Friday, 31 July 2015


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Total Marks : 80


Question :

Q. 1) Define the method chemical treatment?

Answer: Chemical treatment (of hazardous waste) refers to the treatment methods that are used to effect the complete breakdown of hazardous waste into non-toxic gases or, more frequently, to modify the chemical properties of the waste, for example, through reduction of water solubility or neutralisation of acidity or alkalinity.

Wastewater Chemical Treatment Processes

Chemical Precipitation

Q. 2) Explain the method Gravity settling?

Answer: Settling is the process by which particulates settle to the bottom of a liquid and form a sediment. Particles that experience a force, either due to gravity or due to centrifugal motion will tend to move in a uniform manner in the direction exerted by that force. For gravity settling, this means that the particles will tend to fall to the bottom of the vessel, forming a slurry at the vessel base.Settling is an important operation in many applications, such as mining, wastewater treatment, biological science, space propellant reignition, and particle mechanics.

Applications: The solid-gas flow systems are present in many industrial applications, as dry, catalytic reactors, settling tanks, pneumatic conveying of solids

Q. 3) Define the method Electric desalter?

Answer: A desalter is a process unit in an oil refinery that removes salt from the crude oil. The salt is dissolved in the water in the crude oil, not in the crude oil itself.

Most typical methods of crude-oil desalting:

·         Chemical and Electrostaticseparation:Washing of the salt from crude oil with water oil and water phases are separated in a settling tank by adding chemicals to assist in breaking up emulsion or by the application of electrostatic field to colapse the droplets of saltwater more rapidly.

Q. 4) Explain in brief the term Dehydration?

Answer:Dehydration, also known as hypohydration, is not enough body water, with an accompanying disruption of metabolic processes. The term dehydration may be used loosely to refer to any condition where fluid volume is reduced; most commonly, it refers to hypernatremia (loss of free water and the attendant excess concentration of salt), but is also used to refer to hypovolemia (loss of blood volume, particularly plasma).


Question :

Q. 1) Define the term ADU (Atmospheric Distillation Units)?

Answer:Crude oil is sent to the atmospheric distillation unit after desalting and heating. The purpose of atmospheric distillation is primary separation of various 'cuts' of hydrocarbons namely, fuel gases, LPG, naptha, kerosene, diesel and fuel oil. The heavy hydrocarbon residue left at the bottom of the atmospheric distillation column is sent to vacuum distillation column for further separation of hydrocarbons under reduced pressure.

As the name suggests, the pressure profile in atmospheric distillation unit is close to the atmospheric pressure with highest pressure at the bottom stage which gradually drops down till the top stage of the column.

Q. 2) Define the term VDU (Vacuum Distillation Units)?

Answer: Vacuum distillation is a method of distillation whereby the pressure above the liquid mixture to be distilled is reduced to less than its vapor pressure (usually less than atmospheric pressure) causing evaporation of the most volatile liquid(s) (those with the lowest boiling points). This distillation method works on the principle that boiling occurs when the vapor pressure of a liquid exceeds the ambient pressure. Vacuum distillation is used with or without heating the mixture.

Laboratory-scale vacuum distillation is used

Q. 3) Define the term TTR (Top Tray Reflux)?

Answer:Top Tray Reflux : Reflux is only at top tray only

·         Reflux is cooled and sent into the Tower.
·         Heat input: Through Tower bottom.
·         Removal: at the top.
·         Thus requires large tower diameter.
·         Improper reflux and poor quality of fraction. Economic utilization of heat is not possible.

Q. 4) Explain the term ‘Distillation of Petroleum’ in brief?

Answer:Petroleum refining processes are the chemical engineering processes and other facilities used in petroleum refineries (also referred to as oil refineries) to transform crude oil into useful products such as liquefied petroleum gas (LPG), gasoline or petrol, kerosene, jet fuel, diesel oil and fuel oils.

Petroleum refineries are very large industrial complexes that involve many different processing units and auxiliary facilities such as utility units and


Question :

Q. 1) Define the term Blending in brief?

Answer:Blending in petroleum refining is the physical mixture of a number of different liquid hydrocarbons to produce a finished product with certain desired characteristics. Products can be blended in-line through a manifold system, or batch blended in tanks and vessels. In-line blending of gasoline, distillates, jet fuel, and kerosene is accomplished by injecting proportionate amounts of each component into the main stream where turbulence promotes thorough mixing. Additives including octane enhancers, metal deactivators, anti-oxidants, anti-knock agents, gum and rust inhibitors, detergents, etc. are added during and/or after blending to provide specific properties not inherent in hydrocarbons.

Q. 2) Explain the Blending process?

Answer:Petroleum refining begins with the distillation, or fractionation, of crude oils into separate hydrocarbon groups. The resultant products are directly related to the characteristics of the crude oil being processed. Most of these products of distillation are further converted into more useable products by changing their physical and molecular structures through cracking, reforming and other conversion processes. These products are

Q. 3) Explain the term line Blending?

Answer: Blending consolidates as the refinery’s last chance to impact profitability at low investment levels and approximately 50% of about 700 refineries worldwide have implemented such technology. Besides positively impacting the overall refinery production scheduling, in-line blending (ILB) operations at the end of the refinery allow for substantial benefits including end product giveaway minimization, lower inventory levels, optimized logistics and, therefore, reduced utility consummations and atmospheric emissions, economic savings in new hardware investment and maintenance, and operational safety.

The first step required to support a new

Q. 4) Explain the term Gasoline Blending?

Answer:The most important refinery product is motor gasoline, a blend of relatively low-boiling hydrocarbon fractions, including reformate, alkylate, aliphatic naphtha (light straight-run naphtha), aromatic naphtha (thermal and catalytic cracked naphtha) and additives. Gasoline blending stocks have boiling points which range from ambient temperatures to about 204 °C, and a flashpoint below –40 °C. The critical qualities for gasoline are octane number (anti-knock), volatility (starting and vapour lock) and vapour pressure (environmental control). Additives are used to enhance gasoline performance and provide protection against oxidation and


Question :

Q. 1) Explain chemical structure of Asphalt?

Answer:The primary use (70%) of asphalt/bitumen is in road construction, where it is used as the glue or binder mixed with aggregate particles to create asphalt concrete. Its other main uses are for bituminous waterproofing products, including production of roofing felt and for sealing flat roofs.

The terms asphalt and bitumen are often used interchangeably to mean both natural and manufactured forms of the substance. In American English, asphalt (or asphalt cement) is the carefully refined residue from the distillation process of selected crude oils. Outside the United States, the product is often called bitumen.

Q. 2) Comment. Action of Heat on Asphalt?

Answer:The great majority of asphalt used commercially is obtained from petroleum. Nonetheless, large amounts of asphalt occur in concentrated form in nature. Naturally occurring deposits of asphalt/bitumen are formed from the remains of ancient, microscopic algae (diatoms) and other once-living things. These remains were deposited in the mud on the bottom of the ocean or lake where the organisms lived. Under the heat (above 50 °C) and pressure of burial deep in the earth, the remains were transformed into materials such as asphalt/bitumen, kerogen, or petroleum.

Natural deposits of asphalt/bitumen include lakes such as the Pitch Lake in Trinidad and Tobago and Lake Bermudez in Venezuela. Natural seeps of asphalt/bitumen occur in the La Brea Tar Pits and in the Dead Sea.

Asphalt/bitumen also occurs as impregnated

Q. 3) Explain the types of Asphalts?

Answer:Asphalt is most well known as a road covering more technically termed asphalt concrete, but there are a few different forms in which the substance may appear. It is a naturally occurring material present in crude oil and in natural deposits, notably around certain bodies of water and in oil sands. This substance is found in either liquid or semi-solid form in nature and is characterized by its high viscosity and its sticky, black appearance. It consists almost exclusively of bitumen, a substance composed of polycyclic aromatic hydrocarbons (PAHs). The major types used in construction are rolled and mastic.

Q. 4) Comment. Air blowing of Asphalt?

Answer: One hundred years after the fall of Constantinople in 1453, Pierre Belon described in his work Observations in 1553 that pissasphalto, a mixture of pitch and bitumen, was used in Dubrovnik for tarring of ships from where it was exported to a market place in Venice where it could be bought by anyone. An 1838 edition of Mechanics Magazine cites an early use of asphalt in France. A pamphlet dated 1621, by "a certain Monsieur d'Eyrinys, states that he had discovered the existence (of asphaltum) in large quantities in the vicinity of Neufchatel", and that he proposed to use it in a variety of ways – "principally in the construction of

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A) All questions carry equal marks.

1. Write a detailed analysis of Petroleum Industry in India.

The oil and gas sector is one of the six core industries in India. It is of strategic importance and plays a pivotal role in influencing decisions across other important spheres of the economy.

In 1997–98, the New Exploration Licensing Policy (NELP) was envisioned to deal with the ever-growing gap between demand and supply of gas in India. As per a recent report, the oil and gas industry in India is anticipated to be worth US$ 139,814.7 million by 2015. With India’s economic growth closely linked to energy demand, the

2. Explain evaluation of Petroleum over the years.

Answer:  In petroleum exploration and development, formation evaluation is used to determine the ability of a borehole to produce petroleum. Essentially, it is the process of "recognizing a commercial well when you drill one".

Modern rotary drilling usually uses a heavy mud as a lubricant and as a means of producing a confining pressure against the formation face in the borehole, preventing blowouts. Only in rare and catastrophic cases, do oil and gas wells come in with a fountain of gushing oil. In real life, that is a blowout—and usually also a financial and environmental disaster. But controlling blowouts has drawbacks—mud filtrate soaks into the formation

3. Explain the process of distillation of Petroleum.

Answer:  A petroleum refinery is an installation that manufactures finished petroleum products from crude oil, unfinished oils, natural gas liquids, other hydrocarbons, and alcohol. Refined petroleum products include but are not limited to gasolines, kerosene, distillate fuel oils (including No. 2 fuel oil), liquefied petroleum gas, asphalt, lubricating oils, diesel fuels, and residual fuels.

Simple Distillation


The core refining process is simple distillation (Figure 1). Because crude oil is made up of a mixture of hydrocarbons, this first and basic refining process is aimed at separating the crude oil into its "fractions," the broad categories of its component hydrocarbons. Crude oil is heated and put into a still—a distillation column—and different products boil off and can be recovered at different temperatures. The lighter products—liquid

4. Which are the different thermal properties of Petroleum fractions?

Answer:  Petroleum, in one form or another, has been used since ancient times, and is now important across society, including in economy, politics and technology. The rise in importance was due to the invention of the internal combustion engine, the rise in commercial aviation, and the importance of petroleum to industrial organic chemistry, particularly the synthesis of plastics, fertilizers, solvents, adhesives and pesticides.

In its strictest sense, petroleum includes only crude oil, but in common usage it includes all liquid, gaseous, and solid hydrocarbons. Under surface pressure and temperature conditions, lighter hydrocarbons methane, ethane, propane and butane

5. What is blending of Gasolines ?

Answer:  To better understand the need for gasoline blending, it helps to understand the basic workings of your car's engine:

1.       Gasoline vapor mixes with air in the cylinder chamber.
2.       The cylinder compresses the air/gasoline mixture.
3.       The spark plug fires when the cylinder achieves maximum compression, which ignites air/gasoline mixture.
4.       The force of the combustion pushes the cylinder down, which turns the drive shaft, generating useable power.
5.       The byproducts of combustion are let out of the chamber when the cylinder is in its down cycle.

6. Explain theory of catalytic reforming.

Answer:  Catalytic reforming

Catalytic reforming is a chemical process used to convert petroleum refinery naphthas distilled from crude oil (typically having low octane ratings) into high-octane liquid products called reformates, which are premium blending stocks for high-octane gasoline. The process converts low-octane linear hydrocarbons (paraffins) into branched alkanes (isoparaffins) and cyclic naphthenes, which are then partially dehydrogenated to produce high-octane aromatic hydrocarbons. The dehydrogenation also produces significant amounts of byproduct hydrogen gas, which is fed into other refinery processes such as hydrocracking. A side reaction is hydrogenolysis,

7. What is air blowing of bitumen?

Answer: Asphaltic bitumen, normally called "bitumen" is obtained by vacuum distillation or vacuum flashing of an atmospheric residue. This is " straight run" bitumen. An alternative method of bitumen production is by precipitation from residual fractions by propane or butane- solvent deasphalting.The bitumen thus obtained has properties which derive from the type of crude oil processed and from the mode of operation in the vacuum unit or in the solvent deasphalting unit. The grade of the bitumen depends on the amount of volatile material that remains in the product: the smaller the amount of volatiles, the harder the

8. Explain in detail about reserves & deposit of the world with reference to petroleum Industry.

Answer:  Petroleum reserves are any quantity of petroleum that is commercially recoverable. In order to be considered a reserve, a given deposit of petroleum must satisfy four criteria:

·         Discovered through an exploratory well. In other words, drilling must be performed to prove recoverability.
·         Must be recoverable using existing technology
·         Must be commercially viable, meaning the petroleum can be extracted at a profit and not a loss

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Group A
CASE STUDY : 1 (20 Marks)
Zhuhai of Shanghai

Question :

Q. 1) Discuss the typicalities of Chinese Industrial system vis-à-vis the Western/global Industrial system.
Answer: China is the most prominent player in a non-Western subgroup's suboptimisation strategy, which undermines the Western-dominated neoliberal capitalist system, or the Washington Consensus, and liberal democratic values, taken as gospel by Western economists, governments and industry for the past 30 years. While China and other non-Western states are a part of this system, a consequence of their actions within the system, and particularly in the international energy markets, is that they are increasing their relative

Q. 2) Where does the Chinese system fault?

Answer:By contrast, there is a historical school which Jack Goldstone has dubbed the "English school" which argues that China was not essentially different from Europe, and that many of the assertions that it was are based on bad historical evidence.

Mark Elvin argues that China was in a high level equilibrium trap in which the non-industrial methods were efficient enough to prevent use of industrial methods with high initial capital. Kenneth Pomeranz, in the Great Divergence, argues that Europe and China were remarkably similar in 1700, and that the crucial differences which created

Q. 3) Is over production and mis-match in marketing leads to poor prices of Chinese products in theInternationalmarket?

Answer:Though China's economy has expanded rapidly, its regulatory environment has not kept pace. Since Deng Xiaoping's open market reforms, the growth of new businesses has outpaced the government's ability to regulate them. This has created a situation where businesses, faced with mounting competition and poor oversight, take drastic measures to increase profit margins, often at the expense of consumer safety. This issue became more prominent in 2007, with a number of restrictions being placed on problematic Chinese exports by the United States.[55]

Q. 4) If you are offered, views as a top consultant, what would you like to suggest the Chinese Governmentandindustry. Give your reasons.

Answer: Economists have been warning for years that China must decrease its dependence on investment for growth and “rebalance” to allow consumption to play a bigger role. Government officials point out signs of progress — first-quarter GDP was driven upward more by consumption than investment, for instance. But progress is, at best, at a crawl. Private consumption relative to GDP in China is still the lowest among major economies. The government has simply balked at the reforms necessary to change that. Feeble health care and pension systems force households to save; then controls on interest rates keep returns on bank deposits meager, punishing them for saving. If anything, much government policy has

Case-2 (20 Marks)
Toyota Comes to Georgetown

Q. 1. What is the difference between American production policy and Japanese production policy?

Answer:Although it is somewhat presumptuous to generalize about the characteristics and attitudes of millions of people, some rather basic and important differences between the Japanese and U.S. workers appear to exist.

First, the Japanese concept of self is very different from the American view. In Japan, each person is believed to possess a unique spirit, soul, mind and heart, but the self concept is considered an impediment to growth. The Japanese establish identities that incorporate friends, relatives and coworkers in an open way to share feelings and improve on weaknesses. The workers relationship within the work group is very important

Q. 2. Where the Japanese Excel?

Answer: Companies which succeed in Japan go to extraordinary lengths to understand the landscape they are about to enter. We can assure you that it’s much better you know your competitors beforehand and work out a strategy how to deal with them, rather than finding out that a few weeks after you proudly open each of your new shops in Japan, a Japanese company you have never heard about before, selling the same products as you do opens a shop accross the road from your new shop offering similar products at much lower prices, and keeps open until midnight, while your shops close at 6pm. Sounds incredible? That’s exactly

Q. 3. In quality control of Toyota what do you observe?

Answer:Total Quality Administration (TQM) is definitely an approach which seeks to enhance quality as well as performance that will meet or even exceed client expectations. This is often achieved through integrating just about all quality-related features and processes through the company. TQM discusses the general quality measures utilized by an organization including controlling quality style and improvement, quality manage and upkeep, quality enhancement, and high quality assurance. TQM considers all high quality measures taken whatsoever levels as well as involving just about all company workers.

Q. 4. Can Japanese, be really leader in auto production and marketing, all over the world? Justify your moves.

Answer: The Japanese automotive industry is one of the most prominent and largest industries in the world. Japan has been in the top three of the countries with most cars manufactured since the 1960s, surpassing Germany. The automotive industry in Japan rapidly increased from the 1970s to the 1990s (when it was oriented both for domestic use and worldwide export) and in the 1980s and 1990s, overtook the U.S. as the production leader with up to 13 million cars per year manufactured and significant exports. After massive ramp-up by China

Group B
Case -3 (10Marks)
How to Win at Westinghouse

Q. 1. Describe the ways in which international business has an impact on your life.

Answer: There are several different ways to transport goods globally, of course. Ocean transportation is my area. The container shipping industry has a huge impact on world trade, the environment and history. Not only that, but also it provides valuable support in subject areas such as geography, business studies, economics and commerce. I truly am proud to be a part of this industry. That is why I wanted to gather some simple facts for us all to learn and keep in mind in our daily routines.

As far as history goes, the Egyptian coastal sailing ships were trading as early as around 3,200 BC. Today, maritime transportation is at a stage where

Q. 2. Pick an Indian corporation with which you are familiar and analyse the reasons why it might be motivated to expand its internationalism.

Answer:Owing to the prevalence of a realist conception in the literature on Chinese engagement with the developing world, the notion of analysing Chinese aid practices according to humane internationalism may at first glance seem a little odd. China, however, has a long history of involvement—one that has undergone shifts in policies and motivations and which has a broad spectrum of aspects often analysed individually rather than as a complete set. These deserve to be analysed under a more objective lens, rather than written off as realist solely because of China’s perceived need to feed its rapidly developing

Q. 3. What sorts of adjustments might McDonald’s have to make in its operations in India?

Answer: The international fast food chains appear to understand the need for product customization particularly well. A significant number of Indians are vegetarian by choice or for religious reasons, and strict taboos remain on the mingling of vegetarian and non-vegetarian foods in the same kitchen or on the same table. McDonald’s took note of that as far back as 1990, when it began establishing local supplier partners, six years before it opened its first restaurant in India. Working on its first no-beef, no-pork menu, the company ensured that suppliers respected the beliefs of its future customers. Vegetarian products are prepared with

Q. 4. What do you believe India must do to improve its international competitiveness?

Answer: As economic reforms gain momentum, India’s growth is likely to accelerate towards its high long-run potential. Measures such as a national Goods and Services Tax (GST), accompanied by a dismantling of inter-state check posts, can be transformational and significantly improve the domestic and international competitiveness of Indian manufacturing firms, said the latest India Development Update of the World Bank. 

According to its estimates, simply halving the delays due to road blocks, tolls and other stoppages could cut freight times by some 20-30 percent and logistics costs by an even higher 30-40 percent. This alone can go a long way in boosting the competitiveness of India’s key manufacturing sectors by 3 to 4 percent of net sales, thereby helping India return to a high growth path and enabling large scale job creation.

According to the Update, a twice yearly report on

Q. 5. How do you perceive your managerial career will have an impact by the phenomenon of international business?

Answer:Although the district manager expected only average performance from this group, its productivity increased significantly. This was because the assistant manager in charge of the group refused to believe that she was less capable than the manager of the superstaff or that the agents in the top group had any greater ability than the agents in her group. She insisted in discussions with her agents that every person in the middle group had greater potential than those in the superstaff, lacking only their years of experience in selling insurance. She stimulated her agents to accept the challenge of outperforming the superstaff. As a result, each year

Case-4 (10
Doing Business with the East—Motorola Style

Q. 1. Describe some recent changes in your life or in your community that reflects the world’s shift from the West to the East.

Answer:Major shifts of power between states, not to mention regions, occur infrequently and are rarely peaceful. In the early twentieth century, the imperial order and the aspiring states of Germany and Japan failed to adjust to each other. The conflict that resulted devastated large parts of the globe. Today, the transformation of the international system will be even bigger and will require the assimilation of markedly different political and cultural traditions. This time, the populous states of Asia are the aspirants seeking to play a greater role. Like Japan and Germany back then, these rising powers are nationalistic, seek redress of past grievances, and want to claim their place in the sun. Asia's growing economic power is translating into

Q. 2. What factors would you suggest are behind the shift from the West to the East?

Answer: Investors today would be wise to view the words above as an appropriate metaphor for how to approach today’s global economic landscape. Western industrialized economies that were once viewed as the drivers of global economic growth are now struggling to recover from the latest economic crisis and subsequent recession. Meanwhile, Asian economies have continued relatively healthy growth and are now surpassing the West as the new drivers of the global economy. The region’s unmatched growth throughout the past decade has attracted investors looking to capitalize on the region’s growing middle class and rising consumption; it has also given rise to a new generation of investors in Asia who have benefited from rising wages and a powerful export-driven economy.

China is undoubtedly the locomotive behind Asian

Q. 3. Did Japanese management style evolve from the Japanese culture, or did Japanese culture evolve from Japanese management style?

Answer: In smaller companies, an entirely different corporate culture developed. Similar to the Meister system of Germany, new recruits are placed under skilled senior specialists and spend years learning every technique that they have. They are trained to develop deeper understanding of specific areas of skills instead of the broader and less deep training that those in a larger corporation receive. They learn to produce work of high quality using few simple tools and few or no advanced industrial tools.

The Japanese term "hourensou" (also rendered as “Ho-Ren-So”) refers to frequent reporting, touching base and discussing -- important attributes that are said to characterize collaboration and information flow within effective Japanese corporate culture. "GenchiGenbutsu" refers to "getting your hands dirty", to identify or solve immediate

Q. 4. Describe the business-government ties that result in Japanese trade barriers.

Answer: Government-business relations are conducted in many ways and through numerous channels in Japan. The most important conduits in the postwar period are the economic ministries: the Ministry of Finance and the Ministry of Economy, Trade and Industry (METI, formerly the Ministry of International Trade and Industry, known as MITI). The Ministry of Finance has operational responsibilities for all fiscal affairs, including the preparation of the national budget. It initiates fiscal policies and, through its indirect control over the Bank of Japan, the central bank, is responsible for monetary policy as well. The Ministry of Finance allocates public investment, formulates tax policies, collectes taxes, and regulates foreign exchange.

The Ministries

Q. 5. Which of the Four Tigers of Asia do you believe has the greatest potential for long-term economic growth? Why?

Answer: The "four tigers" of Asia—Hong Kong, Singapore, South Korea, and Taiwan—built strong market economies in the absence of truly democratic practices.   Every country in the world faces profound dislocations in the years ahead.  Nothing will remain the same, and there is no way to escape the new forces unleashed by the accumulation of technology, changing tastes, and productivity.  Every region of every country is becoming more and more interdependent with the rest of the nation, its neighbors, and the world.  This presents major consequences, both good and bad.  There is a clear dividend in terms of increased output per person.  But can the process be dealt with in a way that permits some management of

Q. 6. What must China do to realise the magnitude of economic success earned by the Japanese?

Answer: China's economic system before the late-1990s, with state ownership of certain industries and central control over planning and the financial system, has enabled the government to mobilize whatever surplus was available and greatly increase the proportion of the national economic output devoted to investment.

Analysts estimated that investment accounted for about 25 percent of GNP in 1979, a rate surpassed by few other countries. Because of the comparatively low level of GNP, however, even this high rate of investment secured only a small amount of resources relative to the size of the country and the population. In 1978, for instance, only 16 percent of

Q. 7. Outside of Singapore, which of the other ASEAN nations holds potential for economic success? Why?

Answer:Labor-force expansion and productivity improvements drive GDP growth—and ASEAN is making impressive strides in both areas. Home to more than 600 million people, it has a larger population than the European Union or North America. ASEAN has the third-largest labor force in the world, behind China and India; its youthful population is producing a demographic dividend. Perhaps most important, almost 60 percent of total growth since 1990 has come from productivity gains, as sectors such as manufacturing, retail, telecommunications, and transportation grow more efficient.

ASEAN has dramatically outpaced the rest of the world on growth in GDP per capita since the late 1970s. Income growth has remained strong since 2000,

Case -5 (10 Marks)
Winning with Bureaucracy at McDonald’s

Q. 1. Discuss the advantages and disadvantages of the various forms of departmentalization?

Answer:Departmentalization involves dividing an organization into different departments, which perform tasks according to the departments' specializations in the organization. Departmentalization as a means of structuring an organization can be found in both public and private organizations. An organization can structure itself into departments in the following ways.

Functional Departmentalization: In functional departmentalization, an organization is organized into departments based upon the respective functions each performs for the organization. For example, a manufacturing company may create a production department, sales and marketing department, an accounting department, and a human resources

Q. 2. What are the strengths and weaknesses of a bureaucratic organisation?

Answer:Bureacracies are normally accused of terrible inefficiency and rigidness.  I read an article once by a guy who said that bureaucracies are actually very efficient and people complain because they have to have all their ducks in a row in order to accomplish anything. Income tax might be a good example. Organizational structure provides a backbone upon which all of a company's operational policies and work processes are built. Managerial reporting relationships and the flow of ideas, decisions and information are formally laid out by a company's organizational structure. Structures can be relatively flat or tall; taller structures tend

Q. 3. How does downsizing make firms more competitive in the global arena?

Answer: In a greater competitive marketplace, speed or response time is critical. How organizations response to customers and other stakeholders or be the first to market may make a significant difference as time is at a premium. Organizations that can develop new technologies faster or can adapt to changes in the market faster are the ones that will survive the competition. To maximize response time, organizations have been flattening their hierarchies and structures, in addition to other initiatives such as downsizing and networking. Flat organizations make decisions more quickly because each person is closer to the ultimate decision-makers. There are fewer levels of management, and workers are empowered to

Q. 4. Compare and contrast bureaucratic control with clan control. Which is better?

Answer:Bureaucratic Control:Bureaucratic control is the use of rules, policies, hierarchy of authority, written documentation, reward systems, and other formal mechanisms to influence employee behavior and assess performance. Bureaucratic control can be used when behavior can be controlled with market or price mechanisms.

Clan Control: Clan control represents cultural values

Q. 5. Discuss the strengths and weaknesses of budgeting?

Answer:A budget is a quantitative expression of a plan for a defined period of time. It may include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows. It expresses strategic plans of business units, organizations, activities or events in measurable terms.A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods. In other terms, a budget is an organizational plan stated in monetary terms.

Q. 6. How can a manager make control systems more effective?

Answer:Companies achieve their goals by developing strategic plans and implementing control systems to make sure their operations are proceeding according to plan. Such control systems are effective when they limit deviations from the strategic plan and alert management when deviations are large enough to endanger the plan. Effective control systems also ensure that company activities comply with legal and regulatory requirements and internal standards. This is especially important for small businesses where practices may be more informal.

CASE 6: (10Marks)
Political Risk Assessment and Euro Disney
Q. 1. Describe the major conflicts that arise between the host country and the MNC.

Answer: Although the Multinational Corporations (MNCs) has no power over the host government, if may have considerable power under that government. By being able to influence certain factors, the MNC has the opportunity to help or harm national economics; in this sense, it may be said to have power against host governments. Critics of the MNC perceive these powers as potential perils to host societies. The strategic aspects of a host country’s national policy that are subject to the influence of the MNC include:

Q. 2. Discuss the major conflicts that arise between the home country and the MNC.

Answer:1. Extract excessive profits because of their general monopolistic advantages:
Some multinational companies are involved in a product which does not have any competition in the host country either because of technological sophistication or patents. This results in monopoly with price controls in the hands of the MNCs. This was the major complaint of the government of India against Coca Cola Company which prompted the company to cease operations there. Similarly, companies like IBM may have a price

Q. 3. What role does ideology play in the manifestation of political risk?

Answer:Political risk has been a significant factor in international business since the end of World War Two. Some challenges have been nearly continuous throughout this period, and can be regarded in some respects as ‘background noise’ at the global level, even if the political landscape might shift dramatically in specific locations. We will address these routine issues here and explain their effect on international businesses.

There have also been signiicant discontinuities in the global political landscape, especially in the last two decades. These macro-shifts have not necessarily changed the array of risks facing international business, but they have changed the character of

Q. 4. Evaluate both the good and bad features of international law as it impacts international business.

Answer: International law is the set of rules generally regarded and accepted as binding in relations between states and between nations.It serves as a framework for the practice of stable and organized international relations. International law differs from state-based legal systems in that it is primarily applicable to countries rather than to private citizens. National law may become international law when treaties delegate national jurisdiction to supranational tribunals such as the European Court of Human Rights or the International Criminal Court. Treaties such as the Geneva Conventions may require national law to conform to respective parts.

Much of international law is consent-based gove

Q. 5. Speculate the main reasons behind the various forms of host country intervention?

Answer:In recent years, the efforts of host governments to maintain control over their own national economies have increasingly restricted the freedom of MNC managers in deploying economic resources. Of equal importance, host governments have often interfered with the autonomous process of MNC strategy formulation.

Managers who are or who are likely to be faced with such restrictions may find it useful to distinguish between these two different kinds of government intervention. The first, which sets the fiscal and regulatory ground rules for an MNC’s

Q. 6. Give recent examples of international situations in which MNCs have been at severe risk due to host country Instability?

Answer: Foreign business operations and investments are affected by societal actions and policies, as well as, governmental regulations and restrictions; thus, making MNC particularly vulnerable.  Societal actions, which have increased, include war, revolutions, terrorism, and civil unrest.  MNC must be conscious of political unrest, instability, and the disposition of the government of a current or future foreign market.  Political instability is the most detrimental risk due to its element of instability.  When political turmoil exists, so does social and economic unrest.  For example, some Latin American countries welcome private

Q. 7. Review the various forms of protection from political risk that are available to MNCs?

Answer:In general, there are two types of political risk, macro risk and micro risk. Macro risk refers to adverse actions that will affect all foreign firms, such as expropriation or insurrection, whereas micro risk refers to adverse actions that will only affect a certain industrial sector or business, such as corruption and prejudicial actions against companies from foreign countries. All in all, regardless of the type of political risk that a multinational corporation faces, companies usually will end up losing a lot of money if they are unprepared for these adverse situations. For example, after Fidel Castro's government took control of Cuba in 1959

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