ACC 517 Management Accountancy

Credits: 3
Lecture Hours: 48

Course Objectives
The main objective of this course is to equip students with the depth knowledge and skill in management
accounting concepts, tools and techniques. The course also aims to encourage the students in application
of the management accounting concepts, tools and techniques in planning, decision making and control
systems in different business organizations.

Course Description
This course includes scope of management accounting and their applications; controllership functions;
management accounting information system; cost estimation; cost allocation; income measurement and
reporting under variable and absorption costing; cost-volume-profit analysis; profit planning and
budgetary control; standard costing and cost variances analyses; and management accounting control
system.

Course Details
Unit 1: Basic concepts of costs and management accounting LH 6
Controllership functions; scope and limitations of management accounting; basic concepts,
behaviors and control of costs; cost classification; cost segregation and cost estimation; allocation
of overhead costs and joint costs; and allocation under traditional costing and activity based
costing.

Unit 2: Income measurement and reporting LH 4

Concept and methods of product cost under variable and absorption costing; income measurement
under these two costing methods; reconciliation of income differences under these costing
methods; reasons for differences; and meaning of reporting for different purposes.

Unit 3: Cost – volume – profit analysis and profit planning LH 12

Basic concepts of cost-volume-profit analysis; the variable cost ratio, contribution margin and the
contribution margin ratio; concept and meaning of break- even point, margin of safety; Concept
of product mix and cost volume profit analysis; optimum product mix under resource constraints;
breakeven point and profit planning in resource constraints; cost volume profit analysis under
conditions of uncertainties; use of standard deviation, co-efficient of variation and normal
distribution; sensitivity analysis.

Unit 4: Budgeting and profit planning LH 12

Concepts, scope, need and objectives of budgeting; budgeting for profit planning and control;
preparation of master budgets for manufacturing, trading and service firms; projected financial
statements including the cash budget, the income statement, the statement of changes in equity,
and the balance sheet ; concept of zero-base budgeting (ZBB), program based budgeting (PBB)
and activity based budgeting (ABB).
Unit 5: Standard costing and cost control LH 10
Concept of standard costing and its application to cost control; direct material and direct labor
costs variances under standard costing; flexible budgeting and overhead costs variances (three
variances); analyses of the reasons and interpretation of costs variances; implication of the
variances for management control and performance evaluation.

Unit 6: Management accounting and control system LH 4

Concept, need and scope of management accounting and control systems; the value chain; total
life cycle costing; target costing; kaizen costing; bench marking; balanced scorecard; behavioral
considerations in management accounting and control system.

Teaching Methodology
The teaching methodology of management accounting will include a combination of interactive class
lectures, problem solving exercises, group discussions, case analyses, and project work of financial
analysis and profit planning.

Evaluation
It is ongoing or continuous evaluation process, which will be spread throughout the semester. Participants
will be evaluated on the following bases:
Internal evaluation - 40%
(Class participation, case analyses assignments, project report on profit planning)
External evaluation - 60 %

Basic Text Book

Atkinson, A. A.; Kaplan, R.S.; Matsumura, E. M.; Young, S. M.; & Kumar, G. A. (latest). Management
Accounting. Pearson Education. (latest edition).
Horngren, C. T.; Sundem, G. L. and Stratton, W. O. (latest) Introduction to Management Accounting.
Pearson Education. (latest edition).

References Books
Hilton, Ronald W., et al. (latest) Managerial Accounting: Creating Value in a Dynamic Business
Environment. TATA McGraw-Hill. (latest edition).

Kaplan, R. S. and Atkinson, A. A. (Latest). Advanced Management Accounting. Prentice Hall

Garrison, R. H., et al. (latest). Managerial Accounting. Tata McGra Hill Education Pvt Ltd.
Acc 519: Accounting for Financial and Managerial Decisions and Control
Credits: 3
Lecture Hours: 48
Course Objectives
The main objective of this course is to enhance conceptual knowledge and skill of the students to obtain relevant
financial information and develop their critical thinking ability to analyze the information for business decisions
and management control. Learners of the course will be able to contribute as a strategic decision making team
member of the organization by providing the relevant financial information and reporting critical analysis of
alternative courses of actions for value creation and internal management control in the organization.

Course Description
This course includes scope and sources of financial information; understanding of basic financial statement;
critical understanding of the effect of accounting policies and methods of measurement in financial statement;
analysis of financial statements from different perspectives; analysis of alternative courses of actions and business
decision making under different situations; product mix decisions in resource constraints; planning and decision
making under conditions of uncertainties; business development plans and capital budgeting; and managerial
control of resources.

Course Details
Unit 1: Introduction LH 3
Need for financial information; scope and sources of financial information; operating, investing and
financial activities of business; need for financial reporting and disclosures; accounting information,
annual reports and their basic contents.

Unit 2: Basic Financial Statements LH 5

An overview of the balance sheet, the income statement, the statement of cash flow, and the statement of
retained earnings; the accounting cycle and the process of preparing financial statements; overview of
accounting standards, policies and methods, and their effects in the financial statements.

Unit 3: Effect of Accounting Policies in Financial Information, Decision Making and Control LH 8
Measurement and recognition of incomes; accrual and cash basis of revenue recognition; revenue
recognition and the matching principle.
Methods of inventory valuation, cost of goods sold and the gross income; inventory valuation- cost vs.
market value; inventory valuation under LIFO and FIFO methods; inventory valuation under variable and
full costing; effect of inventory valuation in current ratio, profitability and tax liabilities; inventory control
systems.
Defining capital vs. revenues expenditures; management decisions process and control of acquisition of
properties, plant and equipments; effect of different methods of depreciation (straight line vs. diminishing
balance methods).

Unit4: Accounting Control of Accounts Receivables and Cash LH 4

Valuation and reporting of account receivables; direct write off and allowance methods of accounting for
doubtful debts; effect of credit policies in profitability; control of accounts receivables.
Effective management of cash; checking bank statements, bank reconciliation statement and need for
adjustment; management control of cash.
Unit 5: Cash flow Statement and Its Analysis LH 4
Classification of cash flow by operating, investing and financing activities; computation of operating,
investing and financing cash flows; preparing the statement of cash flows; difference between the cash
budget and statement of cash flows; analysis of cash flow performance; use of cash flow information for
decision making and control.

Unit 6: Analysis of Financial Statements LH 5

Need of financial analysis from different perspectives management, investors, lenders, suppliers,
employees, and customers); techniques of financial analysis; vertical analysis and common size
statements; horizontal analysis; overview of ratio analysis, using information of financial statement
analyses for decision making and control.

Unit 7: Alternative Courses of Actions for Business Operations and Decision Making LH 10
Relevant information for decision making; decisions to make or outsourcing; decision to accept or reject
special offers; decisions to drop or continue of product lines; decisions to sell or further processing; leasing
or buying of property, plant and equipments; pricing decisions for external market; transfer pricing and
goal congruence.

Unit 8: Business Development Plants and Capital Budgeting LH 9

Need for preparing business development plans; basic components of business development plans
(organizational, making, operation, and financial plan); financial planning through capital budgeting
techniques; capital budgeting process and steps; estimation of total investment; estimation of annual net
cash flows; estimation of terminal cash flows; payback period; net present value; internal rate of return;
financial feasibility of the project; capital budgeting under conditions of uncertainties and risk; capital
budgeting under foreign investments.

Basic Text Books:

Norton, Curtis L. and Porter, Gary A.(Latest).Introduction to Financial Accounting. South Western Cengage
Learning. (Latest Edition)

Hilton, R.W.et al.,(Latest). Managerial Accounting. McGraw Hill. (Latest Edition)

Kaplan, R. S. and Atkinson, A. A.(Latest).Advanced Management Accounting. prentice Hall. (Latest Edition)

References:
Horngren, C.T.; Sundem, G.L. and Stratton, W.O.(Latest).Introduction to Management Accounting. Pearson
Education. (Latest Edition).
Nepal Accounting Standards (NAS), ICAN, latest version
International Financial Reporting System (IFRS), latest version
ACC 673: Cost Management
(MBS-Accountancy Specialization)

Credits: 3
Lecture Hours: 48

Course Objectives
This course aims to impart advanced knowledge of existing costing systems, their drawbacks and
development of improved methods and techniques, so as to make costing systems tools of strategic decision
making.

Course Description
This course contain introduction to cost management, product costing system, activity based costing,
managing customer profitability, process costing and cost allocation, financial and cost value Profit (CVP)
models, cost management and decisions making, strategic issues in making decisions.

Course Details
Unit 1: Introduction to Cost Management LH 3
Cost management: concept, importance; strategic role of cost management; characteristics of cost
management analysis; cost management and strategic decision making; formulation of strategic
action plans; evaluation of plans and outcomes: benefit cost analysis and benefit & cost variance.

Unit 2: Product Costing System LH 3

Concept and type of cost; Cost reported in financial statement: service, retail and manufacturing
company.

Unit 3: Activity Based Costing (ABC) LH 4

Concept, advantages and limitations of activity based costing system. Traditional costing system,
Procedures of absorption of overhead cost under ABC technique, Estimation of costs of new
products using ABC, ABC in service and merchandized companies, Cost and benefit of using ABC
technique, Activity Based Costing and target Costing.

Unit 4: Managing Customer Profitability LH 5

Concept and importance of customer profitability; Customer sales analysis Sale and administrative
cost analysis; Customer profitability analysis.

Unit 5: Process Costing and Cost Allocation LH 8

Concept, importance and characteristics Process Costing System, Assignment of costs to product;
Concept, importance and characteristic of Joint Process Costing, estimation of profit from Joint
Product, Reason for allocating Joint Costs, Joint Costs allocation methods: Net Realizable Method
and Physical Measures Method, Accounting for By-Product.

Unit 6: Planning and Decisions Making LH 5

Cost estimation, Reasons for estimating costs, A simple method: One cost driver and fixed and
variable cost behavior, A complex method: multiple cost driver and complex cost behavior, Cost
estimation method: simple regression analysis and high low method, Account analysis method and
Engineering method

Unit 7: Financial and Cost Value Profit (CVP) Models LH 6

Concept and objectives Financial Modeling, Using CVP Planning models: CVP models and Break
Even Point, CVP model in graphical format, CVP and target income, Operating Leverage,
Multiproduct profit planning model
Unit 8: Cost Management and Decisions Making LH 7
Decision making process: setting goals and objectives, gathering information, Evaluating
alternatives, Decision making alternatives: make or buy, add or drop a product, service or business
unit, replacement of equipment and sales or further process, pricing decisions: influence on prices,
special order price decision.

Unit 9: Strategic Issues in Making Decisions LH 7

Concept and importance of investment decision, Strategic investments, Legal and ethical issues in
strategic investment analysis, discounted cash flow analysis: importance of discount rate,
computing Net Present Value and Internal Rate of Return

Basic Book:

Hilton, R. W., Maher, M. W. and Selto, F. H. (2008), Cost Management,

Strategies for Business Decisions, 4E, MC Graw Hill, Irwin
Blocher E., David Stoot N. C. and Lokins O. G., Cost Management, A
Strategic Emphasis Tata Mcgraw Hill Co.
Acc 676 : Accounting Theory and Financial Reporting
(MBS-Accountancy Specialization)

Credits: 3
Lecture Hours: 48

Course Objectives
This course aims to provide the accounting theories and their applications, practical and conceptual issues
of general financial statements for reporting financial position and performance and financial analysis for
performance appraisal of business enterprises including financial institutions. It also aims to provide
exposure to disclosure required for financial statements and reporting, accounting standards issued by Nepal
Accounting Standards Board and International Accounting Standards Boards.

Course Description
This Course contains introduction, corporate reporting and disclosure in financial reporting, Reporting and
Analysis of Changes in Stockholders’ Equities, Contemporary Issues in Accounting.

Course Details
Unit 1: Introduction LH 9
Concept, objectives, approaches, classifications and origin of Accounting Theory, Influence of
government regulatory bodies; Influence of taxation
Structure of Accounting Theory: accounting principles, concepts and conventions. Accounting
standards: National and International Standard setting bodies (Nepal): responsibilities and processes,
national and international accounting and reporting standards (mandatory, recommendatory,
exposure draft), interpretations, framework for preparation and presentation of financial statements,
recognition and measurement of elements of financial statements, departure from current corporate
practices.

Unit 2: Corporate Reporting and Disclosure in Financial Reporting LH 21

Nature and objectives of external financial reporting
Corporate Financial reports: Income statement, Balance sheet and Cash flow statement as per
Company Act and regulatory framework like Nepal Rastra Bank (NRB), Security Exchange Board
of Nepal (SEBON) and Insurance Board Directives, Nepal Accounting Standards (NAS) and Nepal
Financial Reporting Standards (NFRS).
Director’s and auditor’s reports; disclosure required in financial reporting as per national and
international accounting and financial reporting standards, evaluation of disclosure practices in
financial reporting (NFRS and IFRS), transparency in financial statements.
Currency translation of financial statement of foreign operations Issues related to
consolidation of financial statements, interim, segment and group reporting (Business combination
and holding company)
Unit 3: Reporting and Analysis of Changes in Stockholders’ Equities LH 9
Need and importance of stockholders’ equity; Accounting for changes in stockholders’ equity:
Increases in share capital, redemption of preferred stock, stock dividend and stock split, and stock
warrants, Appraisal of the impact of changes in accounting policies and the regulatory framework on
shareholders’ funds.

Unit 4: Contemporary Issues in Accounting LH 9

Corporate Governance: governance systems and contemporary mechanism, accounting issues arising
from corporate failures, business ethics and financial reporting; Corporate Social performance and
responsibility accounting; social discloser requirements; Human resources accounting (HRA) and
reporting; factors leading to development of HR Accounting and reporting, HR Accounting and
reporting in Nepal.

Basic Books
Handriksen and Breda. (1991). Accounting Theory (5th Edition). New York: Irwin McGraw Hill.
Porwal, l.S. (1986). Accounting Theory: An introduction. New Delhi: Tata McGraw Hill Publishing
Co.
Jawahara Lal (2009). Accounting Theory and Practice (Third edition). New Delhi: Himalaya
Publishing House.
Revsine, Collins and Johnson. (1999). Financial Reporting and Analysis. New Jersey: Prentice Hall,
Upper Saddle River.

Supplementary Readings
Accounting Standards Board. (2003). Nepal Accounting Standards. Kathmandu: ASB.
NFRS (2014). Nepal Accounting Standards. Kathmandu: ASB.
Greunning and Keen. (2000). International Accounting Standards. A practical guide. USA: World
Bank.
ACC 677: Management Control Systems
(MBS-Accountancy Specialization)

Credits: 3
Lecture Hours: 48

Course Objectives
This course aims to give the knowledge of elements, applications, and behavioral ramifications of
management control systems and make the students clear on the measurement and implementation issues
involved in management control systems.

Course Description
This course contains introduction to management control system, the environment of management control
system, responsibility centers, transfer pricing, management control process, Modifications in Management
Control.

Course Details
Unit 1: Introduction to Management Control System LH 4
Meaning and Concept of Management Control System; Importance, Characteristics, Nature and
Scope of Management Control System; Boundaries of Management Control; Concept of
Management Audit as a control tool

Unit 2: The Environment of Management Control System LH 4

Management Control Environment, Goal congruence, Factors affecting goal congruence, Role of
management control system in goal congruence; Organization structure and management control
system; Behavioral Considerations of Management Control System.

Unit 3: Responsibility Centers LH 5

Concept and Nature of Responsibility Centre; Criteria for measuring the Performance of
Responsibility Centre; Types of Responsibility Centre: Revenue Centre; Expense Centre; Cost
Centre; Profit Centre; Marketing Responsibility Centre; Research and Development Centre;
Investment Centre: Return on Investment (ROI), Residual Income (RI).

Unit 4: Transfer Pricing LH 6

Introduction; Objectives of Transfer Pricing; Significance of Transfer Pricing; Methods of Transfer
Pricing

Unit 5: Management Control Process LH 20

Strategic Planning: Concept and nature of strategic planning, ongoing programs analysis, proposed
new programs analysis, strategic planning process
Budgeting: Concepts, importance, objectives and characteristics of budgeting, Budgetary control
system, Process of budget preparation, preparation of master budgets for manufacturing and non-
manufacturing organization, Behavioral aspects of Budgeting, Flexible budgets and Zero-base
budgeting
Financial Performance Reports Analysis: Variance: concept, application and limitations of
variance, variance Analysis: Material, Labor, Overhead (fixed and variable) and Sales Variance,
Behavioral aspects of performance evaluation
Performance Measurement: Performance Measurement System, The Balanced Scorecard: concept
and implementation of balanced scorecard, Interactive Control and Incentive Plans in organizations
Unit 6: Modifications in Management Control LH 9
Modern Control Methods: Introduction, Just in Time, Total Quality Management
and Decision Support System
Management Control in different Organizations: Healthcare organizations, Government
organizations, Financial institutions, Non-profit organizations and Multinational organizations
Management Control of Projects: Nature of Projects, control environment, project planning,
execution and evaluation

Basic Books:
Anthony, R. N. and Govindarajan, V., Management Control Systems, Tata
McGraw-Hill
Merchant, K. A., Modern Management Control Systems, Pearson Education
(Singapore) Pvt. Ltd., Indian Branch, New Delhi

Reference Book:
Atkinson, A. A. and Kaplan, R. S., Advanced Management Accounting, Prentice
Hall of India Pvt. Ltd., New Delhi
ACC 674: Contemporary Auditing
(MBS-Accountancy Specialization)

Credits: 3
Lecture Hours: 48
Course Objectives
This course aims to develop student's capability in performing and reporting on audit and assurance to
increase reliability of financial and non-financial information. It also aims to develop student's capability to
identify, gather and assess evidences for sufficiency and appropriateness in performing audit.

Course Description
This course examines statutory requirement for audit, audit process, strategy and planning, special audit
techniques and procedures, audit of organizations under computerized environment, audit types and
auditors' report and trends in auditing

Course Details
Unit 1: Statutory Requirements LH 20
Legal and professional requirements: Provisions of auditing in Company Act, BAFIA, Corporation
Act, Social Organization Act, Education and Cooperative Acts and Nepal Standards on auditing
(mandatory, voluntary and exposure drafts) including guidance notes and practice statements issued
by the Institute of Chartered Accountants of Nepal and/or Auditing Standard Board.

Unit 2: Auditing Processes, Audit Strategy and Planning LH 5

Understanding of business and assessing audit risks, review of internal and accounting control,
consideration of error, fraud and misstatement in financial statements, development of overall audit
plan and program, time and resource schedule, conducting audit, collection and evaluation of audit
evidences, maintenance of working paper and permanent files, independent review of audit files
and confidentiality of information obtained during the audit.

Unit 3: Special Audit Techniques and Procedures LH 10

Sample selection, ratio analysis and trend analysis, physical verification of fixed assets, inventory
and cash, setting materiality level, enquiry, balance confirmation, inspection, drawing conclusion
and steps to mitigate audit risks.

Unit 4: Audits under Computerized Environment LH 3

Concept and Specific issues related to EDP audit; Techniques of EDP audit, Use of Computer and
Computer Assisted Audit; Roles and risks of auditor.

Unit 5: Auditor's Report LH 5

Types of audit and auditor's report, management letter, disclosure requirement, difference between
certificate and report, report related to commercial and government auditing, Modification to
auditor's report.
Unit 6: Trends in Auditing LH 5
Financial forecasts, human resources auditing, reports on financial sickness, special requirements of
different users, Risk based auditing and its significance.

Basic References
Company Act, Income Tax Act, Auditing Act, Banking and Financial Institution Act (BAFIA),
Corporation Act, Cooperative Act, Education Act, Self Governance Act, Constitution of Nepal
Gupta, K. Contemporary Auditing (New Edition), New Delhi: Tata McGraw Hill.
Nepal Standards on Auditing, including preface, framework, guidelines, practice statements: Auditing
Standards Board.

Supplementary Readings
Batra and Bagardia. Text Book of Auditing. (New Edition), New Delhi. Tata MCGraw-Hill Publishing Co.
Ltd.
Dhakal, K.D., Bhattarai, I and Koirala, G.P. The Principles and Practice of Auditing (New Edition).
Kathmandu, Asmita Books Publishers.
Millichamp, A.H. Auditing (New Edition). London: ELST
Prakash, J. Auditing Principles, Practices and Problems (New Edition). New Delhi: Kalyani Publishers.
Saxena, R.G. Principles of Auditing (New Edition). Mumbai, Himalayan Publishing House.
Tondon, B.N. Practicle Auditing. (New Edition). New Delhi: S.Chand, and Co.
ACC 672: Corporate Taxation
(MBS-Accountancy Specialization)

Credits: 3
Lecture Hours 48
Course Objectives
This course aims to provide the students with the knowledge of tax laws and tax planning for
decision making and enable them to work as tax consultants in the corporate sector and tax officers
in the government sector.

Course Description
This course includes income tax, value added tax system and procedures in Nepal. It also covers
tax planning concept and its uses in Nepal.

Course Details
Unit 1: Conceptual Foundation LH 3
Sources of financing in Nepal. Structure of taxation in Nepal. Historical development of tax
laws in Nepal. Definition of related terms.

Unit 2: Income Tax LH 20

Sources of income, tax exempted income, tax exempted institutions, tax rates, tax
exemptions, tax rebates, treatment of provisions related to deductions and reductions, tax
deduction at source and its treatment, types of assessment, computation of assessable
income, taxable income and tax liability under business and investment, set off and carry
forward of losses, inter-source and inter-head adjustments-within country and outside
country.

Unit 3: Value Added Tax LH 6

Taxable transactions, tax exemptions and zero rate, tax deduction and tax refund, tax
invoice, tax accounting, tax calculation, tax registration, collection.

Unit 4: Revenue Administration LH 5

Structure of revenue administration, Inland Revenue Department, Ministry of Finance,
Revenue Investigation Department. Tax audit and investigation. Method of collection and
realization, rights and duties of tax authorities and assessee, advance ruling, fines and
penalties for breach of rules, review and appeal under Income Tax and Value Added Tax
Acts and Rules.

Unit 5: Tax Planning Concept LH 8

Concept of tax planning, significance of tax planning, tax evasion and tax planning, tax
avoidance and tax planning, scope of tax planning. Tax Planning for various payments and
activities i.e. remuneration payment, location of industrial set up and timing activities.
Unit 6: International Taxation LH 4
Taxation of non-resident (service providers) related to shipping, airlines, transport,
telecommunication or remittances, foreign tax credit, double taxation avoidance treaties.

Unit 7: Contribution of Income Tax and Value Added Tax LH 2

Contribution of Income Tax and Value Added Tax to total revenue and tax revenue of
Nepal.

Basic References
Nepal Government. Budget Speech and Finance Act (Recent)
Nepal Government. Double Taxation Avoidance Treaties with various countries
Nepal Government. Income Tax Act 2058 with amendments. Kathmandu: Ministry of Law,
Justice and Constituent Assembly
Nepal Government. Income Tax Rules 2059 with amendments. Kathmandu: Ministry of Law,
Justice and Constituent Assembly
Nepal Government. Value Added Tax Act 2052 with amendments. Kathmandu: Ministry of Law,
Justice and Constituent Assembly
Nepal Government. Value Added Tax Rules 2053 with amendments. Kathmandu: Ministry of
Law, Justice and Constituent Assembly

Supplementary Readings
Dhakal, K.D., Pandey, B. and Bhattarai, R. Corporate Taxation with Tax Planning (Updated
Edition). Kathmandu: M.K. Publishers and Distributors Pvt. Ltd.
Kandel P.R. Tax Laws and Tax Planning in Nepal (Updated Edition). Kathmandu: Buddha
Academic Publishers
K.C., J.B. Tax Laws and Tax Planning: Theory and Practice (Updated Edition). Kathmandu:
Khanal Books Prakashan.
Bhattarai, I. and Koirala, G.P. Tax Laws and Tax Planning (Updated Edition). Kathmandu:
Asmita Publication.
Khadka, R. Vat in Nepal. (New Edition), New Delhi: UBS Publisher Distributors Ltd.
Lekhi, R.K. Public Finance. (New Edition), New Delhi: Kalyani Pbulishers
Prasad, B. Direct Taxes: Laws and Practice (Updated Edition). New Delhi: Vishwa Prakashan.
Singhaniya, V.K. Direct Taxes: Laws and Practice (Updated Edition). New Delhi: Taxman
Publication Pvt. Ltd.
ECO 512: Managerial Economics
Credits: 3
Lecture Hours: 48

Course Objectives
The course aims to develop students knowledge and skills in the tools and techniques of economics
applicable to business decision making.

Course Description
This course deals with introduction to business economics, techniques of demand forecasting, production
theory, pricing theory and techniques and the role of government in the economy.

Course Details
Unit 1: Introduction to Business Economics LH 6
 Concept and scope of business economics, role of business economics in business decision-
making.
 Concept and functions of profit.
 Theories of firm: profit maximisation, value maximisation, sales maximisation,
Williamson's model of managerial discretion and Cyert and March's behavioural theory.

Unit 2: Demand Forecasting LH 14

 Concept and uses of price, income, cross and advertising elasticity of demand and their uses
in business decision-making.
 Techniques of demand forecasting: qualitative methods: survey methods, market
experiment, quantitative methods: time series analysis, moving average method, regression
analysis and barometric technique.
 Limitations of forecasting.

Unit 3: Production Theory LH 7

 Concept of production function.
 Production with one variable input – optimal use of an input.
 Production with two variable inputs – optimal combination of inputs.
 Economies of scale, economies of scope and learning curve.

Unit 4: Pricing Theory and Techniques LH 13

 Pricing under oligopoly: cartel arrangement, price leadership and kinked demand curve
model.
 Strategic behaviour and game theory: concept and importance, payoff matrix, Nash
equilibrium, prisoner's dilemma.
 Pricing techniques: cost-plus pricing, incremental cost pricing, multiple product pricing,
transfer pricing, peak-load pricing and two-part tariff.
Unit 5: Role of Government in the Economy LH 8
 Market failure: concept and sources of market failure: market power, incomplete
information, externalities and public goods.
 Government response to market failure: rationale for regulation, monopoly regulation,
problems of regulation and effects of regulation on efficiency, antirust policy, patent system,
operating controls, subsidy and tax policies, regulation of environmental pollution.
 Regulation of international competition.

Note: Numerical illustrations will have to be used wherever applicable.

Reference Books
Salvatore, D. (2012). Managerial Economics. New York: McGraw Hill.
Mansfield, E. (1996). Managerial Economics. New York: W.W. Norton and Co.
Petersen, H.C. and Lewis, W.C. (2008). Managerial Economics. New Delhi: Pearson Education Ltd.
Pappas, J.L. and Hirschey, . (1989). Fundamentals of Managerial Economics. New York: The Dryden
Press.
Economics, Lipsey Richard G., Chrystal K. Alec.
Joshi, Shyam. (2012). Managerial Economics. Kathmandu: Talegu Prakashan.
FIN 510: Financial Management

Credits: 3
Lecture Hours: 48
Course Objective
This course aims to enable students to appreciate the significance of concepts, theories and practice of
financial decision making in firms and to make them acquainted with analytical and problem solving
skills for making investment, financing and dividend decisions along with managing working capital.

Course Description
The course consists of nine units. The detailed contents of each unit along with contact hours are given
below. The major topics covered in this course are: financial management and financial environment,
financial statements analysis, time value of money, risk, return and the portfolio theory, security valuation
and cost of capital, investment decisions, financing decision, dividend decision, and working capital
management.

Course Details
Unit 1: Financial Management and Environment LH 4
Meaning, functions and goal of Financial Management; place of finance in organization
structure; the agency problem; business ethic and social responsibility; corporate governance;
forms of organizations; financial markets and financial institutions; tax environment.

Unit 2: Financial Statements Analysis LH 4

Financial statements and reports; modifying accounting data for managerial decisions; nature and
need of financial analysis; financial ratio analysis and their types; DuPont equation; comparative
ratios and benchmarking; uses and limitations of ratio analysis; common size statement; index
analysis; trend analysis; qualitative factors in financial analysis.

Unit 3: Time Value of Money LH 3

Future and present value; perpetuities and annuities; growing perpetuities and annuities; uneven
cash flows; amortization of loan; intra-year compounding and discounting.

Unit 4: Risk, Return and the Portfolio Theory LH 6

Return and return measures; risk and risk measures; measurement of risk and return in portfolio
context; risk diversification; capital assets pricing model (CAPM) and beta; efficient portfolio;
optimal portfolio.

Unit 5: Security Valuation and Cost of Capital LH 6

Bond types and their classification; bond valuation; bond yields; riskiness of a bond. Preferred
stock valuation. Legal rights and privilege of common stockholders; common stock valuation:
dividend discount model, P/E ratio approach, earnings price relationship, expected return and
growth; stock market equilibrium; efficient market hypothesis. Weighted average cost of capital;
specific cost of capital; the CAPM and other approaches; factors affecting the weighted cost of
capital; adjusting the cost of capital for risk; cost of capital in privately owned firms and small
businesses.
Unit 6: Investment Decisions LH 8
Cash flow estimation; estimating cash flows. Overview of capital budgeting; net present value
(NPV); internal rate of return (IRR); NPV profile; comparison of NPV and IRR methods;
modified international rate of return (MIRR); profitability index; payback methods; business
practices; optimal capital budget.

Unit 7: Financing Decision LH 4

Capital structure issues; business risk and financial risk; estimating the optimal capital structure
decision.

Unit 8: Dividend Decision LH 5

The level of distribution and firm value; clientele effect; signaling hypothesis; the residual
distributional model; forms of dividend; stock repurchase; distribution policy decision; stock split
and stock dividend.

Unit 9: Working Capital Management LH 8

The cash conversion cycle; alternative net working capital policies; cash management; cash
management techniques; inventory; receivable management; alternative short-term financing
policies and financing.

Basic Text Books

Brigham, Eugene F and Dhrhardt, Micheal C., Financial Management: Theory and Practice, New
Delhi: Cengage Learning India.
Ross, Stephen A, Westerfield , Randolph W., Jaffel, Jeffrey, and Kakani , Ram Kumar, Corporate
Finance, New Delhi: McGraw Hill Education India.

References Books
Van Horne, James C.,Financial Management and Policy, New Delhi: Prentice Hall of India.
Brealey, Richard A, Myers, Stewart C., Allen, Franklin, and Pitabas Mohanty, Principles of Corporate
Finance, New Delhi: McGraw-Hill Education India.
Annual reports of listed companies, Nepal Stock Exchange, Nepal Securities Board.
FIN 650: Assets Management
(MBS finance specialization)

Credits: 3
Lecture Hours: 48
Course Objectives
The course aims to provide the students a detail insight into the theory and practices of assets
management for business and develop a clear understanding of various tools required for financial
decision making in the context of Nepal.

Course Description
This course provides the broad overview of types of assets, portfolio theory and assets pricing models,
capital budgeting and risk analysis, real option in capital budgeting, working capital management and
management of each component of current assets.

Course Details
Unit 1: Introduction LH 3
Types of assets: real and financial, current and fixed; structure of assets of various industries;
significance of assets management for business

Unit 2: Portfolio Theory and Assets Pricing Models LH 6

Efficient portfolios; choosing the optimal portfolios, the basic assumptions of CAPM; the capital
market line and the security market line; calculating beta coefficient; empirical tests of the
CAPM; arbitrage pricing theory; the Fama-French three-factor model; and an alternative theory
of risk and return.

Unit 3: Capital Budgeting and Risk Analysis LH 7

Overview of capital budgeting decision rules; special application of cash flow evaluation; the
optimal capital budget; evaluating capital budgeting projects with and without inflation; project
risk analysis: techniques for measuring stand-alone risk – sensitivity analysis, scenario analysis,
and Monte Carlo simulation.

Unit 4: Real Option in Capital Budgeting LH 8

Introduction to real options; types of real options; valuing real options: the investment timing
options – DCF analysis with and without the timing option, scenario analysis and decision trees,
valuing the timing option with the Black-Scholes option pricing model, and financial
engineering; the growth option – DCF analysis with and without the growth option, decision
tree analysis of the growth option, and valuing the growth option with the Black-Scholes option
pricing model.

Unit 5: Working Capital Management LH 6

Nature and components of working capital; working capital policies; risk return trade-off of the
working capital policy; planning for working capital; working capital and inflation; operating
environment of working capital; and determination of working capital.
Unit 6: Liquidity and Cash Management LH 7
Liquidity and its roles; cash management and collection; controls of disbursement; reasons for
holding cash; cash management techniques; target cash balance; and investing idle cash.

Unit 7: Credit Management LH 5

Credit terms; credit decision; optimal credit policy; credit analysis; and collection policy.

Unit 8: Inventory Management LH 6

Types of inventory; managing inventory; inventory cost; economic order quantity and extension
of EOQ; inventory control system, and monitoring inventory level.

Textbooks
Brigham, E. F. & Ehrhardt, M. C. (2014). Financial management: Theory and practice, (14th ed). New
Delhi: Cengage Learning India.
Van Horne, J. C. & Dhamija S. (2014). Financial management and policy (12th ed). New Delhi:
Dorling Kindersley (India) Pvt. Ltd.
References
Rose, S. A., Westerfield, R. W., Jaffe, J. & Kakani, R. K. (2014). Corporate finance (10th ed). New
Delhi: McGraw-Hill Education (India) Pvt. Ltd.
Brealey, R. and Stewart, M., Alen F. & Mohanty, P. (2014). Principles of corporate finance (11th ed).
New Delhi: McGraw-Hill Book Company.
FIN 651: Capital Structure Management
(MBS finance specialization)

Credits: 3
Lecture Hours: 48

Course Objective
The course aims to provide the students a detail insight into the theory and practices of capital structure
management for business and develop a clear understanding of various tools required for capital
structure decisions.

Course Description
This course provides the broad overview of sources of financing and discusses the theories of capital
structure. Then it covers different aspects of short-term and long-term financing including the leasing.
Finally, it covers topics related to instruments for raising long-term financing.

Unit 1: Introduction LH 3
Sources of long-term and short-term financing; capital structure and financial structure; optimal
capital structure; features of optimal capital structure; factors affecting capital structure.

Unit 2: Theory of Capital Structure LH 6

Introduction to the theory – assumptions and definitions, net operating income approach,
traditional approach; Modigliani-Miller position; taxes and capital structure; effect of
bankruptcy costs; other imperfections; incentive issues and agency costs; financial signaling; a
pecking order of financing.

Unit 3: Short-term Financing LH 6

Liability structure of a company; trade credit financing; accrual accounts as spontaneous
financing; unsecured short-term loans; secured lending arrangements; intermediate-term debt;
protective covenants and loan agreements.

Unit 4: Foundations for Longer-term Financing LH 3

Purpose of financial markets – efficiency of financial markets, disintermediation, securitization,
financial innovation, allocation of funds; yield curves and their use; pricing default risk off
treasuries.

Unit 5: Lease Financing LH 8

Features of a lease; accounting and tax treatments of leases; return to the lessor; analysis of
lease versus buy/ borrow decision; source of value in leasing.
Unit 6: Issuing Securities LH 8
Public offering of securities; selling common stock through a right issue, value of each right,
effect of right offering on shareholders’ wealth; financing a fledgling – founders and angels,
venture capital, initial public offering; information effects.

Unit 7: Fixed-income Financing and Pension Fund Liability LH 6

Features of debt; types of debt financing; call features and refunding; private placement;
preferred stocks; pension fund liability.

Unit 8: Hybird Financing through Equity-Linked Securities LH 8

Use of warrants, valuation of warrant; convertible securities, valuation of convertible securities,
effect of bond with warrant and convertible financing on balance sheet and income statement;
exchangeable debt.

Textbooks
Van Horne, J. C. & Dhamija S. (2014). Financial management and policy (12th ed). New Delhi:
Dorling Kindersley (India) Pvt. Ltd.
Brigham, E. F. & Ehrhardt, M. C. (2014). Financial management: Theory and practice, (14th ed). New
Delhi: Cengage Learning India.

References
Rose, S. A., Westerfield, R. W., Jaffe, J. & Kakani, R. K. (2014). Corporate finance (10th ed). New
Delhi: McGraw-Hill Education (India) Pvt. Ltd.
Brealey, R. and Stewart, M., Alen F. & Mohanty, P. (2014). Principles of corporate finance (11th ed).
New Delhi: McGraw-Hill Book Company.
FIN 656: Financial Derivatives and Markets
(MBS finance specialization)

Credits: 3
Lecture Hours: 48
Course Objective
The purpose of this course is to enable students to understand and analyze financial derivative
instruments. The course also intends to use derivative securities to hedge risk and take advantage of the
speculative derivative markets.

Course Description
This course broadly covers forward and future markets, various aspects of option markets and hedging
strategies and swaps. Major topics covered include: Introduction, The structure of forward and future
markets, Option markets and properties of stock options, Trading strategies involving options, Option
pricing models, Hedging strategies using futures, Swaps, and Derivative markets in developing
countries.

Course Details
Unit 1: Introduction LH 4
Financial derivatives: features, types, and historical overview; types of traders, and criticism of
derivatives markets.

Unit 2: The Structure of Forward and Future Markets LH 6

Development of forward and future markets; over-the-counter forward market; organized future
trading; future traders, quotation, types of future contracts, mechanics of future trading;
transaction costs in forwards and future trading; Regulation. (Chance).

Unit 3: Option Markets and Properties of Stock Options LH 8

Types of options; option positions; underlying assets; specification of stock options; trading,
commission, margins, option clearing corporation; regulation and taxation; OTC options
markets; factors affecting option prices; assumptions, upper and lower bounds for option prices;
Put-call parity, Effect of dividend.

Unit 4: Trading Strategies involving Options LH 6

Strategies involving a single option and a stock, Spreads, Combinations.

Unit 5: Option Pricing Models LH 10

One step binomial model; risk neutral valuation; two-step binomial trees; a put example; and
Black-Scholes option pricing model.

Unit 6: Hedging Strategies Using Futures LH 7

Basic principles; arguments for and against hedging; basis risk and cross hedging, Stock index
futures.
Unit 7: Swaps LH 5
Mechanics of interest rate swap; the comparative advantage arguments; the nature of swap rates;
determining LIBOR/ Swap zero ratio, Valuation of interest rate swaps, Currency swaps,
Valuation of currency swaps, Credit risks and Other types of swaps.

Unit 8: Derivative Markets in Developing Countries LH 2

China’s markets; Indian markets; commodity derivatives in Nepal; lessons for all users of
derivatives.

Text Book
Hull, J. C. and Basu, S. (2013). Options, Futures, and Other Derivatives (8th ed). New Delhi:
Dorling Kindersley (India) Pvt. Ltd.
References
Chance, D. M. and Brooks, R. (2014). An Introduction to Derivative and Risk Management
(9th ed). New Delhi: Cengage Learning India Pvt. Ltd.

Parasuraman, N. R. (2013). Fundamentals of Financial Derivatives (3rd ed). New Delhi: Wiley
India.
FIN 654: Financial Markets and Institutions
(MBS finance specialization)
Credits: 3
Lecture Hours: 48

Course Objective
The course aims to provide the students overall understanding on the financial markets and institutions in
general and on interest rate theories, money and capital markets, money and capital market instruments,
central bank, monetary policy, commercial banking industry and other financial institutions and
contemporary issues of financial markets and institutions in particular. The course also aims to
familiarize students with current issues on financial institutions and financial markets and enable them to
critically analyze these issues.
Course Description
This course provides an overview of the financial markets and institutions with a special emphasis on
financial markets, theories on interest, central bank, monetary policy and interest rates, capital markets,
money markets and capital and money market instruments, commercial banking industry, mutual funds
and other lending institutions, insurance company, pension funds, investment banks, securities brokers,
and dealers.
Course Details
Unit 1: Introduction LH 5
Functions of financial markets; structure of financial markets; internationalization of financial
markets; functions of financial intermediaries; types of financial intermediaries; regulation of
financial system; and theory of interest – loanable funds theory, unbiased expectations theory,
liquidity premium theory, and market segmentation theory.

Unit 2: The Central Banking and the Conduct of Monetary Policy LH 8

Role of the central bank in the economic development; monetary tools - open market operations,
the discount rate, and reserve requirements; goals of monetary policy – the price stability goal
and the nominal anchor, and other goals; and monetary policy and tools in Nepal.

Unit 3: The Money Markets LH 5

Purpose of money markets; participants of money markets; money markets instruments: treasury
bills, federal funds, repurchase agreement, negotiable certificate of deposit, commercial paper;
comparing money market securities; and international aspects of money markets.

Unit 4: Capital Markets LH 5

Purpose of the capital market; capital market participants; capital market trading; bonds – types,
treasury notes and bonds, treasury STRIPS, agency bonds; municipal bonds; corporate bonds –
characteristics, types; financial guarantees for bonds; current yield calculation; investing in
bonds; the stock market: investing in stock, selling of stocks and review of stock valuation
model.
Unit 5: Commercial Bank LH 9
Balance sheet; general principles of bank management; off-balance sheet activities; measuring
bank performance; regulation of commercial banks including NRB directives with reference to
Basel II and III; CAMELS as off-site and on-site supervisory tools; and prompt corrective action
(PCA)
Unit 6: Mutual Funds and Other Lending Institutions LH 7
Mutual funds: structure of mutual funds; investment objective classes – equity funds, bond
funds, hybrid funds, money market funds, and index funds; fee structure of investment funds;
hedge funds; and mutual fund industry in Nepal. Saving association and credit unions: mutual
saving banks; saving and loan associations; saving and loan industry in Nepal; financial
statements of saving and loan industry – balance sheet and income statement; and credit union.
Unit 7: Insurance Companies and Pension Funds LH 5
Insurance companies: fundamentals of insurance; types of insurance – life insurance, health
insurance, property and casualty insurance; regulatory body of insurance industry in Nepal.
Pension funds: types of pensions; private and public pension plan; practices of pension in
Nepalese context.
Unit 8: Investment Banks, Security Brokers and Dealers LH 4
Functions of investment bank – underwriting stocks and bonds, equity sales, merger and
acquisitions, brokerage services; securities dealers; regulation of securities firms; securities
firm and investment banks; and regulation and regulatory body in Nepal.

Textbooks
Mishkin, F. S. & Eakins, S. G. (2013). Financial markets and Institutions (6th ed). Delhi: Dorling
Kindersley.
Saunders, A. & Marcia M. C. (2007). Financial markets and institutions (3rd ed). New Delhi:
McGraw-Hill Education (India) Pvt. Ltd.
J. (2012). Financial markets and institutions (10th ed). New Delhi: Cengage Learning
(India) Private Limited.
Rose, P.S. & Marquis, M.H. (2006). Money and capital markets: Financial institutions and instruments
in a global marketplace (9th ed). New York: McGraw-Hill Irwin.
FIN 655: International Financial Management
(MBS finance specialization)

Credits: 3
Lecture Hours: 48

Course Objective
The main purpose of this course is to provide an understanding of the framework for corporate financial
decision-making in a multinational context. The course also intends to introduce various risks and
management strategies associated with international finance.

Course Description
Companies operating globally are different from their domestic counterparts due to their expose to
foreign exchange fluctuations, political risks, etc. To address these realities the course begins with a
background of globalization, multinational enterprises and international monetary system. Then the
course moves onto the balance of payment, foreign exchange markets, the determination of exchange
rates along with international parity conditions. It further addresses foreign exchange exposures –
transaction, operating and translation. Next, the core of financial management – capital budgeting,
capital structure including the cost of capital and working capital management in the context of MNEs
are covered. Finally, the course covers foreign direct investment and associated risk.

Course Details
The course consists of 8 units. The detailed contents of each unit along with contact hours are given
below.
Unit 1: Globalization and MNES LH 3
Globalization and international business; rise of multinational corporations; process of overseas
expansion, globalization process; and difference between multinational and domestic financial
management.

Unit 2: International Monetary System LH 3

History of international monetary system; contemporary currency regime; fixed versus flexible
exchange rates; emerging markets and regime choices; and monetary unification and the Euro.

Unit 3: Balance of Payments LH 3

Balance of payments – importance and accounting methods; international trade flows; and
factors affecting international trade flows and its effect on BOP.

Unit 4: Foreign Exchange Market and Foreign Exchange Rate Determination LH 10

Foreign Exchange Market: geographical extent of foreign exchange market; functions of foreign
exchange market; market participants; transactions in interbank market. International Parity
Conditions: prices and exchange rates; interest rates and exchange rates. Foreign Exchange Rate
Determination: the balance of payment approach; asset market approach to forecasting;
disequilibrium; exchange rates in emerging markets; and forecasting in practice.
Unit 5: Foreign Exchange Exposure LH 10
Types of foreign exchange exposure. Transaction Exposure: hedging; measurement of
transaction exposure; techniques for management of transaction exposure and risk management
in practice. Operating Exposure: attributes of operating exposure; measuring the impact of
operating exposure; management of operating exposure – strategic and proactive management.
Translation Exposure: overview of translation; managing translation exposure; and evaluation of
performance.

Unit 6: Global Cost of Capital and Capital Structure LH 4

Global Cost of Capital: weighted average cost of capital; demand for foreign securities; cost of
capital for MNCs compared to domestic firms. Financial Structure: optimal financial structure;
optimal financial structure and the MNE; and financial structure of foreign subsidiary.

Unit 7: Multinational Capital Budgeting LH 6

Complexities of budgeting for a foreign project; and project vs. parent valuation.

Unit 8: Multinational Working Capital Management LH 6

Working capital management – operating cycle, managing receivables, inventory management,
international cash management, and financing working capital.

Unit 9: FDI and Risk Analysis LH 3

Reasons and benefits of FDI; country risk; political risk factors; financial risk factors, types and
techniques for the assessment of country risk.

Textbooks
Eiteman, D. K. Arthur I. S. Moffett, M. H. & Pandey, A. (2007). Multinational business finance. Delhi;
Dorling Kindersley (India) Pvt. Ltd.

References
Madura, Jeff. (2015). International financial management (12th ed). Singapore: Thomson South-
Western
Shapiro, A. C. (2015). Multinational financial management (9th ed). New Delhi: Wiley India Pvt. Ltd.
FIN 653: Securities Analysis and Portfolio Management
(MBS finance specialization)

Credits: 3
Lecture Hours: 48

Course Objectives
The course aims to provide the students with knowledge of principles and theories of investment and
develop analytical skills for appraisal of securities and management of investible funds from the
viewpoint of investors, individuals as well as institutions, particularly in the context of Nepal.

Course Description
This course provides a broad overview of investment environment, trading of securities in financial
market, mutual fund and other investment companies, capital allocation and optional risky portfolios,
equilibrium in capital market and market efficiency, fixed income securities analysis, common stock
analysis, economic and industry analysis and active portfolio management. This course also provides an
overview of these topics in the context of Nepal.

Course Details
Unit 1: The Investment Environment LH 3
Types of investment; investment process; financial markets and the economy; ongoing trends of
investment; and investment environment in Nepal.

Unit 2: Financial Market and Trading of Securities LH 5

Market and Instruments: the money market and capital market; equities securities; stock and
bond market indexes. Trading of Securities: issue of securities; trading of securities; markets for
trading securities—trading on exchanges, trading on the OTC market; trading costs; buying on
margin; short sales; and regulation of securities markets.

Unit 3: Mutual Funds and Other Investment Companies LH 4

Investment companies; types of investment companies; mutual funds; costs of investing in
mutual funds; mutual fund investment performance; and mutual funds in Nepal.

Unit 4: Risk Aversion, Capital Allocation and Risky Portfolios LH 10

Risk Aversion: risk and risk aversion; capital allocation across risky and risk-free portfolios;
portfolios of one risky and a risk-free asset; the capital market line; portfolio of two risky assets.
Optimal Risky Portfolios: diversification and portfolio risk; the Markowitz portfolio selection
model.

Unit 5: Equilibrium in Capital Market and Market Efficiency LH 10

The Capital Asset Pricing Model: introduction; security market line; practicality of the CAPM;
extensions of the CAPM. Arbitrage Pricing Theory: arbitrage opportunities and profits; the APT
and well-diversified portfolios; a multifactor APT. Market Efficiency: random walk and the
efficient market hypothesis (EMH); implications of the EMH for investment policy; and event
studies.
Unit 6: Securities Analysis LH 10
Fixed-income Securities Analysis: bond characteristics; bond pricing and default risk; bond
yields; bond prices over time; the term structure of interest rates: the term structure under
certainty; measuring the term structure; interest rate uncertainty and forward rates. Common
Stock Analysis: equity valuation model; balance sheet valuation methods; intrinsic value versus
market price; dividend discount models; price-earnings ratio; corporate finance and the free
cash flow approach; inflation and equity valuation; and behavior of the aggregate stock market.

Unit 7: Macroeconomic and Industry Analysis LH 3

The global economy; the domestic macro-economy; demand and supply shocks; government
policy; business cycles; and industry analysis.

Unit 8: Portfolio Performance Evaluation LH 3

Measuring investment returns; the conventional theory of performance evaluation; performance
measurement with changing portfolio composition; market timing; evaluating performance
evaluation; and performance attribution procedures.

Textbook
Bodie, Z., Kane, A., Alan, M. J. & Mohanty, P. (2015). Investments (10th ed). New Delhi: Tata
McGraw Hill.
References
Reilly, F. K. & Keith, C.B. (2012). Investment analysis and portfolio management (10th ed). New
Delhi: Cengage Learning (India) Private Limited.
Sharpe, W.F., Gordon, J.A., & Jeffery, V.B. (1998). Investments (6th ed). New Delhi: Prentice Hall of
India Ltd.
FIN 652: Working Capital Management
(MBS finance specialization)

Credits: 3
Lecture Hours: 48

Course Objective
This course aims to develop through understanding of major components of working capital
management so that students are able to develop appropriate working capital policies for the firm.
Further, it aims to develop students’ skills for analyzing working capital requirements and identifying
appropriate sources of financing the working capital requirements.

Course Description
This course covers detail contents on all aspects of working capital management. The major topics
covered in this course are: working capital management and policy, inventory management, receivable
management, cash and marketable securities, and short-term financing by banks in Nepal.

Course Details
Unit 1: Working Capital Management and Policy LH 7
Working capital management; importance of working capital management; types of working
capital; factors affecting working capital; working capital cycle; cash conversion cycle;
working capital investment and financing policy; alternative working capital investment
policies; and alternative working capital financing policies.

Unit 2: Liquidity, Cash and Marketable Securities LH 8

Liquidity and its role; cash management and collection – concentration banking, lock-box
system, and preauthorized checks; control of disbursement; cash management service by bank;
investment in marketable securities; types of marketable securities; portfolio management; and
cash budget.

Unit 3: Management of Accounts Receivable LH 8

Credit policies – credit standards; credit period, discount, seasonal dating; collection policy and
evaluation collection program, evaluating the credit applicants – sources of information, credit
analysis, credit decision; outsourcing credit and collection; monitoring and control of account
receivables; and application of discriminant analysis to the selection of accounts.

Unit 4: Management of Inventories LH 7

Inventory management and control; classification system – ABC classification, VED
classification, FSN classification; economic order quantity; uncertainty and safety stock; just-in-
tine (JIT) control and the internet; and inventory and the financial manager.

Unit 5: Liability Management and Short-term Financing LH 12

Liability structure of a company; trade credit financing; accrual accounts as spontaneous
financing; unsecured short-term loans – line of credit, revolving credit agreement, transaction
loan; interest rates; and secured lending arrangements – assignment of accounts receivable,
factoring receivable, inventory loan, chattel mortgage, trust receipt loan, terminal warehouse
receipt loan and field warehouse receipt loan.

Unit 6: Working Capital Financing by Banks in Nepal LH 6

Determination of working capital gap; fund-based facilities - cash credit, working capital
demand loan, and bill discounting; non-fund-based facilities; security; and regulatory
requirement for working capital loan.

Textbooks
Van Horne, J. C. & Dhamija S.(2014). Financial management and policy (12th ed). New Delhi:
Dorling Kindersley (India) Pvt. Ltd.
Preve, L. A. , Saria-Allende, V. (2010). Working capital management. Oxford: Oxford University
Press.

References
Bhattacharya, Hrishikesh (2014). Working capital management: Strategies and techniques (3rd ed).
New Delhi: Prentice - Hall of India.

Rose, S. A., Westerfield, R. W., Jaffe, J. & Kakani, R. K. (2014). Corporate finance (10th ed). New
Delhi: McGraw-Hill Education (India) Pvt. Ltd.
Brealey, R. and Stewart, M., Alen F. & Mohanty, P. (2014). Principles of corporate finance (11th ed).
New Delhi: McGraw-Hill Book Company.
MGT 669: Performance Management
(Management Specialization)

Credits: 3
Lecture Hours: 48

Course Objective
Performance management is the most critical function and strong determinant of organizational excellence.
This course is designed to develop appreciation and skills essential for designing and instituting effective
performance management systems and strategies. Students will gain practical skills through self-reflection,
discussion, case studies, reading, literature reviews, research and application.

Course Description
This course contains introduction to performance management, performance management system and
strategic, performance planning and appraisal, performance management implementation, performance
monitoring and counseling, Performance Management Strategic and Interventions, Ethics in Performance
Management, Role of HR Professionals in Performance Management System, Emerging Concepts.

Course Details
Unit 1: Introduction to Performance Management LH 5
Concept of Performance Management, Characteristics, Objectives and Principles of Performance
Management, Role of Appraisal in Performance Management, Challenges to Performance
Management, Performance Management Process, Performance Management Process-Conceptual
Model and its Application.

Unit 2: Performance Management System and Strategies LH 6

Objectives, Functions, Characteristics of effective PMS, Components of PMS, Competency based
PMS, Electronic Performance Management, Corporate and Business Level Strategic Plans,
Objectives, Targets, Goals, Target and Performance Management, Scorecards.

Unit 3: Performance Planning and Appraisal LH 7

Concept of Performance Planning, Characteristics, Objectives, Importance & Methodologies,
Components of Performance Planning, KPIs (Key performance Indicators) Process & Barriers to
Performance Planning, Competency Mapping, Methods of Competency Mapping, Appraisal Process,
Approaches, Methods & Common Rating Errors. e-HR Managing 360 Degree performance appraisal.

Unit 4: Performance Management Implementation LH 6

Bottlenecks, Strategies & Factors affecting PM implementation, Operationalizing Change through
Performance Management, Building & Leading high performance team, Organizational Culture and
Performance Management.

Unit 5: Performance Monitoring and Counseling LH 7

Concept, Characteristics, Objectives, Importance and Process of Performance Monitoring, Ongoing
Mentoring and Protégé Development Performance Counseling: Concept, Principles of Performance
Counseling, Performance Counseling Skills & Performance Counseling for higher job performance.
Unit 6: Performance Management Strategic and Interventions LH 6
Reward based performance management; career based performance management, team based
performance management, culture based performance management; measurement based performance
management; competency based performance management; leadership based performance
management.

Unit 7: Ethics in Performance Management LH 4

Principles, Ethical Issues & Dilemmas, Developing Code of Ethics, Performance Management in
MNCs

Unit 8: Role of HR Professionals in Performance Management System LH 3

Appraising HR function, Future role of HR Professionals in Performance Management in
Knowledge Millennium.

Unit 9: Emerging Concepts LH 4

HR Bench Marking and Performance Management, HR Out Sourcing and Performance Management,
Role of Mentoring on Performance Management, Performance Management in
Developing Countries

Reference Books
Aguinis, Herman, Performance Management, Pearson Education, Inc. 2nd Edition
Kandula, Srinivas R., Performance Management, PHI, New Delhi.
Rao, T.V., Performance Management and Appraisal Systems, Response Bank, New Delhi.
Cardy, Robert L., Performance Management: Concepts, Skills and Exercise, PHI, New
Delhi.
Cascio, W. F. , Managing Human Resources: Productivity, Quality of work life, Profits,
Singapur: MGraw Hills.
Dessler, G. and Varkkey, B., Human Resource Management, New Delhi: Prentice Hall.
MGT 666: Quality Management
(Management Specialization)

Credits: 3
Lecture Hours: 48

Course Objectives
The course introduces the fundamental concepts of total quality management, statistical process control, six
sigma and the application of these concepts, philosophies, and strategies to quality related issues. It also
imparts the knowledge and skills in diagnosing and analyzing problems causing variation in manufacturing
and service industry processes. The students will get a basic understanding of "widely-used" quality analysis
tools and techniques.

Course Description
This course contains Quality, Strategic planning and competitive advantage, Principles of Total Quality
Management, Customer Focus, Quality Control and Quality Assurance, Statistical Process Control, Quality
Management Assistance Tools, Managing and organization for quality, Quality Management Standards:
(Introductory aspects only).

Unit 1: Quality, Strategic planning and competitive advantage LH 5

Concept of quality, quality in manufacturing and service system, quality and price, quality and market
share, quality and cost, quality and competitive advantage. Introduction to Quality Control – Quality
and Cost Considerations – Statistics and its applications in Quality Control.

Unit 2: Principles of Total Quality Management: LH 7

Introduction - Elements of Total Quality Management - Malcolm Baldrige National Quality Award
Award Criteria. Benefits of Total Quality Management. The Deming Management Philosophy – The
Juran Philosophy – The Crosby Philosophy.

Unit 3: Customer Focus LH 5

The Customer-Driven Quality Cycle - Quality Function Deployment –Customer Satisfaction
Measurement Techniques – Customer Relationship Management Techniques.

Unit 4: Quality Control and Quality Assurance LH 8

Concept of Quality Control – Concept of Process Variation – Acceptance Sampling – Sampling
Inspection Vs. Inspection – Attributes and variable sampling plans – OC Curves – Producer and
Consumer Risk – AQL, RQL, TQL, AOQL and AOL.

Unit 5: Statistical Process Control LH4

Control Charts – X-R, P, np and C Charts – Benefits of Control Charts and Applications

Unit 6: Quality Management Assistance Tools LH6

Recent Technique for Quality Improvement – Zero Defect – A Quality Motivation Techniques –
Quality Management system and Total Quality Control. Ishikawa Fish Done diagram, Quality
Circles, Kaizen method, lean manufacturing, 5’s methodology, six sigma, kanban system, Pareto
Analysis,Poka Yoke

Unit 7: Managing and organization for quality LH6

Quality Policy – Quality Objectives –Leadership for Quality – Quality and organization culture –
Cross-Functional Teams– Supplier/Customer Partnerships.
Unit 8: Quality Management Standards: (Introductory aspects only) LH7
The ISO 9001:2000 Quality Management System Standard, CMMI Fundamentals & Concepts,
Auditing Techniques - Planning for an audit - Developing a Check-list -Conducting an Audit -
Writing an Audit Report - Auditor Ethics - Value -addition process during Internal Audit - Mock
Audits - Quiz.

Reference Books
Dahigaard Jens J., Kristensen K.,Kanji Gopal K, “Fundamental of Total Quality
Management” Bross Chapman & Hall, London.
George, Stephen and Weimerskirch, Arnold, “Total Quality Management –
Strategies and Techniques Proven”, Mohit Publications.
Juran, Joseph M., “Total Quality Management : Mc Graw-Hill Pub
Hakes, Chris (editor) Total Quality Management : The Key to Business
Success”, NyChapman and Hall Pub.
Fox, Roy., “Making Quality Happen. Six steps to Total Quality Management” McGraw-Hill.
Jain, “Quality Control And Total Quality Management”, Tata McGraw Hill.
H.Lal “Total Quality Management: A Practical Approach”, New Age International Private Ltd.
Besterfield, “Total Quality Management”, Pearson Education.
Rao, Ashok, “Total Quality Management : A Cross Functional Perspective”, Wiley & Sons.
MGT 665: Organizational Development and Change
(Management Specialization)

Credits: 3
Lecture Hours: 48
Course objectives
The course orients the students with the various tools and techniques for Organizational Development. This
course in organizational development is framed to help the students to learn the concepts related to
organizational development so as to understand how a successful Business are framed at different levels of
Management for organizational success and smooth functioning of an organization in today’s dynamic
environment.

Course Description
This course contains introduction to organizational development, organizational development interventions,
designing organizational structures, key issues in organizational development.

Course Details
Unit 1: Introduction to Organizational Development LH 13
Foundations of Organizational Development and Managing the Organizational Development Process.
Approaches to understanding organizations, Key organizational design, procedures, differentiation
and integration, Leaders role in shaping and reinforcing organizational culture, developing a global
organizational culture. History of OD and value, assumption and belief in OD.

Unit 2: Organizational Development Interventions LH 12

Organizational development and change, Change Agents: skills, Levin’s Change model,
organizational reality, Sensitivity Training, Team Interventions, Third- Party Peacemaking
Interventions, Inter Group Interventions, Comprehensive Interventions, Strategic interventions MBO,
Role Playing, Future Challenges. Managing OD process, OD interventions in Nepalese organizations.

Unit 3: Designing Organizational Structures LH 10

Functional, Divisional (Product, Geographic, Market), Nature and Network Structure, the Learning
organization, Virtual/ Boundary Less organization, Organic Vs, Mechanistic structure, 360 degree
organizational structure.

Unit 4: Key Issues in Organizational Development LH 13

Issues in Consultant-client Relationships, system ramification, power, politics and OD. Action
Research, Ethical Issues in Organizational Development and Future of Organizational Development,
Emerging issues of work organization and quality of working life – career stage model – moving up
the career ladder, Forces reshaping organization – Life cycles in organization, key issues in OD in
Nepalese organization.

Text Books
French, W., Cecil, H. Bell & Jr. (2004). Organizational Development. Prentice Hall of India Pvt. Ltd.
Jones, G. R. (2nd edition, 2004). Organizational Theory. Addison-Wesley Publishing Company.

Reference Books
Burnes B. (1996). Managing Change: A Strategic Approach to Organizational Dynamics. London, Pitman.
Cummings, T. G. & Warley, C. G. (7th edition, 2001). Organizational Development & Change. Cincinnati,
Ohio: South-western.
MGT 670: Leadership and communication
(Management Specialization)

Credits: 3
Lecture Hours: 48
Course Objective
Leadership is fundamental to improving groups, organizations, and society and communication is
fundamental to leadership. Leadership is an interactive process through which leaders and followers develop
an effective approach to collective goals. This course aims to increase understanding of the leadership process
and the communication involved enhances the skills of all participants and fosters more effective
collaboration.

Course Description
This course contains introduction of leadership and communication, leadership styles and behavior, politics,
power and influence, leadership in groups and teams, leadership, culture and diversity, ethical leadership and
followership.

Course Details
Unit 1: Introduction LH 7
Concept, prerequisites of organizational leaders, leadership from a communication perspective, The
dimensions of leadership communication styles, Authoritarian, democratic and leissez-fair leadership,
Task and interpersonal leadership, followers communication styles, communication styles and
information processing.

Unit 2: Leadership Styles and behavior LH 10

Leadership traits, situation, transactional, functional and relationship leadership, Steward and servant
leadership, transformation and charismatic leadership, value-based leadership, assessing leadership
potential, measuring the effects of leadership, managerial derailment and self-defeating behavior,
developing planning and pipeline, professional development, Leader-member exchange theory

Unit 3: Politics, power and Influence LH 8

The nature of organizational politics, Use of political behavior, guidelines for developing political
skills, Power and leadership, sources of power, types of power and influencing tactics, credibility,
compliance-gaining strategies, developing argumentative competence, Negotiating, the leader as
negotiator, the process of negotiation, resisting influence.

Unit 4: Leadership in Groups and Teams LH 8

Use of teams in organizations, Fundamentals of group interaction, Basic and advance skills of team
leaders, Making team effective, emergent leadership, leadership skills in effective team meetings,
group decision making, team leadership, fostering team leadership, self-managed teams.
Unit 5: Leadership, Culture and Diversity LH 8
Leadership in different cultures, the leader as culture maker, the leader as sense maker, intergroup
leadership, the power of expectation: the Pygmalion effect, managing diversity, understanding
cultural differences, benefits of embracing diversity, the downside of diversity, fostering diversity,
effect of globalization on diversity leadership.

Unit 6: Ethical Leadership and Followership LH7

Personal values, organizational practices that foster an ethical work environment, authentic
leadership, factors influencing ethical behavior, justifying unethical behavior, guides to ethical
behavior, Roles and responsibilities of followers, trusting relationships, strategies to promote
followership.

Text and Reference

Hackman, M. Z. and Johnson, C.E. Leadership: a Communication Perspective, Waveland Press
Johnson, C.E. and Hackman, M.Z. Creative Communication, Waveland Press.
Haldar, U.K. Leadership and Team Building, Oxford
Achua, C.F. and Lussier, R.N. Effective Leadership, CENGAGE Learning
Rowe, W. G and Guerrero L. Cases in Leadership, Sage.
MGT 668: Organization Theory
(Management Specialization)
Credits: 3
Lecture Hours: 48
Course Objective
This course deals with the organization theory from its origins through to the most recent debates.
Understanding of different theories or organization enhances capacity to comprehend what goes on in
organizations. Thus, this course aims to provide a clearly structured and interesting exploration of the ways in
which the verity of theories perspectives that constitute organization theory provide profound challenges for
organizations in the 21st century.

Course Description
This course contains introduction of organizational theory, modernism and neo- modernism organizational
theories, post- modernism and reflective organization theories, organization design, structure and
effectiveness, organizational culture and ethics.

Course Details
Unit 1: Introduction LH 7
Concept of organization theory, the relationship between organization theory and human activities,
the relationship between organization theory and management practice, social engineering and
organization theory, critical alternatives to managerialism in organization theory, philosophical
disputes and debates in explaining and understanding organization theories.

Unit 2: Modernism and Neo-Modernism Organization theories LH 13

Concept of modernism, historical roots, overview of modernist organization theory, general system
theory, the organization as a simple machine, mechanistic vs. organic structure, modernist themes in
organizational design, concept of neo-modernist organization theory, human relationship school, neo-
modernist theory challenging organizations, organization culture and design, perspectives and
challenges.

Unit 3: Post- Modernism and Reflective Organization Theories LH 15

Concept of post-modernism, post industrialism and the information society, Neo-Fordism, flexible
specialization and post-Fordism, the key thinkers of post modernism, organizational culture, the
challenges of post-modernism to organizational theory, concept of reflective organization theory,
symbolic interactionism, ethno methodology, developing a sense of self in organizations,
understanding organization as culture through symbols, the development of critical theory
challenging organization theory, the development of psychoanalysis to challenge organization theory;
the challenges of critical theory and psychoanalysis for understanding the individual, the group and
the organization, perspectives and challenges.

Unit 4: Organization Design, Structure and Effectiveness LH 7

Concept, importance, the consequences of poor organizational design, levels of analysis,
organizational stakeholders, top managers and organizational authority, vertical and horizontal
differentiation, bureaucratic structure, the principles and advantages of bureaucratic structure, the
specialization and coordination- functional, divisional, network and matrix structure measuring
organizational effectiveness, factor affecting organizational effectiveness.
Unit 5: Organizational Culture and Ethics LH 6
Concept of organizational culture, transmitting culture to organizational members, genesis of culture
in organization, managing organizational culture, concept of ethics in organization, ethical and
unethical behavior, factors influencing ethical behavior, justifying unethical behavior, guides to
ethical behavior, approaches to corporate social responsibility.

Text and Reference Books:

McAuley, J. and Duberley, J. Organization Theory: Challenges and Perspectives, Prentice-Hall.
Jones, G.R. Organizational Theory: Text and Cases, Addison-Wesley Publishing company.
Jones, G.R. and Mathew, M. Organizational Theory, Design, and Change, Pearson.
Cummints, T.G. and Worli, C.G. Theory of Organization Development and Change, CENGAGE Learning.
MGT 667: Recent Trends in Management
(Management Specialization)

Credits: 3
Lecture Hours: 48
Course Objective
This course aims to acquaint the students with the recent trends of developments in the field of management.
The topics selected in this course are published in Harvard Business Review.

Course Description
This course contains Management System and Strategy for Competitive Advantage, Leadership, Knowledge
and Innovation, Motivation and Team work, Talent Management.

Course Details
Unit 1: Management System and Strategy for Competitive Advantage LH 11
 The Simple rules of strategy (Sept 2002, HBR, p.68)
 Picking the right transition strategy (January2009, HBR,p.34)
 The chief strategy officer (Oct 2007,HBR, p.84)
 Implementing a new strategy without disrupting organization (March 2006, HBR, p.100)
 Managing your Mission (Jan\ Feb 2015, HBR, p.86)
 Case Discussion

Unit 2: Leadership LH 8

 Becoming the boss (Jan 2007, HBR, p.48)

 How successful leaders think (June 2007,HBR, p.60)
 Leadership in the age of transparency (April 2010,HBR, p.38)
 The real leadership lession from steve jobs. (April 2012, HBR, p.94)
 The Leadership Lessions from India (March 2010, HBR, p.90)
 Case Discussion

Unit 3: Knowledge and Innovation LH 10

 Where important innovation takes place (Sept 2012, HBR, p.44)
 Redesigning Knowledge work (on future of Knowledge) (Jan\Feb2013,HBR, p.60)
 Sustainability as a key driver of innovation (Sept 2009, HBR, p.56)
 10 rules for managing Global innovation. (Oct 2012, HBR, p.84)
 Case Discussion
Unit 4: Motivation and Team work LH 11
 The new science of building great teams (April 2012,HBR, p.60)
 Why team don’t work (May 2009, HBR, p.77)
 How GE teaches teams to lead change (Jan 2009, HBR, p.87)
 Managing multicultural teams. (Nov 2006, HBR, p.84)
 Case Discussion

Unit 5: Talent Management LH 8

 Winning the race for talent in emerging market (Nov 2008, HBR,p.62)
 How to keep your top talent (May 2010, HBR, p. 54)
 The Battle for female talent in emerging markets (May 2010,HBR, p.101)
 Make your company a talent factory. (June 2007, HBR, p.68)
 The Rise (and likely fall) of the Talent Economy (Oct 2014, HBR, p.36)
 Case Discussion
MKT 659: Brand Management
(MBS-MKT specialization)

Credits: 3
Lecture Hours: 48
Course Objective
This course aims to build students’ understanding of the managerial issues related with development and
management of brands.

Course Description
This course provides a strategic perspective for building and managing brands. The course includes
branding fundamentals, brand building process, brand equity, brand positioning and values, brand
marketing programs, brand researches, and brand management strategies.

Course Details
Unit 1: Introduction LH 4
Meaning of brand and branding. Objectives of branding. Brand anatomy. Importance of
branding. Brand architecture. Brand hierarchy. Branding challenges of the 21st Century.

Unit 2: Strategic Brand Building Process LH 4

Strategic process for brand building. Brand vision and organization culture. Strategic audit.
Identifying branding opportunities. Brand values. Brand identity and image. Brand positioning
and USP. Brand personality. Brand experience.

Unit 3: Brand Equity LH 8

Concept of brand equity. Brand equity benefits. Measurement of brand equity. The Customer-
based Brand Equity model. Asker's model. Brand Z model. The Brand Dynamics Pyramid model.
Brand Asset Valuator model. Financial valuation of brand equity. Problems in brand valuation.
Valuation approaches. Models for financial valuation.

Unit 4: Brand Positioning and Values LH 8

Brand positioning concept. Types of brand positioning. Strategic brand positioning
Brand positioning process. Brand values. Value proposition canvas. Core brand values. Brand
mantra: Designing a brand mantra. Implementing brand mantra. Internal branding: concept and
process.

Unit 5: Brand Marketing Programs LH 8

Brand building process. Brand element strategy: Choice of brand name, logos and symbols, color,
shape, typeface, scale, brand characters, slogans, jingles and sound signals, packaging, Uniform
Resource Locators (URLs). Brand marketing program: Product strategy: perceived quality and
relationship marketing. Customer-brand relationships. Brand pricing strategy – value based
pricing. Channel strategy and brand. Role of advertising in brand-building. Integrated
Communication Mix for brand building. Leveraging secondary associations. Key brand
leverages.

Unit 6: Measurement of Brand Performance LH 8

Importance and areas of brand research. Qualitative tools and research methods. Brand
knowledge measurement. Brand awareness measurement. Metrics for brand awareness
measurement. Brand image measurement. Brand tracking studies. Brand purchase intention
measurement. Brand loyalty measurement. Brand positioning measurement. Quantitative
research tools in brand measurement.
Unit 7: Brand Management Strategies LH 8
Brand value chain. Designing branding strategies. Brand-product relationship (Matrix). Brand
portfolio management. Brand extension strategy. Brand management over time: Brand
reinforcement strategies, Brand revitalization strategies, Brand retirement and rejuvenation
strategies .

References
Keller, K. L., Strategic Brand Management, Pearson Education: New Delhi.
Aaker, D. A., Managing Brand Equity, Free Press: New York.
Koirala, K.D. Brand Management Strategy, M.K. Publishers and Distributors: Kathmandu.
MKT 657: Consumer Behavior
(MBS-MKT specialization)

Credits: 3
Lecture Hours: 48

Course Objective
This course provides the theoretical basis for analyzing consumers’ purchase behaviors and their
applications in various areas of marketing.

Course Description
Consumer behavior analysis is the basic science of marketing and provides a deep understanding of the
buying process and buying reasons of the end users of products and services. It includes topics on the use
of the consumer behavior analysis in business and non-business decisions, buying process of consumers,
individual and socio-cultural determinants of consumer behavior.

Course Details
Unit 1: Introduction LH 6
Concept and nature of consumer behavior. Application of consumer behavior knowledge in
business decisions, marketing management, social marketing, and public policy decisions. The
microeconomic and behavioral economics’ explanation of consumer behavior. Simple input-
output based model of consumer behavior.

Unit 2: Consumer Buying Decision Process LH 12

Consumer buying decision process in high-involvement and low involvement purchase situations.
Problem/need recognition: Consumer problem recognition process, types of consumer problems,
results of problem recognition. Marketing implications of problem recognition. Information
search: Types of information sought, sources of information, amount of information gathered.
Marketing implications of the information search process. Evaluation: Evaluative criteria,
Reducing range of alternatives, Evaluation of alternatives. Marketing implications of evaluation.
Purchase: Brand choice factors and determinants of brand loyalty. Impulse buying behavior. Store
choice factors and determinants of store loyalty. In-store purchasing behavior. Situational
Influences in buying. Non-store purchasing behavior. Marketing interventions in purchase
decisions. Post purchase behavior: Consumer satisfaction and dissatisfaction. Consumer
complaint behavior. Cognitive dissonance and solutions. Product disposition behavior.
Marketing implications of the post purchase outcomes.

Unit 3: Individual Determinants of Consumer Behavior LH 18

Consumer Motivations: Nature and role of consumer motives, Classification of motives –
Maslow’s hierarchy and McGuire’s classifications. Motive arousal process. Marketing
implications of consumer motivations.
Personality, Self-concept, and Lifestyle: Personality Theories – Psychoanalytical theory, Social
theories and trait theory. Applications of personality in marketing. Self-concept: types of self.
Product image congruence. Life style – measurement and applications.
Consumer Information Processing and Perception: Information processing framework.
Information Acquisition, Perceptual Encoding, and Interpretation.
Consumer Learning and Memory: Learning Characteristics and Elements. Types of Consumer
Learning - Classical conditioning, Instrumental conditioning, and Vicarious Learning. Marketing
applications of consumer learning. Consumer memory systems – storage, retrieval and forgetting.
Advertising applications of consumer memory.
Consumer Attitude: Attitude characteristics and functions, Attitude formation process. Attitude
theories and models – Congruity theory, balance theory, Fishbein’s structural models. Attitude
Change – low and high-involvement strategies. Persuasive communications and attitude change.

Unit 4: Socio-environmental Determinants of Consumer Behavior LH 12

Social groups: Types of social groups. Group properties. Influence of reference group on
consumer behavior. Influence of opinion leaders and word-of-mouth communications.
Family influences: Family purchase roles. Family life cycle – traditional and modern. Influence
of family in household and individual purchases. Consumer socialization and spousal role in
family purchase.
Social class: Social class stratification and characteristics. Social class’s influence in consumer
behavior. Social classes in Nepal and consumption behavior.
Culture and Sub-culture: Characteristics of culture. Nepalese core cultural values and adopted
cultural values and their implications in consumer behavior. Sub-cultural consumption
dynamism in Nepal.

References
David L. Louden and Albert J. Della Bitta, Consumer Behavior, Tata McGraw Hill, New Delhi.
Del I. Hawkins, Roger J. Best and Kenneth . Coney, Consumer Behavior, Tata McGraw Hill, New Delhi.
Leon G. Schiffman, Consumer Behavior, Prentice Hall Of India, New Delhi.
Krishna, Rajneesh, Consumer Behavior, Oxford University Press, New Delhi.
MKT 661: Retail Management
(MBS-MKT specialization)

Credits: 3
Lecture Hours: 48
Course Objectives
This course aims to build students' understanding of the retail operations, management, and marketing. By
the end of this course, students should be able to comprehensively understand the nature, process, and
strategies of retail business and perform basic retail management functions including analyzing retail
customers, managing merchandise and supply chain, and effectively manage the retail marketing mix.

Course Description
This course deals on the marketing aspects of retail business and includes topics such as the retail
environment, retail organization, retail shopping behavior, category management, supply chain
management in retail business, retail outlet design, and retail marketing mix management.

Course Details
Unit 1: Retail Environment LH 6
Meaning of retailing. Functions of retailing. Types of retail operations- in store and of-store
retailing. Recent trends in retail business – e-tailing, department stores, supermarkets,
hypermarkets, discount stores, mall-retailing, and specialty stores. Success factors in retail
business. The retail scenario in Nepal.

Unit 2: Retail Consumer Behavior LH 6

Consumers’ reasons for retail shopping. The retail shopping process and behavior. Key influences
in retail shopping - demographic, psychological, environmental, and life-style influences on retail
shopping.

Unit 3: Category and Supply Chain Management LH 12

Factors influencing category management – consumer dynamics, competition, and technology.
Category management process – strategic and operational decisions. Managing category mix.
Concept and importance of supply chain management. Factors influencing successful supply
chain management. Framework for supply chain management. Supply chain business process.
Supply chain components.

Unit 4: Retail Buying, Store Layout and Design LH 12

Retail buying objectives. Organizational buying process and behavior. Functions and
responsibilities of a retail buyer. Merchandise and assortment plans – concept and planning
process. Group buying. Concept and objectives of store layout and design. Circulation planning.
Circulation graphics. Store fronts and entrance designs. Merchandise display – fixtures and
positioning. Material choice – floors, interior walls, ceilings. Lighting of retail outlets. Music and
signage graphics.

Unit 5: Retail Marketing Mix LH 12

Retail brand management – importance of retail brand, retail brand equity, and store loyalty
factors. Retail promotions – promotion mix for retailing, sales promotions, and point of purchase
communications. Retail pricing – pricing objectives, pricing approaches, strategies and tactics.
Retail atmospherics – role of atmospherics, components, and color planning. Customer
relationship management – concept of CRM, personalization, special treatments, communications
and rewards. Customer loyalty programs in Nepal.

References
Bajaj, Chetan, Rajnish Tuli and Nidhi Srivastava, Retail Management, Oxford University Press.
David Gilbert, Retail Marketing Management, Pearson Education.
Sinha, P.K. and Dwarika P. Uniyal, Managing Retailing, Oxford University Press.
MKT 660: Sales Management
(MBS-MKT specialization)
Credits: 3
Lecture Hours: 48

Course Objective
This course aims to provide students with the knowledge and skill in developing as well as
implementing sales management strategies and managerial techniques in the real business world.

Course Description
This course contains introduction of sales management, planning the sales organization, Sales
Force Management, Sales Forecasting and Management of Sales Territories and Sales Quotas,
Channel. Decision in Sales Management, Management of Sales Promotion, International Sales
Management, Sales Evaluation and Control.

Course Details
Unit 1: Introduction LH6
Concept and Evolution of sales management; Nature and role of salespeople and sales manager in
sales management; Relation of sales management with marketing management; Review of sales
process; Theories of sales management – The AIDAS approach, The RIGHT SET OF
CIRCUMSTANCES APPROACH, The BUYING FORMULA approach, and The
BEHAVIORAL EQUATION approach; Objective and Sales Management Process – Planning the
sales organization, Recruitment and selection of Sales force, Training and motivating the sales
personnel, Supervising and controlling the sales force performance;
Unit 2: Planning the Sales Organization LH 5
Concept and Evolution of sales department; Principles of sales organization; Process of setting up
a sales organization – Defining objectives, Determination of activities and their volume of
performance, Grouping activities into positions, Assignment of personnel to positions, Provision
for coordination and control; Organizational Design – Line organization, Territorial
organization, Functional organization, Product-based organization, Customer-based
organization, combined organization; Factors affecting sales organization structure;

Unit 3: Sales Force Management LH 6

Tasks of sales force management; Designing the sales force strategy; Recruiting and selecting the
sales people; Challenges in sales force selection; Training the sales force – Objective and
principles of sales force training, Process of sales force training, Methods of training; Directing
and motivating the Sales force – Nature of directing the sales force, Nature and importance of
motivation, The process of motivation, Factors influencing the motivation of the sales force;
Compensating the sales people – Objective and characteristics of an effective compensation plan,
Types of sales force compensation, Steps in designing a compensation plan; Supervising and
controlling the sales force performance;

Unit 4: Sales Forecasting and Management of Sales Territories and Sales Quotas LH 7
Concept, approaches and methods of sales forecasting; Reasons for establishing and not having
sales territories; Procedure for setting up sales territories; Assignment of sales personnel to
territories; Essential components of territorial management – Allocation of sales quota, account
analysis, develop account objectives and sales quotas, customer sales planning, scheduling and
routine, territory and customer evaluation; Types and methods of sales quotas; Methods of
setting sales quotas; Problems/reasons for not using sales quotas;
Unit 5: Channel Decision in Sales Management LH 4
role of channel decision in sales management; Methods of distribution; Distribution channels for
consumer and industrial products; Role of wholesalers and retailers in sales management; Nature
of channel conflicts; Methods of resolving channel conflicts; Physical distribution and logistics
management;

Unit 6: Management of Sales Promotion LH 4

Concept and Types of sales promotion – Consumer promotion, trade or dealer promotion,
business or business-to-business promotion, sales force promotion; Benefits and drawbacks of
sales promotion to manufacturers, consumers, and traders; Coordinating sales promotion with
advertising and personal selling; Evaluation of sales promotion – at pre-testing stage, at
concurrent testing stage, and at post testing stage;

Unit 7: International Sales Management LH 6

Features and opportunities of international sales; Methods of selling in foreign markets; Sources
of identifying overseas distributors; Referral marketing techniques in international sales;
Challenges of international sales.

Unit 8: Sales Evaluation and Control LH 6

Need of sales evaluation and control; Process of sales control; Tools of sales control and analysis
– Sales audit, Market audit, Sales force expense analysis; Methods of measuring sales
organization effectiveness – sales analysis, marketing cost analysis, classification of marketing
expenses, credit control, market share analysis, budgetary control, ratio analysis, management
objectives (MBO);

Reference Books
Futrell, Charles M., Sales Management: Teamwork, Leadership and Technology, Thomson South-
Western, United States, 2003.
Havaldar and Cavale, Sales and Distribution Management: Text and Cases, Tata McGraw Hill
Education Private Limited, New Delhi, 2011.
Panda and Sahadev, Sales and Distribution Management, Oxford University Press, New Delhi, 2012.
Still, Cundiff and Govoni, Sales Management: Decisions, Strategies and Cases, Prentice-Hall of India,
Priate Limited, New Delhi, 2008.
Shrestha, Shyam K., Fundamentals of Selling: a professional approach, Asmita Books & Distributors
(P) Ltd., 2010.
MKT 658: International Marketing
(MBS-MKT specialization)

Credits: 3
Lecture Hours: 48

Course Objective
This course aims to provide an understanding of the process and dynamism of marketing practiced across
the international markets.

Course Description
This is a comprehensive course that deals on the process and challenges of international marketing. The
course includes topics such as scope and challenges of international marketing, dynamism in international
trade, the cultural, political, and legal international environment, global marketing strategies, regional and
multinational trade arrangements, and structure and dynamism in Nepal’s international trade.

Course Details
Unit1. Introduction LH 6
Concept and growth of international marketing. International marketing tasks. Stages of
international marketing involvement. Strategic orientations in international marketing. The
dynamism in international trade – trade barriers, balance of payments, protectionism, tariffs,
quotas, and embargoes. Movements against trade restrictions – GATT and WTO. Regional
trading blocks.

Unit 2. International Marketing Environment LH 12

Cultural environment: Concept and origins of culture. Elements of culture. Cultural barriers in
international trade. Importance of international cultural knowledge and cultural change in
marketing. Bribery and corruption in international marketing.

Political environment: Sovereignty of nations. Political risks of international business. Political

vulnerability assessment and risk minimization strategies.

Legal environment: Bases of legal systems. Jurisdictions in international legal disputes and
dispute resolution methods. Green marketing and antitrust laws.

Unit 3: International Marketing Research LH 8

Scope of international marketing research. Process of research – problem identification and
research objectives, availability of secondary data, gathering primary data through quantitative
and qualitative research, multi-cultural research, research on the Internet.

Unit 4: International Marketing Management LH 12

Product development for international markets – quality, green marketing, and adaptation issues.
Marketing opportunities in services. Challenges of managing brands globally. International
marketing channels – distribution patterns in international markets. Marketing intermediaries and
choice factors. Locating, selecting, and motivating middlemen. Communications – Integrated
marketing communications in international marketing. International advertising goals and
strategy. International pricing – approaches to international pricing, price escalation and its
effects, leasing and dumping in international markets, countertrade. Transfer pricing strategy.
Unit 5: Nepal’s International Trade LH 10
Structural dynamism in Nepal’s foreign trade. Import and export sources. Import and export
procedures and documentations. Institutional mechanism for international trade – Public, private,
and non-governmental agencies for trade and export promotions. Key problems in Nepal’s
international trade. Emergence of WTO and its impact in Nepal’s trade regimes. SAPTA and
SAFTA.

References
Cateora, Philip, John Graham, and Prasant Salwan, International Marketing, Tata McGraw Hill.
Terpstra, Vern and Ravi Sarathy, International Marketing, Dryden Press.
Jain, Subhash, International Marketing Management, CBS Publications.
MKT 663: Service Marketing
(MBS-MKT specialization)

Credits: 3
Lecture Hours: 48

Course Objective
This course aims to develop students’ understanding of the strategic issues related to marketing of
services.

Course Description
The unique nature of services requires a different marketing approach and strategy than that
traditionally used for marketing of goods. Through this course students are expected to learn the
nature of services and service marketing; measurement of service customers’ expectations and
perception; service quality; and management of the service product mix. By the end of this course,
students should be able to understand importance of services and service marketing; demonstrate a
detailed understanding of the service quality management issues; and develop their analytical
perspectives on management of the service marketing mix management.

Course Details
Unit 1: Introduction to Services and Services Marketing LH 12
Meaning of service. Perspectives on services. Nature of service products and its
management challenges. Types of services. Role of services in the economy. Services
marketing: concept and nature. Reasons for the development of service marketing.
Importance of service marketing to a firm. The service marketing mix (7Ps). The service
marketing triangle: external, internal and interactive marketing in services.

Unit 2: Customers’ Expectations and Perceptions of Services LH 8

Customers’ expectations: concept, levels of customers’ expectations and zone of tolerance.
Sources of customers’ expectations. Customers’ perceptions: concept, areas of perception,
customer satisfaction determinants, customers’ evaluation of the service outcomes,
measurement of satisfaction.

Unit 3: Service Quality and Encounter Management LH 12

Service Quality: Approaches to service quality - traditional and contemporary approaches.
Main drivers of service quality: people, process, and service product. Dimensions of service
quality. The service quality gaps model: reasons for the gaps and possible strategies to
reduce the gaps. Measurement of service quality: The SERVQUAL instrument. Service
Encounter: Concept and types of encounter. Service encounter and customer participation.
Encounter characteristics. Areas of service failures. Service failures and customers’
complaints. Service recovery: concept and strategies. Service guarantees: importance and
types.

Unit 4: Service Marketing Mix Management LH 16

Service product management: new service development – the systematic approach, new
service development process. Branding and positioning of a service product. Service
distribution: distribution options and strategic decisions. Location of service outlets. Service
pricing: The uniqueness of service pricing. Approaches to service pricing. Service
promotions: IMC for services. Promotion strategies in services. People: managing internal
people (employee) – service vision, mission and culture. The service profit chain. Managing
external people (customers) – customer care and customer participation in services. Process:
Types of service processing. The service process matrix. Physical evidences and services
capes: concept and role of physical evidences. Types of service scapes. Services capes’
impact on customers and employee.
References
Zeithamel, Valerie, Mary Jo Bitner, Dwayne Grembler, and Ajay Pandit, Services Marketing,
MeGraw Hill India.
Bhattacharjee, C, Services Marketing, Excel Books India.
Apte, Govind, Services Marketing, Oxford University Press.
MGT 519: Managerial Communication
Credits: 3
Lecture Hours: 48

Course Objectives
This course, while familiarizing students of advanced Business Studies with the foundational theory of
business communication, offers an intensive practice of effective business communication-written, oral,
verbal, and non-verbal – so that Business Graduates can apply the skills learned in their career and
beyond. Besides orienting students to basic theories of effective communication, the course also includes
a practicum component in that students towards the end of the semester will have submit a completed
writing portfolio that includes a range of writing assignments such as business correspondences, business
report, and a dossier for job application. The course follows the seminar model of classroom teaching, in
which students participate in in-class discussions and presentations.

Course Description
This course contains understanding the foundations of business communication, writing letters, memos, e-
mails, and instant messages, writing reports and proposals, oral and non- verbal communications,
preparing a dossier for employment.

Course Details
Unit 1: Understanding the Foundations of Business Communication LH 6
 Achieving success thorough effective business communication
 Communicating in teams and mastering listening and non-verbal communication
 Communicating inter-culturally

Applying the three-step writing process

 Planning business messages
 Writing business messages
 Completing business messages

Unit 2: Writing Letters, memos, e-mails, and instant messages LH 6

 Writing routine and positive messages
 Writing negative messages
 Writing persuasive messages

Unit 3: Writing Reports and Proposals LH 8

 Planning reports and proposals
 Writing reports and proposals
 Completing reports and proposals
Unit 4: Oral and non-verbal communications LH 6
 Non-verbal communication
 Public speaking
 Conducting and participating in meetings
 Interviewing and getting interviewed

Unit 5: Preparing a dossier for employment LH 6

 Constructing resume
 Writing job letters
 Applying and interviewing for employments

Practicum: LH 16
 At least one 10 to 15 minute oral presentation
 At least three business correspondences (topic will be given)
 At least one mid-length report
 Mock meetings and interview sessions
 Dossier for job application

Required Texts
Courtland L. Bovee and John V. Thill, Business Communication Today
Occasional handouts.

Reference Books
R.V. Lesikar and J.B. Pettit, Business Communication (Prescribed)
R.V. Lesikar and M.E. Flatley, Basic Business Communication (Prescribed)
Robert G. Insley, Communicating in Business in the 21st Century (highly recommended)
Baden Funson, C21: Communicating in the 21st Century (highly recommended)
MGT 513: Human Resource Management (HRM)
Credits: 3
Lecture Hours: 48

Course Objectives
The main objective of this course to familiarize students with the concepts and practices of human
resource management. This course provides an overview of the HRM on an organization. The course
will focus primarily on six major areas: Introduction to HRM, Job Design and Analysis, Human Resource
Planning, Recruitment, Selection and Socialization, Human resource Development, Performance
Evaluation and Compensation Management.

Course Description
This course contains introduction to HRM, job design and analysis, human resource planning HRP,
recruitment, selection and socialization, human resource development-and training and development,
career planning, performance evaluation and compensation management, labour relations and collective
bargaining.

Course Details
Unit 1: Introduction to HRM LH 7
Concept, Developments in HRM Concepts, The Rising Interest in HRM, HRM Environment, HR
challenges, Characteristics of HRM, Personnel Management vs. HRM, Strategic HRM, HRM and
corporate performance, globalization and HR policy, Human resource Management in Nepal.

Unit 2: Job Design and Analysis LH 7

Concept of Job Design, Approaches, Impact of Job Design, Autonomous work group, Concept of
Job Analysis, Purposes of Job Analysis, Methods for collecting Job Analysis Information, Job
Analysis Techniques, Writing Job Descriptions and Specification.

Unit 3: Human Resource Planning (HRP) LH 6

Concept, HRP Process, Human Resource Information System, Relationship between HRP and
Strategic Planning, Techniques of Forecasting HR Demand and Supply, Managing Human
Resource Surplus, HRP practices in Nepalese Organizations, Talent management.

Unit 4: Recruitment, Selection and Socialization LH 6

Concept, Methods and Sources of Recruitment, Recruitment Process, Concept of Employee
Selection, Process of Selection, The Selection Interview, Selection Tests, Limitations of
Interview Concept and Process of Socialization, Recruitment and selection process in Nepal.

Unit 5: Human Resource Development- and Training and Development LH 6

Concept of Human Resource Development (HRD), Need for HRD, Training and Development-
Concept, Determining Training Needs, On-the-Job and Off-the-Job Training and Development
Techniques, Evaluation of Training, Practices of Training in Nepalese Organizations.

Unit 6: Career Planning LH 4

Concept. Objectives of career planning. Stages of career development Need of career planning.
Individual career counseling and mentoring. Process of career planning and development, Career
planning in Nepalese organizations.
Unit 7: Performance Evaluation and Compensation Management LH 6
Concept, performance management, issues in performance management, Selection of
performance evaluation criteria, performance evaluation methods, problems of performance
evaluation. Compensation, Types of Compensation, Consideration for Determining
Compensation, Job Evaluation Process and Methods, Employee Benefits, Types of Benefits, The
Legal Environment and Pay System Governance in Nepal.

Unit 8: Labour Relations and Collective Bargaining LH 6

Concept, Actors and process of labour relations, Unionism, Reasons for joining unions, Effects
unions, issues in collective bargaining, Labour disputes and grievances procedures,
Contemporary issues in labour relations in Nepal.

Reference Books:
Armstrong, M., A Handbook of Human Resource Management, NewDelhi: Aditya Books.
Adhikari, D.R., Human Resource Management, Buddha Publication.
Bernardin J.H. , Human Resource Management : An Experiential Approach, McGraw-Hill.
Cascio, W., Managing Human Resources, McGraw-Hill.
Decenzo, D.A., Fundamentals of HRM, Wiley.
Dessler, G. and Varkkey, B, Human Resource Management, Pearson.
MGT 515 Organizational Behavior
Credits:3
LectureHours:48
Course Objectives
The major objectives of this course is to provide students with an in-depth understanding of behavioral
processes and thereby enable them to function more effectively in their present or future roles as
managers of human resources.

Course Description
This course families student on different dimension organizational behavior. The course contain
comprises: introduction, understanding individual behavior, perception, individual decision making and
learning in organizations, personality and positive organizational behavior, motivation, job satisfaction
and stress management, groups and teams in organizations, leadership, communication, conflict and
organizational change and development

Course Details
Unit 1: Introduction LH 5
Concept of organizational behavior, Environmental context of OB-globalization, diversity and
ethics, Basic assumptions of OB, Contributing disciplines to the field of OB, challenges and
opportunities for OB.

Unit 2: Understanding Individual Behavior LH 3

Behavior as an input-output system. Mental process-beliefs, attitudes, values, needs, motives and
behavior.
Unit 3: Perception, Individual Decision Making and Learning in Organizations LH 5
Concept of perception, perceptual process, factors affecting perception, specific application of
perception in organizations, the link between perception and decision making in organizations,
individual differences and organizational constraints. Concept of learning, Learning theories,
Factors influencing learning, Principles of learning, behavior modification.

Unit 4: Personality and Positive Organizational Behavior LH 6

Concept, Personality traits and characteristics, Determinants of personality, linking an
individual's personality and values to the workplace, Major personality attributes influencing OB,
application of personality traits and characteristics at work place. Self-efficiency, optimism, hope
resiliency, psychological capital, and other positive constructs.

Unit 5: Motivation, Job Satisfaction and Stress Management LH 6

Work motivation theories, motivational application through job design, motivational application
through goal setting, Concept and cause of job satisfied and dissatisfied employees on the
workplace. Concept of work stress, sources of stress, individual differences, consequences of
stress and managing stress.
1
Unit 6: Groups and Teams in Organizations LH 5
Concept of group and group dynamics, the dynamics of group formation, types of groups, The
dynamics of informal groups, nature and significance of informal groups, group decision making,
concept and nature of teams, Types of teams, Team processes.

Unit 7: Leadership LH 4
Concept, Theories of leadership-behavioural theories, contingency theories, leader-member
exchange (LMX) theory and decision theory, leadership skills, contemporary issues in leadership.

Unit 8: Communication LH 4
Concept, Function and process, Types, Barriers to effective communication ,overcoming barries,
interactive communication in organizations, current issues in communication.

Unit 9: Conflict LH 5
Concept, nature, types and sources of individual and group level conflict, Dynamics of intergroup
conflict, approaches to conflict management, application of conflict management at work place.

Unit 10: Organizational Change and Development LH 5

Concept, Forces of change, Resistance to change, Approaches to managing organizational
change, creating culture for change, Concept and characteristics of organizational development
(OD), OD values, OD interventions at individual, group and organizational level.

Text Book:
Robbins, S.P., Organizational Behavior, New Delhi: Pearson.
Luthans, L., Organizational Behaviors: an Evidence-based Approach, New Delhi: McGraw Hill.
Newstorm, J.W., Organizational Behavior: Human Behavior at Work, New Delhi: Tata McGraw_Hill
Publishing company.
Arnold, H.J. and Fieldman, D.C. Organizational Behavior.New York: McGraw Hill Book Company.
Asathappa, K.Organizational Behavior.(8th Edition), New Delhi: Himalayan Publishing House.
Dwivedi, R.S. Human Relations and Organizational Behavior: A Global Perspective. New Delhi:
Macmillan India Limited.
Adhikari, D.R. Organizational Behavior. Kathmandu: Buddha Academic Enterprises Pvt. Ltd.
Fred, L. Organizational Behavior. New Delhi: McGraw Hill International.
Hellriegel, D., Slocum, J.W. and Woodman, R.W. (2001).Organizational Behavior.Singapore: South
Western College Publishing.
Moorhead, G. and Griffin, R.W. (2000).Organizational Behavior.New Delhi: AITBS Publishers.

2
MGT 518: Business Environment in Nepal
Credits: 3
Lecture Hours: 48
Course Objectives
The aim of this course is to help students develop the ability to evaluate the impact of business
environmental factors on business firms and how these firms should respond to them. This course
therefore examines the relationship between business organizations, their functional areas, and
the environments – economic, social, political, regulatory, global, and technological - that affect
them. This course also provides students with frameworks and skills to anticipate and address
these environmental challenges, both to recognize business opportunities and to mitigate business
risks, and to execute on these strategies.

Course Description
The course looks at the process of business environment at three levels: firms, national, and
global. The purpose is to develop a solid understanding of the external, economy-wide factors
that affect the performance and management of Nepalese business firms. The main topics covered
in the course are: the business-environment interaction, analysis of the economic, political, social,
cultural, legal, and technological environments and their effects on international business; trade
policy instruments and implications for business; economic policies and reforms, corporate social
responsibility; globalization and regional economic integration, multinational corporations; major
drivers behind, and barriers to, foreign direct investment; impact of international institutions and
organizations like WTO on Nepalese business.

Course Details
Unit 1: Introduction LH3
Concept; Business system and its environment; Classification and components of
business environment; Process and techniques of environmental analysis; Business
environment analysis for strategic management.

Unit 2: Economic Environment LH16

An overview of the Nepalese economy: Economic structure and dimensions; Economic
indices - National income; Rate and growth of GNP, per capita; Poverty situation;
Distribution of income; Nepal's foreign trade - structure and related issues; Labour
market issues; Foreign employment - trends and issues.
Economic planning: An overview of five year /three year plans of Nepal; Current Plan -
its objectives, targets and strategies applicable to business and industrial sectors;
Millennium Development Goals – parameters and progress in Nepal.
Nepalese economic policies and reforms: Industrial Policy- concept and objectives;
Trade Policy - concept and objectives; Tourism Policy - objectives and characteristics;
Current monetary policy; Economic policy reforms; Emerging business environment in
Nepal.
Agriculture and industrial sectors: Features and issues in Nepalese agricultural sector;
Nepal's industrial sector – structure, performance and constraints.

Unit 3: Political Environment LH4

Political system, its nature, features and significance for business; Political structure;
Political parties, Issues in government-business relations; Government’s role in business;
Political stability issue; Political risk factors and their analysis.
Unit 4: Regulatory Environment LH 8
Constitutional framework; Directive principles; Fundamental rights; Business legislation
in Nepal - Companies Act, 2006; Finance and investment legislation - Foreign
Investment and Technology Transfer Act, 1992; Income Tax Act, 2002; Industrial
Enterprise Act, 1992; Labor Act, 1992; Trade Union Act, 1992; Mines and Minerals Act,
1985; Patent Design and Trade Mark Act, 1965; Copyright Act, 2002; Intellectual
property rights; Consumer protection; Corporate social responsibility and governance
issues in Nepal.

Unit 5: Socio-Cultural Environment LH 5

Concept of socio-cultural environment; Demographic characteristics: Population, its
density and distribution; Changes in population and age composition; Education level;
Social organizations; Class structure and classification; Changing lifestyle patterns;
Family structures and changes; Emerging socio-cultural changes in Nepal.

Unit 6: Global Environment LH 8

Globalization - concepts and forms; Regional economic integration; A brief overview of
the regional economic groupings such as NAFTA, APEC, ASEAN, SAARC, SAFTA and
BIMSTEC; Economic reforms in South Asia; Multinational companies; Foreign direct
investment in Nepal; World Trade Organization (WTO) – Objectives, structure,
principles, agreements and most favoured nation treatment; Benefits of the WTO trading
system; Nepal's membership and commitments - opportunities and threats for Nepalese
business.

Unit 7: Environment, Energy and Technology LH 4

Environment and energy management: Natural environment and pollution issues;
Environment protection legislation and programs; Demand and supply of energy;
Environment and energy management issues.
Science and Technology Policy; IT Policy; Electronic Transactions Act, 2007; Status of
technology in Nepalese businesses; Technology and human factors; Issues related to
management of technology.

Basic Books
Pant, Prem R. Business Environment in Nepal. Buddha Academic Publishers and
Distributors, Kathmandu.
Agrawal, G. R. Dynamics of Nepalese Business Environment. M. K. Publishers, Kathmandu.

References
Aswathappa, K. Business Environment for Strategic Management, Himalaya Publishing
House, Bombay.
Cherunilam, F. Business Environment. Himalaya Publishing House, Bombay.
Relevant laws, literature and cases.
MGT 522 International Business
Credits: 3
Lecture Hours: 48

Course Objectives
The purpose of the course is to provide students with an overview of the importance of international
business and trade in the global economy. It explores the factors and environment the influence success in
international markets and familiarizes students with the basic terminologies, key concepts and issues
related to international business.

Course Description
This course focuses on key aspects of doing business globally, including the forces of globalization; how
business conditions and practices differ from country to country; free trade and protectionism; exporting,
licensing, and foreign direct investment; exchange rates and the complications that arise when dealing
with multiple currencies; and strategic issues for firms operation in international markets. Students will
learn about the techniques and strategies associated with different dimensions of marketing, financial
management, and human resource management, and human resource management which arise in an
international business context.

Course Details
Unit 1: Globalization and International Business LH 4
Concepts of globalization and international business; Forms of globalization; Reasons for
international business expansion; Drivers of market globalization; Domestic vs. international
business.

Unit 2: Theories of International Trade and Investment LH 6

Theory of international trade and investment; Implications of international trade and investment
theories; Existing status of global trade- volume and directions; Nepal's foreign trade-an overview;
Foreign direct investment and portfolio investment-current status and global trends; FDI and
multinationals; Contemporary issues in international trade, FDI and multinational companies.

Unit 3: Global Economy and Regional Economic Integration LH 8

Structure of the global economy; The changing demographics of the global economy; Regional
economy; Regional economy integration-concept, nature and types; Emerging foreign markets;
Economic integration in different conditions; Implications of economic integration; WTO and free
policies-benefits of the WHO trading system; Nepal's participation in regional and multinational
trading systems.

Unit 4: International Monetary and Financial Systems LH 8

International monetary and financial environment- currencies and exchange rate systems; The
nature of foreign exchange market; The floating exchange rate system; Currency convertibility;
Modes of payment in international trade; Currency risk management; Global financial system;
International financial institutions.
Unit 5: International Business Environment and Strategic Management LH 12
Nature and complexity of international business environment; Analysis of environment forces;
Socio- culture forces-complexity of doing business across cultures; Political forces- political risks
and their assessment; Role of strategy in international business; Estimating market potential;
Choosing a strategy; Entering and operating in international markets- exporting and importing,
collaborative ventures and strategic alliances, licensing, franchising; Global outsourcing;
Development competitive strategy.

Unit 6: Functional Areas of International Business LH 10

Global production, outsourcing, logistics and supply chain; Global marketing strategy- global
positioning, branding, product development, pricing, communication, and distribution strategic;
Global e- business; Financial management-source of funds for international operations;
International human resource management-staffing policies, diversity management and labor
relations.

Basic Books

Charles W L Hill and Arun K. Jain. International Business: Competing in the Global Marketplace. Tata
Mc Graw Hill, New Delhi.

Johan S. Hill. International Business: Managing Globalization. Sage Publications. New Delhi.

References Books

J D Daniels,, L H Radegaugh, and D P Sullivan. International Business: Environment and Operations.

Pearson Education. New Delhi.
Oded Shenkar and Y. Luo. International Business. Wiley Publications. New Delhi.
Alan Sitkin and Nick Brown. International Business: Challenges and Choice. Oxford University Press.
New Delhi.
Arhan Sthapti. International Business. Taleju Prakashan. Kathmandu.
Murari Gautam. International Business. Buddha Publications. Kathmandu.
Rakesh Mohan Joshi. International Business. Oxford University Press. New Delhi.
MGT 523: Strategic Management
Credits: 3
Lecture Hours: 48
Course Objectives
The main objective of this course is to familiarize the students with the fundamentals of strategic
management. This course is designed to enrich the students’ apprehensiveness in the application of the
knowledge of strategic management in the organizations in and out the country.

Course Description
This course is core in nature which embodies the components such as strategic management, external
environment analysis, internal environment analysis, strategic options, strategy evaluation and choice, and
strategy implementation and control.

Course Details
Unit 1: Introduction to Strategic Management LH 10
Evolution of strategic management. Characteristics of strategic decisions. Approaches to strategic
decision making(the intuitive-emotional approach, the rational-analytical approach, satisfying
approach, and political-behavioral approach). Components of strategic management: strategic
planning, strategic implementation and strategic control. Importance of strategic management in
Nepal. Strategic plan: mission, objectives, strategies. Levels of objectives and strategies. Paradigm
shift that affect strategic management (change in industry boundary, shifts in mindset, change in
national boundaries, hyper competition, enlarged opportunities, product design, quality and
service, and heavy risks of globalization. Role of chief executive officers (CEO) in strategic
management.

Unit 2: External Environment Analysis LH 7

Nature of environment. Remote and operating environment. Process of environment scanning.
Approaches to environmental scanning. Techniques of environment analysis (PESTEL analysis),
Scenario planning, Porter’s five forces model, Environment threat and opportunity profile (ETOP).
Competitor analysis

Unit 3: Internal Environment Analysis LH 7

Corporate resource analysis for strengths and weaknesses: marketing, human resource,
production/operation, finance and accounting. Process of corporate appraisal: concept of available
resources, threshold resources unique resources, core competencies, distinct competencies, and
strategic advantage. Technique of internal analysis: value chain analysis, comparative analysis(
historical comparison, industry standards, benchmarking), robustness, strategic advantage profile
(SAP), and financial analysis.

Unit 4: Strategic Options LH 10

Generating alternative strategies through SWOT analysis. Resource-based view (RBV) of SWOT
analysis Corporate strategies: stability, growth, and retrenchment. Business strategies, Porter’s
competitive strategy, strategy clock (low price, differentiation, hybrid, focused differentiation, and
failure strategy). Sustaining competitive advantage. Competitive and collaborative strategies.
Directions for strategy development: consolidation, market penetration, product development,
market development, and diversification. Methods of strategy development: internal development,
mergers and acquisitions, joint development, and strategic alliance.
Unit 5: Strategy Evaluation and Choice LH 6
Evaluation criteria: suitability, acceptability (return, risk, and stakeholders’ reaction), and
feasibility. Portfolio analysis for strategic choice: BCG matrix, GE nine cells matrix, Hofer’s
product market evolution matrix, Public sector portfolio matrix. Functional strategy and policies .
Strategic Choice of functional strategy and policies.

Unit 6: Strategy Implementation and Control LH 8

Process of strategy Implementation. Operationalizing the strategy: Annual objectives, functional
strategies, business policies, development of programmes, budgets, and procedure; organization
structures for strategy implementation (simple, functional, multi-divisional, SBU, holding
company, project based, matrix, team-based structure, and structure for multi-national companies);
management system: leadership, motivation, and organizational culture. Managing strategic
change: diagnosing the change situation, change management, levels of strategic change. Strategy
control: evaluation and control, measuring performance, appropriate measures. Types of control:
operational control and strategic control.

Basic References
Jaunch,L., Gupta, R. and Gueck, W. Business Policy and Strategic Management. New Delhi: Frank
Bros. and Company Limited.
Johnson,G. and Scholas, K. Exploring Corporate Strategy. New Delhi: Prentice Hall of India.
Pearce, J.A. and Robinson, R.B. Strategy Formulation and Strategic Management Implementation.
New Delhi: AITBS.
Wheelen, T.L. and Hunger, J.D. Strategic Management and Business Policy. New Delhi: Pearson
Education.

Supplementary Readings
Adhikari, D.R. Strategic Management. Kathmandu: Buddha Academic Enterprises Pvt. Ltd.
Aswatthapa, K. Business Environment for Strategic Management. New Delhi: Himalayan Publishing
House.
Kazmi, A. Business Policy and Strategic Management. New Delhi: Tata McGraw Hill.
Rao, P. S. Business Policy and Strategic Management. Mumbai: Himalaya Publishing House.
MGT 524 Entrepreneurship Developments
Credits: 3
Lecture Hours: 48

Course Objective
The purpose of the course is to prepare students for the possibility of starting their own entrepreneurial
ventures. This course also delineates students on various aspects of social enterprises. The course
emphasizes on improving the skills of the students to identify venture opportunities and prepare a business
plan.

Course Description
The course contains overview of entrepreneurship, creating and expanding social enterprise, environment
for the entrepreneurship development, new venture identification and selection, preparation of business
plan, and institutional support to entrepreneurship development.

Course Details
Unit 1: Overview of Entrepreneurship LH 6
Concept, features, functions, and type of entrepreneur. Role of entrepreneurship in Nepalese
economy and developing economies with reference to self employment. Emerging trends in
entrepreneurship; social entrepreneurship and enterprise types of social enterprise. Role of
technology in social entrepreneurship and characteristics of successful enterprise.

Unit 2: Creating and Expanding social Enterprises and the process of social Innovation LH 14
Sustainability of social enterprise-funding and management. Impact and performance-of social
enterprise, Tools available to measure the impact of social enterprise, creating and spreading
innovation and change through social enterprise, characteristic of a social enterprise. The process of
social Innovation: prompts, inspirations and diagnoses, proposals and ideas, prototyping and pilots,
sustaining, scaling and diffusion and systemic change.

Unit 3:Environment for the Entrepreneurship Development LH 6

Registration of intellectual property right (patent, trademarks, copyright, trade secretes), licensing,
product safety and liability. Insurance and contracts. Economic, legal, socio cultural, political
environment for developing entrepreneurship. Risk associated with entrepreneurship development.

Unit 4: New Venture Identification and Selection LH 11

Business opportunity identification: Sources and methods of generating new ideas. Selection of the
best idea. Feasibility studies: Site selection, factors affecting site selection. Business description:
background, purpose and objectives. Marketing component: Overall market, specific market
competitive factors. Macro environment influence(structural change and cyclical change ).
Marketing strategy and sales forecasts. Financial component: Start-up costs, financial requirement.
Source of funds. Projected profit and loss statement. Projected cash flow statement and analysis of
projected balance sheet. Development and production: Production process and technology, resource
requirement and quality assurance. Organization and management: Key personnel resources, human
resource management strategy. Forms of ownership: Forms of business, equity position and deal
structure. Critical risks and contingencies.

Unit 5: Preparation of Business Plan LH 6

Concept and benefits of the business plan environment analysis search and scanning. Elements of
business plan. Preparation of the business plan. Scheme and strategy of venture launching. Internal
Profit Analysis: Concept, identification, selection of variables and their analysis. Nepalese
government producers to be complied with practical exercise.
Unit 6: Institutional Support to Entrepreneurship Development LH 5
Role of Government in promoting entrepreneurship incentives, subsides and grants. Export oriented
units-Fiscal and Tax concession, role of financial institutes in the entrepreneurship development in
Nepal. Introduction to Entrepreneurship Development Projects in Nepal with reference to IED,
MEDEP and ELAM. (MEDEP,-ELAM).

Basic Books
Dollinger, Marc. J (2003) Entrepreneurship: Strategies and Resources. New Delhi: Pearson Education.
Hisrich, Robert D. and Peter, Michael P. and Shepherd, D.A. (2007) Entrepreneurship. New Delhi: TaTa
McGraw Hill.
Khanka, S.S. (1999) Entrepreneurship Development. New Delhi: S. Chand & Co.
Schwartz,Beverly (2012), Rippling: How Social Entrepreneurs Spread Innovation Throughout the
World, Jossey Bass.
Prahalad, C.K. (2006) The Fortune at the Bottom of the Pyramid, Wharton school Publishing.
Murray, R. Caulier-Grice, S and M. Geoff (2010). The Open Book of Social Innovation, The Young
Foundations.
MKT 511: Marketing Management
Credits: 3
Lecture Hours: 48

Course Objectives
The objective of the course is to equip students with knowledge and skills in order to take decisions
in the area of marketing management.

Course Description
This course deals on the management aspects of marketing. It includes a study of the marketing
system and organization, environment and segment analysis, information systems, demand analysis,
buyer analysis and competitor analysis, strategic marketing planning, implementation of marketing
program and marketing control.

Course Details
Unit 1: Introduction LH 6
 Concept of Marketing and Marketing Management;
 Customer Value and Satisfaction in Marketing;
 Management Orientation Concept in Marketing;
 Implementation of Marketing Management Orientation Concepts;
 Process of Marketing Management – Situation Analysis, Formulation of Marketing Plan and
Program, Program Implementation, and Marketing Control;

Unit 2: Situation Analysis LH 7

 Concept and Scope of Situational Analysis: Organizational / Internal and External Analysis;
 Process of Internal Analysis;
 Environment Analysis;
 SWOT Analysis;
 Techniques of Identifying Marketing Opportunities – SBU Model, BCG Model, GE Model;

Unit 3: Market Segmentation and Target Market Planning LH 7

 Market Research for Identifying Customers;
 Process of Market Segmentation;
 Identifying Market Segments and Selecting Target Market – Consumer Market Vs. Business
Market;
 Developing and Communicating the Positioning Strategies;
 Developing Marketing Plan and Program: Managerial framework, Marketing objectives and
Market performance;
Unit 4: Marketing Information System and Demand Forecasting LH 5
 Marketing Information System;
 Marketing Research System;
 Role of Marketing Information in Marketing Decision Making;
 Demand Forecasting – Current and Future Market Demand;
 Trends in Marketing Information Technology in Nepal and Global Markets;

Unit 5: Competitive Analysis LH 5

 Concept and Types of Competition;
 Key Competitor Analysis;
 Analyzing and Creating Competitive Advantage (Michael Porter's Approach);
 Strategic Response to Competition;

Unit 6: Implementation of Marketing Program LH 9

 Concept and Components of Marketing Program;
 Product Development and Brand Positioning;
 Repositioning the Product in the Market through Product Life-Cycle Analysis;
 Selecting the Pricing Objective and Pricing Methods;
 Adoption of Appropriate Pricing Strategies;
 Managing the Price Changes Market Sustainability;
 Channel and Logistics Management Decision;
 Selecting the Distribution Strategies;
 Promotion and Integrated Market Communication;
 Developing and Selecting the Promotional Strategies;

Unit 7: Marketing Evaluation and Control LH 6

 Concept of Marketing Evaluation and Control;
 Evaluation and Feedback System in Marketing Decision Making;
 Requirements for Effective Evaluation of Marketing Program;
 Methods of Marketing Control – Annual Plan Control, Profitability Control, Efficiency Control,
and Strategic Control.
Unit 8: Marketing Practices in Nepal LH 3
 Formulation and Implementation of Product Strategies;
 Formulation and Implementation of Pricing Strategies;
 Formulation and Implementation of Distribution Strategies;
 Formulation and Implementation of Promotion Strategies;
 Focus on Customer Value and Satisfaction;

Note: At least one case study should be conducted after the completion of each chapter.
Reference Books:
Aaker, David, Strategic Market Management, John Wiley & Sons, Singapore.
Cravens and Piercy, Strategic Marketing, TATA McGraw-Hill, New Delhi.
Kotler, Keller, Koshy and Jha, Marketing Management: A South Asian Perspective, Pearson / Prentice
Hall of India.
Stanton, Etzel and Walker, Fundamentals of Marketing, McGraw-Hill International Editions.
MSC 514: Statistical Methods
Credits: 3
Lecture Hours: 48

Course Objective
The course aims to impart knowledge and skills of statistical techniques and their applications in solving
business problems.

Course Description
This course contains probability, probability distribution, sampling and estimation, testing of hypothesis,
correlation and regression analysis.

Course Details
Unit 1: Probability LH 6
Concept and importance of probability, approaches to probability, additive and multiplicative
probability, conditional probability, Baye's Theorem and decision tree.

Unit 2: Probability distribution LH 6

Concept of probability distribution, Binomial, poisson, and normal distributions and their properties.

Unit 3: Sampling and estimation LH 6

Sampling techniques, sampling and non-sampling errors, sampling distribution, standard error,
Application of standard error in testing of hypothesis.

Estimation theory, criteria of good estimator, point and interval estimate, relationship among errors risk
and sample size, estimation of sample size

Unit 4: Testing of Hypothesis LH 18

Meaning of hypothesis, types of errors in testing of hypothesis, critical region, one tailed and two tailed
test, parametric and non parametric tests, large sample test of mean and proportions, small sample test
of mean and correlation, paired t-test.

Variance ratio test, one way and two way classifications

Non-parametric test: Chi-square test for goodness of fit and independence, chi-square test for
population variance.

Unit 5: Correlation and regression analysis LH 12

Multiple and partial correlation, coefficient of determination, Multiple regression equation, Anova test,
standard error of estimate for multiple regression, Auto correlation and multicollinearity.

Reference Books
Richard I. Levin and David S. Rubin, Statistics for Management, Prentice Hall of India
S.C Gupta, Fundamentals of Statistics, Himalayan Publishing House
Sunity Shrestha and Dhruba Silwal, Statistical Methods, Taleju Prakashan
Pushkar K. Sharma and Arun K. Chaudhary, Statistical Methods, Khanal Publication, Pvt. Ltd.
MSC 521: Research Methodology
Credits: 3
Lecture Hours: 48
Course Objectives
The primary purpose of this course is to introduce students to quantitative and qualitative method for
conducting meaningful inquiry and research. Specifically, course aims at introducing them to the basic
concepts used in research and to scientific social research methods and their approaches.

Course Description
The course provides an introduction to, and a basic grounding in, fundamental research methods as they
relate to the modern practice of management and to academic research. The emphasis of the course is
therefore on problem definition, hypothesis formulation, research design, measurement, sampling,
secondary date gathering, observation and interview, date analysis and report writing. The course thus
enables students to develop their understanding of research methods, and confidence in designing a
research project, choosing and executing appropriate methods, and assessing its academic rigour.

Course Details
Unit 1: The Nature and Context of Social Research LH 6
The concept of research; Types of research; Nature and purpose of research; Scientific research -
scientific research process, feature of scientific research, difficulties of applying scientific methods
to social science research; Management research-concept, types, value of research for decision
making; Ethical issues in management research.

Unit 2: Literature Review LH 4

Concept, purpose and functions of literature review; phases in literature review; searching,
obtaining, and evaluating the literature; Literature search through the Internet; Format and
guidelines for conducting literature review; Meta analysis.

Unit 3: Problem Definition, Theoretical Framework and Hypothesis Formulation LH 8

Problem definition- concept and steps in problem formulation; Research questions- concept and
types; Theoretical framework- concept and need for research; Research and theory- deduction and
introduction; Contributions of research to theory building and practice; Hypotheses Formulation-
concept and function of hypothesis; Type-descriptive, relational, directional, explanatory and null
hypothesis; Criteria of good hypothesis statement.

Unit 4: Quantitative and Qualitative Research Designs LH 9

Definition; Elements of a research design; Classification of research designs- exploratory;
Descriptive; developmental; case study; causal- comparative and experimental research designs;
Common sources of error; Qualitative research- concept, basic assumptions, types and features;
Differences between quantitative and qualitative research; Qualitative research design.
Unit 5: Measurement, Scaling and Sampling LH 6
Variables- concept and types; Scales of measurement; Attitude measurement and scale
construction; Attitude scales commonly used in social science research; Criteria of good
measurement-validity and reliability of measurement; Sources of measurement problems;
Sampling-concept and process; Population and sampling; Types of sampling-probability and non-
probability sampling; Sampling and non-sampling errors.

Unit 6: Data Collection and Analysis LH 8

Data and its types; Sources of primary and secondary data; Important considerations for data
collection; Questionnaire- principles, components and types; Research interview-types and
process; Sources of qualitative data- observation, participant observation, focus groups; Use of
Internet for data collection; Data analysis- Data processing; Presenting data in graphs and tables;
Statistical analysis of data- descriptive and inferential statistics; Hypothesis testing; Methods of
analyzing qualitative data-content, thematic and narrative analysis.

Unit 7: Writing Proposals and Research Reports LH 7

Functions and types of research proposals- solicited and unsolicited proposals; Structure and
contents of academic and funded research proposals. Research reports- concept, process, types and
procedure for writing research report; Conventions of academic writing; Pre- writing concerns;
Components of the research report; Body of the project; Documenting sources- APA style of
citation and referencing; Evaluation of research reports; Essentials of good research report

Basic Books:
Zikmund, W. G. Business Research Methods. Thompson, New Delhi.
Cooper, D.R.and Schindler, P.S. Business Research Methods. Tata McGraw Hill, New Delhi.
Pant,Prem R.SocialScience Research and Thesis Writing.Buddha Academic Enterprises, Kathmandu.

References:
Bryman, A. and Bell, E.Business Research Methods.Oxford University Press, New Delhi.
Flick, U.An Introduction to Qualitative Research. Sage South Asia Edition, New Delhi.
MSC 516: Production and Operations Management
Credits: 3
Lecture Hours: 48

Course Objectives
The course aims at equipping students with the in depth knowledge and skills in production management.
It indicates abilities in the students to apply the acquired knowledge in facility and layout planning,
managing procurement and inventory, designing and implementing aggregate plans and schedules and
control quality, output and costs.

Course Description
This course contains basic concepts and introduction, production planning and scheduling, materials
management, managerial for quality, maintenance management, recent trends in production management.

Course Details
Unit 1: Basic Concepts and Introduction LH 8
Concepts, Functions, Production and Operations systems for manufacturing and service operation,
Strategic roles of production operations, Facility location and Layout Planning: concept and
approaches. Transportation and location: Concept of transportation problem, method for solving
initial basic feasible solution, maximization case in transportation problem.

Unit 2: Production Planning and Scheduling LH 20

Concept, Process for Capacity planning, Process for aggregate planning, Strategies for developing
aggregate planning, Master scheduling and rough cut capacity planning, Aggregate planning for
service organizations, Implementing aggregate plans and master schedules, Scheduling for
intermittent production, Loading : Priority sequencing, Detailed scheduling, finite loading, ,
Assignment: Introduction, objectives, types of assignment problem, methods of assignment
solution, Expediting ; input output control, Optimized production technology (OPT), Linear
programming for capacity decisions and planning: Concept, Properties of linear programming,
Simplex method, Duality in linear programming, Applications including for production planning
and controlling.

Unit 4: Materials management LH 6

Planning for materials needs, Materials requirement planning system (MPR) and its application,
advantages and limitations of MPR, Purchasing procedures, Material handling, Inventory
Management : Inventory costs, Tools, Methods, ABC inventory planning system.

Unit 5: Managerial for Quality LH 8

Concept, Managing for quality products and services, methods of improving quality, Techniques
of quality control, Zero defect production, Statistical Quality control : Concept, control charts and
its types, control chart for variable, x-bar and R-chart, control charts for attributes for P-chart ;
Acceptance Sampling by attributes and variables ; Operating characteristics curve, Construction of
OC curve, IOS 9000.

Unit 6: Maintenance Management LH 3

Concept, Costs of maintenance, types of maintenance, elements of maintenance, basic
maintenance decision.
Unit 7: Recent trends in Production Management LH 3
Concept and type of productivity, overview of Japanese management: total quality management,
KANBAN, KAIZEN, flexible manufacturing system.

Basic Books
Adam, Everelte E. (Jr) and R.J Ebert, Production and Operations Management, New Delhi : Prentice
Hall of India.
Panneer Selvam, R., Production and Operations Management, New Delhi : Prentice Hall of India.
Levin, Richard R, Quantitative Techniques for Management, McGraw Hill, Singapore.

Reference Books
Bedi, K, Production and Operations Management, New Delhi : Oxford.

Chary, S.N, Production and Operations Management, New Delhi : Tata Mc Graw Hill.

Bajracharya P., S.L. Bajracharya and B.R. Maharjan, Production and Operations Management,
Kathmandu : Quest Publication.

Sthapit, A.B., R.P Yadav, G. Tamang, S. Dhital P. Adhikari, Production and Operations Management,
Kathmandu : Asmita Books Publishers and Distributors.

Regmi L.K., P.R. Joshi, A.K Chaudhary, G. Fago, Production and Operations Management,
Kathmandu : Buddha Academic Punlishers and Distributors.
Srinivasan G., Operations research: Principles and applications, Prentice Hall of India, New Delhi.

Sharma A., Operations research, Himalaya Publishing House, New Delhi.

Sharma J K., Operations research, McMillan India Ltd., New Delhi.

Tiwary N K and S K Shandilya, Operations research, Prentice Hall of India, New Delhi.
Verma A P, Operations Research, S K Kataria and Sons.
Levin, Richard R, Quantitative Techniques for Management, McGraw Hill, Singapore.