Roll No.

_____________ 201

JULY 2021
MBA (Full Time) - Examination
II Semester
Business and Economic Environment

Time – 3 Hours] [Max. Marks: 60

Section - A
Application Based Questions
Attempt any three questions 3X12=36

1. According to World Bank’s ease of doing business 2020 report, India jumped to 63rd position,
among 190 nations, support your answer with the role of Economic, Natural and
Technological Environmental factors of India.

2. “Contribution of service sector is prominent in India’s GDP calculation,” Explain.

3. Usually increase in income of a consumer will lead to increase in consumption, but Marginal
Propensity to Consume (MPC) helps to maintain a balance between Income and
Consumption, Elaborate this statement with the help of suitable examples.

4. Explain the challenges found by RBI in controlling the money supply during covid – 19.

5. After 2nd Wave of Covid-19 inflationary pressure will worsen. Elaborate and justify with
authentic data.

Section-B
Case Study Based
Compulsory 2X12=24

Case Study: Coca-Cola’s Micro Environment

The marketing department of Coca-Cola develops core strategies for company brands to make
sure that all communication is consistent in all the markets. With a combined effort, the Coca-
Cola system attempts to maximise its resources for profitable growth and market leadership.
The marketing departments are responsible for product’s advertisement, marketing and
promotion. If all these departments perform their duty effectively, then the objectives of the
Coca-Cola Company will be met. Coca-Cola agreed to swap some brands and buy a 17% stake
in Monster Beverage Corp. for about $2.15 billion, increasing its bet on the rapid growth of the
energy-drink market. Under the agreement, the two companies will share their production,
marketing and distribution.

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 2 201

Marketing intermediaries aid the company in promoting, selling and distributing its goods to
the end customers. Intermediaries encompass marketing agencies, distribution firms and
resellers. For example, in a deal, Coke joined hands with a US-based company Wendy that it
will provide coke to all the fast food chains located in the US. In this case, Wendy is an important
example of intermediary for coke. Suppliers offer raw materials and resources that are required
by the firms to produce goods and services. For example, bottling partners is a company-owned
entity, namely Hindustan Coca Cola Beverages Ltd. Suppliers always play a crucial role in the
operations of every firm.

Customers of coke differ massively in terms of age. From kids to youngsters, youngsters to
elders and elders to older people, coke has always captured high customer attention for decades.
For example, with the help of market survey, Coke finds that one million US population drinks
coke with breakfast every single day. This is how coke has been favourite drink of customers for
centuries. Recent survey shows that coke is the only product in the world of which more than
85% of the population is well aware. All companies have to keep updated study of their
customers. In case of coke, the company has always maintained excellent customer retention.

Coca Cola’s annual Stakeholder Panel is particularly insightful with members of the Panel
drawn from NGOs, academia, investors, trade associations, suppliers and other technical
experts. The Panel’s scope is to identify emerging risks and opportunities, and to encourage
company demonstrate ever-greater leadership and innovation.

Questions

1. What are the micro business environment components of Cola-Cola as in the case mentioned
above? (Hint: Marketing intermediaries, suppliers, customers, stakeholder

2. How has Coca-Cola maintained its customer base?

__________________
Roll No.__________________ 202
JUNE 2021
MBA (Full Time) - Examination
II Semester
Financial Management

Time – 3 Hours] [Max. Marks: 60

Note: Attempt any 2 Questions from Section A (MM 24), and any 3 Questions from Section
B (MM 36). Each question carries equal marks.

Section – A

1. The prime focus of Financial Management is around profit as well as wealth. Discuss the
statement with suitable examples.

2. Indifference Point is a significant indicator in Leverage Analysis. Explain the concept with
suitable example.

3. Risk Free Rate of Return is an important determinant and affects the returns expectation of
investor. Analyze the above statement with suitable assumptions.

4. Dividends are important decision making criteria for investors in case of equity investment.
Critically evaluate the statement in the light of any settled approach.

Section – B

1. Ultra-Cement Ltd. is considering two financial plans with a view of examining the impact
on EPS. The total funds required are ₹ 5, 00,000.

Financial Plans Plan I Plan II

Debt @10% ₹ 400,000 ₹ 100,000
Equity shares @10 ₹ 100,000 ₹ 400,000
Total ₹ 500,000 ₹ 500,000

The tax rate applicable is 50%, EBIT Levels are (I) ₹ 50, 000, (II) ₹ 75, 000, (III) ₹ 1, 25, 000.
Calculate Leverages in all the cases.

2. Exide Limited is considering three financing plans. The key information is as follows:-
(a) Total investment to be raised ₹ 2, 00,000.
(b) Equity shares of the face value of ₹ 10 each will be issued at a premium of ₹ 10 per
share.
(c) Expected PBIT is ₹ 80,000.

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 2 202

Plans of Financing Proportion

Plans Equity Debt Preference
A 100 %
B 50 % 50 %
C 50 % 50%
Cost 8% 8%
Tax Rate 35%

Determine for each plan:-

i. Earnings per share (EPS)and
ii. The financial Break Even Point.
iii. Indicate if any of the plans dominate and compute the Level of Indifference.

3. ABC Ltd furnishes estimates from Production Department;

Element of cost:
Material 40%
Direct labor 20%
Overheads 20%

The following further particular are available:

(a) It is proposed to maintain a level of activity of 2, 00,000 Units.

(b) Selling price is ₹ 12 per unit.
(c) Raw material are expected to remain in stores for an average period of one month
(d) Materials will be in process, on an average for half a month.
(e) Finished goods are required to be in stock for an average period of one month.
(f) Credit allowed to debtors is two months
(g) Credit allowed by suppliers is one month.

You may assume that sales and production follow a consistent pattern. You are required to
prepare a statement of Working Capital Requirement.

4. Delta Ltd. whose Cost of Capital is 10% is considering two mutually exclusive projects X
and Y, compute the Net Present Value, Profitability Index and Internal Rate of Return
of the two projects.

Year Project X Project Y

Cost 0 ₹ 70,000 ₹ 70,000
Cash Flows
1 ₹ 10,000 ₹ 50,000
2 ₹ 20,000 ₹ 40,000
3 ₹ 30,000 ₹ 20,000
4 ₹ 45,000 ₹ 10,000
5 ₹ 60,000 ₹ 10,000
 3 202

5. Amazing Ltd furnishes the following breakup of financials;

Earnings ₹ 500,000,
Dividend Payout Ratio 60 %,
Number of Shares Outstanding 100,000,
Equity Capitalization Rate 12 %,
Rate of Return on Investment 15%.

Calculate:
(a) Market Value per Share as per Walters Approach.
(b) Optimum Dividend Payout Ratio and Market Value of Share at this Dividend
Payout.

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Roll No.______________ 203
JUNE 2021
MBA (Full Time) - Examination
II Semester
E-BUSINESS APPLICATIONS
Time: 3 Hours] [Max. Marks: 40

Note: Attempt any five questions. All questions carry equal marks.

1. “E-business is a more generic term than e-commerce because it refers to not only buying and
selling but also servicing customers and collaborating with business partners.” Explain the
statement with suitable examples?

2. “Electronic data Interchange is electronic transfer, from computer to computer, of

commercial and administrative data using an agreed standard”. Elaborate it with suitable
illustrations?

3. Electronic payment systems are proliferating in banking, retail, health care, on-line markets
and even government. How?

4. Discuss Internet Marketing Methodology and various approaches for promoting website
with the help of examples.

5. “Online advertising is as important as print and electronic advertising now-a-days.” Explain

the statement and support your answer with suitable examples?

6. What are the legal problems in Real Time Marketing? Explain it with examples.

7. Discuss various services of Internet and mobile computing applications for business with
examples.

8. Write short notes on any two of the following with suitable examples. [4+4]
(a) Internet of Things
(b) Web Portals
(c) Cyber Crimes

__________________
Roll No.______________ 204
JUNE 2021
MBA (Full Time) - Examination
II Semester
Operations Management

Time – 3 Hours] [Max. Marks: 60

Note: Attempt any three questions from section A, each carries 12 marks. Section B is
compulsory worth 24 marks.

Section – A

1. Describe any three examples, as customer experience you have personally encountered
where the good or service or both were unsatisfactory. How might the organization have
handled it better?

2. (a) Describe the type of facility layout that would be most appropriate for
(i) A Hospital
(ii) A Manufacturing unit of home furniture

(b) Discuss the issues related with virtual workplace. What challenges do they pose for
operation’s manager?

3. (a) Provide some examples of different types of waste in a fast food restaurant.

(b) Comment on the following with the help of examples:

(i) The success of JIT is primarily due to its ability to constantly expose problems in an
organization.
(ii) Application of JIT varies from one industry to another.

4. What are the barriers for materials management in healthcare sector? Explain with the help
of examples.

5. (a) Define capacity measures for

(i) Pizza Store
(ii) Airlines

(b) A company is involved in producing 3 different type of products; mobile phone, laptop
and desktop. Explain aggregate planning, master production schedule and material
requirement planning in this context. (You can use hypothetical data, if required)

Section - B

6. A firm is setting up an assembly line to produce 192 units per 8-hour shift. The work
elements, times and immediate predecessors are given in the table below:
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Work Time Immediate

Element (Seconds) Predecessor(s)
A 40 None
B 80 A
C 30 D, E,F
D 25 B
E 20 B
F 15 B
G 120 A
H 145 G
I 130 H
J 115 C, I

Determine:
(i) What is the desired cycle time?
(ii) What is theoretical minimum number of workstations?
(iii) What is the line efficiency?

7. Samples of 4 each were taken for the study, the measurement of which were noted as follows:

Sample No. Measurement in mm

1 20 22 25 24
2 18 23 20 26
3 24 25 22 20
4 23 21 26 24
5 24 25 24 21

Draw a control chart for mean and range (given A2= 0.73, D3= 0, D1= 2.11)

8. A job shop has eight shop orders that must be processed sequentially through three work
centres. Times (in hrs) at the various work centres are as shown in following table. Use
Johnson’s rule to develop the job sequence that will minimize the completion time over all
shop orders and also find Idle time of all the machines:

Job A B C D E F G H
M/C 1 4 8 5 9 3 4 9 6
M/C 2 6 4 7 1 4 2 5 2
M/C 3 8 7 9 7 9 8 9 7

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Roll No._____________ 205

JULY 2021
MBA (Full Time) - Examination
II Semester
Human Resource Management
Time: 3 Hours] [Max. Marks: 60

Note: Attempt any three questions from section A which carries 45 marks. Section B is
compulsory which is of 15 marks.

Section – A

1. “A good HR Manager is no longer just a hirer and firer of men”. Discuss. In the light of
this statement, state the role of HR Manager in the new economy.

2. You have been appointed as the Personnel Director of Chandak Textiles Pvt. Ltd., a fast
growing industrial empire in India. It proposes to select some Management Trainees. What
procedure will you follow for the recruitment and selection of such personnel? Discuss the
steps.

3. “A Policy is a guide to taking decisions”. Discuss this statement in light of HR Policy and
suggest the contents for HR Policy which is beneficial for organization.

4. It is often said that “Performance appraisal is good for organization and its employees“.
Give your comments with supportive examples/arguments.

5. Suppose you are a HR Manager in a Paint Industry and you are being told by Management
that wage and salary structure is to be prepared. What components will be in compensation
to attract outsiders. Discuss.

Section – B

6. Analyse the case and answer the questions.

The First-Line Supervisors

A few years ago, the top executives of a well-managed Government company decided to
organise an early Management Awareness Programme for the first line supervisors. This
company had long been in the forefront of human resource development and was quite
ready to listen to the advice of management specialists concerning this subject. They
surveyed their own experience only to find that many young people, professionally trained,
were leaving the company for private employment, where the rewards were thought to be
greater. This left the company with something less than the best qualified and dynamic
supervisors.

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 2 205

A career development programme was carefully worked out. The development of the
candidates comprised:

1. A week of formal supervisory training;

2. Assignment to an establishment supervisor who would act as a teacher and guide,
advising the candidate on a course of reading and enrolment in college courses wherever
available, discussing the theory and practice of management with the candidate and
evaluating his or her progress;
3. Work on task-force assignments as available and appropriate. Frequently, candidates
were appointed to supervisory positions before they finished their programmes; if not,
they would either stay within the programme until assigned or resign from it to resume
a technical career.

Several advantages emerged from this programme. The candidates were pleased that their
careers were a matter of interest and concern to the highe4r level executives. The candidates
could more easily bring themselves to the attention of their superior; the company was
provided with a group of youthful candidates for supervision. The brain drain from the
company almost stopped. Gradually more vigour in management levels became evident and
young men and women could establish a broader base of experience from which to decide
whether they really wanted to be managers.

Certain disadvantages also became appar3ent. Many good candidates failed to apply for the
programme because they were not sure of their own career objectives, they did not want to
move away from the places where they were originally domiciled or they felt too busy to
undergo the training described (it was in addition to their full time positions). Some
complained of inadequate counselling and many who failed to apply were later disgruntled
when they found themselves no longer among the candidates for supervisory appointments.

The company is now in a mood to reassess its experience with the programme

Questions:

1. Is this a good training programme? Are there any missing elements?

2. If you were asked to suggest improvements what would you say?

__________________
Roll No.________________ 206

JULY 2021
MBA (Full Time) - Examination
II Semester
Business Research Methods

Time – 3 Hours] [Max. Marks: 40

Note: Attempt any four questions from Section ‘A’. Section ‘B’ is compulsory.

Section – A [28 Marks]

1. Research is process that needs to be taken care with precaution at different stages, justify.
Also discuss the various problems that may be faced by researchers while doing a research.

2. Detailed literature review is important for carrying out gap analysis in research. Explain
using a suitable example.

3. Research problem and research design are crucial for the success of any research process.
Discuss with the help of any research topic.

4. Hypothesis testing may result into error, discuss. Also explain with suitable example, how
these error can be controlled.

5. While designing questionnaire, the parameters like reliability and validity has to be
measured for the success. Justify the statement with suitable examples.

6. Research interpretation has to be done carefully for the implementation of research outcomes
successfully. Comment using suitable examples.

Section - B [12 Marks]

Analyze the case study carefully and answer the questions.

What does a Employee Want?

An academic study was conducted across various IT companies to find out the percent hike in
the compensation (pay package) at which employee are ready to forgo better and development
opportunities. For this, they have develop a questionnaire as presented below. Go through the
questionnaire and answer the following questions;

1. What were the research objective and information needs of the study?
2. How would you evaluate this in terms of fulfilling those objectives?
3. What are the problems in the questionnaire? How would you suggest correcting them?
 2 206

Research Questionnaire

Name:___________________
Working as:_____________________
Name of the organization:_____________________
E-mail ID: _________________________
Dated:_______________________

Please fill the following questionnaire :

1. Are you currently employed in the IT sector?

a. Yes
b. No
If yes, then continue.

2. Are you a permanent employee?

a. Yes
b. No
c.
3. Marital Status
a. Single
b. Married
c.
4. Work experience till date
a. Less than 3 months
b. 3 months-1 year
c. 1-3 years
d. 3-5 years
e. More than 5 years

5. Work experience in this organization

a. Less than 3 months
b. 3 months-1 year
c. 1 – 3 years
d. 3-5 years
e. More than 5 years.

6. Mark your salary bracket(All figures are in INR)

a. Less than 20,000
b. 20,000-30,000
c. 30,001-40,000
d. 40,001-50,000
e. Above 50,000
 3 206
7. Do you find sufficient growing opportunities in your current organization?
a. Yes
b. No

8. What is your priority?

a. Compensation hike
b. Current growth opportunity

9. Does your superior’s view affect your decision of selecting pay hike or growth
opportunities?
a. Yes
b. No
c. Can’t say

10. Please rank the following growth opportunities as per your priority (Ranks:1 to 7 )
a. Promotion-------------------------------------------------
b. Onsite (working abroad at Onsite)------------------
c. Training----------------------------------------------------
d. Higher Education(MBA,MS, etc.)--------------------
e. Switching to a better company----------------------
f. Better working environment-------------------------
g. Better assignments-------------------------------------

11. What is the minimum hike in package at which you will be satisfied even when you are
not getting any of the above mentioned growing opportunity?
a. 0-5 per cent
b. 6-10 per cent
c. 11-15 per cent
d. 16-20 per cent
e. 21-25 per cent
f. More than 25 per cent

12. Is money the only factor to continue your current job?

a. Yes
b. No

13. At what percentage hike in package are you willing to forego?

(a) The promotion opportunity
a. 0-5 per cent
b. 6-10 per cent
c. 11-15 per cent
d. 16-20 per cent
 4 206
e. 21-25 per cent
f. 25-30 per cent
g. More than 30 per cent
h. Not willing to forego at any percentage hike

(b) The training opportunity?

a. 0-5 per cent
b. 6-10 per cent
c. 11-15 per cent
d. 16-20 per cent
e. 21-25 per cent
f. 25-30 per cent
g. More than 30 per cent
h. Not willing to forego at any percentage hike

(c) The onsite opportunity(working at the site)

a. 0-5 per cent
b. 6-10 per cent
c. 11-15 per cent
d. 16-20 per cent
e. 21-25 per cent
f. 25-30 per cent
g. More than 30 per cent
h. Not willing to forego at any percentage hike

(d) Higher Education opportunity

a. 0-5 per cent
b. 6-10 per cent
c. 11-15 per cent
d. 16-20 per cent
e. 21-25 per cent
f. 25-30 per cent
g. More than 30 per cent
h. Not willing to forego at any percentage hike

(e) Company-switching opportunity

a. 0-5 per cent
b. 6-10 per cent
c. 11-15 per cent
d. 16-20 per cent
e. 21-25 per cent
f. 25-30 per cent
 5 206
g. More than 30 per cent
h. Not willing to forego at any percentage hike

(f) Better working-climate opportunity?

a. 0-5 per cent
b. 6-10 per cent
c. 11-15 per cent
d. 16-20 per cent
e. 21-25 per cent
f. 25-30 per cent
g. More than 30 per cent
h. Not willing to forego at any percentage hike

(g) Better assignment opportunity

a. 0-5 per cent
b. 6-10 per cent
c. 11-15 per cent
d. 16-20 per cent
e. 21-25 per cent
f. 25-30 per cent
g. More than 30 per cent
h. Not willing to forego at any percentage hike

(h) Working in the city of your choice

a. 0-5 per cent
b. 6-10 per cent
c. 11-15 per cent
d. 16-20 per cent
e. 21-25 per cent
f. 25-30 per cent
g. More than 30 per cent
h. Not willing to forego at any percentage hike
i.
14. What do you consider yourself as per the following:
a. Underpaid
b. Overpaid
c. Paid as per the industry standards

15. Please mention any other growing opportunity which according to your is important
but is not provided by your current organization?
___________________
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 6 206

16. Any other feedback you would like to share.

___________________
___________________

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Roll No.______________ 207

JULY 2021
MBA (Full Time) - Examination
II Semester
Personality Development

Time – 3 Hours] [Max. Marks: 40

Note: Attempt any three questions. All questions carry 8 marks. Section B is compulsory and
carries 16 marks. (2 Case studies of 8 marks each).

Section - A

1. Why is personal grooming important for MBA students? What are the most common skills
and behaviors expected from an MBA student who is targeting the service sector for his/her
career?

2. Explain the role of self-development in preparing for a preferred career. What steps will you
be taking for preparing yourself for your desired profile? Explain with examples.

3. Why is rapport building important in business development? Imagine that you are a Sales
officer of an FMCG company and you are supposed to meet an existing distributor of your
company. What factors will you consider if you want have an effective first meeting with
him?

4. Define the Steven Covey time management matrix. Categorize the activities and task of a
typical MBA student’s daily routine into the four quadrants of the matrix.

5. Write short notes on any two of the following-

(a) DO’s and Don’ts of a group discussion
(b) Negotiation Tips
(c) Effective first impressions.

Section - B

Case study 1

6. Read the case and answer the questions given at the end.

A software engineer is hired as a trainee by a company that specializes in hardware. As the

end of his mandatory training period approaches, his job performance is found below par,
and he is informed that he must leave the company at the end of his training period. His
immediate superior, out of kindness, writes him a recommendation letter, which may help
him in getting the next job. However, this engineer uses the letter to take the company to
court and challenges his dismissal. How should the company resolve this situation?”
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 2 207

Questions:

1. What has led to this situation? How this situation could have been avoided.

2. What should the company do now?

3. Do you think that the immediate superior has committed a mistake by writing the
recommendation? Why or why not?

4. Do you think that the behaviour of the engineer is appropriate? Justify your answer.

Case study 2

You are the head of the Human Resources department of an organization. One of the workers,
while trying to molest his co-worker, is pushed away from her towards a heavy machine – which
instantly kills him. The witnesses claim that it was his fault and the woman didn’t push him
with an intention to harm him. She did so in self-defense. His family is demanding
compensation from you and has filed complaint against you. Family doesn’t know that it’s the
woman who has pushed him. They are told by other employees that it’s an accident. The
chairman of the company has asked you to end the issue from your side. He has warned you
not to complicate the issue.

Questions:

1. What will you communicate to the family of the worker who has died? [02 marks]

2. What statement will you issue to your employees and to the outside stakeholders about this
situation keeping in mind what your chairman has asked you to do? [03 marks]

3. Do you think your company should give the compensation to the family of the worker who
is dead? Why or why not? [03 marks]

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Roll No. _____________ 208

JULY, 2021
MBA (Full Time) – Examination
II Semester
ENTREPRENEURSHIP
Time: 3 Hours] [Max. Marks: 60

Note: Section A - Attempt any 3 questions out of 5. Each question carries 12 marks.
Section B is compulsory, carries 24 marks.

Section - A

1. Explain contribution of Entrepreneurs in economic development of our country.

2. Taking example of any business model, Explain factors considered for modeling a business.

3. ”Behaviour is more important than the actor”. Discuss.

4. Organization with strong entrepreneurial orientation statistically perform better. Explain.

5. An entrepreneurial ecosystems are peculiar systems of interdependent actors and relations

directly or indirectly supporting the creation and growth of new ventures. Justify

Section - B

6. Analyze the following case and answer the questions given at the end.

Case study

Awang was a real craftsman when it came to being a machinist. Awang had learned almost all
that he knew from Daud, his first and only employer. Awang was married and had three young
children. He was 33 years old and had worked for Daud ever since he finished his tour in the
Army. In 12 years, Awang had polished his skills under the watchful and critical eye of
Daud.Daud was quick to recognize Awang's talent for the trade. Awang had a positive attitude
about learning and displayed a drive for perfection that Daudadmired. Daud's Machine Shop
was a successful small business. Its success was based mostly on the reputation for quality that
had been established over its 42 years in operation. Daud had come to this country with his new
wife, Salmah, when he was in his late twenties. Now the business was a success, but Daud
remembered the early years when he and Salmah had to struggle. Daud wanted the business to
continue to produce the highest quality craftsman products possible. On a Friday evening, he
called Awang into his office at closing time, poured him a cup of half-day-old coffee, and began
to talk with him about the future."Awang, Salmah and I are getting old and I want to retire. It
has been 42 years of fun but these old hands need a rest. In short, Salmah and I would like you
to buy the business. We both feel that your heart is in this craft

P.T.O.
 2 208

and that you would always retain the quality that we have stood for." Awang was taken back
by the offer. He, of course, knew Daud was getting older, but had no idea Daud would retire.
Awang and his wife, Timah, had only few bugs in the bank. Wang’s salary went for the normal
costs of rearing three children. Daud knew Awang did not have the money to buy the business
in cash, but he was willing to take a portion of the profits for the next 15 years and a modest
initial investment from Awang.Awang had, for the past four years, made most of the technical
decisions in the shop. Awang knew the customers and was well respected by the employees. He
had never been involved in the business side of the operation. He was a high school graduate
but had never taken business courses. Awang was told by Daud that even after deducting the
percentage of the profits he would owe under the sales agreement, he would be able to almost
double his annual earnings. Awang would have to take on all the business functions himself
because Timah had no business training either.

Questions:

1. Which entrepreneurial characteristics does Awang have that may be important to his
success?

2. Which characteristics could lead to Awang’s failure?

3. What type of business model can be used for maintaining the same reputation of business?

__________________
Roll No._____________ 209

JULY 2021
MBA (Full Time) - Examination
II Semester
PSYCHOLOGY
Time – 3 Hours] [Max. Marks: 60

Note: Section A Attempt any 3 questions. Each carry 15 marks. Section B Case study 15 marks.

Section – A

1. Describe the evolutionary theory of Darwin and explain its influence on human development
aspects.

2. Why psychology is required as a science? Explain in brief the Scientific method and
Descriptive method in study of psychology.

3. Is creativity different from Innovation? If yes, take an example to support your answer.
Which teaching of creativity is considered best? why?

4. How can we detect emotions in others and what role is played by gender and culture in
detecting emotions?

5. Discuss in detail humanistic psychologists view of personality view of personality. What

criticism have they faced?
Section - B

6. Read the case and answer the questions given at the end.

Jet Capital

Mr. Frank Lorenzo had a dream from the very childhood to own an airline. He grew up in New
York city in the shadow of LaGuardia Airport, became extremely fascinated with the airline
industry and vowed one day to be an owner of a major airline.

He and a friend invested $25000 each in 1969 to start an airline consulting firm called Jet Capital.
In 1971, they took control of a small, regional airline known as Texas International. He was
successful in running this airline and was able to take over a major carrier, Continental Airlines
in 1981.

Being an aggressive and determined decision maker, Lorenzo decided to streamline the
operations of Continental Airlines. He authorised a detailed and analytical study of its cost
structure and concluded that the overhead costs were to high and specially the labour costs. His
study indicated that the labour cost for U.S. Airlines was about 20 percent higher than the

P.T.O.
 2 209
comparable labour cost of International carriers. He decided to take steps to lower the labour
costs: Lorenzo asked the labour unions to negotiate lower wage rates in order to make
Continental Airlines more competitive. The union refused. Lorenzo was adamant and struck to
his position that labour costs had to be reduced and he refused to consider other options. In a
bold move in 1983, Lorenzo declared bankruptcy for Continental Airlines to break the existing
labour contracts and employ non-union workers at a much lower cost.

Even though, the labour unions became his enemies, he was to hire new employees and with
lower labour cost, Continental was able to reduce fares and increase its market share rapidly.

In 1986, Lorenzo made a series of bold moves and acquired People’s Express Airline, frontier,
Airline and Eastern Airline which was one of the largest airlines in America. Eastern Airlines,
at this time, was having its own trouble with its labour unions and these unions were very strong
and enjoyed tremendous power in negotiating settlements with the management. Lorenzo’s
acquisition of Eastern Airlines made the unions even more determined to get what they wanted.

During negotiations, virtually every concession he requested from labour was denied. The
unions went on strike in 1989. Lorenzo, once again, took Eastern into bankruptcy, hoping to
repeat the success of Continental experience. It did not work .The unions were too strong.
Eventually, his control of Eastern was taken away from him by the courts. In 1990, he also
relinquished his Texas Air and in January 1991, Eastern Airlines was shut down once and for
all.

In a bold attempt to come back into the airline industry, Frank Lorenzo applied to start another
airline named ATX to serve East coast points from Washington area. His bid has been opposed
by the unions who consider him as a destroyer of airlines. His bid may or may not be approves
but he has become the most controversial and perhaps most disliked person in the airline
industry because of his management tactics in managing an airline.

Questions:

1. Discuss the personality traits of Frank Lorenzo and establish whether he is type A or type B
personality.

2. How did the attitudes of both Lorenzo and the Unions affect the operations of Eastern
Airlines?

3. If you were hired as a consultant and as an arbitrator to handle the dispute at Eastern
Airlines, what recommendation would you provide to solve the problem amicably?

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Roll No._______________ 210

JUNE 2021
MBA (Full Time) – Examination
II Semester
Management by Consciousness
Time – 3 Hours] [Max. Marks: 40

Note: There are two sections A & B. Attempt any three questions from Section A; each
question carries 8 Marks. Section B is of 16 Marks and compulsory.

1. “Leadership is responsibility for present and also for future times. It is the outlook and vision
of the leader which inspire and guide them to lead.” Comment on the statement and explain
the leadership in the consciousness perspective.

2. “Human body has high potential for physical work, all one needs to consciously deal with
own physical being”, express your views about the statement. What are the important
practices to keep the human body healthy and fit? Discuss in detail.

3. “If we are able to deal properly with our emotions then we can create harmony in our life. If
not, emotions can make our life mess” Comment on the statement and explain what is vital
being and how one can use the approach of Stepping Back to deal effectively.

4. “When one consciously notices Psychic Being, and leads the life in its guidance then there is
nothing which can create obstacle in the inner and outer harmony”. What is the importance
of harmony in the manager’s work-life? Discuss and describe any three approaches which
can be helpful in meeting to own Psychic Being.

5. Write short note on any two of the followings (4+4 = 8)

(a) Meditation and Dynamic Meditation
(b) Role of Values at work
(c) Team Performance

6. Carefully read the case and answer the questions given at the end. [16 Marks]

Taj Mahal Palace

On November 26, 2008, Harish Manwani, chairman, and Nitin Paranjpe, CEO, of Hindustan
Unilever hosted a dinner at the Taj Mahal Palace hotel in Mumbai (Taj Mumbai, for short).
Unilever’s directors, senior executives, and their spouses were bidding farewell to Patrick
Cescau, the CEO, and welcoming Paul Polman, the CEO-elect. About 35 Taj Mumbai
employees, led by a 24-year-old banquet manager, Mallika Jagad, were assigned to manage
the event in a second-floor banquet room. Around 9:30 PM., as they served the main course,
they heard what they thought were fireworks at a nearby wedding. In reality, these were the
first gunshots from terrorists who were storming the Taj.

P.T.O.
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The staff quickly realized something was wrong. Jagad had the doors locked and the
lights turned off. She asked everyone to lie down quietly under tables and refrain from using
cell phones. She insisted that husbands and wives separate to reduce the risk to families. The
group stayed there all night, listening to the terrorists rampaging through the hotel, hurling
grenades, firing automatic weapons, and tearing the place apart. The Taj staff kept calm,
according to the guests, and constantly went around offering water and asking people if they
needed anything else. Early the next morning, a fire started in the hallway outside, forcing
the group to try to climb out the windows. A fire crew spotted them and, with its ladders,
helped the trapped people escape quickly. The staff evacuated the guests first, and no
casualties resulted. “It was my responsibility….I may have been the youngest person in the
room, but I was still doing my job,” Jagad later told one of us.

Elsewhere in the hotel, the upscale Japanese restaurant Wasabi by Morimoto was busy at
9:30 PM. A warning call from a hotel operator alerted the staff that terrorists had entered the
building and were heading toward the restaurant. Forty-eight-year-old Thomas Varghese,
the senior waiter at Wasabi, immediately instructed his 50-odd guests to crouch under tables,
and he directed employees to form a human cordon around them. Four hours later, security
men asked Varghese if he could get the guests out of the hotel. He decided to use a spiral
staircase near the restaurant to evacuate the customers first and then the hotel staff. The 30-
year Taj veteran insisted that he would be the last man to leave, but he never did get out. The
terrorists gunned him down as he reached the bottom of the staircase.

When Karambir Singh Kang, the Taj Mumbai’s general manager, heard about the attacks,
he immediately left the conference he was attending at another Taj property. He took charge
at the Taj Mumbai the moment he arrived, supervising the evacuation of guests and
coordinating the efforts of firefighters amid the chaos. His wife and two young children were
in a sixth-floor suite, where the general manager traditionally lives. Kang thought they
would be safe, but when he realized that the terrorists were on the upper floors, he tried to
get to his family. It was impossible. By midnight the sixth floor was in flames, and there was
no hope of anyone’s surviving. Kang led the rescue efforts until noon the next day. Only then
did he call his parents to tell them that the terrorists had killed his wife and children. His
father, a retired general, told him, “Son, do your duty. Do not desert your post.” Kang
replied, “If it [the hotel] goes down, I will be the last man out.”

Three years ago, when armed terrorists attacked a dozen locations in Mumbai—including
two luxury hotels, a hospital, the railway station, a restaurant, and a Jewish center—they
killed as many as 159 people, both Indians and foreigners, and gravely wounded more than
200. The assault, known as 26/11, scarred the nation’s psyche by exposing the country’s
vulnerability to terrorism, although India is no stranger to it. The Taj Mumbai’s burning
domes and spires, which stayed ablaze for two days and three nights, will forever symbolize
the tragic events of 26/11.

During the onslaught on the Taj Mumbai, 31 people died and 28 were hurt, but the hotel
received only praise the day after. Its guests were overwhelmed by employees’ dedication
to duty, their desire to protect guests without regard to personal safety, and
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their quick thinking. Restaurant and banquet staff rushed people to safe locations such as
kitchens and basements. Telephone operators stayed at their posts, alerting guests to lock
doors and not step out. Kitchen staff formed human shields to protect guests during
evacuation attempts. As many as 11 Taj Mumbai employees—a third of the hotel’s
casualties—laid down their lives while helping between 1,200 and 1,500 guests escape.

At some level, that isn’t surprising. One of the world’s top hotels, the Taj Mumbai is ranked
number 20 by Condé Nast Traveler in the overseas business hotel category. The hotel is known
for the highest levels of quality, its ability to go many extra miles to delight customers, and
its staff of highly trained employees, some of whom have worked there for decades. It is a
well-oiled machine, where every employee knows his or her job, has encyclopedic
knowledge about regular guests, and is comfortable taking orders.

Even so, the Taj Mumbai’s employees gave customer service a whole new meaning during
the terrorist strike. What created that extreme customer-centric culture of employee after
employee staying back to rescue guests when they could have saved themselves? What can
other organizations do to emulate that level of service, both in times of crisis and in periods
of normalcy? Can companies scale up and perpetuate extreme customer centricity?

Our studies show that the Taj employees’ actions weren’t prescribed in manuals; no official
policies or procedures existed for an event such as 26/11. Some contextual factors could have
had a bearing, such as India’s ancient culture of hospitality; the values of the House of Tata,
which owns the Taj Group; and the Taj Mumbai’s historical roots in the patriotic movement
for a free India. The story, probably apocryphal, goes that in the 1890s, when security men
denied J.N. Tata entry into the Royal Navy Yacht Club, pointing to a board that apparently
said “No Entry for Indians and Dogs,” he vowed to set up a hotel the likes of which the
British had never seen. The Taj opened its doors in 1903.

Still, something unique happened on 26/11. We believe that the unusual hiring, training,
and incentive systems of the Taj Group—which operates 108 hotels in 12 countries—have
combined to create an organizational culture in which employees are willing to do almost
anything for guests. This extraordinary customer centricity helped, in a moment of crisis, to
turn its employees into a band of ordinary heroes. To be sure, no single factor can explain
the employees’ valor. Designing an organization for extreme customer centricity requires
several dimensions, the most critical of which we describe in this article.
Questions:
1. Do you think that there was anything beyond “unusual hiring, training and incentive
system of the Taj Group” which resulted in the behaviour of Taj employees.
2. Do you think collective consciousness played a role in the Taj crisis?
3. Identify the behaviours of Taj employees, which you feel based on the conscious
approach.
4. What creative provisions you would suggest for better protection of such social places.
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