SUGGESTED SOLUTION - J.K. Shah ClassesPrelims)(INJ4111).pdfA Transaction Processing System (TPS) is an information system that collects, stores, modifies and retrieves the day-to-day

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SUGGESTED SOLUTION

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Section –A

Ans. 1 1. Peer-to-Peer Networking :

A Peer-to-Peer (P2P) Network is created with two or more PCs connected together and share resources without going through a separate Server Computer.

Independent stand-alone systems are inter-connected. Each of the systems is called a Peer and acts as both Server and a Client.

2. Meaning of Intranet : An Intranet is a Company's Private Network accessible only to specified persons, e.g.

internally by Employees, and by Customers, Suppliers, and other Business Partners via extranet links.

Intranet uses Internet technologies like Web Browsers and Servers, TCP/IP Network Protocols, HTML Hypermedia Document Publishing and Databases, etc. to provide an Internet-like environment within the Enterprise for information sharing, communications, collaboration, and the support of business processes.

An Intranet is protected by security measures like Passwords, Encryption, and Firewalls. 3. Netbook :

Netbooks are a different category of devices that branched off from mini notebooks in general.

Netbooks are generally less expensive than Subnotebooks, as they are optimized for use as portable Internet capable devices and generally lack the processing power of a workstation.

Netbooks may have 9W TDP CPUs, sacrificing performance for power efficiency, whereas Subnotebooks often use 18W TDP processors.

4. BPM : BPM is a combination of systems, methods and tools for ensuring processes that are

improved on a continuous basis to achieve enterprise objectives. BPM requires an Enterprise to align its' processes with enterprise goals, find ways to

improve those processes and then establish measurements that can be used to track and monitor performance for continuous improvement and optimisation.

BPM refers to the closed loop, iterative management of business processes over their complete lifecycle.

BPM is the management of business processes with the organization being the primary focus.

BPM is the methodology used by Enterprises to improve end-to-end business processes in various stages.

5. Data Flow Diagrams (DFD) : A Data Flow Diagram (DFD) graphically describes the flow of data within an organization. It is used to - (i) document existing systems, and (ii) plan and design new systems. DFDs may be partitioned into levels that represent increasing information flow and functional

detail. DFDs provide a mechanism for Functional Modelling as well as Information Flow Modelling.

6. Transaction Processing System (TPS) : A Transaction Processing System (TPS) is an information system that collects, stores,

modifies and retrieves the day-to-day data transactions of an Enterprise.

Examples: Airline Reservation Systems, Railway Reservation Systems, Banking Systems, Accounting System of a medium / Large Entity.

7. Expert System : An Expert System is a highly developed DSS that utilizes knowledge which is generally

possessed by an Expert, to solve a problem.

Thus, Expert Systems are software systems that imitate the reasoning and processes of human experts, and provide decision-makers with the type of advice (along with reasoning there for) that would be normally received from human Experts.

8. Mobile Computing : Mobile Computing is the use of portable computing devices (e.g. Laptop and Handheld

Computers) in conjunction with mobile communications technologies to enable users to access the Internet and data on their home or work computers from anywhere in the world.

Mobile Computing Technology allows data transmission through a Computer, without the need for connecting to a fixed physical link.

Mobile Voice technology (i.e. Cell Phones Network) is extended to Mobile Computing, where data is being sent and received across the Network, on a wireless platform.

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Many Companies design and develop several wireless applications and solutions for mobile technologies (e.g. iPhone, Google Android, Windows Mobile, Symbian, Palm & Pocket PC.)

Mobile Computing is enabled by use of mobile devices (portable and hand held computing devices) such as PDA, laptops, mobile phones, MP3 players, Digital Cameras, Tablet PC and Palmtops on a Wireless Network.

9. DBMS : Data Base Management System (DBMS) is a computer program which organizes data in a

database, providing information storage, organization, and retrieval capacities, including simultaneous access to multiple databases through a shared field.

DBMS is primarily an organized way of computerized record keeping. Some examples of DBMS are Oracle, My SQL, SQL Servers and DB2, etc.

10. Modems : Modem is an encoding / decoding device that is used to convert digital signals from

computers to analog telephone signals (to modulate the signal), and convert analog telephone signal into a digital computer signal (de-modulate the signal).

Modems are required to send computer data with ordinary telephone lines, because computer data is in digital form but the telephone lines are analog.

Note: "Modem" is a contraction of "modulate" and "demodulate",

Ans. 2 (a)

1. Meaning Artificial Intelligence is the computer science field which tries to improve computers by endowing them with some of the characteristics associated with human intelligence, like capacity to understand natural language and to reason under conditions of uncertainty.

It is a software that attempts to imitate aspects of human behavior like reasoning, communicating, seeing and hearing, etc. Example: Deep Blue System, which defeated a World Chess Champion.

Artificial Intelligence (AI) is a research field that studies how to comprehend the intelligent human behaviors on a computer, and to make a computer that can discover, sketch, and crack problems in parallel.

2. Characteristics of Artificial Intelligence

Artificial Intelligence is man-made, and its level of activity depends on the programming capability.

It has the potential to extend problem solving ability of a Manager beyond his normal capabilities.

It is a mechanism that is not subject to human feelings like fatigue, worry, etc.

3. Subject / Fields in AI Disciplines

Philosophy and Cognitive Science. Maths

Psychology. Computer Science.

4. Human Behavior Tools / Aspects in AI

Reasoning, Learning, Planning, Perception,

Knowledge Acquisition, Intelligent Search, Uncertainty Management.

5. Application Areas of AI

Pattern Recognition, Medical Diagnosis, Expert Systems, Natural Language Processing and

Transition,

Litigation, Concept Mining, Data Mining, Knowledge Representation, Semantic Web.

(b)

1. Meaning Control is defined as policies, procedures, practices and organization structure that are designed to provide reasonable assurance that business objectives are achieved and undesired events are prevented or detected and corrected,

2. Need Due to widespread use of IT in business, there is a need to ensure that all information that is generated from system is accurate, complete and reliable for decision-making. Hence, the requirement for proper controls.

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3. Control Objectives

The major Control Objectives are – Authorization: All transactions are approved by responsible personnel

in accordance with their specific or general authority before the transaction is recorded.

Completeness: No valid transactions should be omitted from the accounting records.

Accuracy: All valid transactions are accurate, consistent with the originating transaction data, and information is recorded in a timely manner.

Validity: All recorded transactions fairly represent the economic events that actually occurred, are lawful in nature, and have been executed in accordance with Management's general authorization.

Physical Safeguards and Security: Access to physical assets and information systems are controlled and properly restricted to authorized personnel.

Error Handling: Errors detected at any stage of processing receive prompts corrective action and are reported to the appropriate level of Management.

Segregation of Duties: Duties are assigned to individuals such that no one individual can control both the recording function and the procedures relative to processing a transaction.

Ans. 3

(a) 1. Scalability/Elasticity: Databases in Cloud are highly dynamic and scalable to meet

differing requirements of Clients. 2. Reliability/Resiliency: Cloud Computing is more reliable because of minimal infrastructure

failures. When there is a failure of Server and Storage Resources, the work is migrated to a different physical resource in the Cloud with or without user awareness and intervention.

3. Availability: Since the Cloud / Internet utilizes the resources, availability of Servers are high. Users can access database resources through the Internet, from any place, for any number of times, etc.

4. Agility: The agility (responsiveness) and efficiency of Cloud Computing is high, as the Cloud works in the 'Distributed Mode' environment which shares the resources and tasks.

5. Multi-sharing: Since the Cloud works in a distributed and shared mode, multiple users and tasks from various applications can work more efficiently.

6. Multi-Device Access : Cloud Computing permits secured access to data from any Network-connected Device, e.g. Desktop PC, Notebook, Tablet, Smartphone, etc. The User can use any data or application in the Cloud without confining it to a particular device.

7. Maintenance: Installation of Software Applications in the Client's system is not required. Thus, maintenance of Cloud Computing applications is easier.

8. Virtualization: This feature allows Servers and Storage Devices to share and utilize applications, by easy migration from one physical Server to another.

9. Performance: System Performance and its interface with applications are consistently monitored under Cloud Computing. Loosely-coupled architectures are constructed using web services.

10. Services in Pay-Per-Use Mode : Service Level Agreements (SLA's) between the cloud Service Provider and the User must be clearly defined as billing is based on pay-per-use mode. Application Programming Interfaces (APIs) may be offered to the Users for their access.

11. On-Demand: Since the User Entity calls for Cloud Services only when needed, they are not permanent parts of the IT Infrastructure. With Cloud Services, there is no need to have dedicated resources waiting to be used, as is the case with internal services.

12. Independent: Cloud Computing is an independent platform. There is no need to procure specific software.

13. Unlimited Data Storage: Storing information in the Cloud / Internet leads to almost unlimited storage capacity, with no substantial increase in costs.

14. Different Cloud Types: Project Managers can manage projects better by assigning different hardware resources to different cloud types, viz. Web Development Cloud, Testing Cloud and Production Cloud. This will help manage costs, manage security and allocate resources effectively.

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15. Workload Movement : This characteristic is related to resiliency and cost considerations. Here, Cloud-Computing Providers can migrate workloads across servers both inside the Data Center and across Data Centers (even in a different geographic area). This migration might be necessitated by cost factors (e.g. less expensive to run a workload in a data center in another country based on time of day or power requirements) or efficiency considerations (e.g. Network Bandwidth), or regulatory considerations for certain types of workloads.

16. Multi Tenancy : Public Cloud Service Providers often can host the cloud services for multiple users within the same infrastructure. Server and Storage Isolation may be physical or virtual depending upon the specific user requirements.

(b)

Factors Key Considerations

1. Scope Whether BPM is for the entire Company, or a Department, or only a single process.

2. Goals Process Understanding, Improvement, Automation, Re- Engineering, Optimisation, etc.

3. Methods to be used Six Sigma, BPM Life Cycle Method, TQM, Informal Methods, etc.

4. Skills Required Existing Skill Sets of Employees, Training Requirements, External Consultants, Education and Expertise Level requirement, etc.

5. Tools required Comprehensive BPM System or Suites (BPMS), Software For Mapping, Documenting, Simulation, etc. and Non-IT Tools White-Boards, Manuals, etc.

6. Investments required Training, Tools, Time, etc.

7. Sponsorship/Buy-in Needed

Executive Level, Department Level, Process Owner Level, Employee Level

Ans. 4

(a) Advantages :

1. User Needs : Application Software is specifically designed / customized to satisfy user needs.

2. Minimal Virus Threat: Access Restrictions and Network Security can be built-in, to reduce threat from virus.

3. Regular Updates: Licensed Application Software gets regular updates from the Developer for security reasons. The Developer may also send personnel regularly to solve User problems.

Disadvantages :

1. High Cost: Developing Application Software designed to meet specific purposes can be costly. Sometimes, Cost of Licenced Software may also be high.

2. Infection from Malware: If an Application Software is used commonly by many people and shared online, it carries a highly real threat of infection by a Computer Virus or other malicious programs.

(b)

Meaning : 1. In a Star Network, the processing nodes

inter-connect directly with a Central Computer System.

2. Each Terminal can communicate only with the Central Server, and not with other nodes in the network.

3. To transmit information from one node to another, it should necessarily be routed through the Central Computer.

4. The Central Computer (Host) is a Mainframe, and acts as File Server as well as Traffic Controller.

5. Star Network is appropriate for organizations that require a centralized data base or a centralized processing, facility. Example: Banking Companies.

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Advantages and Disadvantages :

Advantages Disadvantages

1. A Star Network can be easily expanded or shortened since it is easy to add or remove nodes.

1. Failure of the Central Computer brings down the entire network.

2. Node failure does not bring down the entire network.

2. It is costlier to cable a star configuration than any other network structures.

3. Connection of additional computers does not increase the communication time between any two computers.

3. Considered less reliable than a Ring Network, since the other computers in the star are heavily dependent on the Central Host Computer. There is no backup processing if Central Host fails.

4. It is easier to diagnose network problems through a Central Hub.

5. Several Users can use the Central Unit at the same time.

Ans. 5

(a) Meaning :

1. CORE stands for "Centralized Online Real-time Environment". 2. Core Banking System is the set of basic software components that manage the services

provided by a Bank to its Customers through its Branches and other points of transaction.

Features :

1. Core Banking Systems (CBS) are the heart of a Bank's operations in the electronic world.

2. CBS Systems operate 24 X 7 to support Internet Banking, Global Operations, and Real-Time Transactions.

3. CBS is the platform where Communication Technology and Information Technology a remerged to suit core needs of Banking.

4. CBS Services are made available across multiple channels like - (i) ATMs, (ii) Internet, (iii) Mobile Phone, (iv) Point of Sale (POS)through Debit/Credit Card, (v) Call Centres (through Interactive Voice Response System IVRS), (vi) Relationship Managers / Agents, and (vii) Branches.

5. Business Aspects of CBS include - (i) Retail Banking, (ii) Corporate Banking, (iii) Wealth Management, (iv) Insurance, (v) Securities Management, (vi) Tax Compliance, (vii) Banking Sector Information, etc.

Elements / Functions :

The various elements / functions of Core Banking Systems include - 1. Making and servicing Loans, 2. Opening New Accounts, 3. Processing Cash Deposits and Withdrawals, 4. Processing Payments and Cheques, 5. Calculating Interest, 6. Customer Relationship Management (CRM) activities, 7. Managing Customer Accounts, 8. Establishing criteria for Minimum Balances, Interest Rates, Number of Withdrawals

Allowed, etc. 9. Establishing Interest Rates, and 10. Maintaining Records for all the Bank’s transactions.

(b) Some benefits of BPA include - 1. Reducing Human Errors : BPA minimizes human intervention in the process, and thus

avoids consequent errors.

2. Information Processing : Apart from collecting and storing data, BPA can also analyze the data, and make it available for decision-making.

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3. Higher Throughput : In situation where tasks that are done manually constitute the bottleneck (i.e. delaying factor) in the process, BPA can speed up the effective throughput of the application.

4. Improved Human Effort : People can focus their energies on the tasks they do best, allowing the computers to handle those that machines are best suited for.

5. Business—responsive : Business can easily automate new applications and processes as they are introduced.

6. Collaboration and Information Sharing : Business Processes designed through a collaborative interface mean that IT can integrate its processes with the business-side logic that drives day-to-day operations.

7. Stability : BPA helps the enterprise to generate greater profits and achieve a higher level of stability.

Ans. 6 (a)

I. TRUE Reason: A Server is a Computer (Hardware) or Device on a Network, dedicated to run one or more services (as a Host), to serve the needs of the users of other computers on a Network.

II. FALSE Reason: In a Relational Database Structure, data are organized in two-dimensional tables which

are easy for a User to develop and understand. This type of structure can also be described mathematically.

The name Relational Database Structure is derived from the fact that each Table represents a relation, and each row of tables corresponds to a single record of the database.

(b) Based on the number of elementary units of information (bits) that can be simultaneously transmitted by the Communications Channel, there are two modes of transmitting digital data-

Aspect Serial Transmission Parallel Transmission

1. Path The bits of each byte are sent along a single path one after the other.

There are separate parallel paths corresponding to each bit of the byte.

2. Lining up The 8-bit bytes are lined up into a single stream of bits, for transmission purposes.

The entire byte or 8 bits can be transferred in one operation.

3. Data Transmission

Character Bits are transmitted one by one.

All Character Bits are transmitted simultaneously.

4. Wire(s) Data is transmitted over a single wire.

Data is transmitted over 8 different wires.

5. Distance Serial Transmission is best suited for transmitting data over long distance.

Useful when data are transmitted to short distance. It is not practical to use for long distance communication since crosstalk occurs in Parallel Transmission.

6. Speed Since communication between computers is almost always serial and therefore slow, this mode is not efficient.

Parallel Transmission is faster than Serial Transmission since all the bits are sent or transmitted at the same time.

7. Cost Cost of transferring data is very low.

It is most expensive than Serial Transmission.

8. Example RS-232 is an example of Serial Port used for the Mouse or MODEM.

Centronic Port is the example of Parallel Port used for Printer.

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Ans. 7

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Section – B

Ans. 8 1. The features/ major dimensions of Strategic Decisions are -

Top-Management : Problems calling for strategic decisions should be considered by Top Management due to - (a) co-ordinate/ harmonized thinking, (b) effect on various sub-systems in the organization, and (c) risk involved.

Resources : Strategic issues involve commitment of resources, i.e. large amounts of Company's financial investment, to venture into new area of business, employing more people with new set of skills in them, take-over of another enterprise, etc.

Long-Term Effect: The results of strategic implementation should be analysed and reviewed on a long term basis, and not immediately. Strategic Decisions have an impact on long-term prosperity.

Future oriented: Strategic thinking involves predicting the future environmental conditions and how to orient for the changed conditions.

Multi-functional Effects: Strategic decision making involves an organization in its totality. They affect different sections of the organization with varying degrees.

Environment factors: Strategic decision-making in organization involves orienting its internal environment to the changes of external environment. Hence, external environment factors have to be carefully analysed.

2.

Heinz Weihrich has developed a matrix called TOWS Matrix by comparing the strengths and weaknesses of an organization (internal) with that of market opportunities and threats (external).

TOWS Matrix uses the inputs viz. Strengths, Weaknesses, Opportunities and Threats, reorganizes them and integrates them into the strategic planning process.

This matrix takes into account various environmental and organizational factors, so as to facilitate strategy formulation and ensure efficient utilization of organizational resources.

The various combinations in TOWS Matrix are given below –

3. Meaning : Value Chain Analysis (VCA) is used as a means of describing the activities within

and around a Firm, and relating them to an assessment of its competitive strength (or its ability to provide value-for-money products or services).

Origin : Value Analysis was originally introduced as a accounting analysis to shed light on the 'value added' of separate steps in complex manufacturing processes, in order to determine where cost improvements could be made and/or value creation improved.

Steps : According to Michael Porter, the 2 basic steps of VCA are - (a) identifying separate activities, and (b) assessing the value added from each, and linking them into an analysis of the Firm's competitive advantage.

Significance : i. VCA recognizes that organizations are much more than a random collection of

machines, money and people. These resources are of no value unless deployed into activities and organized into routines and systems which ensure that products or services are produced which are valued by the final Consumer/User.

ii. Thus, it is these competences to perform particular activities and the ability to manage linkages between the activities, which are the source of Competitive Advantage for organizations. So, Porter has advocated that an understanding of strategic capability must start with an identification of these separate value activities.

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Ans. 9 (a)

I. Classification : According to Porter, Generic or Basic Strategies allow organizations to gain competitive advantage from three different bases – 1. Cost Leadership, i.e., producing standardized products at a very low per unit costs, for

consumers who are price-sensitive. 2. Differentiation, i.e. producing products and services considered unique industry-wide

and directed at consumers who are relatively price-insensitive. 3. Focus, i.e. producing products and services that fulfill the needs of small groups of

consumers. II. Factors : Porter suggested that the appropriate strategy may be based on an evaluation of

the following – 1. Sharing : Managers should perform cost-benefit analysis to evaluate "sharing

opportunities" among a Firm's existing and potential business units. Sharing activities and resources enhances competitive advantage by- (i) lowering costs, or (ii) raising differentiation.

2. Transfer of Skills : Firms can "transfer" skills and expertise among autonomous business units effectively in order to gain competitive advantage.

3. Size : Large Firms with greater access to resources can adopt Cost Leadership and / or Differentiation strategy while small Firms have to adopt Focus strategy.

4. Others : In addition to the above, the type of industry and intensity of competition also play a role in deciding the appropriate strategy.

(b) The important characteristics of Business Environment are – 1. Pervasive : No Business Enterprise can operate in a vacuum. Every business, irrespective

of its size, objectives, nature of business, products/ services, years of standing, etc. has to interact with its environment.

2. Complexity : Business environment consists of a number of factors, events, conditions, and influences arising from different sources, which interact with each other continuously to create entirely new sets of complex influences.

3. Dynamism : Business environment is ever-changing in nature. Due to the operation of multivarious influences, there is total dynamism in the environment, causing it to continuously change its shape, nature and character.

4. Multi-faceted : The shape and character of an environment depends on the perception of the observer. A particular change in the environment, or a new development, may be welcomed as an opportunity by one Firm while another Firm perceives it as a threat, (e.g. Introduction of VAT).

5. Impact : Environment has a far reaching impact on business. The growth and profitability of a Firm depends critically on the environment in which it exists. Every environment change has an impact on the Firm in several ways.

Ans. 10

(a) Reasons for Globalization are – 1. Rapid shrinking of time and distance across the globe due to - (a) faster communication,

(b) speed in transportation, (c) growing financial flows, and (d) rapid technological changes. 2. Global Market for the goods and services proves to be an extra source of revenue to the

business in addition to the domestic market and thereby facilitates better reach and connectivity.

3. Cheaper source of Raw Materials, e.g. petroleum and mining companies go global to secure a reliable or cheaper source of raw materials. Similarly, low cost of labour in India lure foreign investors.

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4. Foreign Investment ensures a supportive hand in capital contribution, and also in direct contribution to the organisation's as well as the nation's GDP.

5. Lower Transportation Costs leads to globalization because higher the ratio of unit cost to the selling price per unit, the more significant the transportation factor becomes.

6. Global Technology ensures better efficiency and growth which can be obtained at reduced costs if the Company goes in for globalization.

7. Increasing emphasis on market forces and a growing role for the private sector in nearly all developing countries.

8. The rise of service-oriented jobs has created a huge market due to globalization.

(b) Main strategic responsibilities of CEO are – 1. Setting overall strategic objectives, 2. Allocating resources among the different business areas, 3. Deciding whether the Firm should divest itself of any of its businesses, and 4. Determining whether the Firm should acquire any new businesses, 5. Ensuring Shareholder Welfare.

Ans. 11 Igor Ansoff's Product Market Growth Matrix helps businesses decide their product and market

growth strategy on the basis of the following –

Strategy Meaning Other Points

Market Pene- Tration

To sell existing products into existing markets.

Market Penetration can be achieved by - 1. Increasing Market Share, 2. Increasing Product Usage / Utilities, 3. Increasing the frequency used, 4. Increasing the quantity used, or 5. Finding new application for current users.

Penetration, i.e. making increased sales to present customers, without changing products in a major way, may require greater spending on advertising or personal selling.

To overcome competition in a mature market, the Company should have - (a) an aggressive promotional campaign, and (b) a pricing strategy designed to make the market unattractive for competitors.

Market Develop- Ment

To sell existing products into new markets.

This strategy may be achieved through - new geographical markets, new product dimensions or packaging, new distribution channels, different pricing policies to attract different customers, creating new market segments.

Product Develop- Ment

To introduce new products into existing markets.

The Firm seeks growth by offering modified or new products to current markets.

Product Development can be achieved by - 1. Adding product features, product refinement, 2. Developing a new generation product, or 3. Developing new product for the same market,

This strategy may require the development of new competencies and requires the business to develop modified products which can appeal to existing markets.

Diversi- Fication

To sell new products in new markets.

It involves starting up or acquiring businesses outside the Company's current products and markets.

This strategy is risky, because it does not rely on either the Company's successful product or its position in already established markets.

Note: When market conditions change over a period of time, the Company should modify its strategies. For example, if the present market is fully saturated, the Company should pursue a new market or create a new product.

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Ans. 12 (a) Meaning:

1. Divestment Strategy involves the sale or liquidation of a portion of business, or a major division, profit centre or SBU.

2. Divestment is a part of rehabilitation or restructuring plan, and is adopted when a turnaround has been attempted but has proved to be unsuccessful.

Reasons: Divestment Strategy may be adopted due the following reasons - 1. Acquired business proves to be a mismatch and cannot be integrated within the Company. 2. Negative cash flows from a particular business create financial problems for the whole

Company. 3. Inability to cope with the prevailing severe/ intense competition. 4. Inability to invest in the technological upgradation required to survive in business. 5. Availability of a better alternative for investment.

(b) 1. Competition: Firms are now forced to improve their business processes to meet increased

competition. Major changes are required to stay even in the competitive market. 2. Customer Needs: Customers are demanding better products and services. If they do not

receive what they want from one Firm, they have many others to choose from. Customers are ready to try new brands. There is a need to re-design the Firm's processes not only to meet customer expectations, but to exceed the expectations, and raise quality standards to an altogether new level.

3. Technology: New concepts in IT (internet, e-commerce, etc.) are rapidly bringing new capabilities to businesses. This increases the strategic options available to the Firm to achieve dramatic improvement in its performance.

4. Conclusion: Improving business processes is paramount for businesses to stay competitive in the current economic conditions. So, BPR may be viewed as a means of solving business problems through an imaginative leveraging of information technology capabilities.

Ans. 13 (a) These are explained below –

1. DMAIC (for existing products, processes and services)

Define Define the process improvement goals that are consistent with the Firm's overall strategy & customer demands.

Discuss all issues with Senior Management Officials so as to define what needs to be done.

Measure Measure the existing processes to facilitate future comparison. Collect process data by mapping and measuring relevant processes.

Analyse Verify cause-and-effect relationship between the factors in the processes. Identify the interrelationship between the factors which affect performance. Make a comprehensive analysis to identify hidden or latent factors.

Improve Make a detailed plan to improve, on the basis of the above analysis.

Control Perform initial trials or pilot runs, to establish process capability and transition to production.

Measure the process continuously to ensure that variances are identified and corrected before they result in defects.

2. DMAPV (for new products, processes and services)

Define Define the goals of the design activity, such that they are consistent with the

Firm's overall strategy and the demands of the customer.

Measure Identify the factors that are Critical To Quality (CTQs). Also assess the risks

involved. Measure factors such as product capabilities and production process capability.

Analyse Develop and design alternatives. Create high-level design and evaluate to select the best design.

Design Develop details of design and optimise it. Evaluate designs using techniques such as simulations.

Verify Verify designs through simulations or pilot runs. Hand over the verified and implemented processes to the Process-Owners.

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(b) 1. Meaning: Strategic Leadership is the ability of influencing others, to voluntarily make

decisions that enhance prospects for the organization's long-term success while maintaining short-term financial stability.

2. Scope: Strategic Leadership includes determining the Firm's strategic direction, aligning the

Firm's strategy with its culture, modeling and communicating high ethical standards, and initiating changes in the Firm's strategy, when necessary.

Strategic Leadership sets the Firm's direction by developing and communicating a vision of future and inspire organization members to move in that direction.

Unlike Strategic Leadership, Managerial Leadership is generally concerned with the short-term, day-to-day activities.

3. Approaches: The 2 basic approaches/Styles to Strategic Leadership are - (a) Transformational, and (b) Transactional.

Ans. 14

(a) 1. Universal Quality Responsibility: Quality is a organization-wise guiding philosophy that is

not restricted to the Firm's Quality Control / Quality Assurance Department. Under TQM, every person or department takes responsibility for quality.

2. Quality Measurement: Under TQM, quality is recognised as a measurable commodity, and in order to improve, we need to know where we are (i.e. what the current quality levels are), and we need to have some idea where we are going (i.e. what quality levels we aspire to achieve). Statistical Methods are used to support quality efforts in process- simplification and product-design variation.

3. Inventory Reduction: Inventory Reduction leads to - (a) cost reduction, and (b) quality improvement. This management philosophy is called Just-in-Time (JIT) inventory management.

4. Value Improvement: The essence of value improvement is the ability to meet or exceed customer expectations while removing unnecessary cost. The philosophy is one of "Cost Management" and not merely "Cost Containment",

5. Supplier Teaming: Developing long-term relationships with a few high-quality suppliers, rather than simply selecting those suppliers with the lowest initial cost is termed as Supplier Teaming. This will ensure quality at the source level, i.e. at the raw materials / component procurement stage.

6. Training: Training is one of the pre-requisites to ensure - (a) Employee Involvement, (b) Employee Empowerment and (c) Continuous Improvement.

7. Preventing rather than detecting defects: TQM is a management philosophy that seeks to prevent poor quality in products and services, rather than simply to detect and sort out defects. This saves cost, time and wastages.

8. Continuous improvement and learning: TQM adopts a philosophy of continuous improvement in all areas. Improvement and learning need to be embedded in the way an organization operates. They should be a regular part of daily work, seeking to eliminate problems at their source.

(b)

Point Inbound Logistics Outbound Logistics

Meaning inbound Logistics are the activities concerned with receiving, storing and distributing the inputs to the product/service.

Outbound Logistics relate to collection, storage and distribution of the product to customers.

Deals With

Raw Materials, Components, Partly processed inputs, etc.

Finished Products.

Activities It includes activities like Materials Handling, Stock Control, Transport, etc.

It includes activities such as Storage / Warehousing of Finished Goods, Order Processing, Scheduling Deliveries, Operation of Delivery Vehicles, etc.

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MARKS ALLOCATION SHEET

Que. No.

Sub point No.(if any)

Name of Chapter Section-A

Description of Concept Mark Allocation

Total Marks

1 - Each definition has 1 mark 10 10

2 A Business information systems

Meaning 1


Characteristics 0.5


Subject 0.5


Human behaviour tools 1


Application areas 1 4

2 B Business process automation

Meaning 1


Need 1


Objectives 2 4

3 A Internet & emerging tech.

Any 8 features (each has 0.5 mark) 4 4

3 B Business process Mgt.

any 4 key factors (each has 1 mark)

4 4

4 A Information system Advantages 2

4 A Information system Disadvantages 2 4

4 B Telecommunication & network

Meaning 1


Advantages 1.5


Disadvantages 1.5 4

5 A Business information

Meaning 1


Features 1.5


Functions 1.5 4


Any 4 benefits (each has 1 mark) 4 4

6 A(i) Internet & emerging teach

True/false 1

6 A(i) Internet & emerging teach

Reason 1

6 A(ii) Information system True/false 1

6 A(ii) Information system Reason 1 4

6 B Telecommunication & networks

Any 4 differences (each has 1 mark) 4 4

7 Business process mgt.

Flow chart 8 8

Section B

8 A Strategic mgt. process

Any 5 features (each has 1 mark) 5 5

8 B Strategic analysis Meaning & use 1

8 B Strategic analysis Strength & opportunity 1

8 B Strategic analysis Weakness & opportunity 1

15 | P a g e

8 B Strategic analysis Strength & threat 1

8 B Strategic analysis Weakness & threat 1 5

8 C Strategy implementation &

control

Meaning & origin 2


control

Steps 1


control

Significance 2 5

9 A Strategy formulation

Classification 2

9 A Strategy formulation

Factors 2 4

9 B Business environment

Any 3 characteristics (each has 1 mark)

3 3

10 A Business environment

Any 4 reasons (each has 1 mark) 4 4

10 B Strategic mgt. process

Any 3 role of CEO (each has 1 mark)

3 3

11 Strategic analysis Market penetration 1.75

11 Strategic analysis Market development 1.75

11 Strategic analysis Product development 1.75

11 Strategic analysis Diversification 1.75 7

12 A Strategy formulation Meaning 2

12 A Strategy formulation Reasons 2 4

12 B Reaching strategic edge

Any 3 points 2.5

12 B Reaching strategic edge

Conclusion 0.5 3

13 A Reaching strategic edge

Any 4 difference (each has 1 mark) 4 4

13 B Strategy implementation &

control

Meaning 1


control

Scope 1


control

Approaches 1 3

14 A Reaching strategic edge

Any 4 features (each has 1 mark) 4 4

14 B Strategy formulation 3 differences (each has 1 mark) 3 3

Documents

SUGGESTED SOLUTION - J.K. Shah ClassesPrelims)(INJ4111).pdfA Transaction Processing System (TPS) is an information system that collects, stores, modifies and retrieves the day-to-day