University of Pune MCA EXAM Circular

UNIVERSITY OF PUNE
180/S-2010
Examination Circular No180 of 2010

Programme of M.C.A. Sem.-II,IV & V (2002Pattern), Semester I To V( 2005 Pattern & 2008 Pattern) Examination, November-2010

(Under Faculty of Management)

1. Candidates are required to be present at the respective place of the examination fifteen minutes before the time fixed for the first paper and ten minutes before the time of each subsequent paper.

2. Candidates are forbidden from taking any material into the examination hall, that can be used for malpractice at the time of examination.

3. Candidates are requested to see the Notice-Board at their place of examination regularly for changes if any, that may be notified later in the programme.

4. No request for any special concession such as a change in time or any day fixed for the University Examination on religious

or any other ground shall be granted.

5. Use of non-programmable Calculator is permitted.

6. The centres and places of the examination will be as follows :



Centre / Place of Examination Coll. Code Name & Address of the Institutes

PES’s Modern College of Engineering, Shivajinagar, Pune-5

(1069) 1069

0338

0425

1060

471 PES’s Modern College of Engineering, Shivajinagar, Pune-5

Sinhagad Inst. of Mgt., Vadgaon BK., Pune-41

IMCC, 131, Mayur Colony, Kothrud, Pune-4110292

Abhinav Edu.Society’s Inst. Of Mgt. & Res. Narhe , Pune-411041

MIT School of Mgt.Kothrud,Pune-38

Sinhagad Inst. of Business Admin. Kondhwa,.Pune -48.

(1182) 1182

0663

0612 Sinhagad Inst. of Business Admin. Kondhwa,.Pune -48. Vishwakarama Institute of Technology, Pune-411037

Allana Inst. of Mgt. Sc., Camp, Pune-1

Sinhagad Inst. of Mgt. & Comp. App., Narhe

Ambegaon

(0740) 0740

1056

1117 Sinhagad Inst. of Mgt. & Comp. App., Narhe Ambegaon

Zeal Education Society,s Inst,Narhe

Asma Institute of Management,Shivane,Pune

J.S.P.M.’s Abacus Institute of Computer

Application Hadapsar, Pune-28 1088

1171 J.S.P.M.’s Abacus Institute of Computer Application Hadapsar, Pune-28

Jayawantrao Sawant College of Engg. Hadapsar, Pune – 28

Jayawant Inst.of Comp.Appl., Tathwade, Pune-33.

(0720) 0720

0720

0337



1094

1058 Jayawant Inst.of Comp.Appl., Tathwade, Pune-33

Rajarshree Shahu College of Engg., Tathwade, Pune-33

Indira Inst. of Management, Survey No.85/5-A, Opp. Wakad Police

Chowkey, Tathawade, Pune-411033

ASM’s (IPS) Inst.of Computer Studies,Pimpri,Pune-18

Jayant Inst.Of Management Studiies Tathwade,Pune-33

Alard Institute of Mgt. Sciences, S. No. 50, Marunje, Pune-411 027.

(0790) 0790

1070 Alard Institute of Mgt. Sciences, S. No. 50, Marunje, Pune-27

G.S.Moze College of Engg., Balewadi, Pune – 45

Audyogik Tantra Shikshan Sanstha’s IICMR, Nigdi, Pune-44

(0623) 0623

0477

1228

1183

1077

1101 IICMR, Nigdi, Pune-44

IMCD, Nigdi, Pune-44

D.Y.Patil Inst of Mgt.Pimpri,Pune-18

Pimpri Chinchwad College of Engineering, Pune-44

MAEER’s Maharashtra Academy of Engg. ,Alandi, Pune

Pratibha Instof Mgt.Chinchwad,Pune-19















1



Dr.D.Y. Patil M.C.A. Inst., Akurdi, Pune-44 0743

0331

0793

1076

1118 D.Y. Patil M.C.A. Inst., Akurdi, Pune-44

IBMR,Chinchwad,Pune-19

Siddhant Inst of Business Mgt.Sudumbare,Pune

Siddhant College of Engg,Sudumbare,Pune

D.Y.Patil Inst of Mgt.Ambi Pune-18

G.H.Raisoni College of Engg. & Mgt., Wagholi, Pune 1075

1057 G.H.Raisoni College of Engg. & Mgt., Wagholi, Pune

JSPM’s ENIAC Institute, Wagholi, Pune

Sinhgad Inst. of Business Administration & Computer

Application, Kusgaon (Bk.), Lonavala, Dist. Pune 0742 Sinhgad Inst. of Business Administration & Computer Application, Kusgaon (Bk.), Lonavala, Dist. Pune

Vidya Pratishthan Institute of Information

Technology, Bhigwan Road, Baramati, Dist.-Pune 0673 Vidya Pratishthan Institute of Information Technology, Bhigwan Road, Baramati, Dist.-Pune

Manikchand Dhariwal, I.M.R.T.,Shirur-Ghodnadi, Dist.-Pune 0469 Manikchand Dhariwal, I.M.R.T., Shirur-Ghodnadi, Dist.-Pune

B.P. Hivale I.M.S.C.D. & R., Station Road, Ahmednagar 0457

0427 B.P. Hivale I.M.S.C.D. & R., Station Road, Ahmednagar

Institute of Advanced Computers and Inform. Tech., Vilad Ghat, Ahmednagar.

JDC Bytco Inst. of M.S. & R., B.Y.K. College

Campus, Prin. T.A. Kulkarni, Vidyanagar, Nasik

422 005 0688 Dr. Munje Inst. of Management,C/o Bhonsala Millitary College, Nasik





7. The examination will be conducted in the following order :



Day and Date Subject

Time: 10.30 a.m. To 1.30 p.m.

(Semester-I ) Subject

Time : 2.30 p.m. To 5.30 p.m.

(Semester-III )

Tuesday

30.11.2010 IT-11 : Information Technology & Programming

Methodologies (2005 Pattern)

IT-11 : Computer Organization (2008 Pattern) IT-31 :Web Supporting Technologies (2005 Pattern)

IT-31 : Web Technologies (2008 Pattern)

Wednesday

1.12.2010 IT-12 : ‘C’ Programming (2005 & 2008 Pattern) IT-32 :Computer Networks (2005 Pattern)

IT-32 : Data Communication and Computer Networks (2008 Pattern)

Friday

3.12.2010 IT-13 : Computer Architecture(2005 Pattern)

BM 11: Principles & Practices of Management & Org. Behavior(2008 Pattern) IT-33: Management Support System (2005 Pattern)

IT33: OOP Using C++ (2008 Pattern)

Saturday

4.12.2010 BM-12 : Principles of Management Function

and Organizational Behavior(2005 Pattern)

IT 13: Operating Systems Concepts (2008 Pattern) IT-34 : Objected Oriented Programming Using C++ (2005 Pattern)

IT-34: Advanced DBMS (2008 Pattern)

Tuesday

7.12.2010 MT-11 : Discrete Mathematics

(2005 Pattern & 2008 Pattern) IT-36 : Objected Oriented Analysis & Design (2005 Pattern)

BM-31: MSS & IS Security (2008 Pattern)











































2



M.C.A. (Under Mgt. Faculty) Programme





Day and Date Subject (2005 Pattern & 2008 Pattern) Time: 10.30 a.m. To 1.30 p.m.

Semester V

Wednesday

8.12.2010 IT-51-Software Testing and Quality Assurance (2005 Pattern)

IT-51-Human Computer Interface (2008 Pattern)

Thursday

9.12.2010 IT-52-Advanced Internet Technology (2005 Pattern)

IT-52-Software IT Project Management (2008 Pattern)

Friday

10.12.2010 IT-53-Emerging Trends in Information Technology (2005 Pattern& 2008 Pattern))

Saturday

11.12.2010 BM-51-Software Project Management (2005 Pattern)

IT-55- Advanced Internet Technology (2008 Pattern)

Monday

13.12.2010 ITE-1- IT ELECTIVE (2005 Pattern)

1.Distributed Databases

2.Artificial Intelligence

3.Network Security

4 .Mobile Computing

5.Visual C++

6.Human Computer Interface

7.Parallel Computing

8.Advanced Unix

9.Programming Language Paradigms

ITE-1- IT ELECTIVE (2008 Pattern)

1.Cyber Law & IT Security

2.Programming Language Paradigms

3.Advanced Unix

4.Mobile Wireless Computing

5.Distributed Databases

Day and Date Subject (2002 Pattern) Time: 10.30 a.m. To 1.30 p. m

Semester IV & V

Tuesday

14.12.2010 ITE3-Compiler Design



ITE6-Image Processing



ITE7-Parallel Programming



ITE8-System Analysis & Simulation



ITE9-Computer Graphics & Multimedia

Wednesday

15.12.2010 BME1: Managerial Economics



BME2: Corporate Planning



BM-41: Organization Behaviour



BME-5: Business Finance



BME-6: Taxation Practice

Thursday



16.12.2010 215-:Accounting and Managerial Control ( Semester-II)

















3

















Day and Date Subject

Time: 10.30 a.m. To 1.30 p.m.

(Semester-II ) Subject

Time : 2.30 p.m. To 5.30 p.m.

(Semester-IV)

Saturday

18.12.2010 IT-21 : Data Structures and files using ‘C’

(2005 Pattern & 2008 Pattern) IT-41 : Network Programming (2002 Pattern)

IT-41 : Java Programming (2005 Pattern)

IT-41 : Java Programming (2008 Pattern)

Monday

20.12.2010 IT-22 : Operating System Concepts

(2005 Pattern)

IT-22 : Data Base Management Systems

(2008 Pattern) BM-41 : Soft Skills (2005 Pattern )

*Time : 3.00 p.m. to 5.00 p.m.

IT-42 :Software testing and Quality

Assurance(2008 Pattern)

Tuesday

21.12.2010 IT-23 : Information Systems : Analysis and

Design Methodologies (2005 Pattern)

IT-23: Software Engineering(2008 Pattern) IT43 : Software Engineering (2005 Pattern)

IT-43: Object Oriented Analysis and Design

(2008 Pattern)

Wednesday

22.12.2010 IT-24 :Database Management System

(2005 Pattern)

BM-21:Soft Skills (2008 Pattern) MT-41: Optimization Techniques (2005 Pattern)

MT-41: Optimization Techniques (2008 Pattern)

Thursday

23.12.2010 MT-21 : Probability and Combinatorie’s

(2005 Pattern &2008 Pattern) BME-1: Management Elective (2005 Pattern)

i) MIS framework

ii) Decision Support System

Iiii) Information System Audit

iv) Collaborative Management v) Investment Technology

vi) Foundation of Decision Process

BME-1: Management Elective (2008 Pattern)

i) MIS Framework and Implementation ii) Foundation of Decision Processes

iii) Information System Audit and Governance iv) Collaborative Management

v) Decision Support Systems

vi) Enterprise Resource Planning

*Please note the timing

8. The Practical Examination will be conducted before theory Examination.

9. The Last Examination of M.C.A. Sem I , II , III ,IV& V ( 2005 Pattern ) will be held in

November, 2010 , April 2011 November 2011 , April 2012 & November 2012 respectively.

10. The students of 2002Pattern will have to appear as per the equivalent subjects of 2005

Pattern.











Ganeshkhind, Dr.S.M.Ahire

Pune-411 007 Controller of Examinations

Ref.No. XCT/1334

Date-18.10.2010













4

USEFUL LINKS FOR MBA

A




(Activity Based Costing- ABC) http://activitybased-costing.blogspot.com/

(Advertising) http://advertising-mass-communication.blogspot.com/

(Anger Management) http://controlling-anger.blogspot.com/

(Assertiveness) http://assertiveness-skill.blogspot.com/

(A to Z of Management Systems) http://a-z-management-systems.blogspot.com/

(A to Z of Quality Techniques) http://a-z-quality-techniques.blogspot.com/



B



(Balanced Scorecard) http://balanced-scorecard-system.blogspot.com/

(Behavioral Safety) http://behavioral-safety.blogspot.com/

(Benchmarking) http://benchmarking-system.blogspot.com/

(Boundaryless) http://shyambhatawdekar.blogspot.com/

(Business Ethics and Ethics in Management) http://business-management-ethics.blogspot.com/

(Business Process Reengineering- BPR) http://business-process-reengineering-bpr.blogspot.com/



C



(Change Management) http://manage-change.blogspot.com/

(Children’s Behavior Problems: Family Management) http://child-behavior-problems.blogspot.com/

(Coaching) http://coaching-skill.blogspot.com/

(Communication) http://communication-for-business.blogspot.com/

(Competencies- Life Management) http://shyam-bhatawdekar.blogspot.com/

(Competency Matrix) http://competency-matrix.blogspot.com/

(Conflict Management) http://manage-conflict.blogspot.com/

(Corporate Governance) http://corporate-governance-policy.blogspot.com/

(Cost Management) http://cost-management-control.blogspot.com/

(Cost of Quality- COQ) http://cost-of-quality.blogspot.com/

(Counseling at Workplace)http://counseling-skill.blogspot.com/

(Counseling: Psychological) http://counselingfamily.blogspot.com/

(Creativity- Out of Box Articles) http://wow-idea.blogspot.com/

(Creativity and Innovation) http://creativity-management.blogspot.com/

(Critical Thinking skills) http://critical-thinking-skills.blogspot.com/

(Cross Cultural Etiquette and Manners) http://cross-cultural-etiquette.blogspot.com/

(Customer Orientation) http://customer-orientation.blogspot.com/

(Customer Relationship management- CRM) http://customer-relationship-crm.blogspot.com/



D



(Daily Management) http://daily-management.blogspot.com/

(Decision Making) http://decision-making-function.blogspot.com/

(Delegation) http://delegation-skill.blogspot.com/

(Dining Etiquette and Table Manners) http://dining-manners.blogspot.com/

(Discipline at Work) http://discipline-at-work.blogspot.com/



E



(Effectiveness and Efficiency) http://effectiveness-efficiency.blogspot.com/

(Effectiveness Management: HSoftware) http://humansoftware.blogspot.com/

(Email Etiquette) http://email-etiquette-manners.blogspot.com/

(Emotions) http://emotion-feeling.blogspot.com/

(Emotional Intelligence) http://emotional-quotient-intelligence.blogspot.com/

(Empowerment) http://employee-empowerment.blogspot.com/

(Enterprise Resource Planning- ERP) http://erp-management.blogspot.com/

(Entertainment Management- English Movies) http://popular-movies.blogspot.com/

(Entertainment Management- Hindi Movies) http://hindi-movies-choice.blogspot.com/

(Executive Etiquette and Manners) http://executive-manners.blogspot.com/

(Exit Interview) http://exit-interview.blogspot.com/



F



(Functions of Management) http://functions-of-management.blogspot.com/

(Food Management: Recipes, Easy to Cook) http://easytocook-recipes.blogspot.com/

(Food Management: Recipes, Exotic) http://tastetherecipes.blogspot.com/



G



(Gemba Kaizen) http://gemba-kaizen-improvement.blogspot.com/

(General Knowledge Management- GK) http://general-knowledge-gk.blogspot.com/

(General Knowledge Management- Top 5/Top 10 of Everything) http://top-five-everything.blogspot.com/

(Global Mindset) http://global-mindset.blogspot.com/

(Goal/Target Setting) http://goal-target-setting.blogspot.com/

(Group Dynamics) http://group-dynamics-process.blogspot.com/



H



(Health Management- Cholesterol Control) http://controlling-cholesterol.blogspot.com/

(Health Management- Homeopathy) http://homeopathy-medicines.blogspot.com/

(Health Management- Exercises) http://exercises-plan.blogspot.com/

(Health Management- Quit Smoking) http://quit-smoking-plan.blogspot.com/

(Health Management- Walking) http://walking-plan.blogspot.com/

(How to Get Promoted) http://get-promoted.blogspot.com/

(Home Management- Home Page for All Home Tips) http://home-tips-tricks.blogspot.com/

(HR Dynamics) http://hrm-dynamics.blogspot.com/

(HR Strategies and Functions) http://strategic-functions-hrm.blogspot.com/

(Human Capital Architecture) http://human-capital-architecture.blogspot.com/

(Human Resource Planning) http://human-resource-planning.blogspot.com/



I



(Interpersonal Relations) http://interpersonal-relations.blogspot.com/

(Interview Skills) http://interviewing-skill.blogspot.com/

(Interview Preparation for Job Seekers) http://interview-preparation-jobs.blogspot.com/

(Interview Questions) http://interview-question-bank.blogspot.com/



J



(Just in Time Management- JIT) http://just-in-time-management.blogspot.com/



K



(Kaizen) http://kaizen-improvement.blogspot.com/

(Knowledge Management) http://knowledge-management-initiative.blogspot.com/



L



(Lead Time Management) http://lead-time-management.blogspot.com/

(Leadership) http://lead-max.blogspot.com/

(Lean Enterprise) http://lean-organization.blogspot.com/

(Learning Organization) http://learning-organization-profile.blogspot.com/

(Life Management: Competencies) http://knol.google.com/k/shyam-bhatawdekar/competency-matrix/6txz9nck6g3/4

(Life Management: Effectiveness Management: HSoftware) http://knol.google.com/k/shyam-bhatawdekar/management-in-life-profession-family/6txz9nck6g3/3

(Life management: I Am Liberated) http://knol.google.com/k/shyam-bhatawdekar/i-am-liberated/6txz9nck6g3/6

(Listening) http://listen-skills.blogspot.com/



M



(Management Information System- MIS) http://management-information-system-mis.blogspot.com/

(Managing/conducting Meetings) http://managing-meetings.blogspot.com/

(Marginal Utility) http://marginal-utility-concept.blogspot.com/

(Marketing Management Overview) http://marketing-management-overview.blogspot.com/

(Marketing Orientation) http://marketing-orientation.blogspot.com/

(Marketing Management Tasks) http://marketing-management-tasks.blogspot.com/

(Market research) http://market-research-function.blogspot.com/

(Market Segmentation) http://market-segment.blogspot.com/

(Mentoring) http://mentor-mentorship.blogspot.com/

(Money Management: How to Save Money) http://save-money-ideas.blogspot.com/

(Motivation) http://motivation-people.blogspot.com/



N



(Negotiation Skills) http://negotiating-skills.blogspot.com/

(Negotiation Tactics) http://negotiation-tactics.blogspot.com/



O



(Objection Handling) http://objection-handling.blogspot.com/

(Organization Development- OD) http://organization-development-od.blogspot.com/

(Organizational Culture) http://organizational-culture-values.blogspot.com/

(Out of Box Ideas) http://wow-idea.blogspot.com/

(Ownership on Job) http://job-ownership.blogspot.com/



P



(Parental Responsibilities- family management) http://parental-responsibilities.blogspot.com/

(Performance Management and Appraisal) http://performance-appraisal-management.blogspot.com/

(Personality) http://human-personality.blogspot.com/

(Presentation Skills) http://presentation-effectiveness.blogspot.com/

(Problem Solving) http://problem-solving-skill.blogspot.com/

(Product Knowledge: Home Page for All Products) http://products-all.blogspot.com/

(Product Knowledge- Cars) http://cars-products.blogspot.com/

(Product Knowledge- Chocolates) http://chocolates-products.blogspot.com/

(Product Knowledge- Flowers) http://flowers-products.blogspot.com/

(Product Knowledge- Greeting Cards) http://greeting-cards-products.blogspot.com/

(Product Knowledge- Cell Phones) http://mobilephones-products.blogspot.com/

(Profit Improvement) http://profit-improvement.blogspot.com/

(Project Management) http://management-of-project.blogspot.com/



Q



(Quality Circles History) http://quality-circles-history.blogspot.com/

(Quality Circles) http://quality-circles.blogspot.com/

(Quality Function Deployment- QFD and House of Quality) http://quality-function-deployment.blogspot.com/

(Quality Gurus) http://quality-gurus.blogspot.com/



R



(Recession) http://knol.google.com/k/shyam-bhatawdekar/recession/6txz9nck6g3/7

(Recession Management) http://recession-management.blogspot.com/

(Recruitment and Selection) http://recruitment-selection.blogspot.com/

(Research Methodology) http://research-work-methodology.blogspot.com/



S



(Sales/Selling Process) http://selling-process.blogspot.com/

(Sales Promotion) http://sales-promotion.blogspot.com/

(Self development) http://managing-self.blogspot.com/

(Self-confidence) http://self-confidence-improvement.blogspot.com/

(Six Sigma) http://six-sigma-system.blogspot.com/

(Six Thinking Hats) http://six-thinking-hats.blogspot.com/

(Soft Skills) http://soft-skills-competencies.blogspot.com/

(Strategic Management) http://strategic-managing.blogspot.com/

(Stress Management) http://managing-stress-strain.blogspot.com/

(Supply Chain Management) http://manage-supply-chain.blogspot.com/

(Supply and Demand) http://supply-demand-laws.blogspot.com/



T



(Talent Management) http://managing-talent.blogspot.com/

(Team Building) http://team-building-working.blogspot.com/

(Telephone Etiquette) http://telephone-etiquette.blogspot.com/

(Three Sixty Degrees Appraisal System) http://three-sixty-degrees-feedback.blogspot.com/

(Time Management) http://time-life-management.blogspot.com/

(Total Productive Maintenance- TPM) http://total-productive-maintenance.blogspot.com/

(Total Quality Management- TQM) http://total-quality-concept.blogspot.com/

(Training and Development) http://training-function.blogspot.com/

(Trainers’ Qualities) http://trainers-qualities.blogspot.com/

(Transaction Analysis- TA) http://transaction-analysis.blogspot.com/

(Travel and Sightseeing Management- India) http://india-tours-sightseeing.blogspot.com/

(Travel and Sightseeing Management- World) http://sightseeing-guide.blogspot.com/

(TRIZ: Inventive Problem Solving) http://triz-problem-solving.blogspot.com/

W
(Winners and Losers) http://winners-losers.blogspot.com/

(World Class Manufacturing) http://world-class-manufacturing.blogspot.com/

(Written Communication) http://written-communication.blogspot.com/
Z
Zero Based Budgeting) http://zero-based-budgeting.blogspot.com/

CRM Defination

 “CRM is the core business strategy that integrates internal processes and functions, and external networks, to create and deliver value to targeted customers at a profit. It is grounded on high-quality customer data and enabled by information technology.”
Francis Buttle (2004)

“A business strategy that uses information technology to provide the enterprise with a comprehensive, reliable, and integrated view of its customer base so that all business processes and customer interactions help maintain and expand mutually beneficial relationships.”
Zikmund, McLeod, and Gilbert (2003)

“An enterprise-wide business strategy for achieving customer-specific objectives by taking customer-specific actions.” Peppers & Rogers (2004)

“CRM is a business strategy to select and manage the most valuable customer relationships. CRM requires a customer-centric business philosophy and culture to support effective marketing, sales and service processes. CRM applications can enable effective customer relationship management, provided that an enterprise has the right leadership, strategy & culture.”
CRMGuru.com (2003)

“CRM is a philosophy and a business strategy, supported by a system and a technology, designed to improve human interactions in a business environment.”
Greenberg (2004) 

Bonus Calculation

Bonus=Total amount of salary earned in the service of 1 year*8.33%

PFA for more details which I have got from web

As per Max Bonus Act
Bonus=Total amount of salary earned in the service of 1 year *20%(max)

I hereby elaborate the difficulties; I have faced in this respect:
1. Is the earned salary (basic + DA) per month or total basic salary + DA per month will compare with Rs.3500/- for taking as a base for calculate earned salary per month for the bonus. (For example: If a person’s basic salary + DA in a month is Rs 5000/- and his earned salary for that month is Rs.3400/-. Then for that month which amount - i.e. Rs. 5000/-, Rs. 3400/-or Rs 3500/- we have to consider as a base salary to calculate earned salary).
2. If the basic salary + DA will compare with 3500/- to consider as a base salary for the calculation of earned salary, can the calculated earned salary per month be more than 3500/-. ( for example : If a Person’s basic salary + DA in a month is Rs 3450/-and he worked for 27 days ( due to also worked on his allowed w/off) in month instead of his 26 working days ( after deducting weekly offs) in that month. In this case his earned salary for that month is 3450/26*27= 3582/-. Than for that month which amount we have to consider for the calculation of bonus - i.e. Rs 3582/- or Rs 3500/-).
3. In bonus calculation which days we consider as total working days either total days of the month (for example for April - 30 days, for May – 31 days) or total days of the month after deduct allowed weekly off (for example for April - 30 days less 4 weekly off being 4 Sundays, for May – 31 days less 5 weekly off, being 5 Sundays) or days for which he worked including Leaves with wages.
4. In respect of above 3rd point total working days for staff members and workers will be same or not.
5. As it has been comes to my notice that there is requirement to maintain A, B, C registers for bonus calculation. Is there any register named ‘D’, if yes what is the format & filing procedure for same. Except bonus i have one more query regarding Leave encashment That Leave encashment is done on basic Salary or Gross Salary(Basic+Allowances+PF)

BCG Matrix

The BCG matrix classifies business-unit performance on the basis of the unit's relative market share and the rate of market growth as shown in Figure 1.

Products and their respective strategies fall into one of four quadrants. The typical starting point for a new business is as a question mark. If the product is new, it has no market share, but the predicted growth rate is good. What typically happens in an organization is that management is faced with a number of these types of products but with too few resources to develop all of them. Thus, the strategic decision-maker must determine which of the products to attempt to develop into commercially viable products and which ones to drop from consideration. Question marks are cash users in the organization. Early in their life, they contribute no revenues and require expenditures for market research, test marketing, and advertising to build consumer awareness.

If the correct decision is made and the product selected achieves a high market share, it becomes a BCG matrix star. Stars have high market share in high-growth markets. Stars generate large cash flows for the business, but also require large infusions of money to sustain their growth. Stars are often the targets of large expenditures for advertising and research and development to improve the product and to enable it to establish a dominant position in the industry.

Cash cows are business units that have high market share in a low-growth market. These are often products in the maturity stage of the product life cycle. They are usually well-established products with wide consumer acceptance, so sales revenues are usually high. The strategy for such products is to invest little money into maintaining the product and divert the large profits generated into products with more long-term earnings potential, i.e., question marks and stars.

Dogs are businesses with low market share in low-growth markets. These are often cash cows that have lost their market share or question marks the company has elected not to develop. The recommended strategy for these businesses is to dispose of them for whatever revenue they will generate and reinvest the money in more attractive businesses (question marks or stars).

Despite its simplicity, the BCG matrix suffers from limited variables on which to base resource allocation decisions among the business making up the corporate portfolio. Notice that the only two variables composing the matrix are relative market share and the rate of market growth. Now consider how many other factors contribute to business success or failure. Management talent, employee commitment, industry forces such as buyer and supplier power and the introduction of strategically-equivalent substitute products or services, changes in consumer preferences, and a host of others determine ultimate business viability. The BCG matrix is best used, then, as a beginning point, but certainly not as the final determination for resource allocation decisions as it was originally intended. Consider, for instance, Apple Computer. With a market share for its Macintosh-based computers below ten percent in a market notoriously saturated with a number of low-cost competitors and growth rates well-below that of other technology pursuits such as biotechnology and medical device products, the BCG matrix would suggest Apple divest its computer business and focus instead on the rapidly growing iPod business (its music download business). Clearly, though, there are both technological and market synergies between Apple's Macintosh computers and its fast-growing iPod business. Divesting the computer business would likely be tantamount to destroying the iPod business.

A more stringent approach, but still one with weaknesses, is a competitive assessment. A competitive assessment is a technique for ranking an organization relative to its peers in the industry. The advantage of a competitive assessment over the BCG matrix for corporate-level strategy is that the competitive assessment includes critical success factors, or factors that are crucial for an organizational to prevail when all organizational members are competing for the same customers. A six-step process that allows corporate strategist to define appropriate variables, rather than being locked into the market share and market growth variables of the BCG matrix, is used to develop a table that shows a businesses ranking relative to the critical success factors that managers identify as the key factors influencing failure or success.

Dostana Part II

Dostana Part II

Amol Rathod +91-9763852593 student of JICA
Pankaj Bhand +91-9405005540 student of JICA

Capital structure

Cost of debt

Tax is deductible expenses. The cost of capital is equivalent to debt burden on organization has to bear in terms of interest, tax or dividend etc. the formula for calculation is as below:

I (1-t) + (F-P/N)

Kd=       (P+F)/2

Kd – cost of debt, I- interest, t- taxation rate, F- face value of debenture, P- net amount realized, N- period of maturity.

Cost of preference capital

Cost of dividend + cost of actual additional liability in terms of tax+dividend payment expenses will result in cost of capital. The effective rate of interest which organization needs to bear is more than face value if tax and additional amounting expenses are high. The formula for the same is as below:

   PD+ (F-P)/N

Kp=        (F+P)/2

Kp- cost of preference shares, PD- preference dividend, F-repayable value, P- net amount realised, and N- maturity period

Cost of long term loan:

Long term loan is one of the sources for capital. When loan is repaid additional burden of interest to with of principle is to be bared by the firm as cost of capital. In this formula tax is value additional factor considered in calculating cost of capital. Formula for the same is as below:

Kd= interest (1- Tax Rate)

Cost of equity capital:

Different approaches towards cost of capital are as below:

Cost of equity capital

 

Dividend /Price     Dividend, Price          EPS to Price            Cost of Retained Earnings       Realised Yield

Approach                 and Growth                 Approach                      Approach                          Approach   

                                 Approach                                        

EPS to Price approach:

Comparison of price of share with earning per share is done as there is difference between face value and market value of share so in place of dividend importance is given to earnings per share. The formula for the same is as below:

Ke = EPS/P

EPS- earnings per share, P -price of share

Cost of retained earnings approach:

Cost of retained earnings is a kind of opportunity cost for investors. When company retains higher amount of earnings then it is indication of future gain in terms of value addition to price and asset charge of company. The formula for the same is as below:

Kr = cost of equity capital X (1-tp/ 1-tg)

Kr – cost of retained earnings, tp – ordinary personal income tax rate, tg – personal long term capital gains

Dividend /Price     :

In this approach dividend and market price of the shares is compared to analyse the cost of capital. This approach can also be termed as EPS approach based on market price of the share. Ion this approach what is current price and earnings for the same price in terms of dividend are measured and then the amount of cost of capital is calculated .formula for the same is as below:

Ke = D/MP

D- Dividend per share, MP- market price of share

Dividend, Price and Growth Approach:

In this approach with amount of dividend expected rate of growth of organization is also considered. The formula to calculate cost of capital for the same is as below

Ke = D/ MP+ G (growth)  

COMMODITY SWAPS

Producers need to manage their exposure to fluctuations in the prices for their commodities. They are primarily concerned with fixing prices on contracts to sell their produce. A gold producer wants to hedge his losses attributable to a fall in the price of gold for his current gold inventory. A cattle farmer wants to hedge his exposure to changes in the price of his livestock.

End-users need to hedge the prices at which they can purchase these commodities. A university might want to lock in the price at which it purchases electricity to supply its air conditioning units for the upcoming summer months. An airline wants to lock in the price of the jet fuel it needs to purchase in order to satisfy the peak in seasonal demand for travel.

Speculators are funds or individual investors who can either buy or sell commodities by participating in the global commodities market. While many may argue that their involvement is fundamentally destabilizing, it is the liquidity they provide in normal markets that facilitates the business of the producer and of the end-user.

Why would speculators look at the commodities markets? Traditionally, they may have wanted a hedge against inflation. If the general price level is going up, it is probably attributable to increases in input prices. Or, speculators may see tremendous opportunity in commodity markets. Some analysts argue that commodity markets are more technically-driven or more likely to show a persistent trend.

The futures markets have been the traditional vehicles for participating in the commodities markets. Indeed, derivatives markets started in the commodities field.

Types of commodity swaps

There are two types of commodity swaps: fixed-floating or commodity-for-interest.

Fixed-floating swaps are just like the fixed-floating swaps in the interest rate swap market with the exception that both indices are commodity based indices.

General market indices in the commodities market with which many people would be familiar include the Goldman Sachs Commodities Index (GSCI) and the Commodities Research Board Index (CRB). These two indices place different weights on the various commodities so they will be used according to the swap agent's requirements.

Commodity-for-interest swaps are similar to the equity swap in which a total return on the commodity in question is exchanged for some money market rate (plus or minus a spread).

Valuing commodity swaps

In pricing commodity swaps, we can think of the swap as a strip of forwards each priced at inception with zero market value (in a present value sense). Thinking of a swap as a strip of at-the-money forwards is also a useful intuitive way of interpreting interest rate swaps or equity swaps.

Commodity swaps are characterized by some idiosyncratic peculiarities, though.

These include the following factors for which we must account (at a minimum):

1. The cost of hedging
2. The institutional structure of the particular commodity market in question
3. The liquidity of the underlying commodity market
4. Seasonality and its effects on the underlying commodity market
5. The variability of the futures bid/offer spread
6. Brokerage fees
7. Credit risk, capital costs and administrative costs

Some of these factors must be extended to the pricing and hedging of interest rate swaps, currency swaps and equity swaps as well. The idiosyncratic nature of the commodity markets refers more to the often limited number of participants in these markets (naturally begging questions of liquidity and market information), the unique factors driving these markets, the inter-relations with cognate markets and the individual participants in these markets.