NMIMS Sem 4 December 2024 Business management Assignments

Business: Ethics, Governance & Risk

Q1. “Business should conduct and govern themselves with integrity, and in a manner that is ethical, transparent and accountable” (Principle 1). Prepare an executive summary (in your own words) based on the disclosures given under Essential Indicators and Leadership Indicators, to showcase how the company is delivering on this principle from the Business Responsibility & Sustainability Report – 2023-24 (BRSR) of a company of your choice. You will find this report under Director’s Report section. Please select any ONE company that is listed as Large Cap. For this selection you must refer to the NSE’s Nifty 50 list by market cap. It is required that you include the name of the company in the brief introduction at the beginning. You must also go through the website of the company as well as its sustainability report, if available in public domain for relevant information on Principle 1. DO NOT copy paste.

Q2. Go through the ‘Management Discussion & Analysis’ section under the Director’s Report in the annual report (FY2023-24) of the company selected in question1 and prepare an executive summary  (in your own words) on the following two topics:

Opportunities and threat

Internal control systems & their adequacy

You must mention the name of the company. DO NOT copy paste.

Q3. As Head of Sales in a medium size consumer durables company selling cooling systems and air conditioners you have just bagged a Rs 75 lac worth of order from an out-of-town company, (their first order with you). The purchase executive of the client company agrees to confirm the order on the condition that you will agree to pay for his and his wife’s travel and stay in your city, while visiting your office for finalizing and signing of the contract.

3a. What do you think are the ethical dilemmas involved in this scenario?

3b. Describe the process you will adopt to resolve the dilemmas in this scenario?

Research Methodology

Q1. Samsung mobile phones have been facing a significant decline in market share over the past one year in India, despite the growing overall demand for Mobile Phones. The company’s sales have decreased by 12%, while competitors have seen a growth of 18% in the same period. This decline is affecting the company’s profitability and brand position in the market. This decline is occurring despite an overall increase in industry demand. The problem impacts the company’s profitability, brand strength, and market position. Which type of research study is above  and  what  can  be  the  research  questions  for  this  study?  Explain  which research design you will follow and why?

Q2. You are working in the HR department of Havells India; who have 15 state-of-the- art manufacturing plants spread across 8 locations in India. You have to study the relationship of Annual Increment (three levels 5%, 8% and 10%) and employee productivity (in units). Explain the design of experiment, independent, dependent and extraneous variable (assume any) for the study. What can be the potential threat to internal and external validity in this experiment?

Q3. In recent years, the financial landscape has witnessed significant transformations driven by advances in technology and the widespread adoption of online banking platforms. The emergence of online banking has revolutionized the way consumers engage with banks. With the increasing adoption of digital banking channels, it is crucial to assess how traditional banking methods are affected in terms of customer behavior,  service  demand,  Trust,  Security,  operational  adjustments  and  the response to the socio-demography of consumers.

a. Develop a comprehensive research plan to compare customer satisfaction and service efficiency between online and offline banking.

b. Develop a Structured questionnaire for this study.

Sales Management

1. A sales representative for a luxury watch brand is tasked with selling high-end timepieces to corporate clients and individual customers. How should the sales approach differ between these two types of clients, considering the diversity in their purchasing motivations? Recommend the most effective selling theory applicable to each scenario

2. A new tech startup is preparing to launch a cutting-edge smartwatch and needs to estimate its potential sales for the first year. How should the sales team approach forecasting these numbers, and what factors should they consider to make their projections as accurate as possible?

3. Read the case & answer the questions based on the case:

A mid-sized fashion retailer is developing its sales budget for the upcoming fiscal year. They need to account for seasonal trends, planned promotions, and expected changes in consumer behavior due to recent market shifts. The challenge is to create a realistic budget that aligns with their growth targets while staying within financial constraints.

Questions:

What factors should the retailer consider when estimating sales revenue for the upcoming year?

How can the retailer adjust their sales budget if unexpected economic changes occur during the year?

Corporate Finance

1. ABC Limited has equity with a market value of Rs. 20 Lacs and debt with a market value of Rs. 15 Lacs. The Balance sheet of the company showed the Capital Structure as under:

Capital Structure         BV

Share Capital  10,00,000

Debentures      5,00,000

Bank Loan      8,00,000

Cost of debt is 9%. The risk-free rate is 8% and the market rate is 18%. The beta of the company is 0.15. The firm pays no taxes.

What is ABC Limited’s debt to equity ratio?

What is ABC Limited’s weighted average cost of capital based on Market value as well as Book value? Answer up to 2 decimal places.

ABC Limited is in growing stage and soon the company will be under 35% tax bracket, in such a scenario the company is thinking to raise the debt up to 70%. Under these conditions, what will be the new DE ratio and the new cost of capital of the company?

What is the impact of change in DE ratio as above on the Company and why?

2. XYZ Ltd. is evaluating a new project proposal with a cash outlay of Rs. 80,000. Cash inflows are 25,000 , 28,200 , 32,000, 12,000, 15,000. The project is being funded entirely by a bank loan raised at an interest rate of 9% p.a. Currently there is no tax applicability to the firm. Evaluate the project using NPV and IRR methodologies.

The Board of Directors want a minimum of 12% as its rate of return on the project. Will the company take up the project? How will the situation be different if the company is subject to a tax of 25%?

3a. Maya bought a house of value Rs. 65,00,000. She got a loan of 80% of the value of the house from the bank. The bank offered her a loan for 10 years @ 8.5% interest payable annually. Calculate the equated annual payment to be made by her and draw up her annual payment schedule.

b) With the following data, calculate DSO and Debtor Turnover Ratio (in no. of times) for FY 2021-22. What is better for the company, a higher ratio or lower ratio? Give brief reasons? (In one line)

FY 2021-22     FY 2020-21

Sales                1,500,000        1,650,000

Receivables        30,000              35,000

60% of the sales are on credit basis

Entrepreneurship and Venture Capital Management

1. Imagine you are the CEO of a traditional retail company facing stiff competition from e-commerce giants. How can innovation play a role in revitalizing your business and staying competitive?

2. Your startup is looking to expand globally. How can you identify a venture capitalist with a global network and experience in international markets to support your growth aspirations?

3. You are a social entrepreneur working on improving access to clean water and sanitation in developing countries.

a. How can you collaborate with NGOs to create sustainable infrastructure and behavior change initiatives?

b. Explain the pros and cons of the appropriate model of social entrepreneurship.