NMIMS 3rd SEM Assignment DEC 2025
Consumer Behaviour
Dec 2025 Examination
Q1. A start-up is launching a line of eco-friendly travel gear, aiming to attract environmentally conscious and adventurous consumers. The team has identified that their target market includes individuals who are curious, imaginative, and value sustainability, as well as those who are detail-oriented and prefer reliable, high- quality products. The company wants to use the Big Five personality traits model to segment the market and tailor its marketing strategy, but is unsure how to translate these personality insights into actionable campaign elements. Based on the scenario, how should the marketing team apply the Big Five personality traits framework to design a targeted campaign for a new eco-friendly travel gear brand, ensuring the messaging and product features resonate with consumers high in openness and conscientiousness? (10 Marks)
Ans 1.
Introduction
In modern consumer behaviour studies, personality frameworks play a central role in helping businesses understand how individuals make purchase decisions. For a start-up entering the competitive eco-friendly travel gear market, targeting consumers through the lens of personality traits can provide a clear pathway to crafting personalized messages and product features. The Big Five personality traits model—openness, conscientiousness, extraversion, agreeableness, and neuroticism—offers a scientific foundation to segment and influence customer groups. In this case, the primary focus lies on openness, associated with imagination, creativity, and curiosity, and conscientiousness, linked to responsibility, reliability, and discipline. By designing campaign strategies tailored to these traits, the
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Q2(A). A global cosmetics company is launching an eco-friendly skincare line targeting environmentally conscious millennials. Market research reveals that this segment has high expectations for sustainability and transparency, and is motivated by both ethical values and personal wellness. However, past greenwashing scandals in the industry have made consumers skeptical of new claims. The marketing team must decide how to craft messages and select channels that will break through selective perception filters and build genuine trust. Critique the role of consumer expectations and motives in shaping selective perception during the launch of a new eco-friendly skincare line. Evaluate how marketers should tailor their communication strategies to align with these psychological factors, and justify which approach would most effectively overcome skepticism and drive adoption. (5 Marks)
Ans 2a.
Introduction
The launch of an eco-friendly skincare line by a global cosmetics company comes at a time when consumer expectations for authenticity, sustainability, and transparency are higher than ever. Millennials, in particular, demand brands that reflect their ethical values while supporting personal wellness. Yet, selective perception plays a key role in shaping how messages are received, as skepticism caused by past greenwashing scandals creates barriers. To succeed, marketers must align communication strategies with psychological
Q2(B). A global luxury brand is planning to expand its presence in both Western and Asian markets. The marketing team proposes to segment and target consumers based on Maslow’s hierarchy of needs, designing campaigns that appeal to esteem and self- actualization in the West, and to social and safety needs in Asia. However, some executives are concerned that this approach may not fully capture the complexity of consumer motivations, especially given cultural differences and the tendency for needs to overlap. The team must decide whether to proceed with this framework or adapt it. Critically evaluate the decision of a global luxury brand to use Maslow’s hierarchy of needs as the primary framework for segmenting and targeting consumers in both Western and Asian markets. Considering cultural differences and the overlapping nature of consumer motivations, what improvements would you recommend to enhance the effectiveness of their marketing strategy? (5 Marks)
Ans 2b.
Introduction
A global luxury brand planning to expand in both Western and Asian markets faces the challenge of addressing diverse consumer motivations. The marketing team proposes to use Maslow’s hierarchy of needs as the guiding segmentation framework, emphasizing esteem and self-actualization in the West, and social and safety needs in Asia. While the model offers simplicity, executives are concerned it may overlook cultural differences and overlapping motives. Critically evaluating this decision highlights both the usefulness and
Corporate Finance
Dec 2025 Examination
Q1. An Indian FMCG company is experiencing rapid sales growth but is facing frequent cash flow shortages, leading to delayed supplier payments and missed opportunities for bulk inventory discounts. The CEO is concerned that poor liquidity management could undermine the company’s reputation and growth prospects. The finance manager must analyze the situation and implement effective working capital management strategies to optimize cash flow and maintain smooth operations. How should the finance manager apply working capital management principles to resolve the company’s liquidity challenges, ensuring operational efficiency and the ability to capitalize on new business opportunities? (10 Marks)
Ans 1.
Introduction
In a fast-moving consumer goods (FMCG) company, sales growth is both an opportunity and a challenge. Rapid expansion requires substantial liquidity to finance day-to-day operations, manage supplier relationships, and exploit bulk purchasing discounts. In this case, although sales are rising, frequent cash flow shortages have led to delayed supplier payments and missed opportunities for cost savings. Such liquidity constraints threaten the company’s reputation, bargaining power, and ability to sustain momentum in a highly competitive market. Working capital management thus becomes critical. By optimizing receivables, payables, and inventory, the finance manager can strike a balance between liquidity and profitability. Applying sound
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Q2(A). A perpetuity pays Rs.25,000 at the end of each year. However, due to inflation, the payment increases by 4% annually. The appropriate discount rate is 10%. After 15 years, the perpetuity is expected to be replaced by a new instrument that pays a fixed Rs.60,000 per year in perpetuity, discounted at 8%. Calculate the present value of this entire cash flow stream as of today, considering the change in payment structure and discount rates after year 15. (5 Marks)
Ans 2a.
Introduction
Valuation of financial instruments often involves analyzing cash flows that change over time due to inflation, growth, or structural replacement. In this case, the perpetuity begins with a payment that grows annually, reflecting inflation adjustments, and continues for a fixed period. After fifteen years, the structure shifts to a new perpetuity that provides a fixed payment discounted at a different rate. Understanding such a scenario requires dividing the cash flow stream into phases
Q2(B). A company issues Rs.50,00,000 in 8% redeemable preference shares at a 5% premium, redeemable at par after 6 years. Annual dividend is paid on face value. The issue expenses are 2% of the face value. Calculate the cost of preference shares, considering the effect of issue expenses and premium, and interpret how this cost would impact the company’s overall cost of capital if preference shares constitute 20% of the capital structure. Show all intermediate steps. (5 Marks)
Ans 2b.
Introduction
Preference shares represent a hybrid financing option that combines the features of debt and equity. Investors expect fixed dividends, while companies benefit from raising long-term funds without diluting control. In this case, redeemable preference shares are issued at a premium with annual dividends and are later redeemed at face value. The inclusion of issue expenses further affects the net proceeds. Calculating their cost requires understanding both the dividend obligation and the redemption value to arrive at a realistic measure of financing cost.
Concept and Application
The cost of redeemable preference shares reflects the return expected by investors after
Information Systems for Management
Dec 2025 Examination
Q1. An Indian e-commerce company experiences a sophisticated ransomware attack during a peak sales event, resulting in encrypted databases and disrupted online services. The incident exposes gaps in the company’s backup strategy and communication protocols. The management realizes the need for a robust disaster recovery and business continuity plan to minimize downtime, protect customer data, and maintain stakeholder trust. The CTO is tasked with developing a comprehensive approach to prepare for and respond to future disruptions. Given the situation, how should the company apply disaster recovery and business continuity planning frameworks to ensure rapid restoration of critical services and data integrity after a major cyberattack? (10 Marks)
Ans 1.
Introduction
The rise of cyber threats has made disaster recovery (DR) and business continuity planning (BCP) indispensable components of modern information systems management. In this case, an Indian e-commerce company faced a ransomware attack during a peak sales event, crippling operations by encrypting databases and disrupting online services. The incident revealed weaknesses in backup policies and communication protocols, resulting in extended downtime and reputational risks. For a business operating in a competitive digital marketplace, the consequences of such disruptions extend beyond immediate financial losses to long-term customer trust and brand image. To address these challenges, the CTO must adopt a structured framework for disaster recovery and continuity planning, ensuring rapid
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Q2(A). An established e-commerce platform in India is leveraging AI to deliver personalized product recommendations and is actively encouraging user-generated content such as reviews and unboxing videos. While these strategies have increased engagement, some customers express concerns about privacy and the authenticity of reviews. The marketing team is considering further automation but is wary of eroding trust. The company must evaluate how to use technology and community input to foster loyalty without compromising transparency or ethical standards. Critique the effectiveness of AI-driven personalization and user-generated content in building customer trust and loyalty for an e-commerce platform. (5 Marks)
Ans 2a.
Introduction
In India’s growing e-commerce market, platforms increasingly rely on artificial intelligence (AI) for personalization and on user-generated content (UGC) like reviews and unboxing videos to engage customers. These tools strengthen customer relationships by offering tailored experiences and peer validation. However, concerns around privacy, data use, and the authenticity of reviews challenge their effectiveness in sustaining long-term trust. The company must carefully evaluate the balance between automation and ethical standards to
Q2(B). A national retail chain is facing intense competition from both traditional and online retailers. To differentiate itself, the company has invested heavily in data analytics and digital marketing platforms to deliver personalized promotions and real-time recommendations to customers. While initial results show increased engagement, there are concerns about long-term sustainability, customer privacy, and diminishing returns as competitors adopt similar technologies. Assess the effectiveness of a retail chain’s strategy to use data analytics and digital platforms for personalized marketing in a highly competitive market. (5 Marks)
Ans 2b.
Introduction
Amid fierce competition from offline and online players, retail chains are increasingly leveraging data analytics and digital platforms to deliver personalized promotions and real-time recommendations. This approach aims to boost customer engagement, enhance shopping experiences, and drive sales. While initial outcomes suggest improved responsiveness and higher conversion rates, questions arise about the sustainability of these strategies in a competitive environment. Concerns around privacy, diminishing novelty, and
Organisational Theory, Structure and Design
Dec 2025 Examination
Q1. Critically evaluate the CEO’s approach to centralizing decision-making in a fast- growing pharmaceutical company, which has led to delayed product launches and frustrated department heads. Considering the trade-offs between maintaining quality control and empowering leaders, propose an evidence-based strategy for implementing decentralization and effective delegation. Justify how your recommendations would enhance organizational agility while ensuring accountability.” (10 Marks)
Ans 1.
Introduction
In a fast-growing pharmaceutical company, effective decision-making is critical to balancing innovation with regulatory compliance. The CEO’s choice to centralize authority may stem from a desire to maintain tight control over quality and compliance, which is particularly vital in an industry where errors can have serious consequences. However, centralization has created unintended problems such as delays in product launches and growing frustration among department heads who feel disempowered. This scenario highlights a classic organizational dilemma: how to safeguard accountability and quality standards while enabling faster, more responsive decision-making. A critical evaluation of centralization and decentralization, combined with evidence-based strategies for delegation, can provide the company with the
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Q2(A). Reliance Jio entered the Indian telecom market with a disruptive cost-leadership strategy, offering free and affordable data services that rapidly attracted millions of customers. Competitors were compelled to lower prices and revise their business models, while consumers enjoyed better services at reduced costs. However, this also led to concerns about sustainability, profitability, and regulatory challenges.
Apply the concept of cost-leadership and market positioning to evaluate how Reliance Jio’s strategy reshaped the competitive dynamics of the Indian telecom sector. (5 Marks)
Ans 2a.
Introduction
Reliance Jio’s entry into the Indian telecom sector marked a turning point in the industry, fundamentally reshaping competitive dynamics. By adopting an aggressive cost-leadership strategy, the company offered free voice services and low-cost data packages that disrupted traditional pricing models. Competitors were forced to cut tariffs, merge operations, and rethink their strategies. While consumers benefited enormously, questions arose about long-term sustainability, profitability, and regulatory oversight. Jio’s approach demonstrates both the
Q2(B). Critically analyze how the application of the 7S Framework can help a rapidly expanding e-commerce startup — which has grown from 20 to 500 employees in two years — diagnose and resolve misalignment issues such as unclear roles, inconsistent processes, and declining employee morale. Evaluate which elements of the framework (strategy, structure, systems, shared values, style, staff, skills) should be prioritized to achieve organizational alignment and justify your reasoning.” (5 Marks)
Ans 2b.
Introduction
The rapid expansion of an e-commerce startup from 20 to 500 employees in just two years presents both opportunities and challenges. While growth reflects market success, issues such as unclear roles, inconsistent processes, and declining employee morale suggest organizational misalignment. The McKinsey 7S Framework provides a structured lens for diagnosing and resolving these challenges by examining seven interconnected elements. Prioritizing the right areas can help the startup achieve alignment, sustain growth, and strengthen its organizational
Research Methodology
Dec 2025 Examination
Q1. A consulting firm is preparing to launch a research project on the impact of remote work on employee productivity. The project lead, inspired by recent client experiences, is eager to proceed quickly and has drafted a hypothesis based on anecdotal evidence. However, the team is concerned about the risk of duplicating existing studies and missing key variables such as digital fatigue and communication barriers. They recognize the need to conduct a thorough literature review but are unsure how to structure it to inform their research objectives and methodology. Based on the scenario, how should the research team apply the principles of a critical literature review to ensure their study on remote work and employee productivity is both original and relevant, while avoiding duplication of existing research? (10 Marks)
Ans 1.
Introduction
The shift to remote work has transformed the way organizations function, with productivity emerging as a key concern for managers and researchers alike. While some studies highlight the benefits of flexibility, autonomy, and work–life balance, others emphasize challenges such as digital fatigue, communication breakdowns, and isolation. The consulting firm in this case is eager to explore the impact of remote work on employee productivity but risks falling into the trap of relying solely on anecdotal experiences or duplicating existing studies. To avoid this, a well-structured critical literature review is essential. Such a review not only maps existing knowledge but also identifies research
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Q2(A). A management intern is tasked with studying customer behavior at a busy café in Bangalore. She considers two options: observing customers without their knowledge to capture natural behavior (concealed observation), or informing them in advance and obtaining consent (unconcealed observation). The café owner is open to either method but is concerned about both data authenticity and ethical standards. Evaluate the ethical and methodological implications of choosing concealed (covert) observation over unconcealed (overt) observation in a study of customer behavior in a public café. Weigh the potential for authentic data against the ethical responsibilities of the researcher, and justify which approach would be more appropriate in this context. (5 Marks)
Ans 2a.
Introduction
Observation is a widely used method for studying human behavior in natural settings, especially in public places like cafés. In this case, the management intern must choose between concealed (covert) observation and unconcealed (overt) observation. Concealed observation promises more authentic behavior, while unconcealed observation ensures ethical compliance. The café owner’s concern about both data authenticity and ethical responsibility highlights the central dilemma. The decision must weigh methodological
Q2(B). A research team is analyzing customer satisfaction survey data collected using a 5- point Likert scale. For ease of analysis, they consider treating the ordinal data as interval data to calculate means and run parametric tests. Some team members question whether this is methodologically sound and worry about the impact on the study’s conclusions. Evaluate the implications of treating ordinal data from a Likert scale as interval data in statistical analysis. Should the research team proceed with this approach, or are there risks to the validity of their findings? Justify you recommendation with reference to measurement theory. (5 Marks)
Ans 2b.
Introduction
Likert scale data is one of the most common tools used to measure customer satisfaction, typically captured on a 5-point scale ranging from strongly disagree to strongly agree. The research team faces a methodological debate: should they treat this ordinal data as interval to calculate means and conduct parametric tests? While treating ordinal data as interval simplifies analysis, it may also introduce risks of misinterpretation. The decision must
Supply Chain Management
Dec 2025 Examination
Q1. A national electronics retailer is experiencing rapid growth and is struggling to meet rising customer expectations for faster deliveries and lower shipping costs. Currently, the company operates a centralized warehouse model, resulting in long lead times for customers in distant regions. The executive team is considering a redesign of the distribution network and is evaluating whether to add regional warehouses or invest in advanced technology for route optimization. They must balance operational costs, service levels, and scalability while aligning with the company’s strategic goals. Based on the scenario, how should the company apply a structured network design framework to optimize its distribution network for both cost efficiency and customer responsiveness, considering the trade-offs between centralized and decentralized warehousing? (10 Marks)
Ans 1.
Introduction
For a national electronics retailer experiencing rapid growth, supply chain design becomes a critical driver of competitiveness. As customer expectations for faster deliveries and lower shipping costs intensify, the current centralized warehouse model reveals clear inefficiencies. Long lead times for distant customers not only erode satisfaction but also weaken loyalty in a highly competitive market. The executive team faces a strategic decision: expand to regional warehouses or rely on advanced technologies for optimization. Each option carries trade-offs in terms of cost efficiency, service responsiveness, and scalability. Applying a structured network design framework provides
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Q2 (A). A global electronics manufacturer is expanding into new markets across Asia and Europe. The company must decide whether to centralize its distribution centers in a few strategic locations or decentralize them closer to key markets. Each option presents different implications for transportation costs, lead times, inventory management, and service levels, especially given varying regulations and demand patterns in each region. Assess the trade-offs faced by a global electronics manufacturer when choosing between centralized and decentralized distribution facilities. Critique how these choices impact transportation costs, lead times, inventory levels, and customer service, especially in the context of fluctuating international demand and regulatory environments. What recommendations would you make to optimize facility location strategy? (5 Marks)
Ans 2a.
Introduction
For a global electronics manufacturer expanding across Asia and Europe, distribution network design is a critical strategic decision. The company must evaluate whether to centralize distribution in a few hubs or decentralize facilities closer to regional markets. Both options carry significant trade-offs involving transportation costs, lead times, inventory levels, and customer service. These challenges are compounded by fluctuating international demand, diverse regulations, and cultural variations. A careful assessment of centralization and decentralization is essential to optimize responsiveness, efficiency, and
Q2(B). A leading Indian textile manufacturer maintains a constant production rate throughout the year, relying on inventory buildup to meet high demand during wedding and festive seasons. While this approach ensures product availability, it results in high inventory costs and occasional stockouts. The operations manager is considering whether to adopt a more flexible aggregate planning strategy that leverages demand forecasting and variable workforce arrangements. Evaluate the aggregate planning strategy of a textile manufacturer that uses a level production approach to meet seasonal demand spikes during Indian wedding and festive seasons. What are the strengths and weaknesses of this strategy, and how could integrating demand forecasting and flexible workforce management improve outcomes? (5 Marks)
Ans 2b.
Introduction
In India’s textile industry, seasonal demand peaks during weddings and festivals create unique operational challenges. The manufacturer in this scenario follows a level production strategy, maintaining constant output year-round and building inventory to meet peak demand. While this ensures availability, it also results in high carrying costs and occasional mismatches between supply and demand. Evaluating the strengths and weaknesses of this approach, alongside possible improvements through demand forecasting and workforce flexibility, highlights how aggregate planning can be better
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