innovation is crucial.
Deloitte insights on digital transformation:
(https://www2.deloitte.com/us/en/insights/focus/tech-trends.html)

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INTERVIEW TOPICS
5. Innovations in Financial Technology (Fintech):

Fintech is disrupting traditional financial services, offering new ways to lend,

save, and pay. For future business leaders, understanding these innovations is
key to the evolution of financial services.
Forbes on fintech predictions:
(https://www.forbes.com/sites/ronshevlin/2020/02/24/top-10-fintech-
predictions-for-2024/)

6. Rise of the Gig Economy:

The gig economy is redefining the concept of work, emphasizing flexible hours
and autonomous employment. This shift presents new challenges and
opportunities for labor markets and organizational structures.
Brookings on the gig economy:
(https://www.brookings.edu/research/the-gig-economy-current-knowledge-and-
open-issues/)

7. Corporate Social Responsibility (CSR):

Today's consumers and employees expect companies to act responsibly. This

means not only providing quality products and services but also operating in a
way that is ethical and sustainable.
Investopedia on CSR:
(https://www.investopedia.com/terms/c/corp-social-responsibility.asp)

8. Data Privacy and Cybersecurity:

In our digital world, data privacy and cybersecurity are increasingly critical.
Businesses must navigate the complexities of protecting customer data while
harnessing its value.
Cisco on cybersecurity:
(https://www.cisco.com/c/en/us/products/security/what-is-cybersecurity.html)

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INTERVIEW TOPICS
9. Trade Agreements and Globalization:

Trade agreements shape the flow of goods and services across borders,
impacting economies and industries. MBA candidates need to understand how
these agreements influence global business practices.

10. Women in Leadership:

Despite progress, women remain underrepresented in leadership roles.

Exploring the barriers and strategies for increasing gender diversity in the C-
suite is a crucial topic for discussion.
Catalyst on women in leadership:
(https://www.catalyst.org/research/women-in-management/)

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INTERVIEW TOPICS
Some other topics:

How has the COVID-19 pandemic reshaped the global economy and the role
of remote work?
Discuss the implications of the recent US-Iran conflict on international trade
and oil prices.
What are the major points of the Union Budget 2022, and how might they
affect the Indian economy?
Explain the significance of the LIC IPO and its impact on the Indian stock
market.
Analyze the economic and political consequences of the abrogation of
Article 370 in India.
Discuss the rise of gig economy and its impact on traditional employment
models.
Evaluate the current state of the Indian banking sector in light of the recent
bank fraud cases.
How do mergers and acquisitions, like the Zomato-Uber Eats deal, reshape
industry competition?
What are the strategic implications of India opting out of the RCEP
agreement?
Can you explain the concept of a cashless economy and India's readiness for
this transition?
How does Artificial Intelligence (AI) integration in workplaces influence job
roles and skills requirements?
Assess the current trends in upskilling and digital education for remote
workforces.
What is the role of corporate social responsibility (CSR) in today’s business
environment?
Explain the economic rationale behind India's "neighborhood first" foreign
policy.
Discuss the strategic importance of Air India and the implications of its
potential privatization.

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INTERVIEW TOPICS
How has the role of HR evolved in the post-COVID world, especially in terms
of employee well-being and performance?
What are the potential benefits and risks associated with the
implementation of 5G technology in India?
How does climate change pose a threat to global economic stability and
what measures are being taken to mitigate it?
Discuss the challenges and opportunities presented by Brexit for Indian
businesses.
Analyze the significance of data privacy and cybersecurity in the current
digital era.
What are the economic effects of international trade wars, especially
between the US and China?
Discuss the impact of electric vehicles (EVs) on the automobile industry and
environment.
Explain the current state of India's agriculture sector and the impact of
recent farm bills.
How does the rising trend of social entrepreneurship contribute to
sustainable development?
What role does the World Trade Organization (WTO) play in regulating
international trade disputes?
Evaluate the implications of the current inflation rate on the monetary
policies of India.
Discuss the concept of Universal Basic Income (UBI) and its feasibility in the
Indian context.
How are startups leveraging fintech to disrupt traditional banking models?
What is the current status of women's empowerment in corporate India?
Assess the impact of digital currencies and blockchain technology on the
financial sector?

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INTERVIEW TOPICS
PI Questions

Why do you want to pursue an MBA now?

What are your short-term and long-term career goals?
How will an MBA from a B-school help you achieve those goals?
What specific skills or knowledge are you hoping to gain at a B-school?
Why should we choose you over other applicants with similar profiles?
Tell me about your most significant professional accomplishment.
Describe a time you faced a major challenge at work and how you overcame
it.
How has your prior experience prepared you for the rigours of an MBA
program?
Can you give an example of your leadership skills in action?
Tell me about a time you had to work effectively in a team.
Analyze a recent business news story and discuss its implications.
Explain the economic forces driving a specific industry.
Evaluate the financial health of a publicly traded company.
How would you approach developing a marketing strategy for a new
product?
Consider a hypothetical business dilemma and propose a solution.
Describe your strengths and weaknesses.
How do you handle pressure and deadlines?
Tell me about a time you had to learn a new skill quickly.
How would you contribute to the [School Name] community?
What are your hobbies and interests outside of work?
What do you know about this B-school’s unique strengths and programs?
Why are you interested in [Specialization]?
How would you integrate into the social and academic life at [School Name]?
Do you have questions for us about the program or admissions process?
Tell us about your career aspirations after graduation.
If you could have dinner with any three people, who would they be and
why?
What is your biggest regret?
Tell me about a time you made a mistake and how you learned from it.
What is your favourite book or movie, and why?

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INTERVIEW TOPICS
Describe your ideal work environment.
Have you applied to other business schools?
What are your plans for after graduation?
What are your salary expectations?
Do you have any ethical concerns about the business world?
For entrepreneurship: Describe your entrepreneurial experience and vision.
Tell me about a time you had to deal with a difficult client or colleague.
Describe a situation where you had to persuade others to accept your point
of view.
How do you handle conflict in a team setting?
Give an example of a time you demonstrated creativity and innovation.
Can you describe a situation where you exceeded expectations for a
project?
Tell me something about yourself in brief.
Tell me about your background.
What are your strengths and weaknesses?
How did Covid-19 affect your life?
How did you utilize your time during the lockdown?
You have changed jobs/jumped ship too many times already. Why so?
What is your greatest fear?
If I call up your current or previous reporting manager, what will their
opinion be about you?
What was your worst argument? How did you resolve it?
Did you ever have a conflict with your current/previous boss or professor?
What did you do in the last year to improve your knowledge?
Explain the difference between group and team. Are you a team player?
What is the most difficult thing that you have ever accomplished?
What is the difference between hard work and smart work?
Where do you see yourself in 5 years?
On a scale of 1 to 10, how would you rate yourself as a leader?
Tell me about your short-term and long-term goals.
What motivates you?
What are you passionate about?
What are your biggest achievements to date?
What has been one of your failures, and what’s learning?

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HR Trends of 2024

Every passing year brings new challenges, advancements in technology, shifts in

the workforce, and evolving perspectives to address emerging issues. Despite
the notable productivity of 2023, it was not devoid of challenges, such as AI
encroaching on job roles and economic slowdowns leading to layoffs and cost-
saving measures. While these obstacles are inherent in business operations, the
linchpin remains the employees.

https://www.peoplematters.in/article/hr-technology/capgemini-to-amagi-
industry-leaders-reveal-major-hr-tech-trends-of-2024-39877

In the coming year, human resources (HR) functions are expected to integrate
generative artificial intelligence (GenAI), invest in technology enhancing the
employee experience, and incorporate advanced predictive analytics and skills
technologies, as indicated by HR industry analysts, practitioners, and thought
leaders interviewed by SHRM Online. HR leaders are anticipated to embrace
technologies that not only enhance regulatory compliance but also contribute to
making more effective and quicker talent decisions, ultimately redefining how
work is approached within their organizations.

https://www.shrm.org/topics-tools/news/technology/hr-tech-trends-2024

The swift utilization of Generative AI, the rise of a combined workforce

consisting of both humans and digital workers, and the growing apprehension
among employees about becoming obsolete (FOBO) collectively affirm the
assertion of Intel co-founder Gordon Moore (the originator of Moore's Law) that,
at any given moment, "change has never been this fast and will never be this
slow ever again." In 2024, successful strategies will be characterized by
resilience, agility, and the adoption of a "test and learn approach."

https://www.forbes.com/sites/jeannemeister/2024/01/04/the-top-ten-hr-trends-
that-matter-most-in-2024/?sh=2a77bb69e747

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INTERVIEW TOPICS
In 2023, significant trends brought about transformative changes in work
environments, influenced by the persistent pandemic, the prevalence of hybrid
work models, and the rapid pace of digital transformation. The year 2024 is
expected to sustain this trajectory, ushering in even more profound shifts that
will impact the way we work, collaborate, and lead. Within this evolving
landscape, HR is poised to play a crucial role in ensuring organizational success
by focusing on strategic priorities that prioritize both employee well-being and
performance.

https://hrsea.economictimes.indiatimes.com/news/talent-
management/navigating-the-three-key-priorities-for-hr-in-2024/106645801

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GENERAL AWARENESS

BY PUBLIC POLICY GROUP

OF IIM UDAIPUR
GENERAL AWARENESS
RBI’s Financial Stability Report (FSR) – December 2023: Key
Highlights

Global Economic Challenges

Slow growth, high public debt, economic fragmentation, and geopolitical
conflicts pose global economic challenges.

Resilience of the Indian Economy

Indian economy remains resilient amidst global challenges.
Strong macroeconomic fundamentals, healthy financial institutions,
moderate inflation, improved external sector, and fiscal consolidation
contribute to resilience.

Commercial Banks’ Health (as of September 2023)

SCBs exhibit strength with CRAR of 16.8% and CET1 ratio of 13.7%.
GNPA ratio at a multi-year low of 3.2%, NNPA at 0.8%.

Macro Stress Tests (Projected for September 2024)

SCBs project system-level CRAR of 14.8%, 13.5%, and 12.2% under baseline,
medium, and severe stress scenarios.

Non-Banking Financial Companies (NBFCs) Health (as of September 2023)

NBFC sector resilience improves with CRAR of 27.6%, GNPA ratio at 4.6%,
and RoA at 2.9%.

Credit and Deposit Growth

Robust credit and accelerating deposit growth in the Indian financial system.
NBFCs significantly contribute to credit growth, especially in personal and
industrial loans, with improved asset quality.

Concerns and Contagion Risks in NBFC Sector

Higher assessed risks in NBFC sector, with potential contagion risks due to
increased inter-bank exposure.
Risk weight adjustments in retail loan categories may impact NBFC credit
growth.

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Overall System Stability
Indian financial system, while stable, faces increased global uncertainty.
Continuous monitoring is recommended for detecting undue risk build-up.
Emphasis on prudent management of exposures and building financial
buffers to address potential challenges.

RBI Approves IDFC-IDFC First Bank Merger

RBI Approval for Reverse Merger

IDFC Ltd granted RBI approval for a reverse merger with IDFC First Bank.
“No Objection" was received on December 26, 2023.

Composite Scheme Details

Involves IDFC FHCL merging with IDFC First, followed by IDFC's merger into
IDFC First Bank Ltd.
Subject to statutory, regulatory, NCLT, shareholder, and creditor approvals.

Share Exchange Ratio

The proposed ratio is 155 shares for every 100 IDFC shares, both with a face
value of Rs 10 each.

Book Value Impact

Post-merger, IDFC First Bank's standalone book value per share to increase
by 4.9% (as of March 2023).

Ownership Structure
Merged IDFC First Bank to have no promoter entity, fully owned by
institutional and public shareholders, similar to HDFC Bank.

IDFC Background and Transformation

IDFC, an infra lender since 1997, obtained RBI approval for a bank in April
2014.
Launched IDFC Bank in October 2015, faced challenges in banking sector
presence. Took over Capital First in December 2018, rebranded as IDFC First
Bank, becoming a full-service universal bank.

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GENERAL AWARENESS
RBI Monetary Policy Committee(MPC) Meeting Highlights –
December 2023

Repo Rate Status

Unchanged at 6.5% in the latest RBI MPC meeting, marking the fifth
consecutive meeting maintaining the status quo.

GDP and Inflation Projections (FY 2023-24)

GDP growth is projected at 7%.
Inflation is anticipated at 5.4%, with Q3 at 5.6% and Q4 at 5.2%.

MPC's Vigilant Stance

5 out of 6 MPC members voted to withdraw accommodation.
Ready to take necessary actions to address emerging economic scenarios.

Liquidity Measures and UPI Limits

Reversal of liquidity facilities under SDF and MSF allowed on weekends and
holidays.
UPI limit was raised from Rs 1 lakh to Rs 5 lakh per transaction for hospitals
and educational institutions.

Enhancements in Digital Transactions

E-mandate limit for recurring online transactions increased from Rs 15,000
to Rs 1 lakh.
Proposal for a fintech repository to understand the growing fintech
ecosystem.

Regulatory Framework for Digital Lending

Establishment of a regulatory framework for web aggregation of loan
products for improved customer-centricity and transparency.

Other Key Highlights

Net FPI inflows at $24.9 billion.
The central bank reduced the balance sheet size to 21.6% by December 1,
2023. CPI inflation is projected at 5.4% for FY 2023-24.

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GENERAL AWARENESS
Policy Rates at a Glance
Repo Rate: 6.50%
Standing Deposit Facility Rate: 6.25%
Marginal Standing Facility Rate: 6.75%
Bank Rate: 6.75%
Fixed Reverse Repo Rate: 3.35%

Statutory Ratios
CRR: 4.50%
SLR: 18%

PMI Manufacturing Hits 18-Month Low at 54.9 in December Amid

Festival Demand Slowdown

HSBC India Manufacturing PMI (December)

Dropped to 54.9, an 18-month low from November's 56, indicating a
slowdown.

Sector Status
The manufacturing sector remains in expansion for the 30th consecutive
month (index above 50), despite the softer pace of growth.

Business Confidence
Despite softer increases in orders and output, business confidence for the
upcoming year strengthened.

Factors Influencing Growth (December)

New business gains, favorable market conditions, fairs, and expositions led
to a sharp increase in manufacturing.

International Orders
21st consecutive increase in international order receipts for Indian goods
producers.
Gains from clients in Asia, Europe, and North America.

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GENERAL AWARENESS
Challenges
Growth is hampered by fading demand for certain products, marking the
slowest expansion pace since October 2022.

Inflation and Costs

Purchasing costs increased, particularly in chemicals, paper, and textiles.
Despite inflation, it remained negligible compared to historical standards.

Record FPI Purchases Drive Indian Equities to All-Time Highs in

December

Historic FPI Acquisitions (December)

According to National Securities Depository data, reached 661.35 billion
rupees ($8 billion).
Propelled Nifty 50 and Sensex to fresh record highs.

Factors Driving FPI Interest

Robust Economic Indicators: Faster-than-expected quarterly GDP growth
led to an upward revision in fiscal 2024 growth forecast by the RBI.
Policy Continuity: State election results signaled policy continuity in 2024,
boosting positive sentiment.
Global Economic Conditions: Expectations of moderating global inflation
and interest rates in 2024 increased India’s attractiveness for FPIs.

Market Impact
Nifty 50 gained 5.52% in November and 7.94% in December.
Best monthly performance since July 2022.
The highest annual FPI purchases will be in the final two months 2023.
291.68 billion rupees directed towards high-weightage financials, propelling
the financial services index 7.14% higher to a new all-time high.

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GENERAL AWARENESS
Business and Economics Current Affairs

Economist Claudia Goldin Wins 2023 Nobel Prize in Economic Sciences

Harvard Professor Claudia Goldin was the third woman to win the 2023 Nobel
Prize in Economic Sciences. Her pioneering work on women's labor market
outcomes earned her this prestigious recognition, joining the ranks of Elinor
Ostrom and Esther Duflo. Her research uncovered the reasons for gender gaps
in labor force participation and earnings and has implications for the future of
the labor force.

Sri Lanka Secures Major Debt Agreement with China

Sri Lanka's government officially confirmed a significant development in its path
to economic revival after the recent ongoing crisis, as it reached a preliminary
agreement with China to restructure its debts. The Ministry of Finance
announced this on October 11, describing it as a significant stride towards the
nation's financial recovery. China, holding approximately 52% of Sri Lanka's $46
billion external credit, engaged in negotiations that resulted in an accord
regarding key principles and indicative terms of debt treatment.

TATA Motors signs MOU to set up 10000 EV Charging Points

Tata Passenger Electric Mobility Ltd. (TPEM), a Tata Motors subsidiary, partnered
with leading Charge Point Operators (CPOs) – Charge Zone, Glida, Statiq, and
Zeon – to deploy over 10,000 electric vehicle charging points in India within 12-
15 months. TPEM will collaborate with the CPOs to enhance customer
experiences and explore the rollout of a co-branded RFID card for smart
payments. The collaboration aims to accelerate EV adoption and expand the
charging infrastructure, leveraging TPEM's insights and CPOs' innovative
solutions.

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GENERAL AWARENESS
Business and Economics Current Affairs

Current Account Deficit Falls to 1% Of GDP in Q2

India's trade gap resulted in a contraction of the current account deficit (CAD) to
1% of the gross domestic product (GDP) as imports decreased relative to
exports. However, foreign direct investments (FDI) saw a decline, marked by
private equity investors withdrawing funds following sell-offs in IPOs. In the
September 2023 quarter, India's current account balance showed a deficit of
$8.3 billion, equivalent to 1% of GDP. This figure is lower than the $9.2 billion
(1.1% of GDP) recorded in the June 2023 quarter and significantly below the
$30.9 billion (3.8% of GDP) reported a year ago.

Government Refuses Exporters' Plea to Reduce Minimum Basmati Rice

Export Price
The Indian government has decided to maintain the minimum export price
(MEP) of basmati rice at $1,200/tonne, rejecting requests from exporters to
lower it to approximately $900/tonne. This decision, made by a ministerial
committee led by Home Minister Amit Shah, has disappointed exporters. The
MEP effectively sets a floor price for basmati rice exports. While there was an
agreement during a virtual meeting in September to reduce the price to
$850/tonne, the government chose not to implement it. Exporters have been
advocating for a more realistic price between $950 and $1,000/tonne to avoid
potential reductions in quantity due to consumer pricing constraints.

Inflation Falls to 5%, IIP Growth Jumps to 10.3%

India’s consumer inflation plunged to 5% in September from 6.8% in the
preceding month, while industrial production rose to 10.3% in August. The
unexpected rise in industrial production suggests that the economy remains
strong despite high-interest rates, inflation, and a weak global economy. The
IMF has raised India's growth forecast for FY24 to 6.3%. These positive indicators
give the Reserve Bank of India the confidence to maintain current interest rates
until retail inflation exceeds 4%. The Reserve Bank of India’s monetary policy
committee held the policy rate at 6.5% for the fourth consecutive time at last
week's meeting. Industry experts say inflation will remain above 5% in the
coming months.

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GENERAL AWARENESS
Business and Economics Current Affairs

RBI Holds Rates, Bumps Up Fy24 Growth Forecast to 7%

The RBI held interest rates and its monetary policy stance for the fifth
consecutive review meeting on moderating price pressures but signaled that
rates will remain elevated to ensure consumer inflation retreats toward the
central bank’s legally mandated target. It also bumped up the economic growth
forecast for FY24 to 7%. Simultaneously, the central bank kept its inflation
forecast unchanged amid concerns of a likely uptick in food prices it would look
through, adding that it may be too early to hunt for signs of a shift in monetary
policy as some distance remains for the consumer price gauge to reach the
prescribed 4% target.

IDFC Gets Clearance From CCI To Merge With IDFC First Bank
The Competition Commission of India (CCI) has approved the merger of
Infrastructure Development Finance Company (IDFC) with IDFC First Bank. The
merger between the development finance institution and the private lender
received approval from the board of directors of IDFC and IDFC First Bank on
July 3. This merger follows the recent merger of HDFC with HDFC Bank on July 1.
As of June 30, 2023, IDFC possessed a 30.93% stake in IDFC First Bank through a
nonfinancial holding company. Both parties intend to complete the merger
within the current fiscal year, with an agreed-upon share exchange ratio of
"155:100," entailing that shareholders will receive 155 shares of IDFC First Bank
for every 100 shares of IDFC.

RBI Slaps Fines on Citibank And Bank Of Baroda

RBI has imposed a fine of ₹5 crore on Citibank and a penalty of ₹4.34 crore on
Bank of Baroda for non-compliance with norms. Citibank has been fined for
contravention of rules regarding the Depositor Education and Awareness Fund
Scheme and noncompliance with central bank directions on managing risks and
code of conduct in outsourcing financial services. Bank of Baroda has been fined
for not complying with RBI directions on creating a central repository of large
common exposures and non-compliance with directions on deposit interest
rates.

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GENERAL AWARENESS
Business and Economics Current Affairs

LIC Surges To 52-Week High As MPS Rule Exemption Granted

Life Insurance Corporation of India (LIC)'s shares surged to a 52-week high on
December 22 after the Ministry of Finance granted the company a one-time
exemption to the 25% Minimum Public Shareholding (MPS) rule. LIC now has
until May 2032 to achieve the mandated 25% MPS, as per the Department of
Economic Affairs Office Memorandum issued on December 20, 2023. The stock
reached Rs 820.05, a 7% gain, and continued trading at Rs 808 on the BSE. The
MPS rule, initiated by SEBI in 2010, requires 25% public holding in listed entities.
LIC recently reduced stakes in Tata Motors and Dixon. With a robust solvency
margin, LIC remains financially strong amid slower growth. The market
response, with a 33% return in the last month and 18% year-to-date gains,
reflects confidence in LIC's strategic positioning.

Current Account Deficit Falls To 1% Of GDP in Q2

India's current account deficit (CAD), the excess of imports over exports, shrank
to 1% of the gross domestic product as the trade gap narrowed. But foreign
direct investments (FDI) contracted, with private equity investors taking out
money after selling down in IPOs. India’s current account balance recorded a
deficit of $8.3 billion, at 1% of GDP, in the September 2023 quarter, lower than
$9.2 billion, at 1.1% of GDP, in the June 2023 quarter, and $30.9 billion, or 3.8%
of GDP, a year ago. Remittances by Indians employed overseas amounted to
$28.1 billion, an increase of 2.6% from their level during the corresponding
period a year ago.

Enhanced UPI Features: Voice Commands and Offline Payment Options

Introduced
RBI Governor, Shaktikanta Das unveiled the Conversational Payments feature
on UPI during the Global Fintech Fest 2023, enabling users to effortlessly initiate
transactions by simply talking to AI-powered devices. Additionally, NPCI's Bharat
Billpay Connect now accepts payments via a simple missed call, and this will act
as a major step towards bridging the gap for rural areas with limited internet
access.

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Business and Economics Current Affairs

The Conversational payments feature will be available on-call (through a voice

call using interactive voice response) and an in-app feature (through any UPI-
based payments app).

The Conversational payments feature will be made available through two

modes: on-call (through a voice call using interactive voice response) and an in-
app feature (through any UPI-based payments app)

How will it work?

The workflow begins when the user gives a command, and the voice recognition
feature recognizes and converts that command into text. The user intent is
extracted from the text, and the user’s verification is sought to complete the
payment. The model was built in collaboration with the Bhashini Program at IIT
Madras and currently supports English and Hindi, with more languages in the
pipeline.

The Impact
This will enable millions in rural India who face constraints like lack of internet
connectivity, smartphones, and digital literacy to enter the domain of digital
payments with the limited resources available to them.

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GENERAL AWARENESS
Policy News

Overhaul of the Criminal Justice System

The Lok Sabha, amidst the Opposition's muted response, passed three crucial
bills - Bharatiya Nyaya Sanhita, Bharatiya Nagarik Suraksha Sanhita, and
Bharatiya Sakshya Adhiniyam, replacing 150-year-old British-era laws. Home
Minister Amit Shah emphasized the Bharatiya Nyaya Sanhita, 2023; Bharatiya
Nagarik Suraksha Sanhita, 2023; and Bharatiya Sakshya Bill, 2023 as laws that
prioritize Indianness, the Indian Constitution, and public well-being. These bills
replace the Indian Penal Code (1860), Code of Criminal Procedure (1973), and
the Indian Evidence Act (1872).

PM Modi hailed the passage of new criminal justice bills as a historic moment,
replacing colonial-era laws with modern codes focused on public service and
welfare. These bills scrap outdated sections on sedition and modernize legal,
policing, and investigative systems. He emphasized their protection for
vulnerable groups and crackdown on serious crimes, ushering in a new era of
justice in India's "Amrit Kaal."

The passage of these bills was not without controversy. Amidst protests and
demands for discussions, 151 Opposition MPs were suspended for creating a
ruckus in both Lok Sabha and Rajya Sabha. The MPs had gone into the well of
the House protesting lax security in the Parliament after multiple activists had
disrupted the proceedings earlier. The Opposition leaders alleged that the
suspension was meant to stifle debate and facilitate the passage of the new
bills.

The revised criminal laws redefine specific offenses and introduce stricter
penalties for crimes like terrorism, mob violence, and threats to national
security. Home Minister Amit Shah pointed out that ‘terrorism’ was defined for
the first time within these laws. This focus on addressing contemporary
challenges underlines the intention to bring the legal system into the 21st
century.

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GENERAL AWARENESS
Policy News

UPI Transactions Grow 46% Year on Year in November, Eclipsing Neft And
Debit Card Usage
According to official data released on December 18th, the number of UPI
transactions in November showed a 54% increase compared to the same period
last year, while the total transaction value experienced a growth of 46%. UPI's
remarkable success as a payment and settlement platform has come at the
expense of two other popular channels: the NEFT (national electronic fund
transfer) platform and debit cards. NEFT exhibited a growth rate of 17.5%, less
than half of UPI's pace, while debit card transactions contracted by 6.6% year-
on-year in October. Regarding the settlement amount, debit card transactions
only accounted for a third of the amount settled through UPI that month.

Beyond being extensively used in financially savvy urban centers, UPI is gaining
traction in semi-urban and rural areas. A report by PayNearby, a branchless
banking and digital network, revealed that UPI transactions at semi-urban and
rural stores increased 118% and 106%, respectively, in volume and value. This
underscores the expanding adoption of UPI beyond tier-II regions in the
country.

Supreme Court Backs Centre’s Decision to Abrogate Article 370

On December 11, the Supreme Court affirmed the Center's move to revoke
Article 370 of the Constitution, which granted special status to the former state
of Jammu and Kashmir. The ruling stated that Article 370 was a temporary
provision, and the President possessed the authority to revoke it.

A Constitution bench comprising five judges also unanimously supported the

Center's decision in August 2019 to bifurcate the erstwhile state into two Union
Territories – J&K and Ladakh. The bench, led by Chief Justice DY Chandrachud,
directed the restoration of statehood to J&K "at the earliest" and mandated that
elections for its legislative assembly be conducted by September next year.
However, the bench did not make a determination regarding the legality of the
Center unilaterally terminating the statehood of an Indian state.

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Policy News

India Plans to Set Up Strategic Natural Gas Reserve

India is set to establish a strategic natural gas reserve that can store up to 4
billion cubic meters (BCM) of imported gas, serving as a contingency measure
during supply emergencies. Following the recent approval by Oil Minister
Hardeep Singh Puri for creating the gas reserve, the oil ministry has directed Oil
and Natural Gas Corp (ONGC), Oil India, and GAIL to develop a detailed
feasibility report on the initiative collaboratively. The companies are expected to
submit the report within three months.

Although India had previously considered constructing strategic gas storage as

part of its energy security plan, prohibitive costs led to the project's
abandonment. However, the disruptions in India's gas imports caused by last
year's geopolitically influenced volatility in the global gas market, which
compelled some factories to reduce production, have prompted a reevaluation
of strategic policies. The current target for the gas storage capacity is 3-4 BCM,
with an estimated construction cost ranging from $1 to $2 billion. India aims to
elevate the share of gas in its energy mix from 6% to 15% by 2030.

Drug Regulator Halts Production at 76 Units Over Poor Standards

As a result of risk-based inspections conducted since last December, India's drug
regulator has instructed 76 pharmaceutical companies out of 237 to halt
production due to inadequate manufacturing standards. Additionally, over 75%
of these companies have received show-cause notices. Among the samples
collected from these manufacturing units, 15.1% have been identified as not
meeting standard quality (NSQ).

In collaboration with state drug inspectors, the Central Drugs Standard Control
Organisation (CDSCO) has undertaken these inspections as part of an extensive
nationwide initiative to crack down on spurious and substandard medicines.

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Policy News

Bihar House Raises Quota For ‘Deprived Castes’ to 65%

On November 9, the Bihar assembly unanimously approved bills to increase
reservations for 'deprived castes' from 50% to 65% in state government jobs
and educational institutions, elevating the overall reservation to 75%. The
specific changes include doubling the quota for Scheduled Tribes from 1% to
2%, raising the reservation for Scheduled Castes from 16% to 20%, increasing
the economically backward classes' quota from 18% to 25%, and enhancing the
reservation for other backward classes from 12% to 15%.
Bihar Chief Minister Nitish Kumar explained that the decision to increase
reservations in Bihar stemmed from a caste survey conducted after consensus
was reached among all nine parties represented in the assembly. He expressed
plans to introduce additional measures to uplift those identified as economically
disadvantaged through socio-economic surveys.

UGC Announces Rules for Foreign Universities in India

The University Grants Commission has officially announced regulations to
streamline the admission process for foreign campuses in India. According to
these regulations, foreign institutions ranked within the top 500 globally in the
overall category or within the top 500 in subject-specific global rankings,
showcasing exceptional expertise in a particular field, are qualified to enter
India. Institutes meeting the eligibility criteria can confer certificates, diplomas,
and degrees and offer research and various undergraduate, postgraduate,
postgraduate, and post-doctoral programs.

DCGI Compiles Pharma Company Data After Spurious Drug Crackdown

After a swift crackdown on medicine, manufacturers found to be producing and
exporting sub-standard medicines in a raid conducted in March, The DCGI has
taken another step to collate the data of Pharma Companies manufacturing
medicines. The companies have been asked to share their regulatory
compliance data and international approvals. These moves are in response to
the WHO reports that suggested there might be a link between the deaths of
children in Gambia and the contaminated cough syrups made by an Indian drug
Manufacturer.

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What’s being collected?

As per official data, about 10,500 units in the country produce different dosage
forms and Active Pharmaceutical Ingredients (APIs). DCGI has sought the
following data from pharma companies: The names of the importing countries,
the list of units abroad, regulatory certifications from the regions being operated
in, and info on annual, domestic, and export turnover.

The way ahead

The move is seen as an effort to put more stringent quality controls in place
before exporting to other countries and stemming the growth of malpractices
by medicine manufacturing units. In a recent letter to state drug control
authorities, DCGI instructed them to collect the details for the units under their
jurisdiction.

Indian Railways celebrates 170 years of establishment

With a rich history dating back to 1853 during the British colonial era, Indian
Railways has become a pivotal driver of India's progress. Boasting an extensive
network of 123,236 km of tracks, 13,523 passenger trains, and 9,146 freight
trains, it is a testament to India's growth. Employing over 1.2 million individuals,
the railway system, once serving colonial interests, now plays a vital role in
India's ambitious pursuit of a USD 5 trillion economy. Notable milestones
include dedicated freight corridors and innovative initiatives like the Vande
Bharat Metro, highlighting the fusion of ingenuity and public-private
partnerships.

Electrification Milestones
With a target to electrify the entire network by 2023, the initiative is
anticipated to result in annual energy savings of USD 1.55 billion.
As of February 2023, 85% of the broad-gauge network has been electrified.
Six zonal railways have achieved complete electrification, making strides
toward the 100% electrification goal.
The 100% electrification mission successfully covered 6,542 rail kilometers
during 2022-23. More than 1,000 stations have transitioned to solar power.

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Modernization Initiatives
The plan includes manufacturing 400 new-generation Vande Bharat trains
over the next three years.
Kavach aims to bring 2,000 km of the railway network under its purview in
2022-23.
The Mumbai-Ahmedabad high-speed rail project, sanctioned for USD 14.27
billion, marks a significant leap in modernization.
Wi-Fi services have been commissioned at 6,089 railway stations.

Freight Operations
Ambitious targets aim for 2,024 MT freight loading by 2024.
Notably, 1,512 MT was loaded during 2022-23, surpassing the previous fiscal
year's record of 1,418 MT.
The PM Gati Shakti cargo terminals plan to develop 100 terminals for
multimodal logistics within the next three years.

Future Projections
Envisioning 12 billion annual passengers by 2031.
Anticipating an annual freight demand of 8 million tons in 2031.
Aspiring to be recognized as the largest green railway network globally.
Aspires to secure the position of the fourth-largest rail freight carrier on the
global stage.

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Science and Technology News

Deepfakes
Deepfakes are synthetic or manipulated media presentations, usually video or
audio that can make it appear as if someone is saying or doing something they
never did.
Highly realistic: Utilizing sophisticated artificial intelligence techniques,
deepfakes can convincingly mimic facial expressions, voice patterns, and
body movements, blurring the line between reality and fabrication.
Potential for misuse: Deepfakes can be used for malicious purposes like
spreading misinformation, tarnishing reputations, or influencing elections.
This requires responsible creation and consumption of such content.
Evolving technology: The technology behind deepfakes is constantly
improving, making it even harder to distinguish them from genuine media.
It's crucial to remain vigilant and develop strategies for verification.
Applications beyond manipulation: Deepfakes can also be used for
creative purposes like filmmaking, education, and entertainment, pushing
the boundaries of storytelling and enriching user experiences.
Ethical considerations: As this technology evolves, it's important to discuss
and establish ethical guidelines for deepfake creation and use, safeguarding
against harmful applications, and promoting responsible digital citizenship.

Artificial Intelligence
AI mimics human intelligence: machines that learn, solve problems, and
understand the world, impacting from healthcare to self-driving cars. It's
evolving fast, and we shape its ethical future.
Challenges - AI's smarts can bias, confuse, hack, displace, and raise
dilemmas. We must navigate data shadows, trust fewer decisions, and job
market fears, all while shaping the future of ethical AI. It's a learning curve
with big stakes.

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Science and Technology News

Food Fortification
"Food fortification" refers to adding essential vitamins and minerals to
commonly consumed foods. It's a powerful tool to combat hidden hunger and
micronutrient deficiencies, particularly in populations with limited access to
diverse diets. Here are some key points:

Benefits
Reduces deficiencies: Fortifies staple foods like flour, salt, and oil with
micronutrients like iron, iodine, vitamin A, and zinc, addressing deficiencies
that can cause health problems like blindness, anemia, and stunting.
Public health impact: Improves overall population health by preventing
deficiencies and their associated illnesses, boosting development and
cognitive function.
Cost-effective: Fortification is a relatively inexpensive intervention with
significant long-term benefits compared to treating deficiencies.

Challenges
Accessibility: Reaching vulnerable populations requires effective
distribution and awareness campaigns, particularly in rural areas.
Monitoring and evaluation: Monitoring programs and nutritional intake is
crucial to assess effectiveness and adjust strategies.
Sustainability: Ensuring reliable funding and infrastructure is essential for
the long-term success of fortification programs.

Nobel Prize 2023

Peace Prize
Nargges Mohammadi: Renowned Iranian human rights activist who has
fought tirelessly for women's rights and against the death penalty, often at
great personal risk. Her ongoing imprisonment has sparked debate and
renewed global attention to her cause.

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Nobel Prize 2023

Physics
Anton Zeilinger and Alain Aspect: Pioneered groundbreaking research on
entangled photons, revealing their remarkable quantum properties and
paving the way for advances in quantum communication, computing, and
materials science.
John Clauser: Contributed significantly to the understanding of entangled
particles and their implications for fundamental physics, further solidifying
the principles of quantum mechanics.

Chemistry
Carolyn Bertozzi and Morten Meldal: Revolutionized chemical synthesis by
developing "click chemistry," a powerful and versatile toolbox for rapidly and
efficiently connecting molecules with applications in pharmaceuticals,
materials science, and drug discovery.
Karl Barry Sharpless: Developed the concept of "click chemistry"
independently, contributing significantly to this transformative field and its
diverse applications.

Medicine or Physiology
James Allison and Tasuku Honjo: Made groundbreaking discoveries in
immunotherapy, understanding how the immune system recognizes and
attacks cancer cells. Their work led to the developing of life-saving cancer
treatments that harness the body's defenses.

Chandrayaan-3

Launch & Journey

Successfully launched on July 14, 2023, aboard the LVM3-M4 rocket.
Completed a series of orbit-raising maneuvers to enter lunar orbit on
August 5th.
The Vikram lander and Pragyan rover separated from the orbiter on August
17th. The de-boosting operation successfully lowered the lander towards
the lunar surface.

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Chandrayaan-3

Landing Attempt & Current Status

On August 23rd, the lander touched down near the lunar south pole at
18:03 IST. This made India the fourth country to land on the Moon
successfully. However, shortly after landing, communication with the lander
was lost.
Extensive efforts are underway to re-establish communication and assess
the lander's status.

Impact & Future

Despite the communication loss, the soft landing is a significant
achievement for India's space program.
Scientists may attempt to activate the Pragyan rover and conduct planned
lunar surface experiments depending on the lander's condition and if
communication can be restored.

Aditya L1

Aditya L1, India's maiden solar mission, has had a successful journey, reaching
its destination and beginning to probe the mysteries of our closest star.

Launch & Journey

Launched on September 2nd, 2023, aboard the PSLV-C57 rocket.
It completed its initial Earth orbits and escaped Earth's gravitational sphere
on September 30th. Performed several trajectory correction maneuvers
during its 4-month journey to the L1 Lagrange point.

Reaching L1 & Current Status

Arrived at the L1 point on January 6th, 2024, after a 110-day voyage.
Successfully inserted into a halo orbit around L1, offering an uninterrupted
view of the Sun.
Initial scientific data gathering commenced on September 15th, 2023. All
seven payloads, including those developed by Indian academic institutions,
are operational and collecting data.

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Aditya L1

Mission Objectives & Discoveries

Studying the Sun's upper atmosphere (chromosphere and corona) and their
dynamics.
Understanding the processes of coronal heating, the physics of partially
ionized plasma, and the initiation of coronal mass ejections (CMEs).
Observing the in-situ particle and plasma environment to study particle
dynamics from the Sun.
High-resolution images of the Sun's disk in ultraviolet wavelengths have
already been captured.
Detected solar flares and provided valuable data for understanding their
behavior.

Indian Space Regulator Invites Bids for Transfer of Technology of

SSLV

To provide ease of entry to private firms into the space-tech sector, the Indian
National Space Promotion & Authorization Centre (IN-SPACe) has taken the
initiative by inviting bids for the Transfer of Technology of SSLV to private
players. The SSLV is a three-stage launch vehicle capable of carrying a payload of
up to 500 Kg to a circular orbit of 500 Km.

Industry Reaction: The move is being lauded by many and is seen as the dawn
of a new era in the Indian Space sector. Unlike the global scenario where the
private players are at the forefront of the space sector, India has taken a more
conservative approach till now. This initiative can act as a cornerstone in
democratizing the Indian space sector.

The Impact: By transferring this technology, the private sector can now build
capacity under the guidance of ISRO and thereby develop into a hub of space
launches shortly. This will enable India to gain even more stature in the rapidly
growing space sector globally.

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Mission Gaganyaan

India is embarking on an ambitious decade of space exploration, and a

significant highlight of this endeavor is the Gaganyaan mission. The Gaganyaan
mission marks India's first attempt to send humans into space using their
spacecraft.

Mission objective: Gaganyaan aims to demonstrate human spaceflight capability

by launching a crew of three members into a 400 km orbit for 3 days and
bringing them back safely to Earth, landing in sea waters.

Launch vehicle: 'Human Rated LVM3' is a reconfiguration of LVM3 used in

Chandrayaan 3, to meet the requirements for human-rated missions,
specifically for the Gaganyaan program. It can launch the Orbital Module into a
Low Earth Orbit of 400 km.

Key points
The test flight of a single-stage liquid propulsion rocket equipped with a
crew module and crew escape system took off from Sriharikota.
The successful test paved the way for subsequent qualification tests and
unmanned missions, aiming for India's first human spaceflight around 2025.
India's ambition includes establishing an "Indian Space Station" by 2035 and
sending the first Indian astronaut to the moon by 2040.

World News

G20 Expansion: A Seat at the High Table for Africa

The Group of Twenty (G20) nations, representing the world's largest economies,
has long been criticized for its limited representation of the Global South.
However, a significant step towards inclusivity was taken in 2023, formally
including the African Union (AU) as a permanent member. This move
acknowledges Africa's rising economic and demographic weight, granting the
continent a much-needed voice on the global stage.

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G20 Expansion: A Seat at the High Table for Africa

Policy Implications
The AU's inclusion in the G20 has far-reaching implications for global
policymaking. Here are some key areas where its presence will be felt:
Development Issues: The AU can champion the concerns of developing
nations, pushing for a more equitable distribution of resources and a
stronger focus on issues like poverty eradication, infrastructure
development, and food security.
Climate Change: Africa is disproportionately affected by climate change, yet
its voice has often been marginalized in international negotiations. The AU's
presence can ensure that climate action plans address African nations'
specific needs and vulnerabilities.
Trade and Investment: The AU can advocate for fairer trade practices and
increased foreign direct investment in Africa, promoting sustainable
economic growth and job creation across the continent.
Peace and Security: Africa faces unique security challenges, from terrorism
and piracy to civil conflicts. The AU's participation in the G20 can foster
international cooperation and resource allocation to address these pressing
issues.

India's Role
As the current chair of the G20 and a rising leader of the Global South, India had
a crucial role in ensuring the AU's successful integration into the group. Here are
some key ways India can contribute further:
Championing Inclusivity: India can advocate for further expansion of the
G20 to include other underrepresented regions and voices from the Global
South.
Building Bridges: India can act as a bridge between the AU and other G20
members, fostering understanding and cooperation on critical issues of
global concern.

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Sharing Best Practices: India's own development successes and South-

South cooperation initiatives can serve as valuable models for other
developing nations, including those in Africa.
Promoting Sustainable Development: India can work with the AU to
prioritize sustainable development goals within the G20 agenda, ensuring
that economic growth benefits all people and planet.

The inclusion of the African Union in the G20 marks a significant step towards a
more inclusive and representative global governance system. India, as a leader
of the Global South, has a unique opportunity to shape this new chapter by
championing inclusivity, building bridges, and promoting sustainable
development. By working together, the AU and G20 members can create a fairer
and more prosperous future for all.

BRICS Expansion

At the recent 15th BRICS summit in Johannesburg, a noteworthy development

was revealed: the original five-member BRICS alliance, comprising Brazil, Russia,
India, China, and South Africa, has expanded by extending invitations to six
additional nations. The newly invited countries include Iran, Saudi Arabia, and
the United Arab Emirates (UAE) from West Asia; Egypt and Ethiopia from Africa;
and Argentina from Latin America.

Need For Expansion: The push for BRICS expansion stems from the dominance
of West-led international institutions, including the World Bank, IMF, UN, and
WTO. At the 15th BRICS summit in Johannesburg, the need for expansion was
underscored as these institutions were deemed reflective of a bygone era by UN
Secretary-General António Guterres. BRICS challenges the West-led world order
by fostering intra-BRICS cooperation, establishing institutions outside Western
influence, and advocating for comprehensive reforms to better accommodate
emerging economies.

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The Johannesburg Declaration emphasizes the pursuit of a more representative

and fair international order. The proposed expansion, including Iran, Saudi
Arabia, UAE, Egypt, Ethiopia, and Argentina, would encompass 46% of the
world's population and increase BRICS' share of the global GDP from 31.5% to
37% in PPP terms, surpassing the G-7's GDP of 30.7%. This expansion is
projected to boost global exports and imports by 3.7% and 3%, respectively, and
elevate the global energy output from 20% to 42%, bringing significant geo-
strategic value to the grouping.

Benefits
The expansion of BRICS brings numerous benefits. The establishment of
alternative financial institutions like the New Development Bank and Contingent
Reserve Arrangement reduces dependency on Western-dominated institutions.
BRICS encourages the use of local currencies in trade, aiming to decrease
reliance on major global currencies. Advocacy for significant international
reforms, especially in financial institutions and global governance, is a key
agenda.

The new members, particularly those from West Asia and Latin America,
contribute significant geostrategic value, enhancing energy cooperation,
diversifying energy sources, and strengthening BRICS' presence in key regions.
Additionally, the resolution of regional disputes, like the Qatar blockade, and
improved Iran-UAE relations present opportunities for regional economic
cooperation and connectivity projects.

Developments
Meanwhile, Argentina, led by President Javier Milei, withdrew from joining BRICS
due to a foreign policy shift, emphasizing bilateral ties over full membership.
Milei's right-wing stance, critical of China, contrasts with the prior government's
alignment. Argentina faces economic challenges, influencing its geopolitical
position amid shifting alliances.

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World News

China Reveals the World's First Fourth-Generation Nuclear Reactor

China achieved a pivotal shift from coal with the Shidaowan nuclear power plant
in the northern Shandong province, utilizing groundbreaking gas-cooled
reactors for enhanced efficiency and cost-effectiveness. The Small Modular
Reactors (SMRs), those with less than 300 MW capacity, transcend conventional
electricity generation, offering versatility in applications like heating and
desalination. Proponents say they can operate in remote locations and power
traditionally hard-to-abate heavy industry sectors, but critics say they are too
expensive. Notably, over 90% of the plant's equipment is domestically designed,
aligning with China's pursuit of technological independence amid geopolitical
tensions.

China aims to produce 10% of its electricity from nuclear energy by 2035 and
18% by 2060. Still, as of September this year, it has not met its 2020 target to
install 58 gigawatts of nuclear capacity. China has also not signed a pledge by 20
countries at the COP28 climate conference in Dubai to triple nuclear power
capacity by 2050.

France Unveils Statue of Tamil Icon Thiruvalluvar

In Cergy, France, a statue honoring Tamil icon Thiruvalluvar was inaugurated,
symbolizing the enduring cultural ties between India and France. Prime Minister
Modi praised the statue, emphasizing shared cultural bonds. External Affairs
Minister Jaishankar noted that the statue fulfills a commitment made by Modi
during his Bastille Day visit to Paris.

Thiruvalluvar, an esteemed poet-philosopher, authored the Tirukkuṟaḷ, a series

of poems and couplets covering various subjects, including ethics, politics, and
more. This work is highly regarded as an exceptional piece of Tamil literature,
holding profound significance in India's cultural and intellectual heritage.

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World News

UNESCO Recognizes Gujarat's 'Garba' as an Intangible Cultural Heritage

Gujarat's traditional dance form, 'Garba,' secured a place on UNESCO's
Intangible Cultural Heritage list on December 6, marking India's 15th cultural
entry. This recognition, granted during the 18th session in Botswana, highlights
Garba's significance, which was celebrated during the nine-day Navaratri
festival. Described as a unique manifestation of worshipping the divine
feminine, Garba's cultural expressions extend across homes, temple courtyards,
and public spaces.

Italy Withdraws from China's Belt and Road Initiative, Citing Limited
Benefits
Italy, the only G7 nation to join China's Belt and Road Initiative (BRI) in 2019, has
officially withdrawn from the vast infrastructure project. Prime Minister Giorgia
Meloni, a critic of the initiative, communicated the long-expected decision to
Beijing, aiming to "keep channels of political dialogue open." Italy, a member of
the EU and NATO, expressed concerns about BRI's transparency and limited
benefits. The move highlights growing skepticism in Western nations, with Italy
joining Germany and France, which never joined BRI but secured significant
trade and investment deals independently. Italian Foreign Minister Antonio
Tajani said in September that membership "has not produced the results.”

Adani’s Sri Lanka Port Terminal Project to Get Funding From U.S.
Government
The U.S. International Development Finance Corporation (DFC) will invest $553
million in the Adani container terminal project in Colombo, Sri Lanka. The move
follows Adani's $700 million deal in 2021 with the Sri Lanka Ports Authority and
John Keells Holdings for the West Container Terminal. Despite corruption
allegations against Adani, the DFC's CEO, Scott Nathan, emphasized the
commitment to high standards, transparency, and due diligence. Adani Group
Chairman Gautam Adani expressed pride in contributing to regional shipping
capacity and economic growth.

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Sports News

Koneru Humpy Secures Silver at World Rapid Chess Championship; Vidit

Gujrathi's Heartbreak in Fourth Place
Indian Grandmaster Koneru Humpy clinched the silver medal in the women's
event at the 2023 World Rapid Chess Championships in Samarkand, Uzbekistan.
Despite a valiant effort, the 36-year-old Grandmaster succumbed to Russian
player Anastasia Bodnaruk in a tie-break sudden death on time. Humpy's
achievement completes a set of medals at the women's world rapid
championships, including a bronze in 2012 and a world championship title in
2019. In the open section, Vidit Gujarati finished fourth after a rollercoaster of
emotions, missing out on a podium finish due to an unfortunate blunder
against Vladimir Fedoseev. Magnus Carlsen successfully defended his title in the
open section.

Tigist Assefa Shatters Women’s Marathon World Record in Berlin

Ethiopian Runner Tigist Assefa shattered the Women’s Marathon world record
in Berlin, clocking 2:11:53. A stunning performance, Assefa surpassed the
previous record by 2 minutes and 11 seconds, setting a new standard in elite
marathon running. Her remarkable journey, from health struggles to a modest
debut in 2022, culminated in an astonishing victory at the Berlin Marathon,
highlighting her potential for even faster times. Assefa's feat sparked debate on
the impact of advanced running shoe technology in the ongoing Supershoe
Wars.

Mohammed Shami Clinches Arjuna Award: A Pacer's Triumph Amidst

Cricket Heartbreak
Indian pacer Mohammed Shami, renowned as India's premier fast bowler in
2023, was given the prestigious Arjuna Award by President Droupadi Murmu on
January 9. Despite India's heartbreak in the World Test Championship and
World Cup, Shami stood out with an exceptional year, amassing 24 wickets in
seven World Cup games. His pivotal 7/57 in the semi-final against New Zealand
showcased his prowess. Holding the record for the most World Cup wickets by
an Indian (55 in 18 games), Shami's Arjuna Award recognizes his outstanding
contributions to Indian cricket.

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Sports News

Divyakriti Singh becomes the first Indian woman to get the Arjuna Award
for equestrian sports
In a historic moment for Indian equestrian sports, Divyakriti Singh became the
first Indian woman to receive the prestigious Arjuna Award. The ceremony, held
at Rashtrapati Bhavan and presided over by President Droupadi Murmu,
celebrated Singh's remarkable achievements, including her gold medal at the
Asian Games. Hailing from Rajasthan, she not only secured the Arjuna Award
this year but also stands as the sole recipient from the state over the past five
years. Trained in Germany, she recently contributed to India's gold-winning
Dressage team at the Asian Games and excelled in international competitions,
ranking No.1 in Asia and No.14 globally.

Rohan Bopanna ends Davis Cup career with a win as India beat Morocco
Indian tennis veteran Rohan Bopanna concluded his illustrious Davis Cup career
with a poignant victory as Team India triumphed 4-1 against Morocco in World
Group II. The 43-year-old, adorned in the Tricolour, marked his farewell by laying
his India jersey at the court's center, evoking raucous applause. Despite the tie
being in the third tier, Bopanna, with 20 years of Davis Cup experience,
expressed pride in representing India at any level. His farewell match
showcased the resilience and dedication that defined his remarkable Davis Cup
journey, encompassing 33 ties and 50 matches against formidable opponents.

Tiger Woods ends Nike partnership after 27 years

Tiger Woods, a golf legend, ended his 27-year partnership with Nike, marking a
significant shift in his endorsement portfolio. Woods, who decided not to renew
with Nike, expressed gratitude to the company, acknowledging its role in
redefining golf. Nike, confirming the split, praised Woods for breaking barriers in
sports. Speculation about Woods' future endorsements includes On Running
and TaylorMade. On Running denies interest, while TaylorMade emphasizes
their current equipment-only relationship. Despite Nike's quiet downsizing of
golf operations, Woods' departure may impact exposure. Analysts foresee Nike
continuing successful partnerships with other global athletes. With a reported
$500 million from Nike, Woods remains a lucrative figure for brands.

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Sports News

Manchester United sells 25% of EPL club to UK billionaire Jim Ratcliffe

British billionaire Jim Ratcliffe, owner of INEOS, has agreed to purchase a
minority stake (up to 25%) in Manchester United for a reported $1.6 billion.
Ratcliffe, among the UK's wealthiest individuals, will invest $300 million in Old
Trafford stadium. The deal includes him taking charge of the club's soccer
operations. While Ratcliffe initially sought a majority share from the Glazers,
United's American owners, the deal is now for a minority stake. The transaction
is debt-free, a departure from fan criticism of leveraged buyouts.

Sandeep Lamichhane sentenced to eight years in jail for rape

Nepal leg spinner Sandeep Lamichhane has been sentenced to eight years in jail
by the Kathmandu District Court for the rape of an 18-year-old woman. The
court also imposed a fine of Rs 300,000 (USD 2255 approx) and ordered him to
pay Rs 200,000 (USD 1500 approx) to compensate the victim. Lamichhane's
lawyer has stated they plan to appeal the decision in a higher court. The Cricket
Association of Nepal suspended the cricketer in September last year after an
arrest warrant was issued against him. Lamichhane, who had denied the
allegations, has continued playing for Nepal despite the legal proceedings.

Novak Djokovic and Iga Swiatek are confirmed as top seeds for the 2024
Australian Open
Novak Djokovic and Iga Swiatek have been confirmed as the top seeds for the
2024 Australian Open. Djokovic, a 24-time Grand Slam champion, takes the top
seed in the men's category, while 2023 Wimbledon champion Carlos Alcaraz is
seeded second. The men's seeding mirrors the ATP rankings from positions 1-
32. In the women's category, the seeding follows the rankings from positions 1
to 8, with Barbora Krejcikova elevated to the 9th spot due to Karolina Muchova's
absence because of injury. Petra Kvitova, who is expecting a baby, and Madison
Keys, who is sidelined with a shoulder injury, are notable absentees. Seeding is
crucial to ensure that players ranked in the top 32 do not face each other in the
initial rounds, preserving the possibility for the top two seeds to meet in the
finals. The Australian Open is scheduled to commence on January 14.

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Sports News

Manchester United sells 25% of EPL club to UK billionaire Jim Ratcliffe

British billionaire Jim Ratcliffe, owner of INEOS, has agreed to purchase a
minority stake (up to 25%) in Manchester United for a reported $1.6 billion.
Ratcliffe, among the UK's wealthiest individuals, will invest $300 million in Old
Trafford stadium. The deal includes him taking charge of the club's soccer
operations. While Ratcliffe initially sought a majority share from the Glazers,
United's American owners, the deal is now for a minority stake. The transaction
is debt-free, a departure from fan criticism of leveraged buyouts.

Sandeep Lamichhane sentenced to eight years in jail for rape

Nepal leg spinner Sandeep Lamichhane has been sentenced to eight years in jail
by the Kathmandu District Court for the rape of an 18-year-old woman. The
court also imposed a fine of Rs 300,000 (USD 2255 approx) and ordered him to
pay Rs 200,000 (USD 1500 approx) to compensate the victim. Lamichhane's
lawyer has stated they plan to appeal the decision in a higher court. The Cricket
Association of Nepal suspended the cricketer in September last year after an
arrest warrant was issued against him. Lamichhane, who had denied the
allegations, has continued playing for Nepal despite the legal proceedings.

Novak Djokovic and Iga Swiatek are confirmed as top seeds for the 2024
Australian Open
Novak Djokovic and Iga Swiatek have been confirmed as the top seeds for the
2024 Australian Open. Djokovic, a 24-time Grand Slam champion, takes the top
seed in the men's category, while 2023 Wimbledon champion Carlos Alcaraz is
seeded second. The men's seeding mirrors the ATP rankings from positions 1-
32. In the women's category, the seeding follows the rankings from positions 1
to 8, with Barbora Krejcikova elevated to the 9th spot due to Karolina Muchova's
absence because of injury. Petra Kvitova, who is expecting a baby, and Madison
Keys, who is sidelined with a shoulder injury, are notable absentees. Seeding is
crucial to ensure that players ranked in the top 32 do not face each other in the
initial rounds, preserving the possibility for the top two seeds to meet in the
finals. The Australian Open is scheduled to commence on January 14.

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Sports News

Indian Street Premier League initiates bidding for co-owners as tennis ball
T10 Cricket tournament gears up
The Indian Street Premier League (ISPL), a tennis ball T10 cricket tournament,
has opened bidding for potential co-owners of its six teams representing
Hyderabad, Mumbai, Bengaluru, Chennai, Kolkata, and Srinagar. The Invitation
to Bid starts with a base price of Rs 10 lakh, allowing enthusiasts to become
celebrity team owners. ISPL aims to bring glitz and glamour to the T10 format
played inside a stadium. The bidding process is anticipated to add excitement
and engagement to the league, attracting investors and cricket enthusiasts. The
initiative aligns with the growing trend of alternative cricket formats gaining
popularity in India.

Interview Questions

Who is the MLA or MP of your constituency? Who is the CM of your state?

List the positives and negatives of the current Union Budget.
How are India-Canada relations now? What are your views on the recent
allegations made by the Canadian PM?
What is the impact of the Israel–Hamas conflict on India? What are your
views on it?
Russia-Ukraine war & and their impact on the global economy. What are
your views on India’s stand on the war?
Name a women leader in any field who has inspired you.
Inflation, GDP, Unemployment, REPO, Reverse REPO rate, fiscal and
monetary policy.
Questions on the vital union ministries and their ministers, different
portfolios of ministers.
Name a momentous event that happened in your native place or where
you live.
What is that one thing your place is famous for?
Name some rivers around your place, their origin point, and where they
meet the oceans/sea.

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Interview Questions

Which are the Scandinavian countries?

What are the different countries in ASEAN, AUKUS, QUAD, SCO, SAARC, G20,
G7, NATO, and CSTO?
Name any five countries in Africa/Middle East.
CEOs of major organizations (Google, Microsoft, Amazon, Apple, Alibaba,
Reliance
About your previous company, if you have work experience.

Topics for extempore

Israel-Hamas conflict
India-Maldives relations
Red Sea crisis due to Houthi attacks on shipments
G20 Summit held in India
Russia-Ukraine war
BRICS Expansion
Upcoming Indian elections
Google Gemini project
Deepfakes and their regulation
Indian space missions (Chandrayan 3 Aditya L1)
Lithium reserves in Jammu Kashmir
Overhaul of Indian criminal justice laws

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 INTERVIEW TIPS

BY SILVERTONGUES
THE TOASTMASTER CLUB OF IIM UDAIPUR
INTERVIEW TIPS
TIPS TO ACE THE PI PROCESS

The Personal Interview Process of the IIMs and other business schools checks
whether the candidate will fit into the B–school culture. The essential tip anyone
can give you regarding the interview process is to be true to yourself. Only then
can you answer the questions as confidently as possible. IIM Udaipur puts a
15% weight on the candidate's interview. The points for this criteria are given on
the candidate's general attentiveness, responsiveness, and confidence. In such a
case, it becomes imperative that the candidate answer the questions
thoughtfully. Below are some of the critical questions that you must keep in
mind:

“Tell me about yourself” - This is the question you can use to set the
interview's tone. Try to be as concise and straightforward as possible. It is an
accepted norm that the answer to this question is between 1 – 2 minutes. To
prepare this question, list down all the relevant points about yourself. You
can include your educational background, work experience, hobbies, etc.
Once these points have been identified, try to think of ways these have
shaped you and prepared you for the MBA life. For example, it is not enough
to say you love playing basketball. You must also tell how the sport has
affected or made you a better person.

Have a hobby - If you mention a hobby, be thorough and know the latest
happenings in that particular field of interest. Saying something and not
knowing about it creates a terrible impression.

Strengths/Weaknesses - List down three strengths and three weaknesses

of yours. It should reflect how deeply you understand yourself and talk
about what you are doing to overcome your weaknesses while mentioning
them to the interviewer.

Take the interviewer through your journey - Every interview is a journey

through your life. So try to tell your trip as if it were a story. Write down your
answers and then practice them several times with pauses and expressions.

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INTERVIEW TIPS
Why MBA/Why this college - Link your MBA aspirations to something that
happened in your past or to something in the future (which you want to
achieve). A personal touch to this question must be there. Otherwise, it
looks very generic, straightaway copied from the internet. Also, thoroughly
research the college before applying and identify its uniqueness, then try to
link it with some of your life experiences while answering the “Why this
college” question.

For freshers - Ensure you are thorough with the important subjects you
studied in your graduation. A basic understanding of essential terms with
their practical applications in everyday life would be enough.

For work-ex people - Try understanding your designation/role's impact on

the organization's overall functioning. People tend to have a narrow view of
their job in the company, but a macro perspective is required. Also, mention
the achievements you made while being in that post.

Zoom Interviews - The pandemic has shifted the interview process over to
Zoom. This becomes a bit of a hassle for all those people who aren’t in the
habit of conversing over video calls. Ensure that you are comfortable in the
clothes that you are wearing. Find a quiet room to attend to the process.
Ensure good internet connectivity so that the process is hassle-free. For
most college interviews, the candidates are given time to log in to the Zoom
meeting. Ensure that you are joining the discussion at the given time. You
might be put in a waiting room. Please do not leave the computer and wait
for your turn to be let into the room.

Interview Etiquettes - Make sure your screen covers the upper chest area,
wherein the light focuses on your face (coming from the opposite direction),
and the background behind you is simple, with no visual distractions.

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INTERVIEW TIPS
Filler words - Avoid using filler words such as ah, hmm, you know, or....; a
person using these words/sounds doesn’t notice it when speaking. Every
person has their own filler words, so try to do a self-reflection and identify it.
You can video record yourself while preparing for answers and ask your
friends/family members to ask unprepared questions based on your
introduction; this will give a good understanding of the filler word being
used.

Know when to stop - Speak only about what you know and try not to fake
an answer. The professors are knowledgeable enough to understand that
you are affecting an answer. So try to be honest. If you don’t know
something, it is no harm to say that you don’t know it.

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 Media & Industry Interaction Cell

IIM UDAIPUR WISHES YOU

All The Best