CA PCC-PCE Question Papers Group II Information Technology and Strategic Management May 2010

 

CA PCC/PCE  Question Papers – Group II

Information Technology and Strategic Management

May 2010

Total No. of Questions – 10] [Total No. of Printed Pages – 2

Time Allowed : 3 Hours Maximum Marks : 100
Attempt all question.
Section—A : Information Technology
1. (a) Describe briefly the following terms : 5×1=5
(i) RISC (0)
(ii) SCSI (0)
(iii) WiFi (0)
(iv) Linked List (0)
(v) Metadata. (0)
(b) Explain each of the following : 5×1=5
(i) Mirror Log (0)
(ii) Open Source Software (0)
(iii) Fire wall (0)
(iv) Intranet (0)
(v) Multitasking. (0)
2. Answer the following :
(a) Explain the value added services that a Data Centre provides. 5 (0)
(b) Explain different core phases that are required in developing a backup and recovery strategy. 5 (0)
3. (a) Discuss the various attributes of Local Area Network (LAN). 5 (0)
(b) What is Integrated Services Digital Network (ISDN) ? Write its advantages. 5 (0)
4. The Income-tax for the employees of an organization is calculated on the basis of their Gross Income and the Investments made by them, under Section 80CCC. The taxable income is calculated according to the following rules :
Taxable Income = Gross Income – Investments provided investments are less than 1 lac. Otherwise

Taxable Income = Gross Income – 1,00,000

Following rules are applied to calculate the Income-tax, on the Taxable Income:

Taxable Income Income–tax
(i)
(ii)
(iii)
(iv) 0 – 1,60,000
1,60,001 – 3,00,000
3,00,001 – 5,00,000
5,00,001 and above Nil
10%, on the excess of 1,60,000
14,000 + 20% on the excess of 3,00,000
54,000 + 30% on the excess of 5,00,000
Also an educational cess of 3% of Income–tax is levied on all the employees, irrespective of the income.

Employee number, Name, Gross Income, Investment amount is given as input.

Draw a flow chart to calculate the Income–tax payable by each employee.

10 (0)
5. Write short notes on the following :
(a) Stages of Data Mining 5 (0)
(b) Bluetooth Technology 5 (0)
6. State with reasons which of the following statements is correct or incorrect: 3×2=6
(a) Globalization means different things to different people. (0)
(b) Production strategy implements, supports and drives higher strategies. (0)
(c) Benchmarking and Business process Reengineering are one and the same. (0)
7. Briefly answer the following: 3×2=6
(a) Need for Turnaround Strategy. (0)
(b) Grand Strategy Alternative during Recession. (0)
(c) Shared Vision and ‘Vision Shared’. (0)
8. (i) What tips can you offer to write a ‘right’ Mission Statements? 2×4=8 (0)
(ii) An industry comprises of only two firms–Soorya Ltd. and Chandra Ltd. From the following information relating to Soorya Ltd., prepare BCG Matrix:
Product Revenues
(in Rs.) Percent
Revenues Profits
(in Rs.) Percent
Profits Percentage
Market
Share Percentage
Industry
Growth rate
A
B
C
D
Total 6 crore
4 crore
2 crore
50 lakh
12.5 crore 48
32
16
4
100 120 lakh
50 lakh
75 lakh
5 lakh
250 lakh 48
20
30
2
100 80
40
60
5 + 15
+ 10
– 20
–10
(0)
9. Michael E. Porter has suggested three generic strategies. Briefly explain them. What is the basic objective to follow a generic strategy? In what situations can the three strategies be used? Identify the type of strategy used in the following examples:
(a) Dell Computer has decided to rely exclusively on direct marketing.
(b) “Our basic strategy was to charge a price so low that microcomputer makers couldn’t do the software internally for that cheaply.”
(c) ‘NDTV’, a TV Channel has identified a profitable audience niche in the electronic media. It has further exploited that niche through the addition of new channels like ‘NDTV’ Profit and ‘Image’.
3+1
+3+3=10 (0)
10. Read the following case and answer the questions given at the end:
Subhiksha (prosperity in Sanskrit) began with a single grocery store at Chennai in 1997. Subhiksha stores increased from 50 in 2000 to 140 by 2002–03 (spread across 30 towns in Tamilnadu) to 670 by 2006–07 to 1650 by September, 2008. Its early success was due to its business model based upon no–frills/deep discount and high level of neighbourhood focus. Its decision in 2004 to go national from a regional player at a rapid pace proved wrong. With the growing ambition to go national, focus shifted from value to customers to creating valuation for self. The company had recruited all the employees to foray into consumer durables also. Its revenue increased from Rs.278 crore from 140 stores in 2005 to Rs. 2305 crore in 2008 with a capital base of Rs. 32 crore. Subhiksha’s profit after tax for 2007–08 was Rs. 41 crore. It had invested heavily, largely using debt, and paybacks took longer than expected. Repayment of debt had no relationship to cash flow. In the end the company had liabilities of Rs. 900 crore.

Around January, 2009, the company had started to shut down stores pan–India and in February, the top management quit the firm, not just because it defaulted on rentals of its outlets and salaries since October, 2008. Today all the stores are closed. Major suppliers had stopped supplies after it defaulted on payments. It asked its employees to take home groceries; and go on leave without pay. Many employees did not get their salaries. Initially the company was confident to restructure and remain in business.

Indian retail industry comprises of 12 million mom–and–pop stores and kirana stores (many of whom have also started innovating) and unknown number of hawkers in the unorganized sector working on small–sized stores and with low or no rentals and salaries and the organized retailers (market share not more than 5 %)

Indian retail industry comprises of 12 million mom–and–pop stores and kirana stores (many of whom have also started innovating) and unknown number of hawkers in the unorganized sector working on small–sized stores and with low or no rentals and salaries and the organized retailers (market share not more than 5 %)

Debt–ridden retailer Subhiksha Trading Services Ltd. has begun its second innings in February, 2010, with the launch of its first cash–and–carry store (the board outside the outlet reads Subhiksha Maligai Arisi Mandi) in Thiruvanmiyur in Chennai– at its first ever retail outlet). ‘Subhiksha’s model will be different this time around and will not directly engage with customers‘�, said and industry source.

Questions:

(a) “To understand the nature of competition certain questions need to be answered”. What those questions are?
(b) Who were the competitors of Subhiksha? Do you think they were better equipped than it?
(c) What, where and how the business strategy of Subhiksha might have gone wrong?
(d) If you were the strategy consultant to the Organized Retailers Association of India, what will you advise to control the cost and convert the threat of dropping footfalls and declining sales into an opportunity?
(e) How is a Cash–and–carry store different from a Retail store? Name any other such Cash–and–carry store in India.
3+5
+4+6+2 (0)

Leave a Comment