M.B.A. (Part (Semester II) (New CBCS Pattern) Examination, 2018
International busines (Paper XIII)
Day and Date Friday, 30-11-2018 Total Marks 70
Time 2.30 p.m. to 5.00 p.m.
Instructions Question No. 1 is compulsory.
Attempt any two questions from Q. Q. 3 and Q. 4.
Attempt any two questions from Q. Q. 6 and Q. 7.
1. Case Study. 14
Wal-Mart is the example of the low cost strategy and it has fine-tuned low margin,
high inventory turnover and volume selling. Volume buying in turn enables
lower costs of goods. Furthermore, Wal-Mart demands vendors forgo all other
amenities and quote the lowest price. In some circumstances, Wal-Mart buyers
go to vendor premises to work on cost reduction.
In addition to becoming a supplier to the world's largest retailer, a successful
vendor may also become a category manager. As such, the vendor is given the
information and latitude to manage the product category for Wal-Mart. Teams
replace one-on-one relationships as best exemplified in the creation of the
Procter and Gamble/Wal-Mart vendor-retailer 'win-win relationship'.
A total investment of billion resulted in the Retail Link computer/satellite
system. Point-of-purchase information is exchanged with vendor partners in
addition to the maintenance of a 104-week rolling history of every item in the
Wal-Mart distribution system. The logistics and information systems permit
store focused and store-within-store (department) operations quite adaptable
to local markets. It enables each store and each department manager to know
exactly their own sales, margins and profits absolutely and relatively to other
stores and departments. Portable scan guns used in the store are reloaded
each day to enable an associate to know the status of any product in that store.
Each department effectively becomes an individual shop proprietor with all the
attendant feelings of ownership.
Wal-Mart executives are not reliant only on computer-generated information.
Each week, they fly out to the stores across the nation to gain tacit knowledge
about local markets and circumstances. The traditional Saturday morning
meeting back at Bentonville enables that knowledge to the shared with
others.
Each store is within a day's drive of a distribution centre that replenishes 85%
of all inventories (versus 50-65% for competitions). New concepts such as
merchandise assembly, cross-docking and accelerated deliveries are continually
being introduced into the distribution system. Buyers must respond to any store
inquiry within the day (the 'sundown' rule).
Another key to Wal-Mart's success, according to Sam Walton, to identify
the items that can explode into big volume and big profits if you smart enough
to identify them and take the trouble to promote the.' Walton dedicated himself
to instilling the 'thrill of merchandising' into his 'associate-partners.' Today,
merchandising is practised with the prime goal of maximizing inventory turnover
and supporting the everyday low price (EDLP) position. Detailed planograms,
are prepared and featured items are seasonally correct, key items. Furthermore,
item promotions are single-priced and are featured on tables, checkouts, end
caps, sidekicks and 4 way displayers.
Heavy advertising serves not to highlight specific merchandise items but
instead the EDLP and friendly service positioning. The primary media vehicle
is television supported by once-a-month, non-sale flyers. The objective is to
become the McDonalds of retailing and build a global brand recognizable around
the world.
Explain successful operating procedures of Wal-Mart in USA. 7
Explain regarding EDLP policy introduced by SAM Waltson. 7
2. Write Short Notes (any two) 14
Stages of Internationalization.
Drivers of Economic globalization.
Absolute cost advantage theory.
3. Write Short Notes (any two) 14
World Bank.
WTO.
European Union.
Set P
4. Write Short Notes (any two) 14
Define and explain the meaning of multinational corporations. Explain factors
contributing for the growth of MNC's in India
Explain product life cycle theory of International Business.
What is the meaning of F.D.I. Explain different factors influencing FDI.
5. Define International Business. Explain advantages and problems of international
business also discuss differences between international and domestic
business. 14
6. Explain the importance of international trade policies. Explain the following trade
policies.
Tariffs.
Subsidies.
Import Quota.
Voluntary export restraints. 14
7. Explain Role of china and India in global Markets. Explain if china is threat or opportunity to India.