IGNOU| BUSINESS ORGANISATION AND MANAGEMENT (BCOC - 132)| SOLVED PAPER – (DEC - 2023)| (B.COM)| ENGLISH MEDIUM
BACHELOR OF COMMERCE
(GENERAL) (B. COM. G) (CBCS)
Term-End Examination
December - 2023
BCOC-132
BUSINESS ORGANISATION AND MANAGEMENT
Time: 3 Hours
Maximum Marks: 100
Note: Answer any five questions. All questions carry equal marks.
हिंदी माध्यम: यहां क्लिक करें
1. (a) Classify industry with examples in detail. 10
Ans:- Industry
classification is a system used to classify companies, organizations and
traders into industrial groups based on similar production processes, products
or financial market behavior. This classification helps to summarize economic
conditions, keep track of common forces affecting groups of companies and
create portfolios.
The main
classifications of industries are as follows:-
(i)
Primary Industries: Primary industries involve extracting raw
materials directly from nature. Examples include:
(a)
Agriculture: Farming, livestock and related activities.
(b)
Mining: Extraction of minerals, metals and other natural resources. (c)
Fishing: Catching and processing fish and other marine resources. (d) Forestry:
Harvesting and processing wood and other forest products.
(ii)
Secondary Industries: Secondary industries process raw materials
into more useful and consumption-based products. Examples include:
(a)
Manufacturing: Producing goods such as textiles, steel and automobiles.
(b)
Construction: Constructing and repairing structures such as buildings, roads
and bridges.
(c)
Chemical Industries: Producing chemicals and related products.
(d)
Automotive industry: Design, manufacture and sale of vehicles.
(iii)
Tertiary industries: Tertiary industries provide services that are
not directly related to the production or processing of raw materials. Examples
include:
(a)
Service industry: Provide services such as banking, healthcare,
education and retail.
(b)
Hospitality industry: Provide accommodation, food and entertainment
services.
(c)
Software industry: Develop and sell software products and
services.
(d)
Entertainment industry: Produce and distribute movies, music and
other forms of entertainment.
(iv)
Quaternary industries: Quaternary industries focus on information
services. Examples include:
(a)
Knowledge industry: Provide information and knowledge through
research, publishing and education.
(b)
Consulting industry: Provide expert advice and consulting
services.
(v)
Quintile industries: Quintile industries focus on human services.
Examples include:
(a)
Healthcare industry: Provide medical services and healthcare
products.
(b) Social
service industry: Provide social services such as counselling,
social work and non-profit organizations.
(vi)
Market-based classification systems: A number of market-based
classification systems are used in finance and market research, including:
(a) Global
Industry Classification Standard (GICS): Developed by Standard & Poor's
and MSCI.
(b)
Industry Classification Benchmark (ICB): Developed by FTSE.
(c)
Refinitiv Business Classification (TRBC): Developed by Refinitiv.
These
classification systems help track common forces affecting groups of companies,
compare the performance of companies to their peers, and construct portfolios.
(b)
Explain various activities of aids to trade in detail with examples. 10
Ans:- Aids to
trade are essential activities that facilitate the smooth exchange of goods and
services between producers and consumers. These activities include:-
(i)
Transportation: Transportation is an important aid in trade that helps reduce the
geographical distance between centres of production and consumption. It ensures
that goods are transported to desired locations efficiently and effectively. Examples
of transport modes include:-
(a) Land: Road,
Railway
(b) Water: River,
Sea, Canals
(c) Air: Airways
(ii)
Communication: Communication is important for establishing contact between
businesses, producers and consumers. It involves the exchange of information
through various means such as:
(a)
Verbal: Face-to-face conversation
(b)
Written: Letters, email, fax
(c) Modern
means: Telephone, teleconference, Internet
(iii)
Warehousing: Warehousing is the process of storing goods in warehouses for
later sale or distribution. It ensures that goods are stored safely and are
readily available for delivery to customers.
(iv)
Banking and Finance: Banks and financial institutions play a vital
role in facilitating trade by providing essential financial services such as:
(a) Loans:
Easy
availability of funds for business
(b)
Overdraft facility: Temporary borrowing of funds
(c)
Insurance: Protection against various business risks
(v)
Advertising: Advertising is an important aid to business which helps in
promoting goods and services to potential customers. It creates awareness about
products and services, which converts into sales.
(vi)
Insurance: Insurance provides protection against various business risks such
as fire, accident, theft or damage to equipment or products. It helps
businesses to recover from losses and maintain stability.
(vii)
Salesmanship: Salesmanship involves the skilful art of selling commercial
goods. It includes personal selling and direct marketing, which are essential
for the sale of services and industrial goods.
(viii)
Mercantile Agents: Mercantile agents such as brokers, commission agents and
auctioneers act as intermediaries between buyers and sellers. They facilitate
trade by removing individual difficulties and connecting the parties involved
in trade.
(ix) Trade
Promotion Organisations: Trade promotion organisations such as the
Indian Chamber of Commerce (ICC), Export Promotion Council and Indian Institute
of Packaging (IIP) resolve the difficulties involved in promoting and
developing trade at the national level. They provide market research,
information clearing house and advocacy services to support businesses.
(x) Global
Organisations for International Trade: Global organisations such as the
World Bank, International Monetary Fund (IMF) and World Trade Organisation
(WTO) promote international trade by providing information on international
marketing trends and facilitating trade between countries.
These aids
to trade are essential for the smooth functioning of commerce and the economy,
making it easier for businesses to operate effectively and efficiently.
2. What is innovation? Explain the types and process of innovation.
20
Ans:- Innovation is the practical application of
ideas that result in a variety of new offerings, such as products, services,
processes and business models, with the intent of improving or disrupting
existing applications or creating new solutions. It involves transforming
creative concepts or inventions into practical solutions that meet unmet needs,
solve problems or take advantage of opportunities.
Types of
innovation:-
There are
several types of innovation, including:-
(i)
Product innovation: The introduction of a new or improved good or
service. This may involve improving technical specifications, materials, software
or the user experience.
(ii)
Process innovation: Implementing a new or improved production or
distribution approach, including changes in operational methods, techniques,
equipment or software.
(iii)
Organisational innovation: Developing a new organisational strategy that
transforms a company's business practices, workplace organisation and
relationships with external stakeholders.
(iv)
Business model innovation: reinventing the fundamentals of a business
system, including how it operates, generates revenue and creates value for
customers.
The
innovation process:-
The
innovation process typically involves two phases:-
(i) Design
phase: focuses on creativity and involves generating new ideas and
concepts.
(ii)
Implementation phase: planning and coordinating the innovation,
ensuring its successful introduction to the market.
Key
aspects of innovation:-
(i)
Originality: New ideas or approaches that break away from established
practices.
(ii)
Practicality: The ability to be implemented and used effectively.
(iii)
Impact: The ability to bring about significant positive change.
Importance
of innovation:-
Innovation
is important to businesses because it:-
(i)
Differentiates the market: allows companies to stand apart from
competitors.
(ii)
Improves customer satisfaction by providing better products and
services.
(iii)
Provides competitive advantage: By introducing new products, services
or processes before competitors.
(iv)
Increases revenue and profitability: Through the introduction of new
products and services.
(v)
Increases stability and flexibility: By adapting to changing market
conditions and customer needs.
Barriers
to innovation:-
(i) Risk
aversion: Fear of failure can hinder innovation.
(ii) Lack
of resources: Inadequate funds, talent or infrastructure can limit innovation.
(iii)
Resistance to change: Resistance to new ideas and approaches can
slow innovation.
Benefits
of innovation:-
(i) Market
differentiation: Allows companies to stand apart from
competitors.
(ii)
Customer satisfaction: Improves the customer experience.
(iii)
Competitive advantage: Provides an edge over competitors.
(iv)
Revenue growth: Introduces new products and services.
(v) Cost
efficiency: Improves processes and reduces costs.
(vi)
Attracting investment and talent: Innovation attracts investors and
talented individuals.
(vii)
Sustainability and flexibility: Enhance adaptability to changing
market conditions.
Conclusion:
-
Innovation is a critical component of business success, involving the practical
application of new ideas to create value. It includes various types, including
product, process, organisational and business model innovations. The process of
innovation involves both creative design and implementation phases.
Understanding the importance and benefits of innovation, as well as the
barriers that hinder it, is essential for businesses to remain competitive and
succeed in a rapidly changing environment.
3. Explain cooperative form of organization. Discuss about
features, merits and limitations of cooperative form of organization. 5+5+5+5
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