(DBUS 31)

M.B.A. DEGREE EXAMINATION, JUNE 2010.

Final Year

(A-Financial Management)

Paper I — SECURITY ANALYSIS AND PORTFOLIO

MANAGEMENT
Time : Three hours Maximum : 75 marks

PART A — (3 × 5 = 15 marks)

Answer any THREE questions.

1. (a) What is systematic risk?

(b) What are the steps in construction of

portfolio?

(c) What is weak form of efficiency?

(d) What is Technical Analysis?

(e) What do you know about Portfolio Revision?

(f) What is breadth of market?

 PART B — (3 × 15 = 45 marks)

Answer any THREE questions.

2. What are the different functions of stock market in

India while investing?

3. What are the functions of investment markets?

4. What are the different things to be considered

under economic analysis?

5. What are the advantages of Mutual Funds?

6. Explain different charts used under Technical

Analysis.

7. Assume that the risk free rate of return is

7 percent. The market portfolio has an expected
return of 14 per cent and a standard deviation of
return of 25 per cent under equilibrium condition
as described by CAPM. What would be the
expected return for a portfolio having no
unsystematic risk and 20 percent standard
duration of return?

PART C — (15 marks)

8. Mr. X has been owing units from three different
mutual funds namely R, S and T. The following
particulars are available to him. He wants to
dispose any one of the mutual fund for his
personal expenditure. Which should he dispose?

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Funds Excess Average Return Beta
R 7.7 1.02
S 11.3 .99
T 11.6 1.07
Market 7.8 1.00

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M.B.A. DEGREE EXAMINATION, JUNE 2010.

Final Year

A – Financial Management

Paper II — MANAGEMENT OF FINANCIAL

SERVICES

Time : Three hours Maximum : 75 marks

PART A — (3 × 5 = 15 marks)
Answer any THREE questions.

1. (a) Leasing finance and operating.

(b) Exchange traded funds.
(c) Certificate of deposit.
(d) Hire purchase.
(e) Non banking finance corporations.
(f) Venture capital.
PART B — (3 × 15 = 45 marks)
Answer any THREE questions.
2. What are credit rating agencies? Explain the
procedure of rating.
3. Explain Housing finance with special reference to
National Housing Bank.
4. What are the functions of stock broking?

5. What are the functions of a merchant banker?

6. Explain the services of electronic and retail

banking.

7. What is issue management process?

PART C — (15 marks)
(Compulsory)

8. 20th Century Leasing Company Ltd., provided you

the following information and requested you to
suggest whether the lease proposed feasible or not,
using NPV method.
Cost of asset Rs. 20,00,000
Cost of capital is 10%
Rate of depreciation 10%
Economic life of the asset 10 yrs
Tax rate 35%
Lease rental per year Rs. 6,00,000.

——————

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M.B.A. DEGREE EXAMINATION, JUNE 2010.

Final Year

(A-Financial Management)

Paper III — PROJECT MANAGEMENT

Time : Three hours Maximum : 75 marks

SECTION A — (3 × 5 = 15 marks)

Answer any THREE questions.

1. (a) What is feasibility Analysis?

(b) What is Planning Time Scales?
(c) What is Project Control?
(d) What is Project Evaluation?
(e) What are the equipments used in project
planning?
(f) What is data and information?

SECTION B — (3 × 15 = 45 marks)

Answer any THREE questions.

2. Explain the steps in formulation of detailed project

reports.
3. Describe the similarities and dissimilarities
between PERT and CPM.

4. Discuss the objectives of Network Analysis.

5. Explain the role of Human Resource in

implementation of the Project.

6. Discuss the significance of computers in

evaluation of the project.

7. Describe the process of integrated Project

Management Control System.

SECTION C — (15 marks)

Compulsory.

8. Soft Drinks Ltd., processes and distributes frozen

Orange juice and other citrus products. The
company owns a few groves, but most of its
oranges are supplied by independent growers
under long term contracts.
The firm's plant in Ooty is a highly profitable
operation, which will continue as long as Oranges
are available in the area. However, at the end of
10 years the firm's contract with the Ooty growers
expires, and the company does not expect it to be
renewed. Since the groves are in the rapidly
expanding Kodai Road area, which will be ripe for
development within 10 years, the company will
probably have to shift its operation to new
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location. However, because the of the contract with
the growers, the company has an assured source of
supply for atleast 10 years. Management analyses
all decisions relating to Ooty plant on the
assumption that the operation will close down in
exactly 10 years.
The plant is currently using a juice press that has
been fully depreciated. The existing press can be
used to another 10 years, but maintenance costs
are high, the press extracts less juice per orange
than do new presses, and operating labour costs
are higher than with new presses. Although the
old press has been completely written off and has
a zero book value, it could be sold for Rs. 37,500
(but taxed as ordinary income).
An equipment supplier has offered Soft Drinks
Ltd., a choice of two new juice presses. Machine
A has a cost of Rs. 3,97,500, an expected life of 5
years, and a calculated savings in costs of
Rs. 1,09,500 p.a. Machine B costs Rs. 6,64,500, has
an expected life of 10 years, and will provide
savings of Rs. 1,14,525 p.a. The Company’s
management does not expect any improved
presses to come on the market during the next 5
years. If estimates that machine A can be bought
for Rs. 3,63,600 in 5 years. Moreover in decisions
such as this one, Soft Drinks makes the
assumption that inflation will push up operating
costs and revenues by equal amounts so that
operating cash flows will remain the same in years
6-10 as in years 1-5. Further the management
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feels that new machines will have no
salvage value and depreciate accordingly by
straight line method.
The company is in the 40% tax bracket, it uses
10% cost of capital for replacement decisions, and
it is not subject to capital rationing. Its tax
position permits it to use the maximum
investment tax credit, currently 10% on assets
with lives of eight or more years, two-thirds of 10%
for assets with six or seven years lives, and one-
third of 10% for assets with four or five year lives.
In addition, management expects the tax credit to
still be in effect five years from now. Mr. Raj,
assistant to financial vice-president of the
company must make a recommendation on the
replacement. Should he recommend for replace-
ment and if so, which machine A or B?
Questions :
(a) Calculate the NPVs for machines A and B.
(b) How would each of the following factors
affect your recommendation?
(c) The company is subjected to severe capital
rationing.

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 (DBUS 34)

M.B.A. DEGREE EXAMINATION, JUNE 2010.

Final Year

(B-Marketing Management)

Paper I — SALES AND ADVERTISING

MANAGEMENT
Time : Three hours Maximum : 75 marks

SECTION A — (3 × 5 = 15 marks)

Answer any THREE of the following.

1. (a) Sales Job Analysis.

(b) Interpersonal skills.
(c) Sales Budget.
(d) Media Mix.
(e) Sales Cost Analysis.
(f) Promotional Management.

SECTION B — (3 × 15 = 45 marks)

Answer any THREE of the following.

2. Define sales and Distribution Management.

Explain its scope and interdependence.
3. Describe sales force management. Explain
different motivational theories.

4. What is sales planning? Explain various

forecasting and budgeting methods.

5. Define communication process on marketing.

Elucidate different promotional mix in marketing.

6. Explain the process of Training and evaluating the

sales executives.

7. Explain the role and importance of Advertising in

Marketing Management.

SECTION C — (15 marks)

(Case Study)

8. SALES PROMOTION Godrej-GE Appliances

Company Profile

Godrei is one of the leading white goods producing

company.

Every year the company announces various

promotional schemes to increase its products
frequency of purchase.

Such schemes are more active during the festive

season.

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Scheme
Keeping the festive season in mind, Godrej has
announced “No 1 Super Hit Dhamaka”.
Details about the Scheme: This scheme includes
various offers for customers such as free gifts,
monetary discount, elc.
Duration 20th 31st Sept. 1998
Strategy of Promotion
High value promotion strategy.
Competitive promotion strategy
Consumer promotion strategy
Advantages of Scheme
Induce trial
Increase in frequency of purchase
Utilisation of existing resources
Optimum use of Festive season Competitors
Analysis
Whirlpool. (Offer for the Season)
Sony Cordless Worth Rs. 3,445
Philips Iron worth Rs. 745
Titan Watch worth Rs. 445
Kelvinator : (Offer for the season)
Rs. 1251 off on a purchase of fridge.

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Free gift such as Prestige 3L Pressure Cooker.
Valid till stocks last.
Questions :
(a) Critically analyse the sales promotion
scheme of GODREJ-GE APPLIANCES.
(b) Compare the scheme with competitor’s
scheme.
(c) Would you like to give any suggestions for
the improvement of the scheme?

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 (DBUS 35)
M.B.A. DEGREE EXAMINATION, JUNE 2010.

Final Year

B – Marketing Management

Paper II — MARKETING OF SERVICES

Time : Three hours Maximum : 75 marks

SECTION A — (3 × 5 = 15 marks)

1. Write short notes on any THREE of the following :

(a) Consumer Banking.
(b) Difference between hospitality and tourism
services.
(c) After sales service.
(d) Corporate hospitals.
(e) Public utilities.
(f) Professional support services.

SECTION B — (3 × 15 = 45 marks)

Answer any THREE questions.

2. Critically explain the process of designing the

strategy for service marketing.
3. What are the various financial services? Explain
the marketing of financial services with reference
to Citi Bank.

4. Define services marketing. Explain in detail the

marketing of hospitality and tourism services in
India.

5. Evaluate the differences between the marketing of

educational and professional services.

6. Explain the concept of marketing services and its

basic issues.

7. Describe the marketing approach in India. Discuss

the role of consumer in marketing.

SECTION C — (15 marks)

(Compulsory)
Case Study :

Branding of ING Vysya Bank and the Group

8. THE ING group has indicated that it will wait for
the terms and conditions of the Government before
taking any decision on increasing its stake in the
domestic banking and life insurance arms. The
group holds 44 per cent stake in ING Vysya Bank
and 26 per cent stake in the ING Vysya
Life Insurance Company. Reacting to the

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Government’s proposal to permit 74 per cent
foreign stake in private sector banks, Mr. Bart
Hellemans, Managing Director and CEO, said:
“We do not know the terms and conditions of this
proposal. We will wait till then. I have no specific
comment to make on the proposal. Mr. Hellman’s
was speaking to newspersons the launch of a
common branding of all financial services arms,
including the ING Mutual Fund.

Through common branding, the group plans to

project its global reach and prowess in managing
money for customers worldwide. “The ING Vysya
will offer an integrated financial solutions package
to all customers in the country.” The corporate
campaign will attempt to create greater awareness
of ING Vysya, which operates in the country
through a 500-br network in 300 centers. This is
the first time that the group is conducting such an
integrated campaign throughout the country after
it assumed majority control in Vysya Bank and
followed it up with a change in the bank’s name.
So far, the bank has been leveraging on the brand
created by the 72-year-old parent. “The campaign
will also focus on creating the awareness of the
changes in the group and its new image as an
international financial services provider.”
The bank currently has a customer base of about
two million, deposit base of close Rs. 10,000 corer
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and investments equivalent to Rs. 5,000 corer as of
the first half of the cu fiscal.
(a) Comment on the branding strategy of ING
Vysya group for all financial services.
(b) Observe some of the advertising of the group
including ING Vysya Bank. Comment! The
logo and its relevance to financial products
which ING group sells.

——————

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M.B.A. DEGREE EXAMINATION, JUNE 2010.

Final Year

(B-Marketing Management)

Paper III — RURAL MARKETING

Time : Three hours Maximum : 75 marks

SECTION A — (3 × 5 = 15 marks)

Answer any THREE questions.

1. (a) Scattered markets.

(b) Adopter groups.
(c) Physical distribution.
(d) Formal media.
(e) Rural promotion strategy.
(f) Product modification decision.

SECTION B — (3 × 15 = 45 marks)

Answer any THREE questions.

2. A firm planning to venture into rural areas faces

lack of infrastructural facilities. What are these
problems and how can the firm cope with them?
3. Discuss the scope of marketing Research with
regard to consumer goods.

4. Elaborate the product strategies followed by

leading consumer goods companies in rural
market.

5. Describe the job of a rural sales person and how it

differs from urban counter part.

6. Discuss the importance of Melas, mandis in rural

distribution and promotion.

7. What are the constraints in distribution in rural

areas? Explain.

SECTION C — (15 marks)

8. Case study :
Mr. Harish panjwani was a refugee when he
started his small grocery business about 40 years
back. Initially he hawked his goods door to door
and soon developed a sizeable number of study
customers. This was largely due to his sober
temperament, reliable dealing and his amiable
nature. His extrovert nature helped him develop
many friends and well wishers.
Over a period of time, Mr. Panjwani became a
socially prominent person with good acquaintances
from many walks of life. He expanded the range of
his business activities and he now owns several

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shops dealing in consumer durables, dairy
products and also has a general, store, besides a
large medical shop. Having a conservative frame
of mind, he feels emotionally attached to his
original grocery business and continues to operate
it with enthusiasm. His business place has ever
come to be associated with a meeting venue for
people of his generation.
His Children are grown up and elder one, Rajesh
has just returned from abroad after completing his
management education there. Ambitious by
nature, Rajesh would like to expand his business
fast. He feels that he needs to be ‘professional’ in
his approach. In his option, his father's way of
dealing with people is outdated. Many a time, he
feels irritated when his father's Old friends drop in
at the shops and spend time talking with him.
Rajesh feels that this type of casual come together
is a waste of time. He would prefer to be more
‘business’ like. He would like to deal with them as
customers only, Serving them with precision and
in a methodical manner. He expects that his
customers should appreciate this ‘modern’ way of
doing business. He has, however, broached his
inner feelings only in an indirect way to his father,
and he found that his father believes in
maintaining close personal links with his

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customers. Some of the customers have, anyhow,
started noticing the change in the way in which
Rajesh deals with them. They feel that the Old
‘warmth’ of their relationship with the ‘senior
panjwani is somehow missing and they are now
less welcome at the shops.
Questions :

(a) What do you think is the contribution of

personal relationship in such a business?

(b) Do you agree with the approach adopted by

Rajesh? Do you have any suggestion to
make?

———————

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 (DBUS 37)

M.B.A. DEGREE EXAMINATION, JUNE 2010.

Final Year

C-Human Resource Management

Paper I — HUMAN RESOURCE PLANNING AND

DEVELOPMENT
Time : Three hours Maximum : 75 marks

SECTION A — (3 × 5 = 15 marks)

Answer any THREE questions.

1. (a) HRD climate.

(b) Difference between HRM and HRD.
(c) Monitoring the HRD activities.
(d) Task analysis.
(e) Training as part of HRD.
(f) Supply forecasting.

SECTION B — (3 × 15 = 45 marks)

Answer any THREE of the following.

2. Define Human Resource Planning. Explain the

concept and process of Human Resource Planning.
3. What is Demand forecasting? Explain different
methods and techniques for demand forecasting.

4. Explain different strategies for Human Resource

Development.

5. What do you mean by Human Resource

Development? Explain different motivational
aspects of HRD.

6. Describe Human Resource Development for

Health in relation to Family Welfare.

7. Explain briefly the main issues in HRD.

SECTION C — (15 marks)

(Compulsory)

8. Case Study:
As a result of economic reforms initiated in the
recent past, the Indian economy has been
globalised. The regulations and controls have been
relaxed. Many more multinational corporations
have been inclined to make their entry in India.
Consequently, market dynamics, especially nature
of competition has been drastically changed.
Indian organizations are finding it difficult to
compete with their counterparts coming from
outside. Suppose you are a manager in one of the
well established pharmaceutical company already
working in India for the last 25 years. To compete

2 (DBUS 37)
with multinational corporations you Personally
feel that production is as well as distribution
systems are to be made cost effective so that better
quality of medicines can be produced and
distributed at reasonable cost. For improving cost-
effectiveness of the system you carry opinion that
your organization is overstaffed. You are bringing
this fact to the knowledge of the Managing
Director. She is discussing; her problem with you
in the light of human resource planning and
development. The Managing Director of the
company is asking you ; he following questions :
(a) How to proceed for making manpower
Planning? Discuss various steps involved in
it.
(b) How wills you convince your Managing
Director that manpower planning and
development would help in making
production and distribution systems cost
effective?

———————

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 (DBUS 38)
M.B.A. DEGREE EXAMINATION, JUNE 2010.

Final Year

C – Human Resource Management

Paper II — MANAGING CHANGE IN ORGANISATIONS

Time : Three hours Maximum : 75 marks

SECTION A — (3 × 5 = 15 marks)

Answer any THREE questions.

1. (a) Define ‘change’.

(b) Simulation.

(c) Organisational dynamics.

(d) Factors influencing resistance to change.

(e) Process of evaluation of organisational change.

(f) Intervention in organisational change.

SECTION B — (3 × 15 = 45 marks)

Answer any THREE questions.

2. Explain in detail the key process of organisational change.

3. Describe the process of managing resistance to change.

4. Explain the issues and concepts of organisational diagnosis.

5. Elucidate the salient features of diagnostic methods.

6. Critically explain the process of managing change with relation to any organisation.

7. What are the different models of organisational change? Explain them briefly.

SECTION C — (15 marks)

(Compulsory)

8. Case study

There are many areas where organizational change will affect the management of human
resources at all levels in the years ahead. One area is the career ladder, where successful
managers are often finding that the road to the top is a lot slower than it used to be. “Hurry
up and wait” appears to have replaced “hurry up and succeed.” In contrasting the
organization manager of the 1970s and 1980s with today’s manager, some of the primary
differences appear to be these: (1) every career move used to be directed toward promotion up
the hierarchy, but now, with flattened structures, lateral moves are becoming more routine
and, in some cases, even desirable; (2) promotions often used to come every few years, but
now they come more slowly, and while the job title may not change, it is likely that the
responsibilities will; (3) success used to mean job security all the way to retirement, but
today it often means inner fulfillment and money; and (4) the workweek used to be forty
hours, but now it lasts until the job is done–however long that may take.

In addition, there are other changes that warrant mention. One is the trend towards
information technology’s replacing middle managers, resulting in the reduction of the overall
number of managers in industry. A second is the use of small, empowered, self-managed
teams that will do more of the work, thus reducing the need for managerial staff. A third is
the use of total quality concepts that stimulate managers to work both harder and smarter.

As stated, the cumulative effects of these changes are a slow or now even nonexistent
promotion rate. More firms are moving from a bureaucracy with rewards tied to time on the
job to a meritocracy where people are rewarded for effective performance. To better measure
performance, organizations are leaving people in their jobs for a longer period of time so that
they can see how well the person has really done. A pet food marketing manager at Quaker
Oats put it this way: “I got to see the effects of changes I made and to work through their
implications. It helped me learn to approach every job as a long-term opportunity, to stand
back and ask what changes we need to make in this whole picture, even if it has been done
one way for the last fifteen years.” Others point out that it will become more important to be
a generalist than a specialist. An executive search recruiter recently noted: “In the future
everybody will have strategic alliances with everybody else, and the executives who thrive
will be well-rounded. You can’t be a specialist at senior levels anymore.”

Does this mean that today’s managers are pleased with the new trends and that they are
more committed to the organization than ever? Hardly. A recent poll comparing managerial
responses in 1959 and thirty years later found that, on average, today’s managers rank their
companies lower in virtually every category, including advancement opportunity, job
security, a place to work, and job satisfaction. The only category that was fairly close was job
satisfaction. Of the four categories, it is the only one that is most under the personal control
of the manager. Simply put, career opportunities are not as good as they were previously, but
managers are learning to live with the situation.

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Questions :

(a) In what way will new flatter organization structures affect the career potential of
managers?

(b) Is the trend toward slower promotions good or bad? Why?

(c) How can OD be used to help individuals handle career planning problems? Give some
examples.

———————

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M.B.A. DEGREE EXAMINATION, JUNE 2010.

Final Year

(C-Human Resource Management)

Paper III — ORGANISATIONAL DYNAMICS

Time : Three hours Maximum : 75 marks

SECTION A — (3 × 5 = 15 marks)

Answer any THREE questions.

1. (a) Matrix organisation.

(b) Group thinking.
(c) Clicque.
(d) Informal Organisation.
(e) Political behaviour.
(f) Transactional Analysis.

SECTION B — (3 × 15 = 45 marks)

Answer any THREE questions.

2. Define ‘‘Group’’ and state the characteristics of

group. Discuss the factors influencing group
formation.
3. What are the causes of emergence of informal
groups? How should a manager handle these
groups?

4. Define group cohesiveness. What are the sources

of cohesiveness?

5. Discuss strategies for Imploving group decisions.

6. ‘‘Job Stress can have psychological and

behavioural effects’’. Explain.

7. Discuss the reasons for various types of conflicts

can organisation suggest measures to resolve
inter-group conflicts.

SECTION C — (15 marks)

(Compulsory)

8. As a result of economic reforms initiated in the

recent past, the Indian economy has been
globalised. The regulations and controls have been
relaxed. Many more multinational corporations
have been inclined to make their entry in India.
Consequently, market dynamics, especially nature
of competition has been drastically changed.
Indian organizations are finding it difficult to
compete with their counterparts coming from
outside. Suppose you are a manager in one of the
well established pharmaceutical company already
working in India for the last 25 years. To compete

2 (DBUS 39)
with multinational corporations you personally
feel that production is as well as distribution
systems are to be made cost effective so that better
quality of medicines can be produced and
distributed at reasonable cost. For improving cost-
effectiveness of the system you carry opinion that
your organization is overstaffed. You are bringing
this fact to the knowledge of the Managing
Director. She is discussing; her problem with you
in the light of human resource planning and
development. The Managing Director of the
company is asking you; he following questions:
(a) How to proceed for making manpower
planning? Discuss various steps involved in
it.
(b) How wills you convince your Managing
Director that manpower planning and
development would help in making
production and distribution systems cost
effective?

———————

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 (DBUS 40)

M.B.A DEGREE EXAMINATION, JUNE 2010.

Final Year

D-International Management

Paper I — INTERNATIONAL BUSINESS

Time : Three hours Maximum : 75 marks

SECTION A — (3 × 5 = 15 marks)
Answer any THREE of the following.
1. (a) Global sourcing.
(b) Tariff barriers.
(c) Foreign Direct Investment.
(d) Exim policy.
(e) External Commercial Borrowings (ECBs).
(f) World Bank.
SECTION B — (3 × 15 = 45 marks)
Answer any THREE of the following.
2. What do you mean by “International Business”.
State the scope and importance of International
Business.
3. Discuss the factors of economic environment and
their influence on international business.
4. Discuss the merits and demerits of multinational
corporations in general.

5. Discuss the strategies to be employed by a global

company. Explain the strategy implementation
methods.

6. Highlight the performance of IMF in maintaining

international liquidity and in promoting
multilateralism.

7. What is international product life cycle theory?

Explain.

SECTION C — (15 marks)

(Compulsory)

8. Case Study
One of the banners one saw during the
demonstration at Seattle proclaimed the WTO was
not the World Trade Organisation but the Wrong
Trade Organisation. It was the wrong trade
organisation because it involved itself with trade
which (as the protestors saw it) spoilt the
environment and promoted unacceptable working
conditions for labourers in the poor countries. In
the face of it, the charge is clearly not acceptable,
but then, do the demonstrations have a point at
all?

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The Seattle demonstrations said that in large
parts of the developing world, the production of
goods that ultimately generated higher trade
figures rested on unsatisfactory working
conditions. Their point was that the WTO was not
doing anything to ensure that such production did
not enter the stream-of globally traded items.
Since trade (being only one part of pure economic
activity) cannot set the standards either in labour
on the environment, the WTO should not get into
these sphere of activity but should restrict itself to
policing international trade activity taking as
given, the prevailing labour and environment
standards.
It can also be argued that since not much effective
work is being done in both the labour and
environment spheres by way of tightening upon
standards by the different international forums
currently engaged in the task-the International
Labour Organisation, and so on-there is no
alternative but to tighten the screw of these
related aspects of trade activity within the WTO
itself.
There are some who will argue that the entire
effort to involve the WTO with the labour and
environment aspects of trade and environment
aspect of trade is actually a part of the larger
effort by some developed countries to reduce the
comparative advantage which poor countries enjoy
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by way of lower overall production costs, which
makes their products cheaper in the World
Market.
If this is correct, then the point needs to be
emphasized that the WTO is the right trade
organisation, which is being sought to be
influenced and controlled by the wrong sort
people.
Questions :
(a) What are the basic limitations of World
Trade Organisation?
(b) Why is the World Trade Organisation called
Wrong Trade Organisation?
(c) How does WTO affect India particularly in
agriculture and in labour aspects?

———————

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 (DBUS 41)
M.B.A. DEGREE EXAMINATION, JUNE 2010.

Final Year

D – International Management

Paper II — INTERNATIONAL FINANCIAL

MANAGEMENT

Time : Three hours Maximum : 75 marks

PART A — (3 × 5 = 15 marks)

Answer any THREE questions.

1. (a) What is the finance function of International

Finance?
(b) What are exchange rate risks of an
enterprise?
(c) What are the main documents of foreign
trade?
(d) Final Act of GATT.
(e) What are the different balances under
balance of payments?
PART B — (3 × 15 = 45 marks)
Answer any THREE questions.
2. What are the recent changes in Global Financial
Markets?
3. How Foreign exchange risks are managed?

4. What are the major market segments in Global

Capital Markets?

5. What are various techniques of International Cash

Settlements under International Working Capital
Management?

6. What are the translation methodologies under

International Activities?

7. The treasurer of an Indian firm wishes to borrow

three month funds in the euromarket. The
accessible rates are as follows :
3-month DEM : 6.50% 3-month £ : 10.25 %

3-month SFr : 4.50% 3-month $ : 8.75%

The three month spot and forward rates against

the rupee are :

Rs. /$ spot : 30.00 90-day forward : 30.8257

Rs. /DEM spot : 20.00 90-day forward : 20.6642

Rs. /£ spot : 50.00 90-day forward : 50.7550

Rs. /SFr spot : 21.75 90-day forward : 23.1050

If the corporate policy is to cover all exchange

risks, in which currency should he borrow?

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 PART C — (15 marks)
(Compulsory)

8. A company will need to buy after 4 months a

Forward Rate Agreement (FRA) from a bank to
borrow for 3 months. The 4/7 FRA is quoted at 6.5.
What will the company do if after 4 months,
the rate.
(a) Rises to 7%
(b) Falls to 6%
(c) Remains at 6.5 percent.

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 (DBUS 42)
M.B.A. DEGREE EXAMINATION, JUNE 2010.

Final Year

(D-INTERNATIONAL MANAGEMENT)

Paper III — INTERNATIONAL MARKETING

Time : Three hours Maximum : 75 marks

SECTION A — (3 × 5 = 15 marks)

Answer any THREE questions.

1. (a) Product life cycle.

(b) Legal and political environment.
(c) Import-Export policy.
(d) International market pMix.
(e) Product policy.
(f) International Market Research.

SECTION B — (3 × 15 = 45 marks)

Answer any THREE questions.

2. Explain the conceptual frame works of

International Marketing.
3. What are the driving and restraining forces
influencing the International marketing?

4. Explain in detail the economic environmental

frame work for international marketing.

5. Describe the various international pricing policies.

6. Define planning, coordination and control of

international market planning.

7. Explain in detail the distribution and Sales Policy.

SECTION C — (15 marks)

Compulsory.

8. Case Study.
Prefabricated houses are not new. Some well-
known mail-order retailers started selling such
house’, in the United States decades ago. One
advantage of this type of housing is quick
assembly-only a few days are needed. Another
buying incentive is lower price clue to mass
production. There is another advantage of the
assembly-line approach: better quality control. The
major disadvantage is, of course, the product’s
image There is no prestige in living in a prefab
house, and the uniform look does not enhance
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consumer perception. Although mass production
has generally negative connotations, it does not
appreciably hurt such durables as refrigerators,
automobiles, and sound equipment. Yet, for
housing the negative image is quite
Overwhelming.

In Japan, where land and housing costs are

outrageous, prefab houses are a I necessity to
many. One Japanese firm that has acquired
technical know how in manufacturing prefab
houses is Misawa Homes. One of its popular
designs is House 55. I this model has ten capsules,
requiring five large “containers’ for transportation.
The model’s advantage is that rough assembly can
be accomplished in just two hours. Another
strength is its price-20 percent lower than
conventional prefab houses and 30 percent less
than wood houses. The model was exhibited at
trade fairs in Europe and received a great deal of
interest. Encouraged. Misawa Homes wanted to
export its House 55 houses to Europe and the
United States.
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Questions
(a) Do you think that such prefab houses as
House 55 can gain consumer acceptance in
the United States arid Europe?
(b) Even supposing the absence of U.S.
consumers’ negative reactions, are there any
factors that pose no problem in Japan and
yet would create difficulties in the United
States?
(c) What should be Misawa’s strategy to enter
overseas markets with the product?

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4 (DBUS 42)