ECONOMICS PROJECT

By: Pallav Kumar (8032) Rohan Gupta (50134) Rohit Beniwal (50135)

ACKNOWLEDGEMENT
First and foremost, we would like to thank the supervisor of this project, Mr. Abhishek Kumar for the valuable guidance and advice. He inspired us greatly to work in this project. I would also like to thank him for showing us some example that relates to the topic of our project. Finally, an honorable mention goes to our family and friends for their understandings and supports in completing this project. Without help of the particular that mentioned above, we would have faced many difficulties while doing this project.

THE CASE
Shaheed Sukhdev College of Business Studies (SSCBS) is a premier institution of the University of Delhi, imparting education in the fields of management and information technology with excellence and vision. Founded in 1987 by the Delhi Administration on the initiation of UGC and the Ministry of Human Resources, Shaheed Sukhdev College of Business Studies, or CBS, as it is better known in corporate circles, is the only undergraduate professional institute of the University of Delhi imparting education in the field of management. CBS has built its reputation by the practical approach to teaching theory grounded in real-world application. CBS has a very limited number of seats (about 240) for its flagship B.B.S. and B.F.I.A. courses. With about 30,000 students applying for the college, the competition is becoming increasingly tougher year by year. The demand for a place in the College of Business Studies has risen phenomenally. Also as it the only college offering the Bachelors of Finance and Investment Analysis program, and among the only three colleges offering the Bachelors of Business Studies program, it enjoys a kind of monopoly over other colleges in the university which offer the B.Com and B.Com honours programs. This monopoly lands it in favourable position with both the students and the corporates who offer great placements.

Solution
DEMAND
What we have here is a very interesting case study about our own college. Here in the above case study, the first question to be answered is HOW the demand for S.S.C.B.S. has steadily increased in the recent years and what has been the reason for this rise for the demand of BRAND S.S.C.B.S.

35000 30000 25000 20000 15000 10000

Y-axis

Increase in DEMAND for SSCBS

5000 0 2005 2006 2007 2008 2009 2010

X-axis X-axis=Years Y-axis=Number of Application

The above graph shows that how the demand for S.S.C.B.S. has increased from 18500 in year 2005 to 30700 in year 2010. The above shown graph is a Demand Curve, with the X-axis showing the TIMELINE and the Y-axis shows NUMBER OF APPLICATION RECEIVED. As we all know, Demand is a MULTIVARIATE RELATIONSHIP, i.e., it is determined by many factors simultaneously. Some of the most important factors determining demand for the commodity are:1) OWN PRICE 2) PRICE OF OTHER GOODS 3) CONSUMERS INCOME 4) CONSUMER TASTE AND PREFERENCE Demand for a commodity is dependent upon the four major variables, expressed symbolically in the form of a Demand Function:

Dx=f (Px,Pz,Y,T)
ACCORDING TO OUR CASE STUDY, the demand function includes Dx= Demand for S.S.C.B.S Px= Importance of BBS (Psychological factor) Pz= Importance of other courses in other colleges Y= Income of students parents T= Students choice and preference for the course. The above formula is applies while keeping Ceteris Paribas at play, i.e., factors other than Price (in this case Importance) being constant.

Now, the important question that arises is-

WHAT HAS BEEN THE REASON FOR THE INCREASE IN DEMAND FOR S.S.C.B.S.??? Some of the most important factors that have led to this increase are: 1) Amongst the Most Rigorous Selection Procedures in India With an intake ratio of 1:120, CBS ensures that its greatest strength is its Human Capital which comprises of some of the sharpest minds of the country. CBS follows a three tier selection process involving a competitive written examination followed by a round of Group Discussions and Personal Interview (GD & PI).

2) Industry Interaction Industry interactions that promote dialogue between students and industry leaders are a part of CBS culture. In addition to frequent visits by guest lecturers that impart industry knowledge to students, the annual corporate seminar Convergence- provides an interface between corporate stalwarts and the students and bridges the important gap between management theory and practice.

3) Illustrious Alumni CBS has been creating managers who have within themselves the mettle to take on the challenges of the future - people with the vision, knowledge and potential to thrive in a dynamic environment. People with the ability and skill sets to drive key initiatives within organizations, men and women of leadership and integrity who are making a difference in business organizations, communities and institutions all over the globe. College of Business Studies is indeed proud of its Alumni. (LIKE YOU SIR :)) 4) Extracurricular Events and Competitions Conducted at a fairly large scale, our events are supported by a number of corporates who sponsor our events due to the visibility it provides them. The annual college festival Crescendo is an example of one such event. Not only is the number of eyeballs the companies attract by sponsoring CBS fairly high, but also the reputation and image build up that is very good.

5) Internships Under the BBS and BFIA programs, students undertake 6-8 week long internships after Semesters II (Optional) and IV (Compulsory). The internships widen the students perspective by providing an exposure to real organizational and environmental situations. This further helps the students to understand and further address the challenges and problems they face during that period an

imperative. 6) Live Projects Besides full time summer internships, our students also work for companies on specific project-based jobs. This helps students assess their own capabilities on the basis of their performance. 7) Student faculty Interaction The pedagogy is determined by the faculty, which is a mixture of case studies, lectures and role plays, making learning not only interactive but also practical and intense.

INCASE OTHER DELHI UNIVERSITY COLLEGES ALSO COME UP WITH BBS AS ONE OF THEIR COURSES,THEN IN THAT CASE THE DEMAND CURVE WILL SHIFT TOWARDS LEFT, as shown below

EQUILIBRIUM
NOW, the second question that we face here is very interesting, the question is HOW EQUILIBRIUM IS MET IN DIFFERENT SOCIETIES DURING THE TIME OF AUDITIONS?? Here, well take the example of VERVE, The street play society of S.S.C.B.S In the year 2010, the number of students auditioned for verve was around 150, but the requirement was only 25, that means the Demand was much more than the Supply (i.e., the society was much in demand by the students but the seats on offer were very limited), in this case reaching to a equilibrium level was required, so the audition was divided in 4 phases and after each phase/round the applicants got lesser and lesser making it not only easier but also effective for the coordinators to select the apt candidate. The equilibrium was met as shown below:-

160 140 120 100 TOTAL 80 60 40 20 0 Round 1 Round 2 Round 3 Final Round REQUIRED A=Equilibrium

In the above diagram, the total number of students was 150 which eventually started decreasing after each round.

The equilibrium was met at point A where the total number of students selected was 25. Therefore, we can say that ECONOMICS PLAYS A VERY IMPORTANT PART IN AUDITIONS FOR ALL THE SOCIETIES...

MONOPOLISTIC COMPETITION
A monopolistic competition is said to take place when in a restricted market, there is a firm/organization that has more influence than others. This can be in the terms of a unique product that they offer, IPR (Intellectual Property Rights), restricted entry or exit, or simply the product or service on offer is of unmatched quality. There are Super Normal Profits in the long run. The consumers are not in a position to negotiate with the sellers as they do not have as such any other alternatives.

Shaheed Sukhdev College of Business Studies (S.S.C.B.S.), offers two of the most sought after business courses in the University of Delhi, viz., Bachelors of Finance and Investment Analysis (B.F.I.A.) and Bachelor of Business Studies (B.B.S.). While the former is offered only in CBS, the latter is offered in three colleges, CBS, Keshav Mahavidhyala (KMV) and Deen Dayal Upadhaya (DDU). Since CBS was the college that initially offered BBS, it has emerged as the leader in its category. The demand of the course, i.e., BBS is continuously on a rise, and the no. of takers only keeps on increasing year after year. The main reason for this surge in demand is the high employability of the students; they are well versed in most basic areas of management once their graduation is complete. The colleges has many privileges over the other two colleges offering BBS, KMV and DDU, irrespective of the fact that they have a better infrastructure than CBS or a better locality, CBS is continually one college that students aspire to be in. Although this is a very good thing for CBS and its image, the college sometimes can play down the role of the other colleges offering the same course since it has a upper hand

over them. This is just like a Firm which provides a service (which can be provided by others also) but the difference is the image, which establishes one as a leader and the other as a follower.

MARGINAL UTILITY AND 2 SOCIETIES

Equilibrium in case of 2 goods (in our case Societies) is attained when

MUx=MUy
i.e., when Marginal utility of Society x= Marginal utility of Society y In our case well took two societies of CBS, which are Verve and CDC.

Number of days spend 1 2 3 4

VERVE 10 8

CDC 9 7

6
4

6
2

Here in the above table, a student is a part of both the societies, but the level of satisfaction from both the societies are different (10-maximum and 1-minimum). On day 1, the level of satisfaction that the student gets from verve is higher, but it is not so in case of CDC, therefore he/she is not completely satisfied. Same thing continues on day 2, but on day 3, the amount of satisfaction that he/she gets

from Verve = satisfaction he/she gets from CDC i.e., 6, therefore here the condition is satisfied that MUx=MUy So, the student will call this day his/her best day in college.

By the above we have tried our best to understand and analyse the various factors of Economics at play in otherwise such simple and often overlooked factors. The concepts of Economics are fairly applicable in real life, they just need to be looked on from the different perspective, i.e., instead of a Laymans from that of an Economists.