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MGT601 Current 2013 Subjective solved

               

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Usama Gee gud keep it up & thanks for sharing 

MGT601

Current papers subjective 2013 (Solved by Usama Gee)

Email:usamamobiles@yahoo.com

 

Questions HIGHLIGHTED in Yellow Came in my paper 23rd Dec 2013

Non-HIGHLITED Questions are also important for Midterm Preparation

 

Q-External resources of information???

Q-What are Financial Requirments in Lending from lender ????

 

 

Q-Labor issues in SMEs. Marks 3 ????

Likewise,  the  intensity  of  the  regulations  is  the  second most  important  reason  for  firms  to  drift  into  the informal economy all over the world. Labour Laws and regulations in Pakistan are considered one of the most complicated areas with which any business enterprise deals. The present set of  the  labor  laws was the  result  of  checkered  initiative of  various  governments  to  create  a  healthy business  environment  for  the labor. Consequently, enterprises have to deal with 56 labor laws with some of them being industry specific.

Q-Write names of financial institutions you can use to finance SMEs? Marks 3

  • Punjab Small Industries Corporation (PSIC)
  • Sindh Small Industries Corporation (SSIC)
  • Small Industries Development Board (SIDB) NWFP
  • Directorate of Industries (Balochistan)

Q-Define value added in product with example. Marks

Value added: The worth placed on a product by a particular stage in the production process. For example. Take a case of restaurant the value added is the difference in price for what u pay to buy and at what u sell.

Q-What is government of Pakistan’s contribution towards human resource development?

The government has established a number of institutions that impart training and skill development. These institutions,  Pakistan  Institute  of  Management Science  (PIMS),  Provincial  Vocational  Training  Councils Authority,  Technical  Training  and  Vocational  Authority  (TEVTA)  Government Universities  and  various other  support  institutions have however  remained  rather passive  regarding  the  shaping of  human  resource development for SME.

Q-Explain Construction phase problems. Marks 5

I.   Acquisition of land;     V.   Prospecting about marketing;

II.   Construction of building and other aspect of civil works;

III.   Acquisition of machinery and its installation;

IV.   Preliminary work about the sources of supply of raw materials, labor and managerial inputs;

Q-Externalities:

A term used in environmental studies, as a drain having polluted water from on factory may be used by some other industry and suffer the bad effects of pollution. Externalities are one of  the economic root causes for environmental damages, which require appropriate government intervention, it  is  frequently overlooked that  there are many economic gains, which may  be  achieved  from  producing  in  an  environmentally  friendly manner. Reducing material waste can be one way of reducing cost. Saving resources such as water and energy does not only generate benefits at the national level but may translate into competitiveness and thus economic gain at the enterprise level.

Q-Lending from bank :

Access to equity and formal debt financing has repeatedly been identified as recurring constraint to SME growth and development. Commercial banks apply conservative policies in lending to SME. More, importantly  the  existing  structure  of  financial  sector was  developed  to  serve medium  to  large  enterprises which are organized as a  formal business. Most banks prefer to hold risk free-income generating assets and lending  to  SME  is  unattractive due  to  a  range  of  objective  and  subjective factors.

Q-Natural calamities: These problems are unexpected and can happen without any notice. Such as burglaries, earthquakes, fire etc.

 

 

Q-Environment post operative problems(5 marks)

• Environmental Causes:

O Changes in government policy;

O Changes in social or political conditions;

O Inflationary pressures leading to increases in the input cost.

Q-List down Post operative problems in SME:

• Lack or absence of profits   • Experience factor   • Sale Causes

• Expense Causes                  • Neglect Causes       • Capital Causes

Q-The benefits that SME enjoy in environmental issues(5 marks)

Many OECD countries make use of channel of SME promotions in order to achieve improvements for the environment. For  example,  special  credit  lines  may  be  provided  in  order  to  encourage  the  adoption  of environmentally  friendly   technologies. Specific training courses are being offered  to SME on waste reduction. ISO  14000  is  actively  being  promoted  in  the  European  Union  as  one  way  of  combining environmental  concerns  with  quality  and  thus  competitiveness.

Q-The benefits that SME not enjoy(2 marks)

  • Infrastructure   ,   Intellectual Property Rights
  • Law and Order   ,   Literacy

Q-Any existing product can help creating new product or not. Discuss.

Novel Use of Known Products With  ingenuity,  it  is  possible  to  think  of  new  uses  of  existing  products  e.g. Use  of  fly  ash-  a common  effluent  in  thermal  plants,  to  make  bricks  and  light-weight  concrete  etc. Similarly, rice husk (a common product in rice sheller) could be used for making hardboards.

 

 

Q-SMEDA

Small & Medium Enterprise Development Authority (SMEDA)

The  government  to  promote  the  cause  of  SME  development  in  the  country  has  recently  established SMEDA. SMEDA  went  one  step  ahead  and  used  two  variables  to  define  SME’s  in Pakistan. Following are the definitions of the SME’s:

Micro:

• Less than 10 people employed         • Productive assets limit of 2 million rupees.

Small:

• Between 10-35 people employed.   • Productive assets limit of 20 million.

Medium:

• Between 36-99 people employed    • Productive assets limit of 40 million.

 

Q-Laws made by government to improve SME in country.

The  government  of  Pakistan  keeping  in  view  the  importance of  SMEs  has  adopted  multi  -pronged approaches at the regional, sub regional and national levels. Initiatives at the regional and sub-regional levels include efforts to strengthen economic integration and cooperation. At  the national  level,  structural adjustment  programs  have  been  in  operation  along  with  attempts  at  restructuring  and  diversifying the production  base, integrating  the   informal  sector   into   the  economic  mainstream  and  stimulating  the increased participation at the enterprise level.

  • Q-Effects of High Literacy for SMEs.

Higher literacy rates are essential to enhance the quality of production. It can be enhanced by multiple factors, which is why we need to effectively compete in the international economy that is extended to our local markets by the effects of opening up and WTO accession.

Q-Primary and secondary sources OR Kinds of relevant data for market analysis can be gathered from primary and secondary sources.

Primary Sources

From a marketing perspective, the three primary sources of information are-

  • ¾    Internal Records of the Firm, ¾   Mail   Surveys , ¾   Direct Observations:

Secondary Sources: A number of publications provide overwhelming useful marketing information industry. Published reports of trade association, government agencies, and other. These are not geared to the requirement of an individual firm.

 

 

Q-How can we avoid the situation of Under-Capitalization

  • Differentiate your business. , Get an accountability partner. , Have a thorough business plan. ,  Choose an industry you know. ,      Provide stellar customer service.

Q-Literacy

The evidence reveals that SME find it extremely difficult to grow because of their inability to delegate to soundly trained staff. The day the small businessman feels comfortable to delegate, SME start progressing. The low literacy level also determines the potential of our labor force. Higher literacy rates are essential to enhance the quality of production can be enhanced by multiple factors which is what we need to be able to effectively compete in the international economy which is being extended to our local markets by the effects of opening up and WTO accession.

 

Q-Internal resources of information

 administration Information

 

 

 

 

Q-Market Feasibility

The following process may be adopted to assure the market opportunities of a product.

a)    Identifying the Market Potential

b)    Estimating Cost-volume Relationship to ascertain how various price levels may affect total sales volume

 

      c) Sources of Market Information

 

Q-Market Testing

It is an important method of establishing the overall feasibility of a new venture, significant market- testing methods include:

a) Displaying the product at trade fairs,

b) Test marketing to analyze the receptivity of the product, and

c) A market test can provide following information. d) Likely sales volume and profitability

e) Sales volume at different price levels

Q-The drawbacks of this Market Testing :

a) Delay in implementation

b) Premature exposure to competitors and c) Expensiveness

 

thnx

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