PI KIT

CAP 2025
Table of
Contents
MARKETING 01

CONSULTING 31

OPERATIONS 52

ANALYTICS 58

FINANCE 73

ENTREPRENEURSHIP 111

ECONOMICS 134

INTERVIEW TOPICS 153

GENERAL AWARENESS 161

INTERVIEW TIPS 200

 MARKETING
BY MARCLAN
THE MARKETING CLUB OF IIM UDAIPUR
MARKETING
What is Marketing?
Marketing is a societal process by which individuals and groups obtain
what they need and want through creating, offering, and freely exchanging
products and services of value to others.

What is Sales?
Sales is an agreement between a buyer and a seller on the price of a
security. e.g., An insurance agent trying to sell insurance or a salesperson
selling encyclopedias door to door.

What are the three types of sales?

Primary Sales: Manufacturers sow the seeds by selling in bulk to
distributors (think warehouses). They focus on building solid
partnerships and volume discounts.
Secondary Sales: Distributors nurture the product, spreading it to
shops (think retailers). They manage smaller quantities and profit
margins.
Tertiary Sales: Retailers bring the product to life, selling it directly to
consumers (think us!). They focus on attractive displays, engaging
customers, and driving final purchases.

What is the difference between Marketing and Sales?

The selling concept takes an inside-out perspective. It starts with the
factory, focuses on the company’s existing products, and calls for heavy
selling and promotion to produce profitable sales. The marketing concept
takes an outside-in perspective. It starts with a well- defined market,
focuses on customer needs, coordinates all the activities that will affect
customers, and produces profits through creating customer satisfaction.

2
MARKETING
What is a Product?
A product is anything that can be offered to a market for attention,
acquisition, use, or consumption.

What is a Service?
An act of performance that one party can offer to another that is
essentially tangible and does not result in the ownership of anything. Its
product may or may not be tied to a physical product.

How are products evolving in “as-a-service” models in the digital age?

Give an example.
Products are shifting towards "as-a-service" models in the digital age,
emphasizing subscription-based access over ownership. For instance,
software as a service (SaaS) like Adobe Creative Cloud offers users a
subscription model for accessing and using software tools, providing
flexibility, regular updates, and cost-effectiveness compared to
traditional purchasing models.

What are Needs, Wants, and Demands?

Needs describe basic human requirements. For example, need for food,
air, water, education, entertainment, etc.

Needs become wants when directed to specific objects that might

satisfy the need. Need for food ---> Want for a Hamburger (KFC Zinger).

Demands are wanted for specific products backed by a willingness and

ability to pay. Marketers do not create needs. Needs pre-exist marketers.
Marketers, along with other social influencers, influence the wants.

3
MARKETING
What is Segmentation, Targeting, and Positioning?
Segmentation is a marketing technique that helps a marketer identify and
profile a distinct group of buyers with everyday needs. Once the
segmentation is complete, the marketer has to decide which segment
he/she shall target to sell his/her product or service. After segmentation
and targeting, the marketer has to establish and communicate the
benefits of offering to develop an image in the customer's mind.

What is an example of STP?

Product: "Serenity Sip," a line of herbal teas focusing on relaxation and
stress relief.
Segmented by: Lifestyle (stressed professionals, health-conscious
millennials, active seniors) and demographics (gender, income,
location).
Targeted through: Corporate wellness programs, influencer partnerships,
yoga studios, and events.
Positioned as: Daily dose of calm, natural well-being boost, mind and
body revitaliser.

What is the difference between customer and consumer?

Customer - Buyer, not necessarily a user.
Consumer - The end user. Might also be the buyer.

A product is designed to give maximum satisfaction to the consumer,

and a product is branded and advertised in a manner that makes the
maximum appeal to the customer. For e.g. A father purchases a 5-star
for his son; in this case, the father is the customer, and the son is the
consumer.

4
MARKETING
What are the 4 P’s of marketing?

Product: These are the goods and services for sale. The customer
considers the product's design, quality, features, and functionality.
Price: The amount the customer needs to pay to purchase the product.
Discounts, payment returns, and credit periods are considered in the
process.
Place: These are the distribution, channel, and logistics methods in which
the product reaches the customer. It includes the location of the
process.
Promotion :It is the act of creating awareness of the product in the minds
of the consumer. It involves persuading consumers to customers through
advertisement, sales promotion, personal selling, and Direct Marketing.

Explain Porter’s Five Forces:

Porter's Five Forces is a framework for analyzing a market's competitive
intensity and attractiveness. Developed by Michael Porter in 1979, it
identifies five forces that influence the profitability of a business:

5
MARKETING

Threat of new entrants: The ease with which new companies can enter
and compete with existing firms. This is affected by factors like entry
barriers, high capital requirements, government regulations, or brand
loyalty.
Bargaining power of suppliers: The ability of suppliers to exert pressure
on businesses by raising prices or reducing the quality of inputs. This is
affected by factors like the concentration of suppliers, the availability of
substitutes, and the switching costs for businesses.
Bargaining power of buyers: The ability of buyers to exert pressure on
businesses by demanding lower prices or higher quality products or
services. This is affected by factors like the concentration of buyers, the
importance of the purchase to the buyer, and the availability of
substitutes.

6
MARKETING
Threat of substitutes: The availability of products or services that can
satisfy the same customer needs as the existing products or services.
This can put pressure on businesses to lower prices or innovate.

Competitive rivalry: The intensity of competition between existing firms

in the market. This is affected by factors like the number of competitors,
the level of product differentiation, and the market's growth rate.

By understanding these five forces, businesses can develop strategies to

improve their competitive position and profitability. For example, a
company might try to

Raise barriers to entry to make it more difficult for new competitors to

enter the market.
Develop strong relationships with suppliers to reduce their bargaining
power.
Offer differentiated products or services to reduce the bargaining
power of buyers.
Develop new or improved products or services to avoid the threat of
substitutes.
Reduce costs and improve efficiency to compete more effectively
with rivals.

What is Digital Marketing?

Digital marketing is a form of direct marketing that links consumers with
sellers electronically using interactive technologies like emails, websites,
online forums and newsgroups, interactive television, mobile
communications, etc.

7
MARKETING
What is Social media marketing?
It is a marketing technique to market your product and brand on various
social media channels like Facebook, X, etc., to increase brand awareness
and generate a lead for the business.

What is Content marketing?

It is creating and promoting content for the product, brand or customer
awareness, lead generation, and traffic growth for the website.

What does AIDA stand for in advertising?

The AIDA model is an Attention, Interest, Desire, and Action acronym. It is
a model used in marketing that describes the steps a customer goes
through in the process of purchasing a product.

What are the 5 C’s of Marketing?

The 5 C’s are a good guideline for making the right decisions and
constructing a well-defined marketing plan and strategy.

1. Customer – Determine the needs and from which clients you’re trying
to satisfy. A few research areas can be market segments, frequency of
purchases, the number of purchases, retail channels, and customer
needs, depending on trends over time.

2. Company – Determine if your company is in a position to meet those

customer needs. For example, whether your company has the right
product line and technical expertise. An excellent tool to find out your
company’s strengths and weaknesses is the “SWOT” analysis.

8
MARKETING
Strengths: innovative products, expertise, and procedures

Weaknesses: lack of knowledgeable technical support or average product

quality

Opportunities: a new international market or a market led by a weak

competitor

Threats: a new competitor or price war

3. Competition – Determine who competes with your company to meet

customer needs. Is the competitor an active competitor, or is it a potential
threat? What are their products exactly? What are their strengths and
weaknesses?

4. Collaborators – Determine if there is an outside source or third-party

help that can help the company, such as distributors, suppliers, etc.

5. Context/Climate – Determine if there are any limitations due to

Political issues: legal problems, trade regulations, taxes, or labor laws
Economic issues: growth rate, labor costs, and business cycle stage
Social impacts: demographics, education, and culture

9
MARKETING
Explain PEST Analysis-

Political Factors: These include government policies, regulations, tax

laws, trade restrictions, political stability, and labor laws that may affect
the business environment.

Economic Factors: These involve economic conditions such as inflation,

exchange rates, interest rates, economic growth, disposable income, and
employment rates that influence purchasing power and business
operations.

Social Factors: These cover cultural and demographic trends, such as

population growth, lifestyle changes, consumer behavior, education
levels, and societal attitudes that shape market demands.

Technological Factors: These include innovations, technological

advancements, R&D activities, automation, and the rate of technological
change, which can create opportunities or challenges for businesses.

10
MARKETING
Which is your favourite advertisement and why?
To be prepared for this question, you should check out a few of the latest
ads. Ads with a social message are easy to explain and analyze because
it is obvious why you like them. Here are a few of the advertisements -
https://antavo.com/blog/best-ads/

Explain - Pure monopoly, Oligopoly, Monopolistic competition, Pure

Competition.

Pure monopoly: A monopoly is a market situation in which there is only

one product seller with barriers to entry of others. The product has no
close substitutes. He is a price maker who can set the price to his
maximum advantage.

Oligopoly: An oligopoly is a market situation where a few firms sell

homogeneous or differentiated products. It is also known as the
competition among the few.

Monopolistic competition: Monopolistic competition refers to a market

situation where many firms sell differentiated products. No firm can have
any perceptible influence on the price-output policies of the other sellers,
nor can it be influenced much by their actions.

Pure Competition: In pure competition, the number of buyers and sellers

is very large. There is perfect competition among them. Every firm is a
price taker and a quality adjuster.

11
MARKETING
What is a brand, and what is the importance of brand management?
A brand is the set of product or service attributes imbibed in the
consumer’s mind in the form of a name, symbol, logo, design, and
trademark. The importance of brand management is :

Product differentiation from competitors

Building a corporate image
Creating a bundle of benefits for different product categories Attract
and retain the most loyal customers

Moment Marketing News and Current Affairs

https://explodingtopics.com/blog/marketing-trends
https://www.adobe.com/uk/express/learn/blog/moment-marketing

What is Influencer Marketing?

We always looked up to certain individuals and wished to be like them.
With the advent of social media, this urge has increased more than ever.
These individuals influence our perspective, lifestyle, and habits. Such
entities are known as Influencers, and the marketing tactic that leverages
their position and engagement for the growth of a company or promotion
of a product, brand or service is known as influencer marketing. This is
one of the most important types of digital marketing strategy.

Types of Influencers:
Nano: 1,000-10,000 Followers
Micro: 10,000-1,00,000 Followers
Macro: 1,00,000-10,00,000 Followers
Mega: More than10,00,000 Followers

12
MARKETING
What is Go to Market strategy?
A go-to-market strategy (GTM strategy) is an action plan that specifies
how a company will reach target customers and achieve competitive
advantage. The purpose of a GTM strategy is to provide a blueprint for
delivering a product or service to the end customer, considering factors
such as pricing and distribution.

What's the purpose of a go-to-market strategy?

Go-to-market strategies create the following benefits within an
organization:
A clearly defined plan and direction for all stakeholders
Reduced time to market for products and services
Increased chances of a successful product or service launch
Decreased likelihood of extra costs generated by failed product or
service launches
Enhanced ability to react to changes and customer desires
Improved management of challenges
An established path for growth
Guaranteed regulatory compliance

13
MARKETING
What is Direct Marketing?
Direct marketing reaches customers directly with products, services, or
corporate information. Thus, the target audience receives all advertising
information directly. Direct marketing is a marketing tactic that uses
advertising to get customers to respond directly to its appeal. Direct
marketing can be used to build buyer relationships and sell.

What are the different Types of Direct marketing?

Telemarketing
Email marketing
Text marketing
Direct mail
Kiosk marketing
Direct selling
Social media marketing brochures

Digital Marketing Strategies

Content Marketing Strategies: It is a great way to engage with customers

and build relationships. It examines the various strategies businesses can
use to create content that resonates with their target audience.

Digital Advertising: It is a great way to reach many potential customers. It

explores the different types of digital advertising, from display ads to
search engine marketing.

14
MARKETING
Email Marketing: Email marketing is still an effective way to reach
customers and build relationships. It examines businesses' various
strategies to create effective email campaigns.

Influencer Marketing: Influencer marketing is a great way to reach a

large, engaged audience. It explores the different types of influencers,
from celebrities to micro-influencers, and the various strategies
businesses can use to work with them.

Mobile Marketing: Mobile marketing is an incredibly powerful tool for

businesses of all sizes. It examines businesses' various strategies to
reach their target audience on mobile devices.

Search Engine Optimization (SEO): An important part of any digital

marketing strategy. It explores the various strategies businesses can use
to optimize their website for search engines.

Video Marketing: It is a great way to engage with customers and build

relationships. It looks at the various strategies businesses can use to
create compelling videos that resonate with their target audience.

Visual Content Marketing: It is a great way to engage with customers and

build relationships. It explores the various strategies businesses can use
to create visual content that resonates with their target audience.

Voice Search Optimization: Voice search is becoming increasingly

popular, and businesses need to optimize their websites for voice search.
It looks at the various strategies businesses can use to optimize their
website for voice search.

15
MARKETING
Trending Marketing Concepts
Guerrilla marketing: It is an unconventional and creative approach to
marketing that relies on low-cost, unconventional strategies to promote a
product or service. Here are some key details about guerrilla marketing:

Low-Cost Tactics: It involves low-cost tactics, making it suitable for

small businesses with limited budgets. The focus is on creativity and
innovation rather than significant financial investments.

Unconventional Methods: It uses unconventional and unexpected

methods to capture the audience's attention. It often involves thinking
outside traditional marketing channels and finding unique ways to
engage with the target market.

Ambush Strategies: It sometimes uses ambush strategies, where the

promotion occurs in unexpected places or during unexpected events.
This element of surprise helps create a memorable impact on the
audience

Viral Potential: Its campaigns often aim to go viral. By creating highly

shareable and buzzworthy content, businesses hope to leverage
word-of-mouth and social media to reach a broader audience.

Street Art and Public Spaces: Using street art, public spaces, and
unconventional locations is common in guerrilla marketing. This
approach helps reach the audience daily, creating a more intimate
connection.

16
MARKETING
Stunts and Events: It may involve organizing stunts or events that
grab people's attention. These events are designed to be memorable
and shareable, contributing to the campaign's success.

Creativity and Innovation: The success of guerrilla marketing hinges

on creativity and innovation. The more original and unexpected the
campaign, the more likely it is to stand out and resonate with the
target audience.

Limited Duration: The campaigns are often short-lived, creating a

sense of urgency and exclusivity. This limited duration contributes to
the campaign's impact and encourages swift engagement.

Emotional Connection: Successful guerrilla marketing aims to create

an emotional connection between the brand and the audience. By
tapping into emotions, campaigns become more memorable and
resonate deeper.

Trending Marketing Concepts

Surrogate marketing: It refers to the practice of promoting one product or
brand to indirectly market another product or brand that may be restricted
or banned from advertising. This strategy is often employed when certain
products or services face legal or regulatory restrictions on promotion.
Here are key details about surrogate marketing:

17
MARKETING
Legal and Regulatory Constraints: Surrogate marketing is commonly
used when legal or regulatory constraints prohibit the direct
promotion of a particular product or brand. This can be due to health
concerns, age restrictions, or cultural norms.

Indirect Promotion: In surrogate marketing, the focus is on indirectly

promoting the restricted product by marketing a different product not
subject to the same restrictions. The goal is to create brand visibility
and awareness for the restricted product without explicitly advertising
it.

Brand Association: The surrogate product is strategically chosen to

create a strong association with the restricted product. This
association transfers positive brand perceptions and sentiments from
the marketed product to the restricted one.

Avoidance of Direct Mentions: Surrogate marketing carefully avoids

direct mentions or promotions of the restricted product. Instead, it
relies on creating a connection in the minds of consumers between
the marketed product and the product that faces promotional
restrictions.

Common Examples: Promoting alcohol brands. In many countries,

there are strict regulations on alcohol advertising. To circumvent
these restrictions, companies may promote merchandise, events, or
other non-alcoholic products associated with the brand.

18
MARKETING
Product Extensions: It often involves promoting product extensions or
related merchandise. This can include clothing lines, accessories, or
events that bear the brand name but aren’t the primary restricted
product.

Ethical Considerations: It can raise ethical concerns, especially if it

involves exploiting loopholes in regulations or intentionally deceiving
consumers. Critics argue that it undermines the spirit of the
regulations and can lead to unintended consequences.

Trending Marketing Concepts

Influencer Marketing: Building a positive and strong brand image is
crucial for creating a seamless connection in consumers’ minds. Brands
collaborate with individuals who have a significant and engaged following
on social media platforms. These influencers promote the brand’s
products or services to their audience, leveraging trust and authenticity.
Key details include:

Authenticity: Influencer marketing relies on influencers' authentic

connection with their followers, making it a more genuine form of
promotion.

Reach and Engagement: Influencers can reach a large and targeted

audience, and their content often generates high levels of
engagement, enhancing brand visibility.

19
MARKETING
Types of Influencers: Influencers can be categorised based on their
follower count: micro (1,000 to 100,000), macro (100,000 to 1 million),
and mega (1 million and above). Different types suit different
campaign goals.

Platforms: Influencer marketing is prevalent on platforms like

Instagram, YouTube, TikTok, and Twitter, with each catering to
specific audience demographics.

Compensation Models: Influencers may be compensated through

various models, including flat fees, affiliate marketing, free products,
or a combination, depending on the collaboration terms.

Niche Expertise: Many influencers specialise in specific niches,

allowing brands to target particular audiences effectively.

Storytelling: Influencers often use storytelling to integrate brands

seamlessly into their content, making it more relatable to their
followers.

Measuring Success: Success metrics include engagement rates,

reach, follower growth, and, ultimately, the impact on sales or brand
awareness.

Regulations: Adherence to advertising regulations, disclosure of

sponsored content, and transparency are crucial aspects of ethical
influencer marketing.

20
MARKETING
Long-Term Relationships: Building long-term relationships with
influencers can lead to sustained brand advocacy and a more
profound impact on audience perception.

Recent Digital Marketing Concepts

Video Marketing: Video content continued to dominate digital platforms.

Short-form videos on platforms like TikTok and Instagram Reels gained
popularity, while long-form content on YouTube remained significant.

Influencer Marketing: Brands increasingly collaborated with influencers

to reach their target audience. Micro-influencers, in particular, were
valued for their niche and engaged followers.

Social Commerce: E-commerce integration with social media platforms

expanded, allowing users to discover and purchase products directly
within social apps. Features like Instagram Shopping and Facebook
Marketplace gained traction.

Voice Search Optimization: With the rise of voice-activated devices like

smart speakers and virtual assistants, optimising content for voice
search has become crucial for digital marketers.

Artificial Intelligence (AI) and Chatbots: AI-powered tools, including

chatbots, were used to enhance customer interactions. They provided
instant support, personalized recommendations, and improved user
experience.

21
MARKETING
Personalization: Tailoring content and marketing messages to individual
preferences became increasingly important. Personalization efforts
included email campaigns, website content, and targeted advertising.

Augmented Reality (AR) and Virtual Reality (VR): Brands explored AR

and VR technologies to create immersive user experiences. This trend
was particularly prominent in industries like retail and entertainment.

Interactive Content: Interactive content, such as quizzes, polls, and

surveys, gained popularity for engaging audiences and fostering two-way
communication.

Privacy Concerns and Data Protection: With increasing awareness of

data privacy, there was a growing emphasis on transparent data
practices and compliance with regulations like GDPR.

User-Generated Content (UGC): Brands encouraged users to create and

share content related to their products or services. UGC helped build trust
and authenticity.

Tools used for marketing analysis

The Ansoff Matrix, BCG Matrix, and SWOT Analysis are strategic
management tools that help organizations assess and plan their
business strategies.

22
MARKETING
Ansoff Matrix

Purpose: Developed by Igor Ansoff, the matrix is designed to help

businesses identify growth opportunities by looking at products and
markets.
Components:

Market Penetration: Focuses on selling existing products to existing

markets. Strategies may involve increasing market share, expanding
customer base, or increasing product usage.
Market Development: Involves introducing existing products to new
markets. This could include entering new geographical locations or
targeting different customer segments.
Product Development: Concentrates on creating and launching new
products for existing markets. The aim is to attract existing
customers with new offerings.
Diversification: Involves introducing new products to new markets.
This is considered the riskiest option but has the potential for high
rewards.

23
MARKETING
BCG Matrix (Boston Consulting Group Matrix)

Purpose: Created by the Boston Consulting Group, this matrix helps

organizations analyze their product portfolio based on market share and
growth rate.
Components:

Stars: High market share and high growth rate. These are products
with high potential that require significant investment.
Cash Cows: High market share but low growth rate. These products
generate more cash than is needed for maintenance, providing funds
for other products.
Question Marks (or Problem Children): Low market share but high
growth rate. These products may become stars or phased out if
growth doesn't occur.
Dogs: Low market share and low growth rate. These products may
not generate much revenue and must be considered for divestment.

24
MARKETING
SWOT Analysis

Purpose: SWOT stands for Strengths, Weaknesses, Opportunities, and

Threats. It is a comprehensive tool used to analyze an organization's
internal strengths and weaknesses, as well as external opportunities and
threats.

Components:
Strengths: Internal factors that give the organization an advantage over
others. This could include a strong brand, skilled workforce, or advanced
technology.
Weaknesses: Internal factors that may place the organization at a
disadvantage. These could be a lack of resources, outdated technology,
or poor management.
Opportunities: External factors that the organization could leverage for
its benefit. Opportunities may include market trends, emerging
technologies, or changing consumer preferences.
Threats: External factors that could pose a risk to the organization.
Threats may come from competition, economic downturns, or regulatory
changes.

25
MARKETING
Consumers vs Customers?

The terms "consumer" and "customer" are often used interchangeably,

but they don't always refer to the same entity. In essence, consumers use
products, while customers are the ones making the purchase. Generally,
your marketing efforts should focus on the customer rather than the
consumer. For instance, consider a small business manufacturing
children's games or toys. Although children are the actual users or
consumers, they are not the customers. In this case, the customers are
the parents who buy the products for their children. Consumers represent
just one subgroup of customers.

Take the example of an oven – if a restaurant purchases it to make bread

for patrons, the restaurant is a customer, not a consumer. On the other
hand, if you buy a stove to make bread for you and your children at home,
you are the consumer in this scenario.

26
MARKETING
Some marketing examples you can talk about in your interview, along with
some talking points to help you shine:-

1. Apple’s "Mother Nature" Campaign (2023)

Overview: Apple showcased its environmental initiatives in a humorous
yet impactful ad featuring Mother Nature (Octavia Spencer). It highlighted
Apple’s carbon-neutral manufacturing processes and sustainability goals.

Talking Points:
Cleverly communicated a serious topic using humor and storytelling.
Positioned Apple as a leader in corporate environmental
responsibility.
Demonstrated how brand values can drive customer loyalty and align
with global concerns.

2. Burger King’s "Whopper Whopper" Song Campaign (2023)

Overview: A catchy jingle-based campaign that went viral, especially on
TikTok, with user-generated content propelling its reach.

Talking Points:
Leveraged short-form video platforms for organic growth.
Engaged Gen Z effectively through humor and relatability.
Proved the power of audio branding in making a product memorable.

3. Barbie Movie Marketing (2023)

Overview: The Barbie movie campaign blended nostalgia with modern
messaging through cross-industry collaborations (e.g., Airbnb’s Barbie
Dreamhouse) and massive social media buzz.

27
MARKETING
Talking Points:
Multi-channel approach created a cultural phenomenon.
Showcased the importance of brand reinvention for modern
audiences.
Highlighted how collaborations can extend a campaign’s reach
beyond its primary industry.

4. Netflix’s "One Piece" Adaptation Campaign (2023)

Overview: Netflix marketed its live-action adaptation of One Piece with
global fan events, interactive installations, and partnerships with anime
influencers.

Talking Points:
Highlighted the importance of engaging with core fans while
attracting new audiences.
Successfully bridged the gap between anime and live-action, boosting
Netflix’s reputation for adaptations.
Showcased the power of blending digital and physical marketing
strategies.

5. Heineken's "The Closer" Campaign (2023)

Overview: Heineken introduced a bottle opener that pauses work apps
like Teams/Slack when used, promoting work-life balance.

Talking Points:
Reinforced Heineken’s branding around social moments and
relaxation.

28
MARKETING
Clever product placement with a clear message resonating with work-
from-home culture.
Innovatively connected product functionality with brand values.

6. L’Oréal’s AI-Powered Campaign with "Brow Magic" (2023)

Overview: Launched a device that allows users to print eyebrows
customized to their face shape using an app. The campaign highlighted
innovation in beauty tech.

Talking Points:
Positioned L’Oréal as a tech-savvy leader in the beauty industry.
Emphasized personalization, a growing trend in consumer
preferences.
Attracted a younger, tech-friendly demographic while retaining
traditional customers.

7. Patagonia’s Earth Day Campaign (2023)

Overview: Patagonia encouraged customers to repair their old clothes
instead of buying new ones, emphasizing sustainability.

Talking Points:
Took bold steps to align with environmental values over profits.
Demonstrated authentic commitment to sustainability, strengthening
brand equity.
Leveraged Earth Day to amplify the message, aligning with a global
movement.

8. Coca-Cola’s "Masterpiece" Campaign (2023)

29
MARKETING
Overview: Coca-Cola created an ad connecting famous artworks (like Van
Gogh’s Starry Night) with a bottle of Coke to demonstrate how art and
Coca-Cola both inspire creativity.

Talking Points:
Positioned the brand as timeless and culturally significant.
Tapped into the emotional appeal of art to elevate its branding.
Exemplified innovative visual storytelling to create brand recall.

9. Tesla’s Cybertruck Meme Campaign (2023)

Overview: Tesla embraced memes about its Cybertruck’s polarizing
design to market the product, turning criticism into buzz.

Talking Points:
Showed how brands can use humor and social listening to reshape
narratives.
Reinforced Tesla’s reputation for innovation and boldness.
Demonstrated effective use of user-generated content for marketing.

10. Google’s Pixel "Magic Eraser" Campaign (2023)

Overview: Highlighted the AI-driven "Magic Eraser" tool in Pixel phones,
demonstrating how users can remove unwanted elements from photos
effortlessly.

Talking Points:
Focused on solving a relatable pain point, making technology
approachable.
Differentiated Google Pixel in a saturated smartphone market through
unique features

30
 CONSULTING
BY CONSULTU
THE CONSULTING CLUB OF IIM UDAIPUR
 CONSULTING
About Consulting
Let's define Consulting according to the Oxford dictionary, which says,
"Engaged in the business of giving expert advice to people working in a
specific field." In other words, a consultant is someone who advises a
specific group of people.
That's it! It's just that simple.

So, who is a consultant?

A consultant has some level of expertise that a group of people find
valuable, and people within that group are willing to pay the consultant to
access their knowledge.

32
CONSULTING
Why is Consulting so valuable?
Suppose the consultant is someone who gives advice. Then, the question
is, why do people need guidance, and why are they willing to pay for it?
People ask for advice because they want to change, attain, or become
something.

That's why people want advice: to reach a certain point, but they don't
know how to do so.They are either facing obstacles or can't overcome
them. The true meaning of consulting is helping people solve problems
and move from their current state to their desired state. The more
valuable that desired state is to someone, the more they are willing to
pay for help in getting there.

Why people hire Consultants?

There are three main reasons people decide to bring in outside advice:
1. They are unable to figure it out or get to their desired state on their
own.
2. They have a general idea, but they want to get there faster.
3. They want to save time and effort by following an efficient and
proven system.

33
CONSULTING
Consulting is more than just giving advice. It involves a hierarchy of
purpose:
1. Providing information to a client.
2. Solving a client's problems.
3. Making a diagnosis, which may necessitate the redefinition of the
problem.
4. Making recommendations based on the diagnosis.
5. Assisting with the implementation of recommended solutions.
6. Building a consensus and commitment around corrective action.
7. Facilitating client learning—teaching clients how to resolve similar
problems in the future.
BROAD CLASSIFICATIONS:
When someone says, "I'm a consultant," they will typically fall into one of
three categories.
1. Management Consulting - Management Consulting is what most
people think of when someone says "consulting." This field is dominated
by large firms like McKinsey, Bain & Company, and Boston Consulting
Group, which are hired to help enterprise businesses improve strategy and
operations or manage significant business events like mergers and
acquisitions.

2. Corporate Consulting - This is more of a catch-all category for those

with a "Consulting" job description in the corporate world. It involves in-
house consulting services, implementation teams, B2B consulting
businesses, and a host of other things.

3. Independent Consulting - When someone has developed expertise in

an area, they choose to build and run their own business around that
expertise.

34
 CONSULTING
Classification based on functionality
1) Management Consulting - Management consultants, also known as
business consultants or organizational advisors in practice, focus on all
sorts of regulatory concerns, from strategy to a variety of elements within
management. Management Consulting is a collective term used for all
services that fall under Strategy Consulting, Operations Consulting, and
HR Consulting. Management Consultancy frameworks are often used to
assess several factors.

a. Strategy Consulting - The term Strategy Consulting is used to describe

consultants who operate at the highest level of the consultancy market,
focusing on strategic topics like corporate and organizational strategy,
economic policy, government policy, and functional strategy. Their focus
lies more on quantitative/analytics skills, and their job description
revolves more around advising and overseeing implementation. Examples
of Strategy Consulting:
(i) Corporate Strategy
(ii) Business Model Transformation
(iii) Mergers and Acquisitions
(iv) Organizational Strategy
(v) Digital Strategy

b. Operations Consulting - Operations consultants are consultants who

help clients improve the performance of their operations. Consultancy
activities in this segment vary from advisory services to hands-on
implementation support for primary functions (e.g., Sales, Marketing,
Production, etc.) and secondary purposes (e.g., Finance, HR, Supply Chain,
ICT, Legal, etc.)

35
 CONSULTING
c. Human Resource Consulting - HR consultants help clients with human
capital challenges within their organizations and improve the HR
department's performance. Chief topics central to HR consultants' job
descriptions are organizational changes, change management, terms of
employment, learning& development, talent management, and retirement.

2) Financial Advisory Consulting – This segment generally works on

questions that address financial capabilities and, in many cases, the
analytical capabilities within an organization. A financial consultant often
works with a company's CFO or the strategic consultant to help the
business align its financial goals (e.g., overhead costs, return on
investments, profit margins, etc.) with strategic goals.

3) IT Consulting - Technology consultants, also known as IT, ICT, or

digital consultants, focus on helping clients with the development and
application of Information Technology (IT) within their organization. IT
consultants focus on transitions (projects) in the ICT landscape, contrary
to regular IT employees, who work on day-to-day IT operations (so-called
'business as usual’ activities).

4) Marketing Consulting – Whether you need a new logo for your

company, a new market position for one of your brands, a new social
media strategy to interact with your customers or planning and
implementing a marketing strategy, a marketing consultant helps in all
marketing aspects of a firm's business.

36
 CONSULTING
5) Compliance and Legal Consulting – These consulting services help
firms adhere to federal and local laws and regulations.

A compliance consultant must have a sound knowledge of local laws and

regulations as it's essential for successful businesses to be compliant
with local and federal laws.

6) Others – This includes consulting groups that are not commonly

practiced and can be classified as "Small Shops"-

a. Real Estate consulting

b. Engineering consulting
c. Design consulting

37
CONSULTING
TOP PLAYERS

ROLES/HIERARCHY AT A CONSULTING FIRM

38
CONSULTING
SKILLS REQUIRED BY A CONSULTANT

How will an MBA help you bag your dream consulting role?

1. An MBA can help you bridge the gap between your professional
experience and consulting opportunities.
2. MBA programs immediately connect you to a priceless network of
people who are invested in your success.
3. The MBA internship program improves your chances of landing your
ideal full-time consulting position. During the internship, you will have
the opportunity to work in your desired role and hone the necessary
skills.
4. Provide you with numerous opportunities to learn, expand your
horizons, and transform.

39
 CONSULTING
Tools and Methodologies for Consulting
What is a Business Framework?
As an independent consultant, clients ultimately hire you to solve a
problem or pain point. Frameworks are useful tools that help you analyze
the issue, structure your thinking, and communicate your
recommendations. Business frameworks can help you articulate goals
with strong business writing and develop a blueprint for success. You can
take a broader conceptual framework and scale it to fit your needs. A
business framework also gives you a starting place and a common
vocabulary that you can edit to fit your client's goals.
In other words, think of frameworks as your problem-solving sidekick—
like a trusty Swiss Army knife for consultants. They're these handy tools
that help you break down the problem, organize your thoughts, and
present solutions in a way that just makes sense.

Business Frameworks for Consultants

Seven business frameworks can be used across disciplines to answer
some of the most common business questions:

1. The 3C: Company, Competitors, and Customers

The 3C consulting framework revolves around Company, Competitor, and
Customer analysis. Company analysis delves into internal strengths and
weaknesses. Competitor evaluation scrutinizes rivals' strategies and
vulnerabilities. Customer analysis focuses on evolving preferences.
These pillars collectively shape strategic recommendations, aligning with
the company's strengths, addressing competitors' weaknesses, and
meeting customer expectations.
(https://online.visual-paradigm.com/knowledge/strategic-analysis/what-is-ohmaes-3c-model/)

40
 CONSULTING
2. Porter’s 5 Forces
Power is a key element in you and your client's success. To sustain
profitability and a competitive position, you want to balance the power in
your favour. Porter's Five Forces is a valuable tool in helping you to
understand both the power of your current competitive position and the
planned position.

(https://yourfreetemplates.com/wp-content/uploads/2019/03/Porter%E2%80%99s-five- forces-e1552181129804.png)

Porter's five forces are:

1. Competition in the industry
2. Potential of new entrants into the industry
3. Bargaining power of suppliers
4. Bargaining power of customers
5. The threat of substitute products

41
 CONSULTING
Key Takeaways
Porter's Five Forces is a framework for analyzing a company's
competitive environment.
The number and power of a company's competitive rivals, potential
new market entrants, suppliers, customers, and substitute products
influence a company's profitability.
Five Forces analysis can be used to guide business strategy to
increase competitive advantage.

3. SWOT Matrix
The SWOT Analysis framework is used to evaluate the Strengths (S),
Weaknesses (W), Opportunities (O), and Threats(T) of a venture or a
project.

SWOT analysis, a pivotal tool in strategic planning, assesses an

organization's internal Strengths and Weaknesses and external
Opportunities and Threats. It scrutinizes positive attributes and challenges
internally, while externally evaluating growth opportunities and potential
risks. This comprehensive evaluation empowers businesses to make
informed decisions, leverage strengths, address weaknesses, seize
opportunities, and mitigate threats for strategic success.

42
 CONSULTING
4. PESTEL Analysis
PESTEL analysis is like a simple checklist covering politics, the economy,
society, technology, the environment, and the law.
It gives a clear picture of what's happening outside the business, helping
to foresee problems, spot chances, and make smart decisions that fit the
current business vibe.

Political Factors: Think about how government policies and stability

might influence the business—like taxes, trade rules, and political
conditions.
Economic factors: Consider the economic climate and trends, such as
inflation, exchange rates, and whether the economy is growing or not.
This helps in anticipating financial challenges and opportunities.
Social factors: Look at society—demographics, cultural trends, and
people's attitudes. This helps understand what customers like, how
they behave, and any shifts in society that could affect the business.
Technological factors: Check out the tech scene. What new gadgets
or innovations could impact the industry? This helps in staying
competitive and adapting to technological changes.
Environmental Factors: Consider eco-friendly practices and
environmental trends. This involves looking at sustainability,
environmental rules, and how green the business operations are.
Legal Factors: Think about laws and regulations that affect the
business. This includes making sure the business complies with rules,
understanding industry-specific regulations, and spotting legal
opportunities or challenges.

43
 CONSULTING

5. BCG Matrix
The BCG Growth-Share Matrix provides a framework for deciding how to
use resources. It is also helpful in assessing each product or business
unit’s ability to generate profit continuously.

44
 CONSULTING
Four categories of BCG matrix
The BCG growth-share matrix breaks down products into four categories:
Question marks – High Growth, Low Market Share (Uncertainty)
Dogs – Low Growth, Low Market Share(Less Profitable)
Stars – High Growth, High Market Share(High Competition)
Cash cows – Low Growth, High Market Share (Most Profitable)
It is simple to implement and easy to understand. Larger companies can
use it to seek volume and experience effects. It predicts the future actions
of a company.
Hence, the company can decide on its proper management strategy. It
helps managers evaluate balance in the firm's current Question Marks,
Dogs, Stars, and Cash Cows portfolio.

6. McKinsey 7S
The McKinsey7S Framework is an excellent tool to help you find and fix
internal organizational problems.

45
 CONSULTING
McKinsey 7S Framework is a strategic planning tool designed to help an
organization understand if it is set up in a way that allows it to achieve its
objectives.
Before the advent of the 7S Model, when managers thought about
organizational design, they tended to focus on structure and strategy. They
thought about who is responsible for what, who reports to whom, how
many layers of management should be there, and how to beat the
competition.
It is used for:
Organizational change
Mergers and acquisitions
Implementation of a new strategy
Understanding the weaknesses (blind spots) of an organization

7. MECE
MECE is a systematic problem-solving framework that helps to solve
complex problems. It can help you eliminate confusion and focus on
critical data that points the way toward success.

46
 CONSULTING
Benefits of using a Business Strategy Framework
A business framework can analyze and guide decisions for your client and
your own business. For example, the 3C Model can help you develop a
competitive strategy for your client or can be applied to develop a social
media marketing plan for your personal brand.

There is no one best framework, and often you may find that you are using
multiple frameworks in your client's work. Frameworks save you time by
providing a starting point for information gathering and analysis, but
remember, your expertise and common sense is the most powerful
framework you have. These tools are time-savers, but your business
insight will ultimately deliver value to your client.

47
 CONSULTING
Guesstimate Questions

1. Estimate the number of hours spent watching YouTube videos

weekly.
2. How many Apple phones are sold daily in India?
3. Estimate the market size for education loans in India.
4. How many cups of coffee are consumed in India per day?
5. How many tons of potatoes are consumed in your hometown every
month?
6. How many tennis balls can you place inside the room we are currently
in?
7. How many tourists arrive in Udaipur each day?
8. Estimate the total revenues from The Matrix movie series if they are
released today.
9. How many people fly in and out of Mumbai Airport every day?
10. Estimate the market size for education loans in India.
11. How many tweets are posted on Twitter every day?
12. How many chapatis are consumed in India in a month?
13. How would you estimate the market size of the organic food industry
in India?
14. How many extra airports are needed in India in the current scenario?
15. How many mobile apps are downloaded per day around the world?
16. How many emails are sent per day across the world?
17. Estimate the number of Ayurveda doctors in India.
18. How many liters of fuel are consumed by passenger cars in Mumbai
per day?
19. How many reels are posted on Instagram daily?
20. How many cars pass through the Atal tunnel every year?

48
 CONSULTING
Guesstimate Problem-Solving Approach
1. Understand the Question: Grasp what the problem is asking and note
any given information.
2. Break It Down: Identify key components and simplify the problem into
smaller parts.
3. Assumptions: Make logical assumptions and state them clearly.
4. Use Benchmarks: Relate the problem to something familiar for easier
estimation.
5. Round Numbers: Simplify calculations by rounding for practicality.
6. Logical Reasoning: Apply common sense and logic to arrive at an
estimate.
7. Verify and Adjust: Check the reasonableness of your estimate and
refine it if needed.
8. Clear Communication: Clearly explain your assumptions and the steps
taken to arrive at the estimate.
9. In guesstimate problems, it's not about getting the exact answer.
Instead, it's about showing how you solve problems in a step-by-step
way and giving a sensible and explainable guess.

49
 CONSULTING
Interview Questions
1. Why do you want to pursue consulting?
2. What makes a good consultant?
3. What, according to you, are essential skills required to be a
consultant?
4. What is the primary cause of concern for consulting firms around the
world?
5. Facts vs instincts. Which is more important?
6. Bottom-up vs top-down approach. Which is better according to you?
7. How should consultants set prices for projects?
8. How do you size a market?
9. Why do companies need consultants?
10. How would you explain a complicated technical issue to a client?
11. How does a consultant segment a market?
12. If you want to start a retail fashion outlet in India, what factors will you
consider?
13. A regular brick-and-mortar store is facing a tough time competing with
big online shops. What would you advise it?
14. Which industry do you see evolving and why?
15. What are some important ethical considerations for consultants?
16. As a consultant, how would you use data analytics to solve a business
challenge?
17. Which business strategy frameworks are your favorites, and why
18. Assume you have five million dollars and a month to start a fresh
business. In what way would you respond to it?
19. Make up a joke about consulting for me.
20. Describe the main issues that the renewable energy sector is currently
facing.

50
 CONSULTING
Typical Business Problems
A tech startup is growing rapidly, but it's having trouble retaining
customers. How would you handle this situation?
Traffic to a client's website has suddenly decreased. How would you
identify and resolve the problem?
My marketing department is burning money. I need to reduce costs
without affecting performance and sales in any way.
An organization that provides financial services wishes to use AI and
machine learning to enhance its offerings. Which potential uses come
to mind?
I want to introduce my product/service in China, Taiwan, and Malaysia.
Build a roadmap and entry/launch strategy.

The following articles/videos may help you:

How Consultants ProjectExpertise and Learn at the Same Time | Coworking
Consulting Consulting Is More Than Giving Advice (hbr.org)
6 Tools Every Business Consultant Should Know (harvard.edu)
Project Management Consulting Skills - How consultants manage projects
and file structures - YouTube What Does A Consultant Do - Successful
Coaching & Consulting Secrets Ep. 4 - YouTube

Other Sources:
https://www.mbopartners.com/blog/how-grow-small-business/top-
business- frameworks/
https://www.bcg.com/en-in/about/our-history/growth-share-matrix
https://fourweekmba.com/3c-model/
https://expertprogrammanagement.com/2018/05/pest-analysis/
https://www.consultancy.in/career/types-of-consultants
https://www.consulting.com/what-is-consulting-definition

51
 OPERATIONS
BY SKEIN
THE OPERATIONS CLUB OF IIM UDAIPUR

52
OPERATIONS
INTRODUCTION
Operations and Supply Chain Management (SCM) form the backbone of
any business, ensuring seamless transformation of inputs into outputs
while optimising efficiency, quality, and cost. This PI Kit equips you with the
knowledge and confidence to excel in interviews by providing insights into
key concepts, terminologies, and challenges in the field.

CORE CONCEPTS
Operations Management: Focuses on designing and controlling production
processes to maximise efficiency, quality, and responsiveness.
Supply Chain Management (SCM): Manages the flow of goods, services,
and information, integrating procurement, production, and distribution to
create value.

KEY TERMINOLOGIES
JIT (Just-In-Time): Reduces inventory by receiving goods only when
needed, minimizing holding costs and waste.

53
 OPERATIONS
Kanban: A visual workflow management system that uses cards to
signal the need for replenishment, ensuring smooth operations.
Lean Manufacturing: A systematic approach to eliminate waste (muda)
and improve overall productivity.
Heijunka: Production levelling to adapt to demand fluctuations and
maintain a balanced workload.
FIFO (First-In-First-Out) & LIFO (Last-In-First-Out): Inventory
management techniques used to determine the order in which stock is
utilized, based on either chronological order (FIFO) or the most recently
acquired stock (LIFO).
Six Sigma: A methodology focused on improving process quality by
identifying and removing causes of defects, utilizing tools like DMAIC
(Define, Measure, Analyze, Improve, Control).
Bullwhip Effect: Amplification of demand variability in a supply chain,
often caused by distorted communication.

OPERATIONS MANAGEMENT INSIGHTS

Capacity Management: Defines the maximum output a system can
produce. Categories include Design Capacity, Effective Capacity, and Actual
Capacity.

TQM Principles:
Customer focus
Process-centric approach
Continual improvement via the PDCA cycle (Plan-Do-Check-Act)

Theory of Constraints (TOC): Identifies bottlenecks in processes and

implements steps to optimize throughput and efficiency.

54
 OPERATIONS

Procurement & Value Chain Analysis:

Procurement Planning: Ensures timely and cost-effective acquisition of
resources.
Value Chain Analysis: Optimizes primary (inbound logistics,
operations, outbound logistics) and support (HR, tech, infrastructure)
activities to maximize customer value.

Demand Forecasting & Inventory Management

Demand Forecasting: Uses historical and market data to predict future
demand. Techniques include Time-Series Analysis, Regression, and
Econometrics.

Inventory Management Techniques:

EOQ (Economic Order Quantity): Balances ordering and holding costs to
minimize total inventory costs.
ABC Analysis: Classifies inventory into three categories: A: High-value
items, tightly controlled, B: Moderate-value items, with less control, C:
Low-value items, controlled more loosely.

55
 OPERATIONS
Safety Stock: Provides a buffer against demand and supply variability to
avoid stockouts.
VED Analysis: Categorizes inventory based on criticality: Vital, Essential,
Desirable
Reorder Point (ROP): The inventory level at which a new order should be
placed to replenish stock.
Consignment Stocking: Inventory owned by the supplier but stored at
the customer’s location for quick access.

LATEST TRENDS IN SCM

Digital Transformation: AI and Blockchain for enhanced transparency

and efficiency.
Sustainability: Circular supply chains to minimize waste.
Resilience Strategies: Adapting to disruptions like geopolitical tensions
and pandemics.

56
 OPERATIONS
INTERVIEW PREPARATION:

Common Questions:
What inspired your interest in Operations Management?
How would you improve a company's operational efficiency?
How do you ensure cost-efficiency in a supply chain while maintaining
quality standards?
Describe a time when you optimized a process. What was the impact?
Explain the difference between push and pull strategies in inventory
management.

Case-Based Questions:
How would you manage supply chain disruptions due to unforeseen
events?
Plan the launch strategy for a perishable product, considering logistics
challenges.
Design a supply chain for a new product launch in a remote region.
Evaluate the feasibility of outsourcing a critical operation for cost
savings.

57
 ANALYTICS
BY TECHNALYTICS
THE ANALYTICS AND IT CLUB OF IIM UDAIPUR
 ANALYTICS
IMPORTANT TOPICS

Digitization of the Economy

Digitization refers to using digital tools and technologies like the internet,
mobile apps, and computers to improve how businesses operate. This
process affects the production, distribution, and consumption of goods
and services. It allows businesses to connect with customers globally,
automate processes, and reduce operational costs. For example, platforms
like Amazon and Flipkart enable small businesses to sell products globally
without needing physical stores.

Example:
During the pandemic, food delivery apps like Swiggy and Zomato expanded
their services to include grocery delivery, showing how digital tools helped
businesses adapt quickly.

Applications:
Global Market Access: Digitization allows even small businesses to
access international customers.
Automation: In industries like manufacturing, robots and AI-driven
machines have replaced manual labour, reducing errors and costs.
E-commerce Growth: Companies like Myntra have digitized traditional
retail, making shopping more convenient.

Challenges: Concerns include data privacy, the digital divide (access

inequality), and job losses due to automation.

59
 ANALYTICS
Why Are Tech Companies Becoming Unicorns?
Unicorns are privately held startups valued at over $1 billion. Their high
valuation is based on future growth potential, innovative ideas, and how
they disrupt traditional markets. These companies often prioritize
customer acquisition and market impact over immediate profitability. For
instance, companies like BYJU'S focused on acquiring millions of users
before aiming for profits.

Example:
Zomato became a unicorn by capitalizing on India's growing food delivery
market. By offering discounts, wide restaurant options, and reliable service,
they built a massive customer base.

Applications:
Fintech Revolution: Paytm and PhonePe have disrupted traditional
banking systems by offering seamless digital payments.
E-commerce Boom: Companies like Flipkart leveraged India’s growing
internet penetration to dominate online shopping.

Why High Valuations?

Tech companies receive funding due to their potential to dominate markets
and scale quickly. Investors are willing to bet on future profitability.

60
 ANALYTICS
Digital Transformation: Choice or Mandate?
Digital transformation is no longer optional for businesses; it’s a necessity
to survive and grow. It involves adopting digital tools to enhance customer
experience, optimize operations, and stay competitive. The pandemic
accelerated this trend as businesses had to adapt to remote work and
online services.

Example:
Indian banks like ICICI Bank introduced AI-powered chatbots to handle
customer queries, making services faster and more efficient.

Applications:
Logistics: Companies like FedEx use digital tracking to optimize
delivery routes.
Healthcare: Hospitals use digital records to provide faster and more
accurate treatments.

Why Mandatory?
Post-pandemic, consumer behavior has shifted toward online services,
forcing businesses to innovate digitally or lose market share.

61
 ANALYTICS
Artificial Intelligence, Machine Learning, and Deep Learning

AI (Artificial Intelligence): The broad field focused on making

machines mimic human intelligence, such as problem-solving and
decision-making.
ML (Machine Learning): A subset of AI where machines are trained to
learn from data and make predictions or decisions without explicit
programming.
Deep Learning: An advanced subset of ML that uses neural networks
inspired by the human brain to process large datasets, such as for
image or speech recognition.

Example: AI is used in Google Maps to predict traffic. Machine learning

helps e-commerce platforms recommend products. Deep learning enables
Tesla’s self-driving cars to recognize road signs and obstacles.

Applications:
Healthcare: AI predicts patient illnesses based on symptoms.
Retail: ML suggests products based on purchase history.
Finance: Deep learning models detect fraud in banking transactions.

62
 ANALYTICS
Big Data Analytics
Big Data refers to massive datasets that are too complex for traditional
tools to process. Analytics tools extract insights to help businesses make
better decisions. Companies use historical and real-time data to identify
trends, predict outcomes, and improve performance.

Example:
Netflix uses Big Data to analyze viewers preferences and recommend
shows or movies, keeping users engaged.

Applications:
Fraud Detection: Banks analyze transactions to identify unusual
activities.
Healthcare: Hospitals predict disease outbreaks using patient data.
Gaming: Developers track player behavior to improve game design and
engagement.

Blockchain
Blockchain is a digital ledger where data is stored in blocks linked together
securely. This decentralized technology ensures that no single entity can
tamper with the data. It’s widely used for secure transactions, such as in
cryptocurrency.

Example:
Bitcoin uses blockchain to securely record and verify transactions without
needing a bank.

63
 ANALYTICS
Applications:
Supply Chain: Tracks goods from manufacturers to consumers,
ensuring transparency.
Voting Systems: Enables tamper-proof elections by securely recording
votes.

Cloud Computing
Cloud computing allows users to store and access data or applications
over the internet instead of on local devices. It reduces costs, improves
flexibility, and allows businesses to scale operations as needed.

Example: Google Drive stores documents, enabling users to access them

from any device.

Applications:
Education: Universities store course materials in the cloud for easy
student access.
E-commerce: Amazon uses cloud services to process millions of
customer transactions daily.

Predictive Analytics
Predictive analytics uses historical data and statistical models to forecast
future trends or behaviors. This helps businesses prepare for upcoming
challenges or opportunities.

Example:
Retailers predict demand for seasonal products like winter clothing based
on past sales trends.

64
 ANALYTICS
Applications:
E-commerce: Amazon predicts which products will sell more during
festivals.
Healthcare: Hospitals forecast the spread of diseases based on
historical data.

Data Centers
Data centers are physical facilities that store and manage large amounts of
data. They house critical components like servers, storage systems, and
networks. Modern data centers support cloud computing and are
increasingly located in cooler regions for energy efficiency.

Example: Facebook's data centers store millions of user photos and videos
securely.

Applications:
Streaming Services: Netflix uses data centers to deliver uninterrupted
streaming.
Banking: Banks store customer data securely in data centers.

65
 ANALYTICS
What is SDLC?
SDLC is a process used to design, develop, and test high-quality software.
The key phases are:
Requirement Analysis: Gather and analyze project requirements.
Planning: Define scope, resources, budget, and timelines.
Design: Create high-level and detailed architecture of the system.
Implementation/Development: Write and integrate the code.
Testing: Identify and fix defects in the software.
Deployment: Release the software to production.
Maintenance: Handle updates, fixes, and support.

SDLC models
Waterfall Model: Sequential; each phase depends on the completion of
the previous one.
V-Model: Validation and verification are carried out simultaneously.
Iterative Model: Repeated cycles of development and refinement.
Agile Model: Incremental and iterative, emphasizing flexibility and
customer collaboration.
Spiral Model: Combines iterative development with risk management.

Advantages and Disadvantages of the Waterfall model

Advantages: Easy to understand, clear deliverables, suitable for
projects with well-defined requirements.
Disadvantages: Inflexible to changes, late detection of issues, not ideal
for dynamic requirements.

66
 ANALYTICS
Agile methodology
Agile is an iterative and incremental approach to software development
that focuses on collaboration, customer feedback, and small, rapid
releases. It is guided by the principles of the Agile Manifesto.

Main roles in Scrum

Product Owner: Defines the vision, manages the product backlog, and
ensures the team delivers value to the business.
Scrum Master: Facilitates Scrum processes, removes impediments,
and ensures adherence to Scrum principles.
Development Team: Cross-functional members responsible for
delivering the product increment.

Key Scrum ceremonies

Sprint Planning: Plan the tasks for the upcoming sprint.
Daily Scrum: Short daily meeting to discuss progress, roadblocks, and
plans for the day.
Sprint Review: Showcase the work done during the sprint to
stakeholders.
Sprint Retrospective: Reflect on the sprint process to identify
improvements.

Difference between a product backlog and a sprint backlog?

Product Backlog: A prioritized list of features, enhancements, and fixes
for the product, maintained by the Product Owner.
Sprint Backlog: A subset of items from the product backlog selected
for a specific sprint, along with a plan to deliver them.

67
 ANALYTICS
Metrics are used in Agile
Velocity: Measures the amount of work completed in a sprint.
Burndown Chart: Tracks the remaining work in a sprint.
Cycle Time: Time taken to complete a task from start to finish.
Cumulative Flow Diagram: Visualizes workflow stability.

Generative AI
Generative AI is a type of artificial intelligence that focuses on creating new
content, such as text, images, or music. It works by learning patterns from
existing data and using that knowledge to generate novel outputs.

Examples include Generative Adversarial Networks (GANs) and

transformer-based models like GPT.

Application
Content Creation: Automating the generation of text, images, and
videos.
Customer Service: Enhancing chatbot capabilities.
Data Augmentation: Generating synthetic data for model training.
Design Prototyping: Assisting in creative industries like fashion and
architecture.

Ethical concerns related to Generative AI

Bias: Replicating biases present in training data.
Misinformation: Generating fake news or deepfakes.
Job Displacement: Automating creative and repetitive tasks.

68
 ANALYTICS
Recent developments in Technology and IT

Advancements in Artificial Intelligence (AI) and Productivity:

Recent data indicates that U.S. worker productivity has been on the rise,
with a consistent growth rate of 2% over the past five quarters. This
improvement is largely attributed to companies adopting new technologies,
including AI, to streamline operations and enhance efficiency. AI enables
businesses to automate tasks, reduce the need for additional staff, and
improve overall productivity. However, there are concerns about the
potential for job displacement due to technological advancements.

Business Leaders' Concerns: AI, Cybersecurity, and Inflation:

A recent survey of Australian business leaders highlights that digital
transformation, particularly AI, cybersecurity risks, and high inflation, are
top concerns for 2025. 53% of surveyed businesses identified digital
transformation as their primary challenge, emphasizing the need to adapt
to AI advancements. Additionally, 42% stressed the urgency of addressing
cyber risks, while 39% focused on cost control amid inflation. The
integration of AI presents opportunities for productivity gains but also
brings uncertainties regarding its impact on the workforce.

69
 ANALYTICS
Economic Outlook and Technological Investments:
The UK anticipates modest economic growth in the coming years, with
stability serving as a foundation for expansion. Business investment
recovery may be sluggish due to recent budget decisions, but the UK
maintains strong long-term fundamentals. Significant infrastructure
investments in renewable energy and grid expansion are deemed crucial
for success in various sectors, including AI and data centers. Additionally,
the adoption of hybrid working models is becoming the norm, balancing
flexibility and productivity.

Tech Stocks Driving Market Recovery:

Tech companies have recently led gains in U.S. stock markets, contributing
to a recovery from a holiday-season slide. Notably, Nvidia's stock rose by
3.4% ahead of a speech by its CEO, and Microsoft's stock increased by
1.1% following announcements of significant AI investments. These
developments underscore the pivotal role of technology firms in market
dynamics and their influence on economic trends.

Emerging Business Trends and Risks in 2025:

In 2025, several critical business trends and risks are expected to shape
various sectors. The technology sector will witness the rise of "sovereign
AI," with countries aiming to control AI development for economic and
national security purposes, potentially leading to significant investments
and advancements. However, there is a risk of a tech bust due to inflated
valuations and uncertain profitability. Additionally, the automotive industry
faces challenges with electric vehicle sales and supply chain disruptions,
while the luxury market focuses on China's economic recovery.

70
 ANALYTICS
Interview Questions:

General Technology
How can AI be used to improve customer experiences in industries like
retail or hospitality?
Discuss an example where blockchain can transform a traditional
business process, such as supply chain management.
How do organizations leverage cloud computing to reduce costs and
scale their operations?
What are some challenges businesses face in implementing digital
transformation, and how can they overcome them?
How can IoT (Internet of Things) applications drive operational
efficiency in industries like manufacturing or logistics?

IT and Business Integration

How does ERP (Enterprise Resource Planning) software enhance
operational efficiency for large organizations?
What is the role of IT in enabling omni-channel strategies for
businesses? Provide an example.
How can cybersecurity be integrated into a business strategy to
protect customer trust and company data?
Discuss the advantages and limitations of hybrid cloud systems in
modern organizations.
Explain how automation tools like RPA (Robotic Process Automation)
streamline repetitive processes in businesses.

71
 ANALYTICS
Case-Based Questions
A company wants to launch a new mobile app for customer
engagement. How would you design its IT infrastructure?
A retail chain is facing stockout issues due to poor demand
forecasting. How would you address this using analytics?
An online platform experiences frequent cyberattacks. Suggest
strategies to improve its security posture.
A logistics company wants to adopt IoT solutions for fleet
management. What factors should they consider?
A healthcare provider wants to implement AI for faster diagnosis. How
would you approach its deployment?

72
 FINANCE
BY FINOMINA
THE FINANCE CLUB OF IIM UDAIPUR
FINANCE
Some Important Concepts

What is Finance?

Finance is a broad term describing the study and system of money,

investments, and other financial instruments. Bonds, Stocks, Derivatives,
Mutual Funds are some examples of financial instruments.

Finance is classified into -

Public Finance - This includes tax systems, government

expenditures, and budget procedures. The government oversees the
allocation of resources, distribution of income, and stabilization of
the economy.

Corporate Finance - To put it simply, corporate Finance involves

managing the assets and debts of a business. Calculating whether a
project would give considerable returns on a given investment comes
under Corporate Finance.

Personal Finance - It is the proper management of an individual's

income and expenses. Retirement planning is one example of this.

Behavioral Finance - It seeks to understand the emotional, social, and

psychological reasons behind financial decisions. An example would
be - Studying the reaction of investors to a lawsuit brought against a
company.

74
FINANCE
What is Accounting?

Accounting could be understood as recording, classifying, summarizing,

and reporting of the business transactions and economic activity from
business operations over a period of time to the stakeholders such as
shareholders, employees, the general public, or the regulators.
Remember this equation:
Assets = Liabilities + Equity
Example: You take a loan of 1 crore; 1 crore gets added to the assets
side as cash, which you received from the lender(s). And one crore gets
added to the liabilities side as a loan you took from the bank. The same
goes for all transactions. The equation is always balanced.
Check the company's annual reports to get an idea about the Balance
Sheet, Income Statement, and Statement of Cash Flows. We just
discussed how transactions get recorded in the balance sheet. The
income statement is simply a statement of income and expenses. Cash
flow statements describe where the cash is coming from and where it is
going.

Domains of Finance Banking:

The banking industry handles money, credit, and other monetary
exchanges and offers investment accounts, authentications of stores,
and financial records. Banks utilize these stores to make credits. These
advances incorporate home loans, business credits, and vehicle
advances. Business banks offer types of assistance to private people
and organizations. Retail banking gives credit, store, and cash to
executives, people, and families.

75
FINANCE
Web banking offers these types of assistance through the internet. The
area is additionally called E-banking, internet banking, and net banking.
Most banks presently offer online administrations. Since they have no
branches, they can pass cost reserve funds onto the buyer.

Venture banking discovers financing for companies by starting public

stock contributions or bonds. They additionally encourage
consolidations and acquisitions. The biggest U.S. speculation banks
incorporate Bank of America, Citigroup and Goldman Sachs.

Insurance:
The insurance sector comprises companies that offer risk management
in terms of insurance contracts. The insurer will guarantee payment for a
particular future event, and in return, they will charge a premium from the
insured or the policyholder.

Life insurance is a sector with tremendous growth potential – that is

how the life insurance sector is referred to as, due to the low insurance
penetration and density in the country among its comparable peers,
which is visible with premium growth at a CAGR of 18% since last year
for FY ended 2023 in India.

Portfolio Management:
Portfolio management is the process of managing an individual's
investments to maximize their earnings in a specific time interval.
Furthermore, efficient portfolio management ensures that the risk of the
capital invested is reduced to counter financial or economic risks.
Portfolio managers optimize the investment risk, provide an investment
mix, and diversify the portfolio to achieve financial goals.

76
FINANCE
Principally, portfolio management can be visualized as a SWOT analysis
of various industries and sectors and classifying them according to the
risks associated with them.

Objectives of portfolio management are as follows:

Capital appreciation
To maximize Returns on Investment (ROI)
Risk optimization

Career Opportunities:
Investment Banks - Investment Bankers, Security Salespeople,
traders.
Commercial Banks - Loan officer, Branch Manager, Investment
Bankers, traders.
Money Management Firms - Portfolio Manager, Security Analyst.
Hedge Funds - Portfolio Manager, Security Analyst.
Private Equity Firms - Investment Bankers.
Real Estate Firms - Financing Specialist, Analyst, Deal Manager.

Types of business
There are four types of business organizations: Sole Proprietorship,
Partnership, Company, and Limited Liability Company (LLC).

Sole Proprietorship - A business owned and run by one person for

their benefit. The business's existence is entirely dependent on the
owner's decisions.
Limited Liability Company - Similar to a limited partnership, an LLC
provides owners with limited liability while giving some of the
income advantages of a partnership.

77
FINANCE
Partnership - Refers to a business owned by a minimum of 2 and a
maximum of 50 people. They are of two types - General partnership
(do not require a formal agreement, but all partners' liability is
unlimited) and Limited partnerships (require formal agreement, and
partners' debt can be limited).
Company - It's a separate legal entity from its owners. A private
limited company has a minimum of 2 and a maximum of 200
shareholders. In comparison, a public limited company can have as
many shareholders as possible.

A financial market is where people trade financial securities,

commodities, etc. The stock market, bond market, forex market,
derivatives market are a few examples of the financial market.

Money Market deals with the trading of debt instruments like inter-
corporate deposits, certificate of deposits, treasury bonds, commercial
papers, commercial bills, etc. Trading occurs in a very short time in the
money market. Money market participants are large institutional
investors, mutual funds, and commercial banks.

The Capital Market deals with trading financial instruments like equity,
public sector bonds, and mutual funds units. Capital markets are
composed of the suppliers and users of funds. Capital markets are
mainly composed of primary and secondary markets. The stock market
and Bond market are the most common capital markets.

78
FINANCE
Forex, also known as F.X. or Foreign exchange market, is an over-the-
counter global market place. The foreign exchange market determines
the currency's exchange around the world. Forex is the largest financial
market in the world, which works 24 hours a day. The trade of currency
always takes place in pairs. Hence, one currency's value will be relative
to the value of another currency in the pair. The most liquid trading pair
is EUR/USD.

Financial Statements: Financial statements are formal records of the

financial activities and position of a business, person, or other entity.
Income Statement, Balance Sheet and Cashflow Statement are the three
primary financial statements.

It also provides information about the enterprise's operations, including

sales and the various expenses incurred in the stated period.

The Balance Sheet shows the position of the business at a particular

point in time. It shows the company's assets, liabilities, and equity. In a
balance sheet, Assets = Liabilities + Owner's Equity.

Cash Flow Statement measures how well a company generates cash to

pay its debt obligations, fund its operating expenses, and fund
investments. It helps stakeholders understand how the company's
operations are running, where it is getting cash, and spending money.
The cash flow statement has three sections that report cash flow for
three different kinds of activities - Operating Activities, Investing
Activities, and Financing Activities.

79
FINANCE
Scope of Finance Function: Investment, Financing, and Dividend
Decisions

1.Investment Decision: Investment decisions are often referred to as

Capital Budgeting or Capital Expenditure (CAPEX) decisions. These
decisions create revenue and profits for the firms.

2.Financing Decisions: These decisions have got to do with the source

of funds. A corporation can raise money from lenders or shareholders.
Overall, the financing choices available to large corporations are endless,
and the decisions related to these are financing decisions.

3.Dividend Decisions: The profits after tax can be distributed to the

shareholders or retained by the firm. These decisions related to the
appropriation of profits after tax are dividend decisions.

IFRS vs. GAAP

GAAP (Generally Accepted Accounting Principles) is a common set of

accepted accounting principles, standards, and procedures that
companies and their accountants must follow when compiling their
financial statements.
IFRS (International Financial Reporting Standards) is a set of
international accounting standards, which state how particular types of
transactions and other events should be reported in financial
statements. IFRS guidelines are less comprehensive and lack details
compared to GAAP.

80
FINANCE

The International Accounting Standards Board is the independent

accounting standard-setting body of the IFRS Foundation outside the
United States.

The Financial Accounting Standards Board is a private, non-profit

organization standard-setting body formed to establish and improve
GAAP in the United States.

81
FINANCE

82
FINANCE
Ratio Analysis
To better understand the performance of a company overall specific
time period, the users of financial statements interpret the data
presented in the balance sheet, statement of profit and loss and
statement cash flows by performing ratio analysis.

Ratio analysis helps the reader to determine, interpret and present the
numerical relationship between the related items in the financial
statements of a company and consequently helps in performing
comparative analysis.

The below categories are not mutually exclusive -some ratios are helpful
in measuring multiple aspects of business. For example, an activity ratio
measuring how quickly a firm is able to collect its receivables may also
be used to assess the liquidity of the firm.

1. Liquidity ratios: These ratios are used to measure the capability of a

company to pay its current liabilities. The inability of a company to meet
its short-term obligations may adversely impact its credit rating and
prospects of borrowing additional funds from the market. The
interpretation of the short-term financial health of companies using
liquidity ratios varies across industries, and thus, does not have any
standard interpretation.
i. Current ratio: This measure helps assess the company’s ability to meet
its current liabilities. It is calculated using the following formula:

83
FINANCE

The ideal ratio is 2:1. However, banks consider 1.33:1 to be appropriate. A

low ratio indicates problems in meeting short term liabilities, but
extremely high ratio indicates over investment in current assets which are
essentially nonproductive assets.

ii. Quick Ratio: Also known as the liquidity or acid test ratio, quick ratio is
more conservative than the current ratio as it only takes into
consideration the highly liquid current assets, and thus provides a better
measure to assess the short-term liquidity position of a company.

The ideal ratio is 1:1, as it tests the firm’s ability to repay its current
liabilities in short period of time, say 2-3 months. Inventory is an asset
which might be difficult to be monetized in 2-3 months, hence, not
included in the calculation.

iii. Cash ratio: It is also referred to as absolute liquidity ratio and is used to
measure the liquidity position of the company in a state of crisis. It is the
most conservative measure of assessing the liquidity position. Unlike
current and quick ratio, it measures a company’s ability to pay off its
current liabilities with highly marketable short-term securities and cash
and bank balances.

84
FINANCE
2. Solvency ratios: These ratios are used to measure the capability of a
company’s cash flow to sustain the long-term financial health of the
company by meeting its long-term debt obligations. They are also
referred to as leverage and long-term debt ratios. These highlight the
relative amount of debt in a company’s capital structure. Also, it
specifies the adequacy of earnings and cash flow to cover interest
expense and principal repayments.

i. Debt Equity Ratio: It is calculated to assess a company’s leverage by

dividing the company’s total debt to total shareholder equity. It helps in
measuring the degree to which a company is financing its operations
through debt versus its equity.

where,

Shareholder’s Equity = Equity Share Capital + Preference Share

Capital + Reserves & Surplus
Total Debt = Long-Term Debt + Short-Term Debt

A high debt to equity ratio here means high risk for creditors; a low ratio,
on the other hand, indicates a wider margin of safety (i.e. creditors feel
the owner’s funds can help absorb possible losses of income and
capital). Debt-equity ratio is the indicator of a firm’s financial leverage.
Higher debt accentuates the problem during the periods of falling profits
as interest is a fixed expense.

85
FINANCE
ii. Financial leverage ratio: The financial leverage ratio (also called the
‘leverage ratio’ or ‘equity multiplier’) measures the amount of total assets
supported by one money unit of equity. For example, when financial
leverage ratio = 4, it means that each Re. 1 of equity supports Rs. 4 of
total assets.

A lower ratio makes the form safer from debt stress and indicates better
safety for lenders. However, as debt funds are cheaper source funds, low
debt during good business period indicates extreme risk averseness by
the company. Low-cost debt funds can be used to generate higher
returns for investors.

iii. Debt to Total Assets ratio: It is used to measure the amount of assets
that are financed through debt rather than equity.

This ratio allows investors to know the overall risk of a company, that is,
whether it has enough funds to meet its long-term debt obligations, and
the creditors to know the amount of debt the company already has and
whether the company has the ability to take on additional debt. A higher
total debt to total assets ratio indicates a higher leverage and thus
higher risk for stakeholders.

iv. Interest coverage ratio: Helps determine a company’s ability to pay

the interest obligations on its outstanding debt using its EBIT. It
measures the number of times a company’s EBIT could cover its interest

86
FINANCE
payments.

A higher ratio indicates that the company has sufficient earnings to

service its interest obligations, whereas a lower ratio indicates that the
company is not generating enough earnings to meet its interest
expenses.

v. Debt Service coverage ratio: Helps determine a company’s ability to

pay the current debt obligations through firm's available cash flow.

where,

Total Debt Service = Scheduled principal repayments along with

interest

3. Profitability ratios: Profitability ratios measure the profitability or the

operational efficiency of an entity. These ratios reflect the results of
business operations. They are some of the most closely watched and
widely quoted ratios. Management attempts to maximize these ratios to
maximize firm value.

i. Net profit margin: This measures the percentage of profit generated by

a company from its net sales. It helps in understanding how much of the
total revenue gets converted to profit. It is calculated using the following
formula:

87
FINANCE
The net profit margin is the overall profitability criteria and higher the
ratio, the better it is. The quality of the result depends upon the
extraordinary gains/ losses impacting the PAT.

ii. Operating Profit margin: Operating margin indicates the percentage of

money that is left after factoring for cost of goods sold and operating
expenses. In other words, operating margin is the percentage of
operating profit as a part of net sales.

where,
Operating Profit = Sales − Cost of Goods Sold − Operating Expenses
A high operating margin indicates that the company is earning more per
rupee of revenue and is considered suitable by investors.

iii. Cash Profit margin: This margin helps measure profits earned in
cash. The higher the ratio the higher it is. It Would negate both non-
operating and non-cash items to give a cash margin generation capacity
of the business.

iv. Return on Equity (RoE): The ratio helps measure the return seared on
its equity share capital by a company. It is used to assess how the
shareholder’s funds are being used to generate profit by the company.

88
FINANCE
where,
Net Income =Net Profit After Taxes − Preference Dividend (if any)
Shareholder’s Fund = Equity Share Capital + Reserves and Surplus

A company’s ROE should be compared with the average ROE of the

sector and its competitors as there is no standard suitability of an ideal
ratio since every industry will have a different ROE. A ROE more than the
sectoral average and more than that of competitors is preferred by
investors as it implies that the company’s management is more efficient.

v. Return on Capital Employed (RoCE): This ratio measures how

efficiently a company is utilizing its total capital to generate profits.
Unlike ROE, which only measures profitability to the common equity,
return on capital employed (ROCE) takes into consideration debt and
other liabilities of the company that provide a better view on the
profitability.

where,
Capital Employed= Total Assets − Current Liabilities

vi. Return on Assets (RoA): It measures the efficiently with which a

company is able to manage its assets.

It is an indicator of appropriateness of profits with respect to assets

employed in business. A lower ratio indicates improper utilization of
assets to generate profits.

89
FINANCE
4. Activity/ Turnover Ratios: These ratios are used to measure how
efficiently a company is using its working capital components to convert
them into revenue. These ratios are expressed in terms of times or rate.

i. Working Capital Turnover ratio: It measures how efficiently a company

is using its working capital to support a given level of sales. It is
calculated using the following formula:

Working capital turnover ratio is further divided into inventory turnover

ratio, debtor’s turnover ratio and creditors’ turnover ratio.

ii. Inventory Turnover ratio: This ratio establishes the relationship

between the cost of goods sold during the year and average inventory
held during the year. It measures the efficiency with which a firm utilizes
or manages its inventory.

This ratio indicates how fast inventory is used or sold. A high ratio is
good from the viewpoint of liquidity, and vice versa.

iii. Debtors (Receivables) Turnover ratio: The debtor’s turnover ratio

provides information on the collection and credit policies of the
company. It measures the efficiency with which management is
managing its accounts receivables.

90
FINANCE

A higher debtor’s turnover ratio reflects lower credit terms and faster
cash collection. A lower ratio indicates that the company has liberal
credit terms with its debtor.

iv. Creditors Turnover ratio: It shows the speed at which the firm pays
off its payables. It is calculated as follows:

A low creditor’s turnover ratio reflects liberal credit terms granted by

suppliers to the company, while a high ratio shows that accounts are
settled rapidly.

v. Total Asset Turnover ratio: The total asset turnover ratio measures
the company’s ability to generate revenues with a given level of asset
base. A ratio of 1.30 would indicate that the company is generating 1.30
units of revenue for every 1 unit of asset.

A higher ratio indicates greater efficiency. It is therefore helpful to

analyze working capital and fixed asset turnover ratios separately. A low
asset turnover ratio can be an indicator of inefficiency or of relative
capital intensity of the business.

91
FINANCE
The ratio also reflects strategic decisions by the management, for
example, the decision whether to use a more labor-intensive (and less
capital-intensive) approach to its business or a more capital-intensive
(and less labor-intensive) approach.

vi. Cash conversion cycle: Also referred to as the net operating cycle, it
is used to calculate the amount of time it takes for a company to from
spending cash in production of goods to collecting cash back from sale
of goods. Simply put, it estimates the time taken by the company to pay
its debtors, sell its inventory and collect money from sales. It is
calculated as follows:
𝑪𝒂𝒔𝒉 𝑪𝒐𝒏𝒗𝒆𝒓𝒔𝒊𝒐𝒏 𝑪𝒚𝒄𝒍𝒆 = 𝑫𝒆𝒃𝒕𝒐𝒓 𝑫𝒂𝒚𝒔 + 𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚 𝑫𝒂𝒚𝒔 − 𝑪𝒓𝒆𝒅𝒊𝒕𝒐𝒓 𝑫𝒂𝒚

where,

Debtor days is number of days it takes a firm to collect cash from its
debtors. Creditor days is number of days it takes for a firm on average to
payback its creditors. Inventory days is the number of days it takes a
firm to convert its inventory into sales.

5. Investment Valuation Ratios: These category of ratios helps assess

whether a business is worth investing in it or not. Hence, extremely
important from analysts and investors point.

92
FINANCE
i. Price to earnings ratio: The price to earnings ratio (P/E) is the best
known of the investment valuation indicators. It is used to measure the
amount that investors are willing to pay for each rupee of company’s
earnings. It is calculated as follows:

A high P/E ratio indicates positive investor sentiments, that is, investors
expect higher future earnings growth. A lower P/E ratio indicates that the
company is either undervalued by the stock market or is witnessing
lower earnings on account of either reduced sales or higher debt
obligations, and thus, investors are ready to pay a lower price for the
same.

ii. Book value per share: It indicates the value each share will receive if
the company is liquidated at the balance sheet value i.e., when all assets
are sold at present book value, outside liabilities are paid off at balance
sheet value and the balances distributed to the shareholders. A high
book value indicates intrinsic strength of the share.

iii. Price to Book Value Ratio: This ratio measures the number of times
the market price of share is in comparison to the book value of the
share. Higher figure indicates that market is giving more weight to

93
FINANCE
share. Higher figure indicates that market is giving more weight to
intangibles of the business which are not appearing in the books thus
making the share riskier or may also mean that the market expects high
future growth. Value investors look for companies which have low price
to book ratio indicating that price is closer to the intrinsic value of share.

iii. Enterprise Value to EBITDA ratio: The EV/EBITDA ratio is a commonly

used metric for estimating the business valuations. It compares the
value of a company, inclusive of debt and other liabilities, to the actual
cash earnings exclusive of the non-cash expenses. It is analogous to P/E
ratio explained earlier and isa more stable measure than P/E for capital
intensive industries.

where,
EV = Market cap + Debt + Minority interest + Preferred shares - Cash
Balance

Business cycle
A business cycle refers to the cycle of fluctuations in the Gross
Domestic Product (GDP). It explains the expansion and contraction in
the economy.

Various stages of the Business Cycle are:

1.Expansion: Expansion is the first stage in the business cycle. This
stage depicts an increase in positive economic indicators like income,
output, employment, and profits.

94
FINANCE
2. Peak: The economy then reaches its upper saturation point, i.e., peak.
The peak is the second stage of the business cycle. The economic
indicators do not increase any further and are at their highest.
3. Recession: The recession is the next stage. The demand starts falling
rapidly, and all the positive economic indicators like income, output,
employment, etc., begin to fall.
4. Depression: The next stage is Depression, which indicates a
commensurate rise in unemployment. The growth in the economy in this
phase continues to decline.
5. Trough: In the Trough Stage, there is further decline until the positive
indicators reach their lowest point. It is the negative saturation point for
the economy.
6. Recovery: After reaching its negative saturation point, the economy
comes to the stage of recovery. The economy now has a positive
attitude, and positive indicators start increasing.

Initial Public Offering (IPO) is the issuance of public shares by a

company to raise capital from public investors. By issuing an IPO, a
private company transforms into a public company. Once a company
decides to go public, it gets regulated by SEBI. Hence, the company has
to disclose a few details mandatorily for the knowledge of investors.

Follow-on Public Offering(FPO) is the issuance of shares by a company

listed on a stock exchange. The company issues additional shares after
an Initial Public Offering (IPO) to raise more capital to expand or to pay
off the debt. Companies use FPO to diversify their equity base. FPOs are
also known as secondary offerings.

95
FINANCE
What is Fundamental & Technical Analysis?

Fundamental analysis refers to the method of analyzing securities by

determining the intrinsic value of the stock. It involves analyzing the
financial performance and position of the company. It assesses all the
factors that can influence the stock's value,called fundamentals, which
are nothing but financial statements, management, business concept,
competition, etc. It aims at analyzing the economy as a whole, the
industry to which it belongs, and the firm itself.
It focuses on both the past and the present data and is relevant for long-
term investments.
Technical Analysis refers to the process of analyzing price volume
movements. It predicts the change in the price of a security based on
market information. It determines whether the uptrend or downtrend in
price will continue or will reverse in the future. The main objective of the
technical analysis is to identify the right time to enter or exit the market.
It focuses only on past data and is relevant for short-term investments.
Thereare two methods for conducting technical analysis:

Understanding Chart Patterns: The chart patterns help in determining

the direction of the trend. Green-colored candlestick is referred to as
showing the bullish trend, while red-colored candlestick shows a bearish
trend. Examples of Chart Patterns are Spinning Top, Hammer and
Hanging Man, Head and Shoulders, Double Top, etc.

Technical Indicators: These indicators are heuristic or mathematical

calculations based on price, volume, or open interest of security used by
traders who follow technical analysis. They predict as well as confirm
the trends.

96
FINANCE
Examples of Technical Indicators are Simple Moving Average (SMA),
Relative Strength Indicator (RSI), etc.

Shares, Bonds, and a few basic concepts related to them in the simplest
possible terms

Share
It refers to a unit of ownership in the company. A share is the share in
the share capital of a company and includes stock.

Types of Shares
Preference Shares: It carries the following two preferential rights over
holders of equity shares.
Preferential right in respect of dividend at a fixed rate or a fixed
amount
Preferential right in respect of repayment of capital in the event of
winding up

Equity Shares: Those shares which are not preference shares are known
as equity shares. Members holding equity shares carry voting rights. The
rate of dividend is not fixed.
Common terms used in the market
Primary Market: Primary market is where the bond or new stock is sold
for the first time.
Initial Public Offering: It refers to the process of offering shares of a
private corporation to the public in a new stock issuance.
Share Market/ Stock Market: It refers to a collection of markets and
exchanges where regular activities of buying, selling, and issuance of
shares of publicly held companies take place. Example: SENSEX,
NASDAQ, etc.

97
FINANCE
Market Capitalization: It refers to the market value of a company's
outstanding shares of stock. It is calculated by multiplying the total
number of the company's outstanding shares by the market price of its
share.
Net Worth: Net worth refers to the difference between the assets and
liabilities of the company. It presents a snapshot of the company's
current financial position.

Bonds
It refers to the unit of corporate debt issued by the company. It is a long-
term debt security that enables firms to borrow money for a fixed period
of time at a fixed rate by multiple lenders.

Coupon: It is the annual interest payment that the bondholder receives

from the date of bond issue till its maturity.
Coupon Rate: It is calculated by dividing the periodic interest payments
received by the bond's face value.
Yield to Maturity: It refers to the total return anticipated on a bond if it is
held until it matures.
Zero-Coupon Bond: It refers to the debt security that does not pay any
interest but instead trades at a deep discount, offering full face value at
the time of maturity. The difference between the face value and the price
of a zero-coupon bond indicates the investor's return.
Golden Rule of Accounting: Real, Nominal, Personal A/c

There are 3 Golden Rules of Accounting. To understand the three golden

rules, one needs to have an understanding of the three types of
accounts, which are:
a)Real Accounts: These accounts are recorded in the ledger as Assets

98
FINANCE
or Liabilities. The balances of these accounts are not closed at year-end,
and the balance amount remaining is carried forward to the next year.
Ex. Building a/c of a business
b)Personal Accounts: These are recorded as accounts belonging to
individuals, firms,and associations. Ex. Creditor a/c: creditor of a
business
c)Nominal Accounts: These are Ledger accounts of all incomes,
expenses, losses, or gains. Ex. Interest a/c

Based on the above accounts, there are three golden rules to be

followed when recording any transaction:
1. For a real a/c: Debit what comes in, credit what goes out
2. For a personal a/c: Debit the receiver, credit the giver
3. For a nominal a/c: Debit all expenses and losses, credit all incomes
and gains

Discounting
We use discounting to find the present values of payment or a stream of
payments that is to be received in the future. As we know, A dollar is
always worth more today than it would be worth tomorrow if money has
a time value. As the discount rate increases, the level of risk associated
with an investment and its future cash flows also increases.

Ex. The present value of $110 at the beginning of a year is $100 if the
discount rate is 10% per annum.

Time Value of Money

Time Value of Money is a concept that states that the same amount of
money will have a higher value today than it will have in the future. The

99
FINANCE
reason behind money having higher value is its ability to earn interest. As
money can be deposited in a bank to earn interest or invested in assets
(Real of Financial) to earn a return, any amount of money is worth more
the sooner it is received.

How is TVM calculated?

FV = Future value of money
PV = Present value of money
I = Interest rate
n = Number of compounding periods per year
t = Number of years
Based on these variables, the formula for TV Mis: FV = PV x [ 1 +(i / n)](n
x t)

Net Present Value (NPV)

Suppose we want to identify whether a project is a good investment
opportunity or not. The simplest way to do this is by comparing the initial
investment with the cash generated using that investment. If the cash
generated using the investment is more than what we had invested, it is
a good opportunity and vice versa. Cash received is called cash inflow,
and the cash paid is called cash outflow.

Since cash inflows and outflows occur during different time periods, and
because of the time value of money,their value can differ significantly
from the amount.We need to find the present valueof these cash flows
and then subtract outflows from inflows.

Net present value (NPV) is the difference between the present value of
cash inflows and the present value of cash outflows over a period of

100
FINANCE
time. NPV is used in capital budgeting and investment planning to
analyze the profitability of a projected investment or project.

Internal Rate of Return (IRR)

IRR is a measure of an investment's rate of return. The term 'Internal'
refers to the fact that IRR does not consider external factors like
inflation, cost of capital, or financial risks.
Generally, if the IRR is more than the Discounting Rate, we accept the
project. If IRR is less than the Discounting Rate, we reject the project.
The net present value becomes zero at the discount rate equal to IRR.
Sometimes more than one IRR is also possible for an investment
opportunity.

Annuity
An annuity is an equal and at equal time intervals of cash flows made
over a predetermined time period. Annuities can be used for various
purposes, but the most common one is providing a steady income for
retirees.

The formula for the present value of an ordinary annuity, as opposed to

an annuity due (where the cash flows are made at the end of the year)
below. (An ordinary annuity pays interest at the end of a particular
period, rather than at the beginning, as is the case with an annuity due.)
PV = PMT× {1 - (1 / (1+r)n )}÷ r
where:
PV = Present value of an annuity stream
PMT = Money value of each annuity payment
r = Interest rate (also known as the discount rate)
n = Number of periods in which payments will be made

101
FINANCE
Perpetuity
A perpetuity is a security that pays for an infinite amount of time. In
Finance, perpetuity is a constant stream of identical cash flows with no
end.
The present value of a perpetuity is calculated as follows: PV = PMT ÷ r
Where,
PV = Present value of a perpetuity PMT = Money value of each cash flow
r = Interest rate (also known as discount rate)

Non-performing asset (NPA)

A Non-performing asset (NPA) is described as a classification for loans
or advances in respect of which the interest and/or installment of the
principal amount has remained past due for a specified prolonged
period. In other words, an asset (loan or advances made by a bank) is
labeled as a non-performing asset when it ceases to generate any
income for the lender. Once the borrower has failed to make interest or
principal payments for 90 days, the loan is considered to be a non-
performing asset.

NPAs impose financial burdens on the lender; a large number of NPAs

over a period of time can suggest to regulators that the financial health
of the bank is at risk.

NPAs may be categorized as a substandard asset, a doubtful asset, or a

loss asset, based on the length of time overdue and the likelihood of
repayment.

For the quarter ended September 2023, the gross NPAs overall fell from
3.9% in March 2023 to 3.2% in September 2023. The fall has been across

102
FINANCE
private banks, PSBs, and foreign banks. for the banking sector as a whole
with PSBs reporting gross NPAs of 4.4% as of September 2023 compared
to 5.2% as of March 2023

NBFC
A Non-Banking Financial Corporation (NBFC), also known as a Non-Bank
Financial Institution (NBFI), is a financial institution offering certain bank-
like services but has not been granted a banking license from the
regulator. They are not allowed to accept demand deposits from the
public, and this limitation keeps them outside the purview of conventional
oversight from the financial regulator. There are several NBFCs, and below
is a non-exhaustive list of some of these:

Asset Financing Companies (AFCs)

Housing Finance Companies (HFCs)
Investment Companies (I.C.s)
Loan Companies (L.C.s)
Micro Finance Institutions (MFIs)

Corporate Governance
Refers to the set of rules, processes, or laws by which an enterprise’s
business is operated, regulated, or controlled. It involves keeping in mind
the best interests of all stakeholders. Corporate governance is based on
the 4Ps, namely - People, Process, Performance, and Purpose. It makes
companies accountable and transparent to minimize expropriation and
unfairness for stakeholders.

Arbitrage
Arbitrage is a type of trade when security, currency, or commodity is nearly

103
FINANCE
simultaneously bought and sold. The purpose is to benefit from the
difference in prices for the same financial instrument offered on different
exchanges.
To know more about Arbitrage and a few compelling examples: Click Here

Diversification
Diversification includes different types of investments like stocks, bonds,
real estate, commodities, etc., in the portfolio to mitigate the risk. Even for
stocks, one should invest in more than one industry to diversify the
portfolio. It will help hedge against the market volatility, and it will reduce
the risk to give higher returns in the long term.

Mutual Funds
A mutual fund professionally manages a well-diversified investment
portfolio on behalf of the investors, and they charge small fees in return. It
could be an ideal investment vehicle for those who do not know how to
invest or do not have enough time to regularly follow market trends.
Investors can select a mutual fund scheme based on their financial goals.

Mergers and Acquisitions

When a company takes over another company, it becomes the new owner;
it's called an Acquisition. From a legal viewpoint, the target company
ceases to exist; the buyer controls the business. The buyer's stock
continues to be traded, while the target company's stock ceases to trade.

A Merger is the voluntary fusion of two companies into one new legal
entity. The firms that agree to merge are roughly equal in terms of size,

104
FINANCE
customers, the scale of operations, etc. Therefore, the term "merger of
two equals" is sometimes used. Mergers are most done to gain market
share, reduce operational cost, expand to new territories, unite common
products, and increase profits - all of which should benefit the firms'
shareholders. After a merger, shares of the new company are distributed
to existing shareholders of both original businesses.

Reserve Bank of India(RBI)

RBI is the central bank of India, which is the only bank that is authorized
to plan, prepare, and implement monetary policy for India. The primary
objective of RBI is to maintain price stability by keeping inflation in
check. It also ensures the consistent growth of the economy while
making decisions. RBI issues currency and also exchanges or destroys
currency not fit for circulation. RBI is known as the 'bank of all banks'
because it regulates all banks in India.

Security Exchange Commission of India (SEBI)

SEBI, also known as the Security Exchange Commission of India, is the
regulator and controller of India's capital markets. The stock market,
Money market, etc., fall under the bracket of the capital market. SEBI
primarily works for the investors' best interest to maintain their
confidence in the market by ensuring many checks and balances to
maintain transparency. SEBI was given statutory power under the SEBI
Act, 1992 on 30 January 1992.

Basel Norms
Basel Norms are the international standards issued by the Basel
Committee that aim to deal with banking regulations and were
established to strengthen the banking system worldwide.

105
FINANCE
The committee was established in 1974 and included central bank
governors of ten countries to solve the issues regarding the regulatory
framework of financial institutions.

Basel I

Basel is the first accord issued by the Basel Committee on Banking

Supervision (BCBS) in Basel, Switzerland. The accords were first
established in 1988 and deal with the minimum capital requirements for
banks. The main aim of these norms is to minimize the risks associated
with financial institutions, which include the credit risks that occur when
a borrower from the bank cannot repay his loan.

Basel II

The Basel II accord was first published in June 2004 and has devised
rules regarding cash that have to be maintained by financial institutions
to compensate for their operations as well as other liquidity risks. This
norm is the second in the series of accords issued by the Basel
Committee on Banking Supervision (BCBS). The Basel II norms were
added to the Basel I norms to accommodate deeper models for
calculating regulatory capital. These norms suggested mandating the
financial institutions to hold more capital, which corresponds to the risks
associated with the institution.

The three crucial pillars of Basel II are:

Minimum Capital Requirement: It deals with the regulatory capital
for the bank, which will compensate for the credit risk, market risk,
and regulatory risk associated with the bank.

106
FINANCE
·Supervisory review: This pillar works as a regulator for pillar I and
provides a framework to deal with systematic risk, liquidity risk, and legal
risk associated with the bank.
·Market discipline: It mandates the institution to provide information
relating to the institution to the investors and the various stakeholders.
This pillar helps them to establish the capital sufficiency of the financial
institution.

Basel III

These norms were published in the aftermath of the financial crisis of

2008. These were first published in November 2010 and were scheduled
to be introduced in 2013; however, it was extended to 31 March 2019.
The accord deals with the problems faced during the financial crisis. It
aims to strengthen the bank's capital requirements by increasing the
banks' liquidity and decreasing the financial leverage associated with the
banks.

107
FINANCE
Topics - Finance

1. Role of AI/ML in Finance

2. Bank Mergers
3. The anticipation of the world towards the turnaround of global
financial markets
4. How can the MSME sector evolve in these recessionary conditions?
5. The exploding use of A.I. in the investment and banking sector
6. The implication of US-China trade wars on the macroeconomic
growth of the Indian economy
7. Impact of Covid-19 on investment decisions
8. Steps the Indian government is taking to combat an economic
slowdown
9. Is the Insolvency and Bankruptcy Code, 2016 useful reform to
recover back bad loans?
10. ESG Investing
11. Structural changes in the Indian banking system to tackle the
problem of growing NPAs
12. Recent moratorium implemented on different banks and the impact

108
FINANCE
PI Questions

1. What are the various capital budgeting methods?

2. Explain NPV and IRR.
3. Can we have multiple IRRs? When do we have multiple IRRs?
4. Which method is better to make an investment decision- NPV or
IRR?
5. What do you mean by the financial statements? What are its types?
How are they interlinked with each other? State the treatment of
prepaid expenses in each of the financial statements.
6. What is the market cap of the company? Is it the same as the net
worth of the company?
7. What is depreciation? Why do we calculate it? What is the rate of
depreciation on furniture? Compute the depreciation on the chair you
are sitting on by both methods.
8. If you are to invest in a company's share, what are the three things
you will check in their books of accounts?
9. What is the importance of the different financial statements? Which,
according to you, is the most important and why?
10. How is Corporate Income double-taxed?
11. How will you decide which project to Finance?
12. Extempore on Budget.
13. Difference between cost, financial, and management accounting.
14. What is the difference between operating leverage and financial
leverage?
15. What is the difference between the balance sheet of a company and
a bank?
16. What is the difference between Depreciation and Amortization?

109
FINANCE
Preparation Tips

1. Read financial statements from the company's annual reports in

which you were working, if you have work experience.
2. Pick any one sector and thoroughly prepare on the growth,
investments, key financial parameters used in the sector analysis,
and recent current affairs.
3. Be very clear with the basic concepts, especially if you have a
commerce/economics background. Financial statements, capital
budgeting methods, and financial ratios are some important topics.
Be clear with the concepts of depreciation, amortization, tangible
and intangible assets, and other basic accounting terms. You should
be able to answer everything if your basics are clear.
4. Must study Financial Crisis 2008 and recent M&A deals in India.
5. In case you are sure that Finance is the domain you wish to choose,
be clear about various career opportunities in Finance and your
preference among them.
6. Have a basic understanding of SENSEX, NIFTY, and stock markets.

110
 ENTREPRENEURSHIP
BY SAKSHAM
THE ENTREPRENEURSHIP CELL OF IIM UDAIPUR
ENTREPRENEURSHIP
What is Entrepreneurship?

Entrepreneurship is the process of identifying a gap or problem in the

market and creating a business solution to address it. It involves taking
calculated risks, innovating, and building sustainable businesses.
Entrepreneurs are key drivers of economic growth, job creation, and
innovation in society. In simple terms, an entrepreneur is someone who
takes the initiative to start and manage a business, often taking on
financial risks in the hope of profit.

Key Traits of an Entrepreneur:

Risk-taking
Innovation
Leadership
Perseverance

Types of Entrepreneurs:
Entrepreneurs can be categorised into various types based on their
goals, business models, and impact.
Below are the most common types:

Tech Entrepreneurs: Leverage technology to solve problems and create

scalable businesses- Raveendran of Byju’s
Social Entrepreneurs: Focus on solving social issues while balancing
profit with social impact- Harish Hande of SELCO

Serial Entrepreneurs: Launch multiple businesses over their careers-

Elon Musk

112
ENTREPRENEURSHIP
Corporate Entrepreneurs: Act like entrepreneurs within organisations to
drive innovation- Ratan Tata

Indian Startup Ecosystem:

India’s startup ecosystem is booming, driven by increased internet
penetration, a young population, and supportive government policies.
India is home to over 100 unicorns and is the third-largest startup
ecosystem globally.

Key Milestones in India's Startup Journey:

Flipkart: India’s first big e-commerce success.
Paytm: Revolutionized digital payments.
OYO: A disruptor in the hospitality industry.
Zomato: From food reviews to a global food delivery giant.
Nykaa: A successful omnichannel beauty retailer.

Government Initiatives to Promote Entrepreneurship:

Startup India: Provides funding support, tax benefits, and ease of
doing business.
Digital India: Promotes digital infrastructure and literacy.
Atmanirbhar Bharat: Encourages self-reliance and innovation.

Why MBA for Entrepreneurs?

An MBA can be a valuable asset for entrepreneurs. It equips individuals
with the knowledge, skills, and networks needed to build and scale
businesses.
Benefits of an MBA for Entrepreneurs:
Business Acumen: Develop core skills in finance, marketing,
operations, and strategy.

113
ENTREPRENEURSHIP
Networking Opportunities: Connect with potential co-founders,
mentors, and investors.
Incubation and Funding: Access to startup incubators and seed
funds through B-school networks.

Interview Question:
"Why do you want to pursue an MBA if you are interested in
entrepreneurship?"
Answer Tip: Discuss building a foundation in business skills, accessing
a diverse network, and finding mentors to help scale your venture.

The 6 Stages of a Startup Lifecycle:

1. Pre-Seed Stage
The pre-seed stage is where the foundation of the startup is laid.
Entrepreneurs focus on exploring and validating their initial business
ideas.

114
ENTREPRENEURSHIP
Key Activities:
Laying the foundation for the business idea.
Ideation, testing, and analysis of the market.
Validating business hypotheses.
Identifying key stakeholders and clarifying market needs.
Conducting detailed market research to understand the target group.
Preparing and presenting the business plan to potential investors or
advisors.

Objective:
To test the feasibility of the idea and ensure it solves a real market
problem.

2. Seed Stage
The seed stage involves turning the validated idea into a viable business
concept and securing initial financial support.

Key Activities:
Confirming the market demand for the product or service.
Gaining initial financial support from angel investors or seed funds.
Validating the business model to ensure profitability.
Building a working prototype of the product.
Finding the right market solution and target audience.
Establishing key contacts and leveraging multiple financial sources.

Objective:
To validate the business model and secure seed funding to launch the
product.

115
ENTREPRENEURSHIP
3. Early Stage
At the early stage, the startup focuses on developing a minimum viable
product (MVP) and acquiring its first customers.

Key Activities:
Reaching the first round of venture capital funding.
Crafting a minimum viable product (MVP) to test in the market.
Establishing a sizable customer base.
Generating a steady stream of monthly revenue.
Proving the durability and reliability of the revenue model.
Presenting the return on investment (ROI) to early investors.

Objective:
To achieve product-market fit and ensure the business is scalable.

4. Growth Stage
In the growth stage, startups work on expanding their market presence
and maintaining long-term profitability.

Key Activities:
Scaling the business to a bigger market.
Maintaining profitability and cash flow.
Raising additional funding rounds.
Diversifying funding sources to reduce financial risks.
Expanding the team to support business growth.
Aiming for healthy and sustainable growth.

Objective:
To establish a strong market presence and focus on long-term growth.

116
ENTREPRENEURSHIP
5. Expansion Stage
During the expansion stage, the startup looks to enter new markets and
diversify its offerings.

Key Activities:
Becoming profitable and self-sufficient.
Expanding the business to new geographic markets.
Growing revenue by at least 20% for three consecutive years.
Venturing into global markets and new customer segments.
Considering acquisitions to accelerate business expansion.
Building strategic partnerships to strengthen the business.

Objective:
To achieve significant business growth and enter new market
segments.

6. Exit Stage
The exit stage is when the startup evaluates potential exit strategies,
such as acquisition or IPO.

Key Activities:
Expanding by acquiring other companies or being acquired.
Exploring the possibility of selling the business.
Deciding the best exit strategy based on the company's goals.
Preparing the business for a public offering (IPO) or merger.
Seeking legal and financial support for a smooth transition.

Funding for Startups

Startups require funding at various stages to grow and scale. Below are
some common funding sources:

117
ENTREPRENEURSHIP
1. Bootstrapping: Self-funding a startup.
2. Angel Investors: High-net-worth individuals who invest in early-stage
startups.
3. Venture Capital (VC): Institutional funding for startups with high
growth potential.
4. Crowdfunding: Raising funds from a large group of people online.
5. IPO (Initial Public Offering): Taking the company public to raise
funds from the stock market.

Popular Entrepreneurship Frameworks

1. Business Model Canvas:

The Business Model Canvas is a strategic tool used to design, describe,

and pivot business models. It helps visualize existing business models
and explore new ones, making it essential for both startups and
established businesses.

118
ENTREPRENEURSHIP
Key Components:
Customer Segments: Define different groups of people your
business aims to serve.
Value Propositions: Outline the unique value your product or service
offers to each customer segment.
Channels: Specify how your business delivers its value proposition to
customers (e.g., online, retail stores).
Customer Relationships: Describe how your business interacts with
customers to retain them.
Revenue Streams: Identify how your business generates revenue
from each customer segment.
Key Resources: List the assets essential for delivering your value
proposition (e.g., intellectual property, capital).
Key Activities: Highlight the most important tasks your business
needs to do to operate effectively.
Key Partnerships: Identify external companies or suppliers that help
in achieving key business operations.
Cost Structure: Break down the costs associated with operating your
business.

Key Benefits:
Simplifies complex business ideas into a clear, visual story.
Helps design and manage multiple business models.
Facilitates quick shifts between exploration and exploitation
strategies.

119
ENTREPRENEURSHIP
2. SWOT Analysis for Startups:

SWOT Analysis is a strategic tool to identify a business's internal

strengths and weaknesses, as well as external opportunities and threats.
It helps startups evaluate their position in the market and devise
actionable strategies for growth.

Key Components:
Strengths: Internal attributes that provide a competitive edge (e.g.,
skilled workforce, strong customer base).
Weaknesses: Internal gaps that hinder performance (e.g., lack of
funding, skill gaps).
Opportunities: External factors that can drive growth (e.g., market
trends, technological advancements).
Threats: External risks that may impact business success (e.g.,
emerging competitors, regulatory changes).

120
ENTREPRENEURSHIP
Key Benefits:
Risk Reduction: Identifies weaknesses and threats to mitigate
potential risks.
Performance Improvement: Leverages strengths and opportunities
to enhance business performance.
Competitive Strategy: Helps analyze competitors and position the
startup effectively in the market.

Lean Startup Methodology:

The Lean Startup Methodology is a business approach focused on

building products through experimentation and iteration. Created by Eric
Ries, this method emphasizes developing a Minimum Viable Product
(MVP) to test ideas quickly and gather customer feedback.
Key Components:
Build: Develop a basic version of the product with core features.
Measure: Test the MVP with a small group of customers and collect
feedback.

121
ENTREPRENEURSHIP
Learn: Use feedback to improve the product and refine the business
model.

Key Benefits:
Reduces waste by focusing on essential features.
Encourages continuous learning and adaptation.
Minimizes risk by validating ideas early in the development process.

Difference from Traditional Startup Approach:

Lean Startup: Focuses on iterative product development and
customer feedback.
Traditional Startup: Relies on detailed business plans and large initial
investments.

Case Studies of Successful Startups:

1. Zomato

Founders: Deepinder Goyal and Pankaj Chaddah

Zomato, initially launched as a food directory called Foodiebay in 2008,
has transformed into one of the world’s leading food delivery and
restaurant discovery platforms.

122
ENTREPRENEURSHIP
Key Milestones:
Started as an online restaurant review platform.
Pivoted to include food delivery, dining-out services, and
subscription-based memberships.
Expanded into 24 countries, including UAE, Australia, and the USA.
Acquired several companies, such as Uber Eats India.

Zomato successfully pivoted its business model multiple times—from a

food directory to a global food delivery platform—to adapt to evolving
market needs.
Adaptability and innovation are crucial in competitive markets. Zomato’s
ability to diversify services helped it sustain and grow.

2. Nykaa

Founder: Falguni Nayar

Founded in 2012, Nykaa is one of India’s most successful beauty and
wellness platforms. It combines online and offline retail channels to
provide a seamless customer experience.
Key Milestones:
Initially launched as an online platform selling beauty and wellness
products.
Expanded to physical stores across major cities in India.

123
ENTREPRENEURSHIP
Listed on the Indian stock exchange in 2021 with a blockbuster IPO.
Focused on offering curated and personalized product
recommendations.

Nykaa effectively combined online and offline retail channels to cater to

diverse customer preferences and build brand loyalty.
A hybrid model of e-commerce and brick-and-mortar stores can enhance
customer trust and reach untapped markets.

3. Ola

Founders: Bhavish Aggarwal and Ankit Bhati

Ola, founded in 2010, disrupted India’s transportation sector by offering
a reliable ride-hailing service.

Key Milestones:
Initially started as a ride-booking website.
Introduced app-based bookings and diversified services, including
Ola Auto, Ola Bike, and Ola Electric.
Expanded into food delivery and financial services.
Operates in more than 250 cities across India and several
international locations.

124
ENTREPRENEURSHIP
Ola leveraged technology to solve real-world transportation problems
and diversified its offerings to cater to various customer segments.
Technology-driven innovation and customer-centric services can create
new markets and disrupt traditional industries.

Key Business Terms Every Aspirant Should Know:

Key Term Definition

A basic version of a product that

MVP
includes only core features, used to test
(Minimum Viable Product)
viability and gather customer feedback.

A significant change in a company’s

Pivot business model based on feedback or
changing market conditions.

The cost of acquiring a new customer,

CAC calculated by dividing total marketing
(Customer Acquisition Cost) expenses by the number of new
customers acquired.

The total revenue a business can expect

LTV
from a customer over the duration of
(Lifetime Value)
their relationship.

125
ENTREPRENEURSHIP
The rate at which a company spends its
Burn Rate capital before generating positive cash
flow.

A financial framework that evaluates a

Unit Economics business’s revenue, costs, and
profitability on a unit basis.

A plan for how an entrepreneur will exit

Exit Strategy their business, such as through a sale or
merger.

Measures the profitability of an

ROI
investment relative to its cost. A positive
(Return on Investment)
ROI indicates a profitable venture.

Represents the flow of money into and

Cash Flow out of a business. Positive cash flow
indicates more inflow than outflow.

The sales level at which a business

Break-Even Point covers all its expenses without making a
profit or loss.

A strategic tool to assess strengths,

SWOT Analysis weaknesses, opportunities, and threats
for a business

126
ENTREPRENEURSHIP
B2B refers to businesses selling to
other businesses, while B2C refers to
B2B/B2C
businesses selling directly to
consumers.

A specific group of customers a

Target
business aims to serve with its
Market
products or services.

The difference between revenue and

Profit costs. A healthy profit margin
Margin indicates efficient operations.

Building and maintaining

professional relationships to gain
Networking
opportunities and insights.

A company’s financial obligations or

Liabilities debts. Managing liabilities is
essential for financial health.

A unicorn is a privately held startup

valued at $1 billion or more. These
Unicorn
rare companies achieve rapid
growth and disrupt industries.

127
ENTREPRENEURSHIP
10 Successful Women Entrepreneurs in India:

Latest Trend in Business:

India's Economic Growth Projections: India anticipates a slowdown in

economic growth, with an expected 6.4% increase for the fiscal year
ending March 2025—the lowest in four years. This deceleration is
attributed to weaker investment and manufacturing performance. In
response, Prime Minister Narendra Modi's administration is considering
measures to invigorate economic sentiment, such as loosening
monetary policies and decelerating fiscal tightening.

Reuters
National Stock Exchange (NSE) Expands Co-Location Capacity: The
NSE has increased its data center co-location capacity by over 200
racks, facilitating faster access to price-sensitive information for
brokers. This expansion positions NSE as one of the largest
providers of co-location facilities globally, with plans to add
approximately 2,000 racks over the next two years to meet high
demand.

128
ENTREPRENEURSHIP
Reuters
Rural Consumption Growth: Recent data indicates that spending in
India's rural areas is growing faster than in urban regions, with a notable
shift towards processed foods and non-food items. This trend is
narrowing the urban-rural consumption gap and influencing economic
policies to support urban middle-class dwellers facing economic
challenges.

Reuters
Microsoft's Investment in AI and Cloud Infrastructure: Microsoft has
announced plans to invest $3 billion over the next two years to enhance
its cloud and artificial intelligence infrastructure in India. This expansion
aims to bolster its Azure cloud business, build new data centers, and
equip 10 million locals with AI skills by 2030.

The Wall Street Journal

India-Australia Economic Collaboration: The Comprehensive Strategic
Partnership and the Australia-India Economic Cooperation & Trade
Agreement (ECTA) have significantly boosted bilateral trade, with a
notable increase in exports to India. Both countries aim to expand their
trade relationship, targeting $100 billion in bilateral trade, with
opportunities for collaboration in the renewable energy sector.

The Australian
Union Budget 2025 Expectations: Finance Minister Nirmala Sitharaman
is set to present the Union Budget on February 1, 2025. There are
expectations for continued government support for India's startup
ecosystem, including facilitating policies, funding initiatives, and
infrastructure development to drive innovation and growth.

129
ENTREPRENEURSHIP
Economic Times
Reserve Bank of India's Monetary Policy: The Reserve Bank of India has
kept the repo rate unchanged at 6.5% for the 11th consecutive time, with
a neutral policy stance. However, there is speculation about a potential
rate cut in February 2025, considering inflationary pressures and
economic growth projections.

Economic Times CFO

Upcoming Aero India 2025: The 18th edition of Aero India is scheduled
for February 2025, focusing on foreign tie-ups and the 'Make in India'
agenda. The event aims to promote Indian startups and showcase
pioneering projects to interested overseas buyers, emphasizing
indigenization in the defense sector.

Sample Interview Questions:

Behavioral Questions:

1. Can you share an instance where you took a calculated risk, and
what was the outcome?
2. Describe a time when you had to pitch your idea to someone who
was initially skeptical. How did you convince them?
3. What is the toughest decision you’ve made as a leader, and what did
you learn?
4. Who is your ideal entrepreneur, and what specific traits or
achievements inspire you?
5. Describe a situation where you failed to achieve a business goal.
How did you handle it, and what changes did you implement?

130
ENTREPRENEURSHIP
Situational Questions:

If your business idea does not succeed, what steps will you take to
recover and pivot?
Given a budget of ₹1 crore, how would you start a business and
ensure its sustainability?
Can you explain the role of SMEs (Small and Medium Enterprises) in
contributing to India's GDP, and why government support is crucial
for them?
What are some key government schemes promoting
entrepreneurship in India, and how can they benefit startups?
Imagine you are launching a new product. How would you approach
market research to ensure it meets customer needs?
How would you handle a situation where your startup faces financial
challenges due to unexpected market conditions?
What innovative strategies would you use to differentiate your
startup from competitors?
If you had to choose between profitability and social impact for your
business, which would you prioritize and why?

General Knowledge Questions:

Who is considered the "Father of Entrepreneurship" for his

groundbreaking work on innovation and economic development?
Answer: Joseph Schumpeter
Which Indian government initiative aims to promote startups through
funding, mentorship, and policy support?
Answer: Startup India
What does the term "Unicorn" refer to in the startup world?

131
ENTREPRENEURSHIP
Answer: A privately held startup company valued at $1 billion or more.
Which Indian female entrepreneur founded Biocon, one of India’s
largest biopharmaceutical companies?
Answer: Kiran Mazumdar Shaw
What does the term "SME" stand for, and why are they significant in
the Indian economy?
Answer: Small and Medium Enterprises (SMEs). They are significant
because they contribute over 30% to India's GDP and generate
employment for millions.
Name the government scheme that provides collateral-free loans to
micro and small enterprises in India.
Answer: Credit Guarantee Fund Trust for Micro and Small Enterprises
Which Indian entrepreneur is the founder of Infosys, one of the
leading IT services companies globally?
Answer: Narayana Murthy
Which company became India’s first-ever startup to be publicly listed
on the NASDAQ stock exchange?
Answer: Infosys
What does the term "Bootstrapping" mean in the context of startups?
Answer: Bootstrapping refers to starting a business with personal
savings or revenue from the business, without external funding.
Which Indian startup became the country's first decacorn (a company
valued at over $10 billion)?
Answer: Paytm

132
ENTREPRENEURSHIP
Common Entrepreneurship WAT-PI Topics:
1. "Should entrepreneurs focus on profit or purpose?"
2. "Is India’s startup boom sustainable?"
3. "Failure is essential for success in entrepreneurship. Discuss."
4. "Discuss the rise of unicorns in India and the challenges they face."

Answer Tip: Use frameworks like PESTEL and SWOT to provide a

structured answer.

Recent Trends in Entrepreneurship:

1. Rise of D2C (Direct-to-Consumer) Brands
2. Growth of Social Impact Startups
3. FinTech Revolution
4. Sustainability and Green Startups
5. Use of AI and Blockchain in Startup

Tips:
1. Read India’s Annual Financial Statement for FY 2025-26
2. Follow Business News Daily
3. Study the E-Commerce Sector
4. Understand the Impact of AI on Business
5. Stay Updated on the Latest Mergers and Acquisitions

133
 ECONOMICS
BY PIE
THE ECONOMICS CLUB OF IIM UDAIPUR
ECONOMICS
1. What is Economics?

Economics is a social science that focuses on the production,

distribution, and consumption of goods and services and analyses the
choices that individuals, businesses, governments, and nations make to
allocate resources. It studies how people allocate scarce resources
individually and collectively for production, distribution, and
consumption.

There are two branches of economics: Microeconomics and

macroeconomics.

Microeconomics: This branch studies the decisions of individuals and

firms to allocate resources for production, exchange, and consumption.
Macroeconomics: Macroeconomics is the branch of economics that
deals with the structure, performance, behaviour, and decision-making
of the whole, or aggregate, economy.

2. Importance of Economics in MBA

Economics is the study of what drives human behaviour, which leads to

decisions made in times of affliction or success. Using scientific
methods, economics helps allocate scarce resources to ensure
efficiency in today’s world. It is of special importance to business
students because businesses rely on economics for product research
and development, marketing, purchase and resource allocation, and
many other strategic decision-making strategies. Understanding these is
vital for any business to operate efficiently, drive out competitors, and
succeed.

135
ECONOMICS
In short, studying economics develops your competencies and
transferable skills, such as critical and analytical thinking, problem-
solving, research, numeracy, and communication.

3. Types of Economies

A. Capitalist Economy: It is the economy where the decisions about

what to produce, how much to produce, and the price to sell are solely
taken by the market or the private enterprises in the system, and the
state has no economic role. This concept originated in the famous work
of Adam Smith- The Wealth of Nations (1776).

B. Socialist Economy: A socialist economy is an economic system where

the state owns the means of production and allocates resources to meet
the needs of the population. The goal of a socialist economy is to
eliminate social injustices that are associated with private ownership
and market allocation.

C. Mixed Economy: It is an economy where the state controls some

elements, and the market regulates the rest. In other words, it combines
the capitalist economy and the state economy.

4. Demand, Supply, and Equilibrium

A. Demand curve: It represents the relationship between the quantity of

goods the consumers are willing to buy and the price.
Influencing factors: Income of the consumer, Price of the good, Price of
other goods, Tastes and Preferences of consumers.

136
ECONOMICS
B. Supply curve: It represents the relationship between the quantity of
goods that producers are willing to sell and the price of the goods.
Influencing factors: Production costs (e.g., raw materials and labor
costs), technological progress, the level of competition and number of
sellers/producers, and regulations.

C. Equilibrium: It is the state in which market supply and demand

balance each other, and as a result, prices become stable. Generally, an
over-supply of goods or services causes prices to go down, which
results in higher demand, while an under-supply or shortage causes
prices to go up, resulting in less demand. The balancing effect of supply
and demand results in a state of equilibrium.

5. What is Money?

Money is anything that can perform the following functions:

· Medium of Exchange
· Store of Value
· Unit of Account
· Standard of Deferred Payment

6. National Income and Related Terms

National Income: National Income is the monetary value of all the final
services and goods produced in an economy during a given period.
There are four ways to calculate a country's income: GDP, NDP, GNP,
and NNP, also a subject in ‘National Income Accounting’.

137
ECONOMICS
GDP: Gross Domestic Product (GDP) is the value of all the final goods
and services produced within the nation's boundary during one year.
GDP is one of the primary indicators used to gauge the health of a
country's economy.

One of the ways to calculate GDP is by expenditure method:

GDP= C+ I +G + NX, where

C: all private consumption/consumer spending in an economy

G: the sum of government spending.
I: the sum of all the country's business's spending on capital
NX: the nation's total net exports, (NX = Exports- Imports)

NDP: Net Domestic Product (NDP) is the GDP minus the depreciation of
the goods and services produced.
GNP: Gross National Product is the summation of a nation's GDP and
the nation's income from outside of the nation. GNP indicates both the
quantitative and qualitative aspects of the economy.
NNP: Net National Product (NNP) is the GNP minus the depreciation of
the economy. This is the National Income of the Nation.

7. Real v/s Nominal GDP

The main difference between real and nominal values is that real values
are adjusted for inflation while nominal values are not. Generally, for a
country with positive inflation, nominal GDP will often appear higher than
real GDP.

138
ECONOMICS
Nominal GDP = Pt * Qt
P refers to the price,
Q is the quantity, and
t indicates the year (usually the current year).

Real GDP = Pb * Qt, Where

b denotes the base year

8. Price Fluctuations and Terms

A. Inflation: Inflation is the quantitative measure of an increase in the

general price level of goods and services, decreasing the purchasing
power per currency unit.

B. Hyperinflation: It refers to unusually rapid inflation. This can lead to a

nation's monetary system breakdown in extreme cases.

C. Deflation: Deflation is a decrease in the general price level of goods

and services. Deflation occurs when the inflation rate falls below 0%.

D. Stagflation: Stagflation is the situation of an economy when inflation

and unemployment are at higher levels that are opposite to the
conventional situation. The conventional belief is that a trade-off exists
between inflation and the unemployment rate, according to the Phillips
Curve.

139
ECONOMICS
E. GDP Deflator: It is the measure of price behavior. It is the ratio of
GDP at its current price and GDP at a constant price, i.e., Nominal GDP to
Real GDP

F. Recession: This is a period during which aggregate output declines.

Two consecutive quarters of decrease in output signal a recession.

G. Depression: A prolonged and deep recession becomes a depression.

9. Types of Policies

A. Fiscal Policies: The government of a country uses fiscal policies to

control its revenues and expenditures to achieve economic objectives.
The two major instruments of Fiscal policy are taxation and government
spending. The changes in the above two components are expected to
bring out a difference in the aggregate demand, savings, investments,
and income distribution. Fiscal policy can be contractionary or
expansionary in nature.

B. Monetary policies: A country's Central Bank uses monetary policy to

control the money supply, often targeting an inflation rate or interest rate
to ensure price stability and general trust in the currency.
Monetary policy is maintained by changing the interest rate, or the
money banks must keep in the vault. Monetary policy can either be
expansionary or contractionary, where an expansionary policy increases
the total supply of money in the economy more rapidly than usual, and a
contractionary policy expands the money supply more slowly than usual
or even shrinks it.

140
ECONOMICS
10. Monetary Policy Tools -

A. Cash Reserve Ratio (CRR): It refers to the ratio of demand deposits,

time deposits, and cash-on-hand that commercial banks must maintain
with RBI. Lowering CRR will leave the banks with excess reserves for
making loans and would, therefore, increase the money supply.

B. Statutory Liquidity Ratio (SLR): This refers to the ratio of demand

deposits and time deposits that commercial banks must maintain in
cash, gold, or government securities. Like CRR, it determines how much
of their deposits commercial banks will have for making loans.

C. Repo Rate: Repo rate is the rate at which the central bank of a country
(Reserve Bank of India in the case of India) lends money to commercial
banks in case of any shortfall of funds. The repo rate is used by
monetary authorities to control inflation. In the event of inflation, central
banks increase the repo rate, which acts as a disincentive for banks to
borrow from the central bank. This ultimately reduces the money supply
in the economy and thus helps arrest inflation.

D. Reverse Repo Rate: Reverse repo rate is the rate at which a country's
central bank borrows money from commercial banks within the country.

141
ECONOMICS
It is a monetary policy instrument that can be used to control the money
supply in the country. An increase in the reverse repo rate means that
commercial banks will get more incentives to park their funds with the
RBI, thereby decreasing the money supply in the market.

E. Bank Rate: This is the rate at which RBI lends money to banks or
financial institutions. The Bank rate signals RBI's long-term view of the
economy and outlook for interest rates. If the bank rates were to
increase, banks would increase lending rates to their customers to
maintain their profit margins.

F. Open Market Operations: It refers to the selling and purchasing of

treasury bills and government securities by any country's central bank to
regulate the money supply in the economy.

Various Policy Rates by RBI (as of 10 January 2025)

SLR 18%

CRR 4%

Repo Rate 6.5%

Reverse Repo Rate 3.35%

Marginal Standing Facility 6.75%

Standing Deposit Facility 6.25%

Bank Rate 6.75%

142
ECONOMICS
11. Taxes

A. Direct Taxes: As the name suggests, these are taxes directly paid to
the government by the taxpayer. It is a tax directly applied to individuals
and organizations by the government, e.g., income tax, corporation tax,
wealth tax, etc. A direct tax cannot be shifted to another individual or
entity. The individual or organization upon which the tax is levied is
responsible for fulfilling the tax payment.

B. Indirect Taxes: These are applied to manufacturing or selling goods

and services. These are initially paid to the government by an
intermediary, who then adds the amount of the tax paid to the value of
the goods/services and passes on the total amount to the end user. It
can also be defined as a tax that increases the price of a good so that
consumers are paying the tax by paying more for the products.
Examples are sales tax, service tax, excise duty, etc. Unlike direct taxes,
indirect taxes can be shifted from one taxpayer to another.

12. Deficit

Fiscal Deficit: It is an economic phenomenon where a government's

total expenditures exceed the revenue that it generates (excluding
money from borrowings). Deficit differs from debt, which is an
accumulation of yearly deficits.

The components of fiscal deficit are:

Revenue: It includes the revenue collected from taxes imposed by the
central government, such as corporation tax, customs duties, excise
duties, GST, and other tax-related income.

143
ECONOMICS
It also includes taxable income from sources like interest receipts,
grants in aid, dividends, and receipts from Union Territories.

Expenditure: This includes the funds allocated by the government for

various purposes, including pension payments, salaries, infrastructure
development, healthcare, and other areas outlined in the budget. It
reflects the government’s spending patterns and priorities.

Primary Deficit: It is an amount by which a government's total

expenditure exceeds its total revenue, excluding interest payments on its
debt.

Primary Deficit = Fiscal Deficit— Interest Payment

The total borrowing requirement of the government includes the interest

commitments on accumulated debts. The primary deficit reflects the
extent to which such interest commitments have compelled the
government to borrow in the current period.

GST
The Goods and Services Tax (GST) is a comprehensive tax levy on
the manufacture, sale, and consumption of goods and services at a
national level.
A tax credit mechanism collects this tax on value-added goods and
services at each stage of sale or purchase in the supply chain. The
system allows the set-off of GST paid on the procurement of goods
and services against the GST, payable on the supply of goods or
services. However, the end consumer bears this tax as he is the last
person in the supply chain.

144
ECONOMICS
GST will likely improve tax collections and boost India's economic
development by breaking tax barriers between States and integrating
India through a uniform tax rate.

Balance of Payments (BOP)

The Balance of Payments shows the country’s transactions with the rest
of the world. It notes inflows and outflows of money and categorizes
them into different sections. The balance of payments, also known as
the balance of international payments, encompasses all transactions
between a country's residents and non-residents involving goods,
services, and income; financial claims on and liabilities to the rest of the
world; and transfers such as gifts. The different sections of the Balance
of Payments are:

Current Account Balance of Payments: It measures transactions for

goods and services. It measures goods, services, and investment
income inflow and outflow. The current account comprises the trade
balance (which is a trade in goods) and the balance of trade in services.
The main components of the current account are:
1. Trade in goods (visible balance)
2. Trade in services (invisible credit), e.g., insurance and services
3. Investment incomes, e.g., dividends, interest
4. Net transfers, e.g., remittances from abroad, international aid

Current Account Deficit: A measurement of a country's trade in which

the value of goods and services it imports exceeds the value of goods
and services it exports.

145
ECONOMICS
The current account includes net income, such as interest and dividends,
and transfers, such as foreign aid. However, these components
comprise a smaller percentage of the current account than exports and
imports. A current account deficit represents negative net sales abroad.
Developed countries like the United States often run current account
deficits, while emerging economies often run account surpluses.

Financial Account (Capital) Balance of Payments: The capital account

of the balance of payments measures the outflow and inflow of capital
into the economy. It considers the movement of short-term and long-
term capital and loan repayments. This includes:

1. Foreign direct investment

2. Purchase of securities by investors
3. Loans by international financial institutions in a floating exchange
rate.

Balance of Trade

The difference between a country's imports and exports is called the

balance of Trade. The balance of trade is the largest component of a
country's balance of payments. Debit items include imports, foreign aid,
domestic spending, and domestic investments abroad. Credit items
include exports, foreign spending in the domestic economy, and foreign
investments in the domestic economy. A country has a trade deficit if it
imports more than it exports; the opposite scenario is a trade surplus.

146
ECONOMICS
Foreign Direct Investment (FDI)

An investment made by a company or entity based in one country into a

company or entity based in another country. The investing company may
make its overseas investment in several ways: setting up a subsidiary or
associate company in a foreign country or acquiring shares of an
overseas company. An investing company may invest overseas in
several ways - either by setting up a subsidiary or associate company in
a foreign country, acquiring shares of an overseas company, or through
a merger or joint venture.

Name Role

Sanjay Malhotra RBI Governor

Shaktikanta Das Former RBI Governor

Minister of Finance and Corporate

Nirmala Sitharaman
Affairs

Minister of Commerce and

Piyush Goyal
Industry

Minister of Micro, Small and

Shri Jitan Ram Manjhi
Medium Enterprises

Minister of Railways,
Ashwini Vaishnaw Communications, Electronics, and
Information Technology

Shri Manohar Lal Minister of Power

Claudia Goldin Nobel Prize in Economics (2023)

147
ECONOMICS
Minister of New and Renewable
Prahlad Joshi
Energy

Daron Acemoglu, Simon Johnson

Nobel Prize in Economics (2024)
and James A. Robinson

Claudia Goldin Nobel Prize in Economics (2023)

Abhijit Banerjee Nobel Prize in Economics (2019)

Amartya Sen Nobel Prize in Economics (1998)

Adam Smith Father of Modern Economics

John Keynes Father of Macroeconomics

INTERVIEW TOPICS

1. Global Economic Trends:

The world economy is constantly in flux, with factors like trade disputes,
geopolitical tensions, and technological advancements creating a
dynamic landscape. Understanding these trends is vital for businesses
to navigate risks and opportunities. For MBA aspirants, grasping these
concepts is key to formulating global strategies.

Further reading on IMF: (https://www.imf.org/en/Publications/WEO)

2. International Trade:
International trade is crucial for an MBA graduate as it broadens their
understanding of global markets, enhances strategic decision-making
skills, and fosters cultural awareness.

148
ECONOMICS
It offers exposure to diverse economic environments, enabling
graduates to drive business growth, navigate international regulations,
and build competitive advantages in a globalized economy.

Further Reading: (https://www.oecd.org/en/data/insights/statistical-

releases/2024/08/International-trade-statistics--trends-in-second-
quarter-2024.html)

3. Sustainable Business Practices:

As environmental concerns become more pressing, sustainable
business practices are transitioning from a "nice-to-have" to a "must-
have." Companies are integrating green initiatives into their core
strategies, affecting everything from supply chain operations to product
development.

Harvard Business Review on Sustainability

(https://hbr.org/2020/01/what-sustainable-business-looks-like )

4. Digital Transformation in Companies:

Digital transformation is reshaping industries by integrating technology
into all areas of business. For an MBA aspirant, understanding how
technologies like AI and Big Data drive business efficiency and
innovation is crucial.

Deloitte insights on digital transformation:

(https://www2.deloitte.com/us/en/insights/focus/tech-trends.html)

149
ECONOMICS
5. Innovations in Financial Technology (Fintech):
Fintech is disrupting traditional financial services, offering new ways to
lend, save, and pay. For future business leaders, understanding these
innovations is key to the evolution of financial services.

Forbes on fintech predictions:

(https://www.forbes.com/sites/ronshevlin/2020/02/24/top-10-
fintechpredictions- for-2024/ )

6. Rise of the Gig Economy:

The gig economy is redefining the concept of work, emphasizing flexible
hours and autonomous employment. This shift presents new challenges
and opportunities for labour markets and organizational structures.

Brookings on the gig economy:

(https://www.brookings.edu/research/the-gig-economy-current-
knowledge andopen- issues/)

7. Corporate Social Responsibility (CSR):

Today's consumers and employees expect companies to act
responsibly. This means not only providing quality products and services
but also operating in a way that is ethical and sustainable.

Investopedia on CSR:
(https://www.investopedia.com/terms/c/corp-social-responsibility.asp)

150
ECONOMICS

8. Data Privacy and Cybersecurity:

In our digital world, data privacy and cybersecurity are increasingly
critical. Businesses must navigate the complexities of protecting
customer data while harnessing its value.

Cisco on cybersecurity:
(https://www.cisco.com/c/en/us/products/security/what-is-
cybersecurity.html)

9. Trade Agreements and Globalization:

Trade agreements shape the flow of goods and services across borders,
impacting economies and industries. MBA candidates need to
understand how these agreements influence global business practices.
Also, the recent spike in regional trade agreements and its effects on
globalization need to be understood.

10. Women in Leadership:

Despite progress, women remain underrepresented in leadership roles.
Exploring the barriers and strategies for increasing gender diversity in
the C-suite is a crucial topic for discussion.

Catalyst on women in leadership:

(https://www.catalyst.org/research/women-in-management/)

151
ECONOMICS
Some other topics:

1. How are current inflation trends affecting the Indian economy, and
what measures is the RBI taking to control it?
2. What are the primary drivers of India's economic growth, and what
challenges does it face in the post-pandemic era?
3. What are the key highlights of the Union Budget 2025, and how do
they align with India's fiscal policy goals?
4. How are global economic trends, such as the Russia-Ukraine conflict
and US interest rate hikes, impacting the Indian economy?
5. What are the implications of India's recent trade agreements, and
how are global trade tensions affecting its export sectors?
6. How has the rise of digital payments and fintech impacted financial
inclusion and the traditional banking system in India?
7. What factors are contributing to the surge in Indian startups and
unicorns, and what challenges do they face in the current economic
environment?
8. How is India's commitment to net-zero emissions influencing its
economy, particularly in the renewable energy and green technology
sectors?
9. How are government policies affecting the agricultural sector, and
what role is agri-tech playing in transforming Indian agriculture?
10. What are the current trends in NPAs and banking sector reforms, and
how is the RBI approaching the regulation of cryptocurrencies?
11. How are unemployment trends and job creation dynamics being
influenced by automation and AI in India?
12. How are urbanization trends and government policies like PMAY
affecting real estate development and urban infrastructure in India?

152
INTERVIEW TOPICS
BY DHRUVA
THE HR CLUB OF IIM UDAIPUR
 INTERVIEW TOPICS
GENERAL TOPICS:

The Future of Fintech in India:

Innovations, regulations, and market trends : Fintech is the fusion of
technology with financial services, revolutionizing how we manage money,
make payments, and access banking. It includes innovations like digital
payments, mobile banking, and blockchain, improving efficiency,
accessibility, and user experience.

Fintech makes financial services more convenient, secure, and inclusive,

allowing people to perform transactions and manage finances from
anywhere. By breaking down traditional barriers, it empowers individuals
and businesses, driving global financial inclusion and transforming the way
we interact with money. From peer-to-peer lending to cryptocurrencies,
fintech is reshaping the future of finance in exciting ways.
www.centralbank.ie

Paternity Leave:
Though Indian companies are increasingly waking up to the need to
introduce paternity leave policies, the question is: are they doing enough?
Paternity leave is a benefit given to a male employee on becoming a
parent.
A standard benefit across most companies, this policy was introduced in
India a decade ago by technology companies who wanted to attract talent
and be known for their HR practices. This benefit is now also prevalent in
government and public sector companies, which offer up to a maximum of
15 days of leave
https://www.thehindu.com/news/cities/Madurai/there-is-need-for-paternity-leave-legislation-in-india-says-
hc/article67220018.ece
https://timesofindia.indiatimes.com/life-style/relationships/work/Time-for-paternity-leave-
policies/articleshow/47954505.cms

154
 INTERVIEW TOPICS
Role of India in Electric Vehicles (EVs):
India is emerging as a key player in the global electric vehicle (EV)
revolution, driven by its commitment to sustainability and reducing carbon
emissions. The government is promoting EV adoption through initiatives
like FAME (Faster Adoption and Manufacturing of Hybrid and Electric
Vehicles), tax incentives, and infrastructure development, such as charging
stations. India's focus on indigenous manufacturing, supported by
companies investing in EV production and battery technology, is positioning
the country as a hub for affordable EV solutions. With growing consumer
demand and policy support, India is set to play a vital role in advancing the
global transition to electric mobility.
https://timesofindia.indiatimes.com/auto/policy-and-industry/role-of-indias-ev-sector-in-reducing-
pollution/articleshow/105925273.cms

Cybersecurity:
Emerging threats and strategies for protection: Cybersecurity is like a
digital shield, protecting your data from cybercriminals who try to steal,
corrupt, or disrupt it. In our tech-driven world, where almost everything is
online, ensuring the safety of personal information, financial records, and
business secrets is crucial.
Cybersecurity defends against threats like hacking, malware, and phishing
attacks through tools like firewalls, encryption, and secure passwords. As
cyber threats grow smarter, so does the science of cybersecurity, evolving
constantly to outsmart cyber attackers and keep our digital lives safe and
sound. It’s a race of wits between hackers and defenders in a virtual
battlefield!
https://www.ncsai.in/

155
 INTERVIEW TOPICS
Generative AI:
Generative AI is an exciting technology that enables machines to create
new content, ranging from images and music to text and videos. By learning
patterns from vast amounts of data, it can generate unique and creative
outputs that mimic human-like innovation.
This powerful tool is revolutionizing industries such as entertainment,
design, and content creation, making it easier to produce original work with
minimal human input. Whether it's generating art, drafting articles, or even
composing music, generative AI is pushing the boundaries of creativity and
reshaping the future of how we create, collaborate, and innovate.
https://generativeai.net/
https://pmc.ncbi.nlm.nih.gov/articles/PMC8285156/

Role of Technology in Indian Agriculture :

Technology is revolutionizing industries across the globe, and agriculture in
India is no exception. Cutting-edge innovations like AI, IoT, big data, and
automation are reshaping farming practices, bringing unprecedented
efficiency and precision to the field. From drones that monitor crop health
to soil sensors that guide irrigation, technology is empowering farmers to
make informed, data-driven decisions.
Machine learning algorithms predict weather patterns, while blockchain
ensures transparency in the supply chain. This technological surge is
transforming Indian agriculture into a more sustainable, productive, and
profitable sector, enabling farmers to thrive in an increasingly competitive
global market.
eos.com/agriculture

156
 INTERVIEW TOPICS
STAR → Situation, Task, Action, Result
The STAR method is a structured framework used to effectively answer
behavioural interview questions by detailing a Situation, Task, Action, and
Result.

Situation involves describing a specific event, challenge, or project you

encountered. This sets the context for your story and should include details
such as when and where it occurred, who was involved, and the goal or
objective. For instance, you might describe leading a team on a tight-
deadline project or resolving a customer complaint.

Task focuses on your specific responsibilities or objectives in that

situation. It explains your role, what was expected of you, and the
challenges or goals you needed to achieve. The task may overlap with the
situation in some cases, but it is essential to clarify what your particular role
entailed. For example, you could describe being responsible for
coordinating a team and ensuring deliverables met the client’s
requirements.

Action component highlights the steps you took to address the situation or
task. This is where you detail the strategies, methods, and tools you used to
overcome challenges or achieve your objectives. Be specific and provide
examples of what you did, such as delegating tasks, communicating with
stakeholders, or implementing new processes. For instance, you might
describe how you set up daily check-ins to track progress and used a
project management tool to streamline collaboration.

157
INTERVIEW TOPICS
Result focuses on the outcome or impact of your actions. This should
demonstrate tangible, measurable achievements and highlight your
contribution to the success of the situation. The result should clearly
illustrate the difference your efforts made, such as increasing sales,
improving efficiency, or completing a project ahead of schedule. For
example, you might explain how your actions led to a 15% increase in
client sales or established a long-term partnership with a key customer.

158
INTERVIEW TOPICS
INTERVIEW QUESTIONS:

Tell me something about yourself.

Tell me something that is not on your CV.
Introduce yourself in 30 seconds.
Which one word would describe you the best?
Use 3 adjectives to describe yourself.
How would your friends describe you?
Why MBA? (If Fresher – Why not gain some work-ex, If Work-Ex – Why
not go for an executive 1-year MBA)
What value will you add to the classroom?
Why do you want to do marketing/finance/consulting/operations/ HR?
What other calls do you have? If you convert X institute, would you still
choose our institute over X?
What other calls have you got?
Which discipline in the MBA interests you the most? Cite some
examples of why you think you might be a good fit for that discipline.
What are your strengths and weaknesses?
Tell us about a failure of yours in college/work and how you’ve
improved since then.
What is the difference between a Leader and a Manager with an
example?
Are you a Leader or a Team Player?
Where are you from? Tell us something interesting about this place.
How important do you feel is social responsibility nowadays?
Did you ever face any ethical dilemma while you were working? How
did you deal with it?

159
INTERVIEW TOPICS
Describe the roles and responsibilities, and a project that you were
working at that time in the firm.
Have you ever tackled any situation where you had limited resources
and you had to manage with it? How?
What adversity do you think you’ll face the most while pursuing your
MBA?

160
GENERAL AWARENESS

BY PUBLIC POLICY GROUP

OF IIM UDAIPUR
GENERAL AWARENESS
FINANCE NEWS

1. India’s Manufacturing PMI: Key Highlights

PMI at 12-Month Low: The Manufacturing PMI dropped to 56.4 in
December 2024, the weakest in a year, reflecting slower but still
positive growth in the sector.
Domestic and Export Trends: Growth in domestic orders was the
slowest in 2024, but export orders grew at the fastest pace since
July, driven by strong international demand.
Cost and Pricing: Input costs for labor, materials, and logistics rose
moderately, while selling prices increased significantly, reflecting
manufacturers’ focus on managing margins.
Employment Gains: Employment grew for the 10th consecutive
month, with December witnessing the fastest hiring rate in four
months, showing optimism in production activity.
Inventory Management: High sales volumes led to the sharpest
decline in post-production stocks in seven months, despite slower
new order growth.
Outlook for 2025: Manufacturers are optimistic about higher output
in 2025, supported by investments and demand, but inflation and
competition remain key challenges.

2. FPI Outflows in December: A Mixed Bag for Indian Stocks

Foreign investors pulled out ₹15,569 crore from Indian stocks,
marking a noticeable shift in investment trends.
Major sectors affected by the outflows: Oil, gas, financials, and gas
distribution. However, IT stocks saw continued investment with
₹2,296 crore in inflows.

162
GENERAL AWARENESS
Reasons Behind the Shift:
Profit-Taking: After strong gains, foreign investors sold shares in oil
companies (HPCL, BPCL) to lock in profits.
Subsidy Concerns: The gas distribution sector faced investor caution
due to potential losses from government subsidies.
Global Economic Concerns: A slowdown in China, weaker global
growth, and falling oil prices prompted caution among investors.
IT as a Safe Haven: With the dollar strengthening, foreign investors
viewed IT stocks as a safer, stable investment option, leading to
inflows.
Impact on the Market:
Sector-Specific Trends: IT and healthcare sectors performed better,
attracting foreign inflows despite the broader market dip.
Market Sentiment: While December saw mixed investor activity, IT
and select sectors like healthcare remained resilient.
2024 Outlook: The future of the Indian stock market remains
uncertain, as global and local factors continue to influence investor
decisions.

3. RBI Keeps Repo Rate Unchanged at 6.5% Amid Inflation and Slowing
Growth
Key Highlights from the December 6 Policy Review:
The Monetary Policy Committee (MPC) of the Reserve Bank of India
(RBI) decided to maintain the repo rate at 6.5% for the 11th
consecutive time, despite concerns over inflation and economic
growth slowdown.
Cash Reserve Ratio (CRR) for banks was reduced by 50 basis points
to 4%, after nearly 4 years, to support growth amidst tight liquidity.

163
GENERAL AWARENESS
Reasons Behind the Decision:
Inflation Control: Despite rising inflation (6.2% in October), the RBI is
committed to aligning inflation with its 4% target.
Slowing Growth: Real GDP growth for the July-September quarter
slowed to 5.4%, below the RBI’s projection of 7%. Growth forecast for
2024-25 downgraded from 7.2% to 6.6%.
Food Inflation: High food prices, especially vegetables, have
contributed to inflation. However, a correction is expected by Q4 of
2024-25.
Key Economic Risks and Forecasts:
Adverse Weather and Geopolitical Uncertainty: These factors may
put upward pressure on inflation.
Liquidity Support: The reduction in CRR aims to ease potential
liquidity pressures, with an expected ₹1.16 lakh crore to be released
into the banking system.
Policy Adjustments for Attracting Capital Inflows:
Interest Rate Ceilings Raised: The RBI increased the interest rate
ceiling on FCNR (B) deposits to attract more capital inflows, effective
until March 31, 2025.
Governor’s Closing Remarks:
Prudence is Key: RBI Governor Shaktikanta Das emphasized a careful
and practical approach, balancing inflation control with growth
support, given the complex economic environment.

4. RBI Predicts 6.6% GDP Growth for FY25, Highlights Economic

Resilience
Key Insights from RBI’s Financial Stability Report (FSR) – December
2024:

164
GENERAL AWARENESS
Indian Economy’s Resilience: The Indian economy is projected to grow
at 6.6% in FY25, driven by:
A revival in rural consumption.
Increased government spending and investment.
Strong services exports.
Real GDP Growth Moderation:
During H1 2024-25, GDP growth moderated to 6%, down from 8.2% in
H1 2023-24 and 8.1% in H2 2023-24.
However, growth is expected to recover in Q3 and Q4 of 2024-25 due
to increased domestic consumption and service exports.

Financial System Stability:

Bank Health: Scheduled Commercial Banks (SCBs) are showing strong
performance:
High profitability, with return on assets (RoA) and return on equity
(RoE) at decade-high levels.
Non-performing assets (NPAs) have decreased, with the GNPA ratio
at a multi-year low.
Capital and liquidity buffers are adequate, ensuring resilience even in
adverse scenarios.
Stress Test Results: Banks, mutual funds, and clearing corporations
have passed stress tests, confirming their ability to withstand
financial shocks.

Inflation Outlook:
Disinflationary Drivers:
A bumper kharif harvest and strong rabi crop prospects are expected
to soften food grain prices.

165
GENERAL AWARENESS
Risk Factors:
Extreme weather events pose risks to food inflation.
Geopolitical conflicts and global supply chain disruptions may raise
commodity prices.

5. India's Strategic Leap in the Semiconductor Industry: Tata-Tesla

Deal Paves the Way
India's Strategic Growth in Semiconductor Sector: Tata Electronics'
deal with Tesla to supply semiconductor chips is a major milestone,
positioning India as a reliable player in the global semiconductor
value chain.
Legacy Chips as India’s Strength: While advanced chips dominate
global markets, India’s focus on manufacturing legacy chips offers
an immediate opportunity for growth and self-reliance in the
semiconductor industry.
Global Shift in Chip Supply Chains: Amid geopolitical tensions,
including the US-China trade war, countries are looking to diversify
semiconductor sources, and India’s growing chip manufacturing
capacity enhances its geopolitical leverage.
Government Incentives and Investment: The Indian government’s
$10 billion push into semiconductor manufacturing through the
Production-Linked Incentive (PLI) scheme supports the country’s
push towards digital sovereignty.
Tesla’s Expansion Beyond China: Tesla’s deal with Tata reflects a
broader trend of Western companies seeking alternative suppliers
for critical components, particularly as they reduce dependency on
China for high-tech products.

166
GENERAL AWARENESS
Long-Term Global Impact: India's semiconductor focus, particularly
in legacy chips, can help diversify global supply chains, making India
a key player in industries reliant on semiconductor technology, such
as automobiles, smartphones, and defense systems.

6. Gautam Adani's Troubles: U.S. Indictment and SEBI Probe Add to His
Woes
U.S. Court Indictment: Gautam Adani was accused of orchestrating
a $250 million bribery scheme, triggering a sharp drop in his
companies' stock prices.
Stock Market Impact: Adani’s wealth was slashed by $12.4 billion as
stocks plummeted by up to 20%.
SEC Involvement: The U.S. Securities and Exchange Commission
(SEC) issued a summons to Gautam and Sagar Adani over bribery
accusations related to solar power contracts.
Legal Complications in India: Petition filed in the Indian Supreme
Court to include U.S. legal documents in a stock manipulation case,
strengthening the SEBI investigation.
SEBI Probe Intensified: SEBI looking into potential false disclosures
by the Adani Group, particularly regarding the U.S. investigations.
Financial Strain: Global banks reconsidering fresh credit to the Adani
Group, with rating agencies downgrading key companies' outlook.
International Setback: Kenyan President cancels $700 million power
transmission contract and airport expansion deal with the Adani
Group, hurting expansion plans in Africa.

167
GENERAL AWARENESS

7. Nvidia Invests $1B in AI Start-Ups in 2024

Investment Surge: In 2024, Nvidia invested $1 billion in AI companies,
marking a significant increase from the previous year’s $872 million.
This money supported 50 start-up funding rounds and several
corporate deals.
Key Players: The bulk of the investments targeted AI companies with
high computing needs, many of which are Nvidia's customers. Big
names like Microsoft, Amazon, and Google are also exploring
alternatives to Nvidia’s chips.
Strategic Acquisitions: Nvidia’s acquisitions in 2024 included AI
software companies such as Run:ai, Nebulon, OctoAI, and Deci. It is
also backing high-profile start-ups like OpenAI and Cohere.
AI Ecosystem: Nvidia’s investments span various sectors, including
medical tech, search engines, and robotics. They are also expanding
their start-up incubator, Inception, to nurture early-stage companies.
Corporate Growth: Nvidia’s market capitalization surged to $3 trillion,
driven by high demand for its GPUs. This helped power the S&P 500
index to impressive returns.
Antitrust Concerns: Nvidia’s extensive investments have raised
questions about its dominance in the AI sector, with regulators in the
US, Europe, and China scrutinizing its moves.
Recent Deals: Nvidia’s most recent investment was in Elon Musk’s
xAI. Other notable investments include funding CoreWeave, a cloud
computing service valued at $35 billion, and providing $160 million to
Applied Digital, which saw a 65% surge in its stock price.

168
GENERAL AWARENESS

8. Air India Completes Merger with Vistara, Strengthening its Position

Merger Announcement: Air India and Vistara have officially merged,

forming a unified full-service airline under the Air India brand.
Singapore Airlines, a previous investor in Vistara, now holds a 25.1%
stake in the newly expanded Air India Group.
Expanded Fleet and Network: The merged entity operates over 5,600
weekly flights to 90 domestic and international destinations with a
fleet of 208 aircraft. The expanded Air India Group now flies over
8,300 weekly flights across 312 routes using 300 aircraft.
Customer and Employee Integration: Over 6,000 Vistara employees
have joined Air India, and 4.5 million Club Vistara loyalty accounts
have been transferred to Air India's revamped loyalty program,
Maharaja Club.
Strategic Investments: Tata Group’s Vihaan. AI transformation plan
includes investing in 500 new aircraft, a $400 million interior retrofit,
and establishing new training and maintenance facilities to
strengthen Air India’s operations.

SIA’s Commitment: Singapore Airlines emphasized its ongoing

commitment to India’s aviation market, highlighting its strategic
partnership with Tata Group to support the growth of Air India.
Flight Rebranding: Vistara flights now operate under the Air India code,
ensuring a smooth transition for customers while retaining some
familiarity with the former Vistara codes.

169
GENERAL AWARENESS
BUSINESS AND ECONOMICS NEWS

1. National Stock Exchange of India expands co-location capacity

The National Stock Exchange of India (NSE), the country's largest
bourse, said it had expanded the capacity of its co-location data center
by more than 200 racks, which house servers and storage devices. A co-
location facility lets brokers set up servers within a stock exchange,
giving them quicker and easier access to price-sensitive information and
faster connectivity. NSE said it now has the capacity for more than 1,200
racks, making it one of the largest co-location facility providers in the
world. To meet high demand, the NSE plans to add another 300 racks by
the end of the first quarter of fiscal year 2025-26, and if the demand
sustains, it will add about 2,000 racks over the next two years, the
exchange said.

2. India forecasts 2024/25 economic growth of 6.4%, the slowest in

four years.
India's annual GDP growth is forecast at 6.4% for the fiscal year ending
March 2025, the slowest in four years and below the government’s initial
projection of 6.5%-7%, driven by weaker manufacturing and subdued
corporate investment. The National Statistics Office’s (NSO) projection
follows disappointing economic indicators in late 2024, including high
inflation, a record trade deficit, and anemic capital flows. The Reserve
Bank of India also lowered its growth forecast to 6.6% from 7.2%. Private
consumption, accounting for 58% of GDP, is expected to grow 7.3%,
while private investment growth slows to 6.4%.

170
GENERAL AWARENESS
Farm output growth, supported by a robust monsoon is projected at
3.8%, up from 1.4% in the prior year. Government spending is estimated
to increase by 4.1%.

3. Microsoft will invest $3 billion in India to expand its AI and cloud

capacity.
Microsoft will invest $3 billion over two years to expand its Azure cloud
and AI capacity in India, marking its most significant investment. In
addition to a recently announced $80 billion investment in AI-enabled
data centers for fiscal 2025, this outlay aims to leverage India’s tech
talent and low costs to enhance profitability. CEO Satya Nadella
highlighted India’s significant contributions to Microsoft’s AI initiatives,
including GitHub Copilot, which has achieved a $2 billion annual run
rate. India, the second-largest GitHub developer community, is projected
to become the largest by 2028. Microsoft plans to train 10 million
Indians in AI by 2030, having upskilled 2.4 million in 2023. Nadella’s
keynote in Bengaluru drew hundreds of attendees, underscoring his
popularity.

4. US to end restrictions on Indian nuclear entities to boost energy ties.

The U.S. is removing restrictions on Indian nuclear entities to strengthen
energy ties and advance a landmark 2007 nuclear deal, National Security
Advisor Jake Sullivan announced during his visit to New Delhi. The move
aims to facilitate civil atomic cooperation by addressing regulatory
barriers and long-standing frictions. Since the deal was signed under
President George W. Bush, progress has been hindered by India’s
liability laws, which place accident costs on plant manufacturers instead
of operators. The U.S. Department of

171
GENERAL AWARENESS
Commerce’s restricted list still includes several Indian nuclear entities.
This development could revive stalled plans to build six U.S. nuclear
power plants in India, which were agreed upon in 2019, and help India
achieve its target of 20,000 MW of nuclear power capacity by 2030.

5. India's FX reserves dropped to an eight-month low amid rupee

pressure.
According to RBI data, India's foreign exchange reserves fell for the
fourth consecutive week, reaching an eight-month low of $640.28 billion
in December. The reserves declined by $4.1 billion in the reported week,
following a $13.7 billion drop over the prior three weeks. The rupee hit an
all-time low of 85.8075 last week, weighed by slowing growth, a widened
trade deficit, and a strong U.S. dollar amid hawkish Federal Reserve
policies. The RBI intervened by selling dollars to curb rupee volatility,
which settled at 85.77, marking its ninth weekly decline.

6. Rupee hits lifetime low as dollar bounces in January.

The Indian rupee dropped to a record low of 85.8425 per U.S. dollar on
8th January, surpassing its previous low of 85.84, amid a stronger dollar
driven by robust U.S. economic data. Resilient labor market figures and
increased activity in the U.S. service sector bolstered the dollar index,
which rose 0.3%, and pushed up U.S. Treasury yields. Asian currencies
also weakened, with the Indonesian rupiah and offshore Chinese yuan
leading losses. Traders reported that dollar sales by state-run banks,
likely on behalf of the RBI, helped moderate the rupee's decline.

172
GENERAL AWARENESS

7. FDI in India surging as global investors see top destination

India is witnessing a surge in FDI inflows, with $42.13 billion received
between January and September 2024, marking a 42% increase from
$29.73 billion in the same period last year, according to Commerce and
Industry Minister Piyush Goyal. Total FDI for 2023-24 reached $71.28
billion, with key sectors like services, IT, telecommunications, and
pharmaceuticals attracting significant investment. Monthly FDI averages
over $4.5 billion in 2024 despite global uncertainties. India’s strong
domestic market, skilled workforce, and business-friendly policies drive
investor interest, crucial for infrastructure growth and economic stability.

8. India, China to Germany and UK: How major economies performed in

2024
As 2024 concludes, the global economy demonstrates resilience amid
subdued growth. The IMF projects global GDP growth at 3.3% in 2025,
with emerging Asia driving expansion. India, the fifth-largest economy
($3.89 trillion GDP), grew at 7% despite inflationary pressures and
consumption slowdowns. The US outperformed G7 peers, but high
borrowing costs challenged manufacturing. China’s GDP grew 4.8%,
hindered by weak domestic demand and property sector struggles.
Germany contracted 0.2%, reflecting weak trade and investment, while
Japan’s growth was revised to 0.3% due to supply chain disruptions, with
recovery anticipated in 2025. The UK economy stagnated in Q3 but is
forecasted to grow by 1.7% in 2025. Globally, inflation remains a concern,
though progress in addressing it provides cautious optimism for the year
ahead.

173
GENERAL AWARENESS

9. The India-EFTA trade pact may come into force before the end of
2025
India’s Free Trade Agreement (FTA) with the European Free Trade
Association (EFTA) is progressing rapidly, aiming for implementation by
the end of 2025, according to Commerce Minister Piyush Goyal. The
Trade and Economic Partnership Agreement (TEPA), signed on March 10,
2024, includes a $100 billion investment pledge over 15 years and duty
concessions on Swiss watches, chocolates, and diamonds. India will
phase out customs duties on EFTA products over a decade. The deal is
projected to create 1 million jobs. While awaiting parliamentary
ratifications, India remains firm on ensuring equitable terms in all FTAs,
including ongoing talks with the UK and EU.

10. Looking at resuming crude oil supply to India, expanding trade

basket: Iran
Iran seeks to resume crude oil supplies to India and expand trade,
particularly in the petrochemical sector, through the Chabahar port.
Despite the US sanctions, Iran and India are exploring ways to overcome
the challenges. Iran also emphasizes the importance of counter-terrorism
cooperation, especially in light of regional instability in West Asia,
including Syria. The official highlighted the potential in tourism and
agriculture for non-oil trade and reaffirmed Iran's stance on Palestine and
Afghanistan. Iran’s growing ties with China were also noted, extending
beyond oil trade.

174
GENERAL AWARENESS

POLICY NEWS

1. Union Cabinet approves the Unified Pension Scheme (UPS)

Union Cabinet, chaired by Prime Minister Narendra Modi, approved
the Unified Pension Scheme (UPS) on August 24, 2024. This scheme
ensures an assured pension amounting to 50% of the average basic
pay drawn over the last 12 months before superannuation for
employees with a minimum qualifying service of 25 years. For those
with service periods between 10 and 25 years, the pension will be
proportionately adjusted. Additionally, the UPS guarantees a family
pension set at 60% of the employee's pension immediately before
their demise, and a minimum assured pension of ₹10,000 per month
upon superannuation after at least 10 years of service.
To address inflation, the scheme incorporates inflation indexation
for both the assured pension and family pension, with Dearness
Relief based on the All India Consumer Price Index for Industrial
Workers (AICPI-IW), similar to provisions for serving employees.
Furthermore, retirees will receive a lump sum payment at
superannuation, in addition to gratuity, calculated as 1/10th of
monthly emoluments (basic pay plus Dearness Allowance) for every
completed six months of service; this payment does not reduce the
pension amount. The UPS is set to take effect from April 1, 2025,
and is expected to benefit approximately 23 lakh Central
Government employees. State Governments have the option to
adopt this scheme, potentially extending its benefits to over 90 lakh
employees nationwide.

175
GENERAL AWARENESS
2. NITI Aayog Launches ‘Sampoornata Abhiyan’ to Achieve Key
Developmental Milestones
NITI Aayog has initiated the ‘Sampoornata Abhiyan’, a focused
three-month campaign running from July 4 to September 30, 2024,
targeting the saturation of six critical indicators in 112 Aspirational
Districts and 500 Aspirational Blocks nationwide. The campaign
emphasizes maternal health, child immunization, soil health, school
infrastructure, and financial support to Self-Help Groups (SHGs).
Key performance indicators include early antenatal care
registration, regular supplementary nutrition for pregnant women,
comprehensive child immunization, distribution of Soil Health
Cards, provision of functional electricity and timely textbooks in
schools, and disbursement of revolving funds to SHGs. Districts and
blocks are developing action plans, conducting outreach activities,
and monitoring progress monthly to ensure effective
implementation. This initiative builds upon the successes of the
Aspirational Districts Programme (ADP) and the Aspirational Blocks
Programme (ABP), aiming for rapid and sustainable development in
India’s most underserved regions.

3. Cabinet Extends PM JI-VAN Yojana by Five Years, Allocates

Additional Funds
On August 9, 2024, the Union Cabinet approved amendments to the
Pradhan Mantri JI-VAN Yojana, extending its implementation
timeline by five years until 2028-29. The scheme, which focuses on
converting biomass to ethanol, will now include advanced biofuels
produced from lignocellulosic feedstocks such as agricultural and
forestry residues, industrial waste, synthesis gas, algae, and more.

176
GENERAL AWARENESS
Additionally, “bolt-on” plants and “brownfield projects” are now
eligible to leverage their experience and improve viability.
The Cabinet has also approved an additional investment of ₹ 1,969
crore into the program. To promote multiple technologies and
feedstocks, preference will be given to project proposals featuring
new technologies and innovations in the sector. The scheme aims
to provide remunerative income to farmers for their agricultural
residue, address environmental pollution, create local employment
opportunities, and contribute to India’s energy security and self-
reliance. It also supports the development of advanced biofuel
technologies and promotes the Make in India Mission, aiding in
achieving India’s ambitious target for net-zero greenhouse gas
emissions by 2070.

4. Cabinet Approves BioE3 Policy to Propel Biomanufacturing

Revolution
The Union Cabinet, has approved the BioE3 (Biotechnology for
Economy, Environment, and Employment) policy, aiming to foster
high-performance biomanufacturing in India. This initiative focuses
on strategic sectors such as high-value bio-based chemicals,
biopolymers, enzymes, smart proteins, functional foods, precision
biotherapeutics, climate-resilient agriculture, carbon capture and
utilization, and marine and space research. The policy seeks to
support innovation-driven research and development, expedite
technology commercialization through the establishment of
biomanufacturing and bio-AI hubs, and promote sustainable growth
via a circular bioeconomy.

177
GENERAL AWARENESS
Union Ministers emphasized that this “bio-revolution” is expected to
generate numerous job opportunities in biotechnology and
biosciences, aligning with government initiatives like the 'Net Zero'
carbon economy and ‘Lifestyle for Environment.’ The BioE3 policy
aims to position India as a global leader in biotechnology, driving
sustainable and innovative solutions to address challenges such as
climate change, food security, and human health.

5. Supreme Court: Private Properties Not Automatically “Community

Resources”
In a landmark judgment, the Supreme Court of India ruled that
private properties cannot automatically be classified as “material
resources of the community” under Article 39 (b) of the Constitution.
Chief Justice D.Y. Chandrachud, leading the majority, clarified that
such an interpretation would enforce an outdated economic model
prioritizing state control over private ownership, inconsistent with
the current economic framework. The court emphasized that any
decision to classify private property as a community resource must
consider its nature, scarcity, and community impact.
This ruling overturned earlier decisions, including Justice Krishna
Iyer’s 1977 dissent in the Ranganath Reddy case, which allowed
broader state powers over private resources. The judgment
underscores India’s shift from state-controlled economic policies to
liberalization, ensuring a balanced approach between public welfare
and private property rights.

6. Supreme Court Affirms Accessibility as a Fundamental Right for

Disabled Persons
On November 8, 2024, the Supreme Court of India declared that

178
GENERAL AWARENESS
accessibility for disabled individuals is a fundamental human right,
emphasizing the nation’s failure to provide essential services and
environments for the differently abled. Chief Justice D.Y. Chandrachud
highlighted disparities, noting that while Delhi operates 3,775 low-floor
wheelchair-accessible buses, Tamil Nadu has only 1,917. Additionally,
newer facilities like Mumbai’s Andheri Metro Station meet accessibility
standards, whereas older establishments, such as the Bombay Art
Gallery, lack basic amenities like accessible restrooms.
The Court criticized societal neglect of the emotional and relational
needs of persons with disabilities, particularly regarding access to
love, intimacy, and privacy. Based on a report from the Centre for
Disability Studies at NALSAR University of Law, the Court found that
existing accessibility standards under the Rights of Persons with
Disabilities Rules are often non-mandatory, leading to poor
compliance. Consequently, the government has been directed to
establish mandatory accessibility standards within three months to
ensure equal rights and opportunities for disabled individuals.

7. India Launches ₹2,481 Crore National Mission on Natural Farming

The Indian government has launched the National Mission on
Natural Farming (NMNF), a centrally sponsored initiative with a total
outlay of ₹2,481 crore. The mission, to be implemented in 2025-26,
aims to promote chemical-free and climate-smart agriculture by
covering 7.5 lakh hectares through the development of 15,000
clusters. Each cluster will comprise 50 or more farmers managing at
least 50 hectares of land. Farmers adopting natural farming
practices will receive financial assistance of ₹15,000 per hectare
annually for three years to establish on-farm input production
infrastructure.

179
 The NMNF seeks to reduce cultivation costs by decreasing
dependency on purchased inputs and rejuvenating soil health and
fertility. It also aims to enhance resilience against climate risks
such as waterlogging, floods, and droughts. To facilitate this, the
government has launched a web portal for implementation
frameworks, resources, progress tracking, and farmer registration.
Training programs for farmers and experts are being conducted,
and 15,000 Bhartiya Prakritik Kheti Bio-inputs Resource Centres will
be established to ensure access to essential bio-resources.

8. Cabinet Approves ‘One Nation, One Election’ Bills

On December 12, 2024, the Union Cabinet approved two bills aimed
at implementing the ‘One Nation, One Election’ initiative, which
seeks to synchronize elections for the Lok Sabha and state
assemblies. The Constitution (One Hundred and Twenty-Ninth
Amendment) Bill, 2024, proposes necessary constitutional
amendments, while the Union Territories Laws (Amendment) Bill,
2024, aims to align election schedules in Delhi, Puducherry, and
Jammu & Kashmir.
The bills were introduced in the Lok Sabha on December 17, 2024,
following a division vote where 269 members supported the move
and 198 opposed it. The government has expressed openness to
referring the bills to a Joint Parliamentary Committee for detailed
examination. The proposal has sparked debate, with proponents
citing benefits like reduced election costs and improved
governance, while opponents express concerns over potential
impacts on federalism and regional representation.

180
GENERAL AWARENESS
9. India Introduces Classification Formula for Green Steel
India’s Ministry of Steel has announced a new system to classify
‘green steel’ based on its carbon dioxide emissions per metric tonne
of finished steel. Steel with emissions below 2.2 tonnes of CO₂ per
tonne is designated as “green steel.” Within this, “five-star green-rated
steel” includes emissions below 1.6 tonnes, while “three-star green-
rated steel” covers emissions between 2 and 2.2 tonnes. These
thresholds will be reviewed every three years.
As the world’s second-largest steel producer, India aims to
decarbonize its steel industry in line with its 2070 net-zero emission
targets. The government is also considering mandating the use of
green steel in public infrastructure projects to promote sustainability
and reduce industrial carbon footprints.

SCIENCE AND TECHNOLOGY NEWS

Nobel Prize in Chemistry Awarded
Breakthrough in Protein Structure Prediction
The 2024 Nobel Prize in Chemistry was awarded to Demis Hassabis,
John Jumper, and David Baker for their pioneering work in protein
structure prediction and design. Hassabis and Jumper, both from
Google DeepMind, developed AlphaFold, an AI model that accurately
predicts protein structures, solving a long-standing challenge in
molecular biology.
Accelerating Drug Discovery
AlphaFold’s ability to predict protein structures has significantly
accelerated drug discovery processes. By providing insights into
protein folding, researchers can develop targeted therapies more
efficiently, potentially leading to treatments for diseases such as
Alzheimer’s and cancer.

181
GENERAL AWARENESS
Computational Protein Design
David Baker, from the University of Washington, was recognized for
his contributions to computational protein design. His work involves
creating novel proteins with specific functions, which can be applied
in various fields, including medicine and nanotechnology.
Global Impact
These advancements have broad implications, offering solutions to
global challenges by enabling the design of enzymes that can
degrade plastics and the development of new materials with unique
properties.

OpenAI’s o1 Model Full Release

Enhanced Reasoning Capabilities
OpenAI released its o1 model, designed to enhance reasoning
capabilities in AI applications. Unlike previous models, o1 spends
more time deliberating before responding, allowing it to solve
complex tasks in mathematics and coding.
Developer Integration
The o1 model was made available through OpenAI’s API, enabling
developers to integrate advanced reasoning capabilities into their
applications. This release is part of OpenAI's efforts to provide more
robust tools for complex problem-solving.
Improved Accuracy
The o1 model demonstrates a 34% reduced error rate compared to
its predecessors, enhancing the reliability of AI-driven solutions in
various domains, including finance, healthcare, and education.

182
GENERAL AWARENESS
Future Prospects
OpenAI’s o1 model represents a significant step toward developing
AI systems capable of complex reasoning, with potential
applications ranging from advanced data analysis to autonomous
decision-making systems.

Google DeepMind’s GenCast Announcement

Advancements in Weather Prediction
Google DeepMind announced GenCast, an AI technology designed
to improve weather forecasting accuracy. By analyzing vast
datasets, GenCast provides more precise predictions, aiding sectors
like agriculture and disaster preparedness.
Impact on Agriculture
Accurate weather forecasts are crucial for agriculture, enabling
farmers to make informed decisions about planting and harvesting.
GenCast’s enhanced predictions help optimize crop yields and
reduce losses due to unforeseen weather events.
Disaster Preparedness
Improved forecasting allows for better preparation and response to
natural disasters such as hurricanes and floods, potentially saving
lives and reducing economic losses.
Integration with Existing Systems
GenCast is designed to integrate seamlessly with existing
meteorological infrastructure, providing an additional layer of
analysis to support meteorologists and decision-makers.

183
GENERAL AWARENESS
Discovery of Carbon-Capturing Microbes
Innovative Approach to Carbon Capture
Researchers announced the discovery of microbes capable of
capturing atmospheric carbon dioxide, offering a biological solution
to mitigate climate change.
Environmental Impact
These microbes can be utilized in various environments to reduce
carbon levels, contributing to efforts to combat global warming and
its associated effects.
Potential Applications
The discovery opens avenues for developing sustainable
technologies that incorporate these microbes into industrial
processes, enhancing carbon capture efficiency.
Future Research Directions
Ongoing research aims to understand the mechanisms behind these
microbes’ carbon-capturing abilities, to optimize and scale their use
in environmental management.

CES 2025
AI-Driven Innovations
The Consumer Electronics Show (CES) 2025 showcased the
integration of AI in consumer technology, with a strong focus on
robotics, smart wearables, and intelligent assistants that improve
everyday tasks.
Robotics and Automation
Robots were a major highlight at CES 2025, with new AI-driven
machines designed to assist in homes, offices, and industrial
settings. These robots showcase AI’s growing role in automation
and efficiency.

184
GENERAL AWARENESS
Sustainability and Smart Tech
The conference also emphasized sustainability, with AI and IoT-
driven smart home devices, energy-efficient appliances, and
wearables designed to reduce environmental footprints.
The Future of Work and Connectivity
Innovations for remote work and enhanced connectivity were major
focuses, with AI tools that aid productivity, collaboration, and more
seamless communication between users.

International Year of Quantum Science and Technology

Promoting Quantum Technologies
The United Nations proclaimed 2025 the International Year of
Quantum Science and Technology to raise awareness and foster
global collaboration on quantum computing, communication, and
sensors.
Advancing Quantum Computing
This initiative seeks to accelerate quantum computing, which
promises to revolutionize industries by solving complex problems
that traditional computers cannot.
Global Collaboration
The year will highlight the importance of international collaboration to
solve the technological and ethical challenges of quantum
advancements and ensure equitable access to quantum technologies.
Education and Public Engagement
The UN’s focus will include educating the next generation of quantum
scientists and promoting public understanding of quantum technologies'
potential societal impacts.

185
GENERAL AWARENESS
NASA Astronauts Stranded in Space Due to Technical Issues
NASA astronauts Barry “Butch” Wilmore and Sunita Williams have
been stranded on the International Space Station (ISS) since June
2024. The delay was caused by technical issues with their Boeing
Starliner spacecraft, including thruster malfunctions and leaks,
making it unsafe for their return.
SpaceX Capsule to Bring Astronauts Back in 2025
A SpaceX Crew Dragon capsule successfully docked with the ISS on
December 8, 2024, bringing astronauts Nick Hague and Roscosmos
cosmonaut Aleksandr Gorbunov to assist the stranded crew. Wilmore
and Williams are now scheduled to return to Earth in February 2025,
extending their mission to over eight months.
Celebrating Holidays and Fulfilling Civic Duties in Space
During their extended stay, the astronauts celebrated Thanksgiving
and Christmas aboard the ISS. They also participated in the 2024 U.S.
presidential election, casting their votes from space using NASA’s
established procedures.
NASA’s Support for Extended Mission Duration
Despite the challenges of a prolonged space mission, NASA has
implemented strategies to address health risks and manage the
astronauts’ extended stay. Their experience and NASA’s support
systems have been crucial in ensuring the safety and well-being of
the crew.
SpaceX Successfully Catches Starship’s Super Heavy Booster
SpaceX achieved a groundbreaking milestone on October 13, 2024,
by catching the Super Heavy booster of its Starship rocket mid-air
during its fifth test flight. The maneuver, executed with the launch
tower’s “chopstick” arms, was the first time a rocket stage had been
caught in mid-air.

186
GENERAL AWARENESS
Enhancing Reusability with the Mid-Air Catch
This successful catch marks a significant step toward making the
Super Heavy booster reusable. The advancement is expected to
drastically lower launch costs and improve the efficiency of future
missions, a key component of SpaceX's Starship program.
Booster in Good Condition After Catch
SpaceX engineers confirmed that the caught booster was in good
condition, with only minor warping on some of the outer engines due
to heat exposure. This demonstrated the durability of the booster and
the effectiveness of the catching mechanism.
A Step Toward Full Reusability and Space Exploration
The success of this catch is a major leap toward achieving full
reusability for SpaceX’s Starship system. This could revolutionize
space travel, making missions to the Moon, Mars, and beyond more
affordable and accessible.

WORLD NEWS

1. Israel-Hezbollah Ceasefire Deal:

Israel and Lebanon have entered a 60-day ceasefire, modeled on
UNSC Resolution 1701, which ended the 2006 conflict. The
agreement requires Hezbollah to retreat 40 km from the Israel-
Lebanon border and Israel to withdraw its forces from Lebanon.
Enhanced oversight includes monitoring by UN peacekeepers, the
Lebanese military, and a multinational committee involving the U.S.
and France. While not mandating Hezbollah’s disarmament in

187
GENERAL AWARENESS
northern Lebanon, Israel has cautioned that military operations will
resume if the truce is breached. Lebanon will intensify its
supervision of Hezbollah’s activities south of the Litani River to
prevent regrouping. Israel agreed to the ceasefire to focus on
countering Iran, replenish military resources, and separate the fronts
involving Hamas and Hezbollah. Prolonged conflict in Lebanon
risked straining the IDF and bolstering Hezbollah’s domestic
support. Despite sustaining losses, Hezbollah retained striking
capability, evident in a recent rocket attack. Strategic considerations,
including former defense leaders questioning Israel's military
objectives, contributed to the decision to halt hostilities.

2. UK Hands over Chagos Islands to Mauritius:

The UK has agreed to transfer sovereignty of the Chagos Islands to
Mauritius, ending a long-standing dispute. While Mauritius will
oversee the archipelago and implement a resettlement program, the
UK retains sovereign rights over Diego Garcia, where a joint UK-US
military base will remain operational for 99 years. India, a key
supporter of Mauritius' claim, has strengthened ties with the island
nation, countering China's influence in the Indian Ocean. The Chagos
Islands, comprising 58 islands, hold strategic significance due to
their location, facilitating military operations and security in the
region, as well as environmental importance for biodiversity and
conservation.
The Chagos dispute arose when the UK declared the islands an
overseas territory in 1965, detaching them from Mauritius before its
independence in 1968. The forced displacement of Chagossians for
the Diego Garcia military base led to legal challenges by Mauritius. In

188
GENERAL AWARENESS
2019, the ICJ ruled that the UK must return the islands, deeming the
detachment during colonial rule a violation of international law, but
the UK resisted until this agreement.

3. Israel Launches Retaliatory Strikes On Military Targets In Iran:

Israel conducted precise airstrikes on Iran in retaliation for an Iranian
attack earlier in October 2024, escalating tensions in West Asia. The
conflict raises fears of prolonged disruptions in the Red Sea shipping
route, critical for global trade. India, heavily reliant on this passage for
its $400 billion trade with Europe, the US, Africa, and West Asia, faces
significant risks. Shipping disruptions, heightened by the involvement
of Hezbollah’s allies, such as Yemen’s Houthi rebels, have already
impacted Indian petroleum exports, which fell sharply by 38% in
August 2024 compared to the previous year. Rising shipping costs
have further pressured standalone refiners.
Despite these challenges, India’s trade with Gulf Cooperation Council
(GCC) nations grew by 17.8% between January and July 2024, with
exports to Iran increasing by 15.2%. However, the conflict threatens
the India-Middle East-Europe Economic Corridor (IMEC), a strategic
project aiming to reduce reliance on the Suez Canal. The IMEC
envisions faster trade routes through a ship-rail network linking India,
the Gulf, and Europe, announced during the G20 summit in 2023.

4. USCIRF Labels India a “Country of Particular Concern”:

The United States Commission on International Religious Freedom
(USCIRF) has recommended that the U.S. Department of State designate
India as a "Country of Particular Concern," citing alleged systematic

189
GENERAL AWARENESS
violations of religious freedom. The report accuses the Indian
government of enabling hate speech and misinformation that incite
violence against religious minorities and places of worship, claiming
that 2024 witnessed killings, lynchings, arrests of religious leaders, and
demolitions of homes and places of worship. India has dismissed the
report, labeling USCIRF a "biased organization with a political agenda."

5. PM Modi Meets Palestinian PM Abbas in New York:

On the sidelines of the Summit of the Future in New York, PM Modi
met Palestinian President Mahmoud Abbas shortly after India
abstained from a UNGA resolution urging Israel to end its occupation
of Palestinian territories within 12 months. While reaffirming India's
longstanding position on the Israel-Palestine issue, PM Modi's
balanced approach reflects India's deep ties with both Israel and West
Asian countries, like Saudi Arabia, UAE, Qatar, Iran, and Egypt. This
follows India’s October 2023 humanitarian aid to Gaza and
expressions of solidarity with Israel against terror attacks.
India maintains strong relations with Palestine through developmental
cooperation and budgetary support, amounting to ~$141 million and
$39 million, respectively. Notable projects include the Palestine-India
Techno-Park, libraries in Gaza and Deir Al Balah, and a super-specialty
hospital in Ramallah. In 2021-22, India implemented Quick Impact
Projects, such as rehabilitating Yasser Arafat Square and establishing
educational and recreational facilities, showcasing India's
commitment to Palestine’s sustainable development.

190
GENERAL AWARENESS
6. Two New US-India Agreements:
During the Indian Defence Minister's visit to the United States, two
significant agreements were signed to strengthen bilateral defense
cooperation: the Security of Supply Arrangement (SOSA) and a
Memorandum of Agreement on Liaison Officers. SOSA ensures
reciprocal priority support for critical defense goods and services,
addressing supply chain disruptions, with India becoming the 18th
partner country under this arrangement. A binding Reciprocal Defence
Procurement (RDP) Agreement is also in progress. The Liaison
Officers agreement allows Indian armed forces officers to be
assigned to key US strategic commands, enhancing information-
sharing and interoperability. Both nations also advanced co-
production projects in line with the 2023 US-India Roadmap for
Defence Industrial Cooperation.

7. UK General Election 2024:

In the 2024 UK general election held on July 4, the Labour Party, led by
Keir Starmer, achieved a decisive victory over the ruling Conservative
Party, led by Rishi Sunak. This snap election, called by Sunak despite
not being required until December 2024, elected 650 members to the
House of Commons. The UK operates under a constitutional
monarchy and parliamentary democracy, with King Charles III as the
ceremonial head of state and the Prime Minister, appointed by the
monarch, serving as the head of government. The Prime Minister
leads the majority party in the House of Commons and oversees
governance, supported by a Cabinet of senior ministers.

191
GENERAL AWARENESS
The UK's voting system for the House of Commons uses a first-past-
the-post method, where voters select a candidate, and the one with
the most votes wins. A majority party forms the government, while a
hung parliament leads to coalition efforts. Notably, the new House of
Commons includes 28 members with Indian roots, including a record
12 Sikhs, six of whom are women, making the UK second only to
Canada in Sikh representation.

8. Trump's Claims on Canada, Greenland, and Panama Canal Stir

Controversy:
In a recent press conference, President-elect Donald Trump outlined
an ambitious foreign policy agenda aimed at expanding U.S. influence
by acquiring territories such as Canada, Greenland, and the Panama
Canal. He suggested imposing significant tariffs on Canada to
pressure it into becoming a U.S. state, citing economic and defense
considerations. Regarding Greenland, Trump did not rule out the use
of military force to gain control, emphasizing its strategic importance
in countering Chinese and Russian activities in the Arctic. Similarly, he
expressed intentions to reclaim the Panama Canal, potentially through
military means, underscoring its significance for American national
security.
These declarations have elicited strong reactions from the
international community. Canadian Prime Minister Justin Trudeau
firmly rejected the idea of Canada merging with the United States,
stating it has "a snowball's chance in hell." Danish Prime Minister
Mette Frederiksen dismissed Trump's plans for Greenland, and
Panama's Foreign Minister Javier Martinez-Acha reiterated that the
Panama Canal's sovereignty is non-negotiable. Analysts and

192
GENERAL AWARENESS
former officials have raised concerns that such aggressive rhetoric
could destabilize global alliances and security arrangements, marking
a significant departure from traditional U.S. foreign policy based on
alliances and diplomacy.

9. Geopolitical Events And Container Shortages Faced By India:

India and global traders are grappling with severe container shortages,
driven by heightened demand from Chinese exporters rushing to ship
goods before steep US and EU tariffs on products like electric vehicles
(EVs) and semiconductors take effect. The EU has imposed a 37.6%
tariff on Chinese EV imports, while US tariffs, reaching up to 100% on
EVs and 50% on semiconductors, became effective on August 1. This
surge in demand, coupled with India’s dependency on China, which
produces 95% of the global container supply, has left Indian exporters
struggling. Efforts to mitigate this reliance have begun, with India and
the US ramping up domestic container production to reduce
dependence on China’s highly subsidized state-owned enterprises,
which dominate the market.
Exacerbating the shortage are geopolitical challenges like the Red Sea
crisis, where Houthi rebel attacks have reduced shipping traffic by
90%, forcing vessels to take longer routes via the Cape of Good Hope.
This has intensified port congestion globally, with 60% of ships
waiting in Asia, further straining container availability. Additionally,
other countries, including Canada and Indonesia, have imposed higher
tariffs on Chinese goods, increasing global container demand. These
structural challenges, alongside continued tariff expansions under the
Biden administration, have created significant hurdles for Indian
exporters in securing containers.

193
GENERAL AWARENESS
10. Pakistan and China Agree To Upgrade CPEC:
During a recent visit by Pakistan’s Prime Minister Shehbaz Sharif to China,
the two nations agreed to upgrade the China-Pakistan Economic Corridor
(CPEC) and advance its second phase focusing on high-quality
development. Initiated in 2015 with a $46 billion pledge, later expanded to
$62 billion, CPEC aims to transform Pakistan’s economy by modernizing
infrastructure and connecting Gwadar and Karachi ports to China’s
Xinjiang province. The first phase involved energy, transport, and port
projects, though progress has been uneven. The second phase
emphasizes industrialization and the development of Special Economic
Zones. However, challenges like political instability, bureaucratic delays,
and limited local job creation due to Chinese companies’ self-reliant
approach have hindered its success.
CPEC poses significant security and sovereignty concerns for India as it
passes through Gilgit-Baltistan, a region claimed by India but controlled by
Pakistan. Additionally, China’s growing military presence in the area,
including naval vessels, submarines, and plans for a naval base in Gwadar,
raises alarms about encirclement in the Indian Ocean. The project’s
association with economic and security disparities in regions like
Balochistan, where locals see limited benefits, further complicates its
progress. These developments underline the complex geopolitical
implications of the CPEC for both Pakistan and its neighbors.

SPORTS NEWS

1. India Wins ICC T20 World Cup: On June 29, 2024, the Indian cricket
team celebrated a historic victory by winning the ICC T20 World Cup,
defeating South Africa by seven runs in a nail-biting final held in Barbados.

194
GENERAL AWARENESS
This triumph marked India’s second T20 World Cup title after a 17-year
wait. Virat Kohli's pivotal 76 runs helped set a target of 176, while Jasprit
Bumrah and Hardik Pandya led the bowling attack, restricting South
Africa to 169 runs. The victory was bittersweet as it coincided with the
retirement announcements of Kohli and Rohit Sharma from T20
internationals, adding an emotional layer to this monumental win.

2. Neeraj Chopra's Olympic Silver: At the Paris 2024 Olympics, Neeraj

Chopra secured a silver medal in javelin throw with a season-best throw
of 89.45 meters, narrowly missing gold to Pakistan's Arshad Nadeem.
This achievement reinforced Chopra's status as a national hero and
inspired countless young athletes across India. His performance
contributed to India's overall medal tally at the Olympics, which included
six medals—one silver and five bronze—showcasing the country's growing
prowess in athletics on the global stage.

3. Manu Bhaker Makes History: Shooter Manu Bhaker made history at the
Paris 2024 Olympics by becoming the first Indian female athlete to win
two medals in a single Olympic event. She claimed bronze in both the
women's 10m air pistol and mixed team events, demonstrating
exceptional skill and determination. Bhaker's achievements were
celebrated nationwide, inspiring young female athletes to pursue sports
and highlighting India's commitment to promoting women's participation
in competitive athletics.

4. Historic Paralympics Performance: The Indian contingent delivered its

best-ever performance at the 2024 Paralympics, securing a remarkable
total of 29 medals—seven gold, nine silver, and thirteen bronze. This

195
GENERAL AWARENESS
surpassed India's previous best of 19 medals at the Tokyo 2020 Games.
Notable performances included Avani Lekhara winning gold in women's
10m air rifle standing SH1 and Sumit Antil's success in javelin throw. The
achievements of para-athletes emphasized India's commitment to
inclusivity in sports and showcased their growing talent on an
international platform.

5. Gukesh Dommaraju Becomes World Chess Champion: In December

2024, Gukesh Dommaraju made history by becoming the youngest world
chess champion at just 18 years old after defeating Ding Liren in
Singapore. This achievement followed India's unprecedented success at
the Chess Olympiad earlier that year, where both men's and women's
teams won gold medals. Gukesh's victory not only highlighted his
exceptional talent but also solidified India's status as a powerhouse in
chess, inspiring future generations of players to excel in this intellectually
demanding sport.

6. Indian Men's Hockey Team Wins Bronze: The Indian men's hockey
team clinched a bronze medal at the Paris 2024 Olympics, marking a
significant achievement for the sport and serving as a fitting farewell for
legendary goalkeeper PR Sreejesh. His leadership and skill were
instrumental throughout his career, culminating in this memorable
performance against Spain. The bronze medal added to India's rich
legacy in hockey and showcased the team's resilience on an international
stage as they continue to build on their historic successes.

7. Badminton Asia Team Championships Win: In early 2024, the Indian

women's badminton team achieved its first-ever gold medal at the

196
GENERAL AWARENESS

Badminton Asia Team Championships held in Malaysia. Led by star

players PV Sindhu and Anmol Kharb, this victory marked a significant
milestone for Indian badminton on an international platform. The triumph
highlighted individual talents while emphasizing teamwork and dedication
within Indian badminton, inspiring future generations of players to excel in
this increasingly popular sport.

8. Rohit Sharma and Virat Kohli Announce Retirement: Following India's

T20 World Cup victory, cricket legends Rohit Sharma and Virat Kohli
announced their retirement from T20 internationals after long and
illustrious careers that significantly shaped Indian cricket. Their
retirements were met with mixed emotions from fans—celebrating their
achievements while acknowledging their absence from future T20
matches—opening doors for younger talents while leaving behind
legacies that will inspire future generations of cricketers.

9.FICCI TURF 2024 Global Sports Summit: The FICCI TURF 2024 Global
Sports Summit took place on November 30, bringing together
stakeholders from various sectors to discuss emerging trends and
challenges in sports business and governance. Topics included
technology's role in sports and grassroots development, providing
valuable insights into advancing India's sports landscape. The summit
served as a platform for collaboration among policymakers, corporates,
athletes, and global experts while facilitating partnerships that aim to
enhance India's position in international sports.

197
GENERAL AWARENESS
IMPORTANT INTERVIEW TOPICS FOR EXTEMPORE
Paris Olympics
2024 men’s T20 world cup Final
World chess championship 2024
Vistara ceases operations
Donald Trump Wins the U.S. Presidential Election
Bangladesh Protests
Middle East Conflict
U.S-China Relations and Trade Tensions
India-China Border Tensions
2024 G20 Rio de Janeiro summit
Asian East India Summit

IMPORTANT INTERVIEW QUESTIONS

Who is the MLA or MP of your constituency? Who is the CM of your
state?
List the positives and negatives of the current Union Budget.
How are India-Canada relations now? What are your views on the
recent allegations made by the Canadian PM?
What is the impact of the Israel – Hamas conflict on India? What are
your views on it?
Russia-Ukraine war & their impact on the global economy. What are
your views on India’s stand on the war?
Name a women leader in any field who has inspired you.
Inflation, GDP, Unemployment, REPO, Reverse REPO rate, fiscal and
monetary policy.
Questions on the vital union ministries and their ministers, different
portfolios of ministers.

198
GENERAL AWARENESS
Name a momentous event that happened in your native place or the
place you live in.
What is that one thing your place is famous for?
Name some rivers around your place, along with their origin point and
the point where they meet the oceans/sea.
Which are the Scandinavian countries?
What are the different countries in ASEAN, AUKUS, QUAD, SCO,
SAARC, G20, G7, NATO, and CSTO?
Name any five countries in Africa/Middle East.
CEOs of major organizations (Google, Microsoft, Amazon, Apple,
Alibaba, Reliance etc.)
About your previous company, if you have work-experience.

199
 INTERVIEW TIPS
BY MEDIA AND INDUSTRY INTERACTION CELL
OF IIM UDAIPUR
INTERVIEW TIPS

The Personal Interview Process of the IIMs and other business schools
checks whether the candidate will fit into the B–school culture. The
essential tip anyone can give you regarding the interview process is to be
true to yourself. Only then can you answer the questions as confidently as
possible. IIM Udaipur puts a 15% weight on the candidate's interview. The
points for this criteria are given on the candidate's general attentiveness,
responsiveness, and confidence. In such a case, it becomes imperative
that the candidate answer the questions thoughtfully. Below are some of
the critical questions that you must keep in mind:
“Tell me about yourself” - This is the question you can use to set the
interview's tone. Try to be as concise and straightforward as possible.
It is an accepted norm that the answer to this question is between 1 –
2 minutes. To prepare this question, list down all the relevant points
about yourself. You can include your educational background, work
experience, hobbies, etc. Once these points have been identified, try to
think of ways these have shaped you and prepared you for the MBA
life. For example, it is not enough to say you love playing basketball.
You must also tell how the sport has affected or made you a better
person.
Have a hobby - If you mention a hobby, be thorough and know the
latest happenings in that particular field of interest. Saying something
and not knowing about it creates a terrible impression.
Strengths/Weaknesses - List down three strengths and three
weaknesses of yours. It should reflect how deeply you understand
yourself and talk about what you are doing to overcome your
weaknesses while mentioning them to the interviewer.

201
INTERVIEW TIPS
Take the interviewer through your journey - Every interview is a
journey through your life. Write down your answers and then practice
them several times with pauses and expressions.
Why MBA/Why this college - Link your MBA aspirations to something
that happened in your past or to something in the future (which you
want to achieve). There must be a personal touch to this answer.
Thoroughly research the college before applying and identify its
uniqueness, which can be linked to some of your life experiences.
For freshers - Ensure you are thorough with the important subjects
you studied in your graduation. A basic understanding of essential
terms with their practical applications in everyday life would be
enough.
For people with work-ex - Try understanding your designation/role's
impact on the organization's overall functioning. People tend to have
a narrow view of their job in the company, but a macro perspective is
required. Also, mention the achievements you made while being in
that post.
Filler words - Avoid using filler words such as ah, hmm, you know,
or....; a person using these words/sounds doesn’t notice it when
speaking. Every person has their own filler words, so self-reflect and
identify them. You can video record yourself while preparing for
answers and ask your friends/family members to ask unprepared
questions based on your introduction; this will give you a good
understanding of the filler words being used.
Know when to stop - Speak only about what you know and try not to
fake an answer. Be honest while answering questions. If you don’t
know something, there is no harm in saying that you don’t know it.

201
 Media & Industry Interaction Cell

IIM UDAIPUR WISHES YOU

All The Best