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Ms-93 December, 2011 Management of New and Small Enterprises
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comDecember, 2011
Ms-93 : Management of New and Small Enterprises
SECTION - A
1. (a) Examine the role of Govt.-of
(b) "Entrepreneurial Competencies and skills can be developed through suitable training
Interventions" Comment.
2. (a) Discuss the role of Non-Financial Institutions in
(b) What factors a small entrepreneur should keep in mind while making the choice of suitable technology for his venture ?
3. (a) How would you assess the market demand for a new product ?
(b) Discuss the advantages and disadvantages of partnership form of business organization.
4. (a) What are the hurdles faced by a small business in arranging Bank Finance in
(b) What in market segmentation ? If you were an entrepreneur in the packaged food business, what basis would you use to segment your market. Give reasons for your choice.
5. (a) "An appropriate plant lay out can lower the cost and enhance the productivity" Discuss.
(b) What does human resource planning entail in a small business ?
SECTION – B
Read the case study given below and answer the questions given at the end of case.
Case Study Mr. Amit Sharma recently retired from the Central government services. A physical fitness enthusiast and lover of nature and environment, Mr. Sharma has been leading an active life, regularly going to the gymnasium every morning. His wife, Meena, regularly practices yoga in the house. She has been trained by a popular yoga guru when she was much younger. The Sharma's two sons are very well educated. They are married and stay abroad. Their third . son is doing his final year in B. Com . in the local college. Mr. Sharma has been planning to start a business of his own from the retirement benefits
he has received from the Central government. He feels his third son may help him in the business after his graduation. Mr. Sharma had always felt concerned about the low standard of physical fitness of an average Indian. During his early morning walks, Mr. Sharma would discuss with the people and found that starting a health club would offer a
good business opportunity, besides fulfilling an important need of the community. He has visited many health clubs not only in
customers. He is, however, aware of the financial investment required for the project and would like to be careful before taking any long-term decision in this regard. He would like to estimate the possible demand for this type of service and an indication of the financial returns that he can expect.
6. (a) Suggest a step-by step procedure to estimate the market demand for this type of activity.
(b) How would you analyse the competitive situation for this enterprise ? Explain.
Ms-93 December, 2012 Management of New and Small Enterprises
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comDecember, 2012
Ms-93 : Management of New and Small Enterprises
SECTION-A
1. "Entrepreneurs ae self driven people with strong internal locus of control". Explain giving examples of some successful entrepreneurs.
2. What are the various financial institutions providing long and medium term loans ? Discuss their role in brief.
3. (a) What factors a small entrepreneur has to consider while deciding the location of the plant ?
(b) Enumerate the positive and negative sides of family business.
4. (a) What is meant by market segmentation? What are the bases for market segmentation ?
(b) Define "Advertising". What are the functions of advertising ?
5. What is Human Resource Management in small Industry ? What are the activities that are performed as a part of HRM in small business ? Discuss.
SECTION-B
6. Read carefully the case given below and answer the questions given at the end :
He can afford to blow his own horn, Loudly. And the reason lies right under your hood. After all, the 45-year-old K. Ramaswamy's Roots Industries (Roots) is the largest manufacturer of electric horns in the country. Of the 9.3 lakh horns sold in the replacement market each year, over half are branded Roots. And the man who built this Rs 12-crore start-up has even swung a tie-up with the German automobile components gaint, Bosch. "I can finally call my company a Bosch licensee, "says Ramaswamy proudly. By end-1994, Bosch will relocate a horn-making line from its La Carolina facility in
used to beat me why we couldn't make good horns in our country," he recalls. That, as he was to discover, was easier said than done. After aquiring a diploma in mechanical engineering from the
price to Rs.600. After Ramaswamy had lost Rs. 50 lakh on that product, he transferred his electric air horns business to Roots Auto. And by 1989, both Roots Auto and AAS had cornered market shares of 70 percent and 40 percent in the air and electric horn segments, respectively. In 1991, Ramaswamy renamed AAS Roots Industries to cash in on the brand's equity. Now, his strategy is clear : focus on quality, keep costs low, price high, and cap dealers' margins. Frugality is reflected in Ramaswamy's personal life. A devotee of Lord Muruga, he rises at
Questions :
1. What factors were responsible for the success of Ramaswamy as an entrepreneur ?
2. Evaluate the strategy "Focus on quality, keep costs low, price high and cap dealer's margins" adopted by Ramaswamy in terms of longterm implications.
Ms-93 June, 2013 Management Of New And Small Enterprises
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comJune, 2013
Ms-93 : Management Of New And Small Enterprises
SECTION-A
1. Briefly explain the meaning of Entrepreneurial competencies.Discuss the stages in which it is developed?
2. What are the factors which influence the decision for selection of site for a Small Scale Enterprizes (SSE). State the locational problems confronted in the selection of plant site with respect to single as well as multi-facility location.
3. Discuss the common errors committed in the formulation of a Business plan.
4. What are the functions carried out in work services and how are these managed ? Illustrate.
5. Write short notes on any four of the following:
(a) Total Performance Index.
(b) Inventory control
(c) Firm Flexibility
(d) Professionalisation in family Business.
(e) Market Demand Analysis.
SECTION-B
6. Read carefully the case given below and answer the questions given at the end of the case :
IT'S ALL ABOUT MONEY
Nirmal Jain came from a family of commodity traders.Over the years,they had made and lost large sums of money.After completing his postgraduation from TIM Ahmedabad,he decided to start his own venture rather than take up a job in the corporate world.Starting Probity Research,an equity research firm,really paid off.The nineties was the time the Indian masses had discovered the stock exchange as an investment vehicle and they needed all the advice they could get to understand this uncertain environment.By 1999,Probity Research had a turnover of almost one crore and things were looking good,But Nirmal was not happy; he wanted to try for something much bigger. It was around that time that the Internet too was having an impact on business and society in India.Anybody who knew a little about it was getting into some business based on the Net in the fear of missing out on something big.Nirmal too was excited about this new medium of communicating and doing business.He took a big risk and put all his content online by launching Indiainfoline.com.This put an end to the way he was conducting his business and opened up entirely new possibilities.Not everyone was convinced that he was on the right track.Many members of his top management at Probity Research left him and his family was apprehensive that he had prematurely ended a good business. Initially things seem to have worked out for the better. Even though he had not started making profits, Indiainfoline was making a name for itself and was able to gain very high visibility in the right circles. He was attracting interest from banks and venture capitalist alike. Indiainfoline became the first company to offer e-broking in
Questions :
(a) Do you think Nirmal Jain took a gamble by starting Indiainfoline?
(b) What are the external factors at work which prompted Nirmal Jain to take the plunge?
7. To facilitate small scale sector government has stipulated that investors bringing FDI in single brand retailing should source 30% of there products from small scale sector. Discuss the advantages and disadvantages of this measure for Small and Medium Enterprizes (SMES).
Ms-92 December, 2009 Management of Public Enterprises
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comDecember, 2009
Ms-92 : Management of Public Enterprises
SECTION –A
1. 'The changeover from public to private sector has taken a number of forms'. Critically comment on the statement taking into consideration the transformation of public to private sector.
2. What are the different types of audit ? Explain how public enterprises maintain a higher degree of accountability through audit process carried out by various government agencies ?
3. What do you understand by the concept of 'sickness' in case of public enterprises. What are the different causes of sickness ? Explain with suitable examples.
4. Write a note on the Public Enterprises Selection Board (P.E.S.B) , with respect to its functions, constitution and the selection procedure followed by them ? Discuss its relevance in today's context .
5. Write short notes on :
(a) Wage policy
(b) Voluntary Retirement Scheme (VRS)
SECTION – B
6. Unions, with few exceptions, have opposed privatisation of PSEs in general. Even in cases where full protection of workers interest is assured, they have been reluctant. The prevalent aversion, it appears sterns more from a conservative ideology than a rational outlook but there is more to this aversion.
(a) List out the factors which you think are responsible for aversion to privatisation.
(b) Explain the causes, which result in such kind of aversion.
(c) What in your opinion is the impact on the work culture of an organization which goes
for privatisation ? Explain.
Ms-92 June, 2010 Management of Public Enterprises
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comJune, 2010
Ms-92 : Management of Public Enterprises
SECTION –A
1. "
2. How corporate Governance is relevant in today's context in public enterprises ? Explore one successful enterprise of your choice, which is society oriented.
3. "Industrial sickness is threat to developing labour surplus economy". Justify, Also discuss the main turnaround strategies followed for revival and reconstruction of sick enterprises.
4 Describe the functions of Public Enterprises Selection Board. State the Government's policy regarding recruitment to various level posts in public enterprises.
5(a) Discuss the implications of disinvsetment on labour force. Also give suggestions to tackle such implications.
(b) Discuss the Policy of Privatisation.
SECTION –B
6. Critically evaluate the corporate Planning Process followed in SAIL.
7. Having understood the concept of marketing mix, develop marketing mix strategy for the following.
(a) Tourism Development Corporation
(b) State Financial Corporation
(c) Road Transport Corporation
Ms-92 June, 2011 Management of Public Enterprises
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comJune, 2011
Ms-92 : Management of Public Enterprises
SECTION – A
1. 'Economic development was sought to be achieved in different countries at different stages of development through different economic models.' Keeping this statement in mind list out the different models of economic growth. Discuss any two models.
2. Explain the various methods of parliamentary control and discuss their relevance in the present context.
3. Write a brief note on the financial performance of State Level Public Enterprises (1-31,Pfs) with special reference to State Electricity Boards (SEf.3s).
4. List out the various techniques of project Management used in Public Enterprises. Critically evaluate PERT and Critical Path Method (CPM).
5. Write short notes on :
Naresh Chandra Committee
Narayan Murthy Committee
SECTION-B
6. Over the recent past illy l rover!Iment of disinvested a part of equity of some of the Public Enterprises. What are the motivations behind such steps and how the Government plans to utilize the money ? What benefits are likely to ensure from the public point of view ? Discuss.
7. Over the past decade Indian Railways, by and large have shown improved performance, what are the reasons behind such performance ? Would you, in this context, support privatisation of the railways ? Justify
Ms-92 December, 2011 Management of Public Enterprises
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comDecember, 2011
Ms-92 : Management of Public Enterprises
SECTION - A
1. (a) What are the different objectives of public enterprises ? Explain in brief.
(b) What is the impact of economic reforms on the functioning of state of Public Enterprises in
2. Discuss the various dimensions of Government - PE interface. Also discuss the ways in which the Government control is exercised over the PEs.
3. (a) Discuss the methods/techniques which can be helpful in project implementation.
(b) What methodologies can be used in project evaluation ? Discuss with examples.
4. Discuss the relevance of marketing in public enterprises. What marketing concepts in particular can be helpful in marketing of public enterprises ?
5. Describe the various steps in the process of disinvestment. Comment upon the pricing of shares in the context of recent experience.
SECTION – B
6. 'In
7. In the view of some knowledgeable people, Public Enterprises have become irrelevant and therefore, the structure of PEs needs to be dismantled. Critically evaluate and offer your own comments.
Ms-92 December, 2012 Management of Public Enterprises
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comDecember, 2012
Ms-92 : Management of Public Enterprises
SECTION-A
1. 'The patterns of ownership and management of public enterprises vary from country to country'. Discuss the ownership and management pattern of Public Enterprises in
2. Briefly discuss the role of some important organs of the government machinery interacting with Public Enterprises.
3. What is the importance of marketing concepts in Public Enterprises ? Discuss.
4. Briefly discuss the following :
(a) Voluntary Retirement Scheme (VRS).
(b) Wage Policy followed in Public Enterprises .
SECTION-B
6. Taking any Public Sector Enterprise of your choice. Analytically discuss the Personnel Policy followed in that PSE.
7. (a) What are the different forms of disinvestment followed in PSE in todays context ?
(b) Critically analyse the advantages and disadvantages of each form of disinvestment.
Ms-92 June, 2013 Management of Public
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comJune, 2013
Ms-92 : Management of Public
SECTION-A
1. Briefly describe the concept of socialism in context to Public Enterprises. Also discuss the emergence of Indian brand of socialism and its impact on the economic development of the nation.
2. Define 'Corporate Governance' and explain its concept. Comment on the recommendations made by Birla Committee (2001) and Naresh Chandra Committee (2002) on corporate governance.
3. How has public sector reforms played a role of a 'social developer' ? Discuss giving examples.
4. (a) How is a Board in the case of Public Sector Enterprises (PSEs) constituted ? Explain.
(b) What is the structure of Board of Directors of PSEs ?
5. List out various dimensions of privatization and explain any five with the help of examples.
SECTION-B
6. The public sector, with more than 130 Government of
List out the challenges a Public Enterprise faces in comparison to its private competitors. Support your answer with the help of examples.
7. The Public Sector has played a very important role in the national economic development in
Ms-91 June, 2010 Advanced Strategic Management
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comJune, 2010
Ms-91 : Advanced Strategic Management
SECTION – A
1(a) Discuss the nature and scope of Corporate Management. Is corporate management the same as corporate planning ?
(b) "Corporate strategy may exist at three levels." Explain. What are the distinctive characteristics of the three levels of strategy on the standpoint of various dimensions ?
Illustrate it with the help of a chart.
2(a) Why is the need for Corporate Governance felt ? Give a brief historical account of corporate governance in
(b) l5iscuss the functions and role of CEO in a company. What characteristics the Board of Directors of a company should possess in order to be really effective ?
3(a) What kind of strategic thrusts/actions are required during the different phases of Product Life Cycle ? Explain with the help of a chart.
(b) What basic approaches are available to a company to enter and complete in global markets ? Explain.
4(a) How can R and D be helpful in creating competitive advantage for a firm ? What are the pre-requisites for developing an effective R and D strategy ? Explain.
(b) Examine the relationship between innovation and strategic management. What characteristics the innovative organisations usually exhibit ? Discuss briefly.
5. (a) How are Business Ethics important for a firm ?Examine the relationship of business ethics with Corporate Social Responsibility (CSR). What consequences a firm may have to face in the short and long terms if it ignores business ethics ?
(b) Discuss the relevance of strategic philanthropy for business organizations. Illustrate your answer with examples from
SECTION – B
6. Select (and name) any one industry of your choice and then define/analyse its environment in terms of SWOT analysis, taking into accounts the major factors and influences currently operating in that industry.
7. After reading and analysing the following Case carefully, answer the questions given at the end.
Graniterock's "Short Pay" Policy: An Innovate Way to Promote Strategy Execution
In 1987, the owners of Graniterock, a 100-plus-year-old supplier of crushed gravel, sand, concrete, and asphalt in
Question
(a) What are the goals of an Innovative Organisation ? How these goals are accomplished by such Innovative
(b) Organisations like Graniterock. How Goals are turned into results by.such Innovative Organisations ?
More...
Ms-91 June, 2011 Advanced Strategic Management
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comJune, 2011
Ms-91 : Advanced Strategic Management
SECTION – A
1. (a) What could be the different approaches to corporate management ? Critically analyze them by pointing out their merits and demerits.
(b) Discuss the components of corporate strategy. How could a company obtain the advantages of synergy ?
2. In relation to the role of Board of Directors in a company, there are two sets of expectations : Law-related expectations and Managerially-derived expectations. Discuss these two sets of expectations by citing examples.
3. What effects different phases of the Product Life Cycle have on the various dimensions relating to the product, viz., nature of the product itself, buyer behaviour, marketing, competition, margins and profits, etc ? Explain and offer your comments. In what ways do industry environments vary in their basic strategic implications ?
4. (a) Discuss the use of IT in strategy implementation, particularly in relation to competitive strategy, value chain and value system.
(b) Discuss the knowledge management frame work as applicable to an organisation.
5. Briefly explain the following :
(a) Developing an effective R & D strategy
(b) Business importance of CSR
SECTION – B
6. Read and analyze the case study hereinafter carefully and answer the questions given
below :
Questions
(a) Describe ITC's e-Choupal initiative to engage the farmers to the next level. Flow is version 3.0 is different from the earlier two versions ?
(b) Analyze the proposed responses of the company to its competitors and offer your comments. What stages of evolution e-Choupal experiment has gone through ? What do think is the main strength of the programme and what could be the benefits to the innumerable farmers ?
(d) I-low can mass technology (e.g., mobile telephony) play a part in supporting the envisaged transformation of rural areas ?
ITC's e-Choupal
When you run Corporate India's largest, most ambitious and most celebrated rural initiative, you better know the following :
• That adversities could crop up unexpectedly.
• That some adversities can be turned into opportunities.
• And that every little opportunity has to be made most of.
It was so with ITC, the company behind the e-Choupal initiative that had reached four million farmers in six states in six Years till 2006. At one point, the company was opening 5-6 e-Choupals a day and had a target of reaching 100 million farmers. That hit a roadblock of sorts in 2006-07. The very basis of the e-Choupal's core business—commodity sourcing from farmers directly — was endangered with the government clamping down on companies trading with farmers directly. The trigger for the government reaction was the spike in wholesale price inflation, which rose close to double-digit figures in case of some commodities in 2006-07. Though the impact varied from state to state, the larger foreboding was loud and clear : The acts of government taken in the national interest could hobble e-Choupal's anchor business, even if temporarily. What does the company do then ? Roll out plans for Version 3 of e-Choupal that will add atleast two more anchor businesses to start with and deepen the engagement with individual farmers way beyond what was being done in Version 1 and 2. "The idea is to discover new anchor businesses and try and insulate the e-Choupal model from the risks of reversal in government's agri reforms," says S. Sivakumar, Chief Executive, Agri-Business, ITC, and the man who scripted the e-Choupal model of business. Many other Indian companies that had once entered rural markets, and had subsequently quit, are re-entering. Tata Chemicals, Mahindra & Mahindra are two such examples. Flow does ITC plan to respond to this competition ? By making better use of its unique social capital—the Sanchalak and the Samyojak framework. In the Sanchalak, ITC has its own man in the 40,000 villages it operates in. These men can steer e-Choupal into areas and activities the competitors cannot. For instance, the Sanchalaks will be the key men in organising Choupal Haats.
through the e-Choupals. For instance, an importer of processed foods in
>>VERSION 1.0
The Start
IDEA : To give power of scale to small farmers by aggregating them as sellers (of produce) and as buyers (of farm inputs)
FARMERS' GAIN : They get bargain and choice - the two key virtues of competition ITC'S GAIN : Access to inputs for its agri business; offer the use of network to other companies
>>VERSION 2.0
The Scale - Up
REACH : By 2006, 40,000 villages covering 4 million farmers
OFFERING : Network now offered five services :
- Information: Weather, price, etc.
- Knowledge : Farming methods, soil testing, etc.
- Purchase : Seed, fertiliser... to insurance
- Sales : Farmers sell crops to ITC centres
- Other : Cattle care, water harvesting, women employment etc
>>VERSION 3.0
The Deepening
NEW BUSINESSES : Add two new anchor businesses :
(1) Rural jobs and employability and
(2) Personalised agri services. Plus strengthen existing commodity sourcing
MORE INTERACTION : Through Choupal Saagars and Haats and via mobile phones
NEW TECHNOLOGY : Use of especially enabled mobile phones, in addition to PCs, for two - way interaction with farmers; use of analytics; new partners Technologically, it would mean adding mobile phones to the existing channels of Net-based computers and Choupal Saagars, the one-stop shops catering to all the needs of the rural community. As the company scoped around for new opportunities, it found many — some emerging from the adversities that have got it rethinking. These opportunities not only make transition to Version 3 possible, but also help modify the existing strengths of Version 1 and 2 (sec box above). It's spotting of these opportunities and turning them into current and future businesses that has become a case study in persevering with rural
Response : Offer them services they really need, and are willing to pay for Though the average farm productivity is still low in
thus generated could be of immense value to companies selling farm inputs (e.g. seeds, fertilisers, pesticides), financial firms and government planners. In sum , personalised agri services will add a second anchor business to e-Choupal —keeping its core philosophy of complementing the farmer's good with the company's good intact. Opportunity : Villages closer to towns moving away from agriculture Response : Provide job information and skill development services in villages With rural youth, especially in villages closer to towns, shunning agriculture and farm labour, ITC sees vast opportunities in using e-Choupals as centres for information on job vacancies and —eventually—providing skills that help increase the employability of rural youth. So, e-Choupals are also being geared as rural employment exchanges, which will connect the rural youth with jobs. This will be a new anchor business with a clear revenue model. Already, on
opportunities available to the rural population through this initiative will help improve employment in addition to facilitating corporate expansion plans in the rural market, " says Sanjay Modi, Managing Director, Monster.com (
Response : Increase the coverage area of each e-Choupal
The e-Choupals, right from Version 1, worked in a hub and spoke model. Each e-Choupal and its Sanchalak catered to several villages nearby. The average number of villages catered by an e-Choupal so far were six. With massive government investments in rural roads, connectivity between villages has improved. This allows ITC to potentially add more spokes to each of its hubs. Network reach can be easily expanded without making much fresh investments into it.
Ms-91 December, 2011 Advanced Strategic Management
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comDecember, 2011
Ms-91 Advanced Strategic Management
SECTION – A
1. (a) Discuss the various kinds of corporate strategy and under which conditionsieach strategy would be followed ?
(b) Explain the process of policy formulation. Is policy formulation different from strategy formulation ? Discuss.
2. Why is the need for corporate governance felt ? Discuss the subject in the context of Indian situation. What needs to be done further ?
3. Discuss the various approaches/modes of entering into foreign markets and point out their relative advantages and disadvantages. Under what conditions/situations each approach would be considered suitable ?
4. (a) How could R and D create competitive advantage for a firm ? What a firm could do to achieve competitive advantage in implementing its competitive strategy ?
(b) Briefly discuss the characteristics of innovative organizations.
5. Briefly explain the following :
(a) The changing business paradigm and the ethical dilemmas
(b) Characteristics of dynamic environment.
SECTION - B
Read and analyze the case study, hereinafter carefully and answer the questions given
below :
Subhiksha Trading Services (STS) Over the last nine months, R.Subramanian has aged much beyond his 43 years. The Managing Director of Subhiksha Trading Services-which pioneered the discounted retail format in
Table-1
SUBHIKSHA
YEAR OF FOUNDING: 1997
FOUNDER:
R. Subramanian,
IIT
TIM Ahmedabad
BUSINESS:
Discounted retail
FUNDING: R. Subramanian,
ICICI Venture (equity);
Consortium of Banks (debt)
EMPLOYEES: 14,000
(by end of 2008)
REVENUE:
Rs 2,305 crore (2007-08)
THE FLAMEOUT |
|
Year |
No. of Stores |
1997 |
10 |
1999 |
19 |
2000 |
50 |
2003 |
140 |
March 2007 |
670 |
March 2008 |
1,320 |
September 2008 |
1,650 |
February 2009 |
0 |
"Between 2006-07 and 2007-08 we doubled our stores, tripled our revenues and
almost quadrupled our profits - R. Subramanian "We opened our first shop in Chennai in March 1997 with funds from the financial services business, a team of passionate youngsters with little retail experience and a plan to set up a Chennai-centric retail business with low prices and high level of neighbourhood focus as the USP," recalls Subramanian. In the first year 10 stores were opened and the count rose to 19 by March 1999. By then Subhiksha was breaking even, volumes were picking up and customers were responding. Problems did arise initially though, as its unique discounting model enraged the retail trade in Chennai, which accused it of unfairly undercutting their business. By 2000 Subhiksha grew to nearly 50 shops in Chennai retailing groceries and medicines. ICICI Venture's decision then to pick up a 10 per cent stake in Subhiksha for Rs 15 crore gave the retailer enhanced credibility in the market. This money was used to expand outside Chennai, into the rest of Tamil Nadu. By 2002-03, Subhiksha had 140 stores across 30 towns in Tamil Nadu. Sales grew steadily. Cash flows were reasonable and debt, at Rs 15 crore against the net worth of Rs 23 crore, was comfortable. Expansion and Expansion : In 2004, the retail sector was seeing an enhanced level of activity. In what proved to be a watershed decision later in its brief history, Subhiksha decided to expand nationally and more so, scale up at a rapid pace. "We realised that we had done our bit in Tamil Nadu and it was time to go national. The question we faced was do we expand sequentially (one state at a time) or parallely (many states simultaneously) ? We opted for the latter," reveals Subramanian. “Between late 2004 and early 2007, Rs 160 crore worth of equity was raised. That apart, a debt of Rs 220 crore and a bridge loan of Rs 125 crore (pending raising of equity from capital markets) was arranged to fund the national rollout. On an average, 60 to 70 stores were added in a month. The pace of rollout is evident from the fact that till September 2006, Subhiksha had a store count of just 160, but by March 2007 it had shot up to 670 and by March 2008 to 1,320. By September 2008, it was 1,650-in all 1,500 stores were added ih just 24 months. "Business was growing like mad. Despite the cost pressures in 2006 after Reliance, the Birlas and others announced plans to enter retail, between 2006-07 and 2007-08 we doubled our stores (from 670 to 1,320), tripled our revenues (from Rs 833 crore to Rs. 2,305 crore) and almost quadrupled our profits (from Rs. 11 crore to Rs. 39 crore)." says Subramanian. By then Subhiksha had become the country's largest mobile phone retailer with an annual turnover of Rs 1,000 crore. Buoyed by its performance, Wipro Chairman Azim Premji, in March 2008, picked up the 10 per cent stake in Subhiksha that was offloaded by ICICI Venture for Rs 230 crore, pegging the company's valuation at Rs 2,300 crore. Expansion Funding : Debt our Equity. It was clearly the highest point in the retailer's history (and, in a way, beginning of its decline too). The company, which had been contemplating and postponing initial public offering (IPO) since 2007, failed to capitalise on Premji's investment and the goodwill it created to raise money from the market. "We kept thinking : why dilute equity for shareholders ? We wanted to keep equity low and raise more debt. This strategy will return better money for shareholders as stock market is booming. But we should have raised equity in March 2008. There was a lot of investor interest in Subhiksha. Not doing it then was a mistake." Concedes Subramanian. Subhiksha entered 2008-09 with a Rs 1,000-crore investment plan for increasing the store count to 2,200 (from 1,320 as of March 2008) and add a new line of business-consumer durables information technology (CDIT) products retailing. It was to be funded by Rs 400 crore equity and Rs 600 crore debt. In June 2008, it announced a merger plan with Blue Green Construction Ltd, a company listed on the Madras Stock Exchange, and which had done some research on the CDIT business. By then the stock markets had begun to weaken. "A weak market, we thought, would at best lower our valuation by 10 per cent or so. There was nothing to tell us that we were in for a complete collapse of the equity markets," explains Subramanian. The banks were getting worried too. The bridge loan of Rs 125 crore was coming up for repayment in September 2008 and there was no sign of equity. They were finding it difficult to lend. Working Capital for Expansion "By July 2008, we were finding it difficult to borrow. But we kept the expansion going as we were confident of raising equity. In fact, in September we had some good offers for equity but before we could grab it Lehman Brothers collapsed and the markets fell off," reveals Subramanian. In the absence of borrowings. Subhiksha made the cardinal mistake of diverting working capital to fund expansion. Consequently vendor payments were defaulted. They stopped supplies and the shelves ran empty. Salaries and other statutory dues were not paid. Security staff deserted their jobs and over 600 stores were vandalised in November-December 2008. "We desperately worked with various stakeholders to put something together to prevent a collapse. All we needed then was Rs 125 crore to be back in shape. Between September and November 2008, we had four meetings of the collective financial stakeholders. But unfortunately it was a period when liquidity was tight. Investors, too, could not do much as the markets were crazy," rues Subhiksha's founder, adding, "In a way we got into trouble at the wrong time." By end-February 2009 operations came to a standstill. Says Subramanian, "At this stage, everybody's reaction was emotional. There were people who said we should have been more careful in managing our money, which is perfectly right, and that we did not have a plan B." Independent directors quit, relations with ICICI Venture soured (it withdrew its nominees from the board and reportedly sought government investigation into the affairs of Subhiksha). Premji and ICICI Venture objected to the merger of Subhiksha with Blue Green Construction Ltd. Cash Flow Management ? Subramanian is now banking on the much-delayed Corporate Debt Restructuring (CDR) process (involving 13 banks with cumulative exposure of over Rs. 800 crore) to bring Subhiksha back to life. "I don't see ourselves getting back to 1,650 stores. We will probably restart about 1,200 stores once the CDR process is through. We should clearly be back in business in the second quarter of the current fiscal", claims Subramanian. He adds: "Regaining the credibility of vendors, lenders, investors and the employees will be the toughest challenge for us." Has the discounted retail model failed ? His response is quick: "Subhiksha's problem was cash flow mismanagement. We ran a profitable business. We were completely overconfident when it came to raising equity. If anybody wants to be a
serious grocery player in
Questions:
(a) What went wrong with STS ? What do you attribute as the reasons for its collapse ? Elucidate clearly.
(b) Did STS have a clear strategy ? What should have been the focus of STS ? What cost STS its business ?
(c) Can the company be revived or does revival seem a possibility ? If yes, how, present a plan of action; if no, why (give reasons) ?
(d) Was the expansion funding route adopted by STS justified. Give reasons.
Ms-91 December, 2012 Advanced Strategic Management
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comDecember, 2012
Ms-91 : Advanced Strategic Management
SECTION – A
1. Discuss in detail the nature and process of corporate planning and the importance of its implementation.
2. Bring out the historical perspective of corporate governance and discuss why has it become necessary for business houses to adopt a good corporate Governance.
3. Discuss the characteristics of dynamic environment and what are the strategic choices
available for a firm to compete in such an environment ? Give examples.
4. (a) Explain the role of information technology (IT) in strategy implementation.
(b) "IT is being extensively used by various service organisations to improve service delivery. " In the light of this statement discuss IT in service sector.
5. Write short notes on any four of the following:
(a) Importance of corporate policy.
(b) Cadbury Committee Report on Corporate Governance.
(c) Pricing Strategies.
(d) Competitive advantage and R and D.
(e) Social Audit.
SECTION-B
Analyse the case situations given below and answer the questions at the end.
6. Retailing Success Changing tastes and preferences of customers, upward mobility, rising disposable income, availability of a variety of products and services, lifting of the quantitative restrictions on imports, and increasing exposure to international standards have led to a retail revolution in
Question
Analyse the retailing operation of Akbarallys from the viewpoint of strategic management. Do you feel that the organisation is geared to face new challenges? What needs to be done additionally to secure continued success ?
7. Let There be Light
Traditionally, power plants, being capital-intensive, have been set up by the public sector and state electricity boards (SEBs) in
Question
Analyse the problems of the MPSEB from the strategic management perspective. Do you feel that the actions taken or being contemplated are strategic in nature? Propose what else needs to be done to make the MPSEB a viable organisation.
Ms-91 June, 2013 Advanced Strategic Management
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comJune, 2013
Ms-91 : Advanced Strategic Management
SECTION - A
1. (a) Briefly discuss the approaches to corporate management. Which one, you think, can be regarded as more appropriate to Indian environment and why ?
(b) what is corporate policy and what is its significance" ? How could management formulate effective corporate policy ?
2. (a) "Effective corporate governance is the new mantra of corporate management today." Why is it necessary for corporate business to have good governance ? Discuss.
(b) Several companies have the position of Chairman of the Board of Directors and the CEO merged into one. Discuss the merits and demerits of this kind of arrangement.
3. (a) What could be the various modes of entry into global markets ? Discuss their merits and demerits.
(b) What are the various pricing strategies available to a firm ? Discuss each one of them with reference to different market structures.
4. (a) "R&D strategy can enhance the competitiveness of a firm." Explain , how ?
(b) Discuss some of the problems or challenges in the effective implementation of a knowledge management system.
5. (a) Why is it important for corporate business to conduct itself in a socially responsible manner ? Explain with examples.
(b) Differentiate between Partial Social Audit and Comprehensive Audit.
SECTION-B
6. Read and analyse the case and answer the questions given at the end.
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From: Minoo Batliwala, chairman
To: Rakcsii Mohan, managing ilirector
Date: May 7
Dear Rakesh,
I've just received a copy of Shringar Auto's preliminary audited results for 1994-95, which will be reviewed by the board on May 25. I think this is an opportune moment to share with you some of my concerns about our future before we're drowned in the celebrations of a successful year. I must admit that the numbers look great. Few of us expected profits to jump by 110 per cent to Rs 310 crore considering that turnover rose by 36 per cent to Rs 2,290 crore. We continue to maintain our leadership position on the homefront with a 52 per cent marketshare in the two-wheeler market: 72 per cent in scooters and 31 per cent in motor-cycles. Our margins are higher than those of any of our domestic rivals. And the stock price of Rs 700 proves that investors are happy. Most people think we're doing everything right. To be honest, I do not. I don't believe that our figures are telling us the truth. Which is that Shringar may not continue to perform as well. Last fortnight, a consultant suggested as much to me privately. And the signs that he pointed to are real, very real. Let 's face it, a 72 per cent share of the scooters market today means that we've dropped four percentage points in two years. In motorcycles too, we've dropped four percentage points. Which means that our competitors are growing faster than we are. Now more competitors are coming in-including foreign companies.
When I look around me, I see not just a successful recovery from a recession, but also overconfidence and complacency. Don't misunderstand me. In the three decades since I started Shringo-r, there are many people who have stood by the company through good and had times. But they're all convinced that the way we've been doing business all these years has proved so efficient that there's no need to change it. How can I tell such self-assured and confident people that we're headed down a one-way street unless we're prepared to change the very basic of our success ? Do you have any answers ?
Regards.
Internal memo
From: Rakesh Mohan, managing director
To: Minoo Batliwala, chairman
c.c. : Hemanth Desai, executive director
Date: May 9
Dear Mr. Batliwala.
Thanks for your note. You have articulated a problem 1 have often faced over the years: you can't argue with success. Of course when the circumstances are abnormal, you can push through change. People rise to the occasion either because they see a challenge or because, quite simple, they are scared. I needn't remind you how we rode the automobile recession in 1990-91. Our sales had plunged by 50 per cent, production had to be slashed by 30 per cent, and profits fell by a fifth. We cut costs just by looking around. We improved quality by disbanding the quality assurance department and assigning the responsibility to the shopfloor staff. We flattened the management hierarchy from 11 layers to six. We raised R&D allocations on projects aimed at improving fuel efficiency and niche products. We did all this for two years-and we not only survived, but prospered. In 1990, a single shift used to produce 128 scooters per assembly line: today ,the same line produces 410 pershift with the same number of people. An improvement of that magnitude would not have come about if we did not have a crisis. I agree with you that we need the same sense of urgency even today. Here's my suggestion: why don't we build some crisis scenarios so that the company can react the same way as it did when the recession hit us ?
Regards.
Internal memo
From: Minoo Batliwala, Chairman
To: Rakesh Mohan, managing director
Date: May 15
Dear Rakesh,
I am glad you agree with me that a fat, happy, and profitable organisation like ours needs to create crisis. What worries me, though, is whether we will barter away our present-day success in the process. Reacting to a recession is one thing: you weren't doing well anyway and neither were our competitors. So, you didn't have to worry about not letting success slip by while you fought fires. Can we cope with the confusion that unleashing a crisis will lead to ? How will our people react to this sudden spectre thrust upon them ? How will we make the crisis credible ? Please don't think I'm playing the devil's advocate: I genuinely feel that we need to light fires. But how can we convince people there's one when there's no smoke?
Regards.
Internal memo
From: Hemanth Desai, executive director
To: Mr. Rakesh Mohan, managing director
Date: May 16
Dear Mr. Mohan,
Following up on your suggestion, here are my candidates for a crises. The two-wheeler market in the country is growing at about 20 per cent per annum, and the newly-emerging replacement segment is creating its own opportunities for growth. Given the unassailable dominance of Shringar, it will be difficult to market the idea of an impending crisis unless it is linked to some straightforward and honest evidence. We can examine the crises scenario from three different perspectives:
THE INDUSTRY: Shringar has retained its rank as the world's third-largest producer in the two-wheeler league this year. Honda tops the list with 35 per cent of global production, followed by Yamaha with 22 per cent, Shringar with nine per cent, Suzuki with eight per cent, and Piaggio with six per cent. While the gap between Shringar and Yamaha is wide, both Suzuki and Piaggio are snapping at our heels. We have no choice but to surpass our production levels every year in order just to remain where we are. And even to be the second-best in the world, we must chase the numbers far more aggressively than we are doing at present. Nearer home, our marketshare will no longer be unquestionably supreme as it has been for years now. As you will recall, the report by
THE ORGANISATION: Shringar is a 30-year-old company. Over 30 per cent of the existing workforce have been with the company since the beginning. A lot of fat has been accumulating at various levels. We have to run Shringar like a small business: fast-moving, people-driven, and innovative. The alternative is a tired, old company which will gradually lose its edge in the marketplace. This could be crises No.2.
THE MARKET: Almost from the beginning we have had no need to market our products. Jumping places on the waiting list meant having to pay a premium. But now, there's a strong undercurrent of customer dissatisfaction. I don't know how this fact can be communicated, but I am sure it will make people at Shringar feel that they have to change in order to survive in the new competitive environment. This could be crisis No.3.
Regards.
Internal memo
From: Rakesh Mohan, managing director
To: Minoo Batliwala, chairman
Date: May 17
Dear Mr Batliwala
I am enclosing a note prepared by Hementh Desai on the possible areas which could qualify for a crisis. I have convened a meeting of the management committee on May 25, before the board meets, to discuss the preliminary audit report. We could discuss the issue further at the meeting and examine ways in which plausible crises for any or all of these could be communicated to the workforce. Many of them think that our company is great the way it is and are bound to ask: why should we change ? We can later work on a formal plan of action.
Regards.
Internal memo
From: Minoo Batliwala, chairman
To: Rakesh Mohan, managing director
May 18
Dear Rakesh,
I must confess to being deeply disturbed. I have been thinking about the efficacy and dangers of creating a crisis, and I'm battered by doubts. Do we have to go on creating a crisis every time we need to change gears? How can the company live in a perpetual state of tension? Isn't there something more positive, such as vision. To set our sights on the future ? There, too, I have my doubts. A vision statement, as it is usually presented, is top-driven, unidimensional, static, and overgeneralised.
I think we need to pursue what I may call bifocal vision-something that helps people in the organisation meet today's business needs even as it prepares them for tomorrow. Bear with the jargon, please. A bifocal vision simultaneously paints a picture of the opportunities available today and the best possible tomorrow. It demands that a company improve and perfect today's products and services to please current customers while developing new products and services to delight tomorrow's customers and investors.
THE SWOT |
|
STRENGTHS |
WEAKNESSES |
Formidable marketshare, far ahead of competitors
Huge manufacturing capacities, ensuring economics of scale
A complete range of all two-wheeler products
Majority promoter ownership, ensuring management stability |
Lack of experience in a competitive environment
Obsolescence of basic product engineering designs
inability to attract new technology from foreign partners
Accumulation of fat in workforce and management |
OPPORTUNITIES |
THREATS |
Expansion of first-purchase and replacement markets
Increasing buying power of consumers in rural
Global markets with growing demand for cheap two-wheelers
Possibility of leveraging exports to cut costs
|
Development of niche markets in two-wheelers
Continuing entrance of new and foreign players
Emergence of new technology and design elements
Erosion of traditional features, like durability, as USPs |
Granted, creating bifocal vision will not be simple. We must perpetually work towards making our current processes obsolete before our competitors do it for us. We must assume that all processes, products, and services are experimental by nature. That way, when a process is seen as an experiment, it becomes temporary and thus, amenable to change. The second thing is that every meeting, agenda, memo, report, and discussion must have this bifocal dimension. Every decision must consider the impact on both today's customers and markets and tomorrow's. when that happens, we will have people who act like owners in the interest of the company-not managers who prefer to safeguard their individual turfs. Perhaps we would not then need an artificial crisis to charge us up.
What do you think ?
Regards.
Questions :
(i) Analytically diagnose the problem the Chairman of the company is faced with. What led to his feeling of insecurity ?
(ii) Should the chairman recreate the sence of doom that led to the company's successful emergence from the recession ?
(iii) Which strategy could succeed in motivating the employees into overcoming the challenge an (artificial) crisis or a new vision for the company, including aspiring targets ? Give your response by clearly analyzing the merits and demerits of each approach.
(iv) What other steps as part of the long term strategy would you suggest for the company ? What must shringar do to maintain its market leadership ?