FACULTY OF MANAGEMENT STUDIES

UNIVERSITY OF DELHI

Semester Eximination 2015

Name of Examination MBA Executive /MBA Executive (FICA)

Paper Name: Organizational Behaviour and Managing Transitions.; Paper No: MBAEX 8101

Time allowed Three Hours Maximum Marks: 70

Instructions : Section A (34 Marks) is compulsory . From Section B (36) answer any THREE
questions.

I Serial Marks
No. of
Question

Q1. Read the case-1, 'Ford Motor company' and answer the questions given below.

( a) How does the transformation of Ford motor company illustrate many of the strategies 14
and practices necessary to change organizationS? What were the major elements in turning
around the company? What is the role of leadership in managing change?

(b) Use Lewin's force field analysis to describe the dynamics of organizational change at 6
Ford motor company.

Q2 Read the case-2 , 'Riding the emotional roller coaster' and answer the questions given
below:
6
(a) To what extent do the three people featured in this case manage their own emotions on
the job? What stress outcomes occur for people in these types of jobs ?

(b) How can they try to minimize high levels of stress? What can health care organizations
do to manage the stress of such employees? 8

1
 SECTION B (Answer any three questions)

Q3. Suppose that you give all candidates applying for a management trainee position a personality test 12
that measures the five dimensions in the big five factor model. Which personality traits would you
consider to be more important for this type of job? Explain your answer with suitable examples.

Q 4. You have been put in charge of a cross —functional task force that will develop internet banking
services for retail customers .The group includes representatives from marketing ,information
services ,customer service and accounting , all of whom would move to the same location at Mumbai
headquarters for SIX months .

(a) Apply Tuckman's model to describe the behaviors you might observe during each stage of the 6+6
groups' development.

( b) How can you prevent group think in this group

Q5. (a) Classify the various types of strokes. How do they influence the basic life or psychological 6+6
positions and employee behavior ? Discuss with examples.

(b) Distinguish between complimentary and crossed transactions with suitable examples.

Q6. Consider the various dimensions on which national cuitures differ. Discuss consequences in the 12
workplace if someone from another culture differing on the dimensions from the U.S.A were to take
a job in a US company. Indicate what steps ( policies, practices , training etc. ) you believe the US
company should take to help accommodate the differences.

Q7 Write brief notes on any two of the following: 6+6

(a) The situational Leadership model of Hersey and Blanchard.

(b) The three levels of organizational culture .

(c) Managerial implications of Vroom's expectancy model of motivation.

( d ) Five styles of conflict management.

 Case 1 : Ford Motor Company

The Ford Company was barely breathing when Alan Mulally became CEO in 2006. The
company recorded massive losses as its sales and reputation plummeted. Despite the worst
economic downturn in 50 years , Ford production efficiency , customer satisfaction ratings, and
market share were soaring .Five out of six Ford employees said their company was heading in
the right direction. Mulally has been hailed as a turnaround champion by transforming Ford into
the most successful and competitive automaker in America. The turnaround at Ford under Alan
Mulally has been described as nothing short of spectacular. It's gone from posting record
multibillion-dollar losses in 2006 when he took over, to five consecutive years of annual profits.

How did this remarkable corporate transformation occur? Most observers point to Mulally's
vision for change ("One Ford- One Team, One Plan , One Goal"), which focused everyone on
one brand(Ford) with a few models that have global platforms. This change was difficult because
executives jealously guarded their vehicle badges and built their products mainly for the North
American market. Ford's transformation was also painful. It shuttered 16 manufacturing
facilities , laid off many staff , sold off peripheral brands (e.g. Land Rover, Jaguar) , and
negotiated lower labour costs.

Mulally, previously a senior executive at Boeing ,took a hands on role to change Ford's
defensive and territorial culture . He joined staff in visiting customers and industry groups. He
held numerous town hall meetings , repeating the same message : Everyone needs to cooperate
more across divisions and focus more on customers than on careers. He also emphasized the
urgency for change : 'We have been going out of business for 40 years, "Mulally quipped at
several sessions.

Mulally shook up Ford's bureaucratic defensiveness by persistently challenging Ford engineers

and executives to answer tough questions about quality and profitability. " Why haven't you
figured out a way to make profit?" he asked one group about the losses of the Ford Focus. When
a few offered lame answers about costs and sales quotas ,Mulally shot back: "That's not what I
asked ! I want to know why no one figured a way to build this car at a profit." To reinforce this
change , Mulally created a pilot project —a special global task force that designed and engineered
a new Focus with the same chassis , features and name around the world. Today the Ford Focus
is Mullally's "proof point" —a beacon of his "One Ford" vision.

Mulally's toughest challenge was to nurture an executive team that focused on "One Ford" rather
than departmental fiefdoms. He partially accomplished this goal through weekly business
planning review meetings , where his 16 direct reports were required to pay close attention to
each other's presentation slides. Private chats and other distractions were prohibited."If you
aren't comfortable with that , you might be more comfortable leaving the company", said
Mulally with a friendly , yet meaningful , tone.
According to Mulally, a turnaround isn't about the executives at the top or their brilliant strategy.
It's about figuring out a way to get every employee to understand the vision of the company, buy
in to the plan, and feel supported in their jobs. If people aren't optimistic, they're not going to
make the sacrifices and do the work required to turn things around.

It's a remarkably humble leadership style for an executive as prominent as Mulally. And it's a
fascinating way to think about fixing a company. Here's how he puts it:

"At the most fundamental level, it is an honor to serve - at whatever type or size of organization
you are privileged to lead, whether it is a for-profit or nonprofit. It is an honor to serve. Starting
from that foundation, it is important to have a compelling vision and a comprehensive
plan. Positive leadership-conveying the idea that there is always a way forward - is so important,
because that is what you are here for - to figure out how to move the organization forward.
Critical to doing that is reinforcing the idea that everyone is included. Everyone is part of the
team and everyone's contribution is respected, so everyone should participate."
He illustrates that with an analogy. If employees stopped production, the previous Ford managers
would have jumped down their throats, asking what they were doing and why the stoppage
happened. Mulally says now managers ask, "What can we do to help you out?"

That approach has been much more productive and efficient at solving problems, he says.
Employee buy-in is taken so seriously at Ford that some employees carry a card that details the
business plan on one side, and the culture and expected behaviors on the other.
 CASE STUDY 2 : RIDING THE EMOTIONAL ROLLER COASTER

Louise Damiani's work is an emotional roller coaster most days. The oncology nurse at CentraState
Healthcare System in Freehold Township, New Jersey, soars with joy when patients beat their cancer
into remission. Then there are the low points when her patients are given grim news about their cancer.
She also battles with the frustration of office politics.

But even after a long shift, Damiani doesn't let her negative emotions surface until she gets into her car
and heads home. "You have to learn how to pick and choose and not bring that emotion up," Damiani
advises. "You say, 'OK, I can deal with this. I can focus on the priority, and the priorit)' is the patient.'"

As well as managing her own emotions, Damiani has mastered the skill of creating positive emotions in
others. She recently received an award in recognition of her extraordinary sensitivity to patients' needs
and concerns. For example, one of Damiani's patients wanted to return to her native Mexico but, with
an advanced stage of cancer, such a journey wasn't possible. Instead, Damiani brought "Mexico" to the
hospital by transforming a visitors' lounge into a fiesta-type setting and inviting the patient's family,
friends, and hospital staff to attend the special event.

Lisa Salvatore, a charge nurse at the recently built Leon S. Peters Burn Center in Fresno, California, also
recognizes that her job involves supporting patients' emotional needs, not just their physical problems.
"With burns, you don't just treat something on the outside," she says. "You treat something on the
inside that you can't see." Salvatore also experiences the full range of emotions, including the urgency of
getting burn patients out of emergency within an hour to improve their prospects of recovery. " I like
high stress. I like trauma," she says. Still, she acknowledges the emotional challenges of treating children
with burns. " I deal with it and then I cry all the way home. I just sob on my way driving home."

Anil ShandLl, a medic from the 328th Combat Support Hospital in Fort Douglas, Utah, has witnessed
more severe burns and injuries than most medical professionals. For two years at the Landstuhl Army
Regional Medical Center in Germany, he aided soldiers who had been wounded in Iraq or Afghanistan.
The tour of duty was extremely emotionally taxing. "You get a lot of severed limbs , a lot of traumatic
brain injuries, a lot death and dying," says Shandil. "So the compassion fatigue is rather high." People
who work closely with victims of trauma often suffer compassion fatigue, also known as secondary
traumatic stress disorder The main symptom is a decreasing ability to feel compassion for others.

In spite of the risk of compassion fatigue, Shandil has volunteered for an even more challenging
assignment: He and 85 other soldiers in the 328th are now in Iraq providing medical care for Iraqi
detainees being held there by the U.S. military. So, along with managing emotions from constant
exposure to trauma cases, these medics must also show respectful compassion to those who fought
against their American comrades. Shandil knows it will be hard. "Yes, these are people who were not
kind to us. But as a medic, it's our job to care for them, no matter if that is your friend or your enemy".
 Your roll no •
FACULTY OF MANAGEMENT STUDIES
UNIVERSITY OF DELHI
MBA-Executive and MBA-Executive (Health Care Administration)
Lyri stSemester Examination,November 2015

MBAex 8102: Quantitative Methods for Management

Time: 3 hours Maximum marks:70

Important instructions:
1. Answer any FIVE questions, selecting, at least TWOquestion from each section. All
questions carry equal marks.
2. Non-programmable calculators, Graph sheets and Statistical tables can be used.

Section A

1. Data displayed below represent the number of cars using a toll-plaza on different days at
Highway no. 61.

950 1700 1080 1400 1020 x 1530 1950 1250 ' 800 2000
1500 1850 900 1100 1100 1400 2100 1300 1150 1650
1400 1500 2000 1700 1200 1700 1400 1050 1000 1650
950 1600 1500 1200 1450 1150 1200 1050 1200 1500
) 1050 1100 1800 1050 1300 1350 950 1000 1350 1600

Form a frequency distribution and percentage distribution that have five

) class intervals.

(ii) Construct a histogram.

(iii) Find the mean, mode and coefficient of variation.

(iv) Is the distribution symmetric? If not, comment on its skewness.

2.(a) A survey is taken among customers of a fast-food restaurant to determine preference for
hamburger or chicken. Of 200 respondents selected, 75 were children and 125 were
) adults! 120 preferred hamburger and 80 preferred chicken. 55 of the children preferred
hamburger.

Page 1 of 8
 (i) What is the probability that a randomly selected individual is a child and
prefers chicken?
(ii) Assume we know that a person has ordered chicken. What is the probability
that this individual is an adult?

(b) A company that sells annuities must base the annual payout on the probability
distribution of the length of life of the- participants in the plan. SuppCise the probability
distribution of the lifetimes of the participants is approximately a normal distribution
with a mean of 68 years and a standard deviation of 3.5 years.
(i) What proportion of the plan recipients die before they reach the standard
retirement age of 65?
(ii) Find the age at which payments have ceased for approximately 86% of the
plan participants.

3. The management of a chain electronic store would like to develop a model for
predicting the weekly sales (in lakhs of Rupees) for individual stores based on the
number of customers who made purchases. A random sample of 12 stores yields the
following results:
Customers Sales (Lakhs of Rupees)
1907 11
1926 12
1713 8
1741 9
1780 9
1898 10
1510 6
1529 7
1460 6
1872 9
1650 8
1603 7

Page 2 of 8
 (i) What is the correlation coefficient between the two variables?

(ii) How will you classify the linear relationship?

(iii) Using linear regression, develop a model to help in the prediction.

[ For y = a + b x; a = (EY - b(ZX)) / n; b = (nZXY - (a)(EY)) / (NZX2 - (a)2)]

4.(a) What is inferential statistics? What role sampling plays in it?

Describe with examples, the difference between cluster sampling and stratified
sampling methods.

(b) A car manufacturer claims that on an average owners of its latest model drive their cars
for 20000 kilometers before their first paid service maintenances. A random sample of
121 such car owners revealed that before sending their cars for service maintenance the
owners drove them an average of 20250 kilometers. This sample data had a standard
deviation of 720 kilometers. Do this sample information support the manufacturer's
claim? Test at 0.05 level of significance.

Section B

5.(a) First hulian Bank issues five types of loans. In addition, to diversify its portfolio, and to
minimize risk, the bank invests in risk-free securities. The loans and the risk-free
1 securities with their annual rate of return are given in the following Table:

Page 3 of 8
Table: Rates of Return for Financial Planning Problem

Type of Loan or Security Annual Rate of Return (%)

Home mortgage (first) 6

Home mortgage (second) 8

Commercial loan 11

Automobile loan 9

Home improvement loan 10 •

Risk-free securities 4

The bank's objective is to maximize the annual rate of return on investments subject to
the following policies, restrictions, and regulations:
i. The bank has Rs.90 crores in available funds.

ii. Risk-free securities must contain at least 10 percent of the total funds available
for investments.

iii. Home improvement loans cannot exceed Rs.8,00,00,000.

iv. The investment in mortgage loans must be at least 60 percent of all the funds
invested in loans.

v. The investment in first mortgage loans must be at least twice as much as the
investment in second mortgage loans.

vi. Home improvement loans cannot exceed 40 percent of the funds invested in first
mortgage loans.
477

vii. Automobile loans and home improvement loans together may not exceed the
commercial loans,

viii.Commercial loans cannot exceed 50 percent of the total funds invested in

mortgage loans.

Page 4 of 8
 Formulate the above-problem as a Linear Programming problem. You are NOT required
to solve the problem to optimality.

(b) Consider the following Linear Programming (LP)model. Find out whether optimal
solution could be found to for this problem.

Maximize: 2X + 2Y
Subject to
X+2Y>= 12
8X + 7Y >= 56
2Y >= 5
X <= 9
X, Y >= 0

If you could not find the optimal solution, specify the reason for it.You can use the
graphical method for analysis.

6.(a) Consider the case of North-West District Health Department, which needs to build
primary health care clinics to serve seven communities (named A to G) in the region.
Clinics are to be established in these communities. Each clinic can serve communities
within a maximum radius of 30 minutes' driving time, 'and a community may be served
by more than one clinic. The following Table shows the time in minutes it takes to
travel between the seven communities.

Page 5 of 8
 TO

FROM A

®0
A 15 20 35 35 45 40
B 15 0 35 20 35 40 40
C 20 35 0 15 50 45 30
D 35 20 15 0 35 20 20
E 35 35 50 35 0 15 40
F 45 40 45 20 15 0 35
G 40 40 30 20 40. 35 0

Formulate the above problem as an integer linear programming problem with a view to
minimizing number of clinics that would be needed and that would cover all the
communities.

(b) Consider the following LP formulation and find out its solution
Maximize Z = 80X1 + 70X2

Subject to

2X1 + X2 <= 120

X1 <= 70
X1 +X2 <=60
Xl, X2>= 0
What kind of solution is it referred to? You can make use of graphical method of
solution.

Page 6 of 8
7. XYZ Company purchases tobacco and stores in warehouses located in the following
four cities:
Warehouse location Capacity (Tonnes)
City A 90
City B 50
City C 80
City D 60

The warehouses supply tobacco to cigarette companies in three cities that have the
following demand: 4-

Cigarette Company Demand (Tonnes)

Bharat 120
Janta 100
Red Lamp 110

The following railroad shipping costs per ton (in Rs '00) have been determined:

Warehouse Bharat Janta Red Lamp

location
A 7 10 5
B 12 9 4
C 7 3 11
D 9 5 7

Because of railroad construction, shipments are temporarily prohibited from warehouse

at city A to Bharat Cigarette Company. Formulate the above problem as a transportation
problem. Also find out the initial basic feasible solution by applying Least Cost Method.

8.(a) The fOreman of a machine shop wants to determine a minimum-cost matching for
operators and machines. The foreman has determined the hourly cost for each of four
operators for four machines, as shown in the following cost table.

Page 7 of 8
 Machine
A B C D
Operator 1 70 80 75 64
2 55' 52 58. 54
3 58 56 64 68
4 62' 60 67 70

Determine the minimum-cost assignment of the above problem.

(b) Consider the sensitivity report of the following problem

Microsoft Excel 14:0 Sensitivity Report 'For changes to OFC values

Worksheet: [4-2.xlsjAnderson Home Electronics in this range, current
solution remains optimal.
Variable Cells
FlitaR Reduced Objective Allowable AlloWabIe-' Allowab
C Name Valtie: Cost Coefficient!, Increase Decrease decrees(
$13$0,' Solution value MP3 Player 0.;00 • -1.00 29.00 1.00 1E+37 infinity s
SC$6 Solution value Satellite Radio Tuner 1 38030 0.00 32.00 40.00 1.67 1 product
10$5 LSolution value LCD TV . 0.00 -8.00 72.00 3.00 1E-i-304 attractiv
at currer
$E15 Solution value Blu-Ray DVD Player 10.60A10 • 0.001 54.00 10.00 5.00
OFC val
Constraints
Final Shadow j Constraint I Allowable 'Allowable;
i
Cell I Valtie, Price R.H. Side i Increase 1 Decrease
SFS10 'Electronic components 47.0(k0 2.00 4700.00 2600.001 950.00
'$F$11 ;Win-electronic components 3940.00, / 0.00 • 4500.00 1E4.301 560.00
; SF$12 'Assembly time !maga / 24.00 2500.001 466.671\ 132.5700

Since nonelectronic `The allowable increase'',

components are is infinity since there
nonbinding, shadow are already 560 units
price is zero. ' of slack. °
......__

Answer the following questions:

What is the impact on profit if the supply of electronic components is
increased by 400 units?
(ii) What would happen if the supplier of these 400 units of electronic
components charges an additional $1 per unit for supply of electronic
components?
If MP3 players are forced into production, what would be the impact on total profit?

Page 8 of 8
 MBA Exe and MBA HCA
I Year I Semester
Paper: MBAEX 8103
Managerial Economics
Maximum Time: 3 Hours
Maximum Marks: 70
November, 2015

NOTE: Attempt Five Questions. All questions carry equal marks.

Question 1:
Indian Holiday has estimated the following demand curve for packaged holiday tours in
Bangalore, India using quarterly data for the past 6 years:

AD -1.10p 0.5 A 3.8 A 2.5T I.85

y -1—ly fAx

Where:
Q,, represents the quantity of Indian Holiday's tours sold;
13, is the average Indian Holiday's tour price;
P, is average price of other tours;
Ay is Indian Holiday's tour advertising;

A, is advertising for other tours, and

I is per capita disposable income.

With reference to above, attempt the following:

a) Is the above model linear (explain why or why not)? How do you infer demand
elasticities in this model? Is it a constant elasticity demand function? Why?
b) Is Indian Holiday's tour demand elastic with respect to price? Why?
c) Are Indian Holiday's tours a normal good? Explain your stance.
LI) Is a complement good or a substitute good to Indian Holiday's tours'? Substantiate
your stand.
e) Given your answer to part (b), can you explain why the demand effects of A, and A, are
both positive?
3+3+3+3+2=14
Question 2:
a) Comment on the economic effects of Price Ceilings and Price Floors on Market
Outcomes. Will the effects vary with time?
b) Derive, explain and illustrate the relationship between AR, TR, MR and price elasticity of
demand.
7+7=14
Question 3
a) The HindGarTex Company assembles garments entirely by hand even though a textile
machine exists that can assemble garments faster than a human can. Workers cost Rs.100
per day and each additional laborer can produce 400 more units per day (i.e. marginal
product is constant and equal to 400). Installation of the first textile machine on the
assembly line will increase output by 3,600 units daily. Currently the firm assembles
5,400 units per day.
i. The financial analysis department at HindGarTex estimates that the price of a
textile machine is Rs. 1200 per day. Can management reduce the cost of
assembling 5,400 per day by purchasing a textile machine and using less labor?
Why or why not?
ii. The Textile Workers of India are planning to strike for higher wages.
Management predicts that if the strike is successful, the cost of labor will increase
to Rs.200 per day. If the strike is successful, how would this affect the decision in
part (i) to purchase a textile machine? Explain and illustrate.
b) What is the optimal input level in the case of one variable input production function?
7+7=14

Question 4
a) What is a shut-down point in the short run? Long run? Represent the short run shut down
point of a firm graphically.
b) Explain the characteristic features of a monopolistically competitive market structure.
Cite at least 3 examples of monopolistically competitive firms.
7+7=14

Question 5
a) Give at least five examples of price discrimination. Illustrate price discrimination,
graphically.
b) Given two isolated markets supplied by a single monopolist, let the two corresponding
demand functions be:
= 12 - Qi and P2 = 20 - 3Q2
Suppose the monopolist's TC function is:
C = 3 + 2 (Q1 + Q2)
Calculate the equilibrium P, Q and rc under a regime of Price discrimination.
In which market is the price charged higher? Why?
7+7=14
Question 6
Comment on the price output determination under Profit maximization and Sales maximization
using TR-TC approach and MR-MC approach. Explain mathematically the MR-MC approach;
and graphically the TR-TC approach.
14

2
Question 7
a) The breakfast cereal industry is heavily concentrated. In this industry, Kellogg, General
Mills, General Foods (Post) and Ralcorp account for over 85 percent of industry sales.
Advertising by individual firms does not convince more people to eat breakfast. Effective
advertising simply steals sales from rivals. Big profits could be had if these rivals could
simply agree to stop advertising. Kellogg can choose either row in the payoff matrix
shown below, whereas General Mills can choose either column. The first number in each
cell is Kellogg's payoff; the second number is the payoff to General Mills. This is a one-
shot, simultaneous move game.

General Mills
Strategy Advertise Do not Advertise
Advertise $800 million; $800 million $1.5 billion; $600 million
Kellogg Do not Advertise $600 million; $1.5 billion $1 billion; $ 1 billion

i. Briefly describe the Nash equilibrium concept.

ii. Is there a Nash equilibrium strategy for each firm? If so, what is it?
iii. How might the outcome change if this game were repeated over many
advertising seasons?
b) Why is it often stated that there is no general theory of oligopoly, but a number of models
of various degrees of realism?

7+7=14
* * * * *** * *

3
 Your Roll No.

MBA-Executive and MBA-Executive (HCA)

I year 1st Semester November 2015

Paper MBAEX 8104 — ACCOUNTING FOR MANAGERIAL DECISIONS

Time: 3 Hours Maximum Marks: 70

(Write your Roll No. on the top immediately on receipt of this question paper.)
Attempt any five questions in total. All questions carry equal marks.
Make suitable assumptions .wherever necessary

Q.1 X Ltd. keeps its records without the help of an accountant. After much effort, an outside
) accountant prepared the following unadjusted trial balance as of the end of the annual accounting
period, December 31, 2011:
Account Tiles Debit Credit
Cash $ 19,600
Accounts Receivable $ 7,000
Supplies $ 1,300
Prepaid Insurance $ 900
Equipment $ 27,000
Accumulated Depreciation $ 12,000
Other Assets $ 5,100
Accounts Payable $ 2,500
Wages payable
Income taxes payable
Note payable (two years; 12% interest due each December 31) $ 5,000
Contributed capital (3,000 shares outstanding all year) $ 16,000
Retained earnings $ 10,300
Service revenue $ 48, 000
) Remaining expenses (not detailed; excludes income tax) $ 32, 900
Income tax expense
Totals $ 93, 800 $ 93, 800
Data not yet recorded at December 31, 2011 include:
a. Depreciation expense for 2011, $ 3,000
b. Insurance expired during 2011, $450
c. Wages earned by employees but not yet paid on December 31, 2011, $ 2,100.
d. The supplies count on December 31, 2011, reflected $ 800 remaining supplies on hand to
be used in 2012
e. Income tax expense was $ 3,150
Required:
1. Record the 2011 adjusting entries.
2. Prepare an income statement and a classified balance sheet for 2011 to include the effects
of the preceding five transactions.
3. Record the 2011 closing entry. [14]

Q.2 Ingersol Construction Supply Company is developing its annual financial statements at
December 31, 2012. The statements are complete except for the statement of cash flows. The
completed comparative balance sheets and income statement are summarized as follows:
:

/
 2012 2011
Balance Sheet at December 31
Cash $ 34,000 $ 29,000
Accounts Receivable 45,000 28,000
Merchandise inventory 32,000 38,000
Property and Equipment 121,000 100,000
Less: Accumulated Depreciation (30,000) (25,000)
$ 202,000 $ 170,000
Accounts Payable $ 36,000 $ 27,000
Wages Payable 2,200 1,400
Notes Payable, long-term 40,000 46,000
Contributed Capital 86,600 70,600
Retained Earnings 37,200 25,000
$ 202,000 $ 170,000
Income Statement for 2012
Sales $ 135,000
Cost of Goods Sold 70,000
) $ 37,800
Other Expense
Net Income $ 27,200
Additional Data:
a. Bought equipment for each, $21,000.
b. Paid $ 6,000 on the long-term note payable.
c. Issued new shares of stock for $ 16,000 cash.
d. Dividends of $ 15,000 were declared and paid.
e. Other expenses included depreciation $ 5,000; wages $ 20,000; taxes $ 6000 and other $
6,800.
f. Accounts payable includes only inventory purchases made on credit. Because there are no
liability accounts relating to taxes or other expenses, assume that these expenses were fully paid
in cash.
Prepare the statement of cash flows using the indirect method and direct method for the year
ended December 31, 2012. Evaluate the statement of cash flows. [14]

Q.3 Answer the following:

I. X Ltd. has prepared the following statement for the month of April 2015:
Particulars Budget Details Static Budget Actual
Units produced & sold 4,000 3,200
Rs. Rs.
Direct Material 3 Kg per unit@ Rs. 15 per Kg 1,80,000 1,55,000
Direct Labour 1 hour per unit@ Rs. 36 per hour 1,44,000 1,12,800
Variable Overheads 1 hour per unit@ Rs. 22 per hour 88,000 73,600
Total Cost 5,02,000 4,25,400
Sales 6,00,000 4,48,000
Profit 98,000 22,600
During the month 10,000 Kg of materials and 3,100 direct labour hours are utilised.
Compute material, labour and overhead variances. [9]
IL A shoe manufacturer has a net profit of Rs. 25 per pair on a selling price of Rs. 143. He is
producing 6,000 pairs per annum which is 60% of the potential capacity. The cost per pair is as
under:
Direct Materials Rs. 35.00
Direct Wages Rs. 12.50
Works Overheads (50% fixed) Rs. 62.50
Administrative Overheads (75% fixed) Rs. 6.00
Other Fixed Overheads Rs. 2.00
During the current year the manufacturer also estimates demand of 6,000 pairs but anticipates
that the fixed charges to go up by 10% while the rate of direct labour and direct materials will
increase by 8% and 6% respectively. But he has no option of increasing the selling price. Under
this situation he obtains an offer to utilise further 20% of capacity. What minimum price will you
recommend to ensure an overall profit of Rs. 1,67,300? [5]
2
Q.4 Answer the following:
I. A Pharmaceutical company produces formulations having a shelf life of one year. The
company has an opening stock of 30,000 boxes on 1st January, 2005 and expected to produce
1,30,000 boxes as was in the just ended year of 2004. Expected sale would be 1,50,000 boxes.
Costing department has worked out escalation in cost by 25% on variable cost and 10% on fixed
cost. Fixed cost for the year 2004 is Rs. 40 per unit. New price announced for 2005 is Rs. 100
per box. Variable cost on opening stock is Rs. 40 per box. You are required to compute
breakeven volume for the year 2005. [6]

IL X Ltd. is about to introduce a new aroduct with the following estimates:

Price per unit (in rupees) Demand (in thousand units)
30 400
31.50 380
33 360
34.50 340
36 315
37.50 280
39 240
Costs:
Direct material Rs. 12 per unit
Direct labour Rs. 3 per unit
Variable overhead Rs. 3 per unit
Selling expenses 10% on sales
Fixed production overheads Rs. 14,40,000
Administration expenses Rs. 10,80,000
Judging from the estimates, determine the tentative price of the new product to earn maximum
profit. [8]

Q.5 Answer the following with suitable illustrations:

I. Discuss diagrammatically the flow of costs
IL Discuss the direct and indirect cost classification vis-a-vis cost classification on the basis of
variability
III. Master Budgeting
IV. The PLN Co. presents the following static budgets for 4,000 units and 6,000 units activity
levels for October 2015:
Activity Level
4,000 units 6,000 units
Overhead A Rs. 12/hr. x 2 hr. / unit Rs. 96,000 Rs. 1,44,000
Overhead B Rs. 1,40,000 Rs. 1,90,000
Overhead C was omitted to be listed out. It is a fixed plant overhead, estimated at Rs. 12.50/hr. at
4,000 units activity level. This has to also feature in the flexible budget. The actual production
was 5,000 units and 9,600 hours were needed for production.
Prepare a statement showing the Flexible Budget amount of each overhead to enable appropriate
comparison with the actual figures. [14]

Q.6 Answer the following with suitable illustrations:

I. Discuss financial statement analysis as an effective tool for investment decisions [10]
II. Accounting is the art of recording, classifying and summarizing information [4]

3
 MBA Executive / INCA — November 2015
MBAEX 8105 : Marketing Management
Time : 3 Hours &fax. Marks : 70

Answer any five questions

1. "Major task of marketing management is to adapt a firms marketing strategy to the (14)
opportunities and challenges in the changing environment". Discuss this statement in the
context of banking industry.

2. Suggest the suitable pricing approach along with reasons for your choice for the
following:
(14)
(i) Luxury brand of wrist watch
(ii) Hardware items being sold as commodity
(iii) Direct-to-home broadcasting service

3. (a) What are the requirements for a segment to be effective?

(b) Discuss the various segmentation bases being used by mobile service providers to
segment the market in the present scenario in India.

4. (a) Differentiate between 'Pull' and 'Push' promotion strategies.

(b) A large medical equipment-manufacturing firm is planning to introduce digital
blood-pressure monitoring machine at lower price point and with wide distribution
network in the market with an emphasis on capturing marketing share. Suggest
suitable promotion mix and media mix for it.

5. Select any product in consumer market and explain its channel structure in terms of the
following dimensions:
(i) the number of levels through which the product passes.
(ii) the intensity of its distribution (14)

(iii) the types of middlemen

6. (a) What is the rationale for a typical S-shaped sales curve of product-life-cycle?
(4)
(b) Identify the product-life-cycle stage in terms of its characteristics for the following
products:

(i) credit cards

(ii) smart phones
(10)
(iii) organic fruits and vegetables

(4)
7. (a) Outline the steps of consumer decision-making process.

(b) Discuss the macro-environmental factors, which may affect marketing programme of
the firms selling:
(10)
(i) skin care products for men
(ii) ready-to-eat foods

8. Explain the following growth strategies along with examples:

(i) market penetration

(ii) market development
(iii) product development
 MBA (EXE) & INCA-1: NOVEMBER 2015
MBAEX8106 - MANAGERIAL FINANCE

Time: 3 hours Maximum marks: 70

Instructions: Attempt any five questions. All questions carry equal marks.

1. XYZ Ltd. has issued bonds of face value Rs 1000 at a coupon rate of 10% p.a. These are currently
available at Rs 990. Five years remain to maturity and bonds are redeemable at par. Also, the
company has issued 15% irredeemable preference shares of face value Rs 100 each with current
market price being Rs 96. Further, it also has equity shares of face value Rs 100 each in its capital
structure, on which it has just declared a dividend @ 15%. The expected future growth rate in
dividend is 12% p.a. and the share is currently trading at Rs 168.
The following balance sheet information is also available:
Equity share capital (20000 shares of Rs 100 each) Rs 20,00,000
Preference share capital (5000 shares of Rs 100 each) Rs 5,00,000
Retained earnings Rs 10,00,000
10% debentures of Rs 1000 each Rs 15,00,000
Calculate WACC.

2. a) A company needs Rs 5,00,000 for construction of a new plant. The following three financial
plans are feasible: (a) The company may issue 50,000 ordinary shares at Rs 10 per share; (b) The
company may issue 25000 ordinary shares at Rs 10 per share and 2500 debentures at Rs 100
each bearing 8% interest; (c) The company may issue 25000 ordinary shares at Rs 10 per share
and 2500 preference shares at Rs 100 per share bearing 8% dividend.
If the company's earnings before interest and taxes are Rs 10,000, Rs 20,000, Rs 40,000, Rs
60,000 and Rs 1,00,000, what are the EPS under each of the three financial plans? Which
alternative would you recommend and why? Assume the corporate tax rate of 50%.
(7 marks)
b) What are mutually exclusive projects? Explain the conditions under which conflicting ranking
would be given by IRR and NPV methods to such projects. (7 marks)

3. The CFO of Emory Infrastructure has projected the following cash flows for projects Alpha, Beta
and Gamma as follows:
Year Project Alpha Project Beta Project Gamma
0 -Rs. 1,00,000 -Rs. 2,00,000 -Rs. 1,00,000
1 70,000 1,40,000 75,000
2 70,000 1,40,000 65,000
Suppose the relevant discount rate is 12% per annum.
a. Calculate the payback period for each of the three projects. Based on this measure, which
project would you recommend that the firm invest in?
b. Compute the profitability index for each of the three projects. Based on this measure,
which project would you recommend that the firm invest in?
c. Compute the NPV for each of the three projects. If the projects were independent, which
project would you recommend based on NPV?
 d. If the projects were mutually exclusive, which project would you recommend based on
N PV?
(The present value factors at 12% for 1 and 2 years are 0.893 and 0.797 respectively.)

4. What do you mean by capital structure? Can a firm affect its overall cost of funds by varying the
mix of financing sources used? Describe the traditional view on optimal capital structure.
Compare and contrast this view with the NOI and NI approach.

5. a) What are the different types of working capital requirements? Explain the various approaches
to management of working capital financing. (7 marks)

b) From the following, compute Net Operating Cycle in days.

Period covered 365 days

Average credit period allowed by suppliers 16 days
Average debtors outstanding Rs 4,80,000
Raw material consumption Rs 44,00,000
Total production cost Rs 100,00,000
Total COGS Rs 105,00,000
Sales Rs 160,00,000
Value of average stock maintained:
Raw material Rs 3,20,000
WIP Rs 3,50,000
Finished goods Rs 2,60,000
(7 marks)

6. a) Explain stock split. How does it differ from bonus shares? (7 marks)
b) What are the real world factors that affect dividends? What is the relationship between a
firm's dividend policy and clientele effect? (7 marks)

7. a) In what ways is wealth maximization objective superior to profit maximization objective?

Explain. (7 marks)
b) What is agency conflict? How can the agency problem be resolved? (7 marks)
 $107 MITO End term Question Paper Nov 2015 Page 1 of 2

Delhi University
Faculty of Management Studies
MBA(EXE) &HCA —I MBAEX 8107 Managing IT for Organization

Time: 3 hours Max. Marks: 50

INSTRUCTIONS

All question carry equal marks 10

1 This is a cloSed book examination. No hard copy or any electronic items such a laptop, tablets,
mobile phones allowed.
2 Please write precise and legible answers. The Question paper has two sections, A and B
)
Use of MITO theoretical frame works and models while answering your question will be
3 rewarded. Mention all assumptions taken while answering Case Questions

SECTION A Marks 30 (10x3)

Select any ONE company to answer any THREE questions (from question 1-6 )
Company Choices :
a. Skill building University on the web
b. A micro financing company with a bank licenses(e.g. Bandhan Bank)
c. Any well-known retailer (e.g. Big Bazar) threatened by e-retailers
d. Your own company , hospital or institution where you work.(describe
what this company does in one paragraph)
)
Question 1 e Is IT a competitive necessity or Competitive differentiator for
) the company? Which all Business and IT Alignment perspective will you
choose using Venkatraman's framework?
Question 2. Identify various levels of information system for the company
giving examples at each of the levels. Plot these Information systems along
the value chain. Identify Departmental, corporate, and interorganizational
IS for this film.
Question 3 o How will you establish various service management
processes in this company. What best practices will you adopt? What
framework will you adopt for IT Governance?

Question 4 : Do you think the company needs a strategic view on project,

program and portfolio management. Classify various IT projects using
portfolio management approach and define the sequence in which will you
implement them.

j
Please turn over and read all pages
 8107 MITO End term Question Paper Nov 2015 Page 2 of 2

Question 5 What are the different types of Cloud computing models that
this company can adopt. What are the associated benefits and risk for each
of these category. How can the company mitigate each risk and use the
emerging cloud technology. Give your answer with reason.

Question 6 o What is the need of enterprise Architecture for this company.

Draw the enterprise Architecture and give suitable example as applicable for
this company. .

Section B

Answer any two questions from the following (Question 7 to 11)

Question 7 Describe in brief the COTS package selection Life cycle.

Name and explain at least five best practices of Successful COTS
implementation. Why requirement engineering is essential whether we buy
COTS or develop applications in-house.

Question 8 What is PMO and why do we need it? What are the roles and
responsibilities? Explain it using five senses metaphor. Define various
maturity stages of PMO.

Question 9 o What is the most important objective of a Hospital that IT can

impact? Explain how IT could help in prevention, monitoring and
treating patients of dengue. Draw Care Delivery Value Chain and Health
care film Value Chain to explain your answer.

Question 10 What is the most important objective of Government that IT

can impact? What are the different stages at which IT can impact the
functioning of govt, explain by drawing modified Venkatraman framework.
Name applications along these stages used in the government. What are
challenges faced during the IT implementation in government.

Question 11 : What is the need of Strategic IT Planning for an organization.

Describe the integrated IT Planning framework by drawing a suitable
diagram. Explain each stages and final deliverables from SITP exercise.