March 2013

Master of Business Administration (MBA) Examination

I Semester

Management Principles and Practices

Time 3 Hours)                                                                                                     (Max. Marks 80

Note : Attempt any four questions from Section A. Section B is compulsory and carries 20 marks.

(Section A)

1.      Management theory may be classified with distinct school of thought, designated as "Schools of Management Theory". Mention various schools of thought and briefly discuss one of them

2.      Describe the importance and steps involved in planning process. Briefly discuss the relevance of strategic and operational planning.

 3.     What do you understand by MBO? Discuss its process, advantages and limitations. How does it differ from traditional management and management by exception?

4.      Explain the process involved in Strategy Formulation. What are the three levels of strategy and how are they different ?

5.      Contrast the different approaches to design control system. Contrast feed forward, concurrent and feedback controls with suitable example.

6.      Write short notes on any two of the following

(a)     Line and Staff Relationship and Conflict.

(b)     Decision Making Process.

(c)     Delegation and Decentralization.

(d)    Cross Cultural Issues in Management.

(Section B)

7.         Analyze the following case and answer the questions given at the end


Prior to 2001 there were two big-box bookstore chains in Canada-Chapters and Indigo. Indigo was formed in 1996 by Heather Reisman, who left her job as president of Cott Corporation, the beverage supplier, to found Indigo. It was the first book retail chain to add music, gifts, and licensed cafes to store locations. By 2000, the chain had expanded to 14 locations across Canada. The other large chain. Chapters, was formed in 1995 with the merger of Canada's then two largest bookstore

chains - Cole's and Smith Books. In 2001,  Heather pulled a shocking coup when her company took over the much bigger Chapters chain. Chapters' losses were crippling the company, and Its shareholders quickly approved the takeover bid.

What followed for Reisman was the task of merging the two organizations into one. Indigo and Chapters both had similar Organizational structures- a functional-based design. Indigo's corporate structure, for Instance, consisted of departments such as marketing, human resources, and retail. However, the new organization suddenly had 90 big-box stores and dose to 7,000 employees. Moreover, with the takeover, Indigo gained control of the nationwide chain of 210 Cole's Books and SmithBooks stores, as well as a new Internet division, Chapters Online. The structure of the newly merged organization had to change In order to incorporate these new businesses.

The combined company. Indigo Books and Music, is now Canada's top bookseller. Its some 300 stores spread throughout the country's provinces sell hooks, magazines, CDs, and other items. Making the combined organization run efficiently has been a major challenge for Reisman. Indigo lost approximately $48 million in 2002 even as the number of employees grew by 26 percent. Results for 2003 were somewhat better as the company posted a small $1.4 million profit. So Reisman must continue to address the issue of keeping the company profitable in a challenging retail climate, Despite the challenges, most analysts don't doubt that Heather Reisman Is up to resolving them.

Discussion Questions :

1,      When two organizations merge, what types of structural Issues do you think might need to be addressed ?

2.      What role do you think organizational structure plays in an organimtion's efficiency and effectiveness ? Explain.

3.      Would a more mechanistic or a more organic structure be appropriate for Indigo? Why?

4.      How might technology affect Indigo's organizational design?