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Given below is the list of SET B Exam Asked Question so far Do check these out before your Final MCQ Exam so that you can Excel in the exam without any issue these question were prepared by MANMOHAN GUPTA do give them your Thanks.

Set B Important Question

Sr No.QuestionsAnswers
1Which of the following is part of the ‘Soft S’ in McKinsey’s 7S framework?
a) Strategy b) Systems
c) Structure d) Skills
Skills
2Which of following statements are incorrect in regard to Argenti’s A score model.
1. Mistakes and defects not inter-related.
2. Threshold is Kept at score of 45.
3. There are three underlying groups (dimensions) i.e., Mistakes, Defects and Symptoms of failure.
Both 1 and 2 only
3The Ease of Value for money FrameworkEconomy, Efficiency, Effectivenss
42 extra Es in Value for money (VFM)?Equity, Ethics
5Maximise ratio of input of resources & output of goods, services or other material.efficiency
6Which one are not challenging assessment of effectiveness
a) Define what constitute litter
Answer is in from other 3 option
7Case Study: A company has four products (S, P, A, N) with different tag lines: Product S: Why Pay more When you Payless
Product P: Conservation, Preservation & Sustain Product A: You get what you pay for
Product N: Safety First
8a) Which one cost leadership strategy?Why Pay more When you Payless
(Product S)
9b) Which one is product differentiation strategy?You get what you pay for (Product A)
10c) Which product emphasizes a differentiation strategy based on environmental sustainability?Conservation, Preservation & Sustain
(Product P)
11d) Which product emphasizes safety as its primary differentiating factor?Safety First (Product N)
12Which of the following is not a reason to use the concept of Learning Curve?Introducing new technology
13Sales Rs. 4,00,000; Variable Cost Rs. 3,00,000; Fixed Cost Rs. 75,000; Investments Rs. 1,50,000 and desired 20%
on investments. What is residual income?
-5000
14Strategic Control meansRead from SM
15Which Price Strategy involve setting a low initial price to quickly gain large market share?Penetration pricing
16Premium Price Strategy is when
a) Price are high & demand elastic b) price are high & demand inelastic
c) price are low & demand elastic
17Pricing strategy of combining package with manufacturing coupon or rebate?Mixed Bundling
18Case Study: A service company, ServicePro Inc., has implemented the Building Block Model to enhance its
performance measurement system. The model focuses on dimensions, standards, and rewards.
19a) Which of the following is a determinant under the Building Block Model?
1) Flexibility 2) Equity
3) Clear communication 4) Controllability
Flexibility
20b) In the Building Block Model, what characteristic should performance measures possess to be considered
equitable?
They should be challenging for all parts
of the business equally
21c) ServicePro Inc. sets a target to achieve four product innovations per year rather than simply “”innovate””. This target
exemplifies which characteristic of standards in the Building Block Model?
Ownership
22d) What is a key benefit of using the Building Block Model in performance measurement?It aligns performance measures with strategic goals and employee motivation
23Turnover increase is which dimension of building block model?Financial Performance
24Disruptive innovation refers tothe process of transforming an expensive or highly sophisticated product, offering, or service into one that is simpler, more affordable, and accessible to a broader
population.
25Disruptive innovation can be classified asLow end disruption and new market
disruption
26Incubators means in a company               help startup by developing its strong idea into a viable product
It work on a fee-basis as opposed to taking an equity stake in the startup.
27Rework cost can classified asInternal failure cost
28Type of report Integrates scope, schedule, and cost performance using earned value management techniquesEarned Value Report
29Type of report that Captures the state of the activity at a particular point or project at a particular point in its life
cycle.
Status Report
30Case Study: Coal… Ltd. is a leading company involved in the mining and production of coal. The company operates in a highly regulated industry with significant capital investments required for exploration and mining operations.
31a) Identify the level of threat of new entrants.Low
32b) Identify level of threat of substitute if allocation of new coal block to steel, thermal & other industries?High
33c) Analyze the intensity of competitive rivalry within the coal mining industry.Very High
34d) Assess the bargaining power of suppliers in the coal mining industry.Low
35Case Study: Match the following on Porter’s five forces:
a) The industry requires significant capital investments for new firms to enter.
b) Large volume purchases by power plants give them significant negotiating power
c) The presence of alternative energy sources like natural gas and renewables.
d) Numerous coal mining companies compete aggressively for market share.
e) Standardized inputs and multiple suppliers reduce supplier leverage.
a) Threat of New Entrants
b) Bargaining Power of Buyers
c) Threat of Substitutes
d) Competitive Rivalry
e) Bargaining Power of Suppliers
36Case study related to Optimum price level (SM page. 6.37)
Demand for Different price level given. Direct material, Direct labour, Variable cost, Fixed Cost data also given.
Q. Calculate Price at which profit is maximum
Q. If company sells at lowest possible price, DL cost will come down by 10% because of learning curve effect. Calculate revised profit.
37Which of these doesn’t affect market share variance
a) sales efforts, b) successful marketing strategy, c) learning curve effect.
Learning curve effect
38Case study : Reverse Calculation of OEE
OEE % & Availability %, data related to working normal working time, break time, good units, total units etc were
given.
Q Calculate Performance % Q Calculate Quality %
Q Calculate ideal cycle time
39In a manufacturing environment, if a machine has an Availability of 90%, a Performance of 85%, and a Quality of
95%, what is the Overall Equipment Effectiveness (OEE)?
72.68%
40A company reduced the price of its product to throw away the competitor from market. This pricing strategy is called?Predatory Pricing
41What describes the “Free Model” in disruptive business models?A business model where the core product is free for a large number of users, but premium features are sold to a
smaller subset.
42Find out correct sentence about freemium –
a) basic version is free & upgraded version is at premium, b) freemiums are free forever for basic versions & customers cant get full product
c) offers free version for limited time.
A)
43Business model in which the company applies lock system limiting customers options.Service ecosystem model
44Which of the following is an example of the “Subscription Model”?An e-commerce platform charging a monthly fee for exclusive access to deals
45A company sold Printers cheaply to build demand for high-margin printer cartridges. Which model is followed by co?Razorblade business model – also known
for cross subsidization
46What is the primary characteristic of a hyper-competitive market?High level of rivalry among the players
47Which of the following is a strategic response to hyper-competition according to D’Aveni’s 7S
framework?
Shifting the rules of the market
48Order of ADAPTED Balanced scorecard?1)Customer, 2)Financial, 3) Internal, 4)
Innovation learning
49Which financial performance measure arguably has strong correlation with shareholders wealth?Economic value addition
50Case Study: Two divisions (Division A and Division B) have the following financial data: Division A:
Operating Profit: ₹5,00,000 Capital Employed: ₹20,00,000 Division B:
Operating Profit: ₹4,00,000 Capital Employed: ₹16,00,000
Company’s Cost of Capital (CoC): 10%
51a) Calculate the ROI for Division A and Division B.Division A: 25%, Division B: 25%
52b) Calculate the RI for Division A and Division B.Division A: ₹3,00,000, Division B:
₹2,40,000
53c) Identify the correct statement about RI and ROI.ROI is a relative measure, and RI is an
absolute measure.
54d) Given the current ROI of both divisions and the CoC, identify the correct statement (from an ROI perspective).Division A manager will reject the project if its ROI < Division A’s ROI, but the project should be accepted if its ROI
> Company’s ROI.
55Which coefficient has more weight in Z score?X3 (EBIT/ Total Assets)
56Zscore is helpful in predicting what?Bankruptcy
57A Co was heavy engineering company involved in setting up & installing P&M having more than 350 offices in India
with 2000 direct employees. From this, Identify the org structure of the company?
Divisional Structure
58Formula to calculate no of relations & cross relations.n(n-1)/2 & n(n-1)
59ESG full formEnvirnmental, Social & Corporate
governance
60Multi-national organizations try to maximize profits by using transfer pricing as a tool to reduce the tax impact on earnings. Where, the supplying division is in a country with            tax rate, the transfer price will be set lower in – order to reflect higher earnings (resulting from lower purchase cost) in the purchasing division, which has a          tax
rate.
Higher tax rate & Lower tax rate respectively
61Pareto principle based upon the law ofDiminishing returns
62Question related to types of E Commerce Model
63Full Form of STEEPLEsocial, technological, economic, environmental, political, legal, and
ethical
64Full Form of SMART.Strategic Measurement Analysis and
Reporting Technique
65Full form of SBU.Strategic Business Unit
66Level 2 in performance pyramid shows what??In order to achieve corporate vision, the initial focus is on the attainment of CSFs related to market and finance at the SBU
or division level.
67Objective of Level 1?organisation defines how long-term
success and competitive advantage will be attained.
68Which is superior against other in performance pyramid & Balanced scorecard.Performance Pyramid
69Limitation as compared to performance prismPerformance pyramid consider as only shareholder and customer whereas Performance Prism Model considers the expectations and contributions of all the
stakeholders as core
70Aim of JITreduce inventory holding costs and
increase inventory turnover
71What are primary objective of Just-in-Time (JIT) inventory management?Minimizing inventory levels
72Which of the following best describes a key benefit of implementing Just-in-Time (JIT) systems?Reduced waste and improved efficiency
73Limitation of Network or Virtual Organisationreducing management’s control and the
reliability of partners
74Meaning of Matrix organisationRead from SM
75Disclosure in ESR reportingshed light on a company’s ESG activities while improving investor transparency and inspiring peerorganizations
76Deciding the selling price of the new product in market is the most difficult decision. While doing the variance analysis, the manager of the sales and marketing department of the company is interested to know which of the following is not responsible for Sales Price Variance –
a) Higher discounts given to customers in order to encourage bulk purchases b) Failure to satisfy demand due to production difficulties
c) Better sales price realization d) Market conditions or economic conditions forcing changes in
prices across the industry
B)
77Which of the following does Kaizen improvement process not focus on?Improvement by innovation
78Case Study: XYZ Ltd- South Korean Branch and Brazilian Branch, procuring through internal transfers 250000 units @35000, Variable cost is 30000, an external party offer is available to Brazilian branch, now company has
asked South korean branch (transferor) to look into the matter.
79Q1 Calculate local consumption tax (tax rate, forex rate given)
80Q2 Net P/L to South Korean Subsidiary
81Q3 Net Benefit/ Deficit to company
82Identification of Preventive or Appraisal cost
83Identify business model – when two people interact and buy.Ecommerce
84Question related to Case Study: Why company failed?technology not adapted due to
management style or due to cost leadership thus not invested in tech
85Radical one off changes to inborne ops and processProcess Re-engineering
86Identification of Company Model: The company will charge them a fee to upgrade to a more comprehensive offer. To
gain access to additional features or an upgraded version, users must pay a set fee to the company.
Freemium
87Strategic cost Management help in                      Managing cost (reduce cost) & alligning
them to strategies
88Identifying On-Demand Model.Swiggy & Zomato
89How does the “On Demand Model” disrupt traditional business models?By charging a premium for instant
access to products and services.
90Difference Between Planning & Operational VarianceA Planning Variance simply compares a revised standard to the original standard whereas Operational Variance simply compares the actual results against the
revised amount
91Case Study: XYZ Ltd. operates in the consumer electronics industry and has adopted two distinct competitive strategies for its product lines: cost leadership and product differentiation. For its basic line of smartphones, XYZ Ltd. focuses on cost leadership, aiming to become the lowest-cost producer in the industry. For its premium line of smartphones, XYZ Ltd. emphasizes product differentiation by offering unique features and superior quality.
92a) Which strategy is XYZ Ltd. using for its basic line of smartphones?Cost Leadership
93b) What is the primary objective of a cost leadership strategy?To become the lowest-cost producer in
the industry
94c) Which of the following features is most likely associated with XYZ Ltd.’s premium line of smartphones?Unique features and superior quality
95d) What is a key characteristic of a product differentiation strategy?Unique product attributes that create
value for customers
96e) Which of the following is a potential risk of the cost leadership strategy for XYZ Ltd.?Competitors imitating cost reduction
strategies
97f) In the context of XYZ Ltd., what could be a potential benefit of implementing a product differentiation
strategy for its premium line?
Increased brand loyalty and customer
retention
98g) If XYZ Ltd. wants to maintain its cost leadership strategy, which of the following actions should it
prioritize?
Reducing overhead costs and improving
operational efficiency
99h) What could be a significant challenge for XYZ Ltd. when pursuing a product differentiation strategy in a highly
competitive market?
Keeping up with frequent technological
advancements
100Case Study: ABC Ltd. is a global manufacturing company looking to expand its operations in a new international market.
The company’s strategic team conducts a STEEPLE analysis to understand the various external factors that might impact their decision. The analysis covers:
Social Factors: Increasing demand for eco-friendly products among consumers. Technological Factors: Rapid advancements in manufacturing technology.
Economic Factors: Fluctuating exchange rates and inflation rates in the target market. Environmental Factors: Stricter environmental regulations and sustainability initiatives. Political Factors: Political stability and government policies favoring foreign investments. Legal Factors: Compliance with international trade laws and local labor laws.
Ethical Factors: Corporate social responsibility and ethical labor practices.
101a) Which of the following is an example of a Social factor in the STEEPLE analysis for ABC Ltd?Increasing demand for eco-friendly
products
102b) How might rapid advancements in manufacturing technology, a Technological factor, impact ABC Ltd.’s decision
to expand?
By reducing production costs and
improving efficiency
103c) What type of factor is “”stricter environmental regulations”” in the context of the STEEPLE analysis for
ABC Ltd.?
Environmental
104d) Which factor in the STEEPLE analysis would involve assessing the compliance with international trade laws and
local labor laws?
Legal
105Case Study: DEF Ltd. is a company operating in the consumer electronics industry. The strategic management team at DEF Ltd. uses Porter’s Five Forces Model to analyze the competitive environment and to develop strategies for maintaining its market position. The analysis covers:
Threat of New Entrants: The industry has high barriers to entry due to significant capital investment requirements and strong brand loyalty among consumers.
Bargaining Power of Suppliers: There are few suppliers of critical components, giving suppliers considerable power over prices.
Bargaining Power of Buyers: Buyers have a moderate amount of power due to the availability of alternative brands and the increasing access to market information.
Threat of Substitute Products: The threat is high due to rapid technological advancements and the availability of alternative electronic products.
Industry Rivalry: Competition is intense among existing players, with aggressive marketing and
frequent product innovations.
106a) Which of the following factors is considered under the “”Threat of New Entrants”” in Porter’s Five
Forces Model?
Significant capital investment
requirements
107b) What effect does the high bargaining power of suppliers have on DEF Ltd.’s operations?It puts upward pressure on production
costs
108c) Why is the threat of substitute products considered high for DEF Ltd.?Because of rapid technological
advancements
109d) What is the primary reason for intense industry rivalry in the consumer electronics market as faced
by DEF Ltd.?
Aggressive marketing and frequent
product innovations
110e) How does moderate bargaining power of buyers impact DEF Ltd.?It forces DEF Ltd. to focus on customer satisfaction and competitive pricing
111f) Which of the strategies can DEF Ltd. use to mitigate the threat of new entrants?Enhancing brand loyalty through
marketing
112Case Study: A service level agreement (SLA) has been established between XYZ Company and its client. The agreement includes a gain-sharing arrangement based on cost savings achieved over three years. The cost savings realized in each year are as follows:
Year 1: ₹1,00,000
Year 2: ₹1,50,000
Year 3: ₹2,00,000
113a) What is the total cost savings achieved over the three years?450000
114b) If the gain-sharing ratio is 50:50, how much does XYZ Company receive from the total savings?225000
115c) For Year 2, with a gain-sharing ratio of 40:60 between Client & XYZ, what is the client’s share of the cost
savings?
60000
116d) Assuming the total cost savings in Year 3 are shared in a 30:70 ratio, how much does XYZ Company
receive?
140000
117Case Study: Raya Health Care Limited, a leading healthcare service provider in Mumbai, is outsourcing its CT scan and MRI services to Livlife, an international chain of diagnostic centres. Livlife promises to provide radiologist reports within 24 hours. The agreement includes:
Cost savings generated in the first year will be retained by Livlife.
Cost savings generated in the second and third years will be shared between Raya and Livlife at a ratio of 30%:70%. Cost savings generated in the fourth year will be passed to Raya.
Additional Data:
The total cost savings generated in each of the first four years are as follows: Year 1: ₹1,00,000 Year 2: ₹2,00,000
Year 3: ₹3,00,000 Year 4: ₹4,00,000
118a) How much cost savings is attributable to Company 1 (Raya Health Care Limited) in the second and third years
combined?
₹ 1,50,000
119b) How much cost savings is attributable to Company 2 (Livlife) in the second and third years combined?₹ 3,50,000
120c) What is the total amount of cost savings generated in the fourth year?₹ 4,00,000
121d) What is the cumulative amount of cost savings retained by Livlife over the four years?₹ 4,50,000
122Case Study: ABS Company:
Total calls: 12,000
Calls answered within the threshold limit: 11,500 Abandoned calls: 300
RBS Company:
Total calls: 9,500
Calls answered within the threshold limit: 8,000 Abandoned calls: 250
95/20 for ABS: This likely means that 95% of the calls should be answered within 20 seconds.
90/15 for RBS: This likely means that 90% of the calls should be answered within 15 seconds.
123a) What is SLA threshold & what is threshold time?It is Activity response time specified in agreement.
Threshold Time:
For ABS, the threshold is 20 seconds. For RBS, the threshold is 15 seconds.
124b) What is the SLA threshold in percentage for ABS and RBS?95% and 90%
125c) Compute the Service Level (SL)?ABS: 98.29%
RBS: 86.49%
126Which of the following is NOT a component of the Cost of Quality (COQ)?
a) Prevention Costs b) Appraisal Costs
c) External Failure Costs d) Market Share Costs
Market Share Cost
127Who popularized the concept of the Cost of Quality in his book “Quality Is Free”?Philip B. Crosby
128Which of the following costs is associated with the prevention of poor quality in products and services?Prevention Cost
129What type of cost is associated with defects that are found before the customer receives the product or
service?
Internal Failure Costs
130Case Study: JK Ltd. produces and sells a single product. Presently, the company has an annual external failure cost of ₹440,000 and an internal failure cost of ₹850,000. The company considers implementing a new quality control system, which would result in an annual prevention cost of ₹560,000 and an appraisal cost of ₹70,000. The new system is expected to reduce external and internal failure costs by ₹100,000 and ₹410,000 respectively. All other
activities and costs will remain unchanged.
131a) What will be the total cost of quality (COQ) after implementing the new quality control system?₹ 15,90,000
132b) Based on the new system, should JK Ltd. implement the new quality control system?Yes, it results in a cost saving.
133Case Study: ABC Ltd. implemented Just-in-Time (JIT) inventory management. The following changes were observed post implementation:
Reduction in inventory holding costs by 30% Increase in on-time delivery from 85% to 95% Decrease in production lead time by 40%
Improvement in product quality, reducing defects by 20%
134a) What was the initial inventory holding cost if it was reduced by ₹60,000 after a 30% reduction?₹ 2,00,000
135b) What is the new on-time delivery rate after JIT implementation?85%
136c) If the initial production lead time was 10 days, what is the new lead time after a 40% reduction?6 days
137d) If the defect rate was initially 5%, what is the new defect rate after a 20% improvement?4%
138Case Study: DEF Manufacturing has decided to implement Just-in-Time (JIT) inventory management to streamline their production process and reduce costs. Before implementing JIT, the company held an average inventory worth
₹500,000. Post-implementation, several changes were observed: Inventory holding costs reduced by 25%
Production lead time decreased from 12 days to 7 days On-time delivery rate improved from 80% to 92%
The defect rate decreased from 6% to 3%
139a) What is the amount of reduction in inventory holding costs post-JIT implementation?₹ 1,25,000
140b) What is the new inventory holding cost after the reduction?₹ 3,75,000
141c) By how many days did the production lead time decrease after implementing JIT?5 days
142d) What is the percentage improvement in the on-time delivery rate?12%
143e) What is the percentage decrease in the defect rate?3%
144Which of the following best describes blockchain technology?A system that records public transactions, or blocks, in multiple records known as chains, linked by peer-
to-peer connections.
145Sigma Cast & Pig Moulder (SC&PM) Limited has the following financial details: Working Capital: ₹4,200 crores
Total Assets: ₹3,500 crores Retained Earnings: ₹800 crores EBIT: ₹6,500 crores
Market Value of Equity: ₹7,000 crores Total Liabilities: ₹5,000 crores
Sales: ₹8,300 crores
Calculate the Altman Z-Score for SC&PM Limited.(manuacturing)
11.097
146How many main dimensions does Argenti’s A-Score model include?Three
147In the Triple Bottom Line framework, which aspect would NOT be reported under the “People” bottom line?Net income
148The number of inpatient hospital deaths decreased 8% from 776 in 2022 to 715 in 2023. This metric falls under
which bottom line?
Social (People)
149Case Study: A company, EcoMinds Ltd., has undertaken several initiatives towards sustainability. The company’s
operations impact the environment and society and are focused on long-term economic viability.
150a) Which of the following is an example of the “Planet” bottom line in the Triple Bottom Line framework?Implementing a recycling program for
waste materials
151b) Which metric would be most relevant to the “”People”” bottom line in the Triple Bottom Line framework?
a) Net profit margin b) Employee turnover rate
c) Energy consumption d) Return on investment (ROI)
Employee turnover rate
152c) EcoMinds Ltd. reported the following initiatives: constructing a solar-powered warehouse and reducing plastic
usage in packaging. Under which bottom line would these initiatives be classified?
Planet
153d) What is the primary goal of the Triple Bottom Line framework?Measuring a company’s performance in
financial, social, and environmental terms
154Case Study: Water Utilities Services (WUS) is involved in water distribution and water bottle operations. The company’s performance is evaluated using Economic Value Added (EVA) and the Return on Capital Employed (ROCE) set by the regulator at 7.00%.
Data Provided:
Revenue from Water Distribution Operation (WDO): ₹555 Crore Revenue from Water Bottle Operation (WBO): ₹186 Crore Operating Cost for WDO: ₹460 Crore
Operating Cost for WBO: ₹119 Crore Finance Charges: ₹46 Crore
Tax Rate: 30%
Capital Employed as per Regulator for WDO: ₹1,558 Crore
155a) Calculate the Economic Value Added (EVA) for WUS₹5.98 Crore
{EVA=NOPAT−(WACC×Capital
Employed)
NOPAT=Operating Profit−Tax}
156b) Assess whether WUS complies with its acceptable ROCE level set by the regulatorNo, ROCE is below 7.00%
157c) Identify a method to improve WUS’s profitability.Increase NOPAT or reduce capital
employed
158Case Study: Match the following:
a) Task Environemnt in context of capability i.e., resources, core competences
b) Culture, beliefs, and assumptions of the organisation
c) Environment in context of competitors, markets,regulations,
d) Stakeholders’ influence and expectations
a) Strengths and Weaknesses
b) Vision and Values
c) Opportunities and Threats
d) Mission and Objectives
159Performance pyramid called as SMART
160Identify level of Bargaining price of buyer & Supplier
161ROI: Suborganisation & relative
RI: absolute
162DLT (Distributed ledger technology) is a decentralized database with many members. The digital ledger’s data is
extremely secure
163MCQ related to ” Which is not covered under Hyper Disruptive Model” (SM page no. 5.29)
164IT/IM Strategy not implemented due to which reason?

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