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APJ ABDUL KALAM TECHNOLOGICAL UNIVERSITY

FIRST TRIMESTER MBA DEGREE EXAMINATION, NOVEMBER 2015
MBA 16 Business and Society
Max. Marks : 60 Duration: 3 Hours
PART A
Write short answers to all questions
(Each question carries two marks)

1. Explain the term ‘trade embargo’

2. How does Build – Operate – Transfer (BOT) system works?
3. What are the arguments against CSR?
4. Why should we have laws / legislation?
5. What is the role of RBI?
(5 x 2 marks = 10 marks)

PART B
Answer any three questions
(Each question carries ten marks)

6. Explain in detail the SWOT analysis with respect to MNCs in India

7. Discuss the impact of technological environment on business and society
8. Discuss in detail the global financial crisis experienced in 2008-09
9. Explain in detail the role played by the NGOs in the growth and development of
business and society. Give examples.
10. Explain the various steps / stages in finalizing a PPP infrastructure project.
(3 x 10 marks = 30 marks)
PART C
Compulsory Question
(The question carries twenty marks)

11. Answer the question that follow the case given below:

Indian Oil Corporation (IOC) planned to make a foray into foreign market by acquiring a
substantial stake of the Premier Oil in the Jalali oil field in Iran. The project was estimated to
have a recoverable oil reserve of about 20 million tons and IOC was supposed to get nearly 4
million tons.

When IOC started talking to the Iranian company for the acquisition in October 2005, oil
prices were at rock bottom ($11 per barrel) and most refining companies were closing down
due to falling margins. In fact, a lot of good oil properties in the Middle East were up for sale.
Identifying the opportunity, several developing countries made a killing by acquiring oil
equities abroad.

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IOC needed government clearance to invest abroad. The application by Indian company for
investing abroad is to be scrutinized by a committee represented by the Reserve Bank of
India, Ministry of Finance, and Ministry of Commerce.

By the time the government gave clearance for the acquisition, the oil prices had bounced
back to $ 24 per barrel. The Elf of France had virtually taken away the deal from IOC’s nose
by acquiring Premier Oil.

RBI gave IOC the approval for $20 million investment, took more than a year for clearing
because the structure for such investments were not in place.

Questions:

1. Discuss the environment of business revealed by this case.

2. Even if Elf had not acquired Premier Oil, what would have been the impact of the
delay in clearance on IOC?
3. What are the lessons of this case?

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