MANAGEMENT

Q.1) Identify the dimension of the characteristic of management- “ it is

multidimensional”, which specifies that the task of management is to make the strength
of human resources effective and their weakness irrelevant towards achieving the
organization’s objectives.
Q.2) Akash works as a production manager in Elite Enterprises’ manufacturing LED lights.
Due to festive season, there is lot of demand for their lights. Akash was given the task of
producing 100 units of LED lights @₹200 per unit within 5 days for an urgent order. Akash
was able to achieve the target of 100 units of LED lights within 5 days @ ₹220 per unit.
Identify from the following whether Akash is:
Q.3) Ravi joined a marketing firm as a Sales Manager. On his first day in the company
during the orientation programme, the CEO of the company told Ravi that he will have to
simultaneously perform the functions of management (planning, organizing, staffing,
directing, controlling) all the time. Which characteristic of management was the CEO
referring to?
Q.4) Ram Murty, a Professor of Management conducted a class on ‘Management
principles’ and explained to his students the significance of management principles. In
the next class, the Professor asked his students to play roles of different managers. He
gave them various situations and asked them to think like managers and provide
solutions to the problems given in these situations. Each students applied the principles
of management to the given situation in his own personalized manner, depending upon
his creativity.
The nature of management highlighted in the above case is:
Q.5) The management of a bag manufacturing company has recently changed. Due to
this, an improvement can be felt in the way company functions. Now, targets are met
according to plans, whereas earlier deadlines were never given importance. Now there is
orderliness, instead of chaos in the organization and the employees are happy and
satisfied.
From the following identify the characteristic of management which is highlighted in the
above case:
Q.6) Match the Concept of management in Column I with their respective meaning is II.

Column I Column II
A Survival (i) Increase in the number of employees, the number of products or
increase in the capital investment, etc.
B Profit (ii) A vital incentive for the continued successful operation of the
enterprise
C Growth (iii) An organization must earn enough revenue to cover costs

a) A-(iii), B-(ii), C-(i)

b) A-(ii), B-(i), C-(iii)
c) A-(ii), B-(iii), C-(i)
d) A-(i), B-(iii), C-(ii)
Q.7) “ A manager in a conscious manner has to ensure that even where members of a
department willingly cooperate, coordination, gives direction to the willing spirit”.
The characteristic of coordination being highlighted above is:
Q.8) Rishitosh Mukerjee has recently joined AMV Ltd. a company manufacturing
refrigerators. He found that his department was under-staffed and other departments
were not cooperating within his department for smooth functioning of the organization.
Therefore, he ensured that his department has the required number of employees and its
cooperation with other departments is improved.
a) Identify the level at which Rishitosh Mukerjee was working
b) Also, state three more functions required to be performed by Rishitosh Mukerjee at this
level.
Q.9) Neeraj is the Director of ‘Tulip Public School’ having 2,000 students. There are two
Headmasters – One of Senior classes and another for Junior classes. 50 teachers are under
the supervision of the Senior Headmaster and 60 teachers under the supervision of the
junior Headmaster. No teacher working under the supervision of the Senior Headmaster is
happy and satisfied, which is affecting the result of the Senior Classes. On the other hand
the teachers working under the supervision of the Junior Headmaster are performing their
duties willingly and achieving their objectives. All the teachers are happy and satisfied. The
Director, Neeraj can feel how nicely the Junior Headmaster was managing his classes.
The characteristic of management discussed above is:
PRINCIPLES OF MANAGEMENT
Q.10) M/s J.K. Computers’ is a small organization engaged in assembling of computers. In
this organization, decision making rests with top management while the middle level is
involved in only the implementation of plans. On the other hand, ‘Progressive Computer
Ltd.’ is a large company where a number of people from each level are involved in the
decision-making process.
The application of the principle of ‘Centralization and Decentralization’ is different in the
two organizations as the situation in each enterprise is not same.
From the following identify the nature of principle of management:
Q.11) Taylor believed that there was only one best method to maximise efficiency. This
method can be developed through study and analysis. Identify the principle of Scientific
management being discussed above:
Q.12) Taylor proposed eight specialists from whom each worker will have to take orders
from as part of the technique of Functional Foremanship specified by him. Those with
technical, mastery, intelligence and grit may be given _________ work.
Those with energy and good health may be assigned ________ work.
Q.13) ‘Flavours of South’ is a famous chain of South Indian restaurants. It believes in
complete co-operation between the labour and management. It’s management
encourages the employees for their constructive suggestions. they take their employees
into confidence for all importance decisions.
Which principle of scientific management has been followed by flavours of South?
Q.14) Somesh works as a foreman in Lakshmi Automatives Ltd. a company manufacturing
cars. He is subordinate to Ramesh, wo is the Production Incharge in the factor. Somesh is
incharge of timely and accurate completion of job by workers working in the Production
Department. There are three other foremen who work under the Production Incharge,
while four other foremen work under Naresh, the Planning Incharge in the factory. Each of
the eight foremen is a specialist in his area and gives orders to the workers relating to it.
The technique of scientific management highlighted in the above case is:
Q.15) Taylor called for complete mental revolution on the part of both management and
workers. it meant that management and workers should transform their thinking.
Management should share the gains of the company if any with the workers. At the same
time, workers should work hard be willing to embrace change for the good of the
company.
The principle of management highlighted above is:
Q.16) The principles of Taylor and Fayol are mutually complementary. One believed that
management should not close its ears to constructive suggestions made by the employees
while the other suggested that a good company should have an employee’s suggestion
system whereby suggestions which result in substantial time or cost reduction should be
rewarded.
Identify and explain the principles of Tylor and Fayol referred to in the above paragraph.
Q.17) The CEO of Radhe Cycles Pvt Ltd. Mr. Kumar wants to get maximum output from the
employees at a competitive cost. On the other hand Ramakaant, an employee of the
company wants to get the maximum salary while working the least. The principle of
management given by Fayol being violated by Ramakaant is __________.
Q.18) In Delight Ice Creams Ltd. decision making authority is concentrated at the top level
and no authority has been delegated among the subordinates. On the other hand in Tasty
Ice Creams Ltd. a big organizations as compared to Delight Ice Creams Ltd. decision making
authority is always delegated among more than one person.
Identify the principle of management discussed above.
Q.19) Pioneer Ltd. is dealing in fruit juices and hair oils. To ensure unity of action and
coordination. It has made two separate divisions of each product. Each division has its own
incharge, plan and execution resources. Thus both the divisions are moving towards the
same objectives to focus their efforts. Identify the principle of management followed by
Pioneer Ltd. in the above case.
Q.20) Yellow Pumpkin is an Italian restaurant in Delhi, well known for its fresh and authentic
dishes including pasta, pizza, etc. it has been serving its customers for the last 20 years. It
had been winning various awards and recognition for its services.
During Covid-19, it suffered huge losses. As the effect of Covid reduced and the business
started picking up, the management of Yellow Pumpkin also decided to go in for home
delivery service to increase its revenue and profit. For this they needed support of their
workers to work overtime. Yellow Pumpkin entered into an agreement with its workers to
put in extra hours without additional payment to revive it out of losses. In return, they
promised to increase the wages of the workers when the mission is accomplished. The
workers put in extra hours as committed and in just three months, the restaurant’s business
turned around and it became profitable again. Yellow Pumpkin honoured its commitment
and not only increased the wages of the workers but also gave them bonus as an additional
incentive.
Identify and explain the principle of management followed by Yellow Pumpkin
BUSINESS ENVIRONMENT
Q.21) Hitesh and Reena are entrepreneurs. They noticed that every year in the months of
November and December, Delhi, the capital city of India, witnesses poor air quality and rise
pollution levels. They also observed that nowadays people are more concerned about
quality of life.
Sensing the need, they were the first to bring into the market a new Anti-Pollution W-98
Mask’ which was not only helpful in combating the pollution but also in increasing the life
expectancy of people. Their venture saw a massive success as there was no competitor.
Identify the importance of business environment highlighted above:
Q.22) Plastic utensils are often used as a low cost, convenient option for business or personal
use. These utensils are lightweight, easy to transport and can be disposed off easily instead
of cleaned and reused. But plastic utensils are harmful from health point of view and create
various environmental issues. Nowadays health and fitness trend is becoming popular.
People are looking for different alternatives and have started opting for paper-made, steel or
glass utensils which has tremendously increased the demand of these products.
The above para discusses an important dimension of business environment which is:
Q.23) Several initiatives have been undertaken by the government of India to encourage
domestic manufacturing and export of defence equipment’s.
‘Making in India’ in Defence, was one such scheme launched by the Government to
encourage companies across the world to manufacture defence products in India.
To which dimension of business environment does the above case relates to?
Q.24) India’s Craft heritage continues because of its customs and traditions. Craft are used
not only in the country by craftsman in Rajasthan, Gujarat and Assam but are also exported
to USA, Germany, UK and France. The volume of exports and imports gives India an
advantage in balance of payments and the much needed foreign exchange reserves. The
prime minister desires that the handicraft industry should be expanded by linking it with
technology. Focus should be on changing the manufacturing process, ensuring durability
and adapting innovations.
Quoting the lines from the above para, explain four dimensions of the business
environment.
PLANNING
Q.1) Mega Ltd. holds an Annual Management Programme every year in the month of
March in which the top managerial personnel formulate plans for the next year by
analysing and predicting the future to meet future events effectively.
As they are responsible for providing direction to the organisation, facts are thoroughly
checked using scientific calculations. Detailed plans are prepared after discussion with
professional experts. Preliminary investigations are also undertaken to find out the
viability of the plan. Since it is an intellectual activity requiring intelligent imagination and
sound judgement so it is mainly done by the top management. Usually rest of the
members just implement the plans. Middle level managers are neither allowed to deviate
from the plans nor are they permitted to act on their own.
The top management ensures that the expenses incurred in formulating the plans justify
the benefits derived from them.
State any two limitations and any two features of planning discussed above.
Q.2) "Mobile Ltd". is a well-known automobile manufacturing company in India. The company
plants to increase the sale of its Sedan Cars by 20% in the next quarter. In order to achieve this
target, the marketing department of the company considered the impact of government
policy on the diesel vehicles and they also anticipated the level of competitions they might
have to face. The team explored the various available options for increase in sale like offering
more discounts, providing zero per cent finance, offering free accessories, free service for
three years, etc.
A thorough analysis of each option was done and finally company decided to offer free service
for next three years. In order to implement the plan, they made various package of service
coupons and communicated the same to their dealers. They also started giving the
advertisements to make the customers aware of their scheme through various print and
electronic medias. A separate team was formed to keep a close watch on the revenue and
impact of new scheme on the sale.
In the context of the above case......
(a) Name the function of management which is being described in above paragraph.
(b) Identify and explain the various steps involved in the process of the function of
management as identified in the above para, by quoting the lines from it.
Q.3) According to a survey, these days the young children have more power in purchasing
decisions than ever before. The parents seek their kids opinions about all kinds of once-
adult decisions, including where to go for dinner, what kind of car to buy, even what to
wear,. Therefore, the retailers are adapting to this by enhancing their kids sections. If the
children want to shop in the store for their cloths, then there’s a greater chance the parent
will also see something they want to by as well.
Identify the type of plan being described in the above lines
Q.4) Laxmi Chemicals Ltd., a soap manufacturing company wanted to increase its market
share from 30% to 55% in the long run. A recent report submitted by the Research and
Development Department of the company had predicted a growing trend of herbal and
organic products. On the basis of this report the company decided to diversify into new
variety of soaps with natural ingredients having benefits and fragrances of Jasmine, Rose,
Lavender, Mogra, Lemon Grass, Green Apple, Strawberry etc. The Unique Selling
Proposition (USP) was to promote eco-friendly living in the contemporary life style. The
company decided to allocate Rs. 30 crores to achieve the objectives.
Identify the type of function of management mentioned above which will help the
company to acquire dominant position in the market.
Q.5) "Uttam Ayurvedic Ltd." is an established Indian company manufacturing organic
consumer goods like toothpastes and shampoos. It has planned to increase its market
share from 30% to 40% in the current financial year.
With the expanding market of organic products, other companies in the consumer goods
industry have also launched these products with organic components. The competition in
the market has increased and it was found that the sales of Uttam Ayurvedic Ltd. came
down and its market share was reduced to 23%.
Identify the limitation of planning highlighted in the above case:
Q.6) Two years ago Madhu completed her degree in food technology. She worked for
sometime in a company manufacturing chutneys, pickles and murabbas. She was not
happy in the company and decided to have her own organic food processing unit for the
same. She set the objectives and the targets and formulated action plan to achieve the
same.
One of her objective was to earn 10% profit on the amount invested in the first year. It
was decided that raw materials like fruits, vegetables, spices etc. will be purchased on
three months credit from farmers cultivating organic crops only. She also decided to
follow the steps required for marketing of the products through her own outlets. She
appointed Mohan as a Production Manager who decides the exact manner in which the
production activities are to be carried out. Mohan also prepared a statement showing the
number of workers that will be required in the factory throughout the year. Madhu
informed Mohan about her sales target for different products, area wise for the
forthcoming quarter. While working on the production table a penalty of Rs 100 per day
for not wearing the caps, gloves and apron was announced.
Quoting lines from the above pare identify and explain the different types of plans
discussed.
ORGANISING
Q.7) InfoMed Ltd. is a growing IT firm with rapidly increasing market share. It has recently
been awarded ‘The Best Organisation to Work in India – 2019’ and is the most sought
after by job-seekers. In this company, rules and procedures to be followed by employees
have been clearly laid down by the top management. There is no ambiguity in the role
that each member has to play, as the duties are specified.
During lunch time, all employees of the organisation get together in the canteen. This
time is much awaited by every employee as it allows them to share their feelings with
others. This leads to the success of the organisation.
(a) Identify and explain the types of organisation being discussed in the above case.
(b) State two advantages of each type of the organisation identified above which have not
been discussed in the above para.
Q.8) Roasted Coffee Corporation is a coffeehouse chain operating in seven states of India.
Through its effective organisational structure, it has grown despite pressure from
competitors in the national market. The company has a Purchase and Production
department, Supply chain management and logistics department, Brand management
department and Sales department. This structure has facilitated operational efficiency, as
employees became specialists within their own realm of expertise. They could be
imparted specialized training as the focus was on limited range of skills.
Identify the organizational structure of Roasted Coffee Corporation. Also state the three
advantages of this structure other than those discussed in the above paragraph.
Q.9) National Vritech Ltd. has grown in size. It was a market leader but with changes in
business environment and with the entry of MNCs its market share is declining. To cope
up with the situation CEO starts delegating some of his authority to the General Manager,
who also felt himself overburdened and with the approval of CEO disperses some of his
authority to various levels throughout the organisation.
Identify the concept of management discussed above.
Q.10) Vinod Chandla started Sunshine Securities a company providing cyber security
solutions to businesses to prevent, detect and respond to cyber attacks and protect
critical data. He was a hardworking software engineer and an expert in cyber security. His
reputation grew by leaps and bounds as he was the person of integrity and did his work
with utmost honesty and sincerity. The business started growing day-by-day.

He was delighted when he was offered a big project by the Ministry of Corporate Affairs.
While working on the project, he found that the volume of work made it impractical for
him to handle all the work himself. He decided to expand his team. The company
maintained a close liaison with a local engineering college. During a campus placement
Anishka and Kavya were appointed to work for the new project. He found the new
employees capable, enthusiastic and trustworthy. Vinod Chandla was thus able to focus
on objectives and with the help Anishka and Kavya, the project was completed on time.
Not only this Vinod Chandla was also able to extend his area of operations. Anishka and
Kavya also got opportunities to develop and exercise initiative.

(a) Identify and explain the concept used by Vinod Chandla in the above case which
helped him in focusing on objectives.
(b) Also, explain any three points of importance of the concept identified in part (a).
STAFFING
Q.11) Zenith Ltd. is a highly reputed company and many people wanted to join this
company. The employees of this organisation are very happy and they discussed how
they came in contact with this organisation.
Aman said that he was introduced by the present Sales Manager, Mr. John.
Benu said that he had applied through the newspaper and was appointed as H. R.
Manager.
Vaibhav said that he was neither related to any of the employee of the organisation nor
there was any advertisement in the newspaper even then he was directly called from IIM
Ahmedabad from where he was about to complete his MBA.
(a) The above discussion is Indicating an important function of management. Name the
function of management.
(b) The management function Identified in part (a) follows a particular process. Explain
the step of this process which is being discussed in the above para
Q.12) Joseph Bros. was a firm manufacturing jute lamp shades. It uses left over jute
pieces from various jute factories to manufacture economical lamp shades which are
supplied to various hotels in the nearby towns. It employs men and women from nearby
villages as workers for creating good lamp shade designs.
Joseph Bros., is not able to meet its targets. Namish, the supervisor of the company, was
told to analyse the reasons for the poor performance. Namish found following problems
and suggested certain solutions in the working of the business. The number of workers
employed was less than what was required for the work. As a result, the existing workers
were overburdened. The firm decided to search for new workers and it asked the present
employees to introduce candidates or recommend their friends and relatives to the firm.
This enabled the firm in "putting people to jobs" and assured attainment of objectives
according to the plans.
Q.13) In an interview with a leading news channel, Mr. Rakesh Kwatra, CEO of ‘Get My
Job” has suggested that the Companies which want more and more people to apply for
jobs in their organisation should make the process of applying for jobs easier and
candidate friendly. It is for this reason, he said, that most progressive companies today
have a short application process. He also said that the application form filled by the
candidate is very important as it is the information supplied in the application forms,
which helps the manager in eliminating unqualified or unfit job seekers. The company can
create a mechanism that attempts to measure certain characteristics of individuals like
aptitude, manual dexterity, and intelligence to personality. The candidate may then be
called for an in-depth conversation to evaluate their suitability for the job.
(a). Name the process and steps in the process of identifying and choosing the best
person out of a number of prospective candidates for a job discussed above.
(b). Also explain the next three steps in the process which can be subsequently
performed by the company.
Q.14) Xeno Ltd. is a global information technology consulting company with 45,000
employees serving over 600 clients in 23 countries. Its Chief Executive Officer, Mr Neil
Suman guided the company through two decades of diversification and growth to emerge
as one of the leading Indian companies in the software industry. The company has set
standards in ensuring the best training opportunities for its employees.
The Project Guidance Program is a 52 day structured training program offered to all
recruits of varied backgrounds to be trained on essential behavioural and technical skills
that prepares them to work In live customer projects. These recruits are hired from
universities and management institutes for technical, professional as well as managerial
jobs. It is to help the new employees in settling down quickly into the job by becoming
familiar with the people, the surroundings, the job and the business.

(a) Identify the external sources of recruitment used by the company to hire new
employees.
(b) Explain the method of training used by the company to train employees selected by
the source of recruitment identified in part (a).
(c) State two ways in which the Project Readiness Program can benefit Xeno Ltd.
Q.15) Entertainment India Ltd. has been incorporated with the objective of entertaining
people by organising festivals, programmes and other similar events depicting the rich
cultural heritage of the country. The company management has renowned personalities
from the field of art, literature and culture. They decided to give a platform to young
budding musicians, poets and artists. The company decided its organisational structure
by grouping similar jobs together. Thereafter, the heads of different departments were
also appointed. Nisha, one of the heads, did an analysis of the number, type and
qualification necessary for people to be appointed. The information generated in the
process of writing the job description and the candidate profile was used to develop
Situations vacant advertisement. This was published in print media and flashed in
electronic media. This brought in a flood of response.
Explain the other steps which Nisha has to perform to complete the process
being discussed above.
DIRECTING
Q.1) Rajiv is working as Personnel Manager in a company. The speciality of the company is
that financial position of all the employees is good. The employees working here are
honest, punctual and hardworking. The CEO of the company asked him to suggest a
method of motivation. The CEO asked him to suggest a method which is happily accepted
by all the employees.
Rajiv spoke to many employees in this connection. Some employees suggested give more
importance to individual autonomy, another suggested good performance should be
appreciated another group suggested to award, certificate, trophies to recognise the
good performance. Mr. Rajiv mixed all and suggested a method of motivation to CEO.
The CEO happily accepted that and it was immediately implemented. Within few days the
company's growth rate appeared to have become fast.
(a) Identify the functions of management indicated in the above paragraph.
(b) Which motivation methods were suggested by different group of employees.
(c) Which motivation method combine all the above stated and was suggested by
personnel manager.
Q.2) Mrs.Rajlaxmi is working as the Human Resource Consultant in a firm manufacturing
cosmetic, which is facing a problem of high employee turnover. The CEO of the company
has invited suggestions from her for retaining the talented employees & reducing the
employee turnover. Mrs. Rajlaxmi recommends that the good employees be rewarded in
a way that it creates a feeling of ownership among the employees and at the same time
makes them contribute towards the growth of the organization.
(a) Identify the incentive and explain its type, which has been suggested by Mrs. Rajlaxmi
to the CEO of the company.
(b) Also explain any two other incentives of the same type.
Q.3) Keshav Bannerjee is the Chief Executive Officer (CEO) of Das Networking Ltd, a
leading IT company in Bengaluru. He believes that if needs of employees are taken care
of, the employees take good care of the customers. In this company various benefits are
provided to the employees to help them meet their medical and housing needs etc.,
while in job. It is also providing benefits like gratuity at the time of their retirement. The
employees are provided various opportunities to attend skill development. Programmes
to improve their skills and be promoted to the higher level jobs.
Identify and state the three incentives offered by the company in the above para to
improve the performance of its employees.
Q.4) Nitya is a student of class XII of a well-known school. She has a preconceived notion
that her teacher always finds fault in her work. One day while checking the project work
of class XII, her teacher wanted to appreciate Nitya for her hard work and good
performance, but before she could complete her sentence, Nitya left the room without
listening to her teacher.
(a) Identify the barrier to communication and also the type/category of barrier to which
it is related.
(b) Explain two other communication barriers of the type/category identified in (a)
above.
Q.5) Kunal joined as a shop level manager in the Production department of a textile
company in the year 2005. Because of his good work, he became the Deputy Production
Manager of the company in the year 2010. He had status and prestige and was well-
respected by all in the company. On 1 st March, 2019, he was promoted as the General
Manager of the company. Kunal was very happy on his promotion as now he had become
what he was capable of becoming. As a good manager, Kunal decided to motivate his
subordinates, after understanding the Need Hierarchy theory which is based on various
assumptions. He realised that peoples behaviour is based on their needs and the
manager can influence the behaviour of his employees by satisfying their needs.
(a) One of the assumptions of Need Hierarchy theory is stated in the above paragraph.
State the other assumptions of this theory.
(b) State the needs of Kunal which are being satisfied through promotion.
Q.6) Avdhesh is the Managing Director of Delta Ltd. The company had established a good
name for itself and had been doing well. It was known for the timely completion of
orders. The Production Manager, Ms. Priyanka was efficiently handling the processing of
orders and had a team of ten motivated employees working under her. Everything was
going on well.
Unfortunately, Priyanka met with an accident. Avdhesh knew that in the absence of
Priyanka, the company may not be able to meet the deadlines. He also knew that not
meeting the deadlines may lead to customer dissatisfaction with the risk of loss of
business and goodwill.
So, he had a meeting with his employees in which accurate and speedy processing of
orders was planned. Hence, everybody agreed to work as a team because the behaviour
of Avdhesh was positive towards the employees of the organisation. Everyone put in
extra time and efforts and the targets were met on time. Not only this, Avdhesh visited
Priyanka and advised her to take adequate rest.
(i) Identify the leadership style of Avdhesh and draw a diagram depicting the style.
CONTROLLING
Q.7) Raman and Vasudev were two employees who were embezzling an import-export
company in Varanasi where they were working. The finance manager of the company
Sampat Singh became suspicious of the two employees when he realized that their
activities were not being performed as per the plans. He installed a software program
that could secretly log every single stroke of the suspects’ computer keys and send an
encrypted email report to the Cyber police. The police were able to catch the two
dishonest employees red-handed and arrest them.
Identify the function of management being discussed above.
Q.8) Priya is a regional manager of XYZ. Ltd. She is a hardworking employee and is trying
to reduce wastage of resources in her company. She has set standards for performance of
different activities and is ensuring that targets are met according to these standards with
minimal wastage of resources. She has set up CCTV cameras which helps her to keep a
close check on the activities of the subordinates and know how the employees are
performing. She also rewards the employees with a bonus when these standards are met.
She is trying her best to ensure a good performance of her team this year through the
application of an important function of management.
Explain any two benefits of the function of management highlighted above.
Q.9) Vinber Ltd. set up a manufacturing unit at Bhiwadi in Himachal Pradesh to
manufactures electric geysers and supply them to dealers all over the country. Their
production target was 500 geysers per week. It was decided by the management that
variation in production upto 10 units be acceptable.
At the end of the first week, the production was 450 geysers. The next week, production
increased to 470 geysers. A week later, production was 460 geysers. On investigation, it
was found that fluctuation in production was due to irregular supply of electricity.
(a) The above para discusses some of the steps in the process of one of the functions of
management Explain these steps.
(b) Also, state the step(s) that have not been discussed in the above para​
Q.10) Textile manufacturer Super textiles reported 43% fall in its profits in the fourth
quarter ended 31 March 2017, which is beyond the acceptable range 25% decided by the
company. This was due to higher fuel cost and lower yield on account of demonetization.
The company aims to implement cost saving measures by restructuring contracts and its
business processes to meet its targets in the future.
A. Name the function of management discussed above.
B. Also identify and explain the steps of the function of management discussed above.
FINANCIAL MANAGEMENT
Q.1) Sudha is an enterprising business woman who has been running a poultry farm for
the past ten years. She has saved ₹4 Lakhs from her business. She shared with her family
her desire to utilize this money to expand her business. Her family members gave her
different suggestions like buying new machinery to replace the existing one, acquiring
altogether new equipment with latest technology, opening a new branch of the poultry
farm in another city and so on.
Since these decisions are crucial for her business, involves a huge amount of money and
are irreversible except at a huge cost, Sudha wants to analyse all aspects of the decisions,
before taking any final decision.
a) Identify and explain the financial decision to be taken by Sudha.
b) Also, explain briefly the factors that will affect this decision.
Q.2) Koby Ltd. is an 87-year-old reputed consumer goods company. It is known for
offering good quality electronic products at reasonable prices. It has branches all over
India. It has a large shareholder base. The shareholders desire that some dividend is paid
every year on their investments. Company’s management understands that it is important
to keep the shareholders happy and satisfied. As a matter of policy, they declare a certain
amount of dividend every year out of profits rather than reinvesting the whole as retained
earnings.
Identify the factor affecting dividend decision being highlighted in the above situation
Q.3) XY Ltd. is registered with an authorized capital of ₹10 crore. The paid-up capital of the
company is ₹6 crore. The company was facing shortage of funds. The management of the
company decided to raise funds by issue of 1,00,000 equity shares of ₹100 each. The issue
was fully subscribed. After this it was realized that the funds raised were in excess of the
actual requirement.
Identify and define the concept which was not considered by the company before
deciding the amount of funds to be raised.
Q.4) Pinnacle Ltd. deals in the sale of stationery and office furniture. They source the
finished products from reputed brands who give them four to six months credit seeing the
demand for electronic items, they are also planning to market these items by opening
outlets throughout India. For this they have decided to join hands with a Japanese
electronic goods manufacturer.
Identify and state any two factors that would affect the fixed capital requirement of
Pinnacle Ltd. as discussed above.
Q.5) In the paint industry, various raw materials are mixed in different proportions with
petroleum for manufacturing different kinds of paints. One specific raw material is not readily
and regularly available to the paint manufacturing companies. Bonler Paint Company is also
facing this problem and because of this there is a time lag between placing order and the
actual receipt of the material. But, once it receives the raw materials, it takes less time in
converting it into finished goods.
Identify the factor affecting the working capital requirements of this industry.
Q.6) The Return on Investment (ROI) of a company ranges between 10-12% for the past
three years. To finance its future fixed capital needs, it has the following options for
borrowing debt:
Option ‘A’ : Rate of Interest 9%
Option ‘B’ : Rate of Interest 13%
Which source of debt, ‘Option A’ or ‘Option B’, is better? Give reason in support of your
answer. Also state the concept being used in taking the decision.
FINANCIAL MARKET
Q.7) Adapting to a change in consumer preference towards online shopping. Fast-Service
started a grocery delivery app. It is a platform that ensures 10-minute deliveries of
groceries. Because of this service, Fast-Service earned huge profit within a year. It planned
to expand its operations and decided to raise funds by directly issuing its securities to
investors.
The market through Which ‘Fast-Service’ has decided to raise funds for its expansion is:
Q.8) Hitesh Ltd. is a well-known company in the cement industry since 1999. the
company has an authorized capital of ₹100 crore and is listed with a reputed stock
exchange. The value of its shares is increasing day-by-day due to increase in the demand
for cement. Now the company wants to enter into car manufacturing business. For this it
requires ₹200 crore. The Finance Manager of the company decides to raise this Capital by
a public issue.
a) Identify the market in which the company’s existing securities are being traded.
b) Name the market through which the company wants to raise its capital of ₹200 crore
for its new business.
c) Distinguish between the markets identified in (a) and (b) above the basis of any two
points.
Q.9) ABC Ltd. issued prospectus for the subscription of its shares for ₹500 crores in 2008.
the issue was oversubscribed by 20 times. The company issued shares to all the applicants
on pro-rata basis. Later SEBI inspected the prospectus and found some misleading
statement about the management of the company in it SEBI imposed a penalty of ₹5 crore
and banned its three executive direction for dealing in securities market for three years.
Identify the function and its type performed by SEBI in the above case.
Q.10) Stock exchange acts as a regulator of the securities market. It creates a continuous
market where the securities are bought and sold. It gives investors the chance to disinvest
and reinvest. Through this process of disinvestment and reinvestment, saving get
channelized into their most productive investment avenues.
To ensure that the investing public gets a safe and fair deal in the market, the membership
of the stock exchange is well regulated and its dealings are well defined according to the
existing legal framework. It also ensures wider share ownership by regulating new issues,
better trading practices and taking effective steps in educating the public about
investments. Various functions performed by the Stock Exchange are discussed in the above
para. By quoting the lines from the above para, state any four functions of stock exchange.
MARKETING
Q.11) One of the following is considered to be an extension of the marketing concept,
which apart from customer satisfaction pays attention to ethical and ecological aspects of
marketing. Identify the concept.
Q.12) The _________ function of marketing ensures the buyers that goods confirm to
predetermined standards of quality and reduces the need for inspection. It also ensures
that goods belong to a particular quality and helps in realising higher price for high
quality output.
Q.13) ‘A good physical distribution system should provide for an accurate and speedy
processing of orders in the absence of which goods will reach the customers late or in
wrong quantity.’ The component of physical distribution highlighted above is:
Q.14) The element of promotions mix which involves a variety of programmes designed
to promote or protect a company’s image and its individual products in the eye of the
public is:
Q.15) Zolo, a marketer of cars having 40% of the current market share of the country aims
at increasing the market share to 70% in next few years. For achieving this objective the
manager of the company specified the action programme covering various aspects.
Identify the function of marketing discussed above:
Q.16) Radha found a worm crawling out of newly opened tetra pack of a juice
manufactured by a reputed company, Zest, Ltd. She went back to the shopkeeper from
whom the pack was purchased who directed her to call up the customer care center.
When all her efforts failed, she went to a consumer activist group to seek help. The group
decided to help Radha and take measures to impose restrictions on the sale of the firm’s
products of the particular batch and urge customers to refrain from buying the products
of the company. Zest Ltd. lost its image in the market. The CEO gives the responsibility of
bringing back the lost image of the company to a Manager.
a) Identify the concept of Marketing Management which will help the manager getting
the firm out of the above crises.
b) Also explain the role of above identified concept by stating any two points.
Q.17) A company was marketing water purifiers which were very popular due to their
quality and after sales services provided to the customers. The company was a leading
company in the market and earning huge profits. Because of huge profits the company
ignored the after sales services. As a result its relations with the customers got spoiled
and the image of the company was damaged in the public. Top management became
concerned when the profit for the current quarter fell steeply. On analysis it was revealed
that ignoring the after sales services was its reason. Therefore the company took all
possible measures to protect and promote its favourable image in the eyes of the public.
As a result the goodwill of the company improved in the society.
Name and state the communication tool used by the marketer in the above case to
improve its image.
Q.18) Tapas Sen, a manufacturer, redesigned his existing soup making machine into a
small portable machine. For selling the machine, he entered into an agreement with his
uncle who agreed to finance the project with a 50% share in the profits. To launch the
machine, they decided to start with direct channels of distribution. They named the
venture ‘ Cup-a-Soup’. In the first year, their main objective was profit maximization. They
appointed 30 trained salesmen for distribution of the machine across the country. They
offered incentives and awards to salesmen for achieving their sales targets.
a) Identify the marketing philosophy use by Cup-a-Soup.
b) Identify the tool of promotion used by Cup-a-Soup.
Q.19) Since childhood Niru and Janak had been watching their grandmother procuring
wheat from the market, washing it well drying it and getting it converted into atta. They
conducted a survey to collect data to identify whether there is demand for readymade atta
and realized that with the growing number of working women, it is the need of the hour to
manufacture high quality atta. They named their product ‘Srijan’ and set up ‘Srijan Atta
Factory’ at Jaunpur Village. To penetrate in the market, they decided to keep the price low.
For maintaining smooth flow of their product into the market and avoiding delays in
delivery, it was decided to store wheat at SKM Services which had scientific processes and
logistics facilitating quick delivery. They also set up an online complaint portal to take care
of consumer grievances.
By quoting the lines from the above paragraph state five marketing functions undertaken
by Niru and Janak for successful marketing of ‘Sirijan’ atta.
Q.20) Best Electronic started manufacturing washing machines under the brand name
‘Amaze’. Once the washing machines were manufactured, packaged, branded, priced and
promoted, they had to be made available to the customers at the right place, in the right
quantity and at the right time. Best Electronics provided for accurate and speedy
processing of orders so that the washing machines reach the customers in time, in the
right quantity and specifications. They also ensured that the washing machines are
physically made available to the customers, further Best Electronics arranged for facilities
to store the washing machines at different locations near the market to minimize the
charges on transportation.
Explain any three components of physical distribution discussed in the above case.
CONSUMER PROTECTION
Q.21) Aarushi purchased a pack of biscuits. When she opened it, she felt the biscuits were
stale. She carefully read the label on the pack of biscuits which mentioned: “If you are not
satisfied with the product quality, write to our Customer Care Cell at Bell Foods Pvt. Ltd
B/321, Jalandhar, Punjab.” The biscuit company has set up its own consumer service and
grievance cell to promote and protect the right
Q.22) ‘Grahak Shakti’ an N.G.O. organized a workshop to discuss various issues relating to
consumers. During the discussion, one of the members drew attention towards
exploitation of consumers due to defective and unsafe products, adulteration, black
marketing, hoarding, etc. to this another member argued that consumers themselves are
responsible as they do not raise collective voice against the exploitation. The Chairperson
of the organization was of the opinion that it was also the duty of the businessman to take
care of the interests of various stakeholders. Business organizations earn money by selling
goods and services to consumers. So the interests of the stakeholders have to be well
taken care of.
State three points that highlight the need for consumer protection as discussed in ‘Grahak
Shakti’s workshop.
Q.23) Himesh after completing his graduation started working with a multinational
company in Delhi. But due to ill health of his parents he had to go back to his village.
There he noticed that the villagers were literate but ignorant about their rights. Many
vegetable vendors were using stones as weights to sell their vegetables. Some
shopkeepers were selling food items without having FPO mark. Villagers did not find
anything wrong with these practices. So to create awareness among villagers Himesh
decided to publish a weekly Journal Jan Jagriti.
State the Right which Himesh has exercised by doing so.
Q.24) MVT Ltd. is a leading cosmetic manufacturing company. It has its own consumer
services and grievance redressal center to address consumer concerns. The mobile phone
number of the consumer service and grievance redressal cell is printed on the labels of all
its products as a policy to get feedback or complaints from their consumers, it also runs
various programmes to educate the consumers about their rights and reliefs available to
them in case a product or service fall short of their expectations.
Explain the two rights of the consumer which are being promoted by the company.
Q.25) Aman, a degree holder in Entrepreneurship came to know about Piplantri Village
located in Rajasthan, where in 2006 an initiative was started, in which 111 trees are
planted every time a girl child is born.
To keep termites away from the trees the villagers have planted 2.5 million. Aloe Vera
plants around the trees. This has turned the village into an oasis, as the planting of trees
led to higher water levels.
Aman decided to visit the village to start a business unit, for the processing and marketing
of Aloe Vera into juices, gels and other products.
However, on visiting village Aman found that the villagers were suffering exploitation at the
hands of local merchants who were engaged in unscruplous, exploitative trade practices
like hoarding and black marketing of food product sand also selling unsafe, adulterated
products to the villagers
After looking at their plight instead of a business organisation he decided to set up an
organisation for the protection and promotion of the consumer interest of the villagers.
State the functions that the organisation established by Aman will be performing (Any six
points).
Q.26) Suman wanted to purchase a sandwich toaster. She checked about the various
sandwich toasters available online and compared the prices so that an intelligent and wise
choice could be made. Then she went to a nearby market to buy the sandwich toaster.
Being an informed consumer, she looked for the correct standardisation mark. The
shopkeeper showed her different toasters but was quoting a higher price than the price
she had checked online. After negotiating with the shopkeeper, she was able to bring the
price down. As a responsible consumer, she asked for a cash memo, against the amount
paid for the product and took the toaster home. On opening the package, she found an
instruction booklet, which she read carefully. Then she followed all instructions step by
step and made nicely toasted paneer sandwiches for her family.
1.State any two responsibilities which have been discharged by Suman, besides asking for
a cash memo.
2.Explain the two rights being discussed in the above case.