Short Question Answer Study Material Notes MBA 1st Semester For Applications

Q.4. What is CRM? What are its objectives? 

Or What do you understand by CRM? 

Or Explain customer relationship management. What are the alter management. What are the different CRM system solutions?(2014-15) 

Ans. Customer Relationship Management (CRM): It is a comprehensive strategy and the process of acquiring, retaining and partnering with selected customers so as to create superior values for the company and also for its customers.

It is designed to optimise profitability, revenue and the customer satisfaction. It is a business strategy that involves cooperative and collaborative processes that help in reducing transaction costs and hence the overall costs of the company.

Objectives of CRM: These are as follows:(2013-14

1. It is easy to increase the profit to about 85 per cent by increasing customer retention by only 5 per cent.

2. It costs six times more to sell to a new customer than to sell to an existing one. 

3. The odds of selling to an existing customer are 50 per cent that can be done through CRM. 

4. Seventy per cent of complaining customers will do business with the company again if it quickly takes care of a particular service.

CRM System Solutions: Refer to Section-C, Q.2. (Application components of CRM). 

Q.5. Discuss the advantages and disadvantages of CRM. 

Ans. Advantages of CRM: The advantages of CRM are as follows:

1. CRM systems provide ability to personalise relationships with customers a organisation to adjust the level of service.

2. CRM ensures higher customer retention by introducing lovalty programs. 

3 . CRM helps in developing better communication which makes easy life for both the organisation and its sales representatives.

4. CRM systems facilitate the organisation’s workforce in knowing how to deal with customer.

5. CRM helps the business in cdlosing deals faster through quicker and more efficient responses to customer leads and customer information.

Disadvantages of CRM: The various disadvantages of CRM include:

1. CRM applications use remote Internet connections to save the cdustomer records. 

2. There are overhead costs associated with running the software if a CRM application is followed.

3. Training issues may be a small disadvantage if the company is small and for large-scale CRMs, hiring of professionals to train employees in groups is needed.

Q.6. Give real life examples of ERP and CRM systems.(2015-16) 

Ans. Real lif eeXAMPLES OF erp: these are as follow:

  1. Someone in finance can use ERP to see if any sales order has been shipped from the warehouse so that he can now confidently plan for working capital management for the next period.
  2. Erp can be used in financial accounting. Treasury management, asset management andf enterprise control. 
  3.  It covers the areas of human resources like personnel management, training and and skills inventory. 
  4. . It is used in logistics for production planning, materials management, plant maintenance, quality management, profit management, sales and distribution management. 

Real Life Examples of CRM: These are as follows:

  1. CRM can alert a bank sales representatives to call the customers who make large deposits. W sell them premier credit programs or investment services. 
  2. CRM helps sales, marketing and service professionals capture and track relevant data about every part and planned contact with prospects and customers as well as other business and life-cycle events of customers. 

Q.7. What is security? Explain its needs and objectives.

Ans. Security: It refers to policies, procedures and the technical measures that are used to prevent unauthorised access or any type of physical damage to information systems.

Needs of Security: The needs of security are as follows:

1. It reduces the risk of systems and organisations to have blocked operations. 

2. It maintains information confidentiality. 

3. It ensures the availability of data resources and other online operations. 

4. It ensures the integrity and reliability of data resources.

5. It follows policies and laws regarding privacy. 

Objectives of Security: Security is needed to have these objectives:

1. Integrity: It means that data can’t be modified without authorisation. Security maintains the integrity of system from malicious intents, edge R unauthorised use, modifications, etc.

2. Confidentiality: It is the property of preventing

disclosure of information to unauthorised individuals or systems. Confidentiality is necessary to maintain the privacy of the people whose personal information is held by a person.

3. Availability: It refers to the property that the information must be available when it is needed. This serves the purpose of an organisation. Ensuring availability involves preventing denial-of-service attacks.

Q.8. What do you understand by ethics? Describe business ethics.

Ans. Ethics: It is a study of values, human behaviour, principles and practices which guides to decide whether the action taken is right or wrong. Ethical values refer to protecting individual human rights related to privacy, descent, private intellectual property, healthy life and work safety, etc.

business Ethics: These ethics are concerned with issues that managers must confront as part of daily business decision-making. It can be divided into two areas:

1. First concerning the illegal, unethical or questionable practices of managers or the organisations. 

2. Second concerning the ethical questions related to managers in decision-making. Businese ethics are related to corporate social responsibilities of the managers: 

(a) Stakeholder Theory: It maintains the managers ethical responsibility to manage a firm for the benefit of all of its stakeholders who have claim on a company. 

(b) Stockholder Theory: It holds that managers are agents of the stockholders and have to increase the profits of the business without violating the law. 

(C) Social Contract Theory: It states that companies have ethical responsibilities to all members of society which allow corporations to exist based on a social contract. 

Q.9. What are the principles of technology ethics? 

Ans. Technology Ethics: It refers to the ethics that are involved in the development of new technology and technological growth where the ethics of technology break down into ethics of human values as they are altered by new technologies.

Principles of Technology Ethics: The major principles of technology ethics are as: 

1. The benefit and burden of technology should be distributed fairly and those who benefit should bear their fair share of the risks. 

2. The benefits achieved by the technology should outweigh the harms or risks. 

3. The technology must be implemented to avoid all types of unnecessary risks.

4. Those who are affected by the technology should understand and accept the risks. 

Short Question Answer Study Material Notes MBA 1st Semester For Applications
Short Question Answer Study Material Notes MBA 1st Semester For Applications

Q.10. What do you mean by hacking? Describe common hacking tactics.

Ans. Hacking: It is the process of achieving access to a computer or computer network without the presence of legal authorisation. It involves damage to computer files, web pages or software. It is the practice of modifying computer hardware and software to fulfil the goal that is outside the creator’s original purpose.

Common Hacking Tactics: These are as follows:

1. Trojan Horse: It is a program that is unknown to the user and contains instruction that can exploit the software.

2. Sniffers: It is a program that search individual packets of data as they pass through Internet by capturing passwords or even entire content.

3. Denial of Service: It is known to block the system, slowing performance or even crashing the site by sending too many requests for information.

4. Scans: It is a widespread problem of Internet for determining types of computers, services and their connections.

5. Password Crackers: It is a software that can guess password. 

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