QB(i)McKinsey 7S Framework
2 marks easy
Sharma joined GlobalX Consulting firm as an Analyst in financial fraud mitigation. In her very first assignment, she found an integrity issue in the firm's reported financials during risk assessment. The financial risk which could impact the overall fraud rating of the organisation, she quickly reached out to her seniors who promptly referred the same to senior management. In this scenario which term best describes GlobalX?
(a) Strategy
(b) Structure
(c) Shared Value
(d) Staff
QB(ii)BCG Matrix / Product Portfolio Analysis
2 marks easy
Chocoo, an ice cream company run by Shri Shyam Kumar since 1965, now has 21 employees with his two daughters, who came in and wanted to experiment with a lot of flavors. They introduced 21 new flavors in a span of 6 months while not bearing the prior market testing expenses or market research data, except ice cream Bar. After year 1 of operations, 9 out of the 21 flavors had to be stopped while 12 flavors were still kept, and experimentation. The early sense from market was that they would have to be dropped too. But, the sisters decided to extend their ice-cream portfolio with 15 new flavors? Would this fall into?
QiBusiness Life Cycle Stages
2 marks easy
Case: Cafe Delight transitioned from a pocket-friendly pricing design model to a skimming strategy, capitalizing on its expanding presence and increasing popularity. With an expanding presence and increasing popularity, Cafe Delight underwent a shift in its pricing strategy, capitalizing on its unique restaurant. Cafe Delight faced stiff competition from global brands entering the Indian market but maintained a profit margin of approximately 30% through more engineering and targeted pricing.
Cafe Delight effectively leveraged social media and adapted its pricing strategy as it stepped into which phase of business life cycle of operations?
(a) Introduction Stage
(b) Growth Stage
(c) Maturity Stage
(d) Decline Stage
QiiStakeholder Analysis
2 marks easy
What stakeholder group did Cafe Delight engage through targeted marketing campaigns and community initiatives?
(a) High-power, high-interest stakeholders
(b) Low-power, low-interest stakeholders
(c) Low-power, high-interest stakeholders
(d) High-power, low-interest stakeholders
QiiiBusiness Expansion Strategy
2 marks easy
What best describes Cafe Delight's initial expansion strategy when it expanded from one cafe to three in Mumbai?
(a) Aggressive price reduction
(b) Leveraging customer loyalty and word of mouth publicity
(c) Extensive online marketing
(d) Embracing global branding strategies
QivLevels of Strategic Management
2 marks easy
At which level of strategic management does Cafe Delight's transition from a pocket-friendly pricing model to a skimming strategy reflect?
(a) Corporate level
(b) Business level
(c) Functional level
(d) Operational level
QvCompetitive Strategy
2 marks easy
What type of strategy did Cafe Delight use to differentiate itself from competitors in the Indian restaurant industry?
(a) Cost leadership strategy
(b) Focused differentiation strategy
(c) Cost focus strategy
(d) Hybrid strategy
Q1Cost of Equity Calculation
2 marks easy
Case: Tiago Ltd is an all-equity company engaged in manufacturing of batteries for mobile vehicles. The company has been a major supplier to the industry with a promising and rising prices. The company was established 5 years ago with an initial capital of ₹ 1,00,000 and since then it has valued by PID taking the year end financial capital of ₹ 60,00,000. The company's shares are currently facing value ₹ 10 each. The company currently has undistributed reserves of ₹ 60,00,000. The company has been following consistent dividend policy of paying 40% of net profit as dividend. The reserves are reinvest…
Which of the following is best estimate of cost of equity for Tiago Ltd?
(A) 12.99%
(B) 11.99%
(C) 13.99%
(D) 14.99%
Q1Working Capital, Dividend Policy, Capital Budgeting
15 marks very hard
Question No. 1 is compulsory. Attempt any two questions out of the remaining three questions.
Q1Net Present Value, Capital Budgeting
5 marks medium
COMPUTE its NPV at the rate of 12% p.a. and comment to Secure Venture Capital Firm. Secure Venture Capital required to invest in any project if the NPV addition to shareholder wealth from the project is above ₹ 100 lakhs.
Q1Strategic Management - Business Strategy, Market Expansion,
0 marks hard
Case: Cafe Delight, a thriving restaurant chain known for its unique blend of Australian and Indian culinary experiences, embarked on a remarkable journey from its humble beginnings as a small café in Australia to becoming a renowned player in the Indian restaurant industry. In 2005, Cafe Delight was founded in Melbourne, Australia, by a visionary entrepreneur with a vision to bring the flavors of Australia and India together. The first café established in Powai, Mumbai, received incredible fan following, with menu items blending Australian coffee culture with Indian spices and flavors. As the brand…
Cafe Delight, a thriving restaurant chain known for its unique blend of Australian and Indian culinary experiences, embarked on a remarkable journey from its humble beginnings as a small café in Australia to becoming a renowned player in the Indian restaurant industry. This case explores the strategic evolution and operational challenges that Cafe Delight encountered during its expansion phase and its subsequent growth to over 25 stores.
Q1Strategic Management
10 marks very hard
Attempt any two questions out of the remaining three questions
Q2Debenture Issue Price Valuation
2 marks easy
Case: Tiago Ltd is an all-equity company engaged in manufacturing of batteries for mobile vehicles. The company has been a major supplier to the industry with a promising and rising prices. The company was established 5 years ago with an initial capital of ₹ 1,00,000 and since then it has valued by PID taking the year end financial capital of ₹ 60,00,000. The company's shares are currently facing value ₹ 10 each. The company currently has undistributed reserves of ₹ 60,00,000. The company has been following consistent dividend policy of paying 40% of net profit as dividend. The reserves are reinvest…
Which of the following is the most accurate measure of issue price of debentures?
(A) 100
(B) 96
(C) 90.58
(D) 95.88
Q2Cost of Debenture
2 marks easy
Royce & Co Ltd has issued 10% debentures of ₹ 1,00,000. Assumption is expected to be sold at 5% discount. It will also involve floatation debts of ₹ 15 per debenture. The debentures are redeemable at a premium of 10% after 10 years. Calculate the cost of debenture if the tax rate is 30%.
(A) 8.97%
(B) 9.56%
(C) 8.25%
(D) 10.12%
Q3Cost of Debentures Approximation
2 marks easy
Case: Tiago Ltd is an all-equity company engaged in manufacturing of batteries for mobile vehicles. The company has been a major supplier to the industry with a promising and rising prices. The company was established 5 years ago with an initial capital of ₹ 1,00,000 and since then it has valued by PID taking the year end financial capital of ₹ 60,00,000. The company's shares are currently facing value ₹ 10 each. The company currently has undistributed reserves of ₹ 60,00,000. The company has been following consistent dividend policy of paying 40% of net profit as dividend. The reserves are reinvest…
Which of the following is the best estimate of cost of debentures to be issued by the company? (Using approximation method)
(A) 7.64%
(B) 6.74%
(C) 4.64%
(D) 5.76%
Q3Degree of Operating Leverage
2 marks easy
Given Data: Sales is ₹ 10,00,000. Break even sales is ₹ 6,00,000. What is the Degree of operating leverage?
Q3Financial Analysis - Working Capital Management
8 marks hard
Cash Balance is assumed to remain same for next year. You are required to:
Q4Cost of Preference Shares
2 marks easy
Case: Tiago Ltd is an all-equity company engaged in manufacturing of batteries for mobile vehicles. The company has been a major supplier to the industry with a promising and rising prices. The company was established 5 years ago with an initial capital of ₹ 1,00,000 and since then it has valued by PID taking the year end financial capital of ₹ 60,00,000. The company's shares are currently facing value ₹ 10 each. The company currently has undistributed reserves of ₹ 60,00,000. The company has been following consistent dividend policy of paying 40% of net profit as dividend. The reserves are reinvest…
Calculate the cost of preference shares using approximation method
(A) 10.23%
(B) 11.23%
(C) 12.12%
(D) 12.22%
Q4Payback Period
1 marks easy
A project requires an initial investment of ₹ 20,000 and it would give annual cash inflow of ₹ 4,000. The useful life of the project is estimated to be 10 years. What is payback period/Approximation?
(A) 4 years
(B) 15%
(C) 25%
(D) 12%
Q4Financial Management - Investment Decisions, Working Capital
0 marks easy
Answer the following questions:
Q4b_altStrategic Alliances
5 marks medium
Strategic alliances are formed if they provide an advantage to all the parties in the alliance. Do you agree? Explain in brief the advantages and disadvantages of alliances.
Q5Weighted Average Cost of Capital
2 marks easy
Case: Tiago Ltd is an all-equity company engaged in manufacturing of batteries for mobile vehicles. The company has been a major supplier to the industry with a promising and rising prices. The company was established 5 years ago with an initial capital of ₹ 1,00,000 and since then it has valued by PID taking the year end financial capital of ₹ 60,00,000. The company's shares are currently facing value ₹ 10 each. The company currently has undistributed reserves of ₹ 60,00,000. The company has been following consistent dividend policy of paying 40% of net profit as dividend. The reserves are reinvest…
Which of the following best represents the overall cost of marginal capital to be raised?
(A) 11.76%
(B) 17.16%
(C) 16.17%
(D) 16.71%