NMIMS Sem 3 JUNE 2026 Operations Assignments
Corporate Finance
Q1 A mid-sized Indian manufacturing firm is experiencing declining profitability despite steady revenue growth. The CFO attributes this to escalating operational costs and inefficient asset utilization, compounded by a recent spike in short-term liabilities. The company is considering introducing automated inventory management and tighter receivables policies, but also faces pressure from suppliers demanding shorter payment cycles. The management team must ensure operational efficiency while maintaining liquidity, without compromising on the firm’s ongoing investment in quality improvements and expanding production capacity. Drawing on working capital management concepts, how should the firm apply cash flow forecasting, inventory control, and receivables management strategies to optimize liquidity and operational efficiency in this scenario? What specific actions would you recommend to balance short-term obligations and strategic growth initiatives?
Q2 (A) An Indian manufacturing firm is evaluating the purchase of a machine costing Rs.24,00,000 with the following expected operational data for 5 years: depreciation is calculated using the straight-line method over 5 years with zero salvage value. The machine will generate incremental cash inflows as per the table below. However, it requires an additional working capital investment of Rs.4,50,000 at the end of Year 1, recoverable fully at the end of Year 5. The firm’s cost of capital is 10% p.a. and corporate tax rate is 30%. Using the time value of money, determine whether the investment should be undertaken by calculating the Net Present Value (NPV) of all cash flows (including working capital impacts and tax shields on depreciation). Table: Year | Incremental Cash Inflows (before tax & depreciation) (Rs.): 1 | 7,00,000; 2 | 8,00,000; 3 | 9,80,000; 4 | 9,00,000; 5 | 8,50,000. Show all intermediate calculations in your answer.
Q2 (B) A firm has the following market values and component costs:
Component Market Value (Rs. lakh) Cost (Before Taxes)
Equity Share Capital Rs. 1050 15%
Preference Share Capital Rs. 150 10%
Long-term Secured Debt Rs. 750 9%
Short-term Unsecured Debt Rs. 100 11%
Corporate tax rate is 25%. The company is considering two alternative financing scenarios for a major expansion: Scenario A – increase secured debt by Rs. 250 lakh replacing an equal amount of equity; Scenario B – raise preference share capital by Rs. 100 lakh, reducing unsecured debt and equity equally. Assuming the respective costs remain unchanged and all weights are on the new market value proportions, calculate the WACC for each scenario and determine which scenario yields a lower WACC. Show all steps including tax adjustments and market value re-weighting.
Research Methodology
Q1 Rohit is tasked with comparing the effectiveness of various employee retention strategies as part of his research project. While conducting the literature review, he comes across contradictory studies – some find strong links between flexible work and retention, others see minimal impact. Rohit’s challenge is to objectively synthesise contrasting viewpoints and maintain balanced reporting while avoiding bias or publication bias. Apply the frameworks for critical literature review and ethical reporting to show how Rohit should handle contradictory findings. What steps can he take to ensure objectivity and present a comprehensive synthesis that upholds research integrity?
Q2 (A) A non-profit organization is conducting a field study to understand community participation dynamics during public health awareness events. The research director is torn between participant observation, which offers an insider’s view but risks researcher bias, and nonparticipant observation, which provides objectivity but may limit access to nuanced social contexts. Senior staff are also concerned about ethical integrity and the need for reliable data to influence policy recommendations. Each method presents unique advantages and dilemmas related to trust, data richness, and impartiality. Evaluate the appropriateness of participant versus nonparticipant observation in achieving the organization’s research goals. Critique both approaches by discussing how ethical, methodological, and practical concerns influence the reliability and depth of findings, and recommend the most suitable method with clear justification.
Q2 (B) A market research agency is hired to evaluate consumer perceptions of a new grocery store chain. The client suggests relying solely on brief paper-based surveys at the checkout counters, due to the ease of distribution and lack of digital infrastructure in the area. The agency, however, worries about manual data entry errors, low engagement, and incomplete responses. The client insists this is the most practical approach given budget constraints. Critique the client’s preference for exclusive use of paper-based questionnaires in this situation. What trade-offs must be considered between cost, data integrity, and research effectiveness? Justify an improved approach, considering the constraints, that maximizes both efficiency and data quality.
Strategic Applications of IoT and Big Data
1. A leading retail chain has launched smart shelf technology in its stores. Each shelf is equipped with weight sensors, RFID readers, and motion detectors to provide real-time inventory levels and consumer interaction data. However, the company faces issues with inaccurate data, sensor malfunctions, and unauthorized access to sensitive sales information. The IT director is pushing for a comprehensive IoT data lifecycle management plan that addresses accurate data acquisition, secure data transmission, processing, and responsible data archiving or deletion. Apply the IoT data lifecycle model to create a step-by-step management plan for the retail chain’s smart shelf system. How will you ensure data accuracy, integrity, security, and compliance at each stage from generation to deletion?
2 (A) A leading electronics manufacturer plans to transform its conventional factory into a smart factory using IoT and big data analytics. However, the company’s legacy equipment is deeply integrated into its workflow, making digital retrofitting challenging and costly. Leadership must decide whether to fully upgrade to smart machinery or pursue gradual integration via IoT gateways. Both approaches have implications for operational disruption, ROI, employee adaptability, and competitive agility in a rapidly evolving market. Evaluate the strategic merits and drawbacks of a complete versus phased IoT integration approach in this scenario. Considering factors such as operational efficiency, implementation cost, cultural resistance, and market responsiveness, justify which method you recommend and how it addresses both immediate and long-term business goals.
2 (B) A regional logistics company uses IoT and big data to track shipments across road, rail, and sea, employing geofencing, real-time diagnostics, and predictive route planning. Recently, an industry-wide push for data standardisation has presented both a challenge and an opportunity: their legacy devices are not fully compatible with new industry standards, risking data silos and integration issues with partners. Simultaneously, the company faces pressure to remain competitive and interoperable in the market. Assess the implications of legacy system incompatibility with industry standard IoT protocols for this logistics firm. Evaluate the possible strategies—such as immediate system overhaul, phased upgrades, or middleware solutions—and justify the most effective path forward considering cost, risk, and competitive positioning.
Project Management
Q1) An infrastructure company has secured a government contract to build a highway connecting rural and urban areas. The contract stipulates strict timelines and penalties for cost overruns. Key risks include volatile raw material prices, uncertain land acquisition costs, and changing regulatory requirements. Project managers are required to submit a comprehensive budget proposal, including robust contingency funds and justifications for their allocations to satisfy governmental oversight. Demonstrate how you would apply scenario analysis and probabilistic contingency planning alongside traditional cost estimation frameworks to manage financial risks in this project. How would you structure the justification for contingency reserves to ensure transparency and address stakeholder concerns?
2 (A) A global retail corporation has assigned you as the project manager for a new regional warehouse deployment project. After developing an initial Gantt chart and work breakdown structure, you realize that resource allocation is suboptimal and several tasks have unclear ownership, resulting in overlapping duties and delayed decision-making. The team is divided between relying on informal communication and introducing a RACI matrix, but some executives feel that too many formal tools may slow down progress. You must advise the leadership on how to move forward. Assess the potential impacts of introducing a RACI matrix in conjunction with WBS for this project. Critique both the argument for increased formalization versus the risk of bureaucratic slowdown, and justify your recommendation to the leadership team with supporting rationale.
2 (B) A pharmaceutical company’s new product development project is running behind schedule. Analysis reveals that project scheduling was conducted mainly by senior experts using personal judgment, with minimal reference to historical project data or standard estimation techniques. Conflicting stakeholder priorities, unanticipated regulatory hurdles, and supply chain issues have further derailed the timeline. The leadership team is divided over continuing with expert-driven estimation versus developing a formalized, data-driven estimation process. Evaluate the effectiveness of expert judgment-based time estimation versus a systematic, historical data-driven approach in the context of this delayed development project. Which method would you recommend to minimize future delays, considering the specific challenges of regulatory and supply chain uncertainties? Provide a justified critique of both perspectives.
