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MASTERS OF
BUSINESS ADMINISTRATION
SCHEME – 2018
Semester 2
HUMAN RESOURCE
MBA 204-18
MANAGEMENT
PRODUCTION AND
MBA 205-18
OPERATIONS MANAGEMENT
CORPORATE FINANCE AND
MBA 206-18
INDIAN FINANCIAL SYSTEM
ENTREPRENEURSHIP AND
MBA 207-18
PROJECT MANAGEMENT
COMPUTER APPLICATIONS
MBAGE 201-18
FOR BUSINESS
@ COPYRIGHT
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form or by any means, electronic, mechanical, photocopying,
recording or otherwise or stored in database pr retrieval system
without prior written permission of authorized person from VJES.
This work is not for sale but for internal circulation inside the VJES
Campus and only for VJES students.
SUBJECT NAME:
BUSINESS ANALYTICS FOR DECISION
MAKING
SUBJECT NAME:
LEGAL ENVIRONMENT FOR BUSINESS
3) Where the seller has expressly reserved the right of resale in the
contract. No notice to the buyer is required in that case.
4) In case of finder of lost goods the finder can resale it after he has
tried his hard to locate the original owher.
In any of the above case if at the time of resale the goods have been
sold at the lower price than before then whatever the loss , the seller
can recover it from the buyer. But if there is profit it will be of the
seller.
2) Where the property in the goods has not passed to the buyer
Right of withholding Delivery -- Where the property in the goods
has not passed to the buyer, the unpaid seller has the right to withhold
delivery of the goods, which is similar to and co-extensive with his
rights of lien and stoppage in transit which he would have had if the
property had passed.
B) Rights Against the Buyer Personally (Seller's Remedies Against
buyer for Breach of Contract)-- Besides, the above rights against the
goods, an unpaid seller has certain rights against the buyer personally.
The seller enjoys the following rights in personam (also known as
remedies for breach of contract).
1. Suit for Price -- When the property in the goods has passed to
the buyer, and the buyer wrongfully neglects or refuses to pay the
price, the seller is entitled to sue him for the price.
Where under a contract of sale the price is payable on a certain day
irrespective of delivery or passing of property, and the buyer refuses
or neglects to pay on that day, the seller may sue him for the price.
2. Suit for Damages for Non-Acceptance -- Where the buyer
wrongfully neglects or refuses to pay for the goods, the seller may sue
him for damages for non-acceptance.
3. Suit for Damages for Repudiation of contract before date of
delivery Where the buyer repudiates the contract before the date of
Banker’s Draft
May 2, 2001
Five months after date pay Tarun or (to his) order the sum of Rupees
Ten Thousand
To Accepted Stamp
Sameer
Difference between bills of Sameer S/d
exchange and promissory note
BILLS OF EXCHANGE
Address PROMISSORYRajiv
NOTE
There are three parties namely drawer, There are only two parties viz maker
drawee and payee and payee
The drawer and payee may be the same Maker cannot be the payee
person
There is an unconditional order to Contains an unconditional promise by
drawee to pay according to the the maker to pay to the payee or to his
drawer’s direction order
Payable after sight must be accepted by Presented for payment without any
the drawee or someone else on his prior acceptance by the maker
behalf before it can be presented for
payment
The liability of the drawer is secondary Liability of a maker of promissory
and conditional note is primary and absolute
CHEQUE
A "cheque" is a bill of exchange drawn on a specified banker and not
expressed to be payable or otherwise than on demand. Sec.6
A cheque being a biil of exchange must possess all the essentials of a
bill of exchange and should also meet the following additional
requirements of Section6:
1. A cheque must be drawn upon a specified banker.
2. A cheque must be payable on demand.
Features of a cheque
i. A cheque must be in writing and duly signed by the drawer.
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ii. It contains an unconditional order.
iii. It is issued on a specified banker only.
iv. The amount specified is always certain and must be clearly
mentioned both in figures and words.
v. The payee is always certain.
vi. It is always payable on demand.
vii. The cheque must bear a date otherwise it is invalid and shall not
be honoured by the bank.
viii. A cheque must be addressed by one person to another. So draft is
not a cheque
ix The cheques are usually written on printed forms supplied by the
banks on their depositors.
SPECIMEN OF A CHEQUE
No. Dated………20
Pay………………………………………………Or Bearer
Rupees……………………………………………………..
…………………………………………………………..…
PARTIES TO CHEQUES:-
Rs…………………..
Drawer
Account
Drawee
No……..
Payee
Types of Cheques:-
i. Crossed cheque:-Since open cheque is subject to risk of
theft, it is dangerous to issue such cheques. This risk can be avoided
by issuing another types of cheque called ‘Crossed cheque’. The
payment of such cheque is not made over the counter at the bank. It is
only credited to the bank account of the payee. A cheque can be
crossed by drawing two transverse parallel lines across the cheque,
with or without the writing ‘Account payee’ or‘Not Negotiable’
ii. Bearer cheque:-A cheque which is payable to any person
who presents it for payment at the bank counter is called ‘Bearer
cheque’. A bearer cheque can be transferred by mere delivery and
requires no endorsement
SUBJECT NAME:
MARKETING MANAGEMENT
Micro-Environment
The company aspect of micro-environment refers to the internal
environment of the company. This includes all departments, such as
management, finance, research and development, purchasing,
operations and accounting. Each of these departments has an impact
on marketing decisions. For example, research and development have
input as to the features a product can perform and accounting
approves the financial side of marketing plans and budget in customer
dissatisfaction. Marketing managers must watch supply availability
and other trends dealing with suppliers to ensure that product will be
delivered to customers in the time frame required in order to maintain
a strong customer relationship.Marketing intermediaries refers to
resellers, physical distribution firms, marketing services agencies, and
financial intermediaries. These are the people that help the company
promote, sell, and distribute its products to final buyers. Resellers are
those that hold and sell the company’s product. They match the
distribution to the customers and include places such as Wal-Mart,
Price change:
The difference in the cost of an asset or security from one period to
another. While it can be computed for any length of time, the most
commonly cited price change in the financial media is the "daily price
change", which is the change in the price of a stock or security from
the previous trading day's close to the current day's close. Price
change over a period of time such as year-to-date or past 12 months
are also commonly used time periods, and is generally computed as a
percentage change.
Retailing:
Retail is the process of selling consumer goods and/or services to
customers through multiple channels of distribution to earn a profit.
Demand is created through diverse target markets and promotional
tactics, satisfying consumers' wants and needs through a lean supply
chain. In the 2000s, an increasing amount of retailing is done online
using electronic payment and delivery via a courier or postal mail.
Retailing includes subordinated services, such as delivery. The term
"retailer" is also applied where a service provider services the small
orders of a large number of individuals, rather than large orders of a
small number of wholesale, corporate or government clientele. Shops
may be on residential streets, streets with few or no houses, or in a
shopping mall. Shopping streets may be for pedestrians only.
Sometimes a shopping street has a partial or full roof to create a more
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comfortable shopping environment protecting customers from various
types of weather conditions such as extreme temperatures, winds or
precipitation. Online retailing, a type of electronic commerce used for
business-to-consumer (B2C) transactions and mail order, are forms of
non-shop retailing.
Shopping generally refers to the act of buying products. Sometimes
this is done to obtain final goods including necessities such as food
and clothing; sometimes it is done as a recreational activity.
Recreational shopping often involves window shopping (just looking,
not buying) and browsing and does not always result in a purchase.
Wholesaling:
Wholesaling, jobbing, or distributing is the sale of goods or
merchandise to retailers; to industrial, commercial, institutional, or
other professional business users; or to other wholesalers and related
subordinated services.In general, it is the sale of goods to anyone
other than a standard consumer.
According to the United Nations Statistics Division, "wholesale" is
the resale (sale without transformation) of new and used goods to
retailers, to industrial, commercial, institutional or professional users,
or to other wholesalers, or involves acting as an agent or broker in
buying merchandise for, or selling merchandise to, such persons or
companies. Wholesalers frequently physically assemble, sort and
grade goods in large lots, break bulk, repack and redistribute in
smaller lots. While wholesalers of most products usually operate from
independent premises, wholesale marketing for foodstuffs can take
place at specific wholesale markets where all traders are congregated.
Traditionally, wholesalers were closer to the markets they supplied
than the source from which they got the products. However, with the
advent of the internet and e-procurement there are an increasing
number of wholesalers located nearer to the manufacturers in China,
Taiwan, and Southeast Asia.
In the banking industry "wholesale" usually refers to wholesale
banking, providing tailored services to large customers, in contrast
with retail banking, providing standardized services to large numbers
of smaller customers.
Logistics:
SUBJECT NAME:
HUMAN RESOURCE MANAGEMENT
Staffing:
TOs is a process by which managers select, train, promote and retire
their subordinates This involves deciding what type of people should
be hired, recruiting prospective employees, selecting employees,
setting performance standard, compensating employees, evaluating
performance, counseling employees, training and developing
employees.
Directing/Leading:
Directing is the process of activating group efforts to achieve the
desired goals. It includes activities like getting subordinates to get the
job done, maintaining morale motivating subordinates etc. for
achieving the goals of the organisation.
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Controlling:
It is the process of setting standards for performance, checking to see
how actual performance compares with these set standards, and taking
corrective actions as needed.
(2) Operative Functions:
The operative, also called, service functions are those which are
relevant to specific department. These functions vary from department
to department depending on the nature of the department Viewed
from this standpoint, the operative functions of HRM relate to
ensuring right people for right jobs at right times. These functions
include procurement, development, compensation, and maintenance
functions of HRM.
A brief description of these follows:
Procurement:
It involves procuring the right kind of people in appropriate number to
be placed in the organisation. It consists of activities such as
manpower planning, recruitment, selection placement and induction
or orientation of new employees.
Development:
This function involves activities meant to improve the knowledge,
skills aptitudes and values of employees so as to enable them to
perform their jobs in a better manner in future. These functions may
comprise training to employees, executive training to develop
managers, organisation development to strike a better fit between
organisational climate/culture and employees.
Compensation:
Compensation function involves determination of wages and salaries
matching with contribution made by employees to organisational
goals. In other words, this function ensures equitable and fair
remuneration for employees in the organisation. It consists of
activities such as job evaluation, wage and salary administration,
bonus, incentives, etc.
Maintenance:
It is concerned with protecting and promoting employees while at
work. For this purpose virus benefits such as housing, medical,
educational, transport facilities, etc. are provided to the employees.
STRATEGIC HRM
Strategic management is the process of formulating, implementing
and evaluating business strategies to achieve organisational
objectives. Cunningham’ has defined strategic management as a
manner by which organisations plan to deal with the various aspects
of management like problem perception, divergent thinking,
substantial resources, decisions making, innovations, taking risks and
facing uncertainty. Meaning of strategic HRM: Human Resource
Management The best way to understand strategic human resources
management is by comparing it to human resource management.
Human resource management (HRM) focuses on recruiting and hiring
the best employees and providing them with the compensation,
benefits, training, and development they need to be successful within
an organization. However, strategic human resource management
takes these responsibilities one step further by aligning them with the
goals of other departments and overall organizational goals. HR
departments that practice strategic management also ensure that all of
their objectives are aligned with the mission, vision, values, and goals
of the organization of which they are a part. Strategic Human
Resource Management Strategic human resource management is the
practice of attracting, developing, rewarding, and retaining employees
for the benefit of both the employees as individuals and the
organization as a whole. HR departments that practice strategic
human resource management do not work independently within a silo;
they interact with other departments within an organization in order to
Ongoing relationship that can last for a Relationship generally has a set
long period of time duration
Agenda is set by the mentee, with the The agenda is focused on achieving
mentor providing support and specific, immediate goals
guidance to prepare them for future
roles
piece system of payment, wages are based on output and not on time.
There is no consideration for time taken in completing a task. A fixed
rate is paid for each unit produced, job completed or an operation
performed. Workers are not guaranteed minimum wages under this
system of wage payment.
The wages to be paid to a worker can be calculated as follows:
Quantity produced = output x piece rate
The quantity produced by a worker will be multiplied by the rate per
unit for calculating wages. An equitable piece rate should be fixed for
giving incentive to the workers for producing more. Different piece
rates will be determined for separate jobs. The factors like efforts
involved, conditions under which work is to be performed, risk
involved, etc. should also be taken into consideration while fixing
piece rates.
5. The
final step in factor comparison method is to compare and evaluate the
remaining jobs in the organisation. To illustrate, a ‘toolmaker’ job is
to be evaluated. After comparison, it is found that its skill is similar to
electrician (5), mental requirements to welder (10) Physical
requirements to again electrician (12), working conditions to mecha-
nist (24) and responsibility also to mechanist (3). Thus, the wage rate
for the job of toolmaker will be Rs. 54 (Rs.5 + Rs. 10 + Rs. 12 +
Rs.24 + Rs.3).
Merits:
This method enjoys the following merits:
1. It is more objective method of job evaluation.
2. The method is flexible as there is no upper limit on the rating of a
factor.
3. It is fairly easy method to explain to employees.
4. The use of limited number of factors (usually five) ensures less
chances of overlapping and over-weighting of factors.
5. It facilitates determining the relative worth of different jobs.
Demerits:
The method, however, suffers from the following drawbacks:
1. It is expensive and time-consuming method.
2. Using the same five factors for evaluating jobs may not always be
appropriate because jobs differ across and within organizations.
3. It is difficult to understand and operate
QUALITY CIRCLES
A quality circle is a volunteer group composed of workers , usually
under the leadership of their supervisor , who are trained to identify,
analyze and solve work-related problems and present their solutions
to management in order to improve the performance of the
Forms of Participation
Different forms of participation are discussed below:
Collective Bargaining: Collective bargaining results in collective
agreements which lay down certain rules and conditions of service in
an establishment. Such agreements are normally binding on the
parties. Theoretically, collective bargaining is based on the principle
of balance of power, but, in actual practice, each party tries to outbid
the other and get maximum advantage by using, if necessary, threats
and counterthreats like; strikes, lockouts and other direct actions. Joint
consultation, on the other hand, is a particular technique which is
intended to achieve a greater degree of harmony and cooperation by
emphasising matters of common interest. Workers prefer to use the
instrument of collective bargaining rather than ask for a share in
management. Workers’ participation in the U.S.A has been ensured
almost exclusively by means of collective agreements and their
application and interpretation rather than by way of labour
representation in management.
Works Councils: These are exclusive bodies of employees, assigned
with different functions in the management of an enterprise. In West
Germany, the works councils have various decision-making functions.
In some countries, their role is limited only to receiving information
about the enterprise. In Yugoslavia, these councils have wider
decision-making powers in an enterprise like; appointment,
promotion, salary fixation and also major investment decisions.
Joint Management Councils and Committees: Mainly these bodies
are consultative and advisory, with decision-making being left to the
top management. This system of participation is prevalent in many
countries, including Britain and India. As they are consultative and
SUBJECT NAME:
PRODUCTION AND OPERATIONS
MANAGEMENT
Classification of operations
Processes fall into four different categories for operations
management based on the nature of their function. Some processes
relate primarily to a product’s cost structure; others address the
company’s product standardization needs, output volume, or
production flexibility. Take a look at processes that focus on these
types of business considerations and review general guidelines on
how to best select a process to meet the requirements of your product.
Before you dive into classifying a process, consider the nature of the
product it’s intended to produce. After all, creating a unique item,
such as an interstate highway bridge, is wildly different from
producing a million bottles of contact-lens solution or thousands of
socks in two different colors. Here are common process
classifications, arranged according to fixed costs (lowest to highest):
Projects: These generally result in an output of one. Examples
include constructing a building or catering a party. Although the result
where
x, y= coordinates of the new facility at center of gravity
xi, yi= coordinates of existing facility i
Wi= annual weight shipped from facility i
Load Distance Technique: A variation of the center-of-gravity method
for determining the coordinates of a facility location is the load-
distance technique. In this method, a single set of location coordinates
is not identified. Instead, various locations are evaluated using a load-
distance value that is a measure of weight and distance. For a single
potential location, a load-distance value is computed as follows:
where
LD = the load-distance value
li = the load expressed as a weight, number of trips, or units being
shipped from the proposed site to location i
di = the distance between the proposed site and location i
Product design and development: The term designing the product
refers to the determination of shape, standard and pattern of the
product. It includes Specification, Experimental and development
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work for the production of desired product, Calculation of estimates
and drafting estimates of contracts for new inquiries, and Issuing
necessary instructions to the production department for production.
Generally, a separate technical department is established in big
industries that is assigned the responsibility of designing the product.
The technical department must clearly specify what is to be produced
by the production department not only because it has been entrusted
with the task of designing the product, but also for gaining and
retaining the goodwill of other manufacturers and consumers who will
use the product.
It is advisable that the cooperation of other concerning departments
should be sought in designing the product. Production and sales
departments are two main departments concerned. Thus, designing of
a product must be integrated with production and sales functions.
Characteristics of a Good Product Design
A good product design should posses the following characteristics:
1. Function :A product can be sold if it meets the needs of the
consumer and as such the product must be designed to meet such
needs. For example, a customer expects a gas lighter to be convenient
(i.e., to instantly light the gas stove). If the gas lighter cannot achieve
that, then the purpose is lost as the basic function is not met.
2. Reliability: It is the probability that there will not be any major
failure of the product during its use. For example, if certain
components of a product are put into use very often, the reliability of
each component should be staggeringly high which may not be
practical from production point of view. To overcome this problem,
duplicate components can be operated in parallel i.e., if one
component fails its duplicate may be put into operation.
3. Maintainability: The lubrication points and other areas for
servicing of the product to be designed, ought to be easily accessible
even though the physical form may have to be altered a bit. The
alternative is to make a trouble free product with expensive design.
The trade off between being trouble-free and maintainability is an
important decision at the design stage and it mainly depends on the
nature of the product. The after sales feedback from customers is
quite valuable in improving upon the maintainability of a product.
SUBJECT NAME:
CORPORATE FINANCE AND INDIAN
FINANCIAL SYSTEM
The following forecasts are made of the rates of inflation each year
for the next 5 years :
DIVIDEND POLICY
The main consideration in determining the dividend policy is the
objective of maximization of wealth of shareholders. Thus, a firm
should retain earnings if it has profitable opportunities, giving a
higher rate of return than cost of retained earnings, otherwise it should
pay them as dividends. It implies that a firm should treat retained
earnings as the active decision variable, and dividends as the passive
residual.
In actual practice, however, we find that most firms determine
the amount of dividends first, as an active decision variable, and the
residue constitutes the retained earnings. In fact, there is no choice
with the companies between paying dividends and not paying
dividends. Most of the companies believe that by following a stable
dividend policy with a high pay out ratio, they can maximize the
market value of shares. Moreover, the image of such companies also
improved on the market and the investors also favour such companies.
The firms following this policy, can thus successfully approach the
market for raising additional funds for future expansion and growth,
as and when required. It has therefore, been rightly said that
theoretically retained earnings should be treated as the active decision
variable and dividends as passive residual but practice does not
conform to this in most cases.
Illustration 1: ABC Ltd. belongs to a risk class for which the
appropriate capitalization rate is 10%. It currently has outstanding
5,000 shares selling at Rs.100 each. The firm is contemplating the
declaration of dividend of Rs.6 per share at the end of the current
financial year. The company expects to have net income of Rs.50,000
and has a proposal for making new investments of Rs.1,00,000. Show
that under the MM hypothesis, the payment of dividend does not
affect the value of the firm.
Solution:
A. Value of the firm when dividends are paid:
(i) Price of the share at the end of the current financial year.
P1 = P0 (1 + Ke) – D1
SUBJECT NAME:
ENTREPRENEURSHIP AND PROJECT
MANAGEMENT
People are always asking for a list of fundamentals they can use to
start their own businesses. From your business type to your business
model to your physical location, there are so many variables it’s not
easy to come up with a list that will work “exactly so” for everybody.
With that being said, here are our seven steps to starting your own
business. The key, regardless of what type of business you’re starting,
is to be flexible!
1. Conduct a personal evaluation
“Know yourself, and work in a job that caters to your strengths. This
knowledge will make you happier.” – Sabrina Parsons
Begin by taking stock of yourself and your situation:
Why do you want to start a business? Is it money, freedom, creativity,
or some other reason?
What skills do you have?
What industries do you know about?
Would you want to provide a service or a product?
What do you like to do?
How much capital do you have to risk?
Will it be a full-time or a part-time venture?
Your answers to these types of questions will help you narrow your
focus.
This step is not supposed to dissuade you from starting your own
business. Rather, it’s here to get you thinking and planning. In order
to start a successful business, passion alone isn’t enough.
Mega Environment:
Mega environment mainly consist of International Environment
which is very important from the point of certain categories of
business.
A. Import and export dependency
B. World trade linkage
SUBJECT NAME:
COMPUTER APPLICATIONS FOR BUSINESS