AIMA Assignments: Contact us for answers at assignmentssolution@gmail.com

DIS08

Knowledge Management

Assignment - I

Assignment Code: 2015DIS08A1                                Last Date of Submission: 15th May 2015
                                Maximum Marks: 100

Section A (50 Marks)

Q1. Describe three ways technology has changed the way people perform their work task
       and roles. How has this influenced the ways organizations operate?

Q2. Why do we need to plan for knowledge culture development? Is a written plan of any
       Value ? Why?

Section B (50 Marks)

Attempt all questions provided at the end of case reference . All questions carry equal marks.

Case Reference: Notes from Knowledge Management Expert.

Following are the notes taken from an Internal Memo generated by a Knowledge Management Expert to improve organizational efficiency. Please read

Why Knowledge Management?
While most managers agree that managing knowledge is important, few of them can articulate what the value is or how to become a learning, teaching, or coaching organization. The majority of companies have their knowledge embedded in people and organizations. It is often intuitive, tacit, rather than explicit, and is rarely detailed enough to be especially valuable. Such knowledge often gets lost when someone leaves the company. "All too often, knowledge exists with multiple points of view instead of the collective best thinking. It is occasional but not integral to the business. And, most important, it is available but not used very much."
Real Value of Knowledge
The value of knowledge is measured in its application. Knowledge has no intrinsic value of its own - it is only relevant when it is used. "The real value of it is only real if you change the way business is done."
Knowledge Management versus Information Management
"Knowledge management" is different from "information management". While the former targets collecting and distributing knowledge - both explicit and tacit - throughout the organization, the latter deals mainly with documented explicit knowledge - or information - only.
Most companies create, have access to, and use plenty of bits of knowledge, but neither efficiently, nor effectively.
The increased emphasis on knowledge management is attributed to recent rapid developments in the following areas:

On a practical level:
1.        Shift to the new knowledge-driven economy dominated by knowledge-based enterprises and information-intensive industries
2.        Rapid advances in information technology.

On a theoretical level, increased emphasis on knowledge in the strategic management literature, in particular:

1.        Popularity of the new resource-based view of the company
2.        Postmodern perspectives on organizations

The Dynamic Theory of Knowledge Creation
The current paradigm in which organizations process information efficiently in an “input-process-output” cycle represents a “passive and static view of the organization.13 Organizational learning results from a process in which individual knowledge is transferred, enlarged, and shared upwardly to the organizational level. This process is characterized as a spiral of knowledge conversion from tacit to explicit. In the broadest sense, organizational knowledge creation may be explicated by the interchange between tacit and explicit knowledge.

Tacit knowledge is a subtle conception rooted in cognitive schemata referred to as “mental models” and is rather difficult to articulate.14 It is highly personal and hard to formalize, making it difficult to communicate or to share with others. Subjective insights, intuitions, and hunches fall into this category of knowledge.

On the other hand, explicit knowledge is more easily transmitted as it is characteristically codified. As such, explicit knowledge is more easily processed and shared with others. Knowledge conversion initiates at the individual level as a “justified true belief” and is expanded through social interactions to include a diversity of perspectives that ultimately represent shared knowledge at the organizational level.

Tacit Knowledge as a Source of Competitive Advantage
Tacit knowledge underlies many competitive capabilities. The experience, stored as tacit knowledge, often reaches consciousness in the form of insights, intuitions, and flashes of inspiration. The marvelous capacity of your mind to make sense of your previous collection of experiences and to connect patterns from the past to the present and future is essential to the innovation process. "The creativity necessary for innovation derives not only from obvious and visible expertise, but from invisible reservoirs of experience."1
Tacit knowledge, or implicit knowledge, as opposite to explicit knowledge, is far less tangible and is deeply embedded into an organization's operating practices. It is often called 'organizational culture'. "Tacit knowledge includes relationships, norms, values, and standard operating procedures. Because tacit knowledge is much harder to detail, copy, and distribute, it can be a sustainable source of competitive advantage. What increasingly differentiates success and failure is how well you locate, leverage, and blend available explicit knowledge with internally generated tacit knowledge." Inaccessible from explicit expositions, tacit knowledge is protected from competitors unless key individuals are hired away.

Innovation Process: Diversion and Conversion of Ideas
"The process of innovation is a rhythm of search and selection, exploration and synthesis, cycles of divergent thinking followed by convergence". Divergence, or creative synthesis, is the interlocking of previously unrelated skills, or matrices of thought. The creation of such intellectual ferment is important to innovation - the more options offered, the more likely that an out-of-the-box perspective will be available for selection. Just hearing a very different perspective challenges the mindset of others sufficiently that they will search beyond what initially appears to be an obvious solution. This is a reason that intellectually heterogeneous cross-functional teams are more innovative than homogenous functional ones.

As soon as a sufficient choice of innovative ideas has been generated, a solution - convergence upon acceptable action - needs to be defined and agreed upon.
Confining the noting here to managing the tacit dimensions of knowledge three types of tacit knowledge - overlapping specific, collective, and guiding - need to be managed.

Managing Tacit Knowledge
Managing tacit knowledge is a significant challenge in the business world - and it requires more than mere awareness of barriers.

During the new idea generation - divergent thinking - phase, people create a wealth of possible solutions to a problem. "Chaos succeeds in creating newness because it takes place in a system that is non-linear". In a well-managed development process, where a group of diverse individuals addresses a common challenge, varying perspectives foster creative abrasion, intellectual conflict between diverse viewpoints producing energy that is channeled into new ideas.

Mechanisms by which collective tacit knowledge is created and tapped include:
•    Brainstorming - gathering together a set of experts with diverse skills, preferably including client representatives. Main rules to be followed during the idea generation phase: defer judgments; build on the ideas of others; one conversation at one time; stay focused on the topic; and think outside the box - encourage wild ideas. All ideas should be recorded and discussed during the selection - convergent thinking - phase.
•    In large organizations that are conceived as a collective of communities, separate community     perspectives can be amplified by interchanges in order to increase divergent thinking. "Out of this     friction of competing ideas can come the sort of improvisational sparks necessary for igniting     organizational innovation".1

Managers and innovation team leaders can use tacit knowledge to aid convergent thinking by creating guiding visions and concepts for teams involved in innovation.

Distinguishing between Data, Information, and Knowledge
•    Data - symbols or facts out of context, and thus not directly nor immediately meaningful
•    Information - data placed within some interpretive context, and thus acquiring meaning and value
•    Knowledge - meaningfully structured accumulation of information; information that is relevant,  actionable, and based at least partially on experience
Distinguishing between Explicit and Tacit Knowledge1
•    Explicit knowledge - can be formally articulated or encoded; can be more easily transferred or shared; is abstract and removed from direct experience
•    Tacit knowledge - knowledge-in-practice; developed from direct experience and action; highly pragmatic and situation specific; subconsciously understood and applied; difficult to articulate; usually shared through highly interactive conversation and shared experience.
Application of Tacit Knowledge in Innovation
•    Problem solving - experts, as opposite to novices, can solve a problem more readily as they have in mind a pattern born of experience, which they can overlay on a particular problem and use to quickly detect a solution
•    Problem finding - linking a general sense of intellectual or existential unease to radical innovation: creative problem framing allows the rejection of the "obvious" answer to a problem in favor of asking a wholly different question. Intuitive discovery is often not simply an answer to the specific problem but an insight into its real nature.
Tacit Knowledge as a Source of Competitive Advantage
•    Individual tacit knowledge - is not publicly available except as embodied in people
•    Collective tacit knowledge - is woven into the fabric of an organization and is not easily imitated
Barriers to the Sharing of Tacit Knowledge
•    Hierarchies, when they implicitly assume wisdom accrues to those with the most impressive organizational titles
•    Strong preferences for analysis over intuition discouraging employees to offer ideas without "hard facts" to back it up
•    Penalties for failure discouraging experimentation
•    Strong preferences for a particular type of communication within working groups
•    Fear of failing to express the inexpressible when trying to convert tacit knowledge into explicit one
•    Inequality in status among the participants is a strong inhibitor for tacit knowledge sharing, especially when exacerbated by different frameworks for assessing information
•    Uneasiness of expressing emotional life experiences rather than intellectual disagreements
•    Distance, both physical separation and time

Questions:

1.     Do you agree with the views of the Knowledge Management Expert on the need and salience of managing knowledge in organizations? If yes, Why? If no, why not?
2.      What is tacit Knowledge? How is it different from explicit knowledge? Elaborate.
3.     What in your view is the role played by tacit knowledge in creating competitive advantage? Explain.
4.     What are the barriers to sharing tacit knowledge in an organization?  Recommend strategies to overcome these barriers.


DIS08

 Knowledge Management

Assignment - II

Assignment Code: 2015DIS08A2                                Last Date of Submission: 15th May 2015
                                Maximum Marks: 100

Section A (50 Marks)

Q1. How would you describe the concept of a knowledge service to a CEO ? What value
       Would you suggest might be derived from such a service?

Q2. Why does human resource management affect knowledge management?


Section B (50 Marks)

Attempt all the questions given at the end of the Case. All questions carry equal marks.

Case Study: Knowledge Portal at Cisco
By John Schneble
(Sources: http://www.learningcircuits.org/2002/may2002/schneble.html)

Cisco wanted to rapidly grow their new Service and Support Advocacy group, from 20 to 120 people. To accomplish that goal, Cisco needed a way to capture and share the expertise of its more experienced service and support managers. Because this was a new group, training and ongoing support resources were limited. Although Cisco’s corporate intranet contained a portion of the needed resources, the time and effort required by new hires to locate them was costly. Here's how Cisco and their partner VisionCor designed, developed, and deployed a knowledge portal that provides service and support managers with a single source for learning, performance support, and ongoing knowledge sharing needs.
As the leading supplier of high-performance internetworking products, Cisco provides most of the infrastructure for the Internet. With more than 40,000 employees and record growth, the need for quick and easy access to information is vital to Cisco’s ongoing success.
To manage costs and practice what they preach, Cisco runs a significant amount of internal operations on its corporate intranet, which is critical to customer support. Indeed, exemplary customer service ranks high in the minds of Cisco employees—starting at the top. Each night, Cisco CEO John Chambers spends nearly 40 percent of his time listening to customers and personally reviewing all key accounts. In addition, Cisco created the service and support manager (SSM) role to provide a single point-of-contact for large clients. This one-to-one relationship gives customers a resource that understands and even anticipates their needs—a role that benefits both Cisco and the customer.
The business objective
With the goal of hiring 250 service and support managers in a period of 18 months, Cisco needed a comprehensive knowledge management solution that provided new SSMs with immediate access to crucial resources as well as orientation and reference information. Fast access to this information would help reduce the time to proficiency in Cisco's fast-paced work environment. Cisco also needed to leverage the expertise of its experienced SSMs by capturing and sharing their knowledge. Vital to SSMs' success was user-friendly access to all of this information. The three key objectives of the new initiative were
•    Minimize time-to-proficiency. Orient new SSMs within 90 days of hire date by providing just enough of the right information about Cisco, its customer advocacy organization, and the SSM role in order for SSMs to become productive as soon as possible.
•    Maximize performance and sharing of knowledge assets. Provide information specific to the SSM role, such as best practices of how other SSMs handled certain customer situations, goal setting, and advice on when and how to engage other departments within Cisco.
•    Foster ongoing learning and communication. Within Cisco’s geographically dispersed work environment, develop a communication vehicle for sharing information and experiences with other team members.
The solution
Because Cisco is an Internet-centered company, a Web-based resource was essential. Rather than build the resource itself, the company looked to a partner to speed the development process. Senior manager Todd Griffin wanted a partner with experience researching, analyzing, and organizing complex environments. "There are plenty of Internet consulting firms out there, but we needed a partner with real knowledge management expertise and a proven methodology," says Griffin.
Enter VisionCor's Integrated Knowledge Architecture (IKA), which is an object-oriented approach to organizing content based on how the content is used. IKA provides a guide for organizing information, learning, and knowledge into smaller pieces called knowledge objects and building meaningful relationships between those objects. As a result, the end-user can locate the critical information needed to improve performance more quickly and easily. IKA is technology-neutral and can be used to leverage the capabilities of most major portal or knowledge management platforms. According to Griffin, "VisionCor understands how to determine what information to gather or build and how to organize the information so it's useful."
To build Cisco's solution, VisionCor assigned a team of consultants that included expert content developers, information architects, and a project manager. The project plan was developed based on VisionCor's development methodology in conjunction with its IKA methodology. The high-level steps were
•    define the site's purpose
•    define the site's content
•    classify and organize the content
•    identify and develop knowledge objects
•    define the site's organizational and navigational schemes
•    create a site maintenance plan
•    create and rapidly deploy a prototype
•    validate the site design by conducting a usability test
•    make necessary changes based on the usability test
•    continue to maintain, cultivate, and migrate knowledge
•    conduct periodic value-add measurements to ensure continued effectiveness.
Status reports, project schedules, and conference calls kept the VisionCor team in Charlotte in synch with the Cisco teams in Chicago, New York, San Jose, California, and Research Triangle Park, North Carolina. After a complete project and role analysis, the project was divided into four distinct phases.
Phase 1: Quick hits. With new hires already in place and looking for direction, there was an immediate need for a 90-day new hire roadmap. Because the initial portal would be text-based, including rich detail and context was vital. Through interviews with existing SSMs and managers, the VisionCor team gathered, analyzed, and organized the events and tasks required for a new SSM.
The project sponsor and business leads helped select the best people to interview. A mix of new hires and experienced SSMs were consulted to determine the most useful and valuable information to include. However, any SSM who would use the portal was welcome to participate. To minimize the burden on people to contribute to the knowledge portal, interviewers maintained a reporter-type position to solicit content and ensure consistent writing and formatting, which varied based on the content type.
Within 45 days, the most important new hire information was made available on a text-based Website.
Phase 2: Initial development. Because the SSM role was a new and highly strategic one within Cisco, the VisionCor team conducted additional interviews to help build consensus within the company on some of the aspects of the SSM role. With a consensus in place, VisionCor built an overall site map and detailed content plan. The site look and feel was designed around content, audience analysis, and the existing intranet. Information was then converted into a Web format.
Once the site navigation, graphics, and initial content were developed, VisionCor conducted usability tests to ensure that the site structure was intuitive and content was meaningful. Experienced SSMs tested specific scenarios to ensure maximized usability. Testers varied from new hires to experts and leaders. Usability tests also helped to determine what content should be linked to other content to help maximize the content's value.
The entire development process took approximately 90 days from start to finish.
Phase 3: Core development. With the initial content online and tested, development and coding of final site content began. To confirm that the team was still on target, VisionCor conducted additional analysis on the SSM role and reviewed content categorization. The remaining content needed for a full-service portal was gathered, developed, and coded, with additional interviews conducted as necessary.
Next, developers began integrating content so that navigation was intuitive, which required a thorough understanding of the audience and how they would use the portal. To do that, VisionCor employed its own methodology for organizing content into knowledge objects and building relationships between them. Structuring content as objects based on how the information will be used gives developers an intuitive guide for building relationships and links between individual objects, what VisionCor calls chains of inquiry.
Next, the knowledge portal was retested. Users were given varied scenarios or situations and asked to use the Website to find the information they needed to best respond the situation. Developers conducted analysis based on how SSMs used--and didn't use--the portal. In addition to providing feedback, the usability tests also assisted in user acceptance of the site, which is vital to the success of any knowledge management initiative.
The team completed development and testing of the finished knowledge portal in approximately 120 days.
Phase 4: Ongoing knowledge cultivation. Because the portal is a growing collection of knowledge and experience, ongoing development continues through periodic reviews and additions to the Website.
It's important to note that although the project timeline was sectioned into four distinct phases, new content and iterations of the site's design were migrated weekly.

The results
Cisco's service and support advocacy intranet site was very well received within the SSM organization. "Everything I need is in one place. I can find what I need when I need it without having to wait on an email reply, walk around looking for someone, or search through gigabytes of information on the intranet. Plus, after working through difficult situations, I can post my lessons learned on the site so my colleagues can learn from my experiences," says Mike Pusich, SSM for Boeing. Rob Dacey, SSM for GM adds, "It guided me through my first 90 days, helped me build a support team,and introduced me to other SSMs. Now I'm using it to define my objectives. Basically, this site just makes my job easier and gives me more time to focus on serving my customer."
Currently, Cisco is working with VisionCor to leverage the knowledge and benefits gained from the SSM project into other areas of their organization. Cisco's record-breaking growth and razor-sharp focus on customer satisfaction could be problematic, but VisionCor’s knowledge management expertise coupled with Cisco’s commitment to customer satisfaction turned Cisco’s information overload into knowledge-on-demand.
Answer following questions:

1.    With the help of Internet and other sources of information acquire knowledge about ‘Networking Industry’ in general and CISCO and its competitors in particular and write a report in 500 words.
2.    In the above case identify problems and rewrite the solutions suggested.
3.    With your imagination (or based on your experience) describe a scenario where such an approach of knowledge sharing and dissemination can be (or has been) designed and implemented.
4.    Discuss a structured approach to monitor and evaluate on a continuous basis the process described in the case.  

AIMA Assignments: Contact us for answers at assignmentssolution@gmail.com

DIS04

Computer Networks

Assignment - I

Assignment Code: 2015DIS04A1                                     Last Date of Submission: 15th May 2015                                    Maximum Marks: 100

Section A
Q1. Why is digital signal considered better than analog signal? Explain their advantages.
Q2. What is the purpose of placing twists in a pair of wires used as transmission medium?
Section B
Attempt all questions provided at the end of case reference . All questions carry equal marks.
Case Reference: Starbucks Deploys Wireless LANs
Starbucks is the number one U.S. specialty coffee retailer, and it operates more than 5000 coffee shops in office buildings, shopping centers, airport terminals, and supermarkets in some 20 countries world wild. Starbucks sells coffee drinks and beans, pastries, and other food items and beverages, as well as mugs, coffeemakers, coffee grinders, and storage containers. The company also sells its beans to restaurants, business, airlines, and hotels, and it offers mail-order and online catalogues. Starbucks has expended into coffee ice-cream (with Dreyer’s) and makes Frappuccino, a bottled Coffee drink (with PepsiCo.)

In January 2001, Starbucks and Microsoft announced an agreement to jointly offer high-speed internet connections in all 3000 Starbuck’s stores throughout North America. Starbucks choose Compaq Computers as the main hardware supplier for this project, now part of Hewlett-Packard. H-P is providing iPaq handheld computers, which Starbucks customers can use to access broadband content and services.

The project is part of overall Starbucks strategy to upgrade its operations including the introduction of Starbucks customer cards, which are intended to speedup orders and eventually allow customers to order drinks over mobile phones. Starbucks also believes that giving customers the ability to access a 10-Mbps wireless LAN while enjoying a cup of coffee on a comfortable couch will lure more customers into its coffee shops during off-peak post-breakfast hours-the company currently does 80 percent of its business in the morning. Starbucks has 15 million customers a week, and 90 percent of them use internet. So providing internet access may be a benefit to many of its customers. Starbucks offers the service at fees ranging from $2.50 for 15 minutes to $59.95 per month for unlimited access.

MobileStar Network Corporation was picked to install an industry standard 802.11b LAN complete with wireless radios and antennae in Starbucks stores. One LAN is capable of supporting 20-40concurrent users. Latter, MobileStar pulled the plug on its wireless network services, so Starbucks partnered with the wireless subsidiaries of Deutsche Telekom, I-Mobile International, and VoiceStream wireless. Customers access the network through a portal that Microsoft developed for Starbucks on its MSN online service Access to the portal carries no change, but once customers surf beyond it or check their email, they will either have to enter a user number or signup online, the first installation were completed in spring 2001 in the Pecific Northwest. Starbucks planned to expand its internet access for customers to all 3000 North American outlets and 70 percent of its stores worldwide by the end of 2003.

Starbucks is weighing several options to encourage use of the wireless LAN technology, including the sale of wireless modem cards in its stores—provided it does not detract from the coffee experience. Starbucks has also started discussions with major laptop computer manufacturers to provide incentives for customers to purchase the wireless LAN Devices.

Some industry analyst believes that Starbucks has positioned itself too far ahead of the technology curve by launching this service so early. After all, not that many people have wireless modem today. A writer for Fortune magazine tested access to the internet from Starbucks outlets and complained that he had to visit five stores before he could get it to work. He also pointed out the total lack of the publicity for the wireless networks—there were no signs, no brochures, no one available to offer customer service, nobody in the stores who knew anything about the wireless LAN.

Rollout plans were delayed when MobileStar Network Corporation shut down its offices in October 2001. By February 2002, Starbucks confirmed that VoiceStream the North American affiliate of T-mobile International had acquired MobileStar and will be the service provider for the high speed internet access that Starbucks is continuing to rollout to company-owned stores.
   
    
Questions:
1.    What evidence might support critics’ comments that Starbucks has positioned itself too far ahead of the technology curve?
2.    Discuss the potential risk of “pushing” the technology so “hard” that it takes away from the coffee experience
3.    Make a list of action that are required to complete the rollout of this new technology in a manner that will provide an effective and useful service to the customers.
4.    What is your opinion about the Starbucks strategy ? 









DIS04

Computer Networks

Assignment - II

Assignment Code:2015DIS04A2                                     Last Date of Submission: 15th May 2015                                    Maximum Marks: 100

Section A
Q1. What do you understand by an IP Address?.
Q2. Explain briefly the attributes of the client/server computing model.

Section B
Answer the questions given at the end of the case.
Case Study

You are interested in starting your own Music Store, Quality Sounds, in a suburban area of your town. You need to design and build a network and computing solution for your stores. You have done some initial planning and you will start with two stores (but you plan to add two more stores across town within one year). Your store will sell new and used music and allow customers to get “online” in your stores and download music. You also will offer classes on how to setup music downloads and configure MP3 devices. You took computer networking courses in college and you feel you can tackle this solution yourself. Upon initial planning, you have identified the following requirements for your network:

•    Connects three office computers and one computer used for Point-of-Sale (POS) services at each of your stores. You also want six (6) computers in the lobby/store where patrons can download music and you can run “training classes” for people to learn about using MP3 players and get other basic information. The two offices have to be connected into one cohesive network, sharing POS services and other critical company information. You also need to provide a “hand out” casual area for people to stop in and discuss music and connect wirelessly to the Internet (you might even offer free coffee to entice people to come in to your store).
•     Provides adequate security for all of the company communications and documents (especially sensitive sales documents). All POS services must be protected. All general network access should be segmented from the company POS services.
•     Fast and have additional capacity as the company grows
•     Provides for centralized printing
•     Supports the eventual addition of other stores to the network
•     Provides customers with a general information Website and a secure Website where clients can buy services, and products
•     Provides for limited downtime (24 hour downtime maximum)
•     Provides for centralized management and control of the computers in the two stores, so that you can maintain the network from off-site
•     Provides for long-term cost effectiveness
•     Provides a suite of software tools for the employees to effectively communicate and a POS solution for the stores

The company does not have any equipment. Your plan should include a complete network and computer system that meets these requirements and future expansion plans.
The two store locations will (eventually) be within a five-mile radius of each other. The locations are within a suburban area that has current technological infrastructures and related technology offerings. The stores will need a sales system and print services for invoices.

Q.  Complete your proposal including costs for computing equipment, network infrastructure,   network servers, printers, and related hardware, software, and accessories. Include as much detail as possible as well as justification as to your selections. As you are a small business, cost is a major factor and should be minimized.

AIMA Assignments: Contact us for answers at assignmentssolution@gmail.com

DHR12

Organisational Change and Development

Assignment-I

Assignment Code: 2015DHR12A1                                            Last Date of Submission: 15th May 2015
                                                  Maximum Marks: 100
Section-A
Each question carries 25 Marks.

1.  i)    Compare and contrast the five “stems” of  OD – laboratory training, action research/ survey feedback, normative background, quality of work life, and strategic change.
ii)    Discuss the role of the OD practitioner in depth. Outline the skills associated with effective practitioners.
                                                    (15+10 Marks)

2.    i)    Describe the framework of the general model of planned change.  Include a   discussion   of
each activity and a typical sequence of events.

ii)    Describe an effective diagnostic model at the organization-level. Discuss its major inputs,
outputs and strategic orientation.                                                                                    (15+10 Marks)


Section – B Case Study (50 Marks)
      
General Electric is a diversified services, technology, and manufacturing company and operates in more than 100 countries and employs nearly 315, 000 people worldwide. The company is committed to achieving customer success and worldwide leadership in each of its businesses and seeks remarkable people to attain that uncompromising goal. In recent years, the company has moved from a focus on heavy industry to a strong emphasis on services and high technology. Senior professionals and executives, identified as high potential candidates and capable of playing key roles in GE’s businesses or functions, attend courses in the executive development sequence. There, they further develop leadership skills necessary to run a global, competitive business. These courses provide a significant development experience, emphasizing strategic thinking, executive leadership and cross-functional integration.

Participants develop executive skills in relation to key business issues, such as developing business strategy, competing globally, managing diversity and globalization, leading teams, managing change and advancing customer satisfaction. The company has long been known for developing some of the best leaders in business, and some of the most widely practised business techniques. GE invests about $500 million annually on training and education program around the world, from assembly lines to corporate classrooms to boardrooms. Although the scope of its activities is global, the focus of GE’s commitment to excellence in leadership development is Crotonville, the world’s first major corporate business school. Through Crotonville programs, the GE personnel are tackling new business problems around the world and sharing their problems with customers, suppliers and colleagues throughout GE.

Beyond leadership education and functional training, Crotonville plays a crucial role as an agent of cultural change in GE. The most important symbol of that culture is the GE Management Values statement, a living document that represents what GE believes to be the most important qualities needed for success. When creating the values statement, Jack Welch, the former Chairman, GE used Crotonville participants as a sounding board. Today, thousands of Crotonville attendees  continually debate the meaning of GE’s  values, suggesting revisions when needed, to ensure that they remain relevant to each individual in GE. Having participated in the discussion, attendees then become messengers who transfer the values to the people with whom they work.

Case Questions:
1.    GE was one of the first companies to have a corporate university. What are the advantages that companies gain by having corporate universities? How does it support the OD initiatives of any corporate organization?

2.    GE has achieved good results by establishing corporate university. What are the advantages of having such a management development program?

3.    Discuss how such management development program becomes an integral part of Organization Development.                              (15+15+20 Marks)





























DHR12

Organisational Change and Development

Assignment-II

Assignment Code: 2015DHR12A2                                            Last Date of Submission: 15th May 2015
                                                  Maximum Marks: 100
Section-A
Each question carries 25 Marks.
1.  i)    Describe process consultation. Discuss when it should be used and how it applies to organization development.

ii)    What are the key components of group level diagnosis? Discuss how the absence
of any one of these components can impact outputs.         (15+10 Marks)
   
2. i)      Describe either a functional, self-contained, or matrix structure and discuss its advantages and disadvantages.


ii)     Under what conditions are customer-centric structures appropriate? What
challenges does this type of organization structure face and why?
                                    (15+10 Marks)   


Section – B Case Study (50 Marks)

Digital Electronics (Digital) was established twenty years ago by Ramprasad Goud, The mission of this manufacturer of consumer electronic goods was to produce high quality, innovative products at the lowest possible costs, that catered to the ever changing needs of its customers. The organizational structure at Digital was characterized by a tall hierarchy with a number of managerial levels between the shop floor executives and the CEO. The leadership style that prevailed in the company was the autocratic form, wherein employees were seldom involved in the organization’s decision-making process. All crucial decisions were made by the top management and merely conveyed to employees at the lower rung of the organizational structure.
Though Digital had been performing well in the industry, its profitability levels and market share were gradually dwindling. This was a serious cause of concern to the CEO, Goud, who invited top level managers to give their suggestions, to tackle this problem. A discussion that followed during the meeting identified the deteriorating quality of their products coupled with lack of innovation (especially during the recent past) as the main reason for the low demand for their products in the market.

Mohan Das, the Director-HR, blamed the organizational structure for the depressing innovative spirit among the employees, which in turn, hit the sales. He suggested that Digital introduce the concept of self-managed teams (SMTs) to overcome this crisis. By providing enhanced responsibility and authority to a group of individuals through SMTs, Digital might enhance employee commitment which would result in improved quality of goods, and in the productivity and efficiency of the workers.

The whole team was taken aback for a moment, when they heard the proposal of Das. Goud himself felt that the bureaucratic culture at Digital might not encourage the implementation of SMTs. “Besides, there are other issues that have to be dealt with, to ensure success of the SMTs,” said Goud. Das then pointed out recent organizational examples which had benefited by implementing the concept of SMTs. One of the examples was that of a reputed telecom company that had witnessed a 26% increase in its sales after the introduction of SMTs in its sales force.

Though the management was not much convinced about the proposal, it decided to introduce SMTs in its production and R&D departments. After a careful analysis of the organizational culture and the benefits likely to be accrued to the organization through its new initiative, Das implemented the concept of SMTs in both the departments. Although Digital faced a few problems during the initial stages, it began reaping the benefits of improved productivity and greater innovation among its employees. Soon, the sales figures picked up and the company recorded huge profits and increased market share, but also reaped the benefits of a motivated and a committed workforce.

Case Questions:

1.    Mohan Das carefully analyzed the organizational culture at Digital before deciding to implement the concept of SMTs. Discuss the various cultural issues that might have cropped up during the implementation of SMTs at Digital Electronics.

2.    Briefly describe the characteristics of self-managed teams and the benefits that are likely to accrue to the organizations which implement them.

3.    How do you think the concept of SMTs and good organizational culture relate to the concept of organizational development?                      (15+15+20 Marks)

AIMA Assignments: Contact us for answers at assignmentssolution@gmail.com

DHR10

    Industrial Relation & Labor Laws
    Assignment – I
Assignment Code: 2015DHR10A1                                        Last Date of Submission: 15th May 2015
     Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
    Section-A (50 marks)  

1.     Industrial Relations Policy of the Government of India has shifted from regulation, to     protection, to enabling. Terms of reference of the National commission are set in view     of the emerging economic scenario. Trace the Government Policy formation and     paradigm shifts therein over the years.

2.     What are the usual causes of Industrial Disputes in India? Has the Industrial Relations     Machinery in India served the desired purpose of prevention and settlement of     Industrial disputes over the years? Illustrate with two instances that may bring about     adequacy or otherwise of the present provisions.

Section-B (50 marks)  
Case Study

ABC industries ltd

ABC industries ltd, has a work force of more than 1200 employees, engaged in manufacture of cotton yarn of different counts. It has modernized its plant and to maintain good human relations, ABC Industries has extended more than customary facilities to its employees, and they enjoy better wages and benefits as compared to industries engaged in similar activities.

The CEO of the Company and executives in charge of different areas comprise the management cadre. IR department is headed by Manager (IR). The employees are represented by four trade Unions; say A, B, C, and D unions. Union A and B are recognized by the management for purposes of negations, otherwise all unions maintain cordial relations with management, individually and collectively.  

The Company had been distributing bonus to the workers at rates more than the statutory minimum prescribed under the Payment of Bonus Act, 1965. Last year, for declaration of rate of bonus, management had a series of meetings/ discussions with the recognized unions and finally announced a bonus which was in turn agreed upon by all recognized unions.

The next day, when the management prepared the settlement and presented it before the union representatives for signatures the leader of Union B refused to sign and walked out, stating that the rat of bonus declared was not sufficient. The next day Union B issued a strike notice to the management asking of higher bonus. The management tried its level best to avoid unpleasant situation, but in vain. The members of Union B went on strike; they were joined by members of Union D.

During its efforts to know the reasons for the deviant behaviour of the leader from Union B, it found that the leader of Union A, soon after the first meeting had stated to a group of workers that the management had agreed to the declare bonus at the current rate because of his efforts and that the leader of Union B had miserably failed in its talks with management. This observation by leader of Union A reached the leader of Union B, and he felt insulted. On identifying the reason for Union B’s strike call, the IR manager brought about a compromise between the leaders of the Union A and B. The workers on strike thereafter resumed work and the settlement was signed for the same amount of bonus as agreed upon earlier in the meeting.

Questions:

1.    What should be the management’s long term strategy for avoiding recurrence of such inter-union differences?

2.    How would you handle this IR situation, if you were the manager IR, when Union B resorted to strike?
















DHR10

    Industrial Relations & Labor Laws
    Assignment – II
Assignment Code: 2015DHR10A2                                        Last Date of Submission: 15th May 2015
     Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
    Section-A (50 marks) 

1.     Indian Labour Legislations have been greatly influenced by ILO’s conventions and     recommendations. Elucidate by establishing direct relation between the conventions /     recommendations by ILO and provisions contained in any two prominent labour     Legislations.

2.     ‘The statutory social security schemes in India cater only to a small proportion of the     population. Even all industrial workers are not covered as smaller establishments and     those drawing salaries exceeding certain limits are excluded from the benefits of various     social security programs.’ Name any five prominent social security legislations and     justify the above statement with help of provisions of two of these legislations.

Section-B (50 marks)  
Case Study

A joint venture company, Indo-Czech Private Ltd. was established in 2002, to manufacture auto parts. It established its plant at Noida (UP) on a Plot allotted by UP State Industrial Area Corporation. Commercial production commenced in 2005. The same year, the Indian partner purchased an Industrial Plot developed by Haryana State Industrial Corporation at Manesar, near Gurgaon, Haryana. The Indian partner planned an industrial unit to assemble a related product, again with foreign technology from a foreign firm of a different Nationality.  Though there was no violation of the legal agreement entered into between the Indian Party and the Czech Company which had established business at Noida, the Czech Company did not appreciate the move by the Indian partner to go on his own and not involve them in the business project at Manesar.

The JV with Czech company was doing well and declared its first-time dividends in 2008, and continued to grow and make profits for the next three years.  Towards the close of 2011, the Czech Company decided to part ways, and the Indian promoter inducted two of his school friends, on the Board of Directors who agreed to buy the stock held earlier by the Czech Company, in equal proportion.The new management made many changes including the following:

a)    They increased the salaries of executives and staff of the Unit to reduce the gap in the pay structure of the executives and staff of this Unit and the one run by the promoter director at Manesar, Haryana.

b)    They invested 30 Crores for up- gradation of the facilities at the Factory at Noida.

c)    They shifted from 6days working to 7 days working per week t improve the productivity and enhance the cost –effectiveness of the Unit.

The shift from 6 days to 7 days working without any financial gains made workers resist the change. At this Juncture, Corporate Manager (IR) intervened and promised the workers that they would be paid for 30 days instead of 26 days, but Director (HR) and GM (Operations), refused to agree to this since they were not involved when the corporate manager (HR) made the commitment.

The promise was not fulfilled which further complicated the problems. The issues kept on lingering for 6 months. No decision could be taken because of the difference of opinion among senior executives. In June 2012, the workers ‘gheraod’ the GM (Operations) to pressurize management. They succeeded to the extent that the management agreed to give financial benefits with retrospective effect of 4 years making it one additional year over and above 3 years of normal agreement. Workers were asked to give a notice of change which the workers could not give till December, 2012 because of disagreement among themselves. In the mean time, on recommendations of GM (Operations) ir was decided to appoint an Assistant Manager (HR). This appointment took 3-4 months because of discord in opinions of GM (Operations) and Director (HR). However, Mr. Smart was appointed Assistant Manager (HR) in October 2012.

In December 2012, the workers gave a notice of change demanding an increase of Rs.2200/- per month. In January 2013, a notice of change was given by management side. In February the negotiations started and continued till July. GM (Operations), the new Corporate Manager (IR), Ms Smily and Mr. Smart were to represent the management and seven members of the union were to represent the workers, besides the General Secretary of BMS.

The first two rounds of meeting did not lead to any outcome as none of the parties were ready to budge. This made the General Secretary of BMS withdraw as he was fed up with the rigid stand of union leaders. During the third meeting (which was not attended by the General Secretary, BMS) union leaders came down to Rs. 1200/- from Rs.2200/-. The Minutes of the meeting were jotted down but the union leaders refused to sign. Taking advantage of the occasion, GM (Operations) and the Asstt. Manager (HR), had a secret meeting with the General Secretary of BMS in a hotel, who advised the representatives of management to maintain a low profile for a few months to crack down the workers’ aspirations who had very high expectations. It was observed by the Asstt. Manager (HR) there was perceptual differences between senior and junior union leaders. Taking a cue from this, he adopted a policy of divide and rule. He took into confidence a senior union leader and had a secret meeting with him to explore the last settlement amount, suggesting that management could go only up to Rs. 450/-. He also took a junior Union Leader into confidence and convinced him that management was not going to bend before the demand of the workers. He further spread the rumors that no wages would be given retrospectively.

The next day meeting resumed in which union representatives came down to Rs. 750/-       (because of pressure from workers) beyond which they were not ready come down.

It was decided that the number of the management representatives and the workers would be restricted to four (two on either side). Accordingly a meeting was held and it was resolved that Rs. 575 on an average be given per month. An MOU was drafted by the legal manager at the Corporate Office and duly signed by the all those who were present at the meeting where the agreement had been reached.

When the papers were sent to Director (HR), he had his ego hurt and objected to MOU, and picked holes in the agreement arrived at.

Questions

1.    Did the management use an ethical approach during negotiations, in this case? Give reasons to support your answer.

2.    Should the Director (HR) raise objections after the MOU had been signed?

3.    Assuming that you are corporate manager (HR), what will be your strategy in the given case?

AIMA Assignments: Contact us for answers at assignmentssolution@gmail.com

DHR06
International HRM

Assignment-I

Assignment Code: 2015DHR06A1                                                   Last Date of Submission: 15th May 2015
                                                     Maximum Marks: 100
Section-A
Each question carries 25 Marks.

1.    You are from Corporate Headquarters. As a member of the HR department, you are responsible for managing international assignments. You are to present a 10 minute summary of the key aspects of expatriate selection to a regional meeting of subsidiary managers, none of whom have any experience in HR or in selecting expatriates. The corporate objective is to use intra-regional international assignments for cross-border project teamwork between their various operations within the region. What aspects of expatriate selection should you highlight in your presentation?

2.    Describe the main difference in the Going Rate and Balance Sheet approaches to international compensation. Why it is important for multination firms to understand compensation practices of other countries?

Section-B (50 Marks)

Case Study
Case: Challenges for IHRM
Globalization is here to stay and companies in a mature state of growth in home markets are constantly looking for new growth opportunities in new markets. Innovation and technology are making it increasingly necessary for corporations to expand internationally if they are to survive in today’s economy. The recent credit crunch is a very good example of how integrated global markets have become. This because the financial disasters suffered by companies such as Lehman Brothers and AIG affected markets in Europe and other parts of the world. The success of the Nikkei in Japan is closely tied to the performance of Wall Street. As a result Lehman Brothers’ problems in America affected jobs in the UK and other markets. HR managers need to be strategically placed to anticipate how to deal with job losses, changing macro economic trends and shifts in operational strategies and business objectives.
 
Training programs that enable workers to develop and adapt to changing KSAs must be instituted by the learning and development team within a global context. Also, ongoing conversations with labor unions will enable corporations to avoid negative public relations exposure should the economic depression worsen. Technology should be used to foster cooperative competition internally, so that organizations are more agile in anticipating market demands and new market opportunities. Conversely, technology could be the undoing of collaboration since it could foster internal competition and “turfism”, if workers perceive their jobs will be outsourced to cheaper labor in overseas markets. Global HR should communicate such initiatives to forestall any rumors in this regard.
 
The recent US presidential election is a clear indicator of global changes. The president elect is a clear case for diversity of ideas and change of the prevailing order. This is most poignant because a cross-section of US society, irrespective of race and national origin unanimously voted for a minority to represent our interests across the globe. The US president oversees the world’s most powerful and largest economy [hence he is the CEO of the largest corporation in the world]. This is because liberal democracy is representative of free market policies which dictate the operations of MNCs across the globe.  Weisman (2008) reports “Mr. Obama must cement support in Red States he flipped and Blue States he struggled in, placate liberal activists and minority groups whose electoral boost was crucial, and form a government that” . Obama has met with Hilary Clinton [who represents progress for women in the work place], in reference to a possible role in his cabinet. He has also repeatedly made a case for multilateralism in dealing with global governments. If this does not make a case for Global HR, I am not sure what does.

Case Questions:
1.    In light of recent global economic crisis, examine the challenges you foresee for International Human Resource Management in future?

2.    Under the circumstances identified in the case, discuss the cultural imperatives for International Human Resource Management. Justify your answer with suitable examples.    


DHR06
International HRM

Assignment-II

Assignment Code: 2015DHR06A2                                              Last Date of Submission: 15th May 2015
                                                 Maximum Marks: 100
Section-A
Each question carries 25 Marks.
1.    You are the Group HR director for a small company that has begun to use international assignments. You are considering using an external consulting firm to provide pre-departure training to employees, as you do not have resources to provide this ‘in-house’. What components will you need to be covered? How will you measure the effectiveness of the pre-departure training programme provided by this external consultant?

2.    Discuss the major factors associated with appraisal of expatriate managerial performance.   


    Section-B (50 Marks)

Case Study
Case: Was Mr. Kapur repatriated well?
With great difficulty Mr. Kapur got admissions for his son and daughter in a reasonably good public school in Delhi.   The family moved to Delhi after five years of overseas assignment in London.   Adapting back to life in Delhi has not been as easy as Mr. Kapur and his wife Mrs. Sonalika thought.   After getting used to living in a large house with a big garden in the countryside for 5 years, their apartment in Delhi seemed much smaller than before. Although they lived in a luxurious condominium complex with facilities such as swimming pools, jacuzzis, saunas, gym and tennis courts, they simply missed the vastness of the English countryside and the lifestyle that they led in England.  Mr. Kapur no longer had his fancy cars and drove a Maruti Zen, as he used to do 5 years ago, before he left Delhi.  Mrs. Sonalika had to give up her gardening. The children missed their teachers and friends at school.  And they all missed their dog terribly. It was impossible to bring it back since it would have been too large for their apartment.

While the whole family was having dinner one evening, Mr. Kapur's elder son, Nishant, suddenly busted out, 'I really don't want to go to school anymore! ‘‘Me too!'  Karan, the younger one, followed.

Total silence fell upon the dining room.  Tears started to trickle down Mrs. Sonalika's face and she began sobbing uncontrollably.  She, too, was unhappy. All the tensions and unhappiness that had built up over the past 6 months suddenly came out in the open.   She could no longer pretend that it was great to move home.   She knew that all of them were, in one way or another, unhappy with their new life back in Delhi.

Five months ago, Nishant and Karan went to school on the first day with a bright and cheery face, but came back quiet and gloomy.   Especially Nishant: he hadn't been quite his usual chirpy self since then.   Except for the weekends, the boys were either tired or felt ill every morning, and wanted to skip school.   Mr. Kapur and Mrs. Sonalika found out that they did not like going to school because they felt out of place and were unable to make new friends.   They said that very often, their teachers and classmates could not understand what they were saying and neither could they fully understand what their teachers and classmates were saying.   Having lived in England since they were 2 and 3 years old, respectively, children grew up speaking English with a clear British accent.   So, being in an environment where their new teachers and classmates spoke Hinglish - English with an Indian accent and Indian slang words - communication became a problem.   Sometimes, their classmates made fun of their accent by imitating them.   They also found Hindi classes tough since they did not have Hindi classes in England and they spoke English at home.   Therefore, Mrs. Sonalika engaged a private tutor to give the boys additional Hindi classes.   Mrs. Sonalika and Mr. Kapur consoled them and told them that they should give school a try and that things obviously did not get better.

Mrs. Sonalika and Mr. Kapur could empathize with their children.   Although Mrs. Sonalika was happy to be back in Delhi so that she could take care of her mother. In the beginning, her friends were glad to have her back and listened to her about her life in England with interest. However, this interest waned and they started switching topics whenever she mentioned England.   Soon, Mrs. Sonalika found it difficult to identify with her friends.    Sometimes, she couldn't help feeling that some of them who had always lived in Delhi were rather myopic and uninteresting, whereas at other times, she felt left out when they talked about their jobs and office politics.   Another problem was job search.   Mrs. Sonalika was keen to start working again, but with the economic downturn in Delhi, there were few suitable job openings.   The application letters that Mrs. Sonalika sent either had no replies or were rejected.

For Mr. Kapur, he began to regret his decision to accept the job in Delhi.   When he accepted the position, he knew that it would be a demotion in rank and the scope of his responsibilities would be less.    However, he did not expect that he would be feeling bored with the job after just a few months.

Mr. Kapur started asking the Global vice-President of the division about more senior positions, but was told that such positions were not available at the moment and that he should be patient.   With the downturn of the global economy, there was no senior management level position available at the moment.   Mr. Kapur also got the same answer from the other Divisions.   After 6 months, Mr. Kapur realized that his 'temporary positions might not be 'temporary' after all, since senior management positions in Delhi would not be available for quite a while.   He felt trapped.

The outbursts by his two children and his wife reminded Mr. Kapur of his own frustration with his current job situation and his anger of being not offered the Regional General Manager position in the Specialty Chemicals Division. "This is simply unfair! What's the point of getting international experience when it doesn't get you a decent job back home? he thought, bitterly. ‘How long am I supposed to wait? I've had enough! There must be companies out there that value international experience.
 


Case Questions:

1.    What are the re-entry shocks for Mr. Kapur's families?                                           (5 Marks)

2.    What coping strategies would you suggest as HR specialists to Mr. Kapur and Mrs. Sonalika for quicker adjustment in the new situation on repatriation?                 (5 Marks)

3.    What are the various career/job related issues confronting Mr. Kapur and what options are available to him?                                                                                                (5 Marks)

4.    Do you agree with repatriation program/policy of the company, if not suggest appropriate repatriation program?                                                                      (10 Marks)

AIMA Assignments: Contact us for answers at assignmentssolution@gmail.com

DFM15

Business Analysis and Valuation
    Assignment – I

Assignment Code: 2015DFM15A1                         Last Date of Submission: 15th May 2015
                                                                                       Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
    Section-A (50 marks)  
Q.1.    One of the fastest growing industries in the last twenty years is the memory chip     industry, which supplies memory chips for personal computers and other electronic     devices.  Yet the average profitability for this industry has been very low.  Using the     industry analysis framework, list all the potential factors that might explain this     apparent contradiction.

Q.2.    ABC Company recognizes revenue at the point of shipment.  Management decides to     increase sales for the current quarter by filling all customer orders.  Explain what impact     this decision will have on:
•    Days’ receivable for the current quarter
•    Days’ receivable for the next quarter
•    Sales growth for the current quarter
•    Sales growth for the next quarter
•    Return on sales for the current quarter
•    Return on sales for the next quarter

SECTION B (50 Marks)
Case Study: Tarapore Company Limited

The shareholder’s equity section of Tarapore Company Limited on March 31, 2009 was as follows:
Share Capital
10% Preference Shares, Rs 100 Par Value, 5000 shares              Rs 5,00,000
Equity Shares, Rs 10 Par Value, 5000 shares authorised and
3,00,000 shares issued and fully paid up                    Rs 30,00,000
                                    ----------------
                                         35,00,000
                                    -----------------
Reserves and Surplus
Capital Redemption Reserve                         Rs 4,00,000
Share Premium                                       9,00,000
Revaluation Reserve                                 7,00,000
General Reserve                                      10,00,000
Profit and Loss Appropriation Account                                 17,00,000
                                    ---------------
                                       47,00,000
                                    ---------------
Total Shareholder’s Equity                                                      82,00,000
                                    ___________

On May 5, the board of directors decided to recommend a dividend of 10 percent on preference as well as equity share capital. The net profit for the year had been transferred to retained earnings from which the dividend would be paid.


Questions

1.    Compute the book value per share on March 31, 2009 (Hint: the estimated liability for payment of dividends should be deducted from retained earnings.)

2.    Tarapore Company’s equity share was quoting at Rs 120 on the balance sheet date.

3.    Can the company raise additional equity? If yes, how much?

4.    What was the maximum ratio of bonus issue the company could have made on the balance sheet date? The company would like balance of Rs 6,50,000 to be left in the retained earnings after the bonus issue.




DFM15

Business Analysis and Valuation
    Assignment – II

Assignment Code: 2015DFM15A2                         Last Date of Submission: 15th May 2015
                                                                                       Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
    Section-A (50 marks)  

Q.1.    Intergalactic Software Company went public three months ago.  You are a sophisticated     investor who devotes time to fundamental analysis as a way of identifying mispriced     stocks.  Which of the following characteristics would you focus on in deciding whether     to follow this stock?
•    The market capitalization
•    The average number of shares traded per day
•    The bid-ask spread for the stock
•    Whether the underwriter that brought the firm public is a Top Five investment banking firm
•    Whether its audit company is a Big Four firm
•    Whether there are analysts from major brokerage firms following the company
•    Whether the stock is held mostly by retail or institutional investors

Q.2.a.    What are likely to be the long-term critical success factors for the following types of     firms?
•    a high technology company such as Microsoft’s take-over of Nokia mobile phone business.
•    A large low-cost retailer such as Reliance Fresh.                    (12 Marks)

b.    How useful is financial accounting data for evaluating how well these two companies are     managing their critical success factors?  What other types of information would be     useful in your evaluation?  What are the costs and benefits to these companies from     disclosing this type of information to investors?                       (13 Marks)


SECTION B (50 Marks)
Case Study

Senior executives of Laxmi Rice Mill Ltd have been considering the proposal to replace the existing coal-fired furnace in the paddy boiling section by a new furnace is cyclone type husk-fired furnace. The capital cost of the new furnace is expected to be Rs 1 lakh. It will have useful life of 10 years at the end of which period its residual value will be negligible. The present furnace has a book value of Rs 15,000 and can be used for another 10 years with only minor repairs. If scrapped now, it can fetch Rs 10,000 but it cannot fetch any amount if scrapped after ten more years of use.

The basic advantage of the new furnace is that it does not depend on the coal whose supplies are becoming increasingly erratic in recent years. On a conservative estimate, the new furnace will result in a saving of Rs 25,000 per annum on account of eliminated coal cost. However, the cost of electricity and other operating expenses are likely to go up by Rs 8,000 and Rs 4,000 per annum respectively.

The husk which results as a by-product during the normal milling operations at 3,000 metric ton of paddy milled per year is considered adequate for operating the new furnace. On an average, for every metric ton of paddy milled, the husk content is 20 per cent. At present, the husk resulting during the milling operations is sold at a price of Rs 50 per metric ton. Once the new furnace is installed, the husk will be diverted for own use. ‘White Ash’ which constitutes about 5 percent of the husk burnt in the new furnace, will be collected in a separate ash-pit as it has considerable demand in the refractory industry. It can be sold very easily at a price of Rs 1,500 per metric ton.

The new furnace will require a motor of 15 HP, whose cost is not included in Rs 1 lakh, the capital cost of the furnace. A 15 HP motor is lying idle with the polishing section of the Mill which can fetch an amount of Rs 3,000 on sale. It has a net book value of Rs 5,000. The motor can be used for the new furnace. At the end of the ten years, it can be scrapped at zero residual value.

All the assets of the company are in the same block. Depreciation will be on straight-line basis and the same is assumed to be acceptable for tax purpose as well. Applicable tax rate is 35 per cent and cost of capital is 12 per cent.
Questions:
(i)    Formulate the incremental net after-tax cash flows associated with the replacement project.
(ii)    Also calculate the project’s NPV.
(iii)    Give your recommendation.  
                                                    (Marks 20+20+10)

AIMA Assignments: Contact us for answers at assignmentssolution@gmail.com

DFM10

Financial Risk Management
    Assignment – I

Assignment Code: 2015DFM10A1                         Last Date of Submission: 15th May 2015
                                                                                       Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
    Section-A (50 marks)  

Q.1.    What are the different types of risk influences on investment?  Explain systematic and     unsystematic risks.

Q.2.    a.    What is IST?  What is its biggest challenge?                        (10 Marks)

    b.    What steps has IST followed to meet its biggest challenge?                (15 Marks)

SECTION B (50 Marks)
Case Study

The UK Treasurer of A H Corporation expects to receive a payment for wool exports to a customer in Munich in 3 months time. Her marketing department has sold 1000  “ 100 % Wool suits” for a delivered price of 250 Euros each. In the financial times on 10th June she reads the following:

Spot FX Rate                 0.850(Euro/Pound)
3 month Forward FX Rate        o.853(Euro/Pound
Pound 3 month interest rate
                    Annualised        r=5(9/16) (=0.055625)
Euro 3 month interest rate
                    Annualised         r=7(1/16) (=0.07625)

Questions
a)    Explain using the above data how the Treasurer can hedge her receipts in Euros by
i)    taking forward cover
ii)   taking money market cover

b)     What would be the amount of Sterling received if the Treasurer took an uncovered (open) position and the spot rate in 3 months time are as follows:
          
   i) 0.653(Euro/Pound)
                ii)  0.658(Euro/Pound)
    iii) 0.640(Euro/Pound)

In each case, compare the hedged outcome with the uncovered outcome.

c)     Does the set of interest and exchange rates prevailing on 15th June conform with covered interest parity? If not, explain how equilibrium will be established in the relevant markets.   

DFM10

Financial Risk Management
    Assignment – II

Assignment Code: 2015DFM10A2                         Last Date of Submission: 15th May 2015
                                                                                       Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
    Section-A (50 marks)  

Q.1.    Explain the development and regulation of derivatives markets in India.  Support your     answer with examples.

Q.2.    How are the prices determined in futures contract?  Who are the major players in     Future market in India?


SECTION B (50 Marks)
Case Study: Calipso Capital Consultants

Calipso Capital Management (CCC), an investment management firm with offices throughout Ohio, is headquartered in Cincinnati. CCC normally actively manages accounts for high-income individuals with assets of $500,000 or more. Peter Myers, managing director of CCC, thought the increased interest of clients in security op¬tions required more than routine advice because he knew that many clients did not fully appreciate the risks and hedging aspects of buying and selling puts and calls. He had personally spent many hours explaining the vocabulary and technical trad¬ing aspects of option vehicles to clients who found the area exciting but nonethe-less arcane.

            EXHIBIT 1        
        Bio-Genetics Corp. Option Quotes    
STOCK PRICE: 162                    
        CALLS             PUTS
STRIKE                    
PRICE     APR     JULY     OCT     APR     JULY
140     23                
150     16     21     25     1     4
160     9     14     20     3     7
170     3     9     13     9     10
180     1     5     9         20
Note: Blank spaces denote option not offered or not traded.        

Janet Barnes joined the firm three months ago after spending one year in Dean Witter's training program in Cleveland. She received a broad training with emphasis in options and futures instruments. Myers though Barnes would be an important member of the firm in its dealings with clients interested in securities options.

The first task that Barnes faced was preparing an analysis of various strategies in the options of Bio-Genetics Corp., a company about which a young dentist in Berea had called. The dentist owned the stock and wanted to explore various strategies to either hedge or enhance his position.

Data provided in Exhibit 1 relate to key information on Bio-Genetics puts and calls. Bio-Genetics stock is currently at 162, pays no dividends, and has a beta of 1.3. The volatility of the stock is estimated at 30 percent. The rate on two-month Treasury bills is 6 percent.
Case Questions:
1.    Which options are in-the-money? Which are out-of-the-money?                  (5 Marks)
2.    Compute the margin requirement for a short position in the Apr/140 call option.   
    (5 Marks)
3.    Calculate the commission for the purchase three July/170 puts.                (10 Marks)
4.    Why are investors willing to pay1 for the Apr/1S0 call and also the Apr/150 put, which is closer to the current market price?                               (10 Marks)
5.    Assume the April options expire in one month. Are the Aprill160 calls fairly valued? Explain.                                               (10 Marks)
6.    Assume the client is holding 100 shares of Bio-Genetics common long at 162.    
Advise the client on the relative advantages and disadvantages of selling a call against this position using:
(a)    Apr/170 versus
(b)    July/150 calls                                              (10 Marks)

AIMA Assignments: Contact us for answers at assignmentssolution@gmail.com

DFM04
International Finance
Assignment – I
Assignment Code: 2015DFM04A1                   Last Date of Submission: 15th May 2015
                                    Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
    Section-A (50 marks)  
Q1.(a)    Explain how inflation & nationalism make it impossible for a single global currency to     exist.
(b)     Is devaluation good for exports & imports? Why is the impact of devaluation usually     not immediate?
Q2.(a)    Does a derivative market redistribute the risk between the market participants? In     this context discuss the important functions performed by the derivative markets.
(b)     “Options cannot be used for hedging purposes; they are only tools for speculation”.     Do you agree? Explain.
Section-B  (50 Marks)
(Case Study)
DC Corp is a US based software consulting firm, specialising in financial software for several Fortune 500 clients. It has offices in India, the UK, Europe & Australia. In 2012, DC required £ 100,000 in 180 days & had four options before it:
•    A forward hedge
•    A money market hedge
•    An option hedge
•    No hedge
Its analysts developed the following information which was used to assess the alternative solutions:
•    Current spot rate of pound = $ 1.50
•    180-day forward rate of pounds as of today = $ 1.48


Interest rates were as follows:
    UK    US
180-day deposit rate    4.5%    4.5%
180-day borrowing rate    5.1%    5.1%
The company also had the following information available to it:
A call option on Pound that expires in 180 days has an exercise price of $ 1.49 & a premium of $ 0.03
 A put option on Pound that expires in 180 days has an exercise price of $ 1.50 & a premium of $ 0.02
    The future spot rates in 180 days were forecasted as follows:
Possible Outcome    Probability
$ 1.44    20%
$ 1.46    60%
$ 1.53    20%

Ques1. Make an analysis for DC Corp. under all the four options i.e.
•    A forward hedge
•    A money market hedge
•    An option hedge
•    No hedge
Ques2. Assuming that the inflation rate in UK rises to 12% in a year and the corresponding inflation rate in US would be 7% then what would be the forward exchange rate in a year between French £- US $?

Ques3. Assuming that the interest rate in UK rises to 10% in a year and the corresponding interest rate in US would be 7% then what would be the forward exchange rate in a year between French £- US $?



DFM04
International Finance
Assignment – II
Assignment Code: 2015DFM04A2                   Last Date of Submission: 15th May 2015
                                    Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
    Section-A (50 marks)  
Q1.(a)    Discuss the key indicators that MNCs should assess in calculating the degree of     political risk they face in a country.
(b)     How can exposure to political risk be reduced by a MNC in the long-run? In this     context explain why political risk analysis is not always accurate.
Q2.(a)    What is netting & how can it improve a MNC’s performance?
(b)     What do you understand by the term,’ International Cash Management’? Elucidate     its objectives. How can a centralised cash management system be beneficial to a     MNC?
Section-B (50 Marks)
(Case Study)
Barret Corp. Presently has no existing business in France but is considering the establishment of a subsidiary there. The following information is given to assess this project:
•    The initial investment required is FF 60 million. The existing spot rate is $0.20, the initial investment in dollars is $ 12 million. In addition to the FF 60 million initial investments on plant & equipment, FF 10 million is needed for working capital & will be borrowed by the subsidiary from a French bank. The French subsidiary of Barret will pay interest only on the loan each year at an interest rate of 10%.
The loan principal is to be paid in 10 years.

•    The project will be terminated at the end of year 3, when the subsidiary will be sold.

•    The price, demand, & variable cost of the product in France are as follows:


Year    Price    Demand    Variable Cost
1    FF 600    40,000 units    FF 25
2    FF 650    50,000 units    FF 30
3    FF 700    60,000 units    FF 40

•    The fixed costs are estimated to be FF 5 million per year.

•    The exchange rate of the French franc is expected to be 0.22 at the end of year 1, $o.25 at the end of year 2, & $0.28 at the end of year 3.

•    The French govt will impose a withholding tax of 10% on earnings remitted by the subsidiary. The US govt will allow a tax credit on remitted earnings & will not impose any additional taxes.

•    All cash flows received by the subsidiary are to be sent to the parent at the end of each year. The subsidiary will use its working capital to support ongoing operations.

•    The plant & equipment are depreciated over 10 years, using straight line depreciation method. Since the plant & equipment are initially valued at FF 60 million, the annual depreciation expense is FF 6 million.

•    In three years the subsidiary is to be sold. Barret plans to let the acquiring firm assume the existing French loan. The working capital will not be liquidated, but will be used by the acquiring firm.

•    The required rate of return on this project is 15%.
Q1. Determine the net present value of this project. Should Barret accept this project?
Q2. Assume that Barret Co. provides the additional funds for working capital so that the loan from French govt is not necessary.
Q3. Would the NPV of this project from the parent’s perspective be more sensitive to exchange rate movements if the subsidiary used French financing to cover the working capital?
Q4. Assume Barret Co. uses the original proposed financing arrangement & that funds are blocked until the subsidiary is sold. The funds to be remitted are received at a rate of 8% (after taxes) until the end of year 3. How is the project’s NPV affected?
Q5. Assume that Barret Co. decided to implement the project, using the original proposed financing arrangement. Also assume that after one year, a French firm offers Barret Co. a price of $ 30 million after taxes for the subsidiary, & that Barret Co. original forecasts for Years 2 & 3 have not changed. Should Barret Co. divest the subsidiary? Explain.