Test Series: April, 2021

MOCK TEST PAPER-II

INTERMEDIATE (IPC): GROUP – II
PAPER – 7: INFORMATION TECHNOLOGY AND STRATEGIC MANAGEMENT
SECTION – A: Information Technology
Time Allowed – 1½ Hours Maximum Marks: 50 Marks
Part I : Multiple Choice Questions
Total Marks: 15 Marks
Question Nos. 1 to 5 carries 2 marks each. Question Nos. 1 to 4 belongs to case scenario.
Sneh enterprise deals with wooden furniture for home and offices and operates its business activities
through online mode only. The company owns a website named www.snehenterprise.com which allows its
customer to place orders by making payment online. The enterprise has two warehouses in Delhi and
supplies its goods to Delhi/NCR with no shipping charges on the purchase of products worth Rs. 5000. For
the product delivery to addresses apart from Delhi/NCR; the shipping charges are applicable depending on
the distance. The enterprise has a policy to dispatch the product on third day of receiving the order.
Mr. Anil, who works with the sales team of the enterprise, is responsible to supervise the record of orders
placed by customers and the dispatch of products to the customers. As a promotional campaign; the sales
team announced that a week before Diwali festival, any employee of the enterprise who places order to any
of its products through their website shall be given an extra discount of 15% in addition to the existing
discounts already on the respective products.
Mr. X joins the enterprise as an IT head to suggest how well the technology can be pu t in place to
improvise the overall functioning of the enterprise. He suggested that the enterprise shall follow best of the
Business Management Practices and to have mobile application in order to promote its business. The
management agreed to have mobile application, so hired DEF solutions to develop the mobile app for
enterprise. Mr. Rajesh from DEF solutions, as the team leader of this project observed the current
procedure of enterprise by spending time in various departments. For this, he carries deta iled study to
understand the working of existing business processes, considers the hardware and software requirements,
the flow of data between various processes and so on.
1. Identify the type of business application processing Mr. Anil is working to supervise the records of
orders placed by customers and the dispatch of products to the customers.
(a) Batch Processing
(b) Online Processing
(c) Real time Processing
(d) Leased Processing
2. In purview of the promotional campaign of enterprise, wherein any employee of the enterprise
purchases any product from enterprises’ website; the amount will be deducted in two equal
installments from individual’s salary account. What kind of electronic fund transfer method would be a
best suggestion for Sneh enterprise?
(a) Telephone Transfer
(b) Preauthorized Transfer
(c) Point of sale Transaction
(d) Card Transfer

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3. If the Sneh enterprise uses Office Automation System to track customer orders, and invoice etc.;
which of the following application of Office Automation System will be helpful to the enterprise in
maintaining the schedule of product delivery at different locations?
(a) Word Processing
(b) Desktop Publishing
(c) Electronic Calendaring
(d) Electronic Mail
4. On the basis of work profile of Mr. Rajesh as mentioned in aforementioned case scenario, what do you
think will the position of Mr. Rajesh be?
(a) System Analyst
(b) Network Engineer
(c) Database Administrator
(d) Human Resource Head
5. XYZ organization following the best practices of Business Process Management (BPM) to improvise
end to end business processes in various stages with objective to grow revenues quickly while
controlling resource costs. Identify the point which does not belong to practices of BPM.
(a) BPM strives for process-oriented organizational structure
(b) Continuously train the workforce
(c) Improves business process after certain loss in business
(d) Align employee bonuses and rewards to business process
Question Nos. 6 to 10 carries 1 mark each.
6. Identify the false statement from the following.
(a) Data Flow Diagram is easier to understand by technical and nontechnical audiences.
(b) Flow chart is easy to use where the problem logic is complex.
(c) In the case of any modification in flow chart, it may require complete redrawing.
(d) Box shape represents entity in an Entity –relationship (ER) diagram.
7. Due to Covid 19 pandemic, ABC Pvt. Ltd., Delhi based MNC decided to have all meetings with its
board members across the world through videoconferencing. ABC Pvt. Ltd. uses the software of NN
solutions Ltd. that provides an interoperable cloud-based video conferencing service that connects all
the board members across a wide range of devices and conferencing platforms. This is an example
of_________________.
(a) Platform as a Service
(b) Communication as a Service
(c) Network as a Service
(d) Infrastructure as a Service

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8. Which of the following telecommunication network is created with two or more PCs connected together
and share resources without going through a separate server computer?
(a) Peer-to-Peer Networking
(b) Client/Server Network
(c) Virtual Private Network
(d) Single Tier Architecture
9. Mr. Amar purchased toys for his kids worth Rs. 10,000 from store named Kidshouse and made
payment through his credit card which is issued to him by SBI Bank. The store maintains its account
with ABC Bank. Under which of the following stage of credit card processing Mr. Amar is billed and the
store is paid for the transaction, after receiving the payment from ABC Bank with a subtraction of
interchange fees.
(a) Batching
(b) Clearing
(c) Authorization
(d) Funding
10. In an Information system, Communication controls are responsible for transporting data among all the
other subsystems within a system and for transporting data to or receiving data from another system.
Which of the following communication control specifies the location of nodes in a network and ways in
which these nodes are linked?
(a) Internetworking Control
(b) Topological Control
(c) Channel Access Control
(d) Physical Component Control
Part II: Descriptive Questions
1. (a) Briefly explain various types of audit that may be conducted during System Development
Process. (3 Marks)
(b) List different types of servers based on the nature of services they provide. (2 Marks)
2. (a) Mr. Amit, a system administrator of NNK engineering college, is carrying out on activity of under
the process of establishing network in two newly established computer labs of college. Identify
various ways by which he can make the physical or logical arrangement of links and linking
devices in a network. Explain their characteristics. (6 Marks)
(b) Identify the information system which is capable to link data of an organization from various
sources both internal and external to provide the amount and kind of information executives find
useful. Briefly explain the components of this information system. (4 Marks)
3. (a) Ms. Neha has joined a software development course to learn the development of application
software to address the real life problem of endusers which may be business or scientific or any
other problem. In light of this statement, briefly explain different types of application software.
(6 Marks)

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 (b) Various sequential steps are involved in the implementation of Business Process Automation
(BPA) so that it improvises the performance, accuracy and efficiency of the key business
processes of an organization and make it more efficient and responsive to customers and
employee needs. Briefly explain these steps involved. (4 Marks)
4. (a) Suppose you are hired as a consultant of XYZ organization who wants to implement Six Sigma
as incremental process improvement methodology of BPM to improve the quality of process
output by identifying and removing the causes of defects and minimizing variability in
manufacturing and business processes. Explain the various phases of Six Sigma Life cycle.
(6 Marks)
(b) A threat is a possible danger that can disrupt the operations, functioning, integrity or availability
of a network within an organization. Discuss the various categories of threats related to network
security. (4 Marks)
5. (a) ABC hospital acquired a medical expert system that functions as intelligent assistant to its
doctors in their diagnostic process, laboratory test analysis and teaching medical students.
Discuss various key components associated with Expert System. (6 Marks)
(b) Discuss the major components of DFD. (4 Marks)

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 SECTION – B: STRATEGIC MANAGEMENT
Time Allowed – 1½ Hours Maximum Marks – 50
Question 1 and 2 are compulsory.
Attempt any three questions out of remaining four questions.
1. (A) Amrutha, a third year computer science student living in Tamilnadu, realised that during covid-19
pandemic her mother was not able to buy the basic products that she used in her worship
routine. As a result, many small vendors also went out of business during the lockdown. She
started studying more about the market and observed that the way the business was conducted
had many gaps and loopholes. She dedicated herself to develop a small market place where
consumers like her mother and small vendors could meet and trade, and called it Saamagree.
Her interaction with small vendors was a success factor, where she was able to convince them to
bring their business online and give them volume in sales. Vendors were hesitant early on, but
followed suit when they saw the benefits coming in. Amrutha, being a student was happy with the
growth and wanted to focus on studies more and let the business operate as usual.
To her surprise, her father's company which was a big FMCG brand took over her business
within a year itself, and designated Ms. Srividya Rajanan, to lead the division with Amrutha.
Amrutha, knew her customers and vendors very closely and Ms. Rajanan was an expansion
expert. So their division was developed as a simple structure within the organisation as an
experiment.
Ms. Rajanan’s marketing team expanded swiftly to rope in vendors from areas far and beyond
backed by their in-house distribution channels. However, the initial vendors and customers felt
betrayed as their trust rested in Amrutha and her personalised touch to the business. It took the
team months to build an identity that matched the sincerity of a one woman led brand.
The market segment has been a very niche one for the FMCG brand however the results have
been satisfying. The plan is to go Pan-India in the coming years with Amrutha leading from the
front and Ms. Rajanan exiting the division. New markets, new ways of business are inevitable
and bring a freshness to business is what Saamagree has proven.
Based on the above Case Scenario, answer the Multiple Choice Questions.
1. Which of the following characteristics has been one of the biggest strengths of Saamagree’s
management?
(a) Induce and direct events
(b) Induce and direct people
(c) Influence process to make things happen
(d) Gain command over the phenomena (1 Mark)
2. The leadership team decided to keep the organisation structure straight and simple based on
the intricacies of?
(a) Goals and objectives
(b) Vision statement
(c) Business definition
(d) Business model (1 Mark)

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 3. Before Ms. Srividya Rajanan joined the company, Amrutha’s intent was inclined towards which
of the following strategies?
(a) Combination strategy
(b) Retrenchment strategy
(c) Expansion strategy
(d) Stability strategy (1 Mark)
4. The marketing team of Saamagree could not gauge a very crucial aspect of markets that led to
a temporary dent in its brand positioning. Which of the following is being mentioned in the above
scenario?
(a) Switching costs of products
(b) Distribution channel accessibility
(c) Retaliation from the market
(d) Political influence in the industry (1 Mark)
5. The very ideation of the business was based on bringing about a change in existing ways of
business. What can be said about the basis of building Saamagree?
(a) Market penetration
(b) Business process reengineering
(c) Product differentiation
(d) Best cost provider strategy (1 Mark)
(B) A beverage company has more than 500 soft drink brands, but none of them is anywhere close
to its premium brand One Sip in awareness, revenue and profits. As per BCG's Matrix, One Sip
brand for the beverage company is?
(a) Star
(b) Dog
(c) Cash cow
(d) Question mark (2 Marks)
(C) Davis and Lawrence have proposed three distinct phases for development of matrix structure.
These phases are (1) Cross-functional task forces (2) Product/brand management and (3)
______.
(a) Market/external management
(b) Functional matrix
(c) Mature matrix
(d) Internal management (2 Marks)
(D) A famous restaurant enjoys full occupancy during the lunch and dinner time for last few months.
In fact, many customers go back as they have to wait for their turn. Between 15:00 hours to
18:00 hours, the occupancy rate is near to nil. To raise the footfalls of customers during this lean
time, the owner offers a discount of 20% on total bill if a customer comes in these 3 hours. Whic h
type of marketing strategy does the restaurant follow to attract the customers in the lean period?
(a) Differential Marketing
(b) Synchro-marketing
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 (c) Place Marketing
(d) Concentrated Marketing (2 Marks)
(E) What is the first step in the comprehensive strategic-management model?
(a) Developing vision and mission statements
(b) Performing external audits
(c) Measuring and evaluating performance
(d) Establishing long-term objectives (1 Mark)
(F) Which strategy is implemented after the failure of turnaround strategy?
(a) Expansion strategy
(b) Diversification strategy
(c) Divestment strategy
(d) Growth strategy (1 Mark)
(G) A firm successfully implementing a differentiation strategy would expect:
(a) Customers to be sensitive to price increases.
(b) To charge premium prices.
(c) Customers to perceive the product as standard.
(d) To automatically have high levels of power over suppliers. (1 Mark)
(H) Which one is NOT a type of strategic control?
(a) Operational control
(b) Strategic surveillance
(c) Special alert control
(d) Premise control (1 Mark)
2. Kamal Sweets Corner, a very popular sweets shop in Ranchi, was facing tough competition from
branded stores of packaged sweets and imported goods. The owners realised that their busi ness
reduced by 50% in the last six months, and this created a stressful business environment for them. To
find a solution, they consulted a business consultant to help them develop a strategy to fight
competition and sustain their century old family business. The business consultant advised them to
innovate a new snack for the public and market it as a traditional snack of the region. The owners
liked the idea and developed a new snack called Dahi Samosa, which very quickly became popular
amongst the public and it helped regain the lost business of Kamal Sweets Corner.
One of the very crucial importance of strategic management was used by the business consultant to
help the owners of Kamal Sweets Corner. Which one could it be? Also, was this strategy Reactive or
Proactive? According to you who are more beneficial in general parlance? (5 Marks)
3. (a) The presence of strategic management cannot counter all hindrances and always achieve
success for an organisation. What are the limitations attached to strategic management?
(5 Marks)
(b) What is a strategic group? Discuss the procedure for constructing a strategic group map.
(5 Marks)

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4. (a) Mission statement of a company focuses on the question: ‘who we are’ and ‘what we do’. Explain
briefly. (5 Marks)
(b) Differentiate between Divestment and Liquidation strategy. (5 Marks)
5. (a) Domolo is a premium cycles and cycling equipments brand which targets high spending
customer with a liking for quality and brand name. Their cycles range from rupees fifteen
thousand to rupees one lac. The recent trend of fitness through cycling has created humongous
demand for cycles and peripherals like helmets, lights, braking systems, fitness applications, etc.
The customer base has grown 150% in the last three months. Mr. Vijay, who is an investor wants
to tap in this industry and bring about cheaper options to people who cannot spend so much.
Which business level strategy would best suit for Mr. Vijay’s idea and what are the major sub-
strategies that can be implemented to capture maximum market? (5 Marks)
(b) State the factors of human resource that have influence on employee’s competence. (5 Marks)
6. (a) Suresh Sinha has been recently appointed as the head of a strategic business unit of a large
multiproduct company. Advise Mr Sinha about the leadership role to be played by him in
execution of strategy. (5 Marks)
(b) Explain the various steps in Benchmarking process. (5 Marks)