EXAMINATION PAPER

FACULTY : BUSINESS ADMINISTRATION

COURSE : MASTER OF BUSINESS ADMINISTRATION (MBA)

YEAR/ SEMESTER : FIRST YEAR / SEMESTER FIRST

MODULE TITLE : BUSINESS ENVIRONMENT ANALYSIS

CODE : MGT 516

DATE : 29-August-2016

TIME ALLOWED : 3 HOURS

START : 12:00 NOON FINISH : 3:00 PM

Instruction to candidates
1. This question paper has THREE (3) Section

2. Answer ALL questions in Section A, MCQ.

3. Answer 5 questions in Section B, MSAQ

4. Answer 2 questions in Section C, MEQ

5. No scripts or answer sheets are to be taken out of the Examination Hall.

6. For Section A, answer in the OMR form provided.

Do not open this question paper until instructed

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 SECTION A

Multiple Choice Questions (30*1=30)

1. In MDG there were …. Goals where as in SDG there were ….. goals.
a. 8, 17
b. 9, 16
c. 8, 16
d. 9, 17

2. Adult Literacy rate (15 years and over) of Nepal is ………….. of male, ……………% of
female. (According to CBS data 2011)
a. 89.2%, 77.5%
b. b.88.2%, 76.5%
c. 90.2%, 77.5%
d. 89.2% 76.5%

3. Name the regulatory authority of capital market in Nepal.

a. SEBON
b. NEPSE
c. NRB
d. SEBI

4. Organization activities intended to benefit society and the environment beyond the
firm’s immediate financial interests or legal obligation.
a. corporate governance
b. social and business ethic
c. corporate social responsibility
d. long-run investment

5. The Investment Board revamps rules and regulations pertaining to ..

a. Foreign currency exchanges
b. Accounting rules of investment
c. Investments by NRNs
d. Foreign Investments

6. What is the full form of MRTP?

a. Monopoly and Restrictive Trade Practices Act
b. Market Research Techniques and Practices
c. Monopoly in Rare Items Trade and Practice
d. Market Retail Tariffs and Prices

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7. Rate at which the commercial banks borrow from Nepal Rastra Bank is called as
…………
a. Repo
b. PLR
c. Bank Rate
d. BPLR

8. Globalization is the term used to describe the process of removal of restrictions on:
a. Foreign trade
b. Investment
c. None of these
d. (a) and (b)

9. Commercial bank's credit creation capacity will ……………., if central bank increases
CRR:
a. Increase
b. Come down
c. Have no effect
d. None of these

10. An expansionary open market operation creates …………………….. pressure on short

term interest rates:
a. Downward
b. Upward
c. Zero
d. None of these

11. Analysts using Porter’s five forces model would see which of the following as substitute
for tourist flights to Pokhara offered by airlines such Buddha Air or Yeti Air?
a. Flight provided by Agni and Tara Air
b. Flight offered by low cost Nepal Airlines
c. Travel on the Green line or other Tourist Bus
d. Online ticket booking facilities

12. The acronym SWOT stands for:

a. Special weapon for operations timeliness
b. Services, worldwide optimization, and transport
c. Strength worldwide overcome threats
d. Strength, weakness, opportunities and threats

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13. When a firm successfully combines assets and skills to do certain things better than
competitors, the firm is using its ………………… effectively.
a. Competitive advantage
b. Core responsibilities
c. Core competencies
d. Core methodologies

14. When a manager attempts to monitor current events in the business environment with
the intention of forecasting future trend, we say that h/she is practicing ……………….
a. Environmental scanning
b. Horizontal integration
c. Diversification
d. Value-chain analysis

15. Globalization is the term used to describe the process of removal of restriction on:
a. Foreign trade
b. Investment
c. None of the above
d. a and b

16. Which of the following does not form part of an organization’s micro-environment?
a. Intermediaries
b. Customers
c. Statute legislation
d. Supplies

17. In a borderless world, doing business today manager have to:

a. Think internationally and act locally
b. Think globally and act locally
c. Think globally to act locally
d. Think globally to act broadly

18. World Trade Organization (WTO) was established in:

a. 2005
b. 1990
c. 1995
d. 1994

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19. It is an agreement on trade in service which extend multilateral rules and disciplines to
serve in the world.
a. GATT
b. TRIMS
c. GATS
d. TRIPS

20. A tariff is:

a. A restriction on the number of export firms
b. Limit on the amounts of imported goods
c. Tax on imports
d. (b) and (c) of above

21. Gross National Product (GNP), Gross Domestic Product (GDP), per capita income,
personal consumption, income distribution, saving debt and credit availability, private
investments are:
a. remote industry
b. economic dimension
c. government activities
d. business environment dimension

22. NAFTA Stands for:

a. North American Free Trade Agreement
b. North Asia Free Trade Agreement
c. North American Free Transaction Agreement
d. North American Free Transit Agreement

23. People perception and purchasing capacity, attitudes and believes, religion, language,
education, social organization, class, structure and business culture are:
a. The ETOP components
b. The socio- culture components
c. The Business environment components
d. ecological components

24. The long term capital investment- involving acquisition by domestic firms of foreign
based factories or any other types of business firm:
a. MNCs
b. Joint venture
c. Merger
d. FDI

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25. The way an organization does its work by using electronic (internet based) linkage with
its key constituencies in order to efficiently and effectively its goal:
a. E-business
b. Foreign direct investment
c. Movement of goods and service
d. World Trade

26. Directly investing in a foreign country by setting up a separate and independent

production facility or office:
a. sales commission
b. duty and custom
c. foreign subsidiary
d. quota discount

27. FMCG stands for:

a. Fast Moving Consumer Goods
b. Fancy Moving Consumer Goods
c. Finished Moving Consumer Goods
d. Functional Moving Consumer Goods

28. The policy is to look into the requirements of investors and to solve their problems from
one place so that they do not have to run from one office to another:
a. Export facilities service
b. Import facilities service
c. One window service
d. Isolate window service

29. Profit advantage, growth opportunities, competitions, domestic market constraints are
the:
a. pull factors
b. growth factors
c. proactive factors
d. push factors

30. Before going to establish any new launching venture or the new business firm as a
business promoter needs to understand the initial level of:
a. ETOP
b. SWOT analysis
c. Business environmental scanning
d. External and internal environment

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 SECTION B
Short Answers Questions
Answer any five (5) questions out of seven (7) questions (5*6=30)

1. PESTLE analysis guides you to identify the positives and negatives inside your institution
and outside of it, in the external environment. Explain

2. "Corporate governance is the method by which a corporation is directed, administered or

controlled". Discuss.

3. How will you define Privatization? Explain the problems of privatization in developing
countries.

4. If you have to start any new venture how would you pay an ethical responsibilities and CSR
to the stakeholder? Explain.

5. Explain the role of technological environment in business.

6. “Some taxes are progressive some taxes are regressive” do you agree with this statement? if
so differentiate direct and indirect taxes.

7. Illustrate the role of WTO’s and its implications for developing Nations.

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 SECTION C
Long Answer Questions
Attempt any two (2) questions but question no 1 is compulsory (2*20=40)

1. A corporate culture-‘NOBODY CAN DO EVERYTHING, EVERYONE CAN DO

SOMETHING’
CG Holdings plans to build four hotels in next five years in Nepal.
Market is so dynamic and changeable in this circumstance CG is taking the pace to achieve
the another field say hospitality industry. CG is planning to start new venture with big
question i.e. Can CG get successes in full fladge as other outlet getting? A Chaudhary Group
the leading corporate industry having 40 SBUs( outlets) in national and international
platform. It has successful outlets in national and international arena. Chaudhary Group (CG)
Holdings has announced developing four hotels in the next five years, with formal
acquisition of Tigerland Safari Resort and Lodge in Chitwan on Wednesday this year. It is
the lucrative initiative pace from the choudari group so far after getting successes in another
segment.
The35-cottage Tigerland resort spread over eight bigas is located on the edge of the Chitwan
National Park.
“This acquisition is the beginning of our investment in the hospitality sector.” said Arun
Chaudhary, Chairman and managing director of CG Holdings.
“Nepal has huge possibilities in the tourism sector. So we see a good future in the years to
come.”
CG Holdings plans to invest Rs. 5 billion in four proposed hotel infrastructure, excluding
land, over the next five years. According to Chaudhary, a 200-room five-star in Jhamsikhel,
Lalitpur, and will be completed by 2020.
The company has signed a management contract with InterContinental Hotels Group, one of
the world’s leading hotel companies, in March to manage the hotel under the “Holiday Inn”
brand.
The company also plans to construct another 80-room luxury five-star hotel in Sarangkot,
Pokhara.
The other proposed projects are 125-room business hotel at Tripureshwor and a “Wellness
Retreat” with 50 cottages at Budhanilkantha in Kathmandu.

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 CG Holdings is a wing of diversified conglomerate Chaudhary Group. Under the group, CG
Hotels and Resorts recently brought into operation MeghauliSerai Jungle Lodge in Chitwan
which managed by India’s most celebrated luxury hotel chain- Taj Hotels Resorts and
Palaces.
CG Hotels and Resorts had last year acquired a majority stake in Summit Hotel, which had
been run by Dutch group Foundation Nepal Holland House since1978. Summit, which offers
73 rooms and is currently being managed by Zinc Hospitality, will be expanded to 200
rooms.
The company also plans to develop another four-star hotel at Jhamsikhel featuring 114
rooms. The company has acquired a 11-storey building for the hotel and plans to bring the
hotel into operation by June 2017.
It has also acquired property of Hotel ChitwanKeyman in Chitwan. The old property has
been demolished (knock down/pull down) and the construction of a mall-cum-hotel is under
way.
The proposed 10-storey building will have 50 rooms with a Cineplex and a food court. It will
also be managed by Zinc.
Questions:
a. Evaluate the barriers to enter in the tourism sector for CG. Can CG easily enter the new
business platform? Critically analyze in the light of environmental scanning and feasibility
studies.
b. What is SBUs? Critically explain the SBUs with substantial example of CG the 40s
outlets.
c. Suggest some of the ideas as professional business student to the managing director Mr.
Arun Chaudhari before launching the new venture/outlets or different segmental business.
d. State the strategies followed by CG. And where did you find acknowledgeable strategies
after studying the above case.

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2. Companies are drawn to expand into international markets in search of lower costs, new
opportunities, and access to resources. When they arrive, however, they often find that the
politics of foreign environments adds risk and complexity to business performance. A
question for companies operating internationally thus becomes how best to manage
political risk. Explain.

3. Britain had voted to leave European Union (EU). Critically examine the effect of this result
in to Nepalese Business Environment. Will Nepal gain?

****BEST OF LUCK****

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