DETAILED SYLLABUS

BACHELOR OF BUSINESS STUDIES

(BBS)

PAPER NO. - 21

BUSINESS ENVIRONMENT

Objectives To get the students acquainted with the present economic environment in India To Enable the students understand the various issues involved in the macro management of the

economy

Contents

Unit I: Introduction

Concept of Economic Environment; Nature and scope Macro variables: Income, Employment,, Money Supply, Price Level, Interest rates, Saving and

Investment. Movement and Interrelationship between different variables Trends in Macro variables in India

Unit II: Institutional Framework of Economic Environment

Role of state; State Vs Markets Fiscal Policy; Concept & Implications Monetary Policy; Concept & Implications Commercial Policy; Concept & Implications

Unit III: Structure of Indian Economy

Growth Strategy in plans Industrial Policy Public sector & Private sector Monetary Policy Fiscal Policy Infrastructure Development Issues in Indian Economy: Poverty, Unemployment, Regional Dimensions, Productivity &

Modernisation, Environment & Sustainable Development, Human Resource Development

Unit IV: Open Economy Management

Balance of payments Role of Foreign Trade & Policy Role of Foreign Capital & Policy Exchange Rate Policy and Exchange Controls External Debt

Unit V: International Linkages

Globalisation: Concept, Implications, Policy Regional Integration: ELI, etc. World Trade Organization World Bank, IMF, etc. Other Emerging Economies: China, Russia

PAPER NO. - 22

ENTREPRENEURSHIP & SMALL BUSINESS

I Concept of Entrepreneurship

Definition of Entrepreneurship given by various economists - the ideal definition –The conceptual model of Entrepreneurship given by John Kao. Views given by Schampeter Walker & Drucker on Entrepreneurship - Entrepreneur and Manager -Enterprise and Entrepreneur. II Managing Creativity

Issues to be addressed in working the definition of creativity –Definition -Attributes of a creative person - Creative Thinking and Motivation -Managing Creativity - Organisational Actions that enhance and hinder Creativity -Organisational priorities and Creativity -Managerial responsibilities in a creative organisation.

III Entrepreneurtial Culture

Definition -Subcultures of Entrepreneurship – 1. Culture of Business 2. Business Ethics , 3. Productivity Culture. 4. Total Quality Culture 5. Organisation Culture Cultural Challenge -The Top Programme Characteristics of all Entrepreneur.

IV Small Business

Definition of Small Business - Composition of Small Business -Economic Contribution of Small Business.

Strategic Planning for Small Business -Steps in Strategic Planning -Develop a clear Mission Statement -Assess Organisation Strengths - Conduct a thorough Market Segment Analysis -Analyse Competitors - Create Company Goals -Formulate Strategic Options and Select appropriate Strategies (Focus, Cost leadership & Differentiation) - Translate Strategic Plans into Action Plans -Establish accurate Controls. Why Strategic Planning fails in Small Business.

V Forms of Ownership

Sole Proprietorship, Partnership & Corporation form of Organisation -Advantages and Disadvantages

Franchising- What is Franchising -Advantages and Disadvantages to Franchising - Franchise Evaluation Checklist –Franchise contracts -Types of Franchise arrangements.

VI Enterpreneurial Motivation Motivity Factors External & Internal- Achievement Motivity - Theory of David Mecclelland -Kakinada Experiment -Search for a business idea -Product idea -Selection of a product The Adoption Procedure -Product Innovation -Product Planning & Development Strategy -Steps in Product Planning & Development.

VII Buy an existing Business or Start a New Business

The advantages and disadvantages of starting your business –The advantages and disadvantages of buying all existing business – Critical areas to bc examined while buying all existing business - Determining the value of a business – Financial Record Keeping – Profit Planning & Cost Control.

VIII Role played by various Financial Instructions like IDBl, ICICI and IFCI

Special Role played by SIDBI and Commercial Banks – Approval of term loan applications by Commercial Banks – How to decide about a suitable agency for assistance Role played by SFCR and NSIC.

IX Government Policy on SSI Latest Policy developments – Incentives and Subsidies – How to start SSI – Preparation of feasibility Report.

Prescribed Books

Effective Small Business Management Scarborough & ZimmererEntrepreneurial Development Gupta & Srinivasan Small Business Management Pickle & Abrahamson Dynamics of Entrepreneurial Development & Management Vasanth Desai Creativity & Entrepreneurship John Kao

PAPER NO. - 23 (M1)

INTERNATIONAL MARKETING MANAGEMENT

1. Why exports? framework of international marketing Chap I, Terpestra Chap I, II Keegan

Intrafirm & environmental factors, social cultural, economic, political & legal aspects Chap III,IV,V,VI,VII, Cateora Difference between domestic marketing, international marketing, Definition & concept

Chap I,II,III,IV,V – Terpestra 2. Policy framework, Indian Trade Policy, Recent trends in Indian foreign trade

Economic Survey (latest) Chap I to V – Varshney & Bhattacharya 3. Basic steps in starting an export business – An overview of licencing regulations & Procedures. Handouts Chap 28, - Varshney & Bhattacharya 4. Product planning for export manufacturing firms & export houses.

XIII – Keegan XII – Cateora VI – Terpestra

5. Identifying foreign markets, market research overseas VIII – Cateora

VII – Terpestra VII – Keegan

6. Market entry Chap X- Terestra Chap X – Keegan

7. Distribution logistics for export, foreign sales agent selection & appointment XI – Terpestra

XV – Keegan XIV – Cateora

8. Promotion of products/ services abroad-overview, merchandising, Trade fairs/exhibition Chap – XII & XIII – Terpestra

Chap XVI – Cateora 9. Institutional infrastructure for export in India, Export Assistance. Chap 9, Varshney & Bhattacharya10. Marketing plan for export VIII – Terpestra

XVIII – Keegan XIV – Cateora

11. Export pricing-International terms, payment terms XVIII – Cateora XIV, XV – Terpestra XIV – Keegan

12. Introduction to Export documentation and procedures, framework, preshipment & postshipment documents Chap 2, 28 – Varshney & Bhattacharya

13. Export Finance Chap 22 – Varshney & Bhattacharya

14. Case Readings P- 24, 66, 378, 591, 643, 678 – Hans Muhlbacher

P- 623, 636, 641, 657 – Cateora

15. Role of ITPO in export promotion, quality control & pre-shipment inspection, Labelling/packing, Marking of consignments, Marine/ cargo insurance etc.

Chap 9, 11 – Varshney & Bhattacharya

Reference Readings:

1. International marketing management (Thirteenth edition) - Varshney & Bhattacharya 2. Multinational marketing management (V edition) - W.J. Keegan 3. International marketing (Eighth edition) - V. Terpestra, Ravi Saratnag 4. International marketing (X edition) - P. Cateora & Graham 5. International marketing: A global perspective - Hans Muhlbacher

Recommended Readings:

1. Terpestra - Chap XIX, XVIII2. Hans Muhlbacher – Chap I

PAPER NO. - 23 (F1)

INTERNATIONAL FINANCE

ESSENTIAL BACKGROUND 1. International Finance – Issues and Dimensions 2. International Monetary System 3. The Internationalisation Process 4. International Financial Flows and Balance of Payments Framework

FOREIGN EXCHANGE 5. Foreign exchange Market 6. Foreign Exchange Derivatives Markets 7. Determination of Exchange Rates 8. Empirical Evidence on Exchange Rate Determination

FOREIGN EXCHANGE RISK MANAGEMENT 9. Financial Accounting and Foreign Exchange 10. Managing Accounting Exposure11. Measuring Economic Exposure 12. Managing Economic Exposure

FOREIGN INVESTMENT ANALYSIS 13. International Portfolio Investment 14. Capital budgeting for the Multinational Corporation 15. Cost of capital for Foreign Investments 16. Managing Political Risk

MULTINATIONAL WORKING CAPITAL MANAGEMENT17. Short –Term Financing 18. Financing Foreign Trade 19. Current Asset Management for the Multinational 20. Multinational Financial System

Readings:

1. Multinational Financial Management - Alan C. Shapiro 2. International Finance: The Markets and Financial Management of Multinational Business - Maurice D. levi 3. Foreign Exchange, International Finance - A.V. Rajwada and Risk Management 4. The Convertible Rupee - Bibek Debroy

DEIAILED SYLLABUS PLAN

I ESSENTIAL BACKGROUND

1. International Finance – Issues and Dimensions Importance of International Finance, Major Country Groupings, The Finance Function, Present Global Scenario and Emerging Challenges 2. International Monetary System History of International Monetary System, Exchange Rate Regimes, Fixed

Exchange Rate, Flexible Exchange Rate, Hybrid Systems of Exchange Rates, Theories of Exchange Rate Volatility, International Financial Institutions, European Monetary System, EMU and Euro.

3. The Internationalisation Process

Foreign Direct Investment, Internationalization and Firm-specific Advantages, location-specific Advantages, Product Life Cycle Concept, International Strategy

4. International Financial Flows and Balance of Payments Framework International Financial Flows -Sources and Causes, Balance of Payments Framework, International Flow of Goods, Services and Capital, Trends in India's Balance of Payments, Coping up with the Current-Account Deficit. Introduction to Capital Account Convertibility.

II FOREIGN EXCHANGE 5. Foreign Exchange Market

The Forex Market: Participants, Information and Communication Systems, Payment Systems, Market Terms and ISO Codes, Cash and Spot Exchange Markets, Inter-bank Market and Mechanics of Currency Trading, Delivery Dates and Procedures, Bank Clearing and Settlement, Conventions for Spot Exchange quotations, Direct vs. Indirect Exchange and Cross Exchange Rates, Forward Market Characteristics, Forward Premiums and Discounts, Varieties of Forward Contract, Forward Rate Agreements, Conventions for Forward Quotations- Terms and Conditions Applicable, Arbitrage, Forex Market In India -Features and Recent Trends, LERMS, FEMA

6. Foreign Exchange Derivatives Markets Derivatives, Currency and Interest Rate Futures and their Applications, Currency Swaps, link between Futures and Forward Markets, Foreign Currency and Interest Rate Options, Option Pricing Models, Difference between Forwards, Futures and Options, Interest rate and currency swaps.

7. Determination of Exchange Rates Basic Relationships, Effect of Central Bank Intervention, Equilibrium Exchange Rates, Influences on Currency's Supply and Demand, Conditions for Stability of Exchange Rates, Implications of Instability

8. Empirical Evidence on Exchange Rate Determination Theories of Exchange Rates, Purchasing Power Parity, Interest Rate Parity, Fisher Effect, International Fisher Effect, Expectations Theory and Asset Market Model, The Chartist Approach, Inflation Risk and Its Impact on Financial Markets, Exchange Rate Forecasting.

III FOREIGN EXCHANGE RISK MANAGEMENT

9. Financial Accounting and Foreign Exchange Alternative Currency Translation Methods, Statement of Financial Accounting Standards No.8, Statement of Financial Accounting Standards No.52, Transaction Exposure, Accounting Practices and Economic Reality

10.Managing Accounting Exposure Managing Transaction Exposure, Managing Translation Exposure, Designing a Hedging Strategy

11. Measuring Economic Exposure Foreign Exchange Risk and Economic Exposure, Identifying Economic Exposure, Calculating Economic Exposure, Operational Measure of Exchange Risk

12. Managing Economic Exposure Operating Exposure management, Exchange Risk Exposure Management through Marketing Management, Exchange Risk Exposure Management through Financial Management, Exchange Risk Exposure Management through Production Management.

IV INTERNATIONAL INVESTMENT MANAGEMENT

13. International Portfolio InvestmentIssues in Foreign Investment Analysis, International Bond Investing, Strategies for Direct Investment, Bond Investment & Portfolio Investment, Optimal International Asset Allocation

14. Capital budgeting for the Multinational Corporation Capital Budgeting for FDI, Foreign Project Appraisal and Evaluation – NPV and APV

Approaches, Measuring Total Return from Foreign Investment, Reinvestment, and Repatriation of Funds, Corporate Strategy and Joint Ventures, Growth Options and Project Evaluation

15.Cost of Capital for Foreign Investments Weighted Cost of Capital for Foreign Projects, All Equity Cost of Capital for Foreign Projects, Discounting Rates for Foreign Investments.

16.Managing Political Risk

Measuring Political Risk, Country Risk Analysis, Managing Political Risk, Post- expropriation Policies

V MULTINATIONAL WORKING CAPITAL MANAGEMENT

17. Short -Term Financing To analyse five aspects of developing a short-term overseas financing strategy Identifying the key factors, formulating and evaluating objectives, describing available short-term borrowing options, developing a methodology for calculating and comparing the effective after-tax dollar costs of these alternatives and integrating the borrowing strategy with exposure management considerations.

18. Financing Foreign Trade Payment Term in Foreign Trade, Documents In International Trade, Financing Techniques in International Trade, Government Sources of Export Financing and Credit Insurance

19. Current Asset Management for the Multinational International Cash Management, Accounts Receivables Management, Inventory Management

20. Multinational Financial System Value of the Multinational Financial System, Inter-company Fund-Flow Mechanisms: Costs and Benefits, Designing a Global Remittance Policy, Transfer Pricing and Tax Evasion.

PAPER NO. 23 (H1)

ADVANCED HUMAN RESOURCE MANAGEMENT

I. Trends influencing nature of work and the workforce in 2000-2005 – Impact on HRM function, Developing policies in the new framework. Generating personnel manual.

II. The human side of Enterprise – Organisational goals and human needs, problems and supervision and motivation at work, models for HRD, line and staff aspects.

III. Human Resource Planning – Job Analysis-Job Design- Human Resource Planning Process, Designing and Managing Human Resource Plans, Long and short term Perspective, Forecasting Manpower Supply and Demand Tools, Methods and Techniques used in HRD.

IV. Employees Recruitment – Internal Recruitment, External Recruitment, Recruitment Strategy.

V. Employees Testing, interviewing and selection- The selection process, role of scientific selections in Personnel Management, Manpower Planning and Organizational Structure.

- Selection Policy and Strategy, Steps of Systematic Selection, Job Description, Jab Specification, Job Advertisement

- Selection Tests- Intelligence Aptitude, Personality- Psychometric Testing- Sampling, Validity, Reliability - Group Selection Methods- Assessment Centres - Interview Techniques and Skills - Common errors in interviewing- Ethical and Legal Issues

VI. Performance Development System

- Objecting of performance appraisal - Issues and Problems in performance appraisal - Historical review of performance appraisal - Methods of performance appraisal - Appraisal forms and formats - Measurements is performance appraisal - Appraisal Communication - Appraisal interview - Application feedback and counseling - Implications of management system on performance appraisal - Legal and Ethical perspectives in performance appraisal

VII. Career Management- Overview, factors affecting career choice, career management guidelines, managing promotions and transfers, managing separations .

VIII. TQM and HRM

- An overview - Deming 14 points - Juran Trilogy - Crosby Zero Defect - TQM concept - Comparison with traditional quality - Implementation of TQM- Kaizon- concept of elimination - Kaizon approach and benefit

IX. Strategic Human Resource Management

- Introduction of Strategic Management

- The importance of Strategic HR Management - Strategic Alignment - Organisational culture and HR strategies - Strategic issues in HRM- Planning for 2004

X. International issues in HRM- Managing inter- country differences

- Computer application in personnel

Readings

J.M. Juran - TQMMunappa & Sayidain Tata McGraw Hill - Personal Management C.B. Memoria Himalaya Pub. House - Personal Management Gary Dessler Prentice Hall - Personal/ HRMLeap & Crino Mcmillan Pub. - Personal/ HRMPareek & Rao Oxford IBH - Designers Managing Brayn Livey Pitman - H.R. Planning Edwin B. Flippo Mcgraw Hill - Corporate P.M. Personal Management

PAPER NO. 24 (M2)

SALES & DISTRIBUTION MANAGEMENT

1. Growing challenges of sales & distribution - Sales Management, objections of sales management Cundiff –1

2. Approaches to territory coverage Cundiff –22 - Concept of sales territory

- Reasons for establishing sales territory - Procedure for establishing sales territory

3. Planning, profiling recruitment, selection, training & Cundiff-10 development & control

- Recruitment sources Cundiff-11- Selection Cundiff-12- Training & Development Cundiff-13

- Compensation Cundiff-16 - Controlling Cundiff-19

4. The channel system - Rationale for Marketing channel structures Stern –1 - Composition of marketing channels

- Channel Environment Stern –2

1. Rationale for Intermediaress - Retailers structure (Types) Stern – 3

Retail marketing strategy Retail Marketing Mix

- Wholsalers – rationle types Stern –4

6. Dealers selection development & motivation SL Gupta –14 7. Manufacturer dealer conflict Stern –11

8. Distribution – Basic concepts SL Gupta – 10 Transportations or Stern – 5

Inventory SL Gupta – 11 Warehousing

9. Managing logistics SL Gupta – 11

10. Sales audit (an introduction) Cundiff – 23

READINGS:

1. Cundiff & Still & Govani – Sales Management 2. Smith R. – Sales Management 3. SL Gupta – Sales Distribution Management 4. Stern – Management in Marketing Channels

PAPER NO. – 24 (F2)

CAPITAL MARKETS & SECURITY ANALYSIS

1. Investment Categories & the Investment Process

(a) Markets and their functions – Structure of Indian Financial Markets. Chapter 1 & 2 MYK. (b) Major Players in the Capital Market – Brokers, custodial services, depository system, securities sending scheme. Stock market trading – BSE, NSE, OTCE I MYK Chapter 7 & 8 and Notes.(c) Types of instruments in the Indian market – Equity, preference shares, debentures/bonds, warrants/options, convertible securities, fixed deposits, derivatives i.e. futures, asset securitisation , commercial paper, ADRS/GDRS. Chapter 18 MYK, Relevant part Chapter 9 MYK + Notes.

2. Regulation of the Capital Market in India.(a) Securities & contracts regulation act.(b) SEBI

Relevant parts of Chapter 4 MYK.

3. Security Valuation & Risk Analysis.(a) Fundamental Approach to valuation.

Three stage stock valuation.Notes from older edition of F&J.

(b) Systematic & thesystematic risk.Expected return & risk.

Chapter 3 F&J.

4. Common Stock Analysis. (a) Economic Analysis – Economic

Forecasting & stock investment decision Forecasting techniques.

Chapter 4 F&J.(b) Industry Analysis :- Classification, economy industry, key factors in

analysis, industry life cycle, techniques for evaluation. Chapter 5 F&J.(c) Company Analysis – Internal information, detailed analysis, external

information. Chapter 6 F&J.

(d) Forecasting Company Earnings : Earnings model, market share/profit margin approach, forecast of revenue & expenses. Chapter 7 F&J.(e) Company Analysis :- Application of correlation & regression forecasting revenue 7 expenses. Trend analysis, decision trees, simulation, dividends. Chapter 8 F&J.

1. Bond Analysis (a) Risk and Return Chapter 9 F&J. (b) Unsystematic Risk Chapter 10 F&J. (c) Bond management Strategies Chapter 11 F&J.

2. Introduction to Computerised Financial Analysis & Forecasting [ Complex problems using spreadhseets].

3. Latest Development in the Indian financial market – Trading in Derivatives Part Chapter .8 MYK.

BOOKS :-

1. Security Analysis & Portfolio Management by - Donald E. Fischer & Ronald J. Jordan 6th Edition.2. Indian Financial System by - M.Y. Khan 2nd Edition.

PAPER NO. – 24 (H2)

INDUSTRIAL RELATIONS

I. Concept and Importance of Industrial Relations- The various approaches - The system Model - The pluristic approach - Webers social action approach - The Indian IR framework

Management of Industrial Relationsa) Role of Management b) Profile of Indian managers c) Styles of management and managerial attitudes

I. Trade Unions- The Trade Unions- Trade unionism in India- Emergence, history, growth of trade unionism in India- Structure of trade unions- Problems of trade unionism in India- White- collar unionism, rural unionism- Rise and status of trade unions in other countries- Management of trade unions

II. Work Place Relations- Role of supervision- Attitudinal dimension- Behavioural indicators- Personal practices

III. Workers Participation- Conceptual aspects- Practice of workers participation- self management systems- Member of management bodies, work councils, joint management councils.

IV. Collective Bargaining- Concept and Importance- Process of Bargaining- Goals and Strategy in Bargaining- Problems of Collective Bargaining

V. Industrial Disputes- Theoretical Framework- Causes of Industrial Disputes- Types of Disputes

VI. Grievance- Causes- Grievance Procedure

VII. Employee Discipline, Absenteeism and Turnover

VIII. Principle of Natural Justice- Meaning and Scope- Application of Principles of Natural Justice in Disciplinary- Proceedings

- Violation of Principles of Natural Justice

IX. Misconduct- Misconduct vs Misdemeanor- Misconduct vs Carelessness- Scope of Misconduct- Misconduct vs Dismissal- Acts of Misconduct

Readings

B.R.Patil - Collective Bargaining- Perspective and PracticeS.C.Srivastava - Industrial Relations and Labour LawsDunlop John - Industrial Relation SystemCharles A Myers & Kanappan S - Industrial Relations in India

PAPER NO. 25 (M3)

ADVERTISING AND SALES PROMOTION MANAGEMENT

1. ADVERTISING – NEED & IMPORTANCE CHAP 1 Definition & growth of modern advertising Advertising & the marketing mix Types & classification of advertisement Advertising Spiral 2. SOCIAL & ECONOMIC ASPECTS OF ADVERTISING CHAP 19

3. MARKETING COMMUNICATION MODELSAIDA, Hierarchy of Effect, Innovation Adoption Model, Action First Model, Quick Decision Model

4. PLANNING FRAMEWORK OF PROMOTIONAL SRATEGY CHAP 2, 3 & 4

5. HOW ADVERTISING WORKS CHAP 5 Exposure, Salience, Familiarity, Low involvement, Central route & peripheral route & Cognitive learning

6. POSITIONING STRATEGIES CHAP 6

7. ASSOCIATING FEELINGS WITH A BRAND CHAP 9 8. DEVELOPING BRAND PERSONALITY CHAP 10

9. CREATING COPY STRATEGIES CHAP 12&13 Rational & emotional approaches Selection of an endorser Creative strategy & style- brand image, execution, USP, common touch & Entertainment Message design strategy Format & formulae for presentation of appeals (slice of life, testimonials, etc.) Different types of copy

10. ART & LAYOUT OF AN ADVERTISEMENT CHAP 15 Principles of design Layout stages Difference in designing of television, audio & print advertisement

11. MEDIA PLANNING & SCHEDULING CHAP 16 (Pg551-555) Introduction to broadcast & non -broadcast media Budgeting decision rule: Percentage of sales method, objective to task method,

competitive parity, & all you can afford Key factors influencing media planning Media decisions: media class, media vehicle & media option Scheduling: flighting, pulsing, & continuous

12. MEASURING ADVERTISING EFFECTIVENESS CHAP 14 Introduction to pr-testing & post-testing techniques- paired comparison, portfolio tests, in-

home projection, trailer tests, theater tests, sales experiment, eye movement, coupon response, telemeter, audiometer, recall tests & people meter.

*13. MANAGEMENT OF SALES PROMOTION CHAP 18 Importance & need for sales promotion Planning for consumer schemes & contests Different types of consumer schemes Planning for sales force contests

*14. MANAGING SALES DISPLAYS (HANDOUT) Importance of sales displays Principles of display Different types of sales display

NOTE: APPLIED CASES WOULD BE TAKEN UP IN CLASS

READING LIST:

1. ADVERTISING MANAGEMENT: AAKER, MYERS & BATRA; PRENTICE HALL2. * ADVERTISING PRINCIPLES & PRACTISE : WELLS & BURNETT ; PRENTICE HALL

PAPER NO. 25 (F3)

MERCHANT BANKING & FINANCIAL SERVICES

Merchant Banking : Introduction, evolution of merchant banking Types of Merchant Bankers, Activities undertaken by different types of merchant bankers SEBI guidelines for Merchant Bankers Registration, obligations and responsibilities of Lead Managers

Issue Management : Public Issue : classification of companies, eligibility, issue pricing, promoter’s contribution,

minimum public offer, prospectus, allotment, preferential allotment, private placement, Book Building process,

Right Issue : promoter’s contribution, minimum subscription, advertisements, contents of offer document

Bought out Deals Pricing of issue of equity shares Preparing for Public & Right Issues Issue Marketing Post issue work & obligations

Merger & Acquisions : Concept of merger and takeovers, reasons for merger & acquisitions, Steps involved in merger and

amalgamation

Sources of Finance

Long Term Finance: Term Loans

Short term/working capital finance : Concept of working capital and working capital gap Methods to compute permissible bank finance : methods suggested by Tandon Committee; turnover

method; cash flow method.

Consortium Finance

Loan Syndication : Concept, Role of Merchant banker in loan syndication service

Project Appraisal :

Project life cycle Evaluation of projects Social cost benefit analysis Capital cost of the project Financial Projections

Financial Services

Leasing & Hire Purchase: Concept of lease & hire purchase Distinction between lease and hire purchase

Methods and advantages of leasing, benefits of lease to lessor and lessee Lease versus buy or borrow decision

Venture capital: Main features, venture capital process, difference between venture capital finance and conventional

sources of finance, Disinvestment avenues

Factoring & Forfeiting: Concept, distinction between factoring and forfeiting Benefits of factoring, impact of factoring on balance sheet

Credit Rating : Process, evaluation of a company Benefits of credit rating to investors, reliance on credit rating for investment decision

Insurance Services : Economics of Insurance, life insurance, general insurance, reinsurance Insurance Sector Reforms; Liberalisation of Insurance Sector Entry norms for insurance sector, Investment by Insurance companies, Exposure norms;

Suggested Readings :

A Manual of Merchant Banking : - J.C. Verma; Bharat Law HouseManual of SEBI - Bharat Law HouseFinancial Management : - Prasanna Chandra; Tata Mc Graw HillIndian Financial System : - M Y Khan; Tata Mc Graw HillFinancial Management : - I. M. Pandey; Vikas PublishingIndian Financial System : - Machhirajju; Vikas PublishingFinancial Services : - M Y Khan; Tata McGraw HillProject Financing : - H P S Pahwa; Bharat Law HouseSEBI & Corporate Laws : - Various issues

PAPER NO. 25 (H3)

INDUSTRIAL AND LABOUR LEGISLATION

The Payment of Wages Act, 1936- Definition- Rules for payment of wages & deductions from wage.

The Minimum Wages Act 1948- Fixing of minimum wages, procedure for raising minimum wage- concept of living wages, fair wage and minimum wage.

The Factories Act, 1948- Definition- Approval, Licensing and registration of factories- Notice by occupier, Health and Welfare measures- weekly holidays. Leave with wages, Employment of women and young person- Penalties and returns.

The Workmen’s Compensation Act 1923- Definition- Rules regarding workmen’s compensation- Defence available to employer and employees.

The Employee’s State Insurance Act 1948- Definition- Applicability of the Act- Insurable Workmen- Contribution Benefit- Penalties.

The Employee’s Provident Fund and Miscellaneous Provisions Act, 1952 and Employees Family Pension Scheme- definition- coverage of the organization and employees under the Act- Employee’s Provident Fund and Pension Fund Scheme- Calculation of contribution, withdrawal of provident fund amount- penalties of offence.

The Payment of Gratuity act, 1972- Definition – Scope and coverage of the act- Eligibility criteria- calculation of gratuity- nomination. The Payment of Bonus Act 1965- Applicability of Act- coverage of employee- calculation of bonus, Rate of payable bonus- available surplus- allocable surplus.

The Industrial Employment (standing order) Act 1946- scope and coverage of the Act- concept of standing order- its certification process- modification- interpretation and enforcement of standing orders.

The Trade Union Act 1926. Statutory Definition- Registration of TU, Immunity granted to Registered Trade Union- Recognition of TU.

The Industrial Disputes Act, 1947- Definition- Persuasive, conciliation and voluntary process for the settlement of industrial disputes- power of the govt. under ID Act- Instrument of economic coercion- strike and lock out, lay off and retrenchment, transfer and closures- discharge and dismissal- management’s prerogative during pendency of proceeding (Sec.33)

Industrial Relation of Labour laws - SC SrivastavsaAnalytical handbook of labour laws - PHDChamber of Commerce and IndustryIndustrial Law -Elements of Industrial Law - ND KapoorUnusual Collective Agreements - C.S.Venkataraman

PAPER NO. 26

BUSINESS POLICY AND STRATEGY

1. NATURE & IMPORTANCE OF BUSINESS POLICY & STRATEGY CHAP 1&2 Introduction to the strategic management process Strategic Management & related concepts Characteristics of corporate, business & functional level strategic management Decisions Introduction to models of strategic management- Linear, Adaptive & Interpretive McKinsey's 7S Framework & its importance

2. ORGANISATION & ITS SOCIAL RESPONSIBILITY CHAP 2 Need for social responsibility: Environmental impact on organizations policy & Strategy, Organizations dependence on the environment Guidelines to corporate for undertaking corporate social responsibility

3. MANAGERIAL & ORGANISATIONAL STYLES (HANDOUT FROM STENIER) Approaches to study of organisational styles- Managerial Job Approach, Management Process Approach, Managerial Working Roles Approach Individual Managerial Styles- Tannebaum & Schmidt Continuum, Shotgun, Tactician & Bystander Manager, Managerial styles under competition Organizational styles, Strategy related styles- Reactors, Prospectors, Defenders, Analysers

4. COMPANY’S MISSION STATEMENT CHAP 3 Need for a mission statement Criteria for evaluating a mission statement- Goal, Process & Input Formulation of the mission statement- Drucker’s Performance Area, Bennis’s Core Problem & other mission statement components

5. ANALYSIS OF COMPANY’S EXTERNAL ENVIRONMENT CHAP 4 & 5 Analysis of remote environment Analysis of specific environment- Michael E. Porter’s 5 Forces Model

6. ANALYSIS OF INTERNAL ENVIRONMENT CHAP 8 Importance of organization’s capabilities, competitive advantage and core competence Michael E. Porter’s Value Chain Analysis Internal audit & capabilities assessment profile

7. GLOBALISATION OF A FIRM CHAP 6 Complexities of globalisation Globalisation of the mission statement

8. FORMULATION OF COMPETITIVE STRATEGIES CHAP 8&9 Perspectives to competition- industry, marketing & strategic group Competitive Strategies- Miles & Snow Adaptive Strategies, Derek’s Abbel’s Business Definition Framework, Michael E. Porter’s Generic Competitive Strategies Implementing Competitive Strategies- offensive & defensive moves

9. FORMULATING CORPORATE STRATEGIES CHAP 9 Introduction to strategies of growth, stability and renewal.

Types of growth strategies – concentrated growth, product development, integration, diversification, international expansion (multi domestic approach, franchising, licensing and joint ventures).Types of renewal strategies – retrenchment and turnaround.

10. STRATEGIC ANALYSIS AND CHOICE CHAP 10 Strategic gap analyses, Portfolio analyses – BCG, GE, Product Market evolution matrix, experience curve, directional policy matrix, life cycle portfolio matrix. Grand Strategy Selection Matrix Behavioral Considerations affecting choice of strategy

11 IMPLEMENTING & OPERATIONALISING STRATEGIC CHOICE CHAP 11&12 Impact of structure, culture & leadership Functional strategies & their link with business level strategies

12. STRATEGIC CONTRL & EVALUATION CHAP 13 Strategic surveillance, special alert control & premise control Implementing control Introduction to operational control

NOTE: CASES WOULD BE UDERTAKEN COVERING THE COURSE

READING LIST:

1. J.A. Pearce & R.B. Robinson- Strategic Management Prentice Hall Publication2. P.K. Ghosh – Business Policy Strategic Planning Management, Sultan Chand3. Strickland – Strategic Management 4. Jausch & Glueck – Business Policy & Strategic Management

PAPER NO. -27

DESIGN AND MANAGEMENT OF INFORMATION SYSTEM

Introduction to management, Information and system. Requirement and receipt analysis of information. Information evaluation, prioritisation and characteristics. ABC, FNS and VED analysis for designing effective and economical information control system. Business Information systems, need of having IS, Introduction to business systems: payroll, Inventory Control, Financial Accounting, sales order processing, banks and manufacturing plants etc. evolution of IS, key components of IS, management of Information resources, process of Decision making and value of information, characteristics of effective IS, impact of IS on different management levels.

Design methodologies & Techniques: system development life cycle, various phases & user involvement: preliminary survey & feasibility study, system analysis, conceptual & detailed system design, implementation & devaluation, Systems Approach Management – use of tools like DFD, DD etc.. Cost benefit analysis for evaluating and selection of candidate information system.

Integrated Information systems in an organisation, use of Database for integration, across functional areas.

Modern trends in MIS. Selection of hardware and Software for the selected candidate system.

Introduction to Decision support systems, expert systems and Artificial Intelligence, Robotics.

Top management and MIS; Corporate planning for MIS, The MIS strategic grid; Growth of MIS in an organization; CSF theory for Information need analysis; Issues related to centralization and Decentralization of MIS, charge-out systems for MI services.

Security and hazard mitigation.

1. Murdick, Robert G. Ross, Joel E and claggert “Information systems for modern management”, prictice Hall.

2. Suresh K. Basandra: Management Information System 3. Lucas Henery C : Information system concepts for management. 4. Jeffry A. Hoffer, Joey F. Gworge, Joseph S. Valacich: Modern Systems Analysis & Design 5. Elias M. Awad: System Analysis and Design:

Classes Required: 4 Theory + Tutorial

PAPER NO. - 28 (M4)

ELEMENTS OF CONSUMER BEHAVIOUR

1. CONSUMER BEHAVIOR: NATURE, SCOPE & APPLICATION CHAP 1 Importance of Consumer Behavior in marketing decisions

Characteristics of Consumer Behavior Role of Consumer Research

2. MARKET SEGMENTATION CHAP 3

Bases of Segmentation VALS 2 Segmentation profile Targeting &Implementing Segmentation Strategies

3. CONSUMER NEEDS & MOTIVATION CHAP 4 Characteristics of Motivation Arousal of Motives Theories of Needs & Motivation : Maslow’s hierarchy of needs, McLelland’s APA Theory, Murray’s List of Psychogenic Needs, Bayton’s Classification of Motives Self Concept & its importance Types of involvement

4. PERSONALITY & CONSUMER BEHAVIOR CHAP 5 Importance of Personality Theories of Personality: Freudian Theory, Jungian Theory, Neo-Freudian Theory, Trait Theory, Theory of Self Images Role of self consciousness

5. CONSUMER PERCEPTION CHAP 6 Concept of Absolute Threshold Limit, Differential Threshold Limit & Subliminal Perception Perceptual Process: selection, organization & interpretation

6. LEARNING & CONSUMER INVOLVEMENT CHAP 7 Importance of learning on consumer behavior Learning Theories: Classical Conditioning, Instrumental Conditioning, Cognitive learning &

Involvement Theory

7. CONSUMER ATTITUDES CHAP 8 & 9 Formation of attitudes Functions performed by attitudes Models of Attitudes: Tri-component model, Multi-attribute model, Attitude towards Advertisement model, Attribution Theory

8. GROUP DYNAMICS & CONSUMER REFERENCE GROUPS CHAP 11 Different types of reference groups Factors affecting reference group influence Reference group influence on products & brands Application of reference groups

9. FAMILY & CONSUMER BEHAVIOR CHAP 12 Consumer Socialisation Process Consumer roles within a family Purchase influences and role played by children

Family Life Cycle

10. SOCIAL CLASS & CONSUMER BEHAVIOR CHAP 13 Determinants of social class Measuring & characteristics of social class

11. CULTURE & CONSUMER BEHAVIOR CHAP 14,15 &16 Characteristics of culture Core values held by society & their influence on consumer behavior Introduction to sub-cultural & cross-cultural influences

12. OPINION LEADERSHIP PROCESS CHAP 17 Characteristics & needs of opinion leaders & opinion receivers Interpersonal flow of communication

13. DIFFUSION OF INNOVATION CHAP 18 Definition of innovation Product characteristics influencing diffusion Resistance to innovation Adoption process

14. CONSUMER DECISION MAKING PROCESS CHAP 19 Process- Problem Recognition, Pre-purchase search influences, Information Evaluation, Purchase decision (Compensatory decision rule, Conjunctive decision Rule, Lexicographic rule, Affect Referral, Disjunctive rule) Post-purchase evaluation

*15. SITUATIONAL INFLUENCES CHAP 7 16. MODELS OF COSUMER DECISION MAKING (ANNEXURE) Nicosia Model, Howard-Sheth Model, Howard- Sheth Family Decision Making Model, Engel, Kollat & Blackwell Model, Sheth Newman Gross Model of Consumer values

NOTE: CASES & APPLICATION TO MARKETING WILL BE TAUGHT WITH RESPECT TO EACH TOPIC

READING LIST:

1. CONSUMER BEHAVIOR SCHIFFMAN & KANUK, PRENTICE HALL PUBLICATION2. *CONSUMER BEHAVIOR, ENGEL, BLACKWELL & MINIARD, THRYDEN PRESS

INTERNATIONAL EDITION

PAPER NO. - 28 (F4)

SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

[Capital markets and Security Analysis Essential Prerequisite] 1. Futures & Options

(a) Options

Rationale of Futures & Options, put & call, option value determination, pricing strategies, Black Scholes model.

(b) Warrants & Convertable

(c) Futures

Stock index futures, portfolio strategies, Fixed Income securities, Long term securities.

2. Technical Analysis & the Efficient Market Theory (a) Technical Analysis -Market Indicators, Forecasting individual stock performance, charts.

(b) Efficient market theory -Random walk and Efficient market Hypothesis.

3. Portfolio Analysis -Traditional, Markowitz Optimisation, Diversification.

4. Portfolio Selection -Risk & Preferences, Simple Sharp portfolio optimisation, significance of Beta, Traditional portfolio selection.

5. Capital Market Theory -CAPM, Arbitrage pricing theory.

6. Managed Portfolios & their Evaluation -Type of mutual Funds, Advantage of managed portfolios. SEBI Guidelines relating to PMS.

7. The Effect of Taxes on Investment strategy -The tax structure, Capital Gains & Losses, After Tax Returns, Effect of Lockins, Effect of Taxes on securities prices.

8. Introduction to computerised portfolio analysis and options analysis.

9. Stock Exchange Game.

Readings

1. Security Analysis and Portfolio Management - Donald E Fischer and Ronald Jorden Text Book (Prentice Hall of India Pvt. Ltd. ) 2. ND Vohra & BR Bagri - Futures and Options 3. Indian Financial System - HR Machiraju4. Indian Financial System - MY Khan (if in print)

PAPER NO. - 29 (M5)

CREATIVE SELLING

TOPIC

1) Introduction - Sales management, personal selling & salesmanship C-2

- Personal selling & the marketing concept - Personal selling in a customer driven economy - Myths of selling

2) Sales person RB-1,2 - His functions, role in society C-6

- Quality of a successful sales person - Different selling situation

3a) Why people buy - Factors influencing customer behaviour RB-4

(Maslow’s hierarchy)- Social influences that shape buyer behaviour

(Family and reference group influence) - Buying motives (rational, emotional) - Product adoption cycle

b) Theories of selling

4) Methods of persuasion – Psychology of selling RB-5- Principles of contingency benefits - Principles of suggestions - Logical reasoning

5) Selling Process a) - Acquiring product information preapproach RB-8

- Knowing your product- Know your company- Know your competition

b) Identifying and qualifying prospects RB-6- Sources of prospects - Conditoins of qualification

c) Opening a sale (approach) RB-9- Methods of approaching - Making appointment

d) Progress of a sale (presentation) RB-10,11- Presentation styles - Presentation strategies

e) Sales demonstration RB-11- Importance of sales demonstration - What to demonstrate - Planning effective demonstrations - Use of sales tools

f) Handlling objections RB-12,13- Types of buyer problems/ objections - Determine hidden objections - General strategies for handling objections - Common types of objections - Specific mehtods of handling objections

g) Closing a sale RB-14- Closing techniques - Trial close

h) *SPIN selling (An introduction)

6) Retail selling - Selling process RB-15- Problems in retail selling

7) Industrial selling RB-17- Basic concept - Difference from retail selling

Readings

(1) Russel Beach (RB) selling – Principles & practices (2) Cundiff still (C) Sales Management (3) Jackson: Selling: The Personal force in Marketing (4) Kirpatrick & Russel: effective selling (5) H.W. Johnson: Creative Selling

VIDEOS (IN LIBRARY)

V-49- Selling to tough customer V-74- Effective selling V-84- How to sell

PAPER NO. 29 (F5)

CORPORATE TAXATION

Objectives :

Objectives of this course is to acquaint the students with the implications of tax structure and corporate profit planning in operational as well as strategic terms.

Detailed Curriculum

1. Residential status of a Company; computation of income under different heads of income; Set-off and carry forward of losses; Deductions from gross total income relating to companies and computation of tax liability of a domestic company.

2. Tax Planning Concepts :- Tax evasion, Tax avoidance, Tax Planning and Tax Management.

3. Tax Planning with reference to location, nature and form of organisation of new business (partnership firm vs. company).

4. Tax Planning relating to capital structure decision, dividend policy; inter-corporate dividend, bonus shares, own or lease, make or buy, sale of asset used for scientific research & Managerial Remuneration & Tax planning, Foreign collaboration & Joint Ventures.

5. Tax planning regarding amalgamation and demerger of Companies.

6. Double taxation relief.

7. Assessment procedure.

Text Books

1. Direct taxes : Law and Practice – V.K. Singhania2. Direct Tax Planning – Dr. S.P. Goel3. Corporate Tax Planning and Management – Ahuja & Gupta4. Direct Tax Planning – Dinkar Pagare