STUDENT'S INITIATIVE BY

ADMISSIONS COMMITTEE, IIM BODH GAYA

 IIM BODH GAYA
MBA ADMISSIONS 2022

UPCOMING CAMPUS

PI KIT FOR MBA 2022

B Y A D M I S S I O N S C O M M I T T E E ,

I I M B O D H G A Y A

A reference guide for aspirants.

This kit will help you prepare for the upcoming interviews.

It contains frequently asked questions from all the

domains of Management along with some generic and

graduation-specific questions.
 TABLE OF
CONTENTS
TIPS FOR VIRTUAL INTERVIEW • P. 4-5

PI-QUESTION BANK• P. 6-11

CURRENT AFFAIRS • P. 12-23

REFERENCE MATERIAL

MARKETING • P. 24-32

STRATEGY • P. 33-42

FINANCE • P. 43-51

ECONOMICS • P. 52-56

STATISTICS • P. 57-63

OPERATIONS • P. 64-72

IT & ANALYTICS • P. 73-75

CONSULTING • P. 76-78

OB & HRM • P. 79-89

 VIRTUAL
INTERVIEW
VIDEO INTERIVIEW

Video interviews can be intimidating, but

this is because you have never given
one before. Once you have a couple
under your belt, they will feel just like
any regular interview. For the most part,
the same basic principles need to be
abided by, except this time you are on
camera. As video interviews are
becoming more prevalent, it would be
useful to acquaint yourself with the
technology before the interview. By
following these tips, you will be in a
great position to nail the interview, and
it can be an excellent opportunity to
show off your prowess with specific
technologies.

04
 DOS AND DON'TS FOR
VIRTUAL INTERVIEW

DOs
Familiarize yourself with the technology beforehand. Try talking to a friend through it the
day before your interview.
Interview in a room where you are not going to be disturbed.
Ensure the room's lighting is good, and make sure that whatever is behind you is
appropriate.
Prepare as though you would for a face-to-face interview.
Do set the camera up so that you'll be visible from the waist up.
Do test your internet connection on the day of the interview to be confident is working.
Do dress professionally & be well-groomed.
Do turn off your cell phone and close any other browsers so that you are no distracted.
Do clean the camera so that you don't appear blurry on the other end.
Do look straight into the camera so that it looks like you are looking directly at the
interviewer.
Do remember all essential nonverbal traits, including eye contact, smiling, and posture.
Do leave a pause after every question the interview panel asks. There might be a delay,
and you could end up interrupting the interviewer.
Do speak conversationally and try your best to build up a rapport with the interviewer.
Do follow the same basic etiquette as you would a regular interview.

DON'Ts
Don't refuse a video interview altogether.
Don't neglect your hygiene. Make sure you wash your face so that you still look
professional.
Don't have an unprofessional username. Always set the username mentioned by the
institute usually CATID_Name.
Don't go overboard on patterns or colors in your attire. Keep it professional.
Don't answer by looking into any notes beside. You should know what you want to talk
about off the top of your head.
Don't switch tabs unnecessarily.
Don't move around a lot in your chair.
Don't get distracted by anything going on at the interviewer's side of the conversation,
and don't have other programs open on your computer that could distract you.
Don't get flustered if there are glitches or connection problems. Glitches are an inherent
risk when dealing with online interviews, and there is often nothing you can do to prevent
them or stop them once they are occurring.

05
 PI QUESTIONS

GENERAL QUESTIONS

Describe yourself in 5 words.

What is the meaning of your name? How does it relate to your personality?
What are your key skills/ greatest strengths?
What are your weaknesses? What have you done to overcome them?
What is your greatest achievement?
What is your biggest failure or challenge? What did you learn from it?
Where do you see yourself five years down the line?
What are the qualities of a good manager?
What are your career goals?
What are your short-term goals?
What are your long-term goals?
How do you deal with failures?
How do you deal with criticism?
What have you learnt from your failures?
Who is your role model? What have you learned from them?
Describe a situation where you exhibited leadership.
How do you define success and how do you measure up to your own definition?
What are the newspaper headings that grabbed your attention?
Questions may come on: City, region, state you belong to. Be prepared with
name of politicians, and history of your area.
People with work-ex may be asked: Job profile details, company info,
competitors, major business areas.
Do you have any questions for us?

06
 PI QUESTIONS

MANAGEMENT BACKGROUND QUESTIONS

What do you know about Maslow’s theory of motivation?

What are the various types of Ecommerce Business Models
Distinguish between sales and marketing with help of examples.
What is IRR? What do you understand about NPV?
What are the different forms of ownerships of a business?
What do you understand by the brand image of a Company. Explain with
suitable example
What are corporate level strategies? Give examples.
What is Herzberg’s two factor theory?
What do you know about the BCG matrix?
What is the double entry system?
What is digital marketing? What are its various channels?
Do you know about Game theory?
What is the distinction between operating profit and gross profit?
What happens when the mean, median and mode of distribution are the
same?
What are the principles of general Management?
What are the 7Ps of marketing?
What do you understand by a bond ?
What are various types of bond risks?
What do you understand by an IPO?

07
 PI QUESTIONS

COMMERCE BACKGROUND QUESTIONS

What is debit and credit, & its significance? What is internal reconstruction?
Major differences between e-commerce & brick What is B.C.D.? It is from GST Basic Custom Duty2
and mortar stores. What is Break-even point?
How does a bank earn money? How is goodwill for a Sole proprietorship
How can you say a company is financially stable? calculated?
What are GAAPs? What is the operating cycle?
What are accounting standards and what is the Explain about Negotiable instruments Act
use of them? What are the different methods of calculating
Difference between common size and comparative depreciation
balance sheet. Your thoughts on the latest budget.
What is standard deviation & give a practical What is capital budgeting?
implication of it. What is STP analysis? STP analysis of organization
Accounting concepts, their significance and of your choice?
examples. What is your take on the current economy of India
What are the types of cash flow? and where is it going?
How to calculate GDP. What is the difference Tell us about the financial statement. Describe the
between real and nominal GDP. balance sheet, P&L, Trial Balance and its terms
What is CSR, SLR, CRR, repo rate, banking and briefly. (terms like contingent liabilities)
lending rates, economic affairs. What are derivatives?
Difference between accounting profit and What is inflation? What are the causes of inflation?
economic profit. Types of shares. Yesterday’s stock market closed
Types of accounting and general accounting rules. on?
Draw the graph of Put options. Difference between monetary policy and fiscal
Formula of weighted average cost of capital? policy.
Why balance sheet balances.

08
 PI QUESTIONS

ENGINEERING BACKGROUND QUESTIONS

Difference between AC and DC? Automation and its applications and uses in
What is a Transformer? Give a Practical the industry.
example of working of transformer How can you control the automated
Can a DC transformer exist? Why or why not? machines? Say a robotic arm?
Why is the frequency of AC in India 50 Hz while How can you control the automated
in America it's 60Hz? machines? Say a robotic arm?
What is HVDC? What is the difference between normality and
Can we transmit electricity underwater? molality?
What is an Electric Vehicle? Explain about Which company is the largest employer in the
working. world?
Explain the difference between DC, Servo and Explain the equations of the Higgs Boson
Stepper Motor? particle?(EEE)
Are electric vehicles viable in India, why or why Technologies for making websites
not? On which technology IIM BG website is
How has transistor revolutionised the running
electronic industry? Can you draw anything that you analyse during
How is the Shutdown process carried out? your code optimization and draw a graph of
What are different types of Salts found? Give how it varies with respect to LOC(Lines of
their chemical compositions. Code)?
What are different types of interference? Draw any SDLC model.
Real life example with respect to incoherent Tell me about Hibernate and Struts framework
interference? What’s meant by R-DBMS?
What are the 3 laws of motion? Tell me what is the difference between R-
DBMS and DBMS?
Different types of software development
methods ?
What is the difference between Waterfall
Model and Agile Model?

09
 PI QUESTIONS

ECONOMICS RELATED QUESTIONS

How do we calculate Nominal GDP? What is a homogeneous and heterogeneous

How is it different from Real GDP? product? Give one example of each.
Do you know about the Philips curve ? In which What is price elasticity of demand?
conditions does the philips curve fails? What is demand and the law of demand ?
Explain GDP at PPP ? What is supply and the law of supply?
How is it different from Nominal GDP ? Draw the demand and supply curves. Explain
Current rank of india in world GDP in term of the slope of these curves.
GDP at PPP & Nominal GDP. What is diminishing marginal utility?
Stagflation ? When it occurs in an economy? What are giffen goods/veblen goods/status
What is environmental economics ? goods?
Difference between public and private goods . What is the consumer surplus and the
Explain with example producer’s surplus?
What are causes of current slow down in the What is balance of payments?
automobile sector ? What is the GDP of India? Is it declining? Why?
Explain in Brief the economic history of India ? What do you know about the $5 trillion
Can you explain the India's Balance of payment economy vision of India?
crises of 1991 ? What is the law of demand? What are the
What is the difference between Micro and exceptions of the law of demand?
Macro economics? How will you categories petrol in terms of
What is opportunity cost? elasticity?
What are the different forms of market? What YES bank case!
are the basis on which these are divided? - What kind of policies RBI should take to
Monopoly monopolistic etc. overcome controversies.
What are the types of markets in economics? You know any recent policy launched by RBI.

10
 PI QUESTIONS
BSC BACKGROUND QUESTIONS
ZOOL O G Y ( HONS.) STAT S
All of a sudden from bio background to MBA. What do you mean by skewness? Which
Any specific reason? distribution has skewness .Also, can you draw
What do you know about coronavirus? How does that on the graph and what does that implies
it work? What's the difference between correlation and
What is the term called when a disease is covariance?
transferred from animal to human? Which error is used while hypothesis testing and
What is RNA? why?
What is the difference between RNA and DNA? What are options? And then what's the
What is the latest model of DNA that we study difference between options and future
today? contracts?
Take a paper and pen and draw the structure of Also why a general MBA in finance and not
double helix model of DNA. 'stats, data analytics or actuarial science'?

CS CHEM I S T R Y
Tell us something about carbon and its
What is a super computer and where do we use isomers with their structural formulas and a
it? peculiar thing about each isomer. Which
Difference between IOS and Android?(operating isomer of carbon is football shaped?
system based) What is the difference between isobar, isotope
What is cloud? Where is it used? and isomers?
Write a program of printing the first 10 prime We fill air that is of normal temperature in a
numbers (C language)An easy integration cycle tyre. But if we ever let that air out, it’s
problem. cold. How and why?
Difference between Object and procedural Tell us something about Wuhan and the virus.
based programming? Which stream from chemistry do you like?
If you are to order t-shirts for a coaching class Why?
having 300 students, then how much quantity of What gives colour to transition metals?
each size will you order? In the lab, if someone gets burnt by an acid like
Where do you use c language? Which type of H2SO4. What should be put on it? What kind of
language is it? Base (weak or strong?)
Why is insulin different from other proteins
chemically?
11
 NAT I O NAL I S S U ES /
EVENT S /NEWS

SUPR E M E C OURT ALLOWED THE CENTRAL V I S T A P R O J E C T

The Supreme Court had reserved orders on the fate of the Central Vista project including the
construction of a new Parliament building and Central Secretariat.
https://www.hindustantimes.com/india-news/supreme-court-clears-redevelopment-plan-for-central-vista-
project/story-SZgVS5fOQrSQxTRT7bQmmO.html

NEW N A T I O NAL EDUCATION POLICY APPRO V E D B Y U N I O N

CABI N E T
The Union Cabinet approved the New Education Policy and renamed the ministry of human resource and
development as the Ministry of Education.
https://timesofindia.indiatimes.com/home/education/news/national-education-policy-2020-all-you-need-to-
know/articleshow/77239854.cms

CHIE F M I N ISTER’S LIST

Recent state elections saw change in the hands of power with Uttar Pradesh, Assam, Kerala and West
Bengal grabbing the spotlight
https://www.india.gov.in/my-government/whos-who/chief-ministers

DCGI A P P R OVES ANTI-COVID DRUG DEVELOP E D B Y D R D O

The DCGI recently granted permission for emergency use of the drug as an adjunct therapy in moderate to
severe Covid patients.
https://www.pib.gov.in/PressReleasePage.aspx?PRID=1717007

12
 NATI OI ONAL
NAT NALI SI SSSUUES
ES/ /
EVENT
EVENTS S /NEWS
/NEWS
INDI A I N T O KYO OLYM PICS 2021
India finished 48th on the medal tally in Tokyo, its highest ranking in over four decades with 7 medals (1
Gold, 2 Silvers, and 4 Bronze)
https://timesofindia.indiatimes.com/sports/tokyo-olympics/india-in-tokyo/tokyo-olympics-2020-india-
finishes-48th-best-in-four-decades-33rd-in-terms-of-overall-medals-won/articleshow/85168821.cms

GENE R A L B IPIN RAWAT PASSES AWAY

Chief of Defence Staff Gen Bipin Rawat, his wife and 11 others died after the Mi-17V5 helicopter crashed in
the southern state of Tamil Nadu.
https://www.business-standard.com/about/who-is-bipin-rawat

FARM B I L L S REPEALED
In a televised address to the nation, Prime Minister of India Narendra Modi apologized to the farmers and
announces repealing of three Farm Bills following a year long farmers' protest in borders of Delhi.
At long last, farmers call off year-long protests as govt agrees to all demands | Latest News India - Hindustan
Times

PEGA S U S S PYWARE AND INDIA

In India, the Pegasus Project investigations alleged that the Pegasus spyware was used on ministers,
opposition leaders, political strategist and tacticians, journalists, activists, minority leaders, supreme court
judges, religious leaders, administrators like Election Commissioners and heads of Central Bureau of
Investigation (CBI).
https://ifex.org/anatomy-of-the-pegasus-spyware-in-india/
https://www.theguardian.com/news/2021/oct/27/indian-supreme-court-orders-inquiry-into-states-use-of-
pegasus-spyware

13
 I NTERNATI O NAL
EVENT S 2 0 2 1
2021 in 6 minutes by Vox
https://youtu.be/sTTvilkyTLY

HUMA N A CTIVITIES: H UMAN ERROR OR NEGL I G E N C E I S A

KEY C A U S E OF THE WILDFIRE
Wildfires aren’t new for the world, but the increasing cases of such has sent alarming signals over the past
few years. The recent Wildfires in Siberia and California are few situations that perfectly depict the rapid
climate change.
https://www.space.com/2021-record-wildfire-season-from-space
https://earth.org/what-causes-california-wildfires/
https://www.nature.com/articles/d41586-021-02509-3

MASS I V E C ARGO SHIP TURNS SIDEWAYS, CO M P L E T L Y

BLOC K S S U EZ CANAL

While the whole world is already suffering from the pandemic, all of a sudden, the sea route transport got
disrupted by one cargo ship and made all the ships in the Indian ocean stay where ever they are
https://www.dogonews.com/2021/3/29/massive-cargo-ship-blocking-the-suez-canal-is-finally-dislodged

MOME N T S OF TOKYO O LYMPICS 2020

Despite the pandemic in 2020, the Tokyo 2020 Olympics took place in mid-year 2021. Nevertheless, the
event saw many memorable moments, from historic sprinting wins to legendary gymnast Simone Biles
drawing praise for her mental health stance to the scandal over a Belarusian sprinter and unforgettable
throw by Neeraj Chopra.
https://www.aljazeera.com/news/2021/8/9/olympics-review-the-highs-lows-and-controversies-of-tokyo-
2020

14
 I NTERNATI
I NTERNAT I O NALO NAL
EVENTS
EVENT2S0 2 0 2 1
AMER I C A N TROOPS WITHDRAW FROM AFGHA N I S T A N
US military personnel leave Afghanistan amidst many issues after staying for over two decades. Is military
expenditure only the primary issue, or is there any other concern?
https://www.bbc.com/news/world-middle-east-53656220
https://www.nytimes.com/2020/02/29/world/asia/us-taliban-deal.html

THE F U T U R E OF INTERNET: META V E R SE

The Phrase Virtual reality needs no introduction for the present generation, but to bring it into our daily lives
is a great challenge for any. Here comes Mark with his idea of Metaverse
https://edition.cnn.com/2020/10/31/europe/poland-abortion-protests-scli-intl/index.html

FIRS T W . H .O. ENDORSED MALARIA VACCINE

Check out the only positive statement made by WHO Director-General Dr. Tedros Adhanom Ghebreyesus in
his tenure. One of the significant breakthroughs in medical science.
https://www.who.int/news/item/06-10-2021-who-recommends-groundbreaking-malaria-vaccine-for-children-
at-risk

COVI D I S STILL NOT OVER, AND THE ECONOM I C F A L L O U T I S

STAR T I N G TO BECOME VISIBLE
The whole world is waiting for the day to hear “No more Covid cases recorded today,” but it seems
impossible soon as the third wave has already hit many nations.
https://www.hopkinsmedicine.org/health/conditions-and-diseases/coronavirus/first-and-second-waves-of-
coronavirus

15
 BU S I NES S AND
T ECH NO L O GY
GST C O U N C IL DECIDES TO DEFER RATE HIKE O N T E X T I L E S
FROM 5 % T O 12%
The Goods and Services Tax (GST) Council on Friday put on hold proposed changes in the levy on textiles
that were to take effect from January 1. It held back the hike to 12% from 5% that was approved in
September.
https://economictimes.indiatimes.com/news/economy/policy/gst-council-decides-to-defer-rate-hike-on-
textiles-from-5-to-12/articleshow/88627329.cms?
utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

CRYP T O E X CHANGES BET ON NFTS AMID REG U L A T O R Y

CONC E R N
Indian cryptocurrency exchanges seem to have taken a shine to Non-Fungible Tokens (NFTs). At least half a
dozen crypto platforms are foraying into the NFT space.
https://economictimes.indiatimes.com/markets/cryptocurrency/crypto-exchanges-bet-on-nfts-amid-
regulatory-concerns/articleshow/88643603.cms?
utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

DRAF T E - COMMERCE POLICY, RULES TO BE R E L E A S E D

TOGE T H E R SOON
The government will soon circulate revised versions of the ecommerce policy and ecommerce rules to spell
out comprehensive guidelines for all online transactions, covering all digital commerce and service providers
https://economictimes.indiatimes.com/industry/services/retail/draft-ecommerce-policy-rules-to-be-released-
together-soon/articleshow/88578236.cms?
utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

16
 BU
BUSSIINES
NESSS AND
AND
TTECH
EC HNO
NOLLOOGY
GY
GST C O L L E CTIONS AT RECORD 1.3 L CRORE F O R 6 T H M O N T H
IN A R O W , C OLLECTIO NS GROW 13% IN DEC.
India's goods and services tax (GST) revenue posted another strong month, rising 13% from a year ago to
₹1.30 lakh crore in December, official data released Saturday showed.
https://economictimes.indiatimes.com/news/economy/finance/gst-revenue-collection-at-rs-1-29-lakh-crore-in-
december/articleshow/88632698.cms

BANK S ' B A D LOAN GROWTH LIKELY TO SLOW A S R E C O V E R Y

GATH E R S P ACE: RBI
The Reserve Bank of India (RBI) expects bad loan growth to slow at banks under extreme macroeconomic
stress as the recovery gathers pace, but warned about the precarious position of small and medium
enterprises.
https://economictimes.indiatimes.com/industry/banking/finance/banking/banks-bad-loan-growth-likely-to-slow-
as-recovery-gathers-pace-rbi/articleshow/88578315.cms?
utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

TESL A : M O ST VALUABLE CAR COMPANY

Tesla overtakes Toyota to become the most valuable car manufacturing company in the world, as the
company’s stock price hits record high.
https://www.forbes.com/sites/sergeiklebnikov/2020/07/01/tesla-is-now-the-worlds-most-valuable-car-
company-with-a-valuation-of-208-billion/?sh=6a3893e65334

INDI A A D D S RECORD NUMBER OF UNICORNS I N 2 0 2 1

2021 has been a fantastic year for the Indian start-ups as the country has added a record number of unicorns
in the list to become 3rd largest unicorn ecosystem in the world, replacing United Kingdom.
https://www.moneycontrol.com/news/business/startup/your-guide-to-indias-startup-unicorns-of-2021-
7876201.html

17
 BU
BUSSIINES
NESSS AND
AND
TTECH
EC HNO
NOLLOOGY
GY
FACE B O O K TO META
GFacebook rebrands its holding company as Meta which will encompass Facebook, the applications like
Instagram, WhatsApp and the virtual reality product company Oculus.
https://www.theguardian.com/technology/2021/oct/28/facebook-name-change-rebrand-meta

PARA G A G A RWAL BECOMES CEO OF TWITTE R

The 37 years old, India born computer scientist Parag Agarwal replaces Jack Dorsey as the CEO of the micro
blogging platform.
https://www.indiatoday.in/technology/news/story/parag-agrawal-now-twitter-ceo-elon-musk-says-us-benefits-
greatly-from-indian-talent-1882330-2021-11-30

SEMI C O N D U CTOR SHORTAGE

The global chip shortage has become an ongoing crisis, affecting more than 150 industries including car,
computer, graphic cards and other consumer electronics product markets.
https://timesofindia.indiatimes.com/business/india-business/semiconductor-shortage-cabinet-approves-rs-
76000-crore-incentive-plan-to-woo-manufacturers/articleshow/88298699.cms

RISE O F N FT
The NFT market has boomed exponentially in 2021 as the market was able to generate a massive trading
volume of over $23 billion.
https://www.theguardian.com/technology/2021/dec/16/nfts-market-hits-22bn-as-craze-turns-digital-images-
into-assets

18
 BU
BUSSIINES
NESSS AND
AND
TTECH
EC HNO
NOLLOOGY
GY
THE F A C E B OOK GLITCH
Massive internet outage across globe caused by Facebook, WhatsApp, Instagram went down for hours.
https://www.india.com/news/world/breaking-massive-internet-outage-across-globe-some-of-worlds-biggest-
sites-reported-down-4724336/

REDD I T V S HEDGEFUNDS: GAMESTOP SHORT S Q U E E Z E

Reddit investors fuel GameStop stocks to surge, causing major financial consequences for certain hedge
funds and large losses for short sellers.
https://www.moneycontrol.com/news/world/explained-why-gamestops-stock-surge-is-shaking-wall-street-
6414691.html

BILL I O N A I RE SPACE RACE

The billionaire space race is the rivalry among entrepreneurs who have entered the space industry from other
industries - particularly computing. This private industry space race of the 21st century involves sending
rockets to the ionosphere (mesosphere and thermosphere), orbital launch rockets, and suborbital tourist
spaceflights.
https://www.dailymail.co.uk/sciencetech/article-10358487/Space-billionaires-flying-Mars-roundup-space-
highlights-2021.html

MERG E R S & ACQUISITIONS

Sony Picture Networks mergers with Zee Entertainment
Oracle acquires Cerner
Tata Sons acquires Air India
Microsoft acquires Nuance
Tata Digital Ltd. acquires Big Basket & 1MG
Baxter acquires Hillrom
Wipro acquires Capco
AMD acquires Xilinx (China Approval Pending)
HDFC Life acquires Excide Life
Nvidia acquires Arm
Erricson acquires Vonage

19
 S PO RTS
MAX V E R S T APPEN WON HIS MAIDEN F1 WO R L D D R I V E R S '
CHAM P I O NSHIP
Red Bull's Max Verstappen finishes P1 seals his maiden F1 title by beating title rival Lewis Hamilton of
Mercedes in a last-lap thriller at the season-ending Abu Dhabi GP.
https://news.sky.com/story/formula-1-lewis-hamilton-misses-out-on-record-eighth-f1-world-title-after-drama-at-
abu-dhabi-grand-prix-12491965

CRIS T I A N O RONALDO RE-SIGNS FOR MANCHE S T E R U N I T E D .

Man Utd has reached an agreement with Juventus to re-sign Cristiano Ronaldo for €15m (£12.9m) plus a
further €8m (£6.9m) in add-ons for the Portugal captain on a two-year contract with the option to extend for a
further year.
https://www.espn.in/football/soccer-transfers/story/4465497/

LION E L M E SSI LEAVES BARCELONA AND SIG N S W I T H P S G

Lionel Messi has completed his move to Paris Saint-Germain after signing a two-year contract with an option
for a third - worth £25m per year after tax, plus bonuses.
https://www.nbcnews.com/news/world/lionel-messi-signs-2-year-contract-paris-saint-germain-n1276530

THE M I L W A UKEE BUCKS WON THE NBA CHA M P I O N S H I P

The Milwaukee Bucks completed an incredible postseason run by beating the Phoenix Suns in NBA Finals in
six games to win their first NBA championship in 50 years. It’s the first championship for Giannis
Antetokounmpo.
https://www.nytimes.com/2021/07/20/sports/basketball/milwaukee-bucks-nba-finals-championship.html

TYSO N F U R Y DEFEATS DEONTAY WILDER

In their memorable trilogy's third and final bout, Fury dropped Deontay Wilder twice before finishing him via
knockout in Round 11 to defend his WBC and lineal titles inside T-Mobile Arena in Las Vegas.
https://www.bbc.com/sport/boxing/58860290

20
 S PO RTS
AUST R A L I A WON THE T 2 0 W ORLD CUP TIT L E
Australia won their maiden T20 World Cup title as they defeated New Zealand in the final by 8 wickets. A
target of 173 in a global final is never easy, but Marsh and David Warner achieved the target in 18.5 overs.
https://edition.cnn.com/2021/11/14/sport/t20-world-cup-final-new-zealand-australia-spt-intl/index.html

NOVA K D J O KOVIC LIFTS FRENCH, AUSTRALI A N O P E N

& WI M B L E D ON TITLES
Novak Djokovic lifts French, Australian Open & Wimbledon Titles, only missing the US Open.
https://timesofindia.indiatimes.com/sports/tennis/top-stories/2021-flashback-the-year-of-novak-
djokovic/articleshow/88535263.cms

TOM B R A D Y WINS HIS SEVENTH SUPER BOWL R I N G

Tom Brady, at 43 beats father time as he steered the Tampa Bay Buccaneers, the worst franchise in American
ball sports to a comfortable 31-9 victory over the defending champions Kansas City Chiefs to extend his
record for Super Bowl wins to seven in his tenth appearance (both all-time high).
https://www.bbc.com/sport/american-football/55975394

ARGE N T I N A DEFEATS BRAZIL TO WIN THE C O P A A M E R I C A

Argentina beat Brazil 1-0 in the Copa America final to secure the national team’s first title in 28 years, and
Lionel Messi finally lifted his first major trophy for the national team.
https://www.bbc.com/sport/football/57776158

ITAL Y D E F EATS ENGLAND TO WIN EUROPEAN C H A M P I O N S H I P

TITL E
Italy defeated England 3-2 in a penalty shoot-out in the Euro 2020 final at Wembley Stadium in London and
lifted their second European Championship trophy.
https://www.bbc.com/sport/football/51198762
21
 ENT ERTAI NM ENT
VETE R A N F ILM ACTOR DILIP KUMAR PASSES A W A Y A T 9 8
Veteran actor Dilip Kumar, who enthralled India with 'Devdas' & 'Mughal-e-Azam', passes away at 98 on 7th July.
The actor was admitted to the intensive care unit (ICU) on Wednesday (June 29), after reportedly complaining of
breathlessness.
https://www.business-standard.com/article/entertainment/javadekar-pitches-for-private-participation-in-52nd-
iffi-edition-121011600817_1.html

INDI A G E T S THREE NOMINATIONS AT THE INT E R N A T I O N A L

EMMY A W ARDS 2021
India made its presence felt with three nominations, including Vir Das for his Netflix special, Vir Das: For India,
Nawazuddin Siddiqui for his role in Serious Men and Sushmita Sen for Aarya. There were a total of 44
nominees across 11 categories from the world over.
https://www.tribuneindia.com/news/entertainment/india-gets-three-nominations-at-the-international-emmy-
awards-2021-315172

TAMI L F I L M ‘KOOZHANGAL’ PICKED AS INDIA ’ S E N T R Y F O R

2022 O S C A R’S BEST INTERNATIONAL FEATU R E
Debutante filmmaker PS Vinothraj’s Koozhangal (Pebbles) has been selected as India’s official entry to Oscars
2022 under the international feature film category. The announcement was made on Saturday, October 23.
https://theprint.in/india/tamil-film-koozhangal-picked-as-indias-entry-for-2022-oscars-best-international-
feature/755653/

DIVY A D U T TA WINS THE BEST ACTOR AWARD F O R ' S H E E R

QORM A ' A T DFW SOUTH ASIAN FILM FESTIV A L
Actor Divya Dutta, has won the best actor award at the DFW South Asian Film Festival. The award was
presented in Dallas in the United States. Directed by Faraz Ansari, Sheer Qorma also won the Best Of The Fest
film award.
https://www.hindustantimes.com/entertainment/bollywood/divya-dutta-on-sheer-qorma-winning-an-
international-award-it-s-pride-month-what-could-be-better-than-this-101623861071705.html
22
 ENT ERTAI NM ENT
PRAS O O N J OSHI HONOURED WITH INDIAN FI L M P E R S O N A L I T Y
OF TH E Y E AR AT 52ND IFFI
Padma Shri awardee, Prasoon Joshi, was honoured at the International Film Festival of India (IFFI), Goa, as
the Indian Personality of the Year. The award was presented to him by the Union Minister I&B, Shri Anurag
Thakur.
https://theprint.in/ani-press-releases/prasoon-joshi-honoured-with-indian-film-personality-of-the-year-2021-at-
52nd-iffi/773876/

KASH I F I L M FEST PITCHES UP AS FILMMAK I N G H U B

The three day film festival along with the proposed Film City project will serve as an effective tool to prevent
local talent from venturing outside Uttar Pradesh in search of opportunities in creative fields.
https://timesofindia.indiatimes.com/city/varanasi/kashi-film-fest-pitches-up-as-filmmaking-
hub/articleshow/88531988.cms

HARN A A Z S ANDHU CROWNED MISS UNIVERS E 2 0 2 1

Harnaaz Sandhu made history on December 13 as she was crowned Miss Universe 2021 beating contestants
from 80 countries— 21 years after India last brought home the title.
https://www.thehindu.com/news/international/indias-harnaaz-sandhu-crowned-miss-universe-
2021/article37942613.ece

‘SPI D E R - M AN: NO WAY HOME’ BECOMES THE F I R S T P O S T

PAND E M I C FILM TO CROSS THE $1 BN MARK G L O B A L L Y .
The new spiderman movie has managed to cross the one billion dollars mark at the box office within 12 days
of its release. It is the third fastest film to do so in the history of movie revenues.
https://economictimes.indiatimes.com/magazines/panache/spider-man-no-way-home-crosses-1-bn-mark-
globally-becomes-highest-earner-of-the-pandemic/articleshow/88514493.cms

23
 CREATING VALUE

MARKETING
 WHAT IS MARKETING?

According to Mr. Philip Kotler (The Father of Modern

Marketing), marketing is the process by which companies
engage customers, build customer relationships, and
create customer value in order to capture value from
customers in return.

MARKETING CONCEPTS DIFFERENCE BETWEEN

CUSTOMER AND CONSUMER?
Production Concept – The idea that
consumers will favor products that are Customer – Buyer, not necessarily a user.
available and highly affordable, so, the Consumer – Might be a buyer, but
organisation should focus on improving necessarily a user.
production and distribution efficiency. A product/service is designed to give
maximum satisfaction to the consumer and
Product Concept - The idea that consumers is advertised in a manner that it makes the
will favor products that offer the most maximum appeal to the customer.
quality, performance & features; so, the Ex. A mother(customer) buys a toy for her
organisation should devote its energy to kid(consumer).
making continuous product improvements.

Selling Concept – The idea that consumers

will buy enough of the firm’s products unless DIFFERENCE BETWEEN
the firm undertakes a large-scale selling and
PRODUCT AND SERVICE?
promotion effect.

Marketing Concept – A philosophy in which Product Service

achieving organizational goals depending on
knowing the needs and wants of target It is tangible It is intangible
markets and delivering the desired
Homogenous Heterogenous
satisfactions better than competitor’s do.

It is an object It is a process or
Societal Marketing Concept – The idea that a an activity.
company’s marketing decisions should
consider consumers’ wants, the company’s Transfer of No transfer
requirements, consumers’ long-run interests, ownership of ownership
and society’s long-run interests.
25
 MARKETING MIX CONCEPT?
The marketing mix is a crucial tool to help understand what
the product or service can offer and how to plan for a
successful product offering. The marketing mix is most
commonly executed through the 4P’s of marketing: Price,
Product, Promotion, and Place. An extension of this concept
also includes the 4C’s.

4P'S OF MARKETING 4C'S OF MARKETING

Product : The product can either be tangible Customer Value : Instead of focusing on the
product itself, the first C focuses on filling a
or an intangible service. Customers usually
void in the customer’s life. The customer
focus on quality, price, design, features and
makes the purchase decision & is, therefore,
functionality of the product. the most valuable resource.

Price : It's the amount that the customer pays Cost : Cost not only includes price of the
to purchase the product. Discount, payment item, but also may include things such as the
terms & credit period is considered. time it takes for the customer to get to your
location in order to buy your product, or
the cost of gas that it takes to get them there.
Place : The market where the product is sold
is known as place. These are the ways of
Convenience : The goal is to make the
distribution, channel & logistics via which the product cost effective and simple enough to
product reaches the customer. make it convenient for the customer to attain
the product without having to jump through
Promotion : It's a method of communication hoops.
by which the marketer provides information
about a product. It includes personal selling, Communication : It involves interaction
between the buyer & seller. This marketing
advertisements, word of mouth publicity etc.
strategy can very easily be implemented
through the use of social media.

26
 WHAT IS PRODUCT LIFE CYCLE?
Products, like people, have life cycles. The product life
cycle is broken into four stages: introduction,
growth, maturity, and decline. This concept is used by
management and by marketing professionals to decide when
it is appropriate to increase advertising, reduce prices,
expand to new markets, or redesign packaging.

PRODUCT LIFE CYCLE

Introduction : This is the phase when a new Growth : Demand begins to accelerate and the
product is first brought to the market. Sales size of the total market expands rapidly. It might
are low and creep along slowly. This phase also be called the “Take-off Stage”. Demand
includes a substantial investment in grows, production is increased, and its availability
advertising & a marketing campaign to make expands.
consumers aware of the product & its benefits.
Decline : The product tends to lose consumer
Maturity : As a product matures, it enters its appeal & sales drift downward because of the
most profitable stage, while the costs of increased competition as other companies
producing and marketing decline. emulate its success, sometimes with
enhancements or lower prices.

STAGE SALES PROFIT

Introduction Low/No sales No profits/ Losses as well

Growth Rapid sales increase Keeps on increasing

Maturity Reaches a peak & stagnates Reaches a peak & decreases

Decline Almost no sales No Profits

27
 SEGMENTATION, TARGETING &
POSITIONING
The STP process demonstrates the links between an
overall market and how a company chooses to compete in
that market. The goal of the STP process is to guide the
organization to the development and implementation of an
appropriate marketing mix.

SEGMENTATION, TARGETING & POSITIONING

Market Segmentation can be defined as the Positioning (also referred to as product
process of splitting a market into smaller positioning) is the target market’s
groups with similar product needs or perception of the product’s key benefits and
identifiable characteristics, for the purpose features, relative to the offerings of
of selecting appropriate target markets. competitive products.

Targeting (or target market selection) refers

to an organization’s proactive selection of a
suitable market segment (or segments) with
the intention of heavily focusing the firm’s
marketing offers and activities towards this
group of related consumers.

B2B B2C

B2B marketing is used by businesses B2C marketing is used by businesses

that sell products or provide services that sell products or provide services
to other businesses to end-user consumers
B2B MARKETING
Buyers make decisions on a Buyers make decisions on an
VS rational basis emotional basis
B2C MARKETING
Small, targeted customer base Huge customer opportunities

Marketing is relationship driven Marketing is product driven

Has a longer sales cycle and a

Has a faster buying process
longer buying process

28
 WHAT IS SWOT ANALYSIS?

SWOT analysis a study undertaken by an organization to

identify its internal strengths and weaknesses, as well
as its external opportunities and threats.

SWOT ANALYSIS
Strengths describe what an organization Weaknesses stop an organization from
excels at & what separates it from the performing at its optimum level. Weakness
competition: a strong brand, loyal customer can be of any form : a weak brand, higher-
base, a strong balance sheet and so on. It than-average turnover, high levels of debt, an
tells about the aspects of the business that inadequate supply chain or lack of capital.
provide value to the product or service.

Opportunities refer to favorable external Threats refer to the factors that have the
factors that could give an organization a potential to harm an organization. For
competitive advantage. For example, example, a drought is a threat to a wheat-
mergers, joint ventures, moving into new producing company, as it may destroy or
market segments, market vacated by a reduce the crop yield. Other common threats
competitor. include things like rising costs for materials,
increasing competition, tight labor supply and
so on.

29
 WHAT IS BRANDING?
Branding is a marketing practice in which a company
creates a name, symbol or design that is easily
identifiable as belonging to the company. This helps to
identify a product and distinguish it from other products
and services.

WHY IS BRANDING PUSH MARKETING AND

IMPORTANT? PULL MARKETING
Branding is absolutely critical to a business In push marketing, you are trying to bring
because of the overall impact it makes on your products to your customers. Just as the
your company. Branding can change how name suggests, you are trying to “push” a
people perceive your brand, it can drive new particular product on your target audience.
business and increase brand awareness. Usually, businesses use push marketing in
Branding is what makes a memorable the following scenarios:
impression on consumers but it allows your
customers and clients to know what to expect 1. When launching a new product
from your company. It is a way of 2. When operating in a niche market
distinguishing yourself from the competitors
and clarifying what it is you offer that makes
you the better choice. Your brand is built to In pull marketing, the customers know what
be a true representation of who you are as a they are looking for, and they often look for
business, and how you wish to be perceived. the benefits themselves. In this case, the
user engages more with the product pre-
purchase, and goes out and searches
information actively. This can, for example,
be car dealers, lawyers, and products such as
household appliances, beds, computer
screens, etc. Businesses will use pull
marketing:

1. When the user knows what he or she is

looking for
2. When branding is of great importance

20
30
 DIFFERENT TYPES OF SEGMENTATION

Market segmentation is a business practice relying on research

that leads the direction of how a business divides its target
market into smaller, more manageable groups based on common
ground they share. Customers of each market segment have
similar characteristics that businesses can leverage to optimize
their marketing, advertising & sales efforts.

GEOGRAPHIC DEMOGRAPHIC
Target customers based on a predefined The process of dividing a market through
geographic boundary. Differences in variables such as age, gender, education level,
interests, values, and preferences vary family size, occupation, income and more. This
dramatically throughout cities, states, is one of the most wildly used strategies
amongst marketers.
religions, and countries.

PSYCHOGRAPHIC BEHAVIORAL
Focus on the intrincsic traits the target Break down the way customers go through
consumer has. Psychographic traits can their decision making and buying processes.
range from values, personalities, interests, Attitudes towards the brand, the way they use
attitudes, conscious and subconscious it, and their knowledge base are all behavioral
motivators, lifestyles, and opinions. examples.

SELLING MARKETING

Emphasis is on the product Emphasis is on the customer wants

Company first makes the product and then Company first determines customer
figures out how to sell it wants and then figures out to make it.
Management is sales volume oriented Management is profit oriented.
Profit through sales volume Profit through customer satisfaction
Planning is short run oriented Planning is long run oriented.
Product first, then customer Customer first, then product.
Let the buyer be aware Let the seller be aware

21
31
 GENERAL TERMS

Market – The set of all actual and potential SOME MORE IMPORTANT
buyers of a product and service.
Needs – State of felt deprivation.
QUESTIONS
Wants – The form human needs take as they (ANSWERS VARY
are shaped by culture and individual
INDIVIDUALLY)
personality.
Demands – Human wants that are backed by Why do you want to pursue marketing?
buying power. Sell me this object (things like pen,
Product – Product is anything that can be bottle or any other thing).
offered to a market for attention, acquisition Tell me about your marketing experience
or consumption. (if you have any).
Service - Any act or performance that one What qualities of a marketer do you
party can offer to another that is essentially possess?
intangible and does not result in the Your favourite company/companies?
ownership of anything. It’s production may or Why?
may not be tied to a physical product. Which is your recent favourite ad? Why?

REFERENCES
Principles of Marketing by Kotler, Armstrong and Agnihotri
https://www.mbaskool.com/business-concepts/marketing-and-strategy-
terms/6778-4-ps-of-marketing.html
https://catmediatheagency.com/4-ps-of-marketing-strategy/
https://www.investopedia.com/terms/s/swot.asp
https://www.brandingmag.com/2015/10/14/what-is-branding-and-why-
is-it-important-for-your-business/

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 STRATEGY
STRATEGY
NEED A MASTER PLAN?
 WHAT IS BCG MATRIX
BCG matrix is a framework created by Boston Consulting
Group to evaluate the strategic position of the business
brand portfolio and its potential. It classifies business
portfolio into four categories based on industry
attractiveness (growth rate of that industry) &
competitive position (relative market share).

BCG MATRIX
Question marks are the brands that require Stars operate in high growth industries and
much closer consideration. They hold low maintain high market share. Stars are both
market share in fast growing markets cash generators and cash users. They are the
consuming large amount of cash and primary units in which the company should
incurring losses invest its money, because stars are expected
Strategic choices : Market penetration, to become cash cows and generate positive
market development, product development, cash flows.
divestiture. Strategic choices : Vertical integration,
horizontal integration, market penetration,
Dogs hold low market share compared to market & product development.
competitors and operate in a slowly growing
market. In general, they are not worth Cash cows hold high market share but
investing in because they generate low or operate in slowly growing market. They are
negative cash returns. most profitable for the brand and generate
Strategic choices : Retrenchment, divestiture, high volumes of cash.
liquidation. Strategic choices : Product development,
diversification, divestiture, retrenchment.

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24
 ANSOFF MATRIX
The Ansoff Matrix is a strategic planning tool that provides
a framework to help executives, senior managers, and
marketers devise strategies for future growth. The matrix
suggests that a business’ attempts to grow depend on
whether it markets new or existing
products in new or existing markets.

Products
Exisiting New

Exisiting
THE
ANSOFF
Markets

MATRIX
New

VALUE CHAIN ANALYSIS

Value chain analysis(VCA) is a process where a Primary Activities are the activities that are
firm identifies its primary & support activities directly concerned with creating and delivering
that add value to its final product and then a product or service.
analyse these activities to reduce costs or
increase differentiation. Value chain represents Support Activities are not directly involved in
the internal activities a firm engages in when production but may increase effectiveness or
transforming inputs into outputs. efficiency.
Support Activities

Primary Activities
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35
 PORTER'S FIVE FORCES ANALYSIS
Porter's Five Forces is a model that identifies and analyzes
five competitive forces that shape every industry and helps
determine an industry's weaknesses and strengths. Porter's
model can be applied to any segment of the economy to
understand the level of competition within the industry and
enhance a company's long-term profitability.

PORTER'S FIVE FORCES ANALYSIS

Threat of new entrants - This force determines Threat of substitutes -This force is especially
how easy (or not) it is to enter a particular threatening when buyers can easily find
industry. If an industry is profitable and there substitute products with attractive prices or
are few barriers to enter, rivalry soon better quality and when buyers can switch from
intensifies. When more organizations compete one product or service to another with little
for the same market share, profits start to fall. cost.

Bargaining power of suppliers - Strong Rivalry among existing competitors - This force
bargaining power allows suppliers to sell is the major determinant on how competitive
higher priced or low-quality raw materials to and profitable an industry is. In competitive
their buyers. This directly affects the buying industry, firms have to compete aggressively for
firms’ profits because it has to pay more for a market share, which results in low profits.
materials.

Bargaining power of buyers - Buyers have the

power to demand lower price or higher product
quality from industry producers when their
bargaining power is strong. Lower price means
lower revenues for the producer, while higher
quality products usually raise production
costs.

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36
 PESTEL ANALYSIS
A PESTEL analysis is a framework or tool used by
marketers to analyse and monitor the macro-environmental
(external marketing environment) factors that have an
impact on an organisation. The result of which is used to
identify threats and weaknesses which is used in a
SWOT analysis.

PESTEL ANALYSIS

These factors determine These factors scrutinize the

the extent to which a social of the environment of These factors include all those
governmen, may influence the market, and gauge that influence or are
the economy or a certain determinants like cultural determined by the surrounding
industry trends, demographics, etc environment

Rise in inflation rate These factors pertain to There are certain laws that
would cause companies to innovations in technology that affect the business
increase the prices may affect the operations of environment in a certain
the industry and the market country
favorably or unfavorably

28
37
 COCA-COLA : BRAND CONSISTENCY

Coca-Cola is one of the most well-known brands in the world. Their red and
white logo is recognized in countries all around the world and people
identify their brand with feeling good and staying refreshed. They have
kept their brand identity and product consistent for over 130 years, and
their logo has stayed relatively the same and their marketing slogans and
taglines have continued to promote the same message. It is this level of
consistency for over 130 years that has made Coca-Cola one of the
biggest brands in the world.

Today, Coca-Cola owns a huge percentage of the beverage market and has
numerous products under different names and brands, however their most
popular product, the infamous, iconic can of Coke, has remained relatively
untouched. This just goes to show that when it comes to developing a
recognizable and popular brand, consistency can go a very long way.

Coca-Cola spends an estimated $4.3 billion on marketing and advertising

every year. The company has all the power in the world to marketing in
whichever way they choose. However, year after year, time and time again,
the company favors consistency and this is what has paid off for them in
the long run. The mistake that many business owners and marketers seem
to make is a lack of consistency when it comes to their marketing and
brand development.

29
38
 APPLE (CREATING A MOVEMENT)

Apple did not fall into success over night. For anyone who has followed the
story of the company, they would know that Apple had many road blocks to
navigate through before making it to the top of their game. The one thing that
helped Apple on its race to the top, however, was their ability to create a
movement. This movement helped the brand to create a
cult like following that over the years, has stood the test of time.

In all of their marketing efforts, Apple have not just showcased their
products but they have also created the image that their products are
visionary and life changing. Sure, they have developed some amazingly
advanced technologies, however, in order to get average people excited by
this, they have created beautiful, aesthetically pleasing gadgets that are not
just for tech nerds. Their marketing has also helped to convey this by making
people feel as if they need their products in order to enhance their life in
some way. They have worked hard to win over consumers and have created a
tribe of followers who are consistently excited about every product and every
new announcement.

Even though there are now many competing brands with similar technology
like Microsoft or Samsung, it is Apple products that people line up overnight
for, it is Apple products that make headlines in the news. Creating this type
of fandom does take a few special ingredients. Once you have been able to
identify what makes your product or service so awesome, you have to market
it in a simple and thought-provoking way. Look at Apple’s ads for instance.
There is nothing fancy about them, they are simple, clear and create a feeling
of being part of something ultra-modern and ultra-innovative. On top of that
you also have to deliver exceptional customer experiences. Remember, to
develop a tribe that is going to follow your brand, you have to make them
absolutely fall in love with what you are offering.
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29
39
 COLGATE (CREATES TRUST)

Colgate has taken a very different approach over the years and has chosen to
educate consumers instead of forcing them. This strategy has helped the
brand to not only sell tubes of toothpaste but to also become one of the
leading and most trusted toothpaste products in the world. In marketing
there are a few ways to promote trust, but nothing is more effective than
educating customers and proving just how your product can work to benefit
your consumers.

As part of Colgate’s marketing strategy, they started an Oral Care Center,

which is packed with information and videos on oral care and hygiene. They
also share valuable information with consumers on how to brush and floss
effectively and how to prevent the development of cavities and oral diseases.
This strategy may seem obvious for a toothpaste brand; however, any
business can adopt this strategy and make it work for them. Most consumers
love receiving free information and learning about things that impact their
lives or the lives of those around them. To replicate this strategy for your
business, think about what your consumers really want to know and what
information would make their lives easier.

Studies have also shown that when you offer something of value to your
consumers for free, they are more likely to order from you in the future and
are more likely to recommend your brand. Colgate may have a multi-million-
dollar marketing budget to make spiffy videos and create content, however
all you really need to do is go into the minds of your consumers and deliver
to them what they really want. With even the smallest budget you can create
blogs, e-books, videos, emails and even e-courses which can all help to
educate your customers, generate long-term relationships and build trust.

31
29
40
 STARBUCKS (SOCIAL STRATEGY)

Social media is important as it helps to establish brand identity, authority and

trust. It also helps consumers to engage with your brand on a more intimate level,
which helps to develop stronger relationships over time. Starbucks is the perfect
example of a business that is crushing it when it comes to social media. They are
clued in and tapped in with what their fans want and run a hugely
successful Facebook, Twitter and Instagram account.
There are a few reasons that Starbucks is so successful on social media and
some of our favorites include-
Their clever use of videos, gif’s and images on their feed
Their custom images that go along with their tweets
That they actually respond back to followers, especially on Twitter
That they are up to date with current events and use them to their marketing
advantage
Their creation of several unique hashtags that have gone viral

Starbucks also run promotions and competitions through their social media
platforms and many have gone on to be viral sensations around the web. Most
recently, Starbucks became a trending news topic over their red Christmas coffee
cups and pumpkin flavored coffees.
Starbucks definitely spends a huge portion of their marketing budget on social
media and has teams of people to help organise and orchestrate everything,
however there is still room for your smaller brand to learn from them. Running
successful social media is not necessarily about thinking of some grand scheme
to get people hooked (like red Christmas cups). Rather, it is about making
connections with your fans and offering them more of what they are looking for.
Craft a social feed that reflects your support and dedication towards your fans, as
well as your knowledge in your industry. This includes sharing articles and images
and responding to comments, tweets and messages. Combine all of this with
some soft entertainment value and some frequent promotions and you will be well
on the way to creating a solid social presence.

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29
41
 NIKE (SELL A STORY)

Nike offers consumers information but of a different kind. For every new pair
of runners, for every new bit of technology, Nike offers a story not just
product specs. Even on their main homepage, Nike paints a story about some
of their famous shoes and the journey they have taken from idea to
conception. Nike sells the story, which in turn helps to sell their products.
Every product or service that you offer has some kind of story and if you can
get creative enough, you may be able to turn that story into something
powerful for your brand.

Writing a blog or using social media tools like Instagram, is also a great way
to paint a visual story of your brand. Out of all the Fortune 500 companies,
Nike has one of the strongest presences on Instagram and they use the
platform in a very clever way. They promote strength and fitness, they
promote health, they promote things that are so much bigger than just a pair
of runners. This indirect style of marketing is what gets consumers
interested in a brand or product and it is also what keeps them following
along with the story. This ultimately helps to keep your brand fresh in their
mind.

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42
 FINANCE
MANAGING CAPITAL

FINANCE
 WHAT IS FINANCE?

Finance is the study of money and how it is used.

Specifically, it deals with the questions of how an
individual, company or government acquires the money
needed - called capital in the company context - and how
they then spend or invest that money.

FINANCIAL FINANCIAL STATEMENTS

MANAGEMENT Cash Flow Statement: The Cash Flow Statement
starts with net income from the Income
Financial Management means planning,
Statement; then it shows adjustments for non-
organizing, directing and controlling the cash expenses, non-expense purchases such as
financial activities such as procurement capital expenditures, changes.
and utilization of funds of the enterprise. It
means applying general management Income statement: The Income Statement
principles to financial resources of the shows a company’s revenues, costs, and
enterprise. expenses, which together yield net income.
4 key roles-
Capital structure of the firm vis-a-vis Balance sheet: A balance sheet is a summary of
debt or equity financing. the financial balances of an individual or
Dividend decisions. organization. Assets, liabilities and ownership
equity are listed as of a specific date, such as
Capital budgeting decisions.
the end of its financial year.
Working capital management.

Change in Equity: Statements of change in

FINANCIAL ACCOUNTING equity are one of the financial statements that
show the shareholder contribution, and
Financial accounting is a specialized movement in equity. and equity balance at the
branch of accounting that keeps track of a end of the accounting period.
company's financial transactions. Using
standardized guidelines, the transactions Notes to financial statements: It is the
important statement that most people forget
are recorded, summarized, and presented in
about.This is the mandatory requirement by
a financial report or financial statement
IFRS that entity has to disclose all information
such as an income statement or a balance
that matters to financial statements and help
sheet.
users to have a better understanding.

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 ACCOUNTING EQUATION
The fundamental accounting equation, also called the
balance sheet equation, represents the relationship
between the assets, liabilities, and owner's equity of a
person or business. It is the foundation for the double-
entry bookkeeping system. Assets=Liability+Equity.

FINANCIAL ANALYSIS BY
GAAP V/S IFRS
RATIOS
Liquidity ratios-
GAAP- Generally accepted accounting
Current ratio = Current assets / Current
equation. (USA)
liabilities
IFRS- International financial reporting
Cash ratio = Cash and Cash equivalents /
standards.
Current Liabilities
IAS- Indian accounting standards. (India;
Financial leverage ratios-
derived from IFRS) Debt ratio = Total liabilities / Total assets
Debt to equity ratio = Total liabilities /
The primary difference between the two Shareholder’s equity
systems is that GAAP is rules-based and Interest coverage ratio = Operating income /
IFRS is principles-based. Interest expenses
Efficiency ratios-
Asset turnover ratio = Net sales / Total assets
Days sales in inventory ratio = 365 days /
AMMORTIZATION V/S Inventory turnover ratio
DEPRECIATION Profitability ratios-
Gross margin ratio = Gross profit / Net sales
Operating margin ratio = Operating income /
Amortization is the practice of spreading
Net sales
an intangible asset's cost over that asset's
Return on equity ratio = Net income /
useful life. Intangible assets are
Shareholder’s equity
not physical assets, per se.
Market value ratio-
Book value per share ratio = Shareholder’s
Depreciation is the expensing of a fixed
equity / Total shares outstanding
asset over its useful life. Fixed assets are
Earnings per share ratio = Net earnings / Total
tangible assets, meaning they are physical
shares outstanding
assets that can be touched. Price-earnings ratio = Share price / Earnings
per share
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 TIME VALUE OF MONEY
The time value of money (TVM) is the concept that
money available at the present time is worth more than
the identical sum in the future due to its potential
earning capacity.

ANNUITY AND PERPETUITY

Annuity
This core principle of finance holds that
An annuity is a series of payments made at
provided money can earn interest, any
equal intervals. Examples of annuities are
amount of money is worth more the sooner it
regular deposits to a savings account, monthly
is received. TVM is also sometimes referred
home mortgage payments, monthly insurance
to as present discounted value.
payments and pension payments. Annuity
The time value of money draws from the idea
starting from 0th year is annuity due.
that rational investors prefer to receive
money today rather than the same amount of Annuity Formula
money in the future because of money's
potential to grow in value over a given period
of time. For example, money deposited into a
savings account earns a certain interest rate
and is therefore said to be compounding in
value.
Perpetuity
A perpetuity is an annuity that has no end, or a
Time Value of Money Formula stream of cash payments that continues
forever. There are few actual perpetuities in
existence.

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 WHAT IS A BOND?

A bond is a fixed income instrument that represents a

loan made by an investor to a borrower (typically
corporate or governmental). A bond could be thought of
as an I.O.U. between the lender and borrower that
includes the details of the loan and its payments

WHAT IS BOND YIELD? WHAT DO YOU MEAN BY

Bond yield is the return an investor realizes on a
COUPON IN FINANCE?
bond. The bond yield can be defined in different A coupon payment on a bond is the annual
ways. Setting the bond yield equal to its coupon interest payment that the bondholder
rate is the simplest definition. They are inversely receives from the bond's issue date until it
related. That is, if a bond's price rises, it's yield matures. Coupons are normally described in
falls, and vice versa. terms of the coupon rate, which is calculated
by adding the sum of coupons paid per year
WHAT IS FACE VALUE? and dividing it by the bond's face value

Face value is a financial term used to describe

the nominal or dollar value of a security, as
ZERO-COUPON BOND
stated by its issuer. For stocks, the face value is
the original cost of the stock, as listed on the A zero-coupon bond is a debt security that
certificate. For bonds, it is the amount paid to does not pay interest but instead trades at a
the holder at maturity, which is customarily deep discount, rendering a profit at maturity,
$1,000. The face value for bonds is often when the bond is redeemed for its full face
referred to as "par value" or simply "par." value. Some bonds are issued as zero-coupon
instruments from the start, while others
bonds transform into zero-coupon
HOW ARE BONDS PRICED? instruments after a financial institution strips
them of their coupons, and repackages them
Bonds are priced based on the net present value as zero-coupon bonds. Because they offer the
of all future cash flows expected from the bond. entire payment at maturity, zero-coupon
bonds tend to fluctuate in price, much more
so than coupon bonds. A zero-coupon bond is
also known as an accrual bond.

38
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 WHAT ARE SHARES/STOCKS?

Shares are units of ownership interest in

a corporation or financial asset that provide for an equal
distribution in any profits, if any are declared, in the
form of dividends.

TYPES OF SHARES/STOCKS

Common stocks- This stock may benefit Preferred stocks-preferred stock typically
shareholders through appreciation and does not offer appreciation in value or voting
dividends, making common stock riskier than rights in the corporation. However, the stock
preferred stock. Common stock also comes typically has set payment criteria; a dividend
with voting rights, giving shareholders more that is paid out regularly, making the stock
control over the business. In addition, certain less risky than common stock. Also,
common stock comes with preemptive rights, preferred stock may often be redeemed at a
ensuring that shareholders may buy new more beneficial price than common stock.
shares and retain their percentage of Because preferred stock takes priority over
ownership when the corporation issues new common stock, if the business files for
stock. bankruptcy and pays its lenders, preferred
shareholders receive payment before
common shareholders.

39
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 HOW TO RAISE CAPITAL?
There are 3 types of financing instruments that an
organization utilizes to raise capital- common shares,
bonds and preference shares.

COST OF CAPITAL COST OF DEBT AND EQUITY

Cost of capital is the required return The cost of equity is the return a company
necessary to make a capital budgeting requires to decide if an investment meets
project, such as building a new factory, capital return requirements.A firm's cost of
worthwhile. When analysts and investors equity represents the compensation the
discuss the cost of capital, they typically market demands in exchange for owning the
mean the weighted average of a firm's cost asset and bearing the risk of ownership
of debt and cost of equity blended together.
The cost of debt is the effective interest rate
a company pays on its debts. It’s the cost of
CAPM
debt, such as bonds and loans, among
The Capital Asset Pricing Model (CAPM) others.
describes the relationship between
systematic risk and expected return for
WACC
assets, particularly stocks. CAPM is widely The weighted average cost of capital (WACC)
used throughout finance for pricing risky is the rate that a company is expected to pay
securities and generating expected returns on average to all its security holders to
for assets given the risk of those assets finance its assets. The WACC is commonly
and cost of capital. referred to as the firm's cost of capital.
Importantly, it is dictated by the external
market and not by management.

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 WHAT IS HEDGING?

Hedging is a risk management strategy employed to

offset losses in investments. The reduction in risk
typically results in a reduction in potential profits.
Hedging strategies typically involve derivatives, such
as options and futures.

DERIVATIVES WHAT IS ARBITRAGE?

Derivatives are tools or securities that an Arbitrage occurs when an investor buys and
investor uses for different reasons sells related assets simultaneously in order to
take advantage of temporary price
including hedging. These securities are
differences. Because of the technology now
called derivatives because they are derived
employed in the markets, the only people who
from some underlying asset.
can truly take advantage of arbitrage
opportunities are traders with sophisticated
software since price inefficiencies often close
WHAT IS A MUTUAL FUND? in a matter of seconds.

A mutual fund is an investment vehicle made

up of a pool of money collected from many
investors for the purpose of investing in WHAT IS PORTFOLIO
securities such as stocks,bonds, money MANAGEMENT?
market instruments and other assets. Mutual
funds are operated by professional money Portfolio management is the art and science of
managers, who allocate the funds’ making decisions about investment mix and
investments and attempt to produce capital policy, matching investments to objectives,
gains and/or income for the funds’ investors. asset allocation for individuals and institutions,
A mutual fund's portfolio is structured and and balancing risk against performance.
maintained to match the investment Portfolio management is all
objectives stated in its prospectus. about determining strengths, weaknesses,
opportunities and threats in the choice of debt
vs. equity, domestic vs. international, growth
vs. safety, and many other trade-offs
encountered in the attempt to maximize return
at a given appetite for risk.

41
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 WAR-CHEST FOR FINANCE

GENERAL TERMS FINANCE JOBS

REVENUE - Revenue is the income that a Accounting Manager
business has from its normal business Chief Financial Officers
activities, usually from the sale of goods Cash Managers
and services to customers. Investment Banking Associates
EXPENDITURE - Expenditure is an outflow Credit Managers & Specialists
of money to another person or group to pay Financial Analyst
for an item or service, or for a category of Finance Officers & Treasurers
costs. Insurance & Risk Managers
NET INCOME - Net income is a measure of Investing Sales Traders & Associates
the profitability of a venture.
EQUITY - Equity is ownership of assets that
INTERVIEW QUESTIONS
may have debts or other liabilities attached
to them. Why do you want to pursue Finance?
ASSETS - An asset is any resource owned Have you ever invested in stock market?
by the business. Tell me about your work experience (if you
LIABILITIES - Liability is defined as the have any).
future sacrifices of economic benefits that Mention the financial implications of the
the entity is obliged to make to other sales cycle?
entities as a result of past transactions or Have you ever seen an annual report of a
other past events company?
NPV- Net present value as in discounted Do you have an investor as a role model?
from future cash flows accounting for time
value of money. LEARNING RESOURCES
IRR- The internal rate of return is a discount
Principles of Corporate finance by Brealey,
rate that makes the net present value (NPV)
Stewart C. Myers, Franklin Allen and
of all cash flows from a particular project
Pitabas Mohanty
equal to zero.
Corporate finance by Stephen A Ross,
Leasing- Financial Leasing is an alternative
Westerfield, Jeffery Jaffe, Bradford D
way of financing whereby a licensed leasing
Jordan and Ram Kumar Kakani
company (the “Lessor’) purchases an asset
investopedia.com
on behalf of its customer (the “Lessee”) in
cfainstitute.org
return for a contractually agreed series of
garp.org
payments.
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ECONOMICS
MANAGING WEALTH

ECONOMICS
 WHAT IS ECONOMICS?

"Economics is the science which studies human behavior

as a relationship between given ends and scarce means
which have alternative uses"-former London School of
Economics professor Lionel Robbins

SUPPLY AND DEMAND TYPES OF MARKET

Perfect Competition – Perfect competition
Supply – Supply of a commodity is the
is a market structure where there are
quantity of that commodity which the
numerous producers of a homogenous
producer wants to sell at a given price in the
product. No individual seller can control the
market. The law of supply states that as the
market price in a perfect competition. There
price of a commodity increases, the quantity
are no entry and exit barriers. Example of a
supplied by the producer also increases.
perfect competition in India: exact perfect
competition is not feasible but agricultural
Demand - Demand of a commodity is the
markets are a close example.
quantity of that commodity which the
consumer wishes to buy at a given price from
Monopoly – A monopoly is a market
the market. The law of demand states that as
situation in which there is only 1 producer
the price of a commodity increases, the
for a particular commodity. There is no
quantity demanded by the consumer
competition and no substitute goods in the
decreases.
market in a monopoly. Hence the producer
GDP is free to set prices according to his will.
GDP stands for Gross Domestic Product. GDP Example of monopoly in India: Indian
represents the monetary value of all goods Railways (However if privatisation of
and services produced in a country over a railways is done, then it would no longer
period of time. remain a monopoly).
The equation for calculating GDP is: GDP =
private consumption + gross investment + Oligopoly - Oligopoly is a market structure
government investment + government where there are a few number of firms
spending + (exports – imports). producing similar or homogeneous
products. The selling behaviour of one firm
The GDP growth rate of India for the 2nd influences the selling behaviour of other
quarter of 2019 fell to 4.5 per cent. This is firms. Examples of Oligopoly in India:
the lowest growth rate in last 6 years. Automobile market, steel, aluminium firms

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 WHAT IS MICROECONOMICS?

Microeconomics is the study of individuals, households and

firms' behavior in decision making and allocation of
resources. The study involves single consumer buying
behaviour, individual labour markets, firm theory,
production and consumption of a single firm, etc.

INFLATION EXCHANGE RATE

Inflation is the sustained increase of price Exchange rate is the price of one currency
level in an economy. in terms of another currency.
Inflation can be cost-push inflation (when Example: 1 US Dollar= 72 INR
supply cannot meet the level of demand and
Currency is said to depreciate when there is an
hence prices go up) and demand-pull
increase in the exchange rate (e.g. 1 US Dollar=73
inflation (when demand is so high that firms
INR) and it is said to appreciate when there is an
supply more at higher prices). decrease in the exchange rate (e.g. 1 US Dollar=71
INR).
RELATIONSHIP BETWEEN
INFLATION AND The real exchange rate deals with the relative
purchasing power of two currencies.
UNEMPLOYMENT
There exists an inverse relationship between
GST
the unemployment rate and the inflation rate
in an economy. As the rate of unemployment GST stands for Goods and Services Tax. It is a
increases, the rate of inflation in the value-added tax levied on most goods and
economy decreases and vice versa. This services sold for domestic consumption. The GST
relation is given by the Phillips Curve is paid by consumers, but it is remitted to the
government by the businesses selling the goods
and services. In effect, GST provides revenue for
the government.

(Please go through the following link to learn

more about GST, its advantages and its
introduction in India : https://cleartax.in/s/gst-law-
goods-and-services-tax )

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 WHAT IS MACROECONOMICS?

Macroeconomics is a branch of economics that studies

how an overall economy—the market systems that operate
on a large scale—behaves. Macroeconomics studies
economy-wide phenomena such as inflation, price levels,
rate of economic growth, national income, gross domestic
product (GDP), and changes in unemployment.

REPO RATE AND REVERSE CRR AND SLR

REPO RATE

Repo Rate : Repo Rate, or repurchase rate, is CRR : CRR stands for Cash Reserve Ratio.
the key monetary policy rate of interest at Cash Reserve Ratio is the share of a bank’s
which the central bank or the Reserve Bank of total deposit that is mandated by the Reserve
India (RBI) lends short term money to banks, Bank of India (RBI) to be maintained with the
essentially to control credit availability, latter in the form of liquid cash. The objective
inflation, and the economic growth. Repo Rate of CRR is to keep inflation under control.
in India is the primary tool in the RBI’s During high inflation in the economy, RBI
Monetary and Credit Policy. raises the CRR to lower the bank’s loanable
funds.
Reverse Repo Rate : The interest rate at which
the RBI borrows money from banks for the SLR : SLR stands for Statutory Liquid Ratio. In
short term is defined as Reverse Repo Rate. India, the Statutory liquidity ratio is the
The Reverse Repo Rate helps the RBI get Government term for the reserve requirement
money from the banks in times of need. In that commercial banks are required to
return, the RBI offers attractive interest rates maintain in the form of cash, gold reserves,
to them. The banks also voluntarily park Reserve Bank of India (RBI)- approved
excess funds with the central bank as it securities before providing credit to the
provides them with an opportunity to earn customers. The SLR to be maintained by
higher interest on surplus money lying idle. banks is determined by the RBI in order to
control the expansion.
Current Repo Rate: 5.15% (as of 4th Oct, 2019)
Current Reverse Repo Rate: 4.90% (as of 4th Current SLR of RBI: 18.50%
Oct, 2019) Current CRR of RBI: 4%

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 WHAT IS ECONOMIES OF SCALE?
Economies of scale are the cost advantages that a
firm obtains due to its increase in the level of
production. It reduces the per-unit fixed cost. As a
result of increased production, the fixed cost gets
spread over more output than before.

CURRENT TOPICS RELATED TO ECONOMICS

Economic slowdown in India US China Trade War
India’s GDP has fallen down to 4.5% in the The US China Trade war is an ongoing
July-September quarter of 2019-20. This is economic conflict between the world’s two
the lowest growth rate in last 6 years. The biggest economies-USA and China. This
economic slowdown is a result of the
trade war has affected the economies of
slowdown in the automobile industry, fmcg,
other countries across the world including
real estate and banking sector.
India.
(Go through the following link to know about
(Go through the following link for complete
the slowdown in details:
details:
https://finception.in/markets/indian-
http://www.forbesindia.com/article/special
economic-slowdown/?
/everything-you-need-to-know-about-
utm_source=part2&utm_medium=backarrow )
uschina-trade-war/53525/1 )

3 years of Demonetisation in India

Demonetisation was announced on November Abhijeet Banerjee wins Nobel
8 in 2016 declaring 86 per cent of the Abhijeet Banerjee, an economist of Indian
currency in circulation invalid. These were origin along with Esther Duflo and Michael
currency denominations of Rs 1,000 and Rs Kremer won the 2019 Economics Nobel
500. Prize for their work on finding new ways to
(Go through the follow link to see the impact tackle poverty.
and effects of demonetisation on the Indian (Go through the following link to know in
economy details about why they won the nobel prize:
https://economictimes.indiatimes.com/tdmc https://qz.com/india/1728042/why-did-
/your-money/demonetization-anniversary- banerjee-duflo-and-kremer-win-the-nobel-
decoding-the-effects-of-indian-currency- prize-this-year/ )
notes-ban/articleshow/61579118.cms?
from=mdr )
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 STATISTICS

INTERPRETING DATA

STATISTICS
 WHAT IS STATISTICS?
Statistics is the science that deals with the collection,
classification, analysis, and interpretation of numerical
facts or data, and that, by use of mathematical theories of
probability, imposes order and regularity on aggregates of
more or less disparate elements.

MEASURES OF CENTRAL TENDENCY

Mean : The arithmetic mean is the most Looking at the retirement age distribution (which
common measure of central tendency. It is has 11 observations), the median is the middle
simply the sum of the numbers divided by the value, which is 57 years:
number of numbers. The symbol "μ" is used 54, 54, 54, 55, 56, 57, 57, 58, 58, 60, 60
When the distribution has an even number of
for the mean of a population. The symbol "M"
observations, the median value is the mean of the
is used for the mean of a sample.
two middle values.
In the following distribution, the two middle values
The formula for μ is shown below: are 56 and 57, therefore the median equals 56.5
μ = ΣX/N, where ΣX is the sum of all the years:
numbers in the population and N is the 52, 54, 54, 54, 55, 56, 57, 57, 58, 58, 60, 60
number of numbers in the population.
Mode : The mode is the most commonly
occurring value in a distribution. Consider this
The formula for M is essentially identical:
dataset showing the retirement age of 11 people,
M = ΣX/N, where ΣX is the sum of all the
in whole years:
numbers in the sample and N is the number 54, 54, 54, 55, 56, 57, 57, 58, 58, 60, 60
of numbers in the sample. The below table shows a simple frequency
distribution of the retirement age data.
Median : The median is the middle value in The most commonly occurring value is 54;
distribution when the values are arranged in therefore the mode of this distribution is 54 years
ascending or descending order. Age Frequency
The median divides the distribution in half 54 3
(there are 50% of observations on either side
55 1
of the median value). In a distribution with an
odd number of observations, the median 56 1
value is the middle value.
57 2

58 2

60 2
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 POPULATION IN STATISTICS

In statistics, a population is a set of similar items or

events which is of interest for some question or
experiment. A statistical population can be a group of
existing objects or a hypothetical and infinite group of
objects conceived as a generalization from experience.

STANDARD DEVIATION RANDOM VARIABLE AND

AND VARIANCE ITS TYPES

A commonly used measure of dispersion is the A random variable, usually written X, is a

Standard Deviation which is simply the square variable whose possible values are numerical
root of variance. The variance of a dataset is outcomes of a random phenomenon. There
calculated by taking the arithmetic mean of the are 2 types of random variables, discrete and
squared differences between each value and continuous.
the mean value.
Population Variance: A discrete random variable is one which may
take on only a countable number of distinct
values such as 0,1,2,3,4. Examples of
Population Standard Deviation: discrete random variables include the number
of children in a family, the Friday night
attendance at a cinema, the number of
Sample Variance: patients in a doctor's surgery, the number of
defective light bulbs in a box of ten.

Sample Standard Deviation: A continuous random variable is one which

takes an infinite number of possible values.
Continuous random variables are usually
measurements. Examples include height,
Standard error is the standard deviation of weight, the amount of sugar in an orange, the
the sampling distribution of a statistic. time required to run a mile.
A continuous random variable is not defined
at specific values. Instead, it is defined over
an interval of values, and is represented by
the area under a curve (in advanced
mathematics, this is known as an integral).
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 WHAT IS SAMPLE IN STATISTICS?
In statistics and quantitative research methodology, a
data sample is a set of data collected and the world
selected from a statistical population by a defined
procedure. The elements of a sample are known as
sample points, sampling units or observations.

COVARIANCE
Covariance is a measure of the relationship Where:
between two random variables. The metric rxy – the correlation coefficient of the linear
evaluates how much – to what extent – the relationship between the variables x and y.
variables change together. In other words, it xi – the values of the x-variable in a sample
is essentially a measure of the variance x̅ – the mean of the values of the x-variable
between two variables (note that the variance yi – the values of the y-variable in a sample
of one variable equals the variance of the ȳ – the mean of the values of the y-variable
other variable). However, the metric does not Correlation can be of three types:
assess the dependency between variables. Positive Correlation – when the value of one
The formula for calculating covariance of variable increases with respect to another.
sample data is shown below. Negative Correlation – when the value of
one variable decreases with respect to
another.
No Correlation – when there is no linear
dependence or no relation between the
x = the independent variable two variables.
y = the dependent variable
n = number of data points in the sample

CORRELATION TYPES OF DISTRIBUTIONS

The correlation coefficient that indicates Bernoulli Distribution
the strength of the relationship between two Uniform Distribution
variables can be found using the following Binomial Distribution
formula: Normal Distribution
Poisson Distribution
Exponential Distribution

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 TWO MAIN STATISTICAL METHODS
Descriptive statistics, which summarize data from a
sample using indexes such as the mean or standard
deviation, and inferential statistics, which draw
conclusions from data that are subject to random
variation (e.g., observational errors, sampling variation).

BERNOULLI DISTRIBUTION UNIFORM DISTRIBUTION

A Bernoulli distribution has only two possible When you roll a fair die, the outcomes are 1
outcomes, namely 1 (success) and 0 (failure), to 6. The probabilities of getting these
and a single trial. So the random variable X outcomes are equally likely and that is the
which has a Bernoulli distribution can take basis of a uniform distribution. Unlike
value 1 with the probability of success, say p, Bernoulli Distribution, all the n number of
and the value 0 with the probability of failure, possible outcomes of a uniform distribution
say q or 1-p. are equally likely. A variable X is said to be
Here, the occurrence of a head denotes uniformly distributed if the density function
success, and the occurrence of a tail denotes is:
failure. Probability of getting a head = 0.5 =
Probability of getting a tail since there
are only two possible outcomes. The graph of a uniform distribution curve
The probability mass function is given by: looks like
px(1-p)1-x where x € (0, 1).
It can also be written as

BINOMIAL DISTRIBUTION
When you roll a fair die, the outcomes are 1 to 6. The probabilities of getting these outcomes are
A distribution where only two outcomes are possible, such as success or failure, gain or loss, win
or lose and where the probability of success and failure is same for all the trials is called a
Binomial Distribution. There are only two possible outcomes. Head denoting success and tail
denoting failure. Therefore, probability of getting a head = 0.5 and the probability of failure can
be easily computed as: q = 1- p = 0.5. The mathematical representation of binomial distribution is
given by:

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 POISSON DISTRIBUTION EXPONENTIAL DISTRIBUTION
A distribution is called Poisson distribution when Exponential distribution is widely used for
the following assumptions are valid: survival analysis. From the expected life of a
1. Any successful event should not influence the machine to the expected life of a human,
outcome of another successful event. exponential distribution successfully delivers
2. The probability of success over a short interval the result.
must equal the probability of success over a A random variable X is said to have an
longer interval. exponential distribution with PDF:
3. The probability of success in an interval f(x) = { λe-λx, x ≥ 0
approaches zero as the interval becomes smaller. Typical graph of an exponential distribution
Some examples are: The number of emergency is shown in the below figure
calls recorded at a hospital in a day, number of
customers arriving at a salon in an hour, number
of printing errors in each page of a book, etc.
The PMF of X following a Poisson distribution is
given by : for x=0,1,2...

NORMAL DISTRIBUTION
Normal distribution represents the behavior of most of the situations in the universe. The large sum
of (small) random variables often turns out to be normally distributed, contributing to its widespread
application. Any distribution is known as Normal distribution if it has the following characteristics:
1. The mean, median and mode of the distribution coincide.
2. The curve is bell-shaped and symmetrical about the line x= μ
3. The total area under the curve is 1.
4. Half of the values are to the left of the center and the other half to the right.
The PDF of a random variable X following a normal distribution is given by:

The mean and variance of a random variable X which is said to be normally distributed is given by:
Mean -> E(X) = µ; Variance -> Var(X) = σ^2

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 REGRESSION
Regression is a statistical measurement used in finance, investing, and other disciplines that
attempts to determine the strength of the relationship between one dependent variable (usually
denoted by Y) and a series of other changing variables (known as independent variables).
Regression is of two types: Linear regression and multiple linear regression.
The general form of each type of regression is:
Linear regression: Y = a + bX + u
Multiple regression: Y = a + b1X1 + b2X2 + b3X3 + ... + btXt + u, where:
· Y = the variable that you are trying to predict (dependent variable).
· X = the variable that you are using to predict Y (independent variable).
· a = the intercept.
· b = the slope.
· u = the regression residual.

FEW ADDITIONAL QUESTIONS

TO PREPARE
1. Describe Bayes Theorem.
2. What is conditional probability?
3. When are two random variables said to be independent?
4. What is a probability density function?
5. What is a cumulative distribution function?
6. What do you mean by ANOVA test?
7. What does the residual in the regression equation signify?
8. What do you mean by skew-ness of a distribution?
9. What is a probability mass function?
10. How does the curve of a normal distribution look like?

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 OPERATIONS
MANAGEMENT

MANAGING SYSTEMS

OPERATIONS
MANAGEMENT
 OPERATIONS MANAGEMENT

Operations management is the administration of

business practices to create the highest level of
efficiency possible within an organization. It is
concerned with converting materials and labor into
goods and services as efficiently as possible to
maximize the profit of an organization.

DECISIONS MADE BY QUALITY ASSURANCE &

OPERATIONS MANAGERS QUALITY CONTROL
PLANNING THE PRODUCTION SCHEDULE QUALITY ASSURANCE
This entails deciding how much to produce and It is an assurance activity, emphasizing on the
what to produce.This information would be standards and procedures to be followed while
used to make purchasing and staffing developing an application.

decisions.
It is a preventive action taken before hand to
ensure the product that developed are defect
INVENTORY MANAGEMENT free.
They must arrange the inventory in the
warehouse. They also facilitate the movement It is a systematic action necessary to provide
of inventory from the warehouse to the retail enough confidence that a product or service will
facilities or the customer. satisfy the given requirements for quality.

QUALITY CONTROL QUALITY CONTROL

It is a Corrective action.
This may include inspection of materials, and
Inspection to verify that the developed application
the use of quality tools such as control charts.
follows the standards and procedures by using the
checklist.

QUALITY PRINCIPLES
System approach to management Customer focus

Leadership Factual approach to decision making

Involvement of people Continual improvement

Process approach Mutually beneficial supplier relationship

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 SUPPLY CHAIN MANAGEMENT

Supply Chain refers to the chain of activities involved in

delivery of the products or services to the customer. The
supply chain for a firm in the service industry begins from
the acknowledgement of the customer requirement to final
fulfilment of the service to the customer.

SUPPLY CHAIN INVOLVES THE MOVEMENT OF

MONEY
INFORMATION
MATERIAL
THE ACTIVITIES THAT ARE INVOLVED IN SUPPLY CHAIN MANAGEMENT ARE:

Inbound Logistics: The logistics associated Service: The activities associated with the
with initial movement of the raw material to the delivery of the product eg. in-store staff and
manufacturing unit and subsequent movement post-sales service, fulfilling warranty, etc.
within the unit. Support Areas: Financial management, Human
Outbound Logistics: The logistics associated Resource Management, Legal Control, Quality
with movement of the finished goods from the departments which are indirectly involved in the
end of the manufacturing production line till the production of the product.
end user. Procurement: Purchase of raw material or
Marketing and Sales: Involve gathering services which are transformed into or used to
customer requirements and then fulfilling them reach the final product.
through an exchange process.

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 LEAN OPERATIONS

Lean operations focus on running an organization by

providing greater customer satisfaction while using as
few resources as possible. The objective of lean
operations is two-fold: Creating value for customers and
eliminating waste.

There are several areas of waste that Inventory : Having too much stock on hand is a
companies should consider reviewing when waste of money for a company because it costs
taking on lean operations. money to store inventory. The longer it sits
Jobs : Salaries and benefits are not cheap for around not being sold, the more it costs your
an organization. It’s not good business practice company. However, you need to make sure to
to eliminate necessary positions or to squeeze have enough stock to meet customer demand
your workforce. However, it’s vital to ensure and this is where optimization comes into play.
that all employees in an organization serve an Your company should keep an optimal level of
essential function and that they are adequately inventory at the right time and at the right
trained to do so. Lean operations would clean place, no more and no less, to ensure lean
up these messes, and make sure that each operations.
employee is doing a necessary job to the best of
their ability. Transportation : Transportation is another area
where waste and inefficiency can cause a
Production times : Inefficiency and waste can company to bleed money. Your company
rear their heads in the production process. Lean shouldn’t be transporting goods unnecessarily
operations require that you eliminate any or transporting them at the wrong times.
inefficiencies or delays in production process.
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 Q U A LITY

The totality of features and characteristics that bear on

the ability of a product or service to satisfy a given need.

ECONOMIC ORDER QUANTITY

The economic order quantity is the optimum S: Ordering Cost or Fixed Cost
quantity of an item to be purchased at one time in D: Annual Quantity Demanded
order to minimize the combined annual costs of H: Holding Cost or Variable Cost
ordering and carrying the item in inventory.

Economic Order Quantity(EOQ)= √((2*D*S)/H)

PUSH AND PULL STRATEGY

LINE BALANCING
IN SUPPLY CHAIN
Pull Supply Chain – Under pull supply chain, the Line balancing is the process of assigning
process of manufacturing and supplying is tasks to workstations.
driven by actual customer demand. In this type Goal : Obtain task grouping that represent
of supply chain logistics, inventory is acquired approx. equal time requirements since this
on a need-basis. The benefits of this type of minimizes idle time along the line and results
planning include less wastage in the case of in a high utilization of equipment and labor.
lower demand. The problem, however, is that the Why is line balancing important?
company might not have enough inventory to 1. It allows us to use labor and equipment
meet rising demands due to unforeseen factors. more efficiently.
For example, an auto repair shop that only 2. To avoid fairness issues that arise when one
orders parts that it needs. In this case, the workstation must work harder than another.
business waits until it gets an order to procure Assigning Tasks to Workstations
the parts required for the repair. Some Heuristic (Intuitive) Rules :
Assign tasks in order of most following
Push Supply Chain – Under push supply chain, tasks.
the logistics are driven by long-term projections Assign tasks in order of greatest positional
of customer demand.For example, at the end of weight(Positional weight is sum of each
the summer season, clothing brands start to task’s time and the times of all following
manufacture more warm clothes. This type of tasks).
planning becomes valuable to companies as it
helps them plan for events in the future .
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 VALUE CHAIN
The value chain is the chain of activities involved in the
delivery of a product or service which add value to the final
product.For example,consider two restaurants one offers self-
service and one offers waited service, the second restaurants
can price its items at a higher price because of its value chain
that offers food to the customers' tables.

ABC INVENTORY
LOGISTICS MANAGEMENT
CLASSIFICATION SYSTEM
Inventory optimization is critical in order to Logistics management is a supply chain
keep costs under control within the supply management component that is used to meet
chain. Yet, in order to get the most from customer demands through planning, control
management efforts, it is efficient to focus on and implementation of the effective movement
items that cost most to the business.The and storage of related information, goods and
Pareto principle states that 80% of the overall services from origin to destination. Logistics
consumption value is based on only 20% of management helps companies reduce
total items. In other words,demand is not expenses and enhance customer service.
evenly distributed between items: top sellers
vastly outperform the rest. When the flow of goods is from the customer
The ABC approach states that, when reviewing back to the manufacturer, it is known as
inventory, a company should rate items from A reverse logistics, for example in cases of
to C, basing its ratings on the following damaged goods or for product recycling.
rules:
A-items are goods for which annual Logistics management involves numerous
consumption value is the highest. The top elements, including:
70-80% of the annual consumption value of Selecting appropriate vendors with the
the company typically accounts for only 10- ability to provide transportation facilities
20% of total inventory items.
C-items are, on the contrary, items with the Choosing the most effective routes for
lowest consumption value. The lower 5% of transportation
the annual consumption value typically
accounts for 50% of total inventory items. Discovering the most competent delivery
B-items are the inter-class items, with a method
medium consumption value. Those 15-25%
of annual consumption value typically Using software and IT resources to
accounts for 30% of total inventory items. proficiently handle related processes

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 SIX SIGMA
Six Sigma strategies seek to improve the quality of the output
of a process by identifying and removing the causes of defects
and minimizing variability in manufacturing and business
processes. Six-Sigma approach requires a maximum of 3.4
defects per million opportunities (of making defects).

DMAIC AND DMADV JUST-IN TIME MANUFACTURING

For Manufacturing Organizations, Six-Sigma Just in time (JIT) manufacturing is a workflow
adopts the DMAIC approach :
methodology aimed at reducing flow times

Define – Definition of the problem, goals within production systems, as well as response

and scope of improvement times from suppliers and to customers. JIT

Measure – Collection of data by manufacturing helps organizations control
measurement of current output parameters variability in their processes, allowing them to
Analyze – Analysis of the data to identify increase productivity while lowering cost.
significant causes of variation
Improve – Process improvement of the
causes identified above M. Sepheri, a JIT expert, provides a list of
Control – Analysis of the output to verify methodologies of JIT manufacturing :
output matches customer specification
Make it right the first time
In Service Organizations, Six Sigma adopts Setup reduction
the DMADV approach: Lot sizes of one
Uniform plant load
Define – Definition of the problem, goals Balanced flow
and scope of improvement Skill diversification
Measure – Collection of data by Control by visibility
measurement of current output parameters Preventive maintenance
Analyze – Analysis of the data to identify Fitness for use
significant causes of variation Compact plant layout
Design – The results of internal tests are Streamlining movements
compared with customer wants and needs. Supplier networks
Any additional adjustments needed are Worker involvement
made. Cellular manufacturing
Verify – While the product or service is Pull system
being released and customer reviews are Housekeeping
coming in, the processes may be adjusted.

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 RISK
Operational risk summarizes the uncertainties a company
faces when it attempts to do its day-to-day business
activities. It can result from breakdowns in internal
procedures, people and systems, known as systematic
risk.It can be classified as a variety of unsystematic risk,
which is unique to a specific industry.

Cycle Time Lead Time

Cycle time is the average time between Lead time is the time difference between the
completions of successive units in a process . product order and the receipt of the product.
Ideally, takt time should be equal to cycle time.
In case cycle time is less than takt time, there Throughput Time
are chances of overproduction and over- Throughput time is the time taken for the
staffing. product to pass through the manufacturing
process. This duration includes the time
In case cycle time is more than takt time, it required for the production process as well as
means the firm is not able to meet customer the other time periods associated with
demand, leading to dissatisfaction. converting raw materials into finished goods.

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 WARCHEST FOR OPERATIONS

KEY DEFINITIONS
Break-Even Point : The volume of output at Perpetual Inventory System : System that
which total cost and total revenue are equal. keeps track of removals from inventory
continuously thus monitoring current levels of
Value Analysis : Examination of the functions each item. It employs RFID, Barcode etc.
of parts and materials in an effort to reduce
cost and/or improve product performance . Carrying Cost : Cost to hold an item in the
inventory for a particular period of of time,
Material Requirement Planning : It is a planning usually a year.
technique that creates a schedule for producing
or ordering all the items in an end item's bill of Purchasing Cycle : Series of steps that begin
materials based on fixed manufacturing lead with a request for purchase and end with
times. notification of shipment received in
satisfactory condition.
Periodic Inventory System : Physical count of
items in inventory made at periodic intervals. Pegging : The process of identifying the
parent items that have generated a given set
Kanban : A manual system that signals the need of material requirements for an item
for parts or materials.

OM JOBS LEARNING RESOURCES

Operations Manager https://alison.com/learning-path/operations-
Supply Chain Manager management
Operations Analyst https://managementhelp.org/operationsman
Inventory Manager agement/index.html
Quality Manager https://study.com/academy/lesson/operatio
Process Improvement Specialists ns-management-definition-
Inventory Planner fundamentals.html
Buyer Quality Controller https://www.managementstudyguide.com/pr
Logistics Coordinator oduction-and-operations-management.html
Investopedia.com

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DRIVING DECISIONS

IT
IT ANALYTICS
ANALYTICS
 INFORMATION TECHNOLOGY

Information technology (IT) is the use of any computers,

storage, networking and other physical devices,
infrastructure and processes to create, process, store,
secure and exchange all forms of electronic data.

BLOCK CHAIN INDUSTRY 4.0

Industry 4.0 refers to a new phase in the
A block chain is, in the simplest of terms, a
Industrial Revolution that focuses heavily on
time-stamped series of immutable records of
interconnectivity, automation, machine
data that is managed by a cluster of
learning, and real-time data. Industry 4.0,
computers not owned by any single entity.
also sometimes referred to as IIoT or smart
Each of these blocks of data (i.e. block) is
manufacturing, marries physical production
secured and bound to each other using
and operations with smart digital technology,
cryptographic principles (i.e. chain).
machine learning, and big data to create a
Go through the below link to know about
more holistic and better connected
block chain in details:
ecosystem for companies that focus on
https://builtin.com/blockchain
manufacturing and supply chain
management.
BIG DATA Go through the below link to know about
Industry 4.0 in details:
https://www.epicor.com/en-in/resource-
Big Data is a term used to describe a
center/articles/what-is-industry-4-0/
collection of data that is huge in size and yet
growing exponentially with time. In short DATA MINING AND DATA
such data is so large and complex that none
ANALYTICS
of the traditional data management tools are
able to store it or process it efficiently. Big Data Mining is generally used for the
Data is characterised by 3 V’s: Volume, process of extracting, cleaning, learning and
Velocity and Variety. Examples of Big Data: predicting from data. Data Analytics is more
The New York Stock Exchange generates for analysing the data. There is strong focus
about one terabyte of new trade data per day. on visualization as well.
Go through the below link to learn more about Go through the below link to learn more
big data: about the two:
https://www.sas.com/en_in/insights/big- http://www.dbta.com/Editorial/Trends-and-
data/what-is-big-data.html Applications/What-is-Data-Analysis-and-
Data-Mining-73503.aspx
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 WHAT IS ANALYTICS?
Analytics is defined as an encompassing and
multidimensional field that uses mathematics, statistics,
predictive modeling and machine-learning techniques to find
meaningful patterns and knowledge in recorded data.

CLOUD COMPUTING IMPORTANT TOPICS

Cloud computing is the delivery of different 1. Technologies and current trends in the IT
services through the Internet. These Industry
resources include tools and applications like https://www.simplilearn.com/top-technology-
data storage, servers, databases, networking, trends-and-jobs-article
and software. Rather than keeping files on a
2. Impact of Artificial Intelligence on Jobs
proprietary hard drive or local storage device,
https://www.iotforall.com/impact-of-artificial-
cloud-based storage makes it possible to
intelligence-job-losses/
save them to a remote database. As long as
an electronic device has access to the web, it
has access to the data and the software
programs to run it. FEW MORE INTERVIEW
Go through the below link to know in details
about the various types of cloud computing:
QUESTIONS
https://azure.microsoft.com/en-
in/overview/what-is-cloud-computing/ 1. Name the CEOs of top 5 IT firms.

2. What was the domain of your work in your

INTERNET OF THINGS
previous company? (for people with IT work exp)
The Internet of Things is a system of interrelated
computing devices, mechanical and digital 3. Do you have any idea about machine learning?
machines, objects, animals or people that are
provided with unique identifiers and the ability to 4. What is the difference between "authentication"
transfer data over a network without requiring and "authorization"?
human-to-human or human-to-computer
interaction. 5. What is the difference between "assembly
Go through the below link to know about internet language" and "machine language"?
of things in details:
https://www.ibm.com/blogs/internet-of- 6. What is the difference between "interpreter" and
things/what-is-the-iot/ "compiler"?

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MANAGING EXPERTISE

CONSULTING

CONSULTING
 WHAT IS CONSULTING
Consulting is the business of providing expert advice to a specific
group of people. Management consulting is the practice of
helping organizations to improve their performance. Organizations
may draw upon the services of management consultants for a
number of reasons including gaining external (& presumably
objective) advice and access to the consultants' specialized
expertise.

GENERAL QUESTIONS
Why consulting as a career? How do you think MBA will help you to
Describe any instance in your work become a consultant?
experience that triggered you to pursue this Do you know SWOT analysis?
domain. What is your expectation from a Consulting
Describe your most important leadership job?
experience and the impact that you had as a Where do you see yourself 5 years down the
leader. line?
What is big 4 in consulting domain? Which What is your contingency plan if consulting
among big 4 is your dream company?why? is not an option in the future?
Identify your strengths and weakness and What is difference between consulting and
describe how they would help you in strategy?
consulting domain. Describe a situation where you failed. What
Describe any instance from your life where did you learn about yourself and how did
you took some strategic decisions. you change as a result?
According to you what are the skill and What are three main types of consulting?
qualities that a consultant must pose? Why do companies hire consultants?

GUESSTIMATE QUESTIONS
How many people travel by air in India every day?
How many vehicles are there in Delhi?
How many kangaroos live in Australia?
How many people prefer Ola in Mumbai?
How many children are born in the world daily?
How many cans of Coke are sold in Kolkata
every month?

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 ROLE OF A CONSULTANT

The consultant's primary role is to assist an organization

with certain areas of his/her inclusiveness work. While the
consultant may act as an educator, a catalyst for deeper
change, a resource, or a facilitator, the leadership of the
process remains within the organization.

CASE BASED QUESTIONS

A big online retail firm is not making profits despite high volume of sales. What could be
going on?
An electronic products manufacturing company is making huge profits despite reduction in sales
over the years. What could be going on?
Our client wants to enter into the alcohol market, how should they go about doing so?
Our client is thinking of acquiring a company that produces certain electronic device. How should
they go about doing so?
How should a nuclear plant deal with waste products?
Describe the marketing strategy of the company you like the most. Tell any two major strategic
decisions it has taken recently.

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OB AND HRM
MANAGING PEOPLE

OB AND HRM
 WHAT I S HRM?
“Human Resource Management is planning, organizing,
directing, controlling of procurement, development,
compensation, integration, maintenance and separation of
human resources to the end that individual, organizational
and social objectives are achieved.” -Edwin Flippo

DIFFERENCE BETWEEN OB AND HRM?

Organizational Behavior (OB) Human Resource Management (HRM)
The way people behave under an Previously called the personnel
organizational setup. It's not a department, department.
but a team of people, working together to It assists, facilitates, and monitors the
find out what works and doesn't work for administrative functions and needs of
the company. employees within its corporation.
The team is usually made up of three to Guides leaders and managers in
four individuals with a particular project of implementing any necessary changes
innovation or improvement. necessary for the company.
Goal is often to prevent problems from HR also works to identify and recruit
happening during a change in company prospective candidates who possess the
policies or the core structure itself. best skills for the jobs available.
They study employees to see how they can HR department also develops programs,
better assist these workers in solving creates safety and labor laws, and
problems that have caused stress that promotes performance appraisals for the
lowers workers' productivity. company or corporation.
KEY CONCEPTS- KEY CONCEPTS-
The Individual- Foundations, personality, Strategic HR Management and Planning
learning, managing work motivation, Workers, Jobs, and Job Analysis
perception, attitudes, values and concept Human Resource Planning and Retention
of internality-externality. Recruiting and Labor Markets
The Role- roles and role efficacy, stress Selecting and training Human resources
management, decision making process Talent Management
and transactional analysis. Performance Management and Appraisal
The Team- Dynamics of group behavior, Managing Employee Benefit
effective teams, conflict management, Risk Management and Worker Protection
collaboration, leadership v/s management Employee Rights and Responsibilities
v/s mentorship. Union-Management Relations
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 WHAT I S OB?

“Organizational behavior is directly concerned with the

understanding, prediction, and control of human
behavior in organizations.” — Fred Luthans.

ORGANIZATION
A social unit of people that is structured SIZE- Refers to the capacity, the number of
and managed to meet a need or to pursue personnel, outputs and resources.
collective goals. All organizations have a
management structure that determines STRATEGY- The strategy of an organization
relationships between the different determines the fluidity and flexibility with
activities and the members, and subdivides which the organization designs its
and assigns roles, responsibilities, and structure.
authority to carry out different tasks.
Organizations are open systems--they affect TECHNOLOGY- Organizational structure is
and are affected by their environment. An closely linked with its primary system of
organization's key characteristics are production, making its structure predictable
reflected by their choice of structure. in terms of technology employed.

POWER & CONTROL- Centralization and

DETERMINANTS OF decentralization of resources and decision
ORGANIZATIONAL making power.

STRUCTURE
CHAIN & SPAN- The chain of command
along which orders and decisions are
Size passed down from the top to the bottom of
Strategy the hierarchy.
Technology
Chain INTEGRATION & DIFFERENTIATION- There
Span is no best way to organize the structure.
Power Different parts of the same organization
Control adapt in different ways which leads to
Differentiation-Integration integreated differentiation.

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 ORGANIZATIONAL STRUCTURE
It is a system that outlines how certain activities are
directed in order to achieve the goals of an organization.
The structure also determines how information flows
between levels within the company. For example, in a
centralized structure, decisions flow from the top down.

USUAL ORGANIZATIONAL EMERGING ORGANIZATIONAL

DESIGNS DESIGNS
Centralization-Decentralization-Whether Spaghetti organization- Characterized by
decision making is concentrated in one flexibility in the structure or lack of
place or otherwise. structure altogether.
Divisionalization- Restructuring the Fishnet Organization- Flexible, adaptable
organization into a number of semi- and rearranges itself quickly while retaining
autonomous operating divisions based on its inherent strength.
product or geographical areas. Virtual Organization- Where employees
Departmentalization- Refers to the process interact with each other completely via
of grouping activities into departments. telecommunications and may never actually
Division of labor creates specialists who meet each other.
need coordination. Team Organizations- Formation of self-
Bureaucracy- Defined by degree of managed teams with sufficient authority
standardization. They are hierarchial, with and access to resources.
rigid rules and regulations. Network Structure- Linking of separate
Matrix structure- Structure where workers parts of the same organization or
report to more than one person. networking of separate organizations.

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82
 WHAT IS PERSONALITY?
The word personality is derived from a Greek
word “persona” which means “to speak through.” Personality
is the combination of characteristics or qualities that forms
a person’s unique identity. Every individual has a unique,
personal and major determinant of his behavior.

MAJOR PERSONALITY THEORIES OF PERSONALITY

ATTRIBUTES
Locus of control- is the center of control of Psychoanalytical perspective- It emphasizes
an individual’s code of conduct. People who the importance of early childhood
consider themselves as the masters of their experiences and the unconscious mind. it
own fates are internals, while, those who was created by psychiatrist Sigmund
affirm that their lives are controlled by Freud who believed that things hidden in the
outside forces known as externals. unconscious could be revealed in different
Machiavellianism- is being practical, ways, including through dreams, and slips of
emotionally distant, and believing that ends the tongue.
justify means. They are always wanting to win Humanistic perspective- The humanistic
and are great persuaders. perspective of personality focuses on
Self Esteem- is the extent up to which people psychological growth, free will, and personal
either like or dislike themselves. Individuals awareness. It takes a more positive outlook
with high self-esteem think that they have on human nature and is centered on how each
what it takes to succeed, they take more person can achieve their individual potential.
challenges while selecting a job. Trait perspective- The trait perspective of
Self-monitoring- is the capability of personality is centered on identifying,
regulating one’s behavior according to social describing and measuring the specific traits
situations. Individuals with high self- of human personality. By understanding these
monitoring skill easily adjust their behavior traits, researchers believe they can better
according to situational factors. comprehend the differences.
Risk taking- Generally, managers are Social cognitive perspective -This
reluctant on taking risks. However, individual perspective of personality emphasizes the
risk-taking inclination affects the bulk of importance of observational learning, self-
information required by the managers and efficacy, situational influences, and cognitive
how long it takes them to make decisions. processes.

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83
 BIG 5 MODEL (O.C.E.A.N.)
Many contemporary personality psychologists believe that
there are five basic dimensions of personality, often
referred to as the "Big 5" personality traits. The five broad
personality traits described by the theory are extraversion
(also often spelled extroversion), agreeableness,
openness, conscientiousness, and neuroticism.

Openness- has to do with Culture, Agreeableness- a tendency to be

Originality, or Intellect - appreciation compassionate and cooperative rather
for art, emotion, adventure, unusual than suspicious and antagonistic
ideas, curiosity, and variety of towards other.
experience.
Neuroticism- on the negative side of
Conscentiousness- or Will to Achieve - the fifth factor is a tendency to
a tendency to show self-discipline, act experience unpleasant emotions easily,
dutifully, and aim for achievement; such as anger, anxiety, depression, or
planned rather than spontaneous vulnerability; sometimes called
behavior. Negative Emotionality, and emotional
instability.
Extroversion- energy, positive
emotions, surgency, and the tendency
to seek stimulation and the company of
other.
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 WHAT IS MOTIVATION?
Internal and external factors that stimulate desire and energy
in people to be continually interested and committed to a job,
role or subject, or to make an effort to attain a goal.
Motivation results from the interaction of both conscious and
unconscious factors.

MASLOW'S HIERARCHY OF NEEDS AND THEORY OF

MOTIVATION

Physiological needs: These are Esteem needs: Which Maslow

biological requirements for human classified into two categories:
survival, e.g. air, food, drink, shelter, (i) esteem for oneself (dignity,
clothing, warmth, sex, sleep.If these mastery, achievement, independence)
needs are not satisfied the human body (ii) the desire for reputation or
cannot function optimally. Maslow respect from others (e.g., status,
considered physiological needs the most prestige).
important as all the other needs become
secondary until these needs are met. Safety needs: Protection from
elements, security, order, law,
Love and belongingness needs: The third stability, freedom from fear.
level of human needs is social and
involves feelings of belongingness. The Self-actualization needs: Realizing
need for interpersonal relationships personal potential, self-fulfillment,
motivates behavior. seeking personal growth and peak
experiences. A desire “to become
everything one is capable of
becoming”.
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 NEGOTIATION
Bargaining (give and take) process between two or more
parties (each with its own aims, needs, and viewpoints)
seeking to discover a common ground and reach an
agreement to settle a matter of mutual concern or resolve
a conflict.

NEGOTIATION TECHNIQUES
OUR WANTS AND NEEDS

THEIR WANTS AND NEEDS

STRESS CURVE

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 HRM PROCESSES
Human Resource Management is the process of recruiting,
selecting, inducting, providing orientation, imparting training,
appraising the performance, deciding compensation and
providing benefits, motivating, maintaining proper relations
with employees, ensuring safety, welfare and health measures
in compliance with labor laws of the land.

HRM PROCESS

Recruitment and training- The HR -A good working condition is one of the

managers come up with plans and benefits that the employees can expect
strategies for hiring the right kind of from an efficient human resource
people. They design the criteria which team.
is best suited for a specific job Managing disputes- It is the human
description. Their other tasks related resource department which acts as a
to recruitment include formulating the consultant and mediator to sort out the
obligations of an employee and tasks conflicts in an effective manner. They
assigned to him or her. first hear the grievances of the
Performance appraisal- The team employees and address them from an
communicates with the staff unbiased perspective.
individually regarding their Developing public relations- They
performances. This is beneficial as it organize business meetings, seminars
enables them to form an outline of and various official gatherings on
their anticipated goals in much clearer behalf of the company in order to build
terms. up relationships with other business
Maintaining work atmosphere- sectors. Sometimes, the HR
Performance of an individual in an department plays an active role in
organization is largely driven by the preparing the business and marketing
work atmosphere or work culture that plans for the organization too.
prevails at the workplace. -
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 EMOTIONAL INTELLIGENCE(EI)
EI refers to the ability to identify and manage one’s own
emotions, as well as the emotions of others. EI is generally
said to include at least three skills: emotional awareness, the
ability to harness those emotions and apply them to tasks like
thinking and problem solving; and the ability to manage
emotions.

Personnel Management HRM Focus

Focus
Helping to achieve strategic goals through
Administering of policies people
Stand-alone programs, such as Training programs that are integrated with
training company's mission and values
Personnel department responsible Line managers share joint responsibility in all
for managing people areas of people hiring and management
Create a cost within an organization Contributes to profit objectives of
organization

ORGANIZATIONAL COMMUNICATION
Upward communication- is when the Diagonal communication- approach
lower levels of an organization occurs when interdepartmental
communicate with the upper levels of an communication occurs with people at
organization. Oftentimes human resource different levels of the organization. for
departments may develop a survey such instance, when the human resources
as this to find out how satisfied the assistant speaks with the marketing
employees are with things such as manager about the hiring of a new
benefits. Employees might also engage in employee in marketing.
upward communication in a given work
situation. Horizontal communication- occurs when
people of the same level in an
organization, for example, a marketing
Downward communication- is the manager and a human resource manager,
opposite of upward communication, in communicate usually to coordinate work
that the communication occurs from the between departments. An accounting
upper levels of an organization down to manager might share information with a
the lower levels of the organization like a production manager so the production
manager explaining how to do a task to manager knows how much budget they
employees. have left.

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 WA R - CHE S T F O R H R M

GENERAL TERMS HRM JOBS

Managers- People work for them. Managing
Compensation Manger
is more about administering and making sure
Manager of Employee Relations
the day-to-day things are happening as they
HR Generalist
should.
Technical Recruiter
Leaders- People follow them because they
Director of Staff
understand and believe in your vision and to
Placement Manager
work with you to work towards a common
Training and Relations Manager
goals.
Organizational Consultant
Role- is a prescribed or expected behavior
associated with a particular position or
status in a group or organization.
INTERVIEW QUESTIONS
Office- The position that an individual What are your strengths and weaknesses?
acquires in a firm is called the designation or What Is Performance Management?
Job. What Kind Of Person Would You Refuse To
Job- is a group of homogeneous tasks study With?
related by similarity of functions. What Is Your Philosophy Towards
Stress- Stress is a physiological effect education?
produced in an organism in its attempts to Do You Have Any Blind Spots?
cope (called adaptive response) with the What Is More Important To You: The
demands created by a stressor. Money Or The Work?
Burnout- Feeling of physical and emotional
exhaustion, due to stress from working with
people under difficult or demanding
LEARNING RESOURCES
conditions. thehrcapitalist.com
Groupthink- refers to a psychological womenofhr.com
phenomenon in which members of a group hrmagazine.com
make decisions based on the pressure. humanresourceresearchcenter.com
Groupshift- refers to a condition where the hbr.org
position of an individual in the group changes managerskills.org
to adopt a more extreme position due to the psychologytoday.com
influence of the group. strategy-business.com
Group norms- are the informal rules real-leaders.com
that groups adopt to regulate and
regularize group members' behaviour" 63
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 ALL THE BEST

AN INITIATIVE BY ADMISSIONS COMMITTEE

MBA (1ST YEAR)
IIM BODH GAYA

ANAKSHEE
ARUNDHATI
KARTIKEYA
KUSHAGRA
RANIT
SHIVAM
YASWANTH
YATHARTH