C.S.(main )EXAm 2009

MANAGEMENT

Paper II

Time Allowed Three Hours Maximum Marks 300

INSTRUCTIONS

Each question is printed both in Hindi and in English.

Answers must be written in the medium specified in the Admission Certificate issued to you, which 1nust be stated clearly on the cover of the answer-book in the space provided for the purpose. No marks will be given for the answers written in a medium other than that specified in tlte Admission Certificate

Candidates should attempt Question Nos. I and 5 which are compulsory. and any three of the remaining questions selecting at least 0ne question from each Section.

All questions carry equal marks. Assume suitable data if considered necessary and indicate the sanze clearly .

Section

1. Attempt any three of the following questions
20x3=60

A regimen cons1st1ng of a daily dose of vitamin C was tested to determine its effective ness in preventing the com1non co1d. Ten people who were -following the prescribed regimen were observed for a period of one year. Eight survived the winter without a cold. Suppose the probability of surviving the winter without co1d is 0·5 when vitamin C regimen is not followed. What is _the probability of observing eight or more survivors, given that the regimen is ineffective 1n increasing resistance to colds

Discuss the managerial utility of the sensitivity analysis in linear programming.

Assuming a linear regression model of the type
a bXi Ui, i 2 ..... 29
the following data have been collected
<img src="E:sirishaCIVILS MAINS 2013CIVILS MAINS-20092009 mains optionals_sireeshaimages37-1c.jpg">
where and are deviations of and from their respective sample means X and Y. What is the least square estimate of a and b

The following table gives the number of aircraft accidents that occurs during the various days of the week. Find whether the accidents are uniformly distributed over the week.

<img src="E:sirishaCIVILS MAINS 2013CIVILS MAINS-20092009 mains optionals_sireeshaimages37-1d.jpg">

(Given: the values of chi-square significant at 7 d.f. are respectively 11·07, 12·59, 14·07 at level of significance).

2. Explain the difference between the product moment
correlation coefficient and rank correlation coefficient.

The rankings of ten students in two subjects A and B are as follows:

<img src="E:sirishaCIVILS MAINS 2013CIVILS MAINS-20092009 mains optionals_sireeshaimages37-2.jpg">

Find the correlation coefficient and comment on the result. 60

3. A sn1all firm makes three similar products, which all follow the same three-step process, consisting of milling, inspection and dri11ing. Product A requires 12 minutes of milling. 5 minutes for inspection, and 10 minutes of drilling per unit; product B requires 10 minutes of milling. 4 minutes for inspection. and 8 minutes of drilling per unit; product C requires 8 minute?? of milling, 4 minutes for inspection. and 16 minutes of drilling. The department has 20 hours available during the next period for milling, 15 hours for jnspection, and 24 hours for drilling. Product A contributes Rs. 2·40 per unit to profit, product B contributes Rs. 2·50 per unit, and product C contributes Rs. 3·00 per unit. Determine the optimal mix of products in terms of maximizing contribution to profits for the period. 60

4. Discuss 1n detail the different supply chain strategies. What is an appropriate supply chain design for a competitive environment 60

Section

5. A. B. Motors is one of the oldest multinational corporations in the world. Founded in 1910, ABM established its first international operation in the 1920s. Historically, most of the ABM's foreign operations have been concentrated in Western Europe.

Although ABM has had a long presence in Latin America and Asia until recently, sales there acco·unted for only a small fraction of the company's total international business. Acknowledging the fact that Asia, Latin America and Eastern Europe will be the automobile industry's growth markets. ABM decided to have a new look at its international business strategy in 2009. Traditionally, ABM would consider the developing world as a dumping ground for its olcL outdated and obsolete technology. The production would be decentralized. North American and West European factories would produce the latest, state of the art vehicles while the plants in developing countries would produce old and discarded models. The operations would not be centrally controlled from its headquarter and subsidiaries in different countries would produce vehicles as per their specific requirements. Thus, there would be two sets of ABM vehicles plying in the world at any given time olcL outdated and discarded models in developing world and new, state of the art models (with multiple variants of each one of them) in Western Europe and North America.

Despite being one of the oldest players in international business, numerous problems can still be seen on ABM's horizot1. Compared to Toyota, who is fast becoming world's largest automobile manufacturer, ABM suffers from high costs, low perceived quality (especially in developing countries) and a profusion of brands. Toyota and other Japanese vehicle manufacturers are fast spreading their wings with lowcost and high fuel economy vehicles in developing world. There is one group in ABM "vhQ strongJy feels that the time has come for ABM to change its strategy and to produce "global while the other group feels that ABM should produce country-specific models to attract local customers.

Answer any three of the following questions
20x3=60

How would you characterize the international strategy pursued by ABM in the developing world and Europe prior to 2009
What would be your advice to ABM regarding tpe international strategy it is planning
(c)How should ABM compete with Japanese car manufacturers globally
What should ABM do produce global cars or produce local country-specific models Justify your answer.

6. Governments can influetee firms' decisions to invest in foreign countries. By their choice of policies, both host country and home-country governments encourage and restrict Foreign Direct Investment (FDI). An important determinant of government policy toward FDI is political ideology. Political ideology ranges from a radical stance that is hostile to FDI to a noninterventionist, free market stance between the two extremes is ari approach best described as pragmatic nationalism. Explain how the po1itical ideology of a host government might influence the negoti.ations between the host government and a foreign multinational enterprise (MNE). Under what circumstances is an MNE in a powerful negotiating position vis-a-vis a host government What costs does a developing host country pay for FDI 60

7. Tata Motors was planning to set up a factory to manufacture 'the world's cheapest car' in Singur, West Bengal. However, due to the steep resistance of local people they had to shift the plant location to Gujarat.
Explain how each of the following resources within the company might influence its overall strategy. (any three) 20x3=60
Plant location
Company image
Financial resources
Human Resource Planning

8. Air India, the national carrier, has recently approached the government to bail it out by sanctioning an amount of Rs. 15,000 crores. Ministry of Civil Aviation has appointed you as the Chairman and Managing Director of Air India. You need to submit a detailed plan of revival for Air India in next three years. Your strategic consultant tells you ·that you may c0nsider any of the four planning mo??Js (namely, ategic Bu??iness Unit, The Boston Consulting G up Matrix, The General Electric Business Screen and Porter's Generic Strategies Model).

Describe the four strategic planning models briefly.
Which of these four strategic planning models would you find most useful for Air India and why
Based on the model selected?? outline a brief plan for revival of Air India. 30+15+15=60

Note English version. of the Instructions is printed on
the front cover of this question paper.