Subject : HUMAN RESOURCE MANAGEMENT

6 Marks:

1. Importance and Objectives of Human Resource Management (HRM)

Importance:
HRM is crucial for aligning human capital with organizational goals. It ensures that the right
people are in the right roles, fostering a productive and harmonious work environment.
Effective HRM contributes to employee satisfaction, legal compliance, and organizational
success.

Objectives:

 Recruitment and Selection: Attracting and hiring qualified individuals.

 Training and Development: Enhancing employee skills and career growth.
 Performance Management: Evaluating and improving employee performance.
 Compensation and Benefits: Ensuring fair and motivating remuneration.
 Employee Relations: Maintaining positive relationships and resolving conflicts.

2. Evolution and Growth of HRM in India

Post-Independence Era (1947–1980): HRM focused on labour welfare, industrial relations,

and legal compliance. The approach was more administrative, with limited emphasis on
strategic management.

Liberalization Period (1980–1991): Economic reforms led to a shift towards productivity

and efficiency. HRM began adopting more modern practices, including performance
appraisals and employee motivation strategies.

Post-1991 (Globalization and Technological Advancement): Globalization introduced

international HRM practices. Technology facilitated HR functions, leading to more strategic
roles like talent management and organizational development.

3. Human Resource Policies and Their Types

Definition: HR policies are guidelines that direct the management of human resources within
an organization. They ensure consistency, fairness, and legal compliance.

Types:

 Recruitment Policy: Guidelines for hiring processes.

 Training and Development Policy: Framework for employee skill enhancement.
  Compensation Policy: Structures for salary and benefits.
 Promotion Policy: Criteria and processes for employee advancement.
 Leave Policy: Rules regarding employee leaves and absences.

4. Distinction between Job Description and Job Specification

Job Description: A detailed account of the duties, responsibilities, and expectations of a role.
It includes job title, reporting relationships, and key tasks.

Job Specification: Lists the qualifications, skills, experience, and attributes required to
perform the job effectively. It focuses on the candidate's profile rather than the job's duties.

5. Methods of Recruitment

1. Internal Recruitment: Filling vacancies with existing employees through promotions or

transfers. It boosts morale and reduces hiring costs.

2. External Recruitment: Sourcing candidates from outside the organization via job portals,
recruitment agencies, or campus placements. It brings in fresh perspectives.

3. Employee Referrals: Current employees recommend potential candidates. This method

often yields high-quality hires due to the referrer's understanding of organizational culture.

6. Importance of Social Media in Recruitment

Social media platforms like LinkedIn, Facebook, and Twitter have become vital tools for
recruitment. They allow organizations to reach a broader audience, engage with passive
candidates, and showcase their employer brand. Social media also facilitates networking and
direct communication with potential hires.

7. Methods of Training

1. On-the-Job Training: Employees learn by performing tasks under supervision. It's cost-
effective and context-specific.

2. Off-the-Job Training: Conducted away from the workplace, such as workshops or

seminars. It provides theoretical knowledge and new perspectives.

3. E-Learning: Online courses and modules that offer flexibility and accessibility. It's
suitable for remote teams and continuous learning.
8. Executive Development Programs

These programs are designed to enhance the skills and competencies of senior management.
They focus on leadership, strategic thinking, and decision-making. Methods include
coaching, mentoring, and specialized workshops. The goal is to prepare executives for higher
responsibilities and organizational challenges.

9. Benefits of Employee Training and Development

 Increased Productivity: Employees become more efficient and effective in their

roles.
 Enhanced Job Satisfaction: Continuous learning opportunities lead to higher
employee morale.
 Reduced Turnover: Investment in development fosters loyalty and retention.
 Adaptability: Employees are better equipped to handle industry changes and
technological advancements.
 Improved Organizational Performance: A skilled workforce contributes to the
overall success of the organization.

10. Steps in the Performance Management Process

1. Planning: Setting clear, measurable goals aligned with organizational objectives.

2. Monitoring: Regularly tracking progress and providing feedback.

3. Reviewing: Conducting performance appraisals to assess achievements and areas for

improvement.

4. Rewarding: Recognizing and rewarding high performance through promotions, bonuses,

or other incentives.

11. Critical Incident Method

This performance appraisal technique involves identifying and documenting specific

instances of particularly effective or ineffective behaviour. These incidents are then analysed
to assess performance and provide feedback. It's valuable for providing concrete examples
during evaluations.

12. Removing Subjectivity in Performance Evaluation

To minimize bias in performance appraisals:

 Use Objective Criteria: Define clear, measurable performance standards.

 Implement 360-Degree Feedback: Gather input from peers, subordinates, and
supervisors.
 Regular Monitoring: Continuously assess performance rather than relying solely on
annual reviews.
 Training Evaluators: Educate managers on recognizing and avoiding biases.

13. Components of a Compensation Package

A comprehensive compensation package includes:

 Base Salary: Fixed regular payment.

 Bonuses and Incentives: Performance-based rewards.
 Benefits: Health insurance, retirement plans, etc.
 Perquisites: Non-monetary benefits like company cars or housing.
 Stock Options: Equity-based compensation for long-term incentives.

14. Wage and Salary Administration

This refers to the systematic approach to managing employee compensation. It involves:

 Job Evaluation: Assessing the value of jobs to determine appropriate pay.

 Salary Surveys: Comparing compensation with industry standards.
 Pay Structures: Developing pay scales and ranges.
 Compliance: Ensuring adherence to labour laws and regulations.

15. Productivity-Linked Bonus (PLB)

PLB is a performance-based incentive system where employees receive bonuses linked to the
organization's productivity levels. It's commonly used in public sector enterprises in India.
The bonus amount is typically calculated based on the percentage of wages and the
organization's performance during a fiscal year.
 Subject Topic : FINANCIAL MANAGEMENT

6 Marks :

1. Profit Maximization vs. Wealth Maximization

Profit Maximization focuses on increasing a company's short-term earnings without

considering the timing or risk of returns. While it emphasizes immediate profitability, it may
overlook long-term sustainability and shareholder value.

Wealth Maximization, on the other hand, aims to increase the long-term value of the
company, considering the timing and risk of returns. It focuses on maximizing shareholder
wealth, aligning with the goal of increasing the company's stock price and overall value.

2. Role of a Finance Manager

A Finance Manager is responsible for managing the financial health of an organization. Key
duties include:

 Financial Planning and Analysis: Preparing budgets, forecasts, and financial reports
to guide decision-making.
 Investment Decisions: Evaluating investment opportunities and managing capital
expenditures.
 Risk Management: Identifying financial risks and implementing strategies to
mitigate them.
 Funding Decisions: Determining the optimal capital structure and sourcing funds at
favorable terms.
 Cash Flow Management: Ensuring sufficient liquidity for day-to-day operations and
strategic initiatives.

3. Features of Preferred Stock and Debentures

Preferred Stock:

 Dividend Priority: Shareholders receive dividends before common stockholders.

 Fixed Dividends: Typically offer a fixed dividend rate.
 Limited Voting Rights: Often have limited or no voting rights in company decisions.
 Liquidation Preference: In case of liquidation, preferred shareholders are paid
before common shareholders.

Debentures:
  Debt Instrument: Represent loans taken by the company, not ownership.
 Fixed Interest: Pay a fixed interest rate over a specified period.
 Maturity Date: Have a set maturity date when the principal is repaid.
 Secured or Unsecured: Can be secured against assets or unsecured based on the
issuing company's creditworthiness.

4. Time Value of Money (TVM)

The Time Value of Money (TVM) is a fundamental financial concept stating that a sum of
money has greater value now than the same sum in the future due to its potential earning
capacity. This principle arises from the opportunity to earn interest or returns on investments
over time. TVM is crucial for making informed financial decisions, such as evaluating
investment opportunities and comparing financing options.

5. Risk Analysis in Capital Budgeting

Risk analysis in capital budgeting involves assessing the uncertainty and potential variability
in the expected returns of investment projects. Techniques include:

 Sensitivity Analysis: Examining how changes in key assumptions (like sales volume
or cost) affect project outcomes.
 Scenario Analysis: Evaluating different possible future scenarios (best case, worst
case, and most likely case).
 Monte Carlo Simulation: Using computer models to simulate a range of possible
outcomes based on random variables.

These methods help in understanding the potential risks and returns, aiding in more informed
decision-making.

6. Payback Period vs. Accounting Rate of Return (ARR)

Payback Period:

 Definition: The time it takes for an investment to recover its initial cost.
 Strengths: Simple to calculate and understand; useful for assessing liquidity.
 Limitations: Ignores the time value of money; does not consider cash flows beyond
the payback period.

Accounting Rate of Return (ARR):

 Definition: The average annual accounting profit divided by the initial investment
cost.
 Strengths: Easy to compute using accounting data; considers profitability.
  Limitations: Ignores the time value of money; based on accounting profits rather than
cash flows.

7. Weighted Average Cost of Capital (WACC)

The Weighted Average Cost of Capital (WACC) represents a company's average cost of
capital from all sources, weighted by their respective proportions in the capital structure. It is
calculated as:

WACC=(EV×Re)+(DV×Rd×(1−Tc))WACC = \left( \frac{E}{V} \times Re \right) + \left( \

frac{D}{V} \times Rd \times (1 - Tc) \right)

Where:

 EE = Market value of equity

 DD = Market value of debt
 VV = Total market value of the company's financing (equity + debt)
 ReRe = Cost of equity
 RdRd = Cost of debt
 TcTc = Corporate tax rate

WACC is used as a discount rate in capital budgeting to evaluate investment projects.

8. Operating vs. Financial Leverage

Operating Leverage:

 Definition: The degree to which a firm can increase operating income by increasing
revenue.
 Characteristics: High fixed costs lead to high operating leverage; amplifies the effect
of sales changes on profit.

Financial Leverage:

 Definition: The use of debt to acquire additional assets.

 Characteristics: Increases potential return on equity; also increases risk due to fixed
interest obligations.

9. Cost of Retained Earnings

The cost of retained earnings is the return required by equity investors for reinvesting
earnings back into the company rather than paying them out as dividends. It is often
estimated using the Capital Asset Pricing Model (CAPM):
Re=Rf+β(Rm−Rf)Re = Rf + \beta (Rm - Rf)

Where:

 ReRe = Cost of equity

 RfRf = Risk-free rate
 β\beta = Beta coefficient (measure of stock volatility)
 RmRm = Expected market return

This cost reflects the opportunity cost of reinvesting earnings.

10. Net Income vs. Net Operating Income Approaches

Net Income Approach:

 Assumption: Capital structure affects the overall cost of capital and, consequently,
the value of the firm.
 Implication: A change in the debt-equity ratio alters the firm's value.

Net Operating Income Approach:

 Assumption: Capital structure does not affect the overall cost of capital or the firm's
value.
 Implication: The firm's value is determined by its operating income, not by its
financing mix.

11. Factors Influencing Capital Structure

Key factors influencing a company's capital structure include:

 Business Risk: Higher business risk may lead to lower debt levels.
 Tax Considerations: Interest on debt is tax-deductible, making debt financing
attractive.
 Financial Flexibility: Maintaining the ability to raise capital in the future.
 Control Considerations: Debt financing may dilute ownership control.
 Market Conditions: Prevailing interest rates and investor sentiment.

12. Stable vs. Fluctuating Dividend Policy

Stable Dividend Policy:

 Characteristics: Regular and predictable dividend payments.

 Advantages: Provides income stability to shareholders; signals financial health.
 Disadvantages: May limit funds available for reinvestment.
Fluctuating Dividend Policy:

 Characteristics: Dividend payments vary based on earnings.

 Advantages: Aligns dividends with company performance; retains more earnings for
growth.
 Disadvantages: Income instability for shareholders; may signal financial uncertainty.

Certainly! Here are detailed 5-mark explanations for the topics you've requested:

13. Importance of Receivables Management

Receivables management is crucial for maintaining a company's liquidity and financial

health. Effective management ensures timely collection of outstanding invoices, reducing the
risk of bad debts and improving cash flow. By implementing credit policies, monitoring
aging reports, and following up on overdue accounts, businesses can minimize financial risks
and operational disruptions. Additionally, efficient receivables management enhances
relationships with customers by establishing clear payment terms and expectations.

14. Techniques of Inventory Management

Effective inventory management is vital for balancing supply and demand, minimizing costs,
and ensuring smooth operations. Key techniques include:

 ABC Analysis: Classifies inventory into three categories—A (high value), B

(moderate value), and C (low value)—to prioritize management efforts based on item
importance.
 Economic Order Quantity (EOQ): Determines the optimal order quantity that
minimizes total inventory costs, considering factors like demand rate, ordering cost,
and holding cost.
 Just-In-Time (JIT): Reduces inventory levels by ordering goods only when needed
for production, minimizing storage costs but requiring reliable suppliers and precise
demand forecasting.
 Demand Forecasting: Utilizes historical data and market analysis to predict future
product demand, aiding in inventory planning and reducing the risk of stockouts or
overstocking.
 Safety Stock: Maintains a buffer inventory to protect against uncertainties in supply
and demand, ensuring continuous production and sales even during unexpected
disruptions.

15. Working Capital Policies

Working capital policies guide a company's approach to managing short-term assets and
liabilities, ensuring sufficient liquidity for day-to-day operations. Common policies include:

 Aggressive Policy: Involves minimizing investment in current assets, such as

reducing inventory and receivables, to maximize returns. While this approach can
enhance profitability, it increases the risk of liquidity issues.
 Conservative Policy: Entails maintaining higher levels of current assets to safeguard
against uncertainties, leading to lower risk but potentially reduced returns.
 Matching Policy: Aligns the maturity of assets and liabilities, financing short-term
assets with short-term liabilities and long-term assets with long-term debt, balancing
risk and return.

Each policy reflects a company's risk tolerance and financial strategy, influencing its
operational efficiency and profitability.

Subject Topic: INNOVATION AND

ENTREPRENEURSHIP

6 mark :

1. Characteristics of Successful Entrepreneurs

Successful entrepreneurs often exhibit a combination of personal traits and skills that enable
them to navigate challenges and drive business growth. Key characteristics include:

 Resilience: The ability to recover from setbacks and persist in the face of adversity.
 Adaptability: Flexibility to adjust strategies in response to changing market
conditions.
 Risk-taking: Willingness to take calculated risks to achieve business objectives.
 Vision: A clear sense of direction and long-term goals for the business.
 Leadership: The capacity to inspire and manage teams effectively.

These traits collectively contribute to an entrepreneur's ability to innovate, lead, and sustain a
successful business venture.
2. Entrepreneur vs. Intrapreneur

While both entrepreneurs and intrapreneurs drive innovation, their roles differ significantly:

 Entrepreneur:
o Operates independently, often starting and managing their own business.
o Bears the financial risks associated with the venture.
o Has full control over business decisions and strategies.
 Intrapreneur:
o Works within an existing organization, driving innovation from within.
o Utilizes the company's resources and infrastructure.
o Focuses on developing new products, services, or processes to benefit the
organization.

Both roles require creativity and initiative, but intrapreneurs benefit from the support and
stability of an established company.

3. Entrepreneurial Growth in Different Communities in India

Entrepreneurship in India varies across communities, influenced by cultural, social, and

economic factors:

 Urban Communities: Cities like Bengaluru, Mumbai, and Delhi have thriving start-
up ecosystems, supported by infrastructure, access to capital, and a skilled workforce.
 Rural Communities: Initiatives like the Start-up India scheme aim to promote
entrepreneurship in rural areas by providing training, financial support, and market
access.
 Community-Specific Initiatives: Programs targeting specific communities, such as
Scheduled Castes and Scheduled Tribes, offer tailored support to overcome historical
disadvantages and encourage inclusive entrepreneurship.

These efforts contribute to a more diverse and inclusive entrepreneurial landscape in India.

4. Technological Innovation Process

The process of technological innovation involves several stages:

1. Idea Generation: Brainstorming and conceptualizing new technologies or

improvements to existing ones.
2. Feasibility Analysis: Assessing the technical, financial, and market viability of the
idea.
3. Development: Designing, prototyping, and testing the technology.
4. Implementation: Integrating the technology into production or service processes.
 5. Commercialization: Bringing the technology to market and scaling its adoption.

This structured approach helps organizations manage the complexities of innovation and
bring new technologies to fruition.

5. Types of Innovation in Business

Innovation in business can take various forms:

 Product Innovation: Developing new or improved products to meet customer needs.

 Process Innovation: Enhancing production or delivery methods to increase
efficiency.
 Business Model Innovation: Changing the way a company creates, delivers, and
captures value.
 Organizational Innovation: Implementing new organizational structures or practices
to improve performance.

Each type of innovation plays a crucial role in maintaining competitiveness and driving
growth.

6. Innovation in Indian Firms

Indian firms are increasingly embracing innovation to stay competitive:

 Technology Adoption: Companies are integrating advanced technologies like AI,

IoT, and block chain to enhance operations and customer experiences.
 Start-up Ecosystem: The rise of start-ups in sectors such as fin-tech, ed-tech, and
health-tech is fostering a culture of innovation.
 Government Initiatives: Programs like Atal Innovation Mission and Start-up India
provide support and resources to encourage innovation across industries.

These efforts are transforming Indian businesses and positioning them for global
competitiveness.

7. Generating New Ideas for Products and Services

Generating innovative ideas involves:

 Market Research: Understanding customer needs, preferences, and pain points.

 Brainstorming Sessions: Collaborating with diverse teams to generate a wide range
of ideas.
 Trend Analysis: Monitoring industry trends and technological advancements for
inspiration.
 Customer Feedback: Engaging with customers to gather insights and validate ideas.
By combining these approaches, businesses can develop products and services that resonate
with their target audience.

8. Technical Feasibility in Product/Service Development

Assessing technical feasibility ensures that a product or service can be developed within the
constraints of technology and resources:

 Technology Assessment: Evaluating existing technologies to determine their

suitability for the project.
 Resource Availability: Ensuring the necessary materials, skills, and infrastructure are
accessible.
 Prototype Testing: Developing prototypes to test and refine the concept.
 Risk Analysis: Identifying potential technical challenges and developing mitigation
strategies.

This process helps in making informed decisions and reducing the likelihood of project
failure.

9. Pricing Policies and Distribution Channels

Effective pricing and distribution strategies are vital for business success:

 Pricing Policies:
o Cost-Based Pricing: Setting prices based on production costs plus a markup.
o Value-Based Pricing: Pricing products based on the perceived value to
customers.
o Penetration Pricing: Initially setting low prices to attract customers and gain
market share.
 Distribution Channels:
o Direct Sales: Selling products directly to consumers through company-owned
stores or websites.
o Retailers: Partnering with retail outlets to reach a broader audience.
o Wholesalers: Distributing products in bulk to retailers or other intermediaries.

Choosing the right combination of pricing and distribution strategies can enhance market
reach and profitability.

10. Benefits of a Business Plan

A well-crafted business plan offers several advantages:

 Clarity: Provides a clear roadmap for business objectives and strategies.

  Funding: Serves as a tool to attract investors or secure loans.
 Management: Assists in managing operations and tracking progress.
 Risk Management: Identifies potential challenges and outlines mitigation strategies.

Overall, a business plan is essential for guiding a business toward success.

11. Key Elements of a Good Business Plan

A comprehensive business plan typically includes:

 Executive Summary: An overview of the business and its goals.

 Business Description: Details about the company, its products or services, and
market positioning.
 Market Analysis: Insights into the target market, competition, and industry trends.
 Organization and Management: Information about the business structure and
leadership team.
 Sales Strategies: Plans for marketing, sales, and customer acquisition.
 Financial Projections: Forecasts of income, expenses, and profitability.

These elements provide a holistic view of the business and its potential for success.

12. Format and Guidelines for Preparing a Business Plan

A well-structured business plan serves as a roadmap for a new venture, outlining its
objectives, strategies, and financial projections. Here's a recommended format:

1. Executive Summary: A concise overview of the business, including its mission,

vision, and the problem it aims to solve.
2. Company Description: Details about the business, its legal structure, ownership, and
the nature of the products or services offered.
3. Market Analysis: An examination of the industry, market trends, target audience, and
competitive landscape.
4. Organization and Management: Information about the business's organizational
structure, ownership, and the management team.
5. Products or Services: A description of the products or services offered, including
their lifecycle and benefits to customers.
6. Marketing and Sales Strategy: Plans for promoting and selling the products or
services, including pricing, advertising, and sales tactics.
7. Funding Request: If seeking funding, details about the amount needed, potential
future funding requirements, and how the funds will be used.
8. Financial Projections: Financial statements, including income statements, cash flow
statements, and balance sheets for the next three to five years.
9. Appendix: Any additional information, such as resumes, permits, lease agreements,
or legal documents.

Guidelines:
  Be clear and concise; avoid jargon.
 Use data and research to support claims.
 Tailor the plan to the audience, whether investors, lenders, or partners.
 Regularly update the plan to reflect changes in the business environment.

13. Financial Appraisal of a New Project

Financial appraisal assesses the viability and profitability of a new project. Key methods
include:

1. Payback Period: Calculates the time required to recover the initial investment.
Shorter payback periods are preferred as they indicate quicker returns.
2. Net Present Value (NPV): Discounts future cash flows to present value terms,
subtracting the initial investment. A positive NPV indicates a profitable project.
3. Internal Rate of Return (IRR): The discount rate that makes the NPV of all cash
flows equal to zero. A project is considered acceptable if its IRR exceeds the required
rate of return.
4. Benefit-Cost Ratio (BCR): Compares the benefits of a project to its costs. A BCR
greater than 1 indicates that benefits outweigh costs.
5. Sensitivity Analysis: Assesses how changes in key assumptions (like sales volume or
costs) affect the project's outcomes, helping to identify potential risks.

These methods provide a comprehensive view of a project's financial feasibility and assist in
decision-making.

14. Institutional Supports Provided to Small Industries

Small industries in India receive various forms of institutional support to foster growth and
sustainability:

1. Micro Units Development and Refinance Agency (MUDRA): Offers collateral-free

loans under the Pradhan Mantri Mudra Yojana, categorized as Shishu, Kishore, and
Tarun, catering to different stages of business development.
2. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE):
Provides credit guarantees to financial institutions, enabling them to extend collateral-
free loans to micro and small enterprises.
3. Khadi and Village Industries Commission (KVIC): Promotes and develops khadi
and village industries by providing financial assistance, training, and marketing
support.
4. National Small Industries Corporation (NSIC): Assists small industries by
providing raw materials, marketing support, and credit facilitation.
5. National Skill Development Corporation (NSDC): Facilitates skill development
programs to enhance the employability of the workforce in small industries.

These institutions play a pivotal role in addressing the challenges faced by small industries
and promoting their growth.
15. Incentives Available for Entrepreneurs

The Indian government offers various incentives to encourage entrepreneurship:

1. Subsidies: Financial assistance ranging from 15% to 35% of the project cost,
depending on location and category, to support new business ventures.
2. MUDRA Loan Scheme: Provides collateral-free loans to small businesses and start-
ups under three categories: Shishu (up to ₹50,000), Kishore (₹50,000 to ₹5 lakh), and
Tarun (₹5 lakh to ₹10 lakh).
3. Market Development Assistance (MDA) Scheme: Offers support for MSMEs to
participate in trade fairs, exhibitions, and export promotion programs, aiding in
market expansion.
4. Technology and Quality Upgradation Support Scheme: Encourages MSMEs to
adopt energy-efficient and environment-friendly technologies, improving
competitiveness.
5. Start-up India Scheme: Offers benefits like tax exemptions, funding support through
the Fund of Funds for Start-ups (FFS), and a Credit Guarantee Scheme for start-ups.
These incentives aim to reduce barriers to entry, promote innovation, and support the
growth of entrepreneurial ventures across the country.

Subject Topic : MARKETING MANAGEMENT

6 Mark :

1. E-Marketing and Its Significance

E-Marketing refers to the use of digital platforms and technologies to promote and sell
products or services. It encompasses various online marketing activities, including email
marketing, social media campaigns, search engine optimization (SEO), and content
marketing.

Significance:

 Wider Reach: E-marketing allows businesses to reach a global audience, breaking

geographical barriers.
  Cost-Effective: Compared to traditional marketing, digital marketing often requires a
lower investment.
 Measurable Results: Tools like Google Analytics enable businesses to track the
effectiveness of their campaigns in real-time.
 Personalization: Data analytics help tailor marketing messages to individual
customer preferences, enhancing engagement.
 24/7 Availability: Online platforms operate round the clock, providing continuous
customer interaction opportunities.

2. Social Media Marketing and Platforms

Social Media Marketing involves using platforms like Facebook, Instagram, Twitter, and
LinkedIn to promote products, engage with customers, and build brand awareness.

Three Platforms:

1. Facebook: Offers targeted advertising and community-building tools.

2. Instagram: Visual-centric platform ideal for lifestyle and fashion brands.
3. LinkedIn: Professional network suitable for B2B marketing and thought leadership.

These platforms enable businesses to connect with their audience, share content, and drive
traffic to their websites.

3. Marketing Concepts with Examples

1. Product Concept: Focuses on creating high-quality products. Example: Apple

emphasizes innovation in its product designs.
2. Selling Concept: Prioritizes aggressive sales techniques. Example: Car dealerships
often use promotions to boost sales.
3. Marketing Concept: Centre’s on meeting customer needs. Example: Amazon's
customer-centric approach drives its product offerings.

These concepts guide businesses in shaping their marketing strategies to align with market
demands.

4. Steps in the Marketing Research Process

1. Problem Definition: Identify the issue or opportunity to be addressed.

2. Research Design: Determine the methodology and data collection techniques.
3. Data Collection: Gather information through surveys, interviews, or observations.
4. Data Analysis: Interpret the collected data to extract meaningful insights.
5. Report Presentation: Compile findings and recommendations for decision-makers.
This structured approach ensures that marketing decisions are based on accurate and relevant
information.

5. Service Marketing and Retail Marketing

Service Marketing:

 Intangibility: Services cannot be touched or owned.

 Inseparability: Production and consumption occur simultaneously.
 Perishability: Services cannot be stored.
 Variability: Quality can vary based on who provides it.

Retail Marketing:

 Product Assortment: Offering a variety of products to meet customer needs.

 Location: Strategic placement of stores to attract foot traffic.
 Customer Service: Providing assistance to enhance shopping experience.

Both fields require tailored strategies to address their unique challenges and customer
expectations.

6. Macro vs. Micro Environmental Factors

 Macro Environment: Includes external factors like economic conditions, political

stability, and technological advancements that affect all businesses.
 Micro Environment: Pertains to factors within the company's immediate
environment, such as suppliers, competitors, and customers.

Understanding both environments helps businesses anticipate changes and adapt their
strategies accordingly.

7. Factors Influencing Consumer Behaviour

 Cultural: Beliefs and values shaped by society.

 Social: Influence of family, friends, and social groups.
 Personal: Individual preferences, lifestyle, and economic status.
 Psychological: Motivation, perception, and learning.

Marketers analyse these factors to predict purchasing decisions and tailor their offerings.
8. Buying Decision Process

1. Need Recognition: Realizing a requirement or problem.

2. Information Search: Seeking information about possible solutions.
3. Evaluation of Alternatives: Comparing different products or services.
4. Purchase Decision: Choosing a product and making the purchase.
5. Post-Purchase Behaviour: Assessing satisfaction and potential for repeat purchase.

Understanding this process helps businesses influence consumer decisions at each stage.

9. Customer Life Cycle

The customer life cycle represents the stages a customer goes through when interacting with a
company:

1. Awareness: Becoming aware of the brand or product.

2. Consideration: Evaluating the product's benefits.
3. Purchase: Making the buying decision.
4. Retention: Post-purchase engagement to encourage repeat business.
5. Advocacy: Satisfied customers recommending the product to others.

Managing this cycle effectively can lead to long-term customer loyalty.

10. Stages of New Product Development

The New Product Development (NPD) process involves several stages to bring a new product
from concept to market:

1. Idea Generation: Brainstorming new product ideas from various sources like
customers, competitors, and internal teams.
2. Idea Screening: Evaluating ideas to eliminate those that are not feasible or aligned
with business objectives.
3. Concept Development and Testing: Developing product concepts and testing them
with target audiences to gather feedback.
4. Business Analysis: Assessing the market potential, costs, and profitability of the
product.
5. Product Development: Designing and developing the product prototype.
6. Market Testing: Introducing the product to a limited market to gauge consumer
response.
7. Commercialization: Launching the product in the market with full-scale production
and marketing.

These stages ensure that the product meets market needs and is financially viable.
11. Role of Packaging and Labelling in Marketing

Packaging and Labelling play crucial roles in marketing:

 Packaging:
o Protection: Safeguards the product during transportation and storage.
o Convenience: Facilitates easy handling and use.
o Branding: Reflects the brand's identity and attracts consumers.
 Labelling:
o Information: Provides essential details like ingredients, usage instructions,
and expiry dates.
o Compliance: Ensures adherence to legal and regulatory requirements.
o Persuasion: Influences consumer decisions through persuasive messaging.

Effective packaging and labelling enhance product appeal and consumer trust.

12. Pricing Approaches

Pricing strategies determine how a product is priced in the market:

1. Cost-Plus Pricing: Setting the price by adding a fixed mark-up to the cost of
production.
2. Penetration Pricing: Introducing a product at a low price to gain market share
quickly.
3. Price Skimming: Setting a high price initially and gradually lowering it to attract
different customer segments.
4. Dynamic Pricing: Adjusting prices based on real-time demand and supply
conditions.
5. Psychological Pricing: Setting prices that have a psychological impact, like ₹99.99
instead of ₹100.

Choosing the right pricing approach aligns the product's value with consumer expectations
and market conditions.

13. Advertising and Sales Promotion

Advertising and Sales Promotion are key components of the promotional mix:

 Advertising:
o Definition: Paid, non-personal communication through various media to
inform or persuade.
o Purpose: Builds brand awareness and communicates product benefits.
o Examples: TV commercials, online ads, print media.
 Sales Promotion:
o Definition: Short-term incentives to encourage immediate purchase.
 o Purpose: Stimulates quick sales and attracts new customers.
o Examples: Discounts, coupons, contests, free samples.

Together, they enhance product visibility and drive consumer action.

14. Methods of Selection and Training of Sales Force

Selecting and training an effective sales force involves:

 Selection:
o Recruitment: Attracting candidates with the right skills and experience.
o Interviews and Assessments: Evaluating candidates through structured
interviews and tests.
o Reference Checks: Verifying past performance and reliability.
 Training:
o Product Knowledge: Educating about product features and benefits.
o Sales Techniques: Teaching effective selling strategies and communication
skills.
o Company Policies: Familiarizing with organizational goals and ethical
standards.

A well-selected and trained sales force can significantly boost sales performance.

15. Horizontal and Vertical Marketing Systems

Marketing Systems define the structure and coordination of distribution channels:

 Vertical Marketing System (VMS):

o Structure: Integration of different levels of the distribution channel
(manufacturer, wholesaler, and retailer).
o Types:
 Corporate VMS: Ownership of multiple levels by a single entity.
 Contractual VMS: Agreements between independent firms at
different levels.
 Administered VMS: Coordination through the influence of a
dominant member.
 Horizontal Marketing System (HMS):
o Structure: Collaboration between firms at the same level of the distribution
channel.
o Purpose: Combining resources to achieve common goals.
o Example: Two retailers partnering to offer a combined product range.

Both systems aim to enhance efficiency and market reach.

 Subject Topic : OPERATIONS MANAGEMENT

6 Mark :

1. Long-Term vs. Short-Term Issues in Operations Management

Long-Term Issues:

 Strategic Planning: Involves decisions related to capacity planning, facility location,

and technology investments that affect the company's direction over several years.
 Product Design and Development: Focuses on creating new products or improving
existing ones to meet future market demands.
 Supply Chain Management: Establishing relationships with suppliers and partners
to ensure a reliable flow of materials and information.

Short-Term Issues:

 Inventory Management: Managing stock levels to meet immediate production needs

without overstocking.
 Scheduling: Allocating resources and planning production runs to meet current
demand.
 Quality Control: Ensuring products meet quality standards in the short run to
maintain customer satisfaction.

Both sets of issues are interrelated; short-term decisions should align with long-term
strategies to ensure overall operational efficiency.

2. Scope and Functions of Operations Management

Scope:

 Production Planning: Determining what to produce, how much to produce, and

when to produce.
 Inventory Control: Managing raw materials, work-in-progress, and finished goods to
optimize costs and meet demand.
 Quality Management: Ensuring products meet specified standards and customer
expectations.
 Supply Chain Management: Coordinating the flow of materials and information
from suppliers to customers.

Functions:
  Product Design and Development: Creating products that meet customer needs and
can be produced efficiently.
 Process Design: Developing efficient processes for production and delivery.
 Capacity Planning: Determining the production capacity needed to meet changing
demands.
 Scheduling: Allocating resources and planning production runs to meet demand.

Operations management integrates these functions to produce goods and services efficiently
and effectively.

3. Types of Charts Used in Operations Management

 Gantt chart: A bar chart that represents a project schedule over time, showing the
start and finish dates of elements.
 Flowchart: A diagram that represents a process, showing the steps in sequence and
decision points.
 Pareto Chart: A bar graph that represents the frequency or impact of problems in
descending order, helping to identify the most significant issues.
 Control Chart: A graphical representation of process data over time, used to monitor
the consistency of processes.

These charts are tools for planning, monitoring, and improving operations.

4. Basic Types of Layouts in Manufacturing Facilities

 Process Layout: Organizes resources by function, suitable for low-volume, high-

variety production.
 Product Layout: Arranges resources sequentially according to the steps in the
production process, ideal for high-volume, standardized products.
 Cellular Layout: Groups different machines into cells, each responsible for
producing a set of similar products.
 Fixed-Position Layout: The product remains stationary, and workers and equipment
are brought to the product, used for large, complex products like ships or airplanes.

Choosing the appropriate layout depends on the type of product, production volume, and
flexibility required.

5. Principles of a Good Plant Layout

 Minimize Material Handling: Arrange equipment and workstations to reduce

movement and transportation of materials.
 Utilize Space Efficiently: Optimize the use of available space, both horizontally and
vertically.
 Ensure Safety: Design layouts that minimize hazards and ensure worker safety.
  Provide Flexibility: Allow for easy modifications to accommodate changes in
product design or production processes.
 Facilitate Supervision: Design layouts that allow for effective monitoring and
supervision of operations.

A well-designed layout enhances productivity, reduces costs, and improves worker

satisfaction.

6. Materials Handling Principles

 Planning Principle: Study all available system relationships before moving towards
preliminary planning.
 Standardization Principle: Encourage standardization of handling methods and
equipment.
 Ergonomic Principle: Recognize human capabilities and limitations by designing
effective handling equipment.
 Space Utilization Principle: Encourage effective utilization of all available space.
 Energy Principle: Consider energy consumption during material handling.

Applying these principles ensures efficient and safe movement of materials within a facility.

7. Preventive vs. Breakdown Maintenance

 Preventive Maintenance: Scheduled maintenance activities aimed at preventing

equipment failures before they occur.
o Advantages: Reduces downtime, extends equipment life, and improves safety.
o Disadvantages: Requires time and resources for regular inspections and
servicing.
 Breakdown Maintenance: Repairing equipment after it has failed.
o Advantages: No need for scheduled maintenance; repairs are made as needed.
o Disadvantages: Unplanned downtime, higher repair costs, and potential safety
hazards.

Preventive maintenance is generally preferred for critical equipment to ensure continuous

operations.

Certainly! Here are detailed 5-mark explanations for the topics you've requested:

8. Economic Batch Quantity (EBQ)

Economic Batch Quantity (EBQ) is a refinement of the Economic Order Quantity (EOQ)
model, specifically designed for manufacturing environments where items are produced in
batches rather than ordered from suppliers. It determines the optimal batch size that
minimizes the total cost of production, including setup and holding costs.

Formula:

Where:

 SS = Setup cost per batch

 DD = Annual demand (units)
 HH = Holding cost per unit per year
 dd = Daily demand rate
 pp = Daily production rate

Example:
Consider a company with the following parameters:

 Annual demand (DD) = 12,000 units

 Setup cost per batch (SS) = ₹15,000
 Holding cost per unit per year (HH) = ₹100
 Daily demand rate (dd) = 40 units
 Daily production rate (pp) = 100 units.

Substituting these values into the EBQ formula:

Therefore, the optimal batch size is approximately 2,449 units.

9. Reorder Point and Safety Stock

Reorder Point (ROP) is the inventory level at which a new order should be placed to
replenish stock before it runs out. It ensures that stock is available to meet demand during the
lead time.

Formula:

Where:

 dd = Average daily demand

 LL = Lead time in days

Safety Stock is the additional inventory kept to mitigate the risk of stock outs caused by
uncertainties in demand or lead time.

Formula:

Where:
  ZZ = Z-score corresponding to the desired service level
 σd\sigma_d = Standard deviation of daily demand
 LL = Lead time in days

Total Reorder Point:

Example:
If a company has:

 Average daily demand (dd) = 50 units

 Lead time (LL) = 10 days
 Standard deviation of daily demand (σd\sigma_d) = 5 units
 Desired service level = 95% (Z ≈ 1.65)

Then:

 ROP = 50 × 10 = 500 units

 Safety Stock = 1.65 × 5 × √10 ≈ 26 units
 Total ROP = 500 + 26 = 526 units

Therefore, the reorder point is 526 units.

10. Method Study vs. Motion Study

Method Study involves analysing and improving the way tasks are performed to increase
efficiency and reduce unnecessary operations. It focuses on determining the best method to
perform a task.

Motion Study is a subset of method study that examines the movements of workers to
eliminate unnecessary motions, thereby improving efficiency and reducing fatigue.

Key Differences:

 Focus: Method study focuses on the overall process, while motion study focuses on
individual movements within the process.
 Objective: Method study aims to find the best way to perform a task; motion study
aims to reduce unnecessary movements.
 Tools Used: Method study uses tools like flow charts and process charts; motion
study uses tools like Therbligs and motion picture analysis.

Example:
In a manufacturing setting, method study might involve redesigning a process to eliminate
redundant steps, while motion study might involve analysing a worker's hand movements to
minimize unnecessary motions.

11. Performance Rating in Work Measurement

Performance Rating is the process of assessing a worker's performance relative to a
standard or established benchmark. It is used in work measurement to adjust observed times
to account for differences in worker performance.

Key Points:

 Standard Performance: Typically set at a rating of 100, representing the expected

performance level.
 Adjustment Factor: If a worker performs faster than standard, the rating is above
100; if slower, below 100.
 Purpose: To determine the time required for a task under standard conditions.

Example:
If an observed time for a task is 10 minutes and the worker's performance rating is 120, the
standard time would be:

Therefore, the standard time for the task is 8.33 minutes.

12.Describe the types of inspections in quality control.

1. Incoming Quality Control (IQC):

This inspection occurs when raw materials or components arrive at the manufacturing
facility. It ensures that all incoming goods meet specified quality standards before production
begins. Early detection of defects at this stage prevents quality issues in the final product.

2. In-Process Quality Control (IPQC):

Conducted during the manufacturing process, IPQC monitors the production at various
stages. It helps identify defects as soon as they occur, minimizing the impact on downstream
operations. This proactive approach ensures that the production process remains within
quality standards.

3. Final Quality Control (FQC):

Performed at the end of the production process, FQC involves thoroughly inspecting finished
products to ensure they meet all quality standards and specifications before they are shipped
to customers. It helps identify any defects or inconsistencies, ensuring that only high-quality
products reach the market.

4. Outgoing Quality Control (OQC):

This final inspection before shipment ensures that finished products thoroughly meet the
necessary quality standards. OQC aims to prevent defective products from reaching the
market, safeguarding customer satisfaction and maintaining the company's reputation

5. First Article Inspection (FAI):

FAI is a production validation process for verifying that a new or modified production
process produces conforming parts that meet the manufacturing specifications. It typically
involves inspecting the first part produced by the new process or a sample from the first
batch.

13. Importance of Facility Location and Layout in Service Management

Facility Location:
The strategic placement of a service facility is crucial for accessibility, customer
convenience, and operational efficiency. Factors such as proximity to target markets,
availability of skilled labour, transportation infrastructure, and regulatory environment
influence location decisions. A well-chosen location can enhance customer satisfaction and
reduce operational costs.

Facility Layout:
The arrangement of physical spaces within a service facility affects workflow, service
delivery speed, and customer experience. An efficient layout minimizes wait times, reduces
bottlenecks, and ensures a smooth flow of customers and services. For instance, in a hospital,
a well-planned layout can expedite patient care processes and improve overall service quality.

14. Waiting Line Analysis and Its Application in Service Improvement

Waiting Line Analysis:

This involves studying queues to understand customer wait times and service efficiency. By
applying mathematical models, businesses can predict wait times, optimize service capacity,
and improve resource allocation.

Application in Service Improvement:

In service industries like banking or healthcare, waiting line analysis helps in designing better
service processes. For example, by analysing peak hours and customer arrival patterns, a
bank can schedule more tellers during busy times, reducing customer wait times and
enhancing satisfaction.

15. Service Processes and Service Delivery

Service Processes:
These are the steps and activities involved in providing a service to customers. They
encompass everything from customer inquiry to service completion. Efficient service
processes ensure consistency, quality, and customer satisfaction.

Service Delivery:
This refers to the actual execution of the service process, where the service is provided to the
customer. Effective service delivery requires well-trained staff, appropriate technology, and a
customer-centric approach. For instance, in a restaurant, prompt and courteous service
delivery can significantly enhance the dining experience.