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1 Gurukripa s Guideline Answers for May 015 Exam Questions CA Inter (IPC) Information Technology and Strategic Management Section A Information Technology Question No.1 is compulsory. Answer any five questions from the remaining six questions. Q Question Answer/Reference M Answer all the following questions in Brief: (a) What are the key benefits of Business Process Automation (BPA)? Page No. 4.11, Para 4.3.6, Item 6 involving 3Cs (b) How Extranets are used by Business Organizations? Page No. 3.4, Para 3A.3.3, 3A.3.4 (c) Name the various Phases of System Development Life Cycle (SDLC) in the logically correct order. Page No.1.4, Para 1A.3.1 (d) Briefly explain three tiers in Three Tier Architecture. Page No..14, Para.3.6, Point (D) (e) What are the components of the Computerized Information Page No.1., Para 1A..1 + Concept Processing Cycle? Explanation in Para 1A.. ABC Limited is a Software Development Company, which appointed 50 Software Engineers in August 014 at a monthly salary of `30,000. All these Engineers shall be entitled for an increment in their monthly salary after 6 months. The increment on present monthly salary shall be based on their performance to be evaluated on a 100 Marks Scale as per details given below: Performance Marks < 70, then Increment shall be 10% of present Refer Chapter 4 and salary. See Diagram below. 70 Performance Marks < 80, then Increment shall be 0% of 8 present salary. Performance Marks 80, then Increment shall be 30% of present salary. Draw a Flow Chart to enable to print the details like Name of the Engineer, Performance Marks, Monthly Increment Amount and Revised Monthly Salary for each of these 50 Engineers. (a) Describe the following Service Models of Cloud Computing. (i) Network as a Service (NaaS) Page No.3.15, Para 3B..5, Point 4, 4 (ii) Platform as a Service (PaaS) (b) What is Server? Briefly explain any four types of Servers based on Page No.1.18, Para 1B.1.4, the nature of service they provide. Page No.1.19, Para 1B (a) Which Network Topology can be used in case of Military Installations with a very small number of Nodes and why it should Mesh Network may be used. be used? List the Advantages and Disadvantages of such Network Page No..18, Para Topology. (b) What is Accounting Information System (AIS)? Briefly describe Page No.5.0, Para 5.3.6, Point (1) & the Key Components of AIS. (4) 4 (a) Differentiate between Explicit Knowledge & Tacit Knowledge. Page No. 5.7, Para 5..1, Point (3) 4 (b) Explain the Pre requisites of ACID Test for any Transaction Processing System (TPS). Page No. 5.6, Para 5..3, Point (3) 4 (a) Discuss any four key characteristics of Cloud Computing. Page No. 3.1, Para 3B.. 4 (b) What are the major Process Controls, which should be enforced through Front End Application System, to have consistency in the Page No.6.11, Para control process? Write short notes on any four of the following: (a) Radical Redesign Page No.4.5, Para 4..3 & Page No.1., Para Point 3 (b) Android Page No. 3.1, Para 3B.4.1 May 015.1

2 Q Question Answer/Reference M (c) Peer to Peer Networks (PP) Page No..1, Para.3.4 (d) Electronic Purses Page No. 5.8, Para 5.4.7, Point D (e) Network Virtualization Page No. 3.11, Para 3B.1.1 Section B Strategic Management Question No.8 is compulsory. Answer any five questions from the remaining six questions. Q Question Answer/Reference M 8 (a) Analyse the following cases in the context of Michael Porter s Five Forces Model: Page No.7.14, Para (i) A Supplier has a large base of Customers. Customer Bargaining Power (ii) A Manufacturer of Sports goods has the advantage of economies of Large Scale Production. New Entrants / Bargaining Power (iii) Products offered by Competitors are almost similar. Substitute Products (b) In your view, what is the role of Corporate Level Managers in Strategic Management? Page No. 8.4, Para (c) What does the concept of Question Marks in the context of BCG Growth Share Matrix signify? What Strategic options are open to a Business Firm which has some Question Marks in the portfolio of its Business? (d) Determining an appropriate mix of Debt and Equity in a Firm s Capital Structure can be vital to successful strategy implementation. Discuss. (e) What is an Hour Glass Structure? How this Structure benefits an Organization? (a) State with reasons which of the following statements is Correct or Incorrect (i) The PESTLE Framework is used for analyzing both Macro and Micro Environment. (ii) Demarketing Strategies may aim to reduce demand temporarily or permanently. (b) What are the characteristics of Six Sigma that separate it from earlier quality programmes? Explain briefly. The Management of a Sick Company manufacturing various Electrical Home Appliances seeks your advice for an appropriate Retrenchment Strategy. What will be your advice and why? (a) To which Industries the following environmental changes will offer Opportunities and pose Threats (Name any two Industries in each case). Give reasons for your answer. (i) Significant reduction in Domestic Air Fares spanning over a long period. Page No. 9.11, Para 9.3.5, Point,3 Page No. 10.4, Para Refer Answer below 3 Hint: Incorrect. PESTLE is only for Macro Environment. Page No. 7.7, Para 7..3 Hint: Correct. Page No. 10.3, Para , Point (13) Page No. 1.9, Para Page No.10.16, Para Refer Answer below Refer Answer below (ii) Cut in Interest Rates by Banks. Refer Answer below (b) What steps would you take to construct a Strategic Group Map for an Industry? Page No. 9.4, Para (a) Do you agree with the statement the Strategic Management Concepts are of no use to Government Organizations and Page No. 1.13, Para 1.4.5, Medical Organizations? Explain with reasons. (b) Quite often Strategies of most Business Organizations are a combination of Planned Strategies and Reactive Strategies. Page No.10., Para Explain with reasons. 3 May 015.

3 Q Question Answer/Reference M 13 Distinguish between the following: (a) Strategy Formulation and Strategy Implementation. Page No. 11., Para (b) Vision and Mission. Page No.8.8, Para 8.3.1, Write Short Notes on the following: (a) Product Life Cycle (PLC) & its Significance in Portfolio Diagnosis. Page No. 9.10, Para 9.3.3, Point 3 4 (b) Publicity and Sale Promotion OR Page No.10.1, Para , Point 4 3 Conglomerate Merger. Page No , Para 10.., Pt.4(d) 3 Answer to Question No. Flow Chart START CLEAR ALL WORKING LOCATIONS Let N = Number of Employees, NAME = Name of Employee, M = Performance Marks, S = Present Salary, I = Increment, RS = Revised Salary N = 1 READ NAME, M, S YES M < 70 I = S * 0.1 NO N = N + 1 M < 80 YES I = S * 0. NO I = S * 0.3 RS = S + I PRINT NAME, M, I, RS NO N = 50 YES STOP May 015.3

4 Answer to Question No.11(a) Question Opportunity Threat (i) Significant reduction in Domestic Air Fares spanning over a long period. (ii) Cut in Interest Rates by Banks. Get CA CMA CS Updates and More From Caultimates.com Travellers both Business and Non Business (affordability) Air Ticketing Agents, E Intermediaries, Credit Card Agencies, Travel Agents, Tourism Agents, etc. (higher business volumes). Borrowers (Reduction in Interest Rate), Banks (higher Volume of Business due to lower interest rates) Other Modes of Transport (e.g. Railways, Roadways, Cabs on Rent), Company itself (loss of Revenue) Other Categories of Lenders (Reduction in Business Volume) Depositors (lower rate of Interest on Deposits accepted by Banks) Additional Practice Questions CA Inter (IPC) Information Technology Question 1: Chapter 1: Differentiate between Hardware Resources and Software Resources. Solution: 1. Hardware Resources refer to Machines Computers, Video Monitors, Magnetic Disk Drives, Printers, Optical Scanners and Media floppy disks, Magnetic tape, Optical disks, Plastic Cards, Paper Forms, etc.. Software Resources refer to Programs Operating System Programs, Spreadsheet Programs, Word Processing Programs, Payroll Programs and Procedures Data Entry Procedures, Error Correction Procedures, Paycheck Distribution Procedures, etc. Question : Chapter : Write a short note on Protocols. Solution: Refer Para.3, Para.6.. Additional Points are as under A Protocol defines the following three aspects of digital communication (a) Syntax: The format of data being exchanged, character set used, type of error correction used, type of encoding scheme (e.g signal levels) being used. (b) Semantics: Type and Order of messages used to ensure reliable and error free information transfer. (c) Timing: Data Rate selection and correct timing for various events during data transfer. Question 3: Chapter 4: Entity Relationship Diagram Draw an E R Diagram based on the following facts: A Bank records information about its customers and their accounts. A Specific Account can have many Owners (Customers), and a Specific Customer can own and have only one account at most. Information about Customers includes their Aaadhar Number, Phone Number, Name and Address. Information about Accounts includes Account Number, Type, and Balance. Solution: Note: Underlined Attributes represent the Primary Key which are unique and are used for identification of a Record. Phone Name Type Account Number Aaadhar Number Address Balance Customers Owns Accounts May 015.4

5 Question 4: Chapter 4: Decision Table Analyze the completeness of the following reduced Decision Table: Table X R1 R R3 R4 R5 C1 Condition A Y N N N N C Condition B Y Y N N N C3 Condition C N Y N C4 Condition D N N A1 Action 1 X X X A Action X X Solution: To check for the completeness of the Decision Table, the steps are as under: Step 1: Count the number of dashes in the Condition Entries for each Rule. The Number of Rules represented by each Rule is m, where m is the number of dashes. Where there are no dashes, the number represented is 0 = 1. A single dash means 1 = and so on. Step : Total the Number of Dashes represented by the different Rules as computed above. Step 3: Compare the Number of Rules (Number of Dashes) represented by the Reduced Table with n (where n is the Number of Conditions). If they are equal (and all other features are correct), the Table is complete. Analysis: Steps 1 & : In the above case, Sum of the Number of Dashes in Rows R1, R, R3, R4 and R5 are = = = 1 (A) Step 3: (Number of Conditions) = 4 (where Conditions are C1, C, C3, C4) = 16 (B) Conclusion: Since (A) and (B) are not equal in the above case, the Decision Table is not complete. Question 5: Chapter 4: Data Flow Diagram Discuss Advantages and Limitations of using Data Flow Diagram. Solution: Refer Page 4.16 Para Additional Points are given below Advantages of DFD Limitations of DFD It aids in describing the boundaries of the system. It is easy to communicate the existing system knowledge to the Users. It is a straightforward graphical technique which is easy to recognize. It provides a detailed representation of System Components. It is used as the part of System Documentation File. It is easier to understand by both Technical & Non Technical persons. It supports the logic behind the data flow within the system. It can make the Programmers little confused in understanding the system. It takes a long time to create a DFD, so long that the Analyst may not receive support from Management to complete it. Physical considerations are left out in a DFD. Question 6: Chapter 11: Write Short Notes on Hourglass Structure. Solution: A. Meaning: (Also see Page 11.1, Para for Other Structures) Hourglass Organisation Structure 1. Hourglass Organization Structure consists of three layers with a constricted Middle Layer, a short and narrow Middle Management Level.. Information Technology links the top and bottom levels in the organization taking away many tasks that are performed by the Middle Level Managers. 3. Traditional Middle Level Managers are often Specialists. But the Managers in the Hourglass Structure are generalists and perform wide variety of tasks. They would be handling cross functional issues in marketing, finance or production. Wide at the top Narrow at the middle Widest at the bottom May 015.5

6 B. Advantages: C. Disadvantages: 1. Reduced Costs.. Better Responsiveness in decisions, since decision making authority is shifted close to the source of information so that it is faster. 1. Promotion opportunities for the lower levels diminish significantly, due to reduced size of middle management.. Continuity at same level may bring monotony and lack of interest and it becomes difficult to keep the motivation levels high. Note: Organisations try to overcome these problems by assigning challenging tasks, transferring laterally and having a system of proper rewards for performance. May 015.6

7 STUDENTS NOTES May 015.7

8 STUDENTS NOTES May 015.8