Iccgc2011 Proc1

Author Index
Agarwal, Manoj Agarwal, Mishu Aggarwal, Shalini Agrawal, Vidhi Agrawal, Vinitaa Agrawal, Vipin Ahuja, Vandana Ali, Imran Aliveni, B. Al-Towyan, Soleiman Ansari, Abdul Aziza Anuradha, D. Arora, Sachit Arora, Vani Ashwini, K. Awang, Saadon B., Prasanna Kumari Bajpai, Chitra Bandyopadhyay, Gautam Baporikar, Neeta Barathi, C. Bhardwaj, Tejaswi Bharti, Sanjay Bhattacharya, Sidhakam Bihari, Suresh Chandra 365 562 509 339 93 339 459 44 482 529 328 120 459 295 482 1 444 604 223 170 430 569 201 223 310 Biswas, Deepshikha Bulus, Viswanadham Chaudhary, Anshu Chaudhary, Teena Chhabra, Neha Chitkara, S.C. Chowhan, Sudhinder Singh Das, Sanghamitra DasGupta, Raj Kumar Debnath, Anuradha Modak Deep, Piyush Deshpande, Mukund Deshpande, Prashant P. Dutta, Sumanta G., Raju G., Sai Krishna Gain, Namrata Garg, Shubhra Gaur, Poonam Goel, Shashank Gupta, Devesh Gupta, Khushboo Gupta, Richa 393 193 378 346 547 339 437 494 501 579 541 170 592 501 260 135 245 142 378 164 586 467 100
614 Author Index
Gupta, S.C. Gupta, Sonia Gupta, Swati Gupta, Vishal Haider, Mohammed Ziaul Imran, Mohd Jassim, Abdulridha L. Jha, Manish Joshi, Jaydev Joshi, Meeta Joshi, Navneet Kansal, Priya Khan, Gazala Khurana, Poonam Khurana, Simmi Kodavatiganti, Karuna Kotni, V.V. Devi Prasad Kumar, Ashok Kumar, Praveen Kumari, Prasanna B. Kushwaha, Priyanka Lamba, Manju Layek, Sanjiv Madan, Radhika Madan, Suman Mahajan, Tusshar Malviya, Vandana Mann, Harkanwaljeet Kaur Mann, Yogendra Nath Mehta, Ankush Memdani, Laila Mital, K.M. Munjapara, Khushboo C.
275 423 353 569 66 541 328 400 187 187 467 516 529 598 216 193 59 201 385 135 201 231 275 106 400 423 437 50 178 128 209 535 321
Nabi, Shamaile Pal, Savita Panchasara, Bhavik Pandey, Tripurari Parekh, Vikram Pathak, Mitali Pathak, Sonal Patni, Priynaka Prasanthi , Y. Aruna R., Das, M. Radhika Rani, C. Usha Rani, J. Usha Reddy, Pratyusha Roy, Debasish Sahu, Neeta Sahu, Tripti Saxena, R.M. Sen, Arijit Shaikh, Zuber M. Sharma, Aparna Sharma, Dipti Sharma, Jyoti Sharma, Mohit Sharma, Monica Sharma, Neetu Sharma, Neha Sharma, Nishi Sharma, Richa Sharma, Shikha Sharma, V.S. Sheel, Shalini Shrivastava, Manish Shrivastava, Neelima
260 164 321 287 303 372 153 437 522 268 11 385, 482 11 385 30 562 87 408 238 529 282 393 365 586 113 400 541 113 231, 393 24 11 164 488 488
Author Index 615
17 Shukla, Jyoti Tripathi Singh, Chowhan Sudhinder 393 Singh, Kuldeep 361 Singh, Manvendra Pratap 260 Singh, Pinki 452 Singh, Rajeev Kumar 586 Singh, Shikha 555 Singh, Suruchi 415, 365 Singh, Vivek 555 Sinha, Akinchan Buddhodev 72 Sinha, Nidhi 459 Sravanthi, K. 385 Sreedeepthi, B. 482 Sunanda, G. 385
Swetha, B. Tandon, Deepak Tandon, Neelam Thakur, Anand Thukral, Satish Tyagi, Anandita Verma, Anshu Vyas, Vijay Kumar Yadav, Rajni Yadav, Rakesh Kumar
482 11 80 128 555, 569 142 378 488 474 37
About the Editors

Dr. Rajiv R. Thakur is presently Director and Professor of Strategic Management and International Business Strategy at the Ajay Kumar Garg Institute Of Management (AKGIM), Ghaziabad. He is a Professor (on lien) in the area of Economic Environment and Strategy at the Institute of Management Technology (IMT), Ghaziabad. He has taught courses at F H Kufstein University, Austria, University of Newcastle, Australia and IMT Dubai. He also teaches research scholars for their Ph.D. programme and conducts sessions for MDPs at IMT, Ghaziabad. He has been teaching online programmes conducted by IMT G at NIIT Imperia and independently at U18, New Delhi. He has been actively involved in research and publications and has published/presented research papers in international/national journals and international conferences. Dr. Thakur has been actively holding international conferences and organizes MDPs for senior and middle level executives. Dr. Thakur obtained his Ph.D. from Patna University, Patna, MBA from IIT-Delhi, B.A. (Hons) from Kirorimal College, Delhi University, Delhi. Dr. Thakur was awarded the Junior Research Fellowship by the University Grants Commission and has passed the National Eligibility Test for Lectureship. As the member of the core team, Dr. Thakur was deeply involved in the setting up of IMT Dubai and its accreditation by the Commission of Academic Accreditation, Ministry of Higher Education, U.A.E. He has been one of the lead members of the accreditation team at IMT Ghaziabad, both for national and international accreditations. Prior to joining academics, Dr. Thakur worked with the media industry for over 10 years, and worked with the countrys leading media conglomerate, The Times Group in Delhi in a senior managerial capacity in the marketing division. He held responsibilities in the
618 About the Editors
International Marketing Division, Special Projects Division and several other national and international project assignments. Prof. Thukral is a seasoned management professional, academician and financial consultant having 38 years of diverse industry experience spanning fields of banking, finance, administration, HR, investment consultancy, business law, taxation and education. At present he is Professor of Finance at the Ajay Kumar Garg Institute of Management Ghaziabad, India. He has presented a number of papers at various national and international seminars and management forums. He conducts seminars, workshops and training programmes for corporate executives in the areas of finance, personal taxation & corporate tax planning, capital and money markets & investments. He has deep understanding of capital markets, finance and tax related matters and is well networked with Indian industry and government. An Honours Graduate in Chemistry from Hans Raj College, University of Delhi, Post Graduate Diploma in Business Management (PGDBM) from the Institute of Management Technology (IMT), Ghaziabad with specialization in Finance. He is CAIIB and LLB also. He has contributed to the growth of the prestigious All India Management Association, New Delhi as Sr. Deputy Director. He is associated with FICCI, CII and other management associations and contributes to their discussions on various important national and international issues. Prior to switching to academics which is his passion and forte, he was with the Syndicate Bank for 28 years and held various important and strategic portfolios creditably. Ms. Neeta Sahu is a chartered accountant by profession. Presently she is working as assistant professor in the Ajay Kumar Garg Institute of Management Ghaziabad. She has more than seven year industry experience and two years in academics. She worked at senior administrative positions and also provided consultancy to multiple organizations including Jindal Group, BSES, etc. She is a fellow member of the ICAI. Her areas of interest are international business, taxation, corporate finance and strategic cost accounting. She has presented many research papers in international and national conferences.
About the Editors 619
Shri Vinod Gupta is Director (Project) at the National Institute for Entrepreneurship & Small Business Development (NIESBUD). He has 38 years experience spanning academics, training, consultancy, banking and marketing. He is a mechanical engineer from IIT, Delhi with Masters in financial management. He is a visiting faculty to a number of universities, management institutions and his alma mater, IIT, Delhi. He is a wellknown authority having been invited by the local TV and All India Radio for several broadcasts, including those that meant for audiences worldwide. He has authored/edited 22 books including three researchbased studies. He has pioneered video films in the area of entrepreneurship, and has participated in several international seminars organized by highly reputed international organizations like UNIDO/UNDP, ILO, and Commonwealth Secretariat, etc.
Challenges of Globalization
Strategies for Competitiveness
Challenges of Globalization
Strategies for Competitiveness
Editors
Rajiv R. Thakur Satish Thukral Neeta Sahu Vinod Gupta
Macmillan Publishers India Ltd, 2011 All rights reserved. No part of this publication may be reproduced or transmitted, in any form or by any means, without permission. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. First published, 2011 MACMILLAN PUBLISHERS INDIA LTD Delhi Bangalore Chennai Kolkata Mumbai Ahmedabad Bhopal Chandigarh Coimbatore Cuttack Guwahati Hubli Hyderabad Jaipur Lucknow Madurai Nagpur Patna Pune Thiruvananthapuram Visakhapatnam Companies and representatives throughout the world ISBN 10: 0230ISBN 13: 978-0230Published by Rajiv Beri for Macmillan Publishers India Ltd. 2/10, Ansari Road, Daryaganj, New Delhi 110 002 Typeseting at Fortune Graphics WZ 911/2 Shankarlal Street, Ring Road, Naraina, New Delhi Printed at Pearl Offset Press Pvt Ltd 5/33, Kirti Nagar Industrial Area, New Delhi 110 015
This book is meant for educational and learning purposes. The author(s) of the book has/have taken all reasonable care to ensure that the contents of the book do not violate any existing copyright or other intellectual property rights of any person in any manner whatsoever. In the event the author(s) has/have been unable to track any source and if any copyright has been inadvertently infringed, please notify the publisher in writing for corrective action.
Preface
The last two decades have seen the emergence of a borderless world as wealth generating activities have spread beyond the traditional political boundaries. Economically, the world is increasingly seen as a total wealth generating system rather than a collection of individual countries. This is a period of economic restructuring that is generating new global economic patterns. Quite time ago, overseas trade was a matter of trading in either raw materials or narrow product lines in a few locations. Since then, the world has come a long way. We now have examples of several successful global organizations which are distinguished by four key characteristics: (1) they see the world as their market place; (2) they are actively engaged in world-class management practices; (3) they have invested in world class infrastructure, IT and non-IT; and (4) they have negotiated strategic alliances with other organizations. This provides the broad contours of strategies that can be followed to achieve global competitiveness. Global competition has already permeated many industries. The list of industries that are experiencing global competition (mobile phones, beverages, pharmaceuticals, etc.) is getting longer. After finding that the demand in the local markets has been saturated, many firms seek growth abroad, where they face counterparts from other countries, new types of competitors and the government. For businesses to grow and consistently exceed profit expectations, they need to fully understand and effectively execute globally competitive strategies. So what are these kinds of competitive strategies? These strategies can be summarized in the following categories: 1. Strategy of Cost Leadership: Offer a combination of quality, price and ease of purchase that can hardly be matched by anybody else in the market. Firms like Toyota and IBM leverage on this strategy by offering global customers the benefits of a broad product line and extensive sales and support network. 2. Strategy of Product Leadership: Offer innovative products that raises the entry
vi Preface
barrier in a particular segment. Develop the capability of speed to market and be relentless in making your own products obsolete. Firms like Apple and Google have become market leaders in their spaces by following the strategy of frequently introducing clutter-breakers in the market. 3. Strategy of Globalization: Offer benefits to consumers on a global scale and at the same time meets the unique needs of local markets. McDonalds in India is the foremost example of this approach: The service quality and ambience in a McDonalds store is the same in India as elsewhere in the world, but it has created food products to match the local taste buds. The international conference ICCGC 2011 being organized by the Ajay Kumar Garg Institute of Management (AKGIM) Ghaziabad, India and The National Institute for Entrepreneurship and Small Business Development (NIESBUD), India, serves as a platform to showcase many of these competitive strategies that can help corporations to win globally. This publication captures the essence of the deliberations so as to benefit industry. The proceedings titled Challenges of Globalization: Strategies for Competitiveness and its companion volume titled Entrepreneurship and SMEs: Building Competencies is a collection of research papers contributed by esteemed researchers comprising of eminent faculty, corporate managers and students who responded to our call for papers. The response was tremendous and unprecedented from the four corners of India and across the globe. The contributors are from New Zealand, South Korea, Canada, and Malaysia to give it a true global look. In India contributions are from Godhra to Coimbatore, from Kolkata to Jaipur and from Mumbai to Jammu covering the length and breadth of the country. 299 abstracts were received in all. After the first round of reviews by our distinguished panel of experts from academia and corporate, 225 were shortlisted for submission of full papers. These full papers were subjected to double blind reviews by our expert panel consisting of think tanks from industry and top business schools. After a lengthy process of suggestions by experts and improvement of papers by the authors, 164 were finally selected and find a place in the proceedings which is in your hands and is divided into two volumes. Hope this will be useful guide to the practicing managers, researchers and the academic fraternity. Rajiv R. Thakur Satish Thukral Neeta Sahu Vinod Gupta
Acknowledgements
Organizing an international conference and the publication of its proceedings is a gigantic task and requires the co-operation and support of all. We are lucky and fortunate to have full co-operation and support of the Board of Governors of the Ajay Kumar Garg Institute of Management who were magnanimous in extending their wholehearted support for organizing the International Conference on Challenges of Globalization & Strategy for Competitiveness and the publication of the proceedings for which we are extremely thankful to each and every member. The National Institute for Entrepreneurship and Small Business Development (NIESBUD), India was also very generous and lent its full support and we owe them a big thanks. Our International Committee, comprising of whos who in industry and academia, was a constant source of inspiration, guidance and suggestions. We profusely thank each and every member for their generosity. A large number of very distinguished academic stalwarts, captains of industry and researchers from all parts of the country and across the globe have shown keen interest, not only in contributing their well researched papers, but also patiently complying with our suggestions, responding to our urgency and coming up to our expectations. But for their well researched papers, this important compilation would not have been complete and up to the desired level. We thank them all from the core of our hearts. We owe a big thank you to our expert panel whom we bothered from time to time for double blind reviews. In spite of their very busy schedules, they continued to offer their support, suggestions and guidance. We thank them. The faculty colleagues and other staff members of the Ajay Kumar Garg Institute of Management deserve thanks for their wholehearted support.
viii Acknowledgements
Last but not the least, our thanks are due to M/s Macmillan Publishers India Ltd. for their patience, untiring work behind the scenes and timely delivery of the proceedings. We look forward to the comments and suggestions of the readers and contributors. Rajiv R. Thakur Satish Thukral Neeta Sahu Vinod Gupta
Contents
Preface Acknowledgements 1. Globalization and Some Conceptual Redefinitions
Saadon Awang
v vii 1 11 17
2. Corporate Governance and Accountability in the Changing Scenario

J. Usha Rani, V.S. Sharma and Radhika
3. FDI Inflows to Automobile Industry in India

Jyoti Tripathi Shukla
4. Value Based Management: An Alignment of Companys Overall Aspirations and Management Processes
Shikha Sharma
24 30 37 44 50 59
5. The Indian Capital Market Growing Opportunities and Emerging Trends

Debasish Roy
6. Innovative Marketing Practices: Need for Competitive Advantage

Rakesh Kumar Yadav
7. FDI in Higher Education in India

Imran Ali
8. Conceptual Analysis of TQM

Harkanwaljeet Kaur Mann
9. E-mail Marketing as a Tool of Direct Marketing

V.V. Devi Prasad Kotni
10. Investment Climate and Competitive Performance of Manufacturing Firms in the South-West Region of Bangladesh
Mohammed Ziaul Haider
66
x Contents
11. The Small Poised to Become a Mammoth

Akinchan Buddhodev Sinha
72
12. New Horizons in Credit Audit & Management in the Indian Banking Sector An Adoptive Model at J&K Bank Ltd
Deepak Tandon and Neelam Tandon
80 87 93 100 106
13. Islamic Finance: An Indian Prospective

Tripti Sahu
14. A Challenging Issues in Corporate Governance

Vinitaa Agrawal
15. Trends in Takeovers in India in Post 1990 Period

Richa Gupta
16. Celebrity Endorsement: A Marketing Strategy

Radhika Madan
17. Analysis of Global Financial Crisis with Special Reference to Indian Banking Sector
Nishi Sharma and Monica Sharma
113
18. A Study on the Consumer Durable Replacement Intentions: With Reference to Television
D. Anuradha
120
19. A Study on Expectations of Rural Consumer Towards Organized Retailing: A Review

Anand Thakur and Ankush Mehta
128 135 142 153 164 170
20. A Study of Ethics in Accounting and Finance of the Corporate World

Sai Krishna G. and Prasanna Kumari B.
21. Emotinal Intelligence at Work: A Theoretical Framework

Anandita Tyagi and Shubhra Garg
22. Managing Stress Among Employees in Internationalisation of Business

Sonal Pathak
23. Talent Acquisition and Retention to Gain Competetive Advantage

Savita Pal, Shalini Sheel and Shashank Goel
24. Glocal Approach to Entrepreneurship in Pune Auto-sector

Mukund Deshpande and Neeta Baporikar
25. Forensic Accounting: Importance, Challenges and Scope for Advanced Researches in the Globalized Environment with Special Reference to India
Yogendra Nath Mann
178
Contents xi
26. The Corporate Dilemma: Greed v/s Goodness

Jaydev Joshi and Meeta Joshi
187
27. Distributed Leadership and its Impact on Teaching, Learning & Job Satisfaction 193
Viswanadham Bulusu and Karuna Kodavatiganti
28. Marketing Strategies Go Ahead

Sanjay Bharti, Priyanka Kushwaha1 and Ashok Kumar
201
29. A Comparative Analysis of FDI Inflows in India During Pre-recession and Post-recession Phase
Laila Memdani
209 216
30. A Strategic Study on Fundamental Analysis of Pharmaceutical Industry in India

Simmi Khurana
31. Classification and Prediction of Financial Performance in Urban Local Bodies Using Logistic Regression
Sidhakam Bhattacharya and Gautam Bandyopadhyay
223 231 238
32. A Study of Market Efficiency of Indian Stock Market

Manju Lamba and Richa Sharma
33. Corporate Governance in India: Clause 49 of the Listing Agreement

Arijit Sen
34. Impact of Globalization on Consumer Buying Behavior with Competitive Strategy Change in Food-Retail Industry
Namrata Gain
245 260 268 275 282 287
35. Customer Relationship Management for NGOs

Raju G., Shamaile Nabi and Manvendra Pratap Singh
36. The Ascent of Deposit Insurance in India

M.R. Das
37. Factors for a Successful Sales Force During the Corporate Life Cycle
Sanjiv Layek and S.C. Gupta
38. Leadership and Management: The Need of Hour

Aparna Sharma
39. FDI, A Threat to Social Justice in India, the Precautionary Steps Ahead
Tripurari Pandey
40. Role of Logistics in Global Supply Chain Management of Pharmaceutical Industry

Vani Arora
295 303
41. Marketing Education in India: A Management Education Perspective

Vikram Parekh
xii Contents
42. Impact of Banking Technology on Customer Profitability An Empirical Study

Suresh Chandra Bihari
310 321
43. A Study on Mobile Banking: The Way Ahead

Khushboo C. Munjapara and Bhavik Panchasara
44. Integration between the Process Costing System and Relative Value Unit (RVUs) Approach to Measure Cost in Hospitals Case Study
Abdulridha L. Jassim and Abdul Aziza Ansari
328 339 346 353 361 365 372
45. Higher Education as a Knowledge Agent A Study in Globalised Era

Vidhi Agrawal, S.C. Chitkara1 and Vipin Agrawal
46. CSR in Indian organization: Reality or Myth Analysis

Teena Chaudhary
47. Paper on Employee Retention

Swati Gupta
48. Globalization and its Impact on Indian Education

Kuldeep Singh
49. Union Management Relations: Radical Agreement for Industrial Harmony

Jyoti Sharma, Manoj Agarwal and Suruchi Singh
50. Sustainable Growth Through Organisational Change Management

Mitali Pathak
51. An Empirical Analysis of the Prospects and User Perceptions of M-banking in India
Anshu Chaudhary, Anshu Verma and Poonam Gaur
378 385
52. Venture Capital and Entrepreneurial Development 7=7 Theory

C. Usha Rani, Praveen Kumar, G. Sunanda, Pratyusha Reddy and K. Sravanthi
53. Supply Chain Management With the Purpose of Satisfying the Customers Requirement
Richa Sharma, Deepshikha Biswas, Dipti Sharma and Chowhan Sudhinder Singh
393 400 408 415
54. Foreign Direct Investment A Prerequisite to Economic Growth

Manish Jha, Suman Madan and Neetu Sharma
55. Impact of Globalization on Indian Business Industry and Strategy Making

R.M. Saxena
56. Managing Creativity for Organisational Excellence

Suruchi Singh
57. An Analytical Study of Driving Factors of Academic Entrepreneurial Intention Among University Students
Tusshar Mahajan and Sonia Gupta
423
Contents xiii
58. Indian Economy in the Post Global Crisis Era A Multi Dimensional Review
C. Barathi
430 437
59. Customer Relationship Management from the Business Strategy Perspective

Sudhinder Singh Chowhan, Vandana Malviya and Priynaka Patni
60. Impact of Employee Engagement on the Performance of Employees in an Organization

Prasanna Kumari B.
444 452
61. Microfinance Experience in India Actions and Challenges

Pinki Singh
62. Impact of Variation of Consumer Brand Knowledge level on Consumer Brand Sentiment
Sachit Arora, Nidhi Sinha and Vandana Ahuja
459 467 474
63. Microfinance A Tool to Uplift Rural Poor

Navneet Joshi and Khushboo Gupta
64. Financial Inclusion: Diversifying Financial Services

Rajni Yadav
65. Corporate Governance Laws and Flaws: The Companies Act 1956 Sections 252-323
C. Usha Rani, B. Sreedeepthi, B. Swetha, B. Aliveni and K. Ashwini
482 488 494 501 509 516 522 529 535
66. Value Based Decision: From Ancient Text to Present Context

Manish Shrivastava, Neelima Shrivastava1 and Vijay Kumar Vyas
67. Narcissistic Leaders: The Incredible Pros, the Inevitable Cons

Sanghamitra Das
68. Brand Valuation A Contemporary Accounting Practices

Sumanta Dutta and Raj Kumar DasGupta
69. Financing of Research and Development

Shalini Aggarwal
70. Private Equity Funding: Penetrating Indian Financing Market

Priya Kansal
71. A Study on Buying Behavior with Reference to M and F

Y. Aruna Prasanthi
72. A Feasibility Study for a Tertiary Care Hopsital at Nanded City

Zuber M. Shaikh, Gazala Khan and Soleiman Al-Towyan
73. Emerging Prospects of Shale Gas in Indias Energy Security

K.M. Mital
xiv Contents
74. Ethical Issue in Todays Advertisments

Piyush Deep, Mohd Imran and Neha Sharma
541
75. A Study of Sensitivity Analysis on Vat Base Casewith Special Reference to Addition Method: Case of Large Scale Industry
Neha Chhabra
547 555 562
76. Value-for-Money Strategies for Recessionary Times

Satish Thukral, Shikha Singh and Vivek Singh
77. Effective Cost Management Tools for Competitive Advantage

Neeta Sahu and Mishu Agarwal
78. Presentation of Financial Statements, Requirements of Indian Companies Act 1956

Satish Thukral, Vishal Gupta and Tejaswi Bhardwaj
569
79. Cultural Values of Luxury Customers Vs Luxury Bags Brands Values in Indian Market
Anuradha Modak Debnath
579 586 592
80. Microfinance in Indian Rural Areas

Mohit Sharma, Rajeev Kumar Singh1 and Devesh Gupta
81. International Marketing Strategy in the Era of Globalization

Prashant P. Deshpande
82. Developing a Framework for Ethical Decision Making Sub theme: Management 598
Poonam Khurana
83. Talent Management: A Key to Success in the Global Changing Scenario

Chitra Bajpai
604 613
Author Index
Globalization and Some Conceptual Redefinitions

Saadon Awang
College of Law, Government and International Studies University of Utara Malaysia Sintok, Kedah MALAYSIA 06010
E-mail: saadon@uum.edu.my
INTRODUCTION
One of the effects of the post-cold war era is globalization. It creates a phenomenon of the so-called a borderless world. As Little (2001) suggested, the capitalist opened economic system has made every effort to bring the socialist closed system into its arm. This later would lead the world into a new polar system. If one single power is allowed to dominate the world, there would be a unipolar system. On the other hand, if multiple powers are taking active part at the centre stage of the world, there would be a multipolar system. But one thing that is sure, there would not be a bipolar system as the world had experienced before. The effects of the borderless world phenomenon brought up some changes to many aspects of life economically, politically, socially, and also legally. This paper analyses the effects of the phenomenon on socio-political structure which shape the new order of the world today. The main feature of the new socio-political structure is the existence of one shared-nation, where the world becomes a nation to all population of the world.
2 Challenges of Globalization: Strategies for Competitiveness
The effect of this borderless world phenomenon demands political scientists to review traditional functions of a nation, hence, redefining some of its related concepts.
CONCEPTUAL DEFINITIONS
Conceptually, Kamsono Kibat (1988) summarizes that the existence of a nation comprising of the following four main elements: (i) a territory (ii) the people (iii) the government (iv) sovereignty The four elements are always interdependent amongst each other. A territory provides boundary which limits the controls of a nation over its land, sea and space. The people become important resources which support the existence of the other three elements of a nation. The people may include citizens, alien citizens or native population of the country. Meanwhile, the government exists as to manage and to ensure that all elements of a nation are functioning and well-coordinated for the benefit of countrys national interests. This includes the preservation of its social, economic, politics and sovereignty. Finally, the element of sovereignty recognizes the power and authority of a nation to function within its jurisdiction (territory), and offers recognition to the government in power (leadership), and its population (the people). Normally, the elements of a territory, the government and the people hold the principle of sovereignty through legitimate power, provided under the highest authority (supremacy) of law. The highest law authority in most of the countries in the world is belongs to the constitution of the country. The traditional concept of a nation had already been used for so long, and it provided a basis for academic researches and writings, especially in the fields of politics and administration. However, during the 1980s decade, a new phenomenon has emerged in the worlds socio-political system. This followed an aggressive drive towards the concept of globalization, which is seen as a contributing factor to the nations development and competitiveness, especially in its economics context. In principle, globalization according to Lamarre (2004), is part of modernization efforts which most developed and newly emerging nations try to introduce. Modernization itself is simply means changing or causing different to the original.
Globalization and Some Conceptual Redefinitions 3
So, this development has shaped a new socio-political structure of the world, especially with the introduction of the borderless world concept. This is a new and different concept to the older form, where citizens of the nation show loyalty to their country and share various interests such as culture, value, language and so forth under one spirit of the so-called nationalism. Alter (1994) explains that nationalism exists through a combination of the following two ideas: (i) to free the interest of a shared-nation from any kind of oppression (ii) to block any outside influence onto the shared-nation The emergence of this new concept demands review and redefinition of concepts and functions of all elements that make a nation to exist.
REDEFINITION OF CONCEPTS
This paper focuses on the concepts of a nation and its four basic elements. Traditionally, the concept of a nation is based on recognition of its people, territory and government in power. The recognition gives sovereignty to the nation. This condition makes up the four basic elements of a nation. Rather, the elements have made up a scope of roles and functions of a nation in the international relations context, i.e. to decide about what, who and where is a country on the worlds map. The traditional functions of a nation have changed with the introduction of the borderless world concept. Therefore, some definitions of concepts related to the meaning of a nation should be reviewed, or even redefined. Discussions in this context will highlight each possible problem as a contradicting view to the traditional perspective. They are as the followings:
(i) A Territory
According to Callaya (1997), a boundary of a state or a territory refers to a geographical region which shares some characteristics. This may exist in the kind of a government or an administrative unit. A borderless world concept means a boundary of one region is virtually opened although, physically, its traditional boundary is well-guarded.
Problem
The borderless world concept has raised question about how to determine the legitimate territory (boundary) of one state. The problem may arise when there is
a violation claims over unspecified virtual territory of the state. How can the claimant from one state pursue damages claim on someone from the other state?
(ii) The People

Most countries in the world preserve the sovereignty of their citizens by allowing only single citizenship status. There are also countries which allow dual or multiple citizenship status with some specified conditions.
Problem
The borderless world concept has created an additional citizenship status, the socalled open citizenship. This exists in the kind of citizen via web networks. Aizu (2005) suggests that this new type of citizenship status has opened a new chapter in studies about nation. The new type of citizenship status, also known as a citizen of the networks or netizen, has now started to take place in many academic studies and writings.
(iii) The Government

Traditionally, a government exists through legitimate process, which is normally stated under the constitution of a country. Among methods for appointment of the government include election, inheritance or endorsement by the legislative after the transfer of power from one to another government.
Problem
The emergence of the borderless world concept has caused changes to the structure and sovereignty of governments in the world. A type of virtual government without specified leadership has emerged to replace the traditional concept of government. This new type of government also does not exist via legitimate process, but recognition is based on numbers of visitors visiting any particular internet site or protocol.
(iv) Sovereignty
The borderless world concept appears as a new challenge to the legitimate power which recognizes a state. This refers to the highest authority which basically creates the state. Normally a constitution becomes the highest authority of the state and will not be challenged by anyone.
Problem
In the so-called borderless world, no constitution of any country becomes a source of reference and governs all activities of netizens. Citizens only have to have a computer network as their traveling passports and contact Internet Service Providers (ISP) as the Member of Parliament to extend their needs to the Web Controller (the government). But the question is, who would be the head of the government?
A CASE STUDY: THE INTERNET GOVERNMENT

Just over two decades ago the United States Government had introduced a new concept in communications, known as electronic communications. This can be done through medium called internet protocol. The internet protocol can be considered as a borderless nation, where anyone from any part of the world can get access or becomes a citizen to it. However, citizens have to bear some related costs before they can travel into the borderless nation (internet). The costs incurred include computer facilities (passport), the Internet Service Provider (Immigration Department), and the search engines (travel agents) used to get access to the internet territory (country). As we all concerned, no one invents something without the hope to benefit from it. This includes the invention of new electronic communications system. The introduction of this new concept of communications has its main purpose to suit the current development and modernization. With reference to the earlier Lamarre (2004) remarks, this had driven the United States to invent something new and different from its original. So, the Americans have invented the new concept of communications, which in the long term would create the borderless world. John von Neumann (1903-57, in Dizard, 2001) supports the idea with his remarks, modern technology increases the rate of change not so much by shortening the time involved but by expanding the areas political, economic, social that are affected. This has given the idea to the US to try to dominate the world through technological development, especially in Communications and Information Technology (ICT). So, since over two decades ago, the idea for unipolar system has been in the mind of the Americans. As a leader of capitalism, the US must dominate the international politics to achieve its ideological interests. Imperialism has been used to support their mission of expansionism, either on geographical or on the minds of the people in other part of the world (Johnsson 1987). So, the internet was found to be an ideal tool to achieve this mission.
The use of tools other than military as colonialism strategies had been used since the sixteenth century by some colonial powers. According to Harlow & Carter (1991), the British East India Company is one of the examples. The economic wing of the British Government turned out to be a military power in their mission of colonialism. This strategy also used by the other colonial powers like Spain, Portugal and Holland. The internet has emerged as a new form of a nation. It becomes a territory where the whole worlds population can become its citizens. This is done through the US Government-owned agency, named Internet Corporation for Assigned Names and Numbers (ICANN). Until today, this agency becomes the sole body which holds the rights to internet access, via network called the World Wide Web (www). Each internet communications, surf and search using www will go through the procedure of this Agency. This means, almost every aspect of life on earth is in the hand of this agency. Further, the US government may have its veto over the rights as an inventor and a controller of the internet. The tendency of the United States to play active roles in the worlds politics, and take control the worlds economy has caused concern to the rest of the world. Many countries realize about the important to share the control of the internet. Kofi Annan, the former UN Secretary General in his speech at the World Conference on Information Society (2005) has urged countries in the world to share the rights of control of the internet. Therefore, countries like China and Iran are planning to create new internet protocols without transmitting through the current www, in order to protect some of their countries classified information from being exposed to the outside world. Rather, some small countries are hoping that any kind of indirect colonialism will end with the introduction of some alternatives to the borderless world concept under the current unipolar system.
IMPLICATIONS OF THE BORDERLESS WORLD CONCEPT

Tarling (1999) suggests that loyalty of the people to their country can be shown through the spirit of nationalism. Loyalty is shown to a country which is clearly exists, where the people are dedicating their hearts and souls, and support the freedom of their country. So, the implication of the borderless world concept lies in the question about how and where the people can show their loyalty to the borderless country? There is also a problem to identify the real colonialism in the borderless world concept. Small countries are worried that they are being colonized, mentally and
physically. These are in the kinds of culture, habit, social structure and so on. They are shown in the peoples daily actions and practices. The possible danger of this implication is that conflict may arise as a result of clashes amongst different cultures. This confirms Segal et.al. (1999) suggestion that culture is behavioral products which will be followed by the others. Whereas, Munroe and Munroe (1980) added that culture is composed of numerous factors which will affect almost every aspect of our lives. Kamsono Kibat (1978) referred two political science great thinkers, Plato and Aristotle, who had divided the government into the following types: (a) Monarchy is a system where power is in the hand of one person, normally a monarch. If the monarch properly runs the country, social welfare of the people will be well-served. Otherwise, if power is abused, a tyranny system may exist, and the people will suffer. (b) Aristocracy is a system where a group of individuals take power to run the country. If they run the country in proper manner, the whole country may prosper. On the other hand, if they choose to abuse the power, the country will fall into an oligarchy system, where the whole country is in danger of collapsing. (c) Democracy refers to a system where the power lies in the hand of the people. This suits its combination of Latins meanings of demos (the people) and kratos (the power). Democratic principles if properly followed, may allow the people to participate in the political process of the country. However, if it is abused, the people will be denied access to the process. This may create an uncontrolled and disorganized situation, called apathy, where the people no longer have trust in the system and start to ignore their roles in it. As a result, only those who get access to the system will benefit most out of the system. Based on the explanations, it can be concluded that the internet government is closely related to the oligarchy, i.e. an abused version of aristocracy system. This is due to the fact that the internet is created by a group of individuals who pursue their own interests. An agency which control the internet may pursue their monetary or political interests, and demands participation from the worlds population as a whole. On the other hand, the agency had never shared the power, profits and benefits with the rest of the world. So far, netizens only obeyed to all related internet procedures and never involved directly in decision making process or in determining who will lead the Corporation which form their internet government.
The borderless world concept also affects the executive function in a country. The traditional function of the executive is to carry out decisions made by the legislative or the government. This is normally carried out by a neutral body, the Civil Service or better known as a bureaucracy. However, under the internet government, the role of the Civil Service is unclear. Supposedly, it holds a principle of neutrality and sovereignty of the government which is in power. The government may change but the Civil Service remains. But, how can it play its functions in a borderless nation where the source of authority cannot be specified? Rather, according to Aizu (2005), the type of function under the new type of nation covers services to the whole worlds population. Although the public service structure may exist in the kind of representative bureaucracy and its roles go down as street level bureaucracy, in reality, they are still vague. In the borderless world concept, citizens participation is limited to those who can get access to the internet. Perhaps, the gaps between the rich and the poor, or the educated and non-educated play some roles in this context.
SUGGESTIONS
Globalization affects many aspects of life. One of the many aspects is the sociopolitical context. It is a field where many related concepts are traditionally defined. But the effects of globalization, especially with the existence of the borderless world concept, causes concern amongst interested parties in the related field. One concern is the needs for redefining of some concepts because they are no longer carry the right meanings as previously. This paper focuses on the concept of a nation and its four basic elements. The existence of the borderless world concept requires some redefinition of the following concepts:
(i) A Nation
Traditional definitions of a nation only consider it as an individual entity. However, under the borderless world concept, the perspective must be broadening to a whole shared-nation concept, where all population of the world shares the world as one nation.
(ii) A Territory
A definition of a territory by geo-political boundary should be redefined. This perhaps can be something else, such as by internet protocols, brands, search engines and so forth.
(iii) The People

A concept of the people as citizens of one nation has also seen some changes and therefore, need to be redefined. As discussed earlier in this paper, the concept of a citizen is better known as a netizen. This definition must come out with citizens rights and responsibilities as a virtual citizen of a whole shared-nation.
(iv) The Government

A redefinition of this concept should stress more on the body, the process and the scope of jurisdiction of the government. Perhaps these relate much on what is the territory and who are the citizens of the particular new type of nation. Furthermore, those who run any part of these new type of nations should come forward and declare themselves, and should be responsible and accountable in carrying out their duties.
(v) Sovereignty
Sovereignty is not only something that ones holds, but also something in perspective of others. In its traditional definition, each element of a nation holds sovereignty and this is recognized by others. However, under the borderless world concept, a nation may have to surrender some parts of its sovereignty, such as its territory, citizens, and the government. All those suggestions however, depend on how countries in the world can cope with all challenges of globalization. If countries are not ready to surrender and sacrifice their possessions, alternatives should be brought forward to maintain what is known as traditional definitions of all related concepts discussed earlier.
CONCLUSION
One of the effects of post-cold war era is globalization. Globalization carries several meanings and creates challenges to some current structures, systems and fields of academic study. This paper focuses on the effect of globalization on some definitions of concepts in socio-political context, especially on the traditional definition of a nation and it four basic elements. The four basic elements of a nation are a territory, the people, the government, and its sovereignty. The main challenge to the traditional concept of a nation is the existence of the borderless world concept, which may cause some definitions of concepts related to a nation to be redefined. Under the borderless world concept, a nation may exist in different characteristics from what is seen today. A single nation
may be replaced by a whole shared-nation, where all population of the world shares the world as one nation. A nations territory may no longer be defined by geo-political decisions but perhaps by some virtual decisions. Meanwhile, citizens may show loyalty not to their nation but to other entities where they are allowed access into. Further, the government may exist virtually and without mandate of the citizens. Whereas, countries may have to surrender of sacrifice some of their possessions at the expense of their sovereignty if they still want to become part of the new virtual society. However, this is still depending on how far countries in the world can cope with all challenges of globalization, just to maintain all related concepts with their traditional definitions.
Corporate Governance and Accountability in the Changing Scenario

J. Usha Rani, V.S. Sharma and Radhika
MBA Department,Vidya Jyothi Institute of Technology Hyderabad (A.P.)
E-mail: ucherukupallis@yahoo.com
INTRODUCTION
Performance audit is an Independent evaluation of the measures implemented by management to ensure the efficient, effective and economic use of resources. The above said performance audit differs from the audit functions that every public company perform each year. They are statutory audit u/s 165 in accordance with the accounting standards, risk focussed internal audit for controlling, and information given by auditor general which is based on predetermined objectives.
OBJECTIVES
Do you think that performance may be audited accurately? No, it is the performance of the auditors who perform their audit efficiently through which some companies can ditch the shareholders as well as outsiders. So it is the performance of the auditors, who tries to protect Board of Directors (BOD) by order of the BODs where auditors are advised to show their performance in audit. Means, is it performance audit or auditors performance? My intention behind this paper is to highlight auditors performance in performing their audit. By
reading this article one can achieve public confidence and can make public perceptions real. In this context let us convey a message to shareholders, measure the performance of the auditor and risk your treasure.
SCOPE OF THE STUDY

In our paper we would like to highlight certain issues relating to the performance of auditors in case of WIP Valuation, FIG Valuation, Provision for Bad and doubtful Debts, and Depreciation etc. in which there is a scope of manipulating the accounts and its remedies. It also covers the above few areas where performance of individuals and organizations is analysed, examined, programmed and audited, which is known as auditors audit performance. WIP Valuation
RESEARCH METHODOLOGY
Here the methodology I have used is random sampling through questionnaires, past appraisal records of some employees, opinions of employees who has been dismissed by organizations for their positive and negative performances and challenges of corporate governances against the policies. My research regarding performance audit versus audit performance is to highlight certain limitations of Internal and External auditors through which share holders can understand the performance of an auditor, and avoid or reduce risk for their treasure (money).
ANALYSIS AND FINDINGS OF THE STUDY

We need to have good governance. The word governance is an activity of human being as a process of decision-making and its analysis for implementation in any corporation. As per our opinion good governance means which is designed taking into consideration national interest, with corporate laws, ethics, morals, values, trustworthiness, eco friendliness, social responsibilities, fair rate of returns, equity and justice, good quality of work life and providing opportunities to workmen in decision making etc. This paper is based on Corporate Governance in Indian Context. Strict implementation of laws is required. But how? Here we can link between HR practices and Accounting practices. Performance management includes employee improvement, performance development, training, crosstraining, challenging assignments, 360 degree feed back and regular performance feedback. Let us go through in detail how internal auditors perform audit with their audit performance skills. Every organization will employ internal auditors to perform audits. These internal auditors may assist external auditors to prepare a financial statement
Corporate Governance and Accountability in the Changing Scenario 13
which states the financial position of the company. The opinion of external auditor is credible to shareholders, investors, bankers, general public and concerned Government authorities etc. An auditor has to perform audit for the public good (Pro Bono Publico) with the necessary changes (Mutatis Mutandis) in financial accounts prepared by internal auditors. For the reliability and effectiveness of financial accounts and statements an internal control system is to be framed in compliance with applicable laws and regulations. As per present situations performance audit is highly relevant in every organization in achieving goals. It is a difficult task for internal auditors to give feedback on their boss performance, which they have to give at their own risk. Getting feedback from subordinates about boss is a part of 360 degrees of performance appraisal. In case of internal management a manager spends more time with his team members than with his immediate boss. If an internal manager can share this with his subordinates he can improve his performance. Now let us discuss the outcome of the performance feedback. If your boss does not trust you, he would not respond positively to your feedback. If you feel that he would react negatively, it is better not to express your thoughts. Some times an external auditor is also in similar situation, where he has to follow the instructions given by internal manager, who will be under the control of Board of Directors. If organizations aim at improving the performance, then BODs discussions with auditors will lead internal managers to perform effectively and efficiently. Here any outsider has to remember certain points regarding the performance of an internal manager/auditor that he has many other important demands to meet and another point is he has to make his team more self reliant because he trusts their ability. And he should avoid blaming his subordinates. So their discussions must be most positive. Sometimes an internal auditor has to reset his performances according to the preferences of his boss (BOD). It is the minimum responsibility of an internal manager to raise certain sensitive issues through which he can perform effectively. Any way it is risky if internal auditors are not sure about the reaction of Board of Directors. If Board of Directors are not open regarding internal auditor/managers performance and he still want to give them details of certain sensitive issues, then he has to consider options like anonymous feed back or 360 degree feedback. There are certain differences between performance audit and audit performance. Performance audit does not have specific governance which is based on certain standards where as in audit performance auditors have to follow certain accounting standards and principles. Performance audit is a nonfinancial audit and audit performance is a financial audit which is framed as per the financial requirements of the organizations. Managing risk is better than taking risk.
Effective performance audit teaches how manage risk and effective audit performance teaches how to reduce risk. Shareholders are not interested to see the failures; they only see the success of any business. Remedies available here are, let us shape our country as an ethical nation. Employees should have respect towards their job, not to have any dispute with the boss without undervaluing yourself. Internal managers should prioritise the work for the accomplishment of goals. Clarified, setting tasks and performance indicators and competitive levels are to be specified.
VALUATION OF WORK IN PROGRESS

The auditor should obtain relevant and reliable evidence sufficient to enable him to draw reasonable conclusions there from. Three points are to be considered regarding the stock, such as ownership, existence and valuation. Treatment of wastage due to rejects and deterioration is to be observed. An enquiry with concerned officers for the assessment of net realisable value, with reference to defective, slow moving stocks, and satisfactory and reliable answers from such officers is to be made by an auditor after deducting all expenditure incurred before disposal. Reconciliation of stock estimates and actual, changes in quantities with supporting records such as purchases, production, invoices, scrap, a comparative study of current and previous year sales is another important aspect of valuing work in progress. It should be based on certain accounting standards.
VALUATION OF FINISHED GOODS

Every firm should take care of storage and transportation of finished products to protect the product from damage, theft, and natural calamities etc. Such products need to be insured with a written contract. A careful valuation regarding cost of import purchase cost of consumption which will have impact on WIP and FIP is needed. Here there is a scope of manipulation of accounts relating to scrap value. In certain cases amount incurred on freight need to be treated as capital expenditure, other wise volume of profit will be reduced and reduces the cost of capital assets purchased. Nomenclature is being observed if there is any. Here the interest is to be capitalised proportionately. Cenvat in relation with excise duty is another item to be observed for the purposes of audit. Accuracy of valuation of finished goods depends upon the effective evaluation of work in process. Rates are estimated as per the job number and batch number. Prior period expenditure may be entered sometimes in current year accounts.
Corporate Governance and Accountability in the Changing Scenario 15
PROVISION FOR BAD DEBTS

Valuation of bad and doubtful debts is another important transaction for realisation. The chances of recovery of each of the debt should be analysed and the likelihood of the debt turning bad should be considered. Debtors inability, dishonour of cheques and bills, economic irregularities will have the impact on bad and doubtful debts. Here estimations on bad debts is to made accurately which is possible by showing in same accounting period taking into consideration going and matching concept. It should be reduced from sundry debtors. Section 227(1A) empowers the auditor to look into any account in the interest of company as well as shareholders. A report submitted by a separate audit committee is to be attached as documentary evidence. A provision made for bad and doubtful debts after waiting for genuine period shall be transferred dividend payable to shareholders as per the provisions laid down under section 205(5) of the companies act.
DEPRECIATION
In general it is known as the replacement value of an asset. Time estimations and selection of methods of depreciation shall be made based on the future value of the asset. Market fluctuations economic irregularities will have impact on the value of asset. Its realisable value is based on the life time of the asset. Cost of fixed asset includes tax, duties if any time estimations, interest payable on loan (if any) shall be made as per the recoverable value of the asset. At the time of purchase and sale of asset scrap is to be valued accurately. It is the minimum responsibility of an internal auditor to submit relevant documents, which supports the purchase of assets, its value, expenditure incurred for freight and other miscellaneous items such as guarantees and warranties etc. Section 350 of the companies act and section 32 of Income tax act specified in relation with depreciation which has to be shown in financial statement as revenue expenditure (subject to certain exceptions.)
CONCLUSION
So finally we conclude that it is the performance of an internal auditor who performs his/her audit. The reasons for variations between memorandum of understanding and actual work performed by internal personnel is to be qualified and quantified by improving values and ethics, as an individual for effectiveness of the organization. Auditing nowadays has lost the credibility due to the manner in which auditing functions are performed. Effective performance management leads to minimise cost, maximise the ratio of outputs o the inputs. By birth every person is good in nature. But due to external forces such as political corruption in which money paid for favours done and administrative corruption etc may
devalue the persons. So ethical industrial climate, fair policies of the company, and uncorrupted government lead India to maintain standards and values.
REFERENCES
Bookkeeping J.R. Batliboi Business ethics by C.S.V. Murthy Corporate Governance by A.C. Fernando Druckers management Financial Management by Khan and Jain Human Resource Management by P. Subba Rao Indian companies Act 1956 Management by Franklin G. Moore Management of Management by R.K. Laxman Organizational Behaviour by Ashwattappa Performance Management by Prem Chadha PerformanceManagement by A.M. Sarma Principles of Management by C.B. Gupta Principles of Management by Dinkar pagare Principles of Management by Rustom Davar
Journals
Chartered Accountant International Journal of Management HRM journals
News Papers
The Hindu Times of India Economic Times Business Line
Web sites
Google search and Yahoo.com.
FDI Inflows to Automobile Industry in India

Jyoti Tripathi Shukla
International Business, M.B.A. Department, BBDIT Ghaziabad
E-mail: jyotir.shukla09@gmail.com
THE AUTOMOBILE SECTOR IN INDIA

The automobile sector has contributed largely in making India a prime destination for many international players in the automobile industry who wish to set up their businesses in India. Subsequent to the liberalization, the automobile sector has been aptly described as the sunrise sector of the Indian economy as this sector has witnessed tremendous growth. Automobile Industry was delicensed in July 1991 with the announcement of the New Industrial Policy. The passenger car industry was, however, delicensed in 1993. No industrial licence is required for setting up of any unit for manufacture of automobiles except in some special cases. The norms for Foreign Investment and import of technology have also been progressively liberalized over the years for manufacture of vehicles including passenger cars in order to make this sector globally competitive. At present 100% Foreign Direct Investment (FDI) is permissible under automatic route in this sector including passenger car segment. The import of technology/technological upgradation on the royalty payment of 5% without any duration limit and lump sum payment of USD 2 million is also allowed under automatic route in this sector.
According to the latest data available from Society of Indian Automobile Manufacturers (SIAM), the overall production data for April-August 2010 shows production growth of 32.38 percent over same period last year with industry producing 7,063,063 vehicles.
Advantages of FDI in the Automobile Sector in India

The automobile sector in India ranks third in manufacturing three wheelers and second in manufacturing of two wheelers & four wheelers.
Growth Drivers of Indian Automobile Market

Rising per capita income Favourable demographic distribution with rising working population and middle class Urbanisation Increasing disposable incomes in rural agri-sector Availability of a variety of vehicle models meeting diverse needs and preferences Greater affordability of vehicles Easy finance schemes Favourable government policies Robust production Indias position in worlds production Well-developed, globally competitive auto ancillary industry Established automobile testing and R&D centres Among one of the lowest cost producers of steel in the world Worlds second largest manufacturer of two wheelers Fifth largest manufacturer of commercial vehicles Manufactures largest number of tractors in the world Ninth largest car manufacturer in world
INTRODUCTION Eye-Catching FDI Destination India

India is on the peak of the Foreign Direct Investment wave. FDI flows into India
FDI Inflows to Automobile Industry in India 19
trebled from $6 billion in 2004-05 to $19 billion in 2006-07 and are expected to quadruple to $25 billion in 2007-08. By AT Kearneys FDI Confidence Index 2006, India is the second most attractive FDI destination after China, pushing the US to the third position. It is commonly believed that soon India will catch up with China. This may also happen as China attempts to cool the economy and its protectionism measures that are eclipsing the Middle Kingdoms attractiveness. With rising wages and high land prices in the eastern regions, China may be losing its edge as a low-cost manufacturing hub. India seems to be the natural choice. Clearly, manufacturing and service-led growth and the increasing consumerisation makes India one of the most important destinations for FDI.
Auto Sector in India

On the canvas of the Indian economy, automobile industry occupies a prominent place. Due to its deep forward and backward linkages with several key segments of the economy, automobile industry has a strong multiplier effect and is capable of being the driver of economic growth. A sound transportation system plays a pivotal role in the countrys rapid economic and industrial development. The well-developed Indian automobile industry ably fulfils this catalytic role by producing a wide variety of vehicles: passenger cars, light, medium and heavy commercial vehicles, multi-utility vehicles such as jeeps, scooters, motorcycles, mopeds, three wheelers, tractors etc. Until the mid-1990s, automobile industry in India consisted of just a handful of local companies with small capacities and obsolete technologies. Nevertheless, after the sector was thrown open to foreign direct investment in 1996, some of the global majors moved in and, by 2002, almost all the global majors have set up their facilities in India taking the production of vehicle from 2 million in 1991 to 9.7 million in 2006 (nearly 7 per cent of global automobiles production and 2.4 per cent of four wheeler production). Hyundai, Honda, Toyota, General Motors, Ford and Mitsubishi set up their manufacturing bases. The automobile industry has already attained a turnover of Rs. 2, 20,600 crore. The industry provides direct and indirect employment to 13.1 million people. The contribution of the automobile industry to GDP has risen from 2.77% in 199293 to 4.14% in 2008-09. The industry is also making a contribution of 17% to the kitty of indirect taxes of the Government. The automobile sector has been aptly described as the sunrise sector of the Indian economy as this sector has witnessed tremendous growth.
The auto industry is just a multiplier, a driver for employment, for investment, for technology
Major Players in the Automobile Aector

Tata Ford Mahindra Fiat Ashok Leyland Hyundai Bajaj General Motors Hero Honda Volvo Daimler Chrysler Yamaha Suzuki Mazda Over the past four to five years, the country has seen the launch of several domestic and foreign models of passenger cars, multi-utility vehicles (MUVs), commercial vehicles and two-wheelers and a robust growth in the production of all kinds of vehicles. Two multi-national car majorsSuzuki Motor Corporation of Japan and Hyundai Motor Company of Koreahave indicated that Indias manufacturing facilities will be used as a global source for small cars. The spurt in in-house product development skills and the uniquely high concentration of small cars will influence the countrys ability to become a sourcing hub for sub-compact cars.
Indian Players have Learnt from Past Mistakes

A heartening feature of the changing automobile scene in India over the past five years is the newfound success and confidence of domestic manufacturers. They are no longer afraid of competition from the international auto majors. For instance, today, Tata Motors Indigo leads the popular customer category, while its Indica is neck-to-neck with Hyundais Santro in the race for the top-slot in the B category. Meanwhile M&Ms Scorpio has beaten back the challenge from Toyotas Qualis to lead the SUV segment. Similarly, a few Indian winners have emerged in the motorbike market the 150 and 180 cc Pulsar from Bajaj and 110 cc Victor from the TVS stable. The 93 cc Bike from Bajaj and 110 cc Freedom bike from LML have also emerged as winners. Indians have the skills to build cheaper automobiles using appropriate technologies. TVS, for instance, paid an overseas source $100,000 to fine-tune home-grown engines rather than $1.5 million to import the entire engine. Similarly,
M&M adapted available systems and off-the-shelf components from global suppliers to keep costs down and go for aggressive pricing. True, Indian players are still lacking in scale of operation. While economies of scale no doubt play an important role in the auto sector, a few Indian manufacturers relied on innovation rather than scale of operation for competitive advantage. For instance, Sundram Fasteners was able to achieve the feat of directly supplying radiator caps to General Motors purely on the strength of innovation in product quality. The domestic tooling industry bagged the order for the Toyota Kirloskar transmission plant in the face of stiff competition from multinational corporations. The cost of the entire job turned out to be only a fraction of the original estimate.
Milestones in Indian Auto Industry

Foreign companies such as Delphi, which followed General Motors in 1995, and Visteon, that followed Ford Motors in 1998, soon realised the substantial cost advantage of manufacturing components in India.Finding the cost lower by about 30 per cent, they began exploring the possibility of exporting back these low-cost, high-quality components to their global factories and, thus, reducing their overall costs. Not surprisingly, the industrys exports registered a more than four-fold jump to Rs 4,800 crore in 2003-04 from just Rs 1,033 crore in 1996-97. Automobile majors such as Maruti Udyog, Toyota, Hyundai have now finalised their plans to invest in some of the critical auto components. According to the Automotive Component Manufacturers Association of India (ACMA) officials, auto component manufacturers are expected to invest about Rs 10,000 crore over the next five years at the rate of Rs 2,000 crore per annum. At present 100% Foreign Direct Investment (FDI) is permissible under automatic route in this sector including passenger car segment. The import of technology/technological upgradation on the royalty payment of 5% without any duration limit and lump sum payment of USD 2 million is also allowed under automatic route in this sector. Passenger Vehicles segment in 2010 (April-August), grew at 33.88 percent over same period last year. Passenger cars grew by 34.32 percent, utility vehicles grew by 22.56 percent and multi purpose vehicles grew by 50.68 percent in April-August 2010 over same period last year. The overall domestic sale of commercial vehicles segment registered growth of 44.75 percent in 2010 (April-August) as compared to the same period last year. Medium & Heavy Commercial Vehicles (M&HCVs) registered growth at 65.91 percent and Light Commercial Vehicles (LCVs) grew at 29.68 percent.
During 2010 (April-August), three wheelers sales recorded a growth rate of 20.15 percent. While passenger carriers grew by 23.84 percent and goods carriers grew at 5.46 percent in this period. Two wheelers registered a growth rate of 27.22 percent in 2010 (April-August). Scooters, mopeds and motorcycles grew by 44.45 percent, 24.18 percent and 24.41 percent respectively.
Auto Policy
This policy aims to promote integrated, phased, enduring and self-sustained growth of the Indian automotive industry. The objectives are to: (i) Exalt the sector as a lever of industrial growth and employment and to achieve a high degree of value addition in the country; (ii) Promote a globally competitive automotive industry and emerge as a global source for auto components; (iii) Establish an international hub for manufacturing small, affordable passenger cars and a key center for manufacturing Tractors and Twowheelers in the world; (iv) Ensure a balanced transition to open trade at a minimal risk to the Indian economy and local industry; (v) Conduce incessant modernization of the industry and facilitate indigenous design, research and development; (vi) Steer Indias software industry into automotive technology; (vii) Assist development of vehicles propelled by alternate energy sources; (viii) Development of domestic safety and environmental standards at par with international standard.
Automotive Mission Plan 2016

The bumper-to-bumper traffic of global automobile biggies on the passage to India has finally made government sit up and take notice. In a bid to drive greater investments into the sector, ministry of heavy industries has decided to put together a 10-year mission plan to make India a global hub for automotive industry. The ten year mission plan will also set the roadmap for budgetary fiscal incentives Through this Automotive Mission Plan, Government also wants to provide a level playing field to the players in the sector and to lay a predictable future
direction of growth to enable the manufacturers in making a more informed investment decision. The Automotive Mission Plan (AMP) 2006-2016,aims at doubling the contribution of automotive sector in GDP by taking the turnover to USD 145 billion and providing additional employment to 25 million people by 2016 with special emphasis on export of small cars,MUVs,two and three wheelers and auto components.
Vision of Indian Auto Industry

To establish a globally competitive Automotive Industry in India and to double its contribution to the economy by 2016.
Value Based Management: An Alignment of Companys Overall Aspirations and Management Processes
Shikha Sharma
Department of Management Northern India Engineering College, Delhi
E-mail: sharma.shikha3684@gmail.com
VBM is a business philosophy and management system for competing effectively in the global marketplace, based upon the inherent value, dignity and empowerment of each person-particularly each employee, customer and supplier. As a management system, VBM offers a logical framework for designing a companys structures and processes to instil an ownership culture that enables the organization to carry on its mission most effectively. Value-Based Management is not village democracy where every decision is voted upon by all members of the company. Nor is it management by committee. Rather, VBM builds checks-and-balances in the companys governance and accountability system. VBM is not a staff-driven exercise. It focuses on better decision making at all levels in an organization. It recognizes that top-down command-and-control structures cannot work well, especially in large multi business corporations. Instead, it calls on managers to use value-based performance metrics for making better decisions.
Value Based Management... 25
Value based management can best be understood as a marriage between a value creation mindset and the management processes and systems that are necessary to translate that mindset into action. Taken together, these can have a huge and sustained impact on the business. To understand the concept and application of value based management, the foundation and relevance of value creation mindset and the corresponding management processes and systems is required to be mentioned. A value creation mindset means that senior managers are fully aware that their ultimate financial objective is maximizing value; that they have clear rules for deciding when other objectives outweigh this imperative; and that they have a solid analytical understanding of which performance variables drive the value of the company An important part of VBM is a deep understanding of the performance variables that will actually create the value of the business the key value drivers. It is essential to understand these key value drivers because an organization cannot act directly on value. It is through these drivers of value that senior management learns to understand the rest of the organizational activities and to establish a dialogue about what it expects to be accomplished. This is the first phase in value based management system i.e. identification of value drivers. Value driver is any variable that through its functioning, affects the value of the company. To be useful, however, value drivers need to be organized in such a manner so that managers can identify which have the greatest impact on value. Value drivers must be defined at a level of detail consistent with the decision variables. The process of identifying key value drivers can be difficult because it requires an organization to think about its processes in a different way. What is needed instead is a creative approach to identify those drivers that really contribute towards value addition in organisational context. Management processes and systems encourage managers and employees to behave in a way that maximizes the value of the organization. Planning, target setting, performance measurement, and incentive systems are working effectively when the communication that surrounds them is tightly linked to value creation. Adopting a value-based mindset and finding the value drivers gets you only halfway home. Managers must also establish processes that bring this mindset to life in the daily activities of the company. There are four essential management processes that collectively govern the adoption of VBM. First, a company or business unit develops a strategy to capitalize on value. Second, it transforms this strategy into shortand long-term performance targets defined in terms of the key value drivers. Third, it builds up action plans and budgets to define the steps that will be taken over the next year or so to achieve these targets. Finally, it place performance measurement and incentive systems in place to monitor performance against targets and to encourage employees
to meet their goals. These four processes are linked across the company at the corporate, business-unit, and functional levels. Clearly, strategies and performance targets must be consistent right through the organization if it is to achieve its value creation goals. Developing a strategy must always be based on maximizing value; implementation will be different for every organisation level. Senior management devises a corporate level strategy that unambiguously tries to maximize the overall value of the company. The next level strategy necessitates identifying alternative strategies, valuing them and choosing the one that provides highest value.The VBM elements of the strategy include: Assessing the results of the valuation and the key assumptions driving the value of the strategy. Weighing the value of the alternative strategies that were discarded, along with the reasons for rejecting them. Stating resource requirements. VBM often focuses business-unit managers on the balance sheet for the first time. Human resource requirements should also be specified. Summarizing the strategic plan projections, focusing on the key value drivers. Analyzing alternative scenarios to assess the effect of competitive threats or opportunities.
SETTING THE TARGETS

Targets are the way management communicates what it expects to achieve. Once strategies for maximizing value are agreed, they must be translated into specific targets. Target setting is highly subjective, yet its importance cannot be overstated. In applying VBM to target setting, several principles are helpful:
Base Your Targets on Key Value Drivers

Targets should be based on key value drivers and should include both financial and nonfinancial targets so that company becomes competitive in the long run.
Tailor the Targets to the Different Levels Within an Organization

Targets for every level should be clearly stated as per the scope of operations related to that level.
Link Short-term Targets to Long-term Ones

An approach that links performance targets for ten years, three years, and one year. The ten-year targets express a companys aspirations; the three-year targets define how much progress it has to make within that time in order to meet its ten-year aspirations; and the one-year target is a working budget for managers.
ACTION PLANS AND BUDGETS

Action plans translate strategy into the specific steps an organization will take to accomplish its targets, particularly in the short term. The plans must identify the actions that the organization will take so that it can pursue its goals in a systematic manner.
MEASURING THE PERFORMANCE

Under Value Based Management, organisations modify its traditional approach to a new creative approach. In particular, it shifts performance measurement from being accounting driven to being management driven. Key principles include: 1. 2. 3. 4. Tailor performance measurement to the business unit Link performance measurement to a units short- and long-term targets Combine financial and operating performance in the measurement Identify performance measures that serve as early warning indicators
IMPLEMENTING VBM SUCCESSFULLY

Implementing VBM in any organisation is a long and complex process that requires managers to be innovative and creative; its successful efforts share a number of common features (Source: The Mckinsey Quarterly 1994).
Keys to Successful Implementation

1. Establish explicit, visible management support. 2. Focus on better decision making among operating (not just financial) personnel. 3. Achieve critical mass by building skills in a wide cross-section of the company. 4. Tightly integrate the VBM approach with all elements of planning. 5. Underemphasize methodological issues and focus on practical applications.
6. Use strategic issue analyses that are tailored to each business unit rather than a generic approach. 7. Ensure the availability of crucial data (e.g. business-unit balance sheets). 8. Provide standardized, easy-to-use valuation templates and report formats to facilitate the submission of management reports. 9. Tie incentives to value creation. 10. Require that capital and human resource requests be value based.
WEAKNESSES OF VBM
Although a VBM approach can boost the value of an organization, its important to remember that its not suitable for all situations. This is because it adopts a longer term perspective, where you must rely on forecasts, projections, and assumptions about what will (and will not) contribute to the value of the organization. A VBM focused approach may also cause managers to lose sight of social or non-financial measures of corporate success. Being a good corporate citizen can be a factor that adds significant value. Costly projects that reduce the impact on the environment may not appear to add shareholder value in the strictest of terms. However, on analyzing these projects with a broader view of social value, they can actually contribute to long-term, sustainable value. Likewise, decisions that put shareholder needs above those of other stakeholders like employees and customers, can quickly backfire in some industries. It is important therefore, to use an approach like VBM with a scope and perspective that matches your organizations overall mission and goals.
CONCLUSION
VBM is not a management methodology per se but rather it is an organization analyzing, planning, measuring and taking actions in order to achieve objectives of the organisation. VBM can succeed where other methodologies fail because it provides an integrated framework focused on accomplishing the ultimate goal of value creation. VBM combines a number of operational and analytical methodologies together and applies them in an orchestrated, integrated and disciplined manner, focused ultimately on driving the creation of economic value. Under VBM, managers select which methodologies to use, based on the status of their business and their needs, and then plan how the systems and processes will work together. Applying VBM is not based on any formula; depending on the resources available, managers should custom design their own application of VBM
to fit their businesss needs by identifying key value drivers and understanding their applicability and usage. When VBM is implemented well, it brings tremendous benefit. It is like restructuring to achieve maximum value on a continuing basis. VBM aligns a companys overall aspirations, analytical techniques, and management processes with the key drivers of value.
The Indian Capital Market Growing Opportunities and Emerging Trends

Debasish Roy
ITM Education Centre, Kolkata Campus
E-mail: debasishroy1962@yahoo.com
INTRODUCTION Development of the Indian Capital Market

After the introduction of the economic reforms, the capital market in India had experienced sweeping changes since the 1990s. At nearly 40% of GDP the bond market in India was comparable to many other emerging economies of the world. The equity market in India which was nearly 90% of GDP was also way ahead of many emerging economies, although still small relative to the developed markets. Contrary to India, China had one of the worlds top ten stock markets. The market capitalization of Chinas Share Market accounted for $2.3 trillion in May, 2007, the second largest in Asia after Japan ($4.7 trillion) Moreover, there were many deep-rooted persistent economic problems, which were strongly connected to the financial sector. These are mainly due to: the interest rates were stagnant at very low levels. the large scale pre-emption of assets by the government from the banking system for financing its fiscal deficit
The Indian Capital Market 31
excessive structural and micro guideline slowed down financial innovation and increased transaction costs; relatively insufficient level of prudential regulation in the financial sector, poorly developed debt and money markets and finally, outdated technological and institutional structure that transformed the capital markets and the rest of the financial system highly unproductive.
Regulation and Growth Aspects

Due to the need of a vigilant regulatory body, the Securities Exchange Board of India (SEBI) was established in 1988 and became a fully autonomous body by the year 1992 The Government of India (GOI) established the SEBI as a regulator for the capital market, first as administrative body in April 1988 and then conferred a statutory recognition in January 1992.
Composition of the Indian Capital Market

The capital market consists of two interdependent segments: the primary market and the secondary market. The primary market can be described as the channel for formation of new securities. These securities are usually issued by public limited companies or by government agencies. In the primary market, the resources are mobilized and collected either through the public issue of shares or through private placement route now widely available. It is considered as a public issue if anybody and everybody can subscribe for it, whereas if the issue is specifically made available to a selected group of persons it is termed as private placement. There are only two major types of issuers of securities, the corporate entities who issue mainly debt and equity instruments and the Government (Central as well as State) who issue debt securities. These original securities issued in the primary market are traded and dealt with in the secondary market. The secondary market enables participants who hold securities to regulate their holdings in response to changes in their evaluation of risks and returns.
The Sustainability Factor of the Indian Capital Market

Capital Market in India
In the Indian scenario, the term capital market refers to only stock markets according to common mans views, but the capital markets can be defined in a much broader sense. As compared to global perspective, it refers to the various markets like: 1. Government securities market
2. Municipal bond market 3. Corporate debt market 4. Stock market 5. Depository receipts market 6. Mortgage and asset-backing securities market 7. Financial derivates market 8. Foreign exchange market
Structure of Indian Capital Market
The structure of The Indian Capital Market is diverse and varied. In This context many of the above markets are not well developed and well structured to the required degree, and some does not even exist though steps are taken for their inception.
Capital Market and its Effective Role
Capital markets play a dominant role in the development of the Indian economy. The growth of capital markets helps towards raising the per-capita income of the individuals, decreases the levels of un-employment, and thus reduces the number of people who live below the poverty line. With the increasing awareness amongst the people, they start investing in capital markets with a long-term perspective which would in the long run provide capital inflows to the sectors requiring financial assistance.
Indian Capital Market Towards a More Sustainable Growth

Role of Financial Institutional Investors
Financial institutional investors play a dominant role in the capital market and raising of funds. It is an established fact that no FIIS is long term dominated and really have a concurrent opinion of investing in the core sectors of the economy as their ultimate motto is to reap more profits in short term which forces the FIIS to with draw their capital fund suddenly when there is a chance of comparatively and acquiring more profits in other capital markets.
Effect of the PE Ratio
The Price Earnings Ratios of some companies moved in a positive direction for which a rapid increase has been observed over a period of time.
The Stage of Inflation
The levels of inflation were hovering around at a comfortable level The incorporation of SEBI in 1992 and its various practices have been devised and the companies are be asked to fulfill with strict, stringent measures of corporate governance and the extent of disclosure are modified and revised to a huge extent.
ASSOCIATED RISKS IN THE CAPITAL MARKET Types of Risks Involved

While evaluating the investment opportunities by an individual investor, certain key parameters needs to be assessed systematically. Every investment decisions entail certain risks which have to be evaluated properly and undertaken wisely in accordance with investment norms. Capital Market has to encompass certain risks which an individual investor foresees and experiences. For individual success, an investor has to overcome various risks for an effective growth of the capital market. Any individual investor undertakes the various risk factors while investing in the capital markets: The various forms of risks are; Risk of Volatility and Contagions Liquidity Risk Risk of Clearance and Settlement Political Risk Limited Disclosure and Insufficient Legal Infrastructure for Operational Activities
Consequences of Increased Capital Inflows and the Relevant Regulations

(a) Hesitation by the RBI in allowing capital appreciation. (b) Forceful tightening of the monetary policy needs to be a challenge. (c) Fiscal Policy needs to play a more active role and should to be forward looking.
OTHER RECOMMENDATIONS FOR A GREATER TRANSPARENCY Investors Protection Bill

When there was a boom observed in the Indian capital market, a number of
companies have collected funds from the investors through capital markets and gone astray in no time. In order to protect the small investor from this kind of vanishing companies SEBI has drafted a bill clarifying the role of the Department of Company Affairs and acquiring the power to exclude the directors and outline and attach the assets of those specific companies.
Net Broking
Effective from March 2000 SEBI framed guidelines and proposed to initiate Internet broking on Indian securities, which could increase the transparency in the operations and minimize flaws and loopholes in the transactions of Indian capital markets.
Investors Protection Fund

The government of India has notified the establishment of investor protection fund in October 2001 under sec 205c of the Companies Act, according to which a fund will be created with amounts such as amounts in unpaid dividend accounts of companies etc, which have remained, unclaimed and unpaid for 7 years from the date they became due for payment. The creation of this fund shows that the Indian capital markets have reached to a sustainable level ensuring the investors to get back their investments in case of any default of the companies.
FOREIGN DIRECT INVESTMENTS

For ensuring more capital flows, capital market has to ensure that more foreign direct investments flow in an effective manner for an overall growth of the economy. Foreign direct Investments usually concentrate on two aspects, one is In-ward FDI and the other is Out-ward FDI. India being one of the favorite destinations for the investors throughout the world is attracting huge amounts of FDIs, which will be helpful in further strengthening and boosting the roots of the Indian Capital Markets. In other words we can say that some Indian firms rose to the level of investing in foreign countries, which shows the strength of the concerned companies. The presence of these companies in Indian Capital markets would definitely augment the expectations of foreign investors investing in India.
POLICY SUGGESTIONS
For ensuring an overall success of The Indian Capital Market, certain policy framework needs to be implemented and the emerging trends needs to be analysed
for overall success. Once policies are implemented and effective results are realized, one can assess the gains achieved and any diversions can be properly analysed and steps needs to be effectively undertaken. A separate task force has to be setup to monitor and govern the happenings in the capital markets, which should to be given an autonomous power, and should be constituted by the Constitution of India such as Election Commission and Central Vigilance Commission etc. Its role should be constituted regarding the matters such as, Governance of Companies, Disclosure Norms, investing patterns etc. A proper mechanism has to be derived to regulate the operations of FIIs and contain them with required regulations, but at the same time the regulations must not be in such a manner that the FIIs does not get discouraged and withdraw their investments all in sudden. The mechanism should regulate the unexpected capital flight, which could cause rapid vibrations in the capital markets. Government and the governing bodies such as RBI and SEBI should together take required steps to avoid the occurrence of scams, which will lead towards decreasing-morale of the investors. Another way of sticking to sustainability can be said as encouraging and creating open environment, which would bring in huge amounts of FDIs rather than FIIs. Municipal Bonds Market, Depository Receipts Market, Derivatives Market have to be developed to a greater extent so that the trading volumes in these markets will be increased substantially. Awareness among small investors has to be generated, and government has to take certain measures to create awareness and at the same time they must be protected from any kind of defaults. As the chances of risk can never be brought to zero level in any capital market, it should be seen that the risk is reduced to the minimum extent possible. In view with the above-mentioned facts and circumstances it can be justified to say that the growth and sustainability of Indian Capital Markets is a Reality.
CONCLUSION
A steady and growing market size, reliable business community, high levels of intellectual manpower, technological expertise and a dedicated reform process that has brought about impressive economic liberalization, has made India a very attractive destination for investments in capital markets. The Indian Capital Market
is poised for a more buoyant growth for an overall development of the Indian economy to have a stronger foothold and a global presence in the years to come. With more active participation from the government and other regulatory authorities, Indian Capital Market can achieve commendable heights both at present and in future where the fruits can be enjoyed by the economy as a whole.
Innovative Marketing Practices: Need for Competitive Advantage

Rakesh Kumar Yadav
Advance Institute of Management NH-24, Delhi-Hapur Bypass, Ghaziabad
E-mail: rkymoradabad@rediffmail.com
Todays business world is full of challenges and opportunities. Competitive edge is what everyones striving for these days. This is one thing thats making sure every company joins the race to becoming better than the best. Everyone wants to win this race. Every company wants to get better than its competitors. And in order to achieve this, there is a need to innovative marketing practices and experiments. For a business to succeed and penetrate into new market, it is necessary to innovate. Changes are happening all around us and the organizations are trying to learn lessons for business success.
RESEARCH METHODOLOGY Research Design

Exploratory Research Design
Type of Data Used

Secondary Data.
Source of Secondary Data

The Economic Times, Amar Ujala; journals, books & magazines and internet. Objective of the study: 1. To find out the need of innovative practices. 2. To know the various innovative practices adopted Indian companies for competitive advantage.
LIMITATION OF THE STUDY

This research is limited in its coverage. The data is gathered only about a few companies due to lack of time.
Why Innovative Marketing Practices are Required? What is the Need? What are the Drivers Responsible for the Innovative Practices?
These are the few questions which strike in the mind very first when we say that innovative marketing practices can help corporations in their growth. In India, companies are experiencing the changes like opening up of economy, entry of multinational companies, and emergence of upwardly mobile middle class, demographic shift, emergence of youth and integration of information technology. We can put the reasons for the need of innovative marketing practices in two categories: 1. To sustain the market growth. 2. To convert the challenges into opportunities. In the present global competitive environment corporate houses have to nurture innovation and creativity in marketing practices in order to drive growth, manage dynamism and remain competitive. Innovative marketing practices are not only the need of the hour to survive in the global competitive environment of business but also tool for gaining the competitive advantages. Continuous innovation is the key to sustainability and growth of business. We can see why do innovative practices are required for the sustainable growth with these examples: 1. Hero Honda has managed to sustain a very high growth in motorcycle sales for a long period by partnering with villagers in extending its distribution and services network deep into rural India. 2. Maruti which sells every second car in the country has been driving smoothly for a long time now. The key strategy is to create new segments within segments and flank its own offerings. Market watchers believe that it is this strategy that helped the company to smooth sail even in October-December
Innovative Marketing Practices 39
quarter in 2008 when auto sales saw a steep fall. It is now innovating by opening special outlet and execution for its rural consumers where the executives will talk in their regional and local language as these rural consumers afraid of English and therefore hesitate to enter in present urban format of outlet. Maruti has also asked its vendors to lower down the weight of its spare parts by 1gm to lower down the cost of its vehicle and to maintain the sale. While challenges are as follows which require innovative practices: 1. Changing attitude and life style of people 2. Emergence of well informed consumer 3. Increasing consumer awareness; the communication/media revolution 4. Abundance of choices 5. Infrastructure inadequacy 6. Competition from domestic players as well as MNCs 7. Technology advancements/ Internet and mobile revolution 8. Government policies and legal impositions 9. Retail revolution/mall culture 10. Environmental threats India has two type of population, one which live in Bharat and one which live in India. India has different cultural and religious diversity in its society which is a challenge to satisfy their needs and wants. Indian consumers are now becoming more smart and informed about different companies and products as well as brands because of advertising and media revolution. Internet and telephone has helped to speed up the information. He has a lot of choices offered by domestic as well as MNCs. Government is also intervening time to time to secure the interest of consumers and to protect the environment. Retail culture has also emerged as big challenge for the companies to think of innovative marketing practices.
How Did Innovative Marketing Practices Help Different Companies?

Business innovative practices change an industry more than anything. We can see that Indian banking industry has got changed because of electronic banking and introduction of ATM. The aviation market has changed by low cost airlines, especially by Air Deccan which initiated this change to fulfill the dream of a man to fly. The worlds best value car, NANO, is, of course, the most celebrated innovation which helped a common man to own his car. The introduction of ultra affordable per second call charges by Tata Teleservices also has had a transforming impact on the telecom industry. Godrejs compressor-less refrigerator
and Tatas low cost water purifier, Swach, are the great examples of inclusive innovation. But the most far reaching innovation of the past few years has been the introduction of financial transaction on mobile phones.
What are the Innovative Marketing Practices Adopted/Implemented by Different Companies?

Corporations creatively change any of the 4Ps of their marketing mix, differentiate services and provide maximum value to customer. Sustainability of this competitive advantage comes from the development of tightly coordinated and complementary activities and directed towards producing a strategy of differentiation and making a unique offering to customers. The development of sustainable competitive advantage is a vital management function and an important requirement is the nurturing of a knowledge creating environment to enable the organization to exploit and develop resources better than rivals and create sufficient knowledge to address the industrys future success factors. Following are the various innovative marketing practices adopted by different companies:
INNOVATION IN PRODUCT Modifying the Product & Product Mix

Modifying a product in any way is a very common practice of the corporations. They change the size, colour, shape and even style to tag it NEW in the existing products. Companies also change the product line, its length and width too. Line stretching, Line extension and cannibalizations are the few practices adopted for that. Mobile phone companies as well as automobile companies are using these marketing practices very well. Nokias N series and E series models are the examples of line extension. Innovative ideas are converted into new products like jugaad, an innovative idea for simple and easy mode of transportation in North Indian villages and small towns.
Packaging
Eco friendly, Reusable containers, small packs which are easily affordable and convenient to carry are adopted. Leading modern retailer Future group launched its private brand Tasty Treat soup with a mug last year. Although, table manners specify that soup must be have in a bowl, Future Group decided to offer soup in mugs, an idea the consumer was more at ease.
Sachetization: CavinKare
It is the company behind the highly successful concept of sachets which is reckoned in the personal skin and healthcare segments. Starting from sachetization of its Chik shampoo to the ever-popular Fairever cream that took the FMCG granddaddy HLL, with its entrenched fairness brand, Fair & Lovely head-on, CavinKare is making successful inroads into the rural as well as urban households. CavinKare embraces the classic long-term approach to marketing, i.e. maintaining exclusivity of the customizing product and packaging.
Design & Offer

Auto Companies Hire Global Designers
This is one of the steps Indian. Auto companies are taking to get rid of tuff competition. They are keen to tap the global market, have turned to design to cater to the discerning overseas customers. Designs will be the differentiator in the current globalized environment, since performance, quality and cost are getting common. Maruti is hiring from Detroit and Bajaj auto is hiring Edgor Heinrich from BMW.
Indian Railway on the Path of Innovative Practices
Indian railway has experimented by introducing an extra side upper birth in its sleeper coach to handle the problem of long waiting of reservation as well as to utilize the optimum space inside the coach. It is now about to start double decor trains very soon.
Global had to Become Glocal
McDonald adopted this practice and redesigned its offers. It included in its menu McAloo Tikkis, McVeggies etc.
INNOVATION IN MARKET SEGMENT

Companies also modify their market segment to sustain their market growth. Like, HUL started Operation Bharat to tap the rural markets. Under this operation, it passed out low-priced sample packets of its toothpaste, fairness cream, Clinic plus shampoo, and Ponds cream to twenty million households. ITC is setting up eChoupals, which offers the farmers all the information, products and services they need to enhance farm productivity, improve farm-gate price realization and cut
transaction costs. Farmers can access latest local and global information on weather, scientific farming practices as well as market prices at the village itself through this web portal - all in Hindi. It also facilitates supply of high quality farm inputs as well as purchase of commodities at their doorstep. Mahindra and Mahindra, a well known name in four wheeler segment has adopted concentric diversification by entering two wheeler automobile markets with its brand DURO. Post office and banks are selling insurance policies.
INNOVATION IN PRICING
Pricing plays very important role. We have seen in the beginning that Maruti has also asked its vendors to lower down the weight of its spare parts by 1gm to lower down the cost of its vehicle and to maintain the sale.
Air Deccan: Revolutionizing the Indian Skies

Air Deccan, Indias First Low-cost Airline(LCA) has kept its operating cost under tight control through many innovative practices, like, most of the tickets are sold through the internet which reduces the cost of paper and print. Seats are narrower to increase seating capacity. Meals and drinks are provided for price.
NANO Houses SUBH GRIH

A 283 square feet flat comprising a room and a kitchen at Boisar, 100 km from Mumbai would be priced at 3.9 lac under the brand SUBH GRIH. The companys strategy is to build the township in industrial areas instead of residential areas to cater to the industrial workers housing needs.
Do the New that Our Simple Funda

Gurinder Sandhu, chief marketing officer (CMO), TATA Docomo said do the new, that our simple funda. Tata offered its GSM mobile service into the big league straight away through a flurry of attractive schemes-the latest being one paisa per second roaming. JIT model is adopted by different companies in inventory management to reduce the cost.
INNOVATION IN PROMOTION
Companies are not dependent on traditional way of promotion but they are adopting Integrated Marketing Communication, direct marketing, SMS promotions, viral marketing, and web advertising etc. We know the success story
of JOJO of Vodafone, ads of happy dent white chewing gum. Ads of coca cola targeted for different community by customized promotion and emotional connectivity.
INNOVATION IN DISTRIBUTION
The Companies are adopting e-retailing in modern days, Computer and phone shopping is become common practice for competitive advantage. Free home delivery and collecting orders are the other means. Data base management system is used to keep the records update. Apart from these 4Ps Companies are adopting EMI schemes by providing product through credit and loans. Green marketing and creating green jobs, Corporate Relationship marketing and Corporate Social Responsibility like Driving Schools of Maruti and e shopping are the other innovative practices used by different companies for their competitive advantage. Companies are also investing in R&D and technology.
CONCLUSION
It is vital to reinvent business practices to survive in an ever changing business environment. Changes in laws and regulations, technology, business conditions and competition require a business to adapt smart way of doing business. For India to be recognized as a world leader in innovative practices, it is essential for it to walk the path of innovation and not the path of replication.
FDI in Higher Education in India

Imran Ali
Noida Institute of Engineering & Technology, Greater Noida
E-mail: myyellowone@gmail.com
ABSTRACT
Private investment in higher education is an order of the day. Of course, it should have happened decades ago. The cost of not doing so has given us a mediocre teaching infrastructure, poor financial incentives to a teacher, outdated teaching pedagogies and poor research and development facilities. Higher education is all about generating knowledge, encouraging critical thinking and imparting skills relevant to the society and industry. The growth of Indias higher educational institutions has indeed been spectacularly rapid. The numbers of universities have doubled since 1990-91, and enrolment has become more than doubled. But this has been at the expense of quality, increased rigidity in course design, poor absorption of knowledge, and growing lack of access to laboratory facilities, journals and opportunities for field work, etc. Private investment in higher education will help us to have qualified and competent faculty, well developed infrastructure and new teaching pedagogies. This paper has given due emphasis on pros and cons of FDI in higher education in India. This paper has also highlighted the impact of FDI in higher education on quality, research and development, innovation and employability. Keywords: FDI, Higher Education, Quality, Skill Development
FDI in Higher Education in India 45
INTRODUCTION
FDI stands for Foreign Direct Investment, a component of a countrys national financial accounts. Foreign direct investment is investment of foreign assets into domestic structures, equipment, and organizations. It does not include foreign investment into the stock markets. Foreign direct investment is thought to be more useful to a country than investments in the equity of its companies because equity investments are potentially hot money which can leave at the first sign of trouble, whereas FDI is durable and generally useful whether things go well or badly. Foreign direct investment (FDI) is defined as an investment involving a long-term relationship and reflecting a lasting interest and control by a resident entity in one economy (foreign direct investor or parent enterprise) in an enterprise resident in an economy other than that of the foreign direct investor (FDI enterprise or affiliate enterprise or foreign affiliate). FDI implies that the investor exerts a significant degree of influence on the management of the enterprise resident in the other economy. Such investment involves both the initial transaction between the two entities and all subsequent transactions between them and among foreign affiliates, both incorporated and unincorporated.
REVIEW OF LITERATURE
Education is becoming vital in the new world of information. Knowledge is rapidly accredited replacing raw materials and labour as the most critical input for survival and success. Higher education enhances a countrys capacity for participation in an increasingly knowledge-based world economy and has the potential to enhance economic growth and reduce poverty. Thus higher education has assumed even greater significance for developing countries, especially for those like India experiencing services-led growth. In this context, the foremost question that arises is: can the Indian higher education system sustain its competitiveness in the world economy and cater to the growing demand for higher education? Already doubts have emerged on the existing systems potential to generate required number of high-quality professionals. Lack of resources is not the only issue staring in the face of the government. Existing institutes of higher learning like the Indian Institutes of Technology (IITs) have become complacent. Significantly, no Indian university made it to a recent survey of the 100 greatest universities of the world, while even some Japanese and South Korean universities found mention on the list. According to McKinsey (2005), only 25 per cent of engineers, 15 per cent of finance and accounting professionals and 10 per cent of professionals with degrees, in India,
are suitable for work in multinational companies. This high-lights the differential quality standards existing across institutions in the country. Differential quality standards in higher education are closely linked to the prevailing excess demand for higher education in India and lack of competition among the providers. The excess demand is apparent from the rising number of students going abroad and spending almost $ 4 billion annually for higher education. The US, the UK, Australia and New Zealand are the main beneficiaries, being large exporters of higher education.
OBJECTIVES OF THE STUDY

To To To To To To understand education system in India. know pillars of Indian Education system. know the impact of FDI in education on research and quality teaching. point out recent development in higher education in India. review the impact of FDI in Higher education. understand the role of globalization and its impact on Higher education.
The present work is based on the secondary information collected from the various resources concerning to the education and research. Secondary information is collected from management libraries, journals, newspapers and magazines. This paper attempts to discuss in detail likely impact of FDI in higher education in India.
RATIONALE FOR FDI IN EDUCATION Private Sector Participation

Traditionally education is considered to be non-tradable. The government is used to fund education through domestic resource mobilization. In the Higher Education, 90s is the decade of falling percentage budgetary allocation on secondary, higher and technical education. The resource crunch in these sectors have adversely affected the public sector and promoted the private sector participation at almost all levels of education. To raise the participation rate for 7 percent to 10 percent targeted by the end of tenth plan is also an uphill task in view of impending financial shortage. It may be argued that FDI may be used as a source of investment at least in some selected sectors.
Quality Education with Market Orientation

Argument in favour of FDI in education is that foreign institutions can bring quality programs with market orientation. Besides, updated curricula, teachinglearning processes, evaluation of processes may be internalized within educational institution in India. It may also reap the benefits of improved managerial and organizational skills to run the institutions. It is also argued that FDI could promote competitiveness in the education system as a whole.
Export of Indian Education Abroad

It is also argued that there is a positive correlation between FDI and export. Hence it is argued that allowing FDI in education might lead to export of Indian education abroad in which there are large potentials in South East Asia, Africa, Latin America etc. Education may, therefore, turnout to be net exporter and earner of foreign exchange. It is, however, maintained that foreign institutions would be interested to exploit the large market in India, rather than exporting education from India. There is also no empirical evidence to show the positive association between FDI and export. Since nations cannot remain isolated in this age of globalization, therefore, the FDI policy should be linked to specific sectors and the specific objectives.
FDI and GATS

In the background of GATS the policy on FDI needs to be discussed. So far in the era of bilateralism, the investment has followed the trade in manufacturing and quite often the reverse in the case of services. Commitments and conditions for investments were mutually agreed upon. GATS are directly not an investment agreement. It is a trade agreement in services that is multilateral and guided by minimum rules principles. Hence, institutional and legal inter linkages under GATS also necessitate the FDI gearing to fulfilling trade based needs arising from inter linkages. It should be noted that investment is one of several different ways of gaining access to market. There is no investment protection provision as found in bilateral agreement. Hence, if there is commitment to allow commercial presence in Mode III, no control in FDI is possible. The next important point is that both existing and future bilateral and regional investment agreements will need to take its provisions fully into account including strong MFN commitment. It means that opening any sector today for any country would mean opening the sector probably for all countries under GATS. Some year ago, there used to be heated debate in the country about the consequences of opening up banking, insurance
and telecom services where the government has important social and economic obligations. The blame was attributed, often wrongly, to Indias commitments under the WTOs General Agreement on Trade in Services (GATS). While the debate in these latter services has died down, perhaps, due to the productivity and quality improvements witnessed since their liberalization, it has shifted to other areas, such as higher education services.
PROS OF FDI IN HIGHER EDUCATION IN INDIA

1. Due to lack of funds it is not possible to increase the number of state funded universities and colleges. Therefore FDI in higher education is solving this problem. 2. A large number of Indian students go abroad for higher education but by allowing foreign educational institutions opening their campuses in the country will stop the outflow of Indian students thus allowing quality higher education in own country which would be less expensive. 3. It is also argued that foreign higher educational institutions would create competition with the local institutions enabling them to become internationally competitive. 4. This competition would force the local institutions to change their curricula and respond to the immediate needs of the students. And by this, the degrees offered by these institutions will become internationally comparable and acceptable. 5. Further, the FDI in education would create new institutions and infrastructure and generate employment.
CONS OF FDI IN HIGHER EDUCATION IN INDIA

1. The FDI in higher education are not concerned about our culture and society. Its motive is profit and market. 2. By their money power foreign institutions would be able to attract best teachers and financially well off students from local institutions affecting them adversely. 3. Since competition entails reduction in costs, infrastructure, laboratories and libraries would find least investment and also teachers and non-teaching staff being appointed without necessary qualifications 4. These institutes charges high fees which would also result in local private institutions raising their fee charges to establish competitiveness affecting adversely those students who are studying in local private institutions.
5. These institutes would tend to repatriate as much profit as possible back home thus accelerating the outflow of foreign exchange from the country. 6. A survey found that 44 out of these 150 odd programmed are unaccredited and unrecognised in their own countries.
CONCLUSION
In the era of the knowledge economy, we need to expose our next generation to alternative models of education, and streams of knowledge. The entry of foreign education providers may also help stimulate our existing educational system to rethink its ways of working. Competition rather than fiat is the best way to accomplish this much needed transformation. The downside of the new policy is that access to the foreign providers programmes will be dominated by the elite segment of the population, as fees and other conditions of entry will tend to favour them. A key issue here is how the entry and operation of foreign universities should be regulated. Our existing regulatory mechanisms have not been very effective, to put it mildly. Given this limitation, my advice is that entry should be limited to institutions that are accredited by reputed bodies in their own countries.
REFERENCES
George Iype, Be Cautious With FDI In Education: Arjun Singh, Rediffnews, September 21, 2006. George Iype, Foreign Universities In India? No, Say Arjun Singh, Left Parties, Rediffnews, September 14, 2006. K.D. Raju, Barriers To Trade In Education Services Under The Gats: An Indian Experience, Amity Law Review, Vol. 5, Part 1, January 2004-June 2004. S. Vishwanathan, FDI And False Hopes, Frontline, December 1, 2006. S. Chinnammai, Effects Of Globalisation On Eduation And Culture, ICDE International Conference, 2005. S. Savithri And K. Murugan, Global Trade In Educational Services: Implication On Open And Distance Learning (ODL), ICDE International Conference, 2005.
Conceptual Analysis of TQM

Harkanwaljeet Kaur Mann
SSD Womens Institute of Technology, Bathinda, Punjab
E-mail: brar_harkanwal@yahoo.co.in
Keywords: TQM, EFQM, TQC, Critial Path Analysis, SPC
TOTAL QUALITY MANAGEMENT THE CONCEPT

The term Total Quality Management first appeared in 1961, when the concept was devised by A.V. Feigenbaum and named Total Quality Control (TQC). Beginning from 1950,the other scholars such as Deming and Juran, taught for more than 40 years quality ideas without using the adjective total. In 1988, the presidents of 14 European Countries created the European Foundation for Quality Management (EFQM) to reach totals Customer Satisfaction. Feigenbaum the originator of the term, defines TQM as the Total Quality Controls Organization wide impact. A Brockman has defined that TQM is a management philosophy, embracing all activities through which the need of customer, the community and the objectives of the organization are satisfied in the mast effective and potential of all employees in continuing drive for improvement. Oakland (1989), defines TQM as, an approach to improving the effectiveness and flexibility of business as a whole. It is an essential way of organizing and involving the whole organization, every department, every activity, every single person at every level.
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According to Djerdjour & Patel (2000) TQM cannot be fully understood through on definition only. In support of their argument and on analyzing the various TQM definitions available in literature, TQM can be classified under the following headings:
TQM as a Culture
According to Sashkin & Kiser (1993) TQM means that the institutions culture is defined by and supports the constant attainment of customer satisfaction through an integrated system of tools, techniques & training .This involves the continuous improvement of institutional process, resulting in high quality products and services.
TQM as Management and Institutional-Wide Process

According to Parzinger & Nath(2000) TQM is a management process and institutional-wide process to install a culture of continuous improvement in an institution to ensure that the institution consistently meets and exceed customer requirements.
TQM as a Management Philosophy and Guiding Principles

According to Djerdjour & Patel (2000) TQM is a management philosophy, which seeks continuous improvement in quality of all processes, people, products and services of an institution. Continuous improvement can be achieved through internal and external improvements.
TQM as a Strategy
Jones (1994) defines TQM as ... a strategy for improving institutional performance through the commitment of all employees to fully satisfying agreed customer requirements at the lowest overall cost through the continuous improvement of products and services, business processes and people involved.
TQM as a System
According to Evans & Dean (2003) TQM is a total system approach and an integral part of high level strategy; it works horizontally and vertically across all functions and departments ,involves all employees, top to bottom ,and extends backward and forward to include the supply chain and customer chain.
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Challenges of Globalization: Strategies for Competitiveness
Based on above mentioned analysis of TQM definitions by different Experts the following common definition of TQM is developed for this research, namely: TQM is a strategy and process to manage institutions as an integrated system of principles, methods and best practices that provide a framework for institutions to strive excellence in everything they do under commitment and leadership of top management , supported by education and training ,open communication, change management, regular self assessment, support structures ,system and resources, which empower employees through motivating them to improve their performance as a team to deliver continuously improved quality products and services. Through this approach a corporate TQM culture will be established, to satisfy and Exceed the internal and external customer requirements at the lowest overall cost to increase institutional performance in all areas such as service results ,financial results, customer results, society results ,marketing results, operational results and employee results to obtain world class Quality.
PRINCIPLES OF TQM
Based on his work with Japanese managers and others, Deming (1986; Walton, 1986) outlined following 14 points as the principles of TQM: 1. Create constancy of purpose toward improvement of product and service, with the aim to become competitive and to stay in business, and to provide jobs. 2. Adopt the new philosophy. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change. 3. Cease dependence on mass inspection to quality. Eliminate the need for inspection on a mass basis by building quality into the product in the first place. 4. End the practice of awarding business on the basis of price tag. Instead, minimize total cost. Move toward a single supplier for any one item, on a long-term relationship of loyalty and trust. 5. Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs. 6. Institute training on the job. 7. Institute leadership. The aim of supervision should be to help people and machines and gadgets to do a better job. 8. Drive out fear, so that people may work effectively for the company.
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9. Break down barriers between departments. People in research, design, sales, and production must work as a team, to foresee problems of production and in use that may be encountered with the product or service. 10. Eliminate slogans, exhortations, and targets for the workforce asking for zero defects and new levels of productivity. 11. (a) Eliminate work standards (quotas) on the factory floor. Substitute leadership. (b) Eliminate management by objective. Eliminate management by numbers, numerical goals. Substitute leadership. 12. (a) Remove barriers that rob the hourly worker of his right to pride of workmanship.(b) Remove barriers that rob people in management and in engineering of their right to pride of workmanship. 13. Institute a vigorous program of education and self-improvement. 14. Put everybody in the company to work to accomplish the transformation. The transformation is everybodys job.
CHAIN REACTION
Deming stresses the higher quality and improvement in quality leads to higher productivity, which in turn leads to long term competitive strength. The Deming chain reaction shown below summarizes this view:
Fig. 1: Deming Chain Reaction
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TOOLS AND TECHNIQUES OF TQM

Following table shows various tools and Techniques used in TQM: Table 1: Tools and Techniques of TQM
Statistical Process Control ISO 9000 series Pareto Analysis Matrix Diagram Histograms Tree Decision Diagram Critical Path Analysis Fishbone or Ishakawa Diagram
Statistical Process Control (SPC)

SPC is a statistical method through which managers can control the production or the service delivery process, in order to make shifts attempting to improve it (Goetsch & Davis, 1994). As Dale and Oakland (1991) argue the basic objective of SPC is to reduce variation, which is inherent in many processes. SPC is one of the most well-known management methods.
ISO 9000 Series

ISO 9000 is an international set of documents widely known as standards written by a worldwide organization known as the ISO/Technical Committee 176 (Lamprecht, 1992). This set of standards ensures that a company has a specific quality improvement policy, which makes it more competitive in the market.
Pareto Analysis
Pareto Analysis is a tool through which the management team can eliminate problems that occur in the operation processes (Bicheno, 1998). According to Dale (1999), it is an extremely useful tool for considering a large volume of data in a manageable form (p. 296).
Matrix Diagram
Matrix Diagram is a tool that allows managers to identify, analyze, and rate the relationship between two or more variables, and in this way to encourage them
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to think in terms of relationships, their strengths, and any patterns (Besterfield, Besterfield-Michna, Besterfield, & Besterfield-Sacre, 1999).
Histograms
Histograms graphically demonstrate the relative number of occurrences of a wide range of events (Bicheno, 1998). The most important causes are shown on the diagram and correcting actions take place.
The Tree Diagram

It is systematic diagram method (Dale, 1999), which is a tool through which someone can arrange targets, problems, or customers needs in a specific order.
Critical Path Analysis (CPA)

Critical path analysis (CPA) tool is associated with managing projects. It is related to TQM because project management is critical to the implementation of quality programs within an organization. CPA seeks to establish, through the use of a network of arrows or nodes, a logical order of activities in terms of time and importance for the completion of a project (Bicheno).
Fishbone or Ishakawa Diagram

The fishbone diagram is used to identify causes of a problem without using statistical methods (Bicheno, 1998; Goetsch & Davis, 1994).
IMPLEMENTING TQM TECHNIQUE IN LIBRARIES

Use of TQM in the Library sector stared in late 1980s, though early studies show that this approach was not successful in many libraries. But there are many areas of library work where TQM principles and procedures are readily applicable, such as acquisition and processing new books, selecting suppliers, demanding of them the fast and accurate supply(changing them if they do not supply in time),and ensuring that the books are accessioned, catalogued and shelved speedily at the minimum cost consistent with relevant standards. Customers and suppliers can be identifies for all of these activities. Other area that are clearly amenable to TQM approach are retrieval from closed stacks and loans to borrowers, the reshelving of books and binding.
Stella Pilling (1997) stressed that several major features of TQM are highly relevant for libraries, such as: The emphasis on customers The delegation of work The involvement of staff at all levels Process rather than function
Need for continuous improvement. TQM as a management tool needs to radically rethink the way in which a library is organized and perform its functions. TQM is seen as a commitment to service with a flexible and future oriented approach to management. Susan present a Model for the implementation of TQM in library setting. It outlines 10 step process divided in to four stages down:
Phase One
The activities covered in phase one quite useful to arrange a seminar exploring the implication of current technological development and other social changes that enhance the growth of Library Community.
Phase Two
Phase two gives emphasis on organizing quality once the commitment to TQM and the decision on the TQM methodology and structure is made and library automation training should be given all employees.
Phase Three
Phase three involves an evaluation of current work processes and relationship of this process to customer needs and expectations. Heavy on team activity and team members will be given.
Phase Four
Some employees even may need training even in new jobs skills as a result of changed work processes particularly when a manual Library is being converted into automated library. While implementing TQM in Library Services a different sets of skills are required, Training is the key component in TQM which up grades the skills of staff.
Conceptual Analysis of TQM 57
Fig. 2: Implementation of TQM in Library
BARRIERS FOR TQM IMPLEMENTATION IN LIBRARIES

Managements fear of loss of control. Employee Reluctant to recommend changes because of fear of management. TQM requires long term investment of time over several years as processes are analyzed and organizations culture is changed-this can cause resistance.
CONCLUSION
The findings of this research attest to the benefits that accrue from the implementation of TQM. It has shown that it is a strategic tool for an organization to employ in the quest to remain competitive. If adequately deployed, the principle brings about added value to an organization in the terms of efficiency in operation, employee satisfaction, customer satisfaction, and even profitability .The finding also revealed that the relentless pursuit of improvement in service delivery bring about added value to customers by making the organization focused on satisfying customer needs, while team work and training empowers employees for continuous improvement drive of organization.
REFERENCES
Chandrakant T. Chavan: Total Quality Management: An Overview in Libraries and Information Centers. Dhiman, A K. and Rani, Yashoda. Library Management : a manual for affective management , Ess Ess publications, New Delhi 1999 p. 40-47. Encyclopedia of Library and Information Science: Total Quality Management, Vol. 61. Relating Quality Management to Strategic Planning by Maurice B.Line. Understanding Total Quality management in Context: Qualitative Research on Managers Awareness of TQM Aspects in the Greek Service Industry by Alexandros G. Psychogios, The Qualitative Report Volume 12 Number 1 March 2007 .pg 40-66.
E-mail Marketing as a Tool of Direct Marketing

V.V. Devi Prasad Kotni
Department of Management Studies, GVP College for Degree and PG Courses, Visakhapatnam, Andhra Pradesh
E-mail: devi_kvv@yahoo.com
Keywords: Direct Marketing, E-Marketing, E-mail Marketing, Direct to Customer Advertising, Internet Marketing
INTRODUCTION
Direct Marketing is a form of promotion that reaches its audience without using traditional or formal channels of advertising, such as TV, newspapers or radio. Businesses communicate straight to the consumer with advertising techniques such as fliers, catalogue distribution, promotional letters, and street advertising. Direct marketing is predominantly used by small to medium-size enterprises with limited advertising budgets that do not have a well-recognized brand message. A well-executed direct marketing campaign can offer a positive return on investment as the message is not hidden with overcomplicated branding. Direct Marketing is straight to point with out any noise in communication. Many companies use direct marketing, and a current example of its use, as part of a business model, is the
way in which it is used by low-cost airlines. There is no intermediary or agent, customers book tickets directly with the airlines over the Internet. In the current World of Economic Crises, all companies are looking for reducing costs in all aspects right from managerial functions to marketing functions and production functions to promotion functions. After a Product is ready to serve the need of the customer, the product is to be released in the market. The Marketers should place the product in the minds of the customers. E-mail Marketing is a Direct Marketing tool, to promote the product directly to the customer with out any broadcasting media through Internet. According to World Internet Usage Statistics, the numbers of Internet users are 1,596,270,108. Here is a chance of tapping these many number of customers to promote the products through online. The popular e-mail service providers like Yahoo, Microsoft, Google and America Online are providing free e-mail accounts for users across the world. There are 256.2 million users for Microsoft Web Mail, 254.6 million users for Yahoo, 91.6 million users for Google, 48.9 million users for AOL. With this wide range of users across the world the MNCs can easily promote the products through E-mail. Researchers estimate that United States firms alone spent US$400 million on E-mail marketing in 2006. Various costs associated with advertising are advertising cost, film cost, media cost and its frequency. Practicing Direct Marketing can eliminate all these costs.
WHAT IS E-MAIL MARKETING?

Direct Marketing is the process of promoting goods and services directly to the customers with out any intermediatory. Direct Marketing can be practiced through Direct Mails, Mail Order Catalogs, Own Retail Outlets and E-mail Marketing. Email marketing is a form of direct marketing which uses electronic mail as a means of communicating commercial or fundraising messages to an audience. According to Traditional Marketing, a Potential Customer is one who has willingness to buy and ability to pay. But, according to E-Marketing, a Potential Customer is one who is a net savvy. According to E-mail Marketing, a Potential Customer is one who has an e-mail account. However, the term E-mail Marketing is usually used to refer to: 1. Sending Emails with the purpose of enhancing the relationship of a merchant with its current or previous customers and to encourage customer loyalty and repeat business. 2. Sending Emails with the purpose of acquiring new customers or convincing current customers to purchase something immediately, adding advertisements to Emails sent by other companies to their customers.
E-mail Marketing as a Tool of Direct Marketing 61
3. Sending Emails over the Internet, as E-mail did and does exist outside the Internet (e.g., network E-mail).
WHY E-MAIL MARKETING?

E-mail Marketing is an extremely powerful marketing tool. E-mail is valued by users for timely, rich and enticing information and advertisements. E-mail is a very versatile medium. Formats range from simple text to HTML & rich media. Content can be one-size-fits-all or highly customized. Frequency can consist of fixed, frequent intervals or periodic intervals, with transmissions occurring only when something newsworthy comes along. From promotional emails to newsletters, e-mail marketing activity will produce strong results for you as long as you say the right thing, in the right way, at the right time, to the right person. An effective e-mail marketing strategy includes content and frequency planning, creative and content development and usage of a spam-free deployment system as well e-mail campaign tracking, analysis and reporting. From Search Engine Optimization to E-mail Marketing campaigns if well planned, deployed and managed, Internet marketing activity will help to meet your objectives in a cost-effective and measurable manner. If used correctly, e-mail marketing offers great benefits as follows. Quicker and cheaper than direct communication. Speed of response. Targeting according to user preferences. Personalization. Immediately trackable and measurable. Niche areas of interest can be reached. Drive more qualified traffic. Increase leads and sales. Maximize brand visibility. Give your site a competitive advantage. Become a cost effective addition to your online marketing mix. E-mail marketing is, as the name suggests, the use of e-mail in marketing communications. Sending direct promotional emails to try and acquire new customers or persuade existing customers to buy again.
Use E-mail Marketing to acquire new customers
Sending emails designed to encourage customer loyalty and enhance the customer relationship.
Placing your marketing messages or advertisements in emails sent by other people. E-mail marketing is generally benefited for Consumer Businesses Universities & Private Education Industrial Businesses Non-Profits organizations Service Firms
Associations & Trade Groups E-mail marketing is the right way to market your business via e-mail. E-mail marketing activities includes: List Rental and Media Buying Co-Registration Crafting Compelling Subject Headers E-mail Copywriting and Design Developing Incentives Response-Planning Tracking and Campaign Evaluation
E-mail as a Relations Management Tool The reason for e-mail marketing popularity Sending e-mail is much cheaper than most other forms of communication. E-mail lets you deliver your message to the people. E-mail marketing has proven very successful for those who do it by right way. E-mail Marketing is not expensive. E-mail Marketing is very effective. E-mail Marketing Generate Immediate Response. Marketing to Targeted Segment. E-mail Marketing is simple to communicate.
WHAT ARE PROS AND CONS OF E-MAIL MARKETING?

E-mail marketing (on the Internet) is popular with companies for several reasons: A mailing list provides the ability to distribute information to a wide range of specific, potential customers at a relatively low cost. Compared to other media investments such as direct mail or printed newsletters, E-mail is less expensive. An exact return on investment can be tracked and has proven to be high when done properly. E-mail marketing is often reported as second only to search marketing as the most effective online marketing tactic. The delivery time for an E-mail message is short (i.e., seconds or minutes) as compared to a mailed advertisement (i.e., one or more days). An advertiser is able to push the message to its audience, as opposed to website-based advertising, which relies on a customer to visit that website. E-mail messages are easy to track. An advertiser can track users via autoresponders, web bugs, bounce messages, unsubscribe requests, read receipts, click-throughs, etc. These mechanisms can be used to measure open rates, positive or negative responses, and to correlate sales with marketing. Advertisers can generate repeat business affordably and automatically. Advertisers can reach substantial numbers of E-mail subscribers who have opted in (i.e., consented) to receive E-mail communications on subjects of interest to them. Over half of Internet users check or send E-mail on a typical day. E-mail marketing is paper-free (i.e., green). Tracking and response metrics enables tuning and optimisation of the E-mail marketing channel by a process of testing different variants and calculation of statistically significant results.
LIMITATIONS OF E-MAIL MARKETING

Internet system administrators generally create problems for E-mail Marketing practice. Adminsdtrators sent the E-mail Advertising mails to either spam or Drafts. If so, the message may not reach the target customers. Illicit E-mail marketing practices predate legitimate E-mail marketing. It is frequently difficult for observers to distinguish between legitimate and spam E-mail marketing.
A report issued by the E-mail services company Return Path, as of mid-2008 E-mail deliverability is still an issue for legitimate marketers. According to the report, legitimate E-mail servers averaged a delivery rate of 56%; twenty percent of the messages were rejected, and eight percent were filtered. Due to the volume of spam E-mail on the Internet, spam filters are essential to most users. Some marketers report that legitimate commercial E-mail messages frequently get caught and hidden by filters.
WHAT ARE APPLICATIONS OF E-MAIL MARKETING?

E-mail Marketing should be used when the product is targeted at people who are net savvy. E-mail Marketing is the best tool for promoting Industrial products. When the company is practicing one-to-one marketing, e-mail marketing is the best alternative. E-mail marketing applicable when a lot of information should be provided to the customer ex. All technical products or investment services etc.
SUGGESTIONS FOR SUCCESSFUL E-MAIL MARKETING

Avoid E-mail Marketing During the Holidays. Avoid Mistyped Addresses by Requiring Retyping. Create a Clear Call to Action in E-mail Marketing Campaigns. Dont Fix Mistyped E-mail Addresses. Dont Forget the Preview Pane in Your Campaign. E-mail Marketing Needs to Reflect Your Corporate Design. Get Subscribers Through Cooperation with the Competition. HTML or Plain Text: Let Your Recipients Decide. Include an Easy to Use Unsubscription Link in Newsletters. Inform Your ISP About Your E-mail Marketing Activities. Learn from Spam. Make it Easy for Subscribers to Change Their E-mail Address. Make Sure Unusbscriptions are Effective Immediately. Marketing: If You Use Sound, Make Sure it Rocks. Motivate People to Sign Up for Your Newsletter with a Bonus.
Reply to Requests Within 1 Day. Send Newsletters at Least Once a Month. Send Newsletters On Time. Successful E-mail Marketing is 1-to-1 Permission Marketing. Test the Layout of Your Newsletter with E-mail Clients. Test the Links in Your E-mail Marketing Messages. Use Your Brand in the Subject.
CONCLUSION
E-mail Marketing is applicable only when the target customers are Internet users. If the target customer is identified with a valid e-mail ID the marketing campaign will be successful. The marketers will save all costs associated with traditional advertising. E-mail is valued by users for timely, rich and enticing information and advertisements. E-mail is a very versatile medium. By increasing number of net users, the practice of E-mail Marketing is also increasing. So its time to concentrate on E-mail Marketing for Corporate to increase the reach and decrease the cost.
Investment Climate and Competitive Performance of Manufacturing Firms in the South-West Region of Bangladesh
Mohammed Ziaul Haider
Economics Discipline, Khulna University, Khulna, Bangladesh
E-mail: haidermz@yahoo.com; haidermz@econ.ku.ac.bd
INTRODUCTION
The firms that are using various types of inputs through a sequential process for producing products are defined as manufacturing firms in this study. Bakery, brick, iron & steel, coconut oil, printing press, rice milling, tiles, wood processing and wood furniture are the main manufacturing firms operating in the southwest region of Bangladesh. The Khulna, Jessore, Satkhira and Bagerhat districts are defined as the south-west region of Bangladesh. Favorable investment climate is inevitable for a better performance of manufacturing firms. This study considers physical infrastructure, input market, output market, financial services and utility services to address investment climate of the south-west region of Bangladesh.
LITERATURE REVIEW
World Bank (2005) defines the investment climate as the set of location specific factors
Investment Climate and Competitive Performance of Manufacturing Firms... 67
shaping the opportunities and incentives for firms to invest productively, create jobs, and expand. Investment climate is the institutional, policy, regulatory, and behavioral environment in which firms operate (Dollar et al., 2003). A better investment climate promotes growth and poverty reduction (Stern, 2002). It provides opportunities for people to improve their economic conditions (World Bank, 2005). An improvement in investment climate also delivers broad benefits across society, such as, better macroeconomic stability and less corruption (World Bank, 2005). A favorable investment climate can ensure higher productivity of manufacturing firms. It also determines firms decisions. Investment climate affects industrial growth and development (World Bank, 2004). Firms in the best investment climate can be twice as productive as those in weaker environments (Dollar et al., 2003). Improvements in the investment climate lead to higher productivity, factor returns, and growth (Dollar et al., 2003; and World Bank, 2004). Several literatures consider productivity for analyzing performance of manufacturing firms (Fernandes, 2008; and Mahadevan and Kim, 2003). Some other literatures highlight on technology level and R&D expenditure as influential factors on productivity performance of manufacturing firms (Tsang et al., 2008; and Wakelin, 2001). However, Bangladeshs manufacturing sector related studies are scarce in the literatures. Moreover, an empirical study for linking firm performance and investment climate is hardly available in the literature. Therefore, this study places special focus on establishing a relationship between competitive performance of firms and investment climate.
METHODOLOGY
This study considers five measures to address performance of manufacturing firms: (i) average sales growth, (ii) average employment growth, (iii) capacity utilization rate, (iv) target fulfillment rate and (v) operating profit to sales ratio. The influence of investment climate on firm performance is evaluated using the following regression analysis (Eq. 1). ...(1) Yi = 0i + jiXj + ui where, Y refers to performance indicating dependent measure. X refers to elements of investment climate. i = Performance measures: (i) (v). j = Investment climate indicators. This study has used both secondary and primary data. A stratified random
sampling technique is used in selecting sample manufacturing firms. Location and product are the main strata of this study. The sample size of the study is 335. A formal questionnaire is used to collect firm-level primary data from the sample firms on various indicators for time period 2005-2008.
PHYSICAL INFRASTRUCTURE AND FIRM PERFORMANCE

The existence and conditions of infrastructures like roads, ports, and bridges are the main concern for the investors in taking investment decisions in any region. The simple linear regression analysis results between use of infrastructure facilities and firm performance indicate that the performances of the manufacturing firms depend on use of infrastructural facilities. The analysis result demonstrates that the frequently infrastructure user firms have the lowest average score in sales growth but the highest score in operating profit to sales ratio. The scenario is the reverse for the never infrastructure user firms. Such a trend clearly demonstrates the necessity of improving infrastructures for the hope of improving the operating profit to sales ratio the ultimate objective of a firm.
INPUT MARKET AND FIRM PERFORMANCE

The physical distance between raw material source and firm premise significantly affects the firm performance. The analysis results indicate that, in spite of having very poor sales growth, operating profit to sales ratio is higher for the firms collecting raw materials from distant places. Such result provides the insight that an improvement of physical infrastructure can accelerate the profit that requires collection of needed quality raw materials from distant places. The simple linear regression results indicate that as the percentage of raw material sourcing from within the region increases, the performance of the firms decreases and the relationship is statistically significant. Such a result signals the necessity to diversify the raw material sourcing pattern.
OUTPUT MARKET AND FIRM PERFORMANCE

The product market of the surveyed firms is narrow from a geographical viewpoint. The firms that are selling their products to the south and west part of Padma and Meghna rivers have negative relationships with changes in investment and operating profit to sales ratio. The firms that sell product to the north-west region of Bangladesh have positive relationships with changes in investment,
employment growth rate and operating profit to sales ratio. The firms that sell products abroad have a positive relationship with operating profit to sales ratio. Such findings support to cross the regional and national boundary by the manufacturing firms for earning profit and for performing better. The simple linear regression result finds a negative relationship between the number of products manufactured and the operating profit to sales ratio. The results advocate for product specialization instead of diversification.
FINANCIAL SERVICES AND FIRM PERFORMANCE

The manufacturing firms of the study area sometimes have to wait for a longer time to get the permission of loan. Fifteen percent of the surveyed manufacturing firms have to wait for 1-20 days, 7% firms have to wait for 21-40 days, 3% firms have to wait for 41-60 days, and 3% firms have to wait for more than 80 days. The primary data and field observation indicate that, many firms fail to meet the terms and conditions of the taken loans, and manage the arisen situation informally through giving bribe and pursuing an informal path.
UTILITY SERVICES AND FIRM PERFORMANCE

About three-fourth of the surveyed firms face 2 to 4 hours power failure per day. The scenario is a big threat for the electricity dependent firms. Due to unavailability and irregular electricity supply, some firms are adjusting the manufacturing process by using alternate energy source like wood, coal etc. Therefore, it is necessary to address the electricity generation issue on an urgent basis. The demand-supply scenario of electricity in the region indicates that a big push from the supply side is needed to overcome the adverse situation.
MULTIPLE REGRESSION RESULTS

This study considers a total of 18 explanatory measures (X1-X18) to represent input market, product market, technology level, infrastructure use, utility services, corruption and miscellaneous issues that influence the operating profit to sales ratio (Y1) of a firm. The backward multiple regression results exclude all the indicators but X3, X4, X7, and X11 from the final significant model (Table 1). The analysis clearly demonstrates that product specialization, regularity in the production process, use of physical infrastructures and anti-corruption movement contribute to improve performance of manufacturing firms.
Table 1: Multiple Regressing Results for Operating Profit to Sales Ratio

Measures Indicators Std. Error .065 .004 .004 .010 .010 Standardized t value p value Coefficients () 3.257 0.001 0.209 -3.189 0.002 0.255 0.293 0.114 3.732 -4.696 1.752 0.000 0.000 0.081
(Constant) Product category X3 Full swing Output market X4 operation (Months per year) Infrastructure Mongla sea port X7 Visit of tax Corruption X11 personnel The model: Y6 = 0 + 3X3 + 4X4 + 7X7 + 11X11;
R2 = 0.181
Source: Authors calculation based on surveyed data.
SUMMARY
This study tries to find out the relationship between firm performance and investment climate. The physical infrastructure, input market, output market, financial services and utility services characterize the investment climate of a region. The study finds a statistically significant positive relationship between the use of infrastructure and performance of manufacturing firms. For example, the operating profit to sales ratio of the firms increases for an increase in the frequency of using Mongla sea port and other infrastructures. The scenario is the reverse for never infrastructure user firms. Therefore, improvement of Mongla sea port and other infrastructures are important for the manufacturing firms. The analysis results support to cross the regional and national boundary in selling products and collecting raw materials for performing better by the manufacturing firms. The results also advocate for product specialization instead of diversification. The firms often fail to meet the terms and conditions of the taken loans, and manage the arisen situation informally through giving bribe and pursuing an informal path. Power failure is a common problem faced by the manufacturing firms of the region. A big push from the supply side is needed to overcome the adverse situation. The multiple regression result indicates that product specialization, regularity in the production process, frequent use of physical infrastructures and anticorruption movement mostly influences the operating profit to sales ratio the ultimate objective of a firm.
ACKNOWLEDGMENT
This article is a part of the study conducted under the Small Grants Program, implemented by ERG and BMB Mott MacDonald and supported by the Bangladesh Investment Climate Fund (BICF) which is managed by IFC, in partnership with the U.K. Department for International Development and the European Union.
REFERENCES
Dollar, D., Hallward-Driemeier, M., and Mengistae, T. 2003. Investment Climate and Firm Performance in Developing Economies. World Bank Publication, Washington D.C. Fernandes, A.M. 2008. Firm Productivity in Bangladesh Manufacturing Industries. World Development, 36(10): 1725-1744. Mahadevan, R. and Kim, S. 2003. Is Output Growth of Korean Manufacturing Firms Productivity-Driven?. Journal of Asian Economics, 14(4): 669-678. Stern, N. 2002. The Investment Climate, Governance, and Inclusion in Bangladesh. Public Lecture Organized by Bangladesh Economic Association, Dhaka. Tsang, E.W.K., Yip, P.S.L., and Toh, M.H. 2008. The Impact of R&D on Value Added for Domestic and Foreign Firms in a Newly Industrialized Economy. International Business Review, 17(4): 423-441. Wakelin, K. 2001. Productivity Growth and R&D Expenditure in UK Manufacturing Firms. Research Policy, 30(7): 1079-1070. World Bank 2004. Investment Climate Assessment: India: Investment Climate and Manufacturing Industry. World Bank Publication, Washington D.C. World Bank 2005. World Development Report - A Better Investment Climate for Everyone. World Bank and Oxford University Press, New York.
The Small Poised to Become a Mammoth

Akinchan Buddhodev Sinha
ICFAI University, Meghalaya
E-mail: akinchanbsinha@gmail.com
SCENARIO PREVAILING
SSI sector in India plays a significant role in mass employment generation just next to agricultural sector. Food products industry has captured top slot in generating employment providing employment to 4.82 lakh persons (13.1%). The next two industries which played a pivotal role in employment creation are, Nonmetallic mineral products and Metal products. They employed 4.46 lakh persons (12.2%) and 3.73 lakh persons (10.2%) respectively. In Chemicals & chemical products, Machinery parts except Electrical parts, Wood products, Basic Metal Industries, Paper products & printing, Hoisery & Garments, Repair services and Rubber & Plastic products, the contribution ranged from 9% to 5%, the total contribution by these eight industry groups being 49%. It contributes nearly 40% of the gross manufacture to the Indian economy. Being one of the largest producing sector, its contribute significantly towards exports. Almost 45%-50% of Indian exports is being contributed by SSI sector. Besides direct exports, it is estimated that small scale industries contribute around 15% to exports indirectly. They are also in the form of export orders from large units of production of parts and components for use for finished exportable goods.
The Small Poised to Become a Mammoth 73
ENCOURAGEMENT TO FDI & ITS IMPACT ON SSI SECTOR

Governments decision to liberalize FDI by shifting the approval regime from the case-by-case approach as normally used by FIPB to the automatic route, and by perhaps even increasing the industry-specific caps on foreign equity ownership, could go a long way in promoting Indias prospects in the race to secure global capital for its economy. By welcoming FDI in the mentioned sector, it has assisted in bringing new expertise, international discipline in the deployment of funds and strategic inputs, from which the entire market segments will obviously derive immense benefits. Now, with the governments decision in the year 2007, to get away with the direct investment (FDI) cap of 24% for all companies in the smallscale industry sector, SSI units will be permitted to raise foreign equity in accordance with caps governing the sectors in which they operate.
FOREX EARNINGS & OTHER IMPORTANT ASPECTS

Our discussion in this segment will be restricted to Food Processing Industries, Wood & wood products, Paper products, Chemical products, Glass & Ceramics and Diamond & Gold Ornaments.
Food Processing Industries

In 2009, the estimates for FDI into the sector stood at USD 325.93 million which is expected to touch USD 25.07 billion by 2015. The major reasons that can be cited for increasing influx of FDI in the sector are as follows: 1. 100% FDI is allowed in almost all the food processing units with the exception of alcohol. 2. Enactment of the Food Safety and Standards Bill 2005 has introduced a governing body for the food processing sector. 3. The above mentioned legislation has also allowed a 100 percent tax deduction on profits for five years and 25 percent for the next five years especially to the up-coming agro processing industries.
Wood & Wood Products

Foreign Direct Investments (FDI) have been permitted in timber products in India in order to address the growing demand for furniture and other timber products. Important initiatives aiming at encouraging the flow of FDI in the industry has been already taken. The quantum of inflow of foreign direct investment in the
Indian timber products during the period from August 1991 to March 2004 was Rs 163.21 million. The percentage of foreign direct investment during the aforesaid period was 0.01%. Some of the key factors that have fuelled the growth of FDI into the industry are enumerated below: 1. Procurement of high quality timber wood seeds. 2. Procurement of machineries and tools, to compliment modern plantation method. 3. Cheap labour. 4. Large area still untapped for cultivation of timber wood. 5. Abundance of natural resources. 6. Presence of tropical climate. 7. Large the domestic market.
Paper Products
According to the estimates of Central Paper & Pulp Research Institute of India, FDI in this sector will enhance substantially in the coming years. The FDI inflows into the Indian Paper and Pulp industry has increased in the recent years. In one of the green field projects where Central Paper & Pulp Research Institute (CPPRI) was solely involved in developing its feasibility report, which finally got accepted by a Finland based firm is expected to generate foreign capital to the tune of Rs1000 crores. The project will come up either at Maharashtra or Gujarat. The factors triggering the surge in FDI into the mentioned industry are as follows: 1. High demand for newsprint. 2. Shortage of high quality newsprint. 3. Low production capacity of high quality newsprint in India. 4. Low labour cost. 5. Per capita of consumption rate to go up to 10 kg by the end of 2010. 6. Huge scope for waste paper recovery and recycling industry. 7. Huge scope for increment in the plantation area. 8. Current deficiency stands at 2 million tonnes a year. Thus, a huge gap needs to be bridged up.
Chemical Products
FDI inflows to chemicals industry in India have registered significant growth in the last few years. The total amount of FDI inflows to the chemicals industry in India stood at US$1,316 million between 1991 and 2002. Consequently, the chemical industry in India was worth more than US$ 40 billion in 2004-05. The increased flow of foreign direct investment in the chemicals industry in India has assisted in the development, expansion and growth of the industry. This in turn, has resulted in improvement of the quality of the products, manufactured by various firms related to this industry.
Glass & Ceramics

In the year 2003, the total number of FDI approvals was 144, out of which 41 were technical and 103 were financial. Total investment was Rs22820.50 million, and the contribution to the total FDI was 0.80% pertaining to the glass industry. In the year 2004, the total number of FDI approvals was 78, out of which 28 were technical and 50 were financial. Total investment was Rs13416.76 million, and the contribution to the total FDI was 0.74% pertaining to the glass industry. The FDI inflows to glass industry in India has played a crucial role in ushering modern techniques of manufacturing. FDI inflows to Ceramics of Rs250 crore have been given a green signal through a Joint Venture concern between UAE-based RAK Ceramics and the ceramic industry in India. This joint venture was established with the aim to activate import and distribution of ceramic floor and wall tiles as well as sanitary wares and their related accessories. Recently, RAK Ceramics has announced its plans for expansion in the Indian market in order to make its Indian JV unit one of the biggest contributor of ceramic products. RAK has invested approximately USD 65 million on its ceramics units in India and eager to touch USD 15 billion per annum within the next three years.
Diamond & Gold Ornaments

An unorganized industry, can be considered to be a part of small scale sector is witnessing high inflow of FDI. Due to increasing FDI in this industry, it is gradually getting organized. A number of foreign players have forayed into Indian jewellery market in the past few years. In order to provide impetus to the growth of this industry, government have taken the following initiatives:
1. The Central Government has introduced a New Annual Supplement to Foreign Trade Policy (2004-09). 2. The service tax on exports has been removed. 3. Re-import of Diamonds and Gold exported is allowed. 4. The duty free import of tools, equipments, and machineries, used in the manufacturing of jewelry are allowed. 5. The duty free export of rhodium plated silver jewelry is increased to 3 %. 6. In case of metals such as gold, platinum, it would be 1 % and for other metals it would be 2 % of the value of exports in the previous financial year. 7. The Government has made it compulsory to hallmark gold. 8. The import of polished diamonds has been made duty free. 9. The Central Government has declared SEZ exclusively in Kolkata, Goregaon, Dhulia and Hyderabad for the purpose of jewelry production and export.
ISSUES NEEDS TO BE ADDRESSED

Our small scale industries is at a stage where we want to consolidate our strengths in manufacturing and develop India as a outsourcing base. This is supported by the fact that the TNCs have large internal (inter-firm) markets, access to which is available only to affiliates. They also control large markets in unrelated parties, having established brand names and distribution channels spread over many national locations. Therefore, they can influence granting of trade privileges in their home (or in third) markets. But, since overseas investors are touching the Indian shores, due to several factors mainly, lack of opportunities for growth at their home countries, lack of skilled labour and high cost of production, it becomes imperative that our government both at central and state level create adequate opportunities to address the mentioned issues. Moreover, there is a lesson to learn from opening up of the pharmaceutical industry, when it comes to FDI in small scale industry. Governments decision to permit 100% foreign direct investment in the drugs and pharmaceuticals sector through automatic route proved to be a big mistake, in the sense that there were few companies that wished to establish 100% subsidiaries in India with no production plans. Consequently, in due course of time, these companies engaged themselves only in trading of the pharmaceutical products. This is an alarming trend and the same should not be the case for small scale industries. Thus, the process of opening up of SSI sector for FDI should be gradual.
Exhibit 1: Growth of SSI Exports

Year Total Exports (Rs. Crores) 716 660 1608 5142 7809 12567 44040 53688 69547 82674 106353 118817 126286.00 141603.53 159561.00 202509.7 207745.56 252789.97 Exports From SSI Sector (Rs. Crores) Negligible Negligible 155 766 2071 3644 13883 17785 25307 29068 36470 39249 44442.18 48979.23 54200.47 69796.5 71243.99 86012.52 Percentage Share 9.6 14.9 26.5 29.0 31.5 33.1 36.4 35.1 34.2 33.4 35.19 34.59 33.97 34.47 34.29 34.03
1951-52 1961-62 1971-72 1976-77 1981-82 1986-87 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03
Exhibit 2: Target & Achievement Status of Production in SSIs

Year 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 (P) Target Achievement 3.0 5.0 7.0 9.1 9.1 9.1 * * * * 3.1 5.6 7.1 10.1 11.4 11.3 8.43 7.7 8.16 8.90
REFERENCES
Challenges in Vitalization & Internationalization of SMEs. Website:http://india.smetoolkit.org/india/en/content/en/42531/ Challenges in-Vitalization-Internationalization-of-SMEs Retrieved on 28th of October, 2010. FDI Inflows to Food Processing Industries Website: http://business.mapsofindia.com/fdi-india/sectors/foodprocessing-industries.html Retrieved on 1st of November, 2010. FDI inflows to timber products Website: http://business.mapsofindia.com/fdi-india/sectors/timberproducts.html Retrieved on 1st of November, 2010. FDI Inflows to Paper & Pulp Website: http://business.mapsofindia.com/fdi-india/sectors/paperpulp.html Retrieved on 1st of November, 2010. FDI in SSI: Financial Express, Posted: Friday, April 4th ,2008 Website: http://www.financialexpress.com/news/FDI-in-SSI/292197 Retrieved on 28th of October, 2010. FDI Inflows to Chemicals. Website: http://business.mapsofindia.com/fdi-india/sectors/chemicals.html Retrieved on 1st of November, 2010.
FDI Inflows to Glass Website: http://business.mapsofindia.com/fdi-india/sectors/glass.html Retrieved on 1st of November, 2010. FDI Inflow to Diamond Gold Ornaments Website: http://business.mapsofindia.com/fdi-india/sectors/diamond-goldornaments.html Retrieved on 1st of November, 2010. Government to remove 24 percent FDI cap on SSI units. Website: http://www.ibef.org/ artdisplay.aspx?tdy=1&cat_id=60&art_id=17323 Retrieved on 28th of October, 2010. Growth of SSI Exports Website: http://www.dcmsme.gov.in/ssiindia/statistics/export_gr.htm Retrieved on 29th of October, 2010. Items reserved for Small Industries in India Website:http://www.iloveindia.com/finance/doing-business-in-india/ small-scale-industries.html. Injection Moulding Thermo Plastic Products Website: http://exim.indiamart.com/ssi-policies/reserved-injectionmoulding.html Retrieved on 1st of November, 2010. Performance of Small Scale Industries Website: http://exim.indiamart.com/ssi-corner/performance.html Retrieved on 28th of October, 2010. Prepare a competitive base before throwing open the floodgates Website: http://www.financialexpress.com/printer/news/59251/ Retrieved on 28th of October, 2010. Small-scale industries: Preparing for WTO challenges By S.D.Naik. Published in Business Line, dated, July 12,2002 Website: http://www.thehindubusinessline.com/2002/07/12/stories/ 2002071200110800.htm Retrieved on 1st of November, 2010.
New Horizons in Credit Audit & Management in the Indian Banking Sector An Adoptive Model at J&K Bank Ltd
Deepak Tandon and Neelam Tandon1
LBSIM, Lal Bahadur Shastri Institute of Management, New Delhi 1 JIMS, Jagannath International Management School
E-mail: deepaktandon0@gmail.com; deepaktandon@lbsim@ac.in; neelamtandon2007@gmail.com
INTRODUCTION
With the advent of globalization and entrance of liberalization in Indian Territory, the economy has been growing at a very fast pace posing higher growth returns continuously. This has been possible due to the efficient services(loans and advances, short term credits and overdraft facilities) provided by the Indian banking industry to all corporate, entrepreneurs and service houses invariably over all these years.
CREDIT AUDIT
Credit Audit speaks about the compliances with respect to the sanctioned limits and procedures.. Credit assessment forms an integral role in the banking sector. Regular inspections always add as an aid to the credit management system. Notes
New Horizons in Credit Audit & Management in the Indian Banking Sector 81
of the accounts and other requirements in the balance sheet can qualify the maximum credit exposure related to the value of the collateral credit.
RBI Guidelins and Credit Audit

The guidelines of the RBI on credit risk can be broken into various parts , the first one being the loan review mechanism/credit audit; credit audit examines the compliance with exact sanction and the post sanction process and procedures laid down by the bank from time to time. The objectives of the credit audit are that it leads to improvement ion the quality of the credit portfolio of the bank. Credit audit helps to review the sanctioned process and the compiling status of large loans. It also ensures the banks feedback on the regulatory compliance laid down by the RBI.
Scope and Coverage

The focus of the credit audit is much more broad starting form the account level to look at the overall portfolio and the credit processes being followed. The important areas are: 1. Portfolio review: a crucial function of the credit audit is to examine the quality of credit and investment being done by the bank: (Quasi-credit) portfolio and suggest measures for improvement including reduction of concentration in certain sectors to levels indicated in the reports or as laid down by the RBI. 2. Loan review: it means the review of the sanction process and the status of post-sanction processes/procedures which are not just restricted only to the large accounts but to the overall portfolio. Review of all the fresh proposals and proposals for renewal of limits within 3-6 months from the date of sanction. Review of all the existing accounts with sanction limits equal to or above a cut-off depending upon the size of the activity. The not so large accounts maybe randomly selected (say 5-10%) proposals from the rest of the portfolio. Also the review of the accounts of sister concerns/group/associate concerns of the mentioned accounts, even if the limit is less than the cut-off. 3. Points of action: the CAD should verify the compliance of banks laid down policies and the regulatory compliance with regard to sanction, also examining the adequacy of documentation and conducting the credit risk assessment.
Aim of the Credit Audit in the Banks

(a) Improvement in the quality of credit portfolio (b) Review sanction process and compliance status of large loans
(c) Feedback on regulatory compliance (d) Independent review of Credit Risk Assessment (e) Pick-up early warning signals and suggest remedial measures (f) Recommend corrective action to improve credit quality, credit administration and credit skills of staff, etc.
FREQUENCY OF AUDIT
The frequency of a credit audit vary usually depending upon the magnitude of the risk (say for the high risk accounts 3 months and for the average or low risk accounts, 6 months 1 year).
PROCEDURE
A credit audit is conducted o a site that is at the branch which is appraised the advance and here the main operating credit limits are made available. The report on conduct of accounts of allocated accounts is then called from the corresponding advances. The credit auditors may/may not be required to visit borrowers factory/office premises.
PREREQUISITES FOR A SPECIALIST IN CREDIT AUDITS

Credit audit is a very specialized form of audit. Officers need to be specifically trained so as to ensure they have the required skills to lead and carry out a proper audit such that the credit risks, weaknesses in the credit process and portfolio quality are properly identified and highlighted. In particular, the need to provide management with a fair and balance assessment of the Credit Risk Management .Process and Portfolio Quality must be emphasized so that corrective action could be carried out in a timely manner, and in turn protect the bank against unforeseen Credit Risks. He should have the following prerequisites: He knows the role of Credit Audit in the Credit Risk Management Process He understands the Principal Objectives of Credit Audit He reviews: Two main areas of Assessmentnamely the Credit Risk Management Process and Portfolio Quality He nsures that Proper Planning and Preparation are carried out He knows how to plan effectively for the Individual Reviews He must be aware of the Procedures for On-site Reviews
He understands the Importance of Work Papers and the need to ensure a required standard He ensures a Fair and Balanced assessment of the Credit Risk Management Process and in Assigning a Rating He ensures a Fair and Balanced assessment of the Portfolio Quality and in assigning a Rating He knows how to handle a Closing Meeting He understands the Salient items that need to be addressed in the Final Report
WHO IS BENEFITTED BY CREDIT AUDITS

The Managers who are (a) Credit -related function, auditors, (b) Credit and financial analysts, portfolio managers, credit officers, corporate bankers, commercial Bankers, risk managers and analysts are the most benefitted.
KNOWLEDGE OF A BANKS BUSINESS IS IMPORTANT FOR A CREDIT AUDITOR

The auditor needs to obtain a level of knowledge of bank business that will enable him to identify the events, transactions and practices that may have significant effect on the financial information.The knowledge of a banks business can be obtained from: Banks annual report to shareholders Internal financial management reports for current and previous periods including budget if any Previous year audit working papers Discussion with and Letters seeking Information from bank branch Manager Bank policy and procedures manual.
THE PRE-COMMENCEMENT WORK FOR A BANK AUDIT

Beginning of audit cycle is from receipt of appointment letter Check the compliance u/s. 226 (3) with regard to qualifications and disqualifications of auditors (concurrent ,Internal, Revenue, Stock, System, Credit Risk or other Special Audits conducted in same previous year)
Decision for Acceptance or Rejection of Assignment ( Cost Benefit analysis, other considerations e.g. time available, expertise available) Communication with Previous Auditor by Registered AD (clause 8 of First Schedule to the Chartered Accountants Act, 1949 Finding Out Expected date of submission of reports Finding out Scope of work Issue of Engagement Letter under AAS 26. Copy of all circulars of RBI applicable to branch have to be obtained and kept ready for reference Attending bank branch audit seminars could enhance the auditors knowledge on bank audits Banking terminology and schemes should be well understood A reading of Guidance note on audit of banks by ICAI would provide valuable guidance. It should be ensured that minimum fees is set as per RBI circular dated 17th March 2004

1. To study the corporate structure of a bank and institute audit committee of the board. 2. To oversee banks credit appraisal and credit audit system 3. To review, with the management significant findings and the follow up thereon 4. To look into the reasons for critical key concerns, analysis of the financial conditions and the results of the corporate client. 5. To follow up on the key areas of audit ratings, statutory compliances, income leakages of the corporate clients.
Keeping in view of the sacrosanctity of the credit audit compliances with respect to the pre and post audit sanctions, a model credit audit report has been devised to review the running accounts of SME (small and medium enterprises sector). In depth analysis of the security taken by the bank and documentation with deficiency report, terms and condition compliances o the head office have been done in consultation with J&K Bank Limited. Check list also have been prepared for all credit products( Annexure). Analysis of the stock statement, book debts
and other credit related documentation has been analyzed. The authors have suggested a caselet to analyse the credit audit at a branch level.SME sector of the corporate clients of J&K Bank at one at metro- Azadpur Delhi has been taken into study for credit audits which are appended below as annexure.
CONCLUSIONS AND RECOMMENDATIONS

1. Credit audit scans through the account and gives a clear picture on the asset classification, deployment of the funds advanced; it is a summary sheet of the total profile of the corporate. It also emphasizes on the valuation of the goods age wise and also outstanding more than 90 days with respect to sales to enable the branch to adopt immediate remedial measures with respect to DP calculation and grant of SOD to the client and see the aberrations with respect to sanctions. 2. As the SME sector can encounter the problem of business continuity, if the organization do not implement the concept of business risks management, in the present days every business should develop a risk management culture in the organization and implement risk management programs. Credit audit takes care of such perception. 3. All the aspects of inspection, proposal for sanction, documentation, QIS reports can be consolidated in a credit audit report. Credit audit report can serve as a ready reckoned to introspect in the corporate a/c of the branch and classify the same under CAMELs model. 4. Credit audit can be enlarged and adopted consistently at the foreign banks, PSU banks, new generation private sector banks and need not be to be restricted to private sector banks
SUGGESTIONS FOR CREDIT AUDIT IN LIGHT OF POST BASLE II IMPLEMENTATION AND ADVENT OF BASLE III
The Banks have to stablish a separate Risk Management Division which takes a holistic approach to managing market risks, credit risk and operational risks. . The banks have to develop in-house pool of skilled manpower to avoid and manage risk , which will help in developing and implementing various credit risk rating models. Some of the Indian Banks have already started brooding this area of concern by developing a Preventive Monitoring System (PMS) model inhouse for monitoring the health of a loan account on quarterly basis. The Banks have to also operationalize Model for Credit Risk Rating of Banks developed in-house for calculating theoverall exposure. Besides, a separate Credit Audit and
Review Division (CARD) which is entrusted the task of credit audit of loan accounts with a view to making risk assessment of loan and thereby eventually link it to pricing of loans. Moreover,with the establishment of the Credit Information Bureau of India Ltd (CIBIL) in respect to Retail banking and SME sector generating credit reports on existing as well as potential borrowers woul become easier, which in turn, would facilitate effective risk rating of borrowers by integrating Credit Audit vis a vis the robust Risk Management Poilcy / Manual of the Bank.
RFERENCES AND BIBLIOGRAPHY

Greuning, Bratanovie, Managing Banking Risk- A Framework For Assessing Corporate Governance and Financial Risk,(2008), Jaico Publication House, New Delhi. Gupta Kamal. Contemporary Auditing, (2005) Tata McGraw Hill New Delhi. Gupta Kamal, Fundamentals of Auditing , (2004), Tata McGraw Hill New Delhi. Kumar Ravinder Fundamentals of Practical Auditing, (2003), Prentice Hall New Delhi. Saunders, Cornett, Financial Institutions Management Risk Management Approach, (2006), Tata McGraw Hill, Irwin New York. Sekar, G, Handbook on Auditing (2008) Law Book Publishers, Chennai. Weber Ron, EDP Auditing, (2001) Tata McGraw Hill New Delhi.
WEBIOLOGY
1. 2. 3. 4. 5. 6. www.rbi.org.in www.icai.org.in www.icsi.edu www.geocities.com/kstability/inbank/risk/credit-audit.htm www.ihipo.com/.../DBS+-+Credit Audit+-+Models=2959 (DBS Bank) creditauditgroup.com/
Islamic Finance: An Indian Prospective

Tripti Sahu
Matoshri Prathishthan Group of Institutes, School of Management, Nanded, Maharashtra
E-mail: sahutripti@yahoo.com
Commercial banking has become an essential sector of modern economy. Whatever be the size of commercial banking activities no country can do completely without it. Muslims claims nearly one fifth population of the globe and scattered in almost all countries, India itself is the home of over 100 million Muslims which amounts similar to that of all the middle East countries put together, is deprived of such a wonderful facility provided by commercial banks just because of their common concern of avoiding riba (interest) which is a very integral part of commercial banking. According to Islam when money is lent, if the lender demands more than his principal to be returned, the excess amount so demanded is riba. Islam strictly prohibits demanding and/or receiving riba, paying riba, witnessing or writing such transaction. Islam also preaches its followers to earn only halal income. Now, what is halal income? The halal income denotes the income, which comes from avoiding the sources like alcohol, tobacco, porn related fields, pork and interest from exploitation. The incomes from cheating, fraudulent and gambling are also haram (invalid). Which is opposing to commercial banking was deposits are being used for various investments that may not be in compliance with Islamic preaching.
Islamic banking products and services are governed by the Shariah rules that prohibit any form of interest. The principles of Shariah in the context of banking can be broadly grouped as under: 1. Cost plus mark up on traded goods whereby the bank purchases goods from a third party and then sells them to a customer at a marked up cost. 2. Profit sharing in which the bank shares the profits of the projects it finances. 3. Rents on purchased equipment or leasing (ijara in Arabic) is mostly used for hire purchase activities. There are several methods of Islamic financing. However, certain methods are more commonly encountered than others. These are set out below: Murabaha (Cost Plus Financing): The Murabaha is a method of asset acquisition finance. It involves a contract between the bank and its client for the sale of goods at a price that includes an agreed profit margin, either a percentage of the purchase price or a lump sum. The bank will purchase the goods as requested by its client and will sell them to the client with a mark-up. Mudaraba (Profit Sharing): The Mudaraba is a profit sharing contract, with one party providing 100 per cent of the capital and the other party (the mudarib) providing its expertise to invest the capital, manage the investment project and, if appropriate, provide labor. Profits generated are distributed according to a predetermined ratio, but like the capital itself, cannot be guaranteed. Losses accrued are therefore borne by the provider of capital, who has no control over the management of the project. Musharaka (Partnership Financing): The Musharaka involves a partnership between two parties who both provide capital towards the financing of new or established projects. Both parties share the profits on a pre-agreed ratio, allowing managerial skills to be remunerated, with losses being shared on the basis of equity participation. One or both parties can undertake management of the project. As both parties take on project risk, it is relatively rare for banks to participate in Musharaka transactions. Ijara (Leasing): The Ijara is a contract where the bank buys and leases out equipment required by the client for a rental fee. The duration of the lease and rental fees are agreed in advance. Ownership of the equipment remains with the lessor bank, which will seek to recover the capital cost of the equipment plus a profit margin out of the rentals payable.
Islamic Finance 89
Istisnaa (Commissioned Manufacturer): As defined by the Islamic Development Bank, Istisnaa is a contract whereby a party undertakes to produce a specific thing that is possible to be made according to certain agreed specifications at a determined price and for a fixed date of delivery. Accordingly, the technique is particularly useful in providing an Islamic element in the construction phase of a project, as it is akin to a fixed price turnkey contract. As the Istisnaa contract is one of procurement and sale of an asset, it also lends itself to non-recourse financing. In an Istisnaa transaction, a financier may undertake to manufacture an asset and sell it on receipt of monetary installments. As banks do not normally carry out manufacturing, a parallel contract structure will typically be used. The ultimate buyer of the asset will commission it from the bank, which will institute a parallel contract under which the bank commissions the asset from the manufacturer. The bank charges the buyer the price it pays the manufacturer plus a reasonable profit. The bank therefore takes the risk of manufacture of the asset. Islamic Banking or Shariah Finance although a just 15-20 year old legacy, has now caught up in the past 3-4 years, and is growing at a rapid pace of 10-15% per annum globally. Over and above Islamic geographies like Indonesia, Malaysia and Middle East countries some Eastern and emerging economies have also started taking steps to facilitate Islamic investment.Due to estimated massive revenue in Islamic financial sector, some foreign banks including Citibank, Standard Chartered Bank and HBSC have opened Islamic windows in some of the western countries like US and Europe and several West Asian countries .China, with 80m Muslims, recently awarded its first license for Islamic banking to Bank of Ningxia, a move that could pave the way for sharia-compliant financing in the rest of the country. But as far as Islamic Banking in India is concern, it is still at the nascent stage With only few non-banking financial corporates including Al Ameen Islamic Financial & Investment Corp. (India) Ltd, Al-Falah Investment Ltd, Al-Barr Finance House Limited (India), Bank Muscat International (SOAG) and Seyad Shariat Finance (according to Academy for international Modern studies, Canada)working successfully. These banks work on no-profit-no-loss basis and provide a wide range of loans, like housing, consumer, personal, educational, automobile and several other loans as per banks individual terms and conditions. They usually invest in government securities, small savings schemes or units of mutual funds for earning profits. Although India is planning to overhaul regulation of its financial system to attract investments from the Gulf and to encourage its largely unbanked
Muslim population to save money in a way compliant with their religion. But, still no banks as per Reserve Bank of Indias norms have been settled in India. The RBI in this regard had set up a committee headed by Anand Sinha, chief general Manager in-charge, department of banking operations & development in 2005 to seek out the scope of Islamic banks in India but the committee in its presented report had denied any chance to open any banks in present existing condition of RBI. After the GOI announcement that Islamic banking is not feasible in India, several interactive sessions were held by ICIF, one of them was a National Workshop on Road Map on Islamic banking in Sept 2006, which was participated by prominent National and International Islamic experts and bankers. It passed resolution that Islamic Banking is relevant in the 21st century and India may implement the same by obtaining inputs from the global example in UK, Malaysia and Singapore. It chalked out a plan of action as well. When in March, 2007 the first Islamic Finance Conference hosted in Mumbai it was seen by the experts as the beginning of an era where Indian bankers also may commence their Islamic Finance business. Soon after that on September 1, 2007 a two-day international conference on Islamic Banking jointly organized by Institute of Objective Studies and Indo-Arab Economic Cooperation Forum was held in Delhi. On August 12, 2009 Kerala industries department made a history by approving a project report prepared by Ernst & Young for opening an Islamic Banking company in Kerela in which Kerala State Industrial Development Corporation, which is the designated agency for the formation of the bank, was proposed to have 11 per cent stake, it was proposed to be registered as a non-banking finance company in the beginning and later get transformed into a full-fledged Shariahcompliant bank. It was thought that the registration formalities will be completed in the same year itself and the NBFC will become operational in 2010. This bold initiative of Kerala Government was criticized on the ground that public money was being appropriated for favoring a particular religion in a secular country, as KSIDC has 11% stake in the multi-crore bank. The governments participation is clear instance of state favoring a particular religion. This is violative of Article 14 and 25 of Constitution which promises equality before law and right to freedom of religion. Besides, Islamic Bank is violative of Banking Regulation Act of 1949. A 7-judge bench of the SC had ordered that no public money should be used for promoting institutions of a particular religion, the PIL contended. And finally on January 9, 2010 a division bench of the Kerala High Court on Tuesday stayed all further moves by the state-owned Kerala State Industrial
Islamic Finance 91
Development Corporation (KSIDC) to set up an Islamic bank in the state. The division bench gave its orders on a petition filed by former central minister Subramanian Swamy, who maintained that the proposed bank was against Indias secular credentials and its banking norms. The court accepted the petition and issued notices to the Union government and KSIDC. Whatever the outcome is, one thing is for certain: India is equipped with the expertise and, more importantly, the spirit to persevere for the cause of Islamic financing. It is not that India does not have a mark on Islamic financial market; a lot of products that originate from India are marketed outside. For instance, the Tata Select Equities product by the Tata Group, which was launched in 1996, was marketed in the Gulf and saw good response. Although It is not publicly announce as an Islamic product. It was marketed as a socially responsible kind of product; even the community was unaware of this. In any country, the format nature & direction of development of Islamic financial Institutions is necessarily dictated by the legal framework in which they operate. Thus in a tightly regulated environment such as Indias MFIs face so many obstacles that few MFIs can be found which exhibit fairly good compliance with Shariah. Then, as the regulations are not framed with any Islamic stipulations in mind, it is also true that the extent of Shariah compliance by MFIs is equally a function of their ingenuity in devising structures which permit greater shariah compliance India could be a significant market for Islamic banking institutions due to its large Muslim population. However it is still subject to a favorable change in regulatory environment and increased awareness among Muslims and India. It is important to remember that the Islamic banking movement has been around for only 20 years, so it is unfair to compare its results with those of the conventional banks which have been established for almost 300 years. Islamic banks are still an ongoing phenomenon, still in the making. The challenge for Islamic banks is whether and how to go on surviving, then to succeed and so become an established, permanent phenomenon.
REFERENCES
AL-Omar Faud and Abdul-Haq Mohammed. 1996 Islamic Banking. Karanchi. Oxford University Press. Guest Post. 2010. Problems And Prospects of Islamic Banking In India Road Map Ahead (Guest article) [online] (Updated 30 March 2010). Available at:http://indianmuslims.in/problems-and-prospects-of-islamic-banking-inindia-%E2%80%93-road-map-ahead/.
India PRwire.2007. Mumbai welcomes the beginning of Islamic Finance business in India. (Headline article) [online](updated 21 March 2007). Available at http://www.indiaprwire.com/pressrelease/financial-services/ 200703212305.htm. Iqbal Zubair and Mirakhor Abbas, 1987.Islamic Banking. International monetary Fund. Washinton D.C. Islamic Finance Growth.2007.Islamic Finance will Accelerate Indias Economic Growth (Headline Article) [Online] (Updated 1 September 2007). Available at http://www.iosworld.org/Islamic_Finance_Growth.htm Islamic Finance News. 2010. Court stays Keralas Islamic banking plans (Headline Article) [Online] (Updated 9January2010) Available at: http:/ economictimes.indiatimes.com/news/politics/nation/Court-stays-KeralasIslamic-banking-plans/articleshow/5414884.cms. Islamic Finance News2009.Indias first Islamic bank to start in Kerala by 2010 (Headline Article) [Online] (Updated 10 September 2009) Available at http:/ /business.rediff.com/report/2009/sep/01/indias-first-islamic-bank-to-startin-kerala-by-2010.htm. News Track India. 2008. Islamic finance in India: a prospective (Headline Article) [Online] (Updated 28 April 2008) Available at http:// www.newstrackindia.com/newsdetails/3283. Subbulakshmi V. ed., 2004 Islamic Banking. India The ICFAI University Press. The Financial Times Limited 2010. India banking reforms focus on Islamic finance (Headline Article) [Online] (Updated 28 January 2010).
A Challenging Issues in Corporate Governance

Vinitaa Agrawal
Amity Business School, Amity University, Rajasthan
E-mail: vinitaa2000@gmail.com; vagrawal@jpr.amity.edu
INTRODUCTION
Corporate governance has become a glorified word in the modern context of the moves of globalization, liberalization and privatization. The consequent emphasis on market orientation calls for stronger leadership and speedier decisions to manage new opportunities and enormous risks and uncertainties. The pressing need for immediate success changed the value base of corporate managers favoring window dressing and hiding of facts in reporting and corruptive practices in their behavior as are witnessed in the form of corporate frauds, large scale misreporting, security scams and many more such corruptive practices. The consequences of such corruptive practices are to include gross ignorance of share holders value, increasing distrust among the public and irresponsible behavior of the managers without any conclusive fear of punishment. Hence, an awakening for fair functioning of corporates in the overall interests of their stake-holders has grown very fast these days. This awakening has in a way stressed the need for good corporate governance and its pertinent aspects like ethics, code of conduct, moral values, social responsibility as also necessary improvements in the legal framework-all converging towards accountability, transparency, equity and competitiveness.
94 Challenges of Globalization: Strategies for Competitivenesss
The word governance may be defined as the traditions and institutions that determine how authority is exercised. It includes: (a) the process by which authority is selected, held accountable, monitored and replaced; (b) the capacity of authority to manage responses efficiently and to formulate, implement and enforce sound policies and regulations; (c) the respect of stake holders and their interests; and (d) the state of institutions that govern social and economic interactions among them. The concept emphasizes that nothing illegal or unethical be done; while the principle of enlightened self interest be promoted, for it furthers governance. This way it covers the frontiers of ethical issues. Despite the fact that corporate governance is an urgent need in the present day context, still it remained in practice largely a fanciful move. This has forced the researcher to review the ultimate scenario basically required to convert it in to effective reality. The scenario covers the inevitable character of Business Ethics and Social Responsibility to be redefined in consonance with the Entrepreneurial Ethos which are the prime drivers of all types of activities.
ETHICS, VALUES AND SOCIAL RESPONSIBILITY

The word Ethics means custom or accepted behavior and when one behaves different from it, it is not accepted. The Greek word ethos means custom, habit or character and it refers particularly to the spirit of the culture or the disposition. The ethos of culture comes close to what the historians and philosophers call the values of a culture. The ethical process involves two steps. First, one must know what is right and what is wrong (DOS and DONTS) and second, one must have the personal discipline, integrity and motivation to do what they know is right. Values represent the standards or ideals about a person, object, event or activity what ought to be. Values denote a sense of right or wrong, good or bad, and other judgmental criteria based on our strong sense of what the ideal ought to be. Values shape attitudes, perceptions, interests and finally personality. Value is an acquired trust on certain philosophy, which activates human mind to determine the course of action a person is rendering in his life. Value only leads the mental course and is nothing to do directly with the performance of
A Challenging Issues in Corporate Governance 95
action. The business is not unethical, it is the individual action which influences the business activities and put the business in unethical situation. Values at the individual level include faith, self respect, competitiveness, creativity, devotion. Towards work level it includes tolerance, sacrifice, courtesy, good just, civil sense, honesty, humility, simplicity, reason, truth, forgiveness, fortitude, cleanliness, absence of egoism, detachment, poise, equanimity etc. values that can be imparted to the members of organization collectively include harmony, resourcefulness, discipline, dharma, equity, brotherhood, unity, peace, social conscience, cooperation, live and let live, concern, care, mutual trust, love, team spirit, efficiency, effectiveness, excellence, morale, productivity, responsibility, riskbearing, accountability, sharing, sacrifice, etc. Individuals acting in a professional capacity take on an additional burden of ethical responsibility. Professional associations have codes or ethics that prescribe required behavior within the context of a professional practice, such as medicine, law, accounting or engineering. These written codes provide rules of conduct and standards of behavior based on the principles of Professional Ethics, which include: Impartiality; objectivity. Openness; full disclosure. Confidentiality. Due diligence. Fidelity to professional responsibilities.
Avoiding potential or apparent conflict of interest. Broader principles of moral values (to do or to forebear) are to include: Do not deceive or cheat Do not resort to hoarding, black marketing, profiteering and Smuggling Do not destroy competition Ensure sincerity and accuracy Do not resort to unfair practices Work as a good citizen Refrain from secret kickbacks/corruption
Fair treatment to workers etc. Even when not written into a code, the principles of professional ethics are usually expected of people in business, employees, volunteers, elected representatives and so on.
ENTREPRENEURIAL ETHOS
For every type of corporate entity, commercial or otherwise, there are individual human beings responsible as entrepreneurs or as leaders, as the case may be. The philosophy of the working of these entities cannot be completely different from the attitudes and aspirations of the individuals working as promoters. In other words, the characteristic spirit of these promoter individuals as manifested in their attitudes and aspirations, known as their ethos, occupy a prime place in their actual functioning in terms of various types of decisions and different types of actions. Any effort contradictory to such ethos is bound to remain either as fancy or to meet with gross failure. In this context, while talking about the various efforts/measures for corporate governance, it will be in the fitness of the things to examine objectively as to what extent are the measures for corporate governance in consonance with the prominent ethos of the promoters, entrepreneurs and leaders. For, the matching between the two will go a long way in converting the pipedream into effective reality in action. By observing the behavior of the promoters, entrepreneurs, and leaders as individuals, the universal attitudes and aspirations in terms of their ethos may be broadly identified as under: Protection of Self Interest in terms of gain, popularity and recognition. Dominating Spirit. Quick and speedy progress. Superiority instinct. Major thrust for the ends irrespective of the required means. Adherence to the philosophy of I am OK. Zero sum game approach. Preference for ones fame or popularity. Ceaseless efforts to prefer gain to loss.
Micro-Oriented approach. But these entrepreneurial ethos/values many a time come in conflict when they are separated as micro and macro ones and ultimately weaken the effectiveness of the measures of corporate governance. Some reasons for the lack of high standards in corporate governance converge towards: Feudal Mindset. Lack of concern for the society.
Highly controlled environment. Systematic problems. Extremely short term perspective. Sick units and healthy promoters.
CHALLENGES
The aforementioned overview suggests us to accept a fact that unless the conflicts in the micro and macro entrepreneurial ethos are not lessened and the people at the helm of authority do not posses public integrity, the corporate governance in practice shall remain apparent only, far away from the situation of conclusive corporate governance. But no amount of system can work well when the surrounding atmosphere is not conducive to implement fair norms of behavior and mandatory provisions of legal framework. The surrounding environment is characterized by the following illustrative aspects: 1. Indiscipline and unbridled political behaviors reflecting gross absence of fair behavior. 2. Prevalence of short cuts for getting undue benefits like Syco-Fancy, profitability, non adherence to moral values, selfish and greedy behavior. 3. Continuous efforts by the responsible members of the management team to pressurize for providing benefits to a wide range of unscrupulous to gross neglect of genuine claimants. 4. Absence of any fear of getting punishment by practicing all sorts of corruptive actions. In the above backdrop, the following questions emerge before the author; 1. Should we not seriously examine the wisdom of following the currently popular individualized model of glorified CEO and associated obscene compensation and life style protection? 2. Should leadership qualities be measured by short-term financial performances or by contribution to building socially relevant and operationally efficient people driven organizations? 3. Is hankering of a modern manager after financial reward and managerial power a symptom of obvious erosion of ethical (honesty and integrity) and social (trust worthy and community sprit) capital in matters of business?
4. Can good governance be self-sustaining? 5. Notwithstanding the best management practices can companies be insulated from the prevailing economic, political and social environment? 6. Can corporate governance create an island of purity in the midst of a cesspool full of political filth and squalor? 7. Is corporate governance possible in the absence of Government governance? 8. Too much mandatory provisions, guidelines, norms and their apparent compliance conclusively help ensure good corporate governance? Up to what extent are the provisions, rules and regulations for good corporate governance appropriate and effective? These questions in fact are in the form of big challenges before the modern management. In other words how does the management function in the polluted environment so that it may succeed in ensuring good corporate governance? Of course, legal framework provides mandatory requirements, but their implementation has to be done by the team of managers who are basically human beings living in the social framework. Their behavior cannot be completely insulated against the corruptive practices mentioned earlier. To overcome this challenging hurdle, in the opinion of the researcher, it is necessary that there has to be public integrity. Public integrity cannot be entrusted, it has to be inculcated and accepted voluntarily. For this, it is necessary that value education has to be imparted to them so that their character may become sound and the managers may become more eager to discharge their activities fairly well. Value education to the society as a whole will also go a long way to make the surrounding atmosphere more ameliorative and friendly and thus the challenge can be easily met with fair amount of success.
CONCLUSION
To conclude, it may be said that corporate governance is the need of the day. Though it existed in the past in the form of enlightened concept of social responsibility of business and the concept of social audit, it has become more prominent recently due to speedier integration of different nations at a global level. However its success inter-alia, requires wide spread impact of ethical and value education which will go a long way in making the environment more conducive and in enabling the modern management to meet the challenge more successfully.
REFERENCES
Balachandran V. & Chandreshakeran V., Professional ethics issues and implications - Chartered Secretary, November 2003. Fernando, A. C., 2006. Corporate Governance: Principles, Policies and Practices, Prentice Hall, New Delhi. http://www.coolavenues.com/know/gm/harshdeep_1.php3. http://cvc.nic.in/07vgl70.pdf. http://www.qfcra.com/publication CorporateGovernance_Challenges_ Opportunities_and_Returns.pdf. Pandey T.N., Ethics in corporate governance Chartered Secretary, January 2004.
Trends in Takeovers in India in Post 1990 Period

Richa Gupta
Faculty of Commerce, Banaras Hindu University, Varanasi
E-mail: richa_jnp2007@rediffmail.com
INTRODUCTION
In the present era of globalization and stiff competition mergers and takeovers have emerged out to be very popular and effective strategic techniques for business expansion and growth. We very often read in economic and financial newspapers and magazines that an Indian company has taken over either a foreign or an Indian company or on the same token a foreign company has taken over an Indian company. Takeovers are aimed at increasing the growth-potential, productivity, and value of the company. While these reflect the positive aspects of takeovers, there are certain drawbacks attached to takeovers. Takeovers lead to monopoly and thereby it goes against the societal interest. Similarly, takeovers also lead to goal incongruences and cultural rift between the employees of the two companies. Prior to 1991, the takeovers were not much popular among the economy and were also restricted under the MRTP Act 1969, FERA Act 1973, and Industrial Development and Regulation Act 1951. In November 1994, SEBI has formulated the Substantial Acquisition of Shares and Takeover Regulations to regulate the
Trends in Takeovers in India in Post 1990 Period 101
takeovers. The code formulated by SEBI was observed to be inadequate in dealing with the complexities. Hence, the Justice P. N. Bhagwati Committee (1996) was set up to review the guidelines issued earlier by SEBI. The committee submitted its report in January 1997. The main objective of the takeover code was to provide greater transparency in the acquisition of shares and disclosures of information about the ownership and control of companies. Since 1997-98 to 2008-09 there have been 955 takeover deals by Indian companies as per the data released by SEBI.
BACK DRAWS OF INDIAN ECONOMY BEFORE 1990

After independence, the Indian economy was based on the socialism. Due to socialism the economy became more planned and regulated. Socialism economy avoids private profit and restricted the privatisation of companies. At the same time there was a system of Licence Raj in which the government controlled everything and entrepreneurs had to take permission from government before setting up any new manufacturing unit. To face economic challenges the government of India has made the first Industrial Policy Resolution 1948, which aimed at bringing mixed economy concept in the economy. To implement the 1948 policy, the government has passed the Industrial Development and Regulation Act 1951. At the same time the first Five Year Plan was also introduced, which aimed at the rehabilitation of refugees, rapid agricultural growth to achieve food sufficiency and overall development of the nation through which the loving standard of the people would improve. But the policy was failed to achieve its objectives and there was a need of new policy. Then, the second Industrial Policy Resolution 1956, was adopted for new classification of industries, fair and non-discriminatory treatment for the private sector, encouraged smallscale enterprises, removing regional disparities and encouraged FDI. Since two decades the government and the industrial policy both were not changed. After two decades the new government came into existence and announced the new Industrial Policy Statement 1977, which aimed at development of smallscale enterprises and to overcome unemployment, discrimination between the rural and urban inequalities and industrial sickness spread over the economy. After three years the new government came into existence and made the new Industrial Policy 1980, which focused on effective management of public sector, redefining of small units, revival of sick units, and liberalisation in licensing policy. This policy was also failed to achieve its objectives.
The economy was filled with several drawbacks viz. corruption in Licence Raj policy, low per capita income, low annual growth rate of the economy, losses in state owned enterprises, decrease in exports, poor infrastructure investment due to public sector monopoly, government expenditure was rising very fast, lack of competition, illiterate population, poverty, and balance of payment crisis. Due to lack of privatisation, and overdependence of more planned and regulated economy, the country was close to default. These reasons pushed the country near to bankruptcy. To overcome the reasons behind the crisis and for growth of the country the government has reform the economy on 24 th July, 1991 which focused on liberalisation, privatisation and globalisation. Through liberalisation policy, Industrial Licensing Policy, MRTP Act 1969 and FERA Act 1973 were removed from and offered the large scope of expansion for private sector. Privatisation enabled the transfer of ownership or management of a public sector to the private sector. Globalisation is the expansion of socio-economic integration across the world. It enables the free flow of capital, goods, and technology across the world.
IMPACT OF GLOBALISATION IN TERMS OF CHANGING BUSINESS LANDSCAPE IN INDIA

The economic reforms in 1991, had witnessed the dramatic policy changes in the Indian economy which introduces the term L.P.G. Among these three elements the term globalization is the most important element for the economic growth of India. Globalization is the process by which regional economies, societies, and cultures have become integrated through a global network of communication, transportation, and trade. The term is sometimes used as economic globalization which focused on the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology . Globalization accelerated the rate of economic growth in India. It reduces the trade barriers and increases exports and per capita income. The current account balance of payment of the country also becomes stable through globalisation. Globalisation enables the free flow of FDI and allows Indian companies to enter into foreign collaborations and enables the entry of MNCs in India through takeovers and mergers in India. Takeovers and mergers are become very popular all over the world due to globalisation and stiff competition in the economies. At present, in the Asia-Pacific region, India ranks fourth in M&As and Takeover activity, just after China.
TAKEOVERS AS A STRATEGIC TOOL FOR GROWTH AND TACKLING COMPETITION

Before 1991, the takeovers were not much popular and restricted under the Indian laws. But after the announcement of economic reforms, this activity accelerated its pace. Takeovers are governed by SEBI Regulation for Substantial Acquisition of Shares and Takeover Regulation which is known as Takeover Code. Now a day, Takeover becomes very common strategic tool for maximisation of a companys growth and expansion. Although, takeover was not defined by its regulation but in common phenomenon, takeover refers to the acquisition of control of shares of one company by another company through the purchase of voting shares in stock exchanges. The company which is going to be acquired is known as acquired or target company and the company which is going to acquire the target company, is known as acquirer, raider or bidder. Takeover means a change in the management or controlling interest of a company. The acquired company may operate as a subsidiary or may totally absorb by the acquired company. Takeovers can be friendly, hostile or bailout. In case of friendly takeovers, mutual concern of both, target and bidder company is required. It can be also done through negotiations. Friendly takeovers are characterised by bargaining until the agreement is signed. In case of hostile takeovers, acquirer company do not offer to target company, the proposal to acquire its undertakings. The acquirer purchases the shares of the target company through stock exchanges. Generally, hostile takeovers related to poor management, inefficiency and deprived performance which reflects to reduction in share prices. Then, the acquirer buys out its shares at low prices and gain control over the management of the target company. When the lead institutions appraises the financially weak companies taking into the financial viability and assess the requirements of funds for their revival and draw up the rehabilitation package on the principle of protection of interests of minority shareholders, good management, effective revival and transparency, it is called bailout takeovers.
Motives Behind the Takeovers

Takeovers can be done for several motives like, for elimination of competition, for expansion of market shares, elimination of costs, for tax benefits, for maximisation of profitability, for larger scale for better economies, to gain a dominant position in global market, for better and effective utilisation of management and financial resources.
Trends in Takeovers in India After 1990

Indian market for M&A has grown tremendously over the past few years. The domestic transactions have grown from $4.9 billion in 2006 to $6.7 billion in 2009. During 1988-92, 121 takeovers and mergers occurred, while 37 takeovers bids were unsuccessful. As per the data released by SEBI, since, 1997-98 to 2008-09 there have been in total 955 takeover deals done by Indian companies. Of these takeover deals 635 deals were aimed at change in control of management, 207 deals were aimed at consolidation of holdings and 113 deals were aimed at substantial acquisition. If we look into the data in terms of number of takeovers, we find that change in control of management stands first, consolidation of holdings stands second and substantial acquisition stands third. Similarly, if we look into data in terms of amount involved in takeovers, change in control stands first, consolidation of holdings stands second and substantial acquisition stands third. After the 13 years of Takeover Code drafted by P.N. Bhagwati Committee, still there was a need of an improved code to overcome the demerits of the previous one. Since 1997, the existing Takeover Code has been amended as many as 23 times in its 13 years of existence. The purpose of these amendments is to protect the investors interests, especially SMEs that need capital to grow. The Takeover Regulatory and Authority Committee (TRAC) headed by C. Achuthan and constituted by SEBI, have decoded a new takeover code, which increases the threshold limit for the mandatory offer to 25% from 15% now. India has taken over various companies within the country and outside the country in several industries like steel, automobile, cement, pharmaceuticals, textiles, etc. These takeovers enhance the efficiency of the companies. Some Indian companies like, Tata Group, Hindalco, Sundaram fasteners Ltd., Ranbaxy, Cadila, Amtek Auto, Mahindra Group, which had taken over the foreign companies. Tata Group of India has done the maximum number of cross border takeovers.
CONCLUSION
Takeovers are growing rapidly in the present scenario of India and also in many countries. It becomes the most common and favourite strategic tool for the strategists and business analysts to cope with the competition. Takeovers have some positive aspects like, increase market share, expansion of economies of scale, reduce competition, reduction of overcapacity in the industry, increase in sales/ revenues, venture into new businesses and markets, increase efficiency, decrease operating costs, etc. There are also have some negative aspects of takeovers like, it increases monopoly in the economy, it cut downs the likelihood of jobs, acquirer company have to pay the hidden liabilities of the target company, there may be a
big chance of conflict with new management, sometimes takeovers becomes a game for management hubris. These things are the barriers for the acquiring company to achieve its goal and fulfill its purpose. While having negative aspects, takeovers still plays a vital role in the Indian economy and as well as foreign countrys economies.
REFERENCES
Cherunilam, Francis, Business Policy and Strategic Management Text and Cases, Himalaya Publishing House. Dutta Ruddar, Sundharam K.P.M., Indian Economy, S. Chand and Company Limited. Kaushal Vijay Kumar, Corporate Takeovers in India, Sarup and Sons. Machiraju, H.R., Mergers, Acquisitions and Takeovers, 2003, New Age International Limited, Publishers. Mishra, S.K., Puri V.K., Economic Environment of Business, Himalaya Publishing House. The Economic Times, Lucknow.
WEBSITES
www.business.mapsofindia.com/globalization/indian industry/ http://en.wikipedia.org/wiki/Globalization http://www.rediff.com/money/2009/feb/09indias-per-capita-incomedoubles-to-rs-38084.htm www.sebi.gov.in/ www.tata.com www.en.wikipedia.org/wiki/takeover
Celebrity Endorsement: A Marketing Strategy

Radhika Madan
IILM College, Gurgaon
E-mail: radhika.madan@iilm.edu
Keywords: Customers, Brands, Celebrity Endorsements, Marketing, Marketing Communications, Marketing Strategy
LITERATURE REVIEW
Endorsement is a channel of brand communication in which a celebrity acts as the brands spokesperson and certifies the brands claim and position by extending his/her personality, popularity, stature in the society or expertise in the field to the brand. In a market with a very high proliferation of local, regional and international brands, celebrity endorsement was thought to provide a distinct differentiation. A celebrity is defined as an individual who is known to the public (i.e. Actor, sports figure, entertainer etc) for his or her achievements in areas other than that of the product class endorsed (cf.,Friedman and Friedman 1979). In todays dynamic and highly competitive business environment customers are becoming more demanding. Their expectations are continuously rising, with marketers continuing their efforts to meet them. In their creative advertising efforts marketers turn to celebrity endorsement to influence consumer brand choice behaviour. The crescendo of celebrities endorsing brands has been steadily
Celebrity Endorsement 107
increasing over the past 20 years or so. Marketers overtly acknowledge the power of celebrity in influencing buyers purchase decision. They have firm belief that likeability or a favourable attitude towards a brand is created by the use of a celebrity. Advertising professionals rely on the assumption that using a celebrity to endorse a brand will result in an increase in consumer recall of the brand. Advertisers believe that using a celebrity endorser will foster, in the mind of the consumer, a match or connection between the celebrity endorser and the endorsed brand. Celebrities also create positive feelings towards brands, connect user to brand and are perceived by consumers as more entertaining. Using a celebrity in advertising or for any, other type of communication for brand building is likely to positively affect consumers brand preference, brand attitude, brand association and purchase intentions. Celebrity endorsement has become a popular approach in the branding procedure both in terms of gaining and keeping attention and in creating favourable associations leading to the brand knowledge and distinct brand images. The use of celebrity endorsements has increased to approximately 25% of all advertisements in the UK and US and approximately 70% of all advertisements in Japan. Pringle asserts that successful celebrity / brand partnerships have resulted in significant gains in income for brand owners. Celebrities need to have some special attributes because of which consumers would relate to them and purchase the products endorsed by these celebrities. Once they relate to the celebrities they become loyal towards the brands endorsed by them and start patronizing them. One study by Howard (2002) showed that female respondents in the U.S.A. were more responsive to celebrity endorsement (20%) than male respondents (16%). Frazer and Brown examined how audience members identified with celebrities, and how this affected their personal lives. They concluded that people selectively integrated the perceived values and behaviours they saw in celebrities they admired and adopted them into their own lives (Frazer and Brown, 2002). Pappas (1999), who examined the value of star power in an endorsement, indicated how a well-designed advertising helped celebrities convert their star power into brand equity.
CONTRA VIEW
Despite the preceding potential benefits, there are still many potential hazards in utilising celebrities as part of a marcoms campaign. Benefits of using celebrities can reverse markedly if they, for example, suddenly change image, drop in popularity, get into a situation of moral turpitude, lose credibility by overendorsing, or overshadow endorsed products (Cooper 1984; Kaikati 1987). It has been found that negative information about a celebrity endorser not only influences consumers perception of the celebrity, but also the endorsed product
(Klebba and Unger 1982; Till and Shimp 1995). A common concern is that consumers will focus their attention on the celebrity and fail to notice the brand being promoted (Rossiter and Fercy 1987). As Cooper (1984) puts it the product not the celebrity, must be the star. Embarrassment has occurred for some companies when their spokesperson or celebrity has become embroiled in controversy (Hertz Corporation and OJ. Simpson). Another important issue is that of celebrity greed and subsequent overexposure when a celebrity becomes an endorser for many diverse products . According to Pringle: There is research to show that consumers lose confidence in celebrities who do too many things. Many studies were critical about the use of celebrity endorsement. One study examined the potential risks of overshadowing endorsed products. The study explored the common concern that consumers would focus their attention on the celebrity and fail to note the endorsed brand itself (Erdogan, Baker, and Tagg, 2001). Wells and Prensky (1996), who examined the issue of credibility, indicated that many consumers were sceptical of celebrities who were paid to provide positive information about endorsed brands. Other studies explored the issue of negative publicity associated with celebrity endorsers (Till and Shimp, 1998). To conclude, it is said that though there are numerous benefits of celebrity endorsements and it is an effective marketing tool, there are downsides to this tool as well. Most advertisers cant afford the millions of dollars it takes to ink a celebrity endorser. Celebrity endorsers are not only pricey, theyre risky. Celebrity spokespeople are expensive and risky, and they dont always pay off.
OBJECTIVES OF RESEARCH
1. To study celebrity endorsement as a strategy for marketing 2. To study the reasons for usage of this strategy by marketers
DESIGN AND RESEARCH METHODOLOGY

This research is based on secondary data which has been collected from various websites, online journals, articles, books and magazines. The sample that is studied are FMCG companies the popular ones namely Pepsi, Coke, Nike, Provogue, LUX and Cadbury. The Study is based on data available from surveys about these FMCG majors. The information is collected and analysed in the findings below.
FINDINGS AND ANALYSIS

The use of celebrity endorsers in advertising is wide-spread as much as 20 percent of all advertising use some type of celebrity endorser. Marketers invest significant
dollars in securing the promotional support of well-known individuals. Friedman et al. (1977) found that celebrities are featured in 15 percent of the prime-time television commercials. In the United States, it was reported that about 20% of all television commercials feature a famous person, and about 10% of the dollars spent on television advertising are used in celebrity endorsement advertisements (Advertising Age, 1987; Sherman, 1985). Thus, celebrity endorsement has become a prevalent form of advertising in United States (Agrawal and Kamakura, 1995) and elsewhere. The first objective to study celebrity endorsement as a strategy for marketing has been achieved through the research that has been conducted. The late 80s saw the beginning of celebrity endorsements in advertisements in India. The following companies are explored to study the reasons for using this strategy by marketers, Coke, Cadbury, Pepsi, Lux, Nike and Provogue. A number of companies have used celebrities to overcome the crisis that their brands faced at some point in time. When Cadbury in India faced the worm infestation controversy that erupted in 2004, the company turned to the famous Indian film personality. Though Cadbury vouched for its decades old quality and safety standards, the message was not getting through to the public. A research group in India, the Centre for Science and Environment, an independent public interest group came out with their findings that soft drink manufactured by Coca Cola contained harmful pesticide residue, the company responded by bringing in celebrity endorsement who appeared in an advertisement endorsing Cokes safety standards. Celebrity endorsements have been the bedrock of Pepsis advertising. Over the years, Pepsi has used and continues to use a number of celebrities for general market and targeted advertising for their sub brands. Both Pepsi and Coca - Cola have seemingly run out of things to say about their products so they rely heavily on celebrity endorsements. Nike is also very well known for another aspect and that is its consistent use of celebrities to endorse the brand. In fact one of the most successful collaborations between a brand and a celebrity is that of Nike and Michael Jordan. The successful collaboration that Nike and Jordan launched a new brand variant called the Air Jordan line of sport shoes. One of the most successful celebrity endorsement campaign which reflects the fit between the brand and the 360 degree advertising fit is a bollywood celebrity and Provogue. Provogues positioning in the apparel market is of a young, active, party-going, attention-grabbing brand and so is the celebrity. Since the inception of Lux in India, it is known for its celebrity endorsements. Lux, the Beauty Bar of the Stars. Lux has repositioned itself from being a
womens soap to a soap for the men. For this also they have used a male celebrity to endorse the product to appeal to the target audiences. The responses have been not as expected by the company. The latest trend in India is to rope in celebrities for social causes like AIDS, Polio etc. This has had a positive effect on the consumers as celebrities rule over their minds. Any awareness campaign endorsed by the celebrities has received high levels of penetration and overwhelming response.
SUGGESTIONS AND RECOMMENDATIONS

The current research findings suggest that advertisement makers and specialists are highly recommended to keep in mind the following points: Strategically plan and select the celebrity, it will enable the company to relate to the global target audience. The celebrity should have high recognition, high positive effect and high appropriateness to the product. Celebrity endorsements would be more effective if they are consistently used over time to create the link between the brand and the celebrity. Use a celebrity who is not strongly associated with another product or service. They can be used to reinforce or create an image for a product or brand even when the brand is not a famous one. It is important to have a celebrity whose impression and image is positive for the target audience. Celebrity endorsement as as strategy works well in the Indian market but the magnitude of the effect varies from the celebrity who is endorsing to the product that is being promoted. Consumers are not able to recall the brand endorsed by celebrities who are seen in multiple advertisements. Celebrity endorsements will be more effective for brands for which consumers have limited knowledge. Celebrities are used to avert the crisis of brand reputation.
CONCLUSION
Celebrity endorsement strategy can be an effective competition weapon in mature markets in order to differentiate products from competitors since there is heavy advertising clutter. Celebrities have always been the easiest way to attract the customers because of their mass appeal. Though there are some downsides to
celebrity endorsements, they do influence the target audience and make them loyal towards the brand. Celebrities help advertisements stand out from the surrounding clutter, thus improving their communicative ability. A celebrity therefore is a means to an end, and not an end in themselves. In terms of the future, celebrity endorsements are here to stay.
REFERENCES
Alsmadi, Sami; The Power of Celebrity Endorsement in Brand Choice Behavior: An Emperical Study of Consumer Attitudes Journal of Accounting, Business and Management; Oct 2006, Vol. 13, p69-84. Carroll, Angela, Brand Communications in fashion categories using celebrity endorsements Journal of Brand Management; Oct/NOv 2009, Vol 17 Issue 2, p146-158. Costanzo, Paul J. And Goodnight, Janelle E., Journal of Promotion Management; 2005, Vol. 11 Issue 4, p49-62. Erdogan, B. Zafer, Celebrity Endorsement: A Literature Review Journal of Marketing Management; May 1999, Vol. 15, Issue 4, p291-314. Kamins,Micheal A.; Brand,Meribeth J.; Hoeke, Stuart A.; John C., Two Sided Versus One Sided Celebrity Endorsements: The Impact on Advertising Effectiveness and Credibility Journal of Advertising, 1989, Vol. 18 Issue 2, p4-10. Kotler, P.; Keller, K.; Koshy, A.; Jha M., Marketing Management: A South Asian Perspective 13th edition. Pringle, H., (2004) Celebrity Sells. San Fransisco: John Wiley. Till, Brian D.; Shimp, Terence A., Endorsers in Advertising: The Case of Negative Information Journal of Advertising, Spring 98, Vol. 27 Issue 1, p67-82. Warren, Matthew ,Campaign (UK); 11/2/2007, Issue 44, p13-13, 3/4p. http://www.businessweek.com/smallbiz/content/nov2008/sb20081114 _106175.htm. http://www.buzzle.com/articles/the-use-of-celebrity-endorsements-inmarketing.html. http://www.chillibreeze.com/articles/Celebrity-endorsement.asp. http://www.coolavenues.com/mba-journal/marketing/impact-celebrityendorsements-overall-brand-0. http://www.indianmba.com/Faculty_Column/FC706/fc706.html http://www.scribd.com/doc/29239697/Celebrity-Endorsements-Report.
http://www.venturerepublic.com/resources/Branding_celebrities_brand_endo rsements_brand_leadership.asp. http://www.venturerepublic.com/resources/Branding_celebrities_brand_end orsements_brand_leadership.asp.
Analysis of Global Financial Crisis with Special Reference to Indian Banking Sector
Nishi Sharma and Monica Sharma1
UIAMS, Panjab University, Chandigarh 1 M.M.H.College, Ghaziabad
E-mail: jmdnishi@yahoo.com
PURPOSE OF THE STUDY

Subprime crisis snowballed into a global financial crisis with the global financial landscape has resulted into a great failure all around the world. Besides triggering large scale reversals in capital flows, the multi-dimensional ramifications of the crisis led to sharp slowdown in growth of economy. Since the inception of crisis, the anxiety of different countries to sustain their financial stability has intensified. Generally it is assumed, that developing nations would be insulated from the direct adverse impact due to their limited exposure. In this context the present study aims at assessing whether there has been any impact of global crisis over Indian banking sector or not. Further, it aims at specifying the extent of such effects and analyse the reasons responsible for it.
METHODOLOGY
The present study attempts to analyse some macro-economic variables like FDI
inflows, GDP, inflation rate as well as the financial performance of Indian scheduled banks so as to understand the impact of global oscillations on India.
FINDINGS
The analysis reveals that Indias well-calibrated approach to financial globalisation is appreciable for sustaining financial stability to the Indian economy. Though the recent financial turmoil in developed economies has effected to India to some extent, still its regulatory guidelines on securitisation, RBI initiatives and effective mechnism have intensified the resilience capability of banking sector.
RESEARCH LIMITATIONS
The present study suffers from the limitation of analysing limited variable, inherent limitations of secondary data and inter-dependence of different variables.
IMPLICATIONS
The study has implications to the policy-makers to avoid global swings as well as to Indian banks to ensure their financial stability.
ORIGINALITY
Only a limited work has been done to study the impact of such global swings over banking sector. In this context, the present study attempts to analyse the impact of global financial crisis to Indian banks and attempts to draw attention of regulatory authority to this issue.
INTRODUCTION
In recent years, world economy has experienced huge volatility. At the outset, these meltdowns have their impact primarily to the developed nation and only few developing nations were ill-effected by these crises. As far as Indian economy is considered, it has not experienced any major contagion, similar to its peers in the rest of Asia. Infact, India and China were seen as the potential shock absorbers in the global system, with predictions that their persisting expansion and relatively high rates of growth would prevent the global downturn from becoming a meltdown (Bergsten 2008). Further no direct impact on account of direct exposure to the sub-prime market was in evidence because only a few banks had invested in the collateralised debt obligations/bonds having underlying entities with sub-
Analysis of Global Financial Crisis with Special Reference to Indian Banking Sector 115
prime exposures. But recent global crisis has become strong enough to break down the resilience of developing and emerging economies. As a result, developing countries were also bound to be effected by the recent financial turmoil. During 2008, Global slowdown added to the strains on capital and exacerbates the squeeze on credit availability. It caused collapse of large financial institutions. In this context, present paper attempts to analyse the impact of global meltdown over the Indian banking sector. There is a direct linkage between macroeconomic performance and financial stability. Therefore the present study attempts to assess the impact of global financial crisis on financial sector through analysing some macro-economic variables like, GDP growth rate, Inflation, FDI inflow and profitability of scheduled commercial banks in past years.
IMPACT OF GLOBAL MELTDOWN ON INDIAN BANKING SECTOR

Liberalisation of economy in 1991, has paved new avenues of growth to India. The impressive performance of the economy is testimony to the deliberate policy and prudential measures of India. Asian Development Bank (2009) pointed out that a countrys ability to withstand shocks depends on a set of variables that may either amplify or absorb them. In practice, countries with strong macroeconomic fundamentals would be better able to withstand downturns in a better way. At the cross-country level, evidence indicates that various measures of financial development are robustly and positively related to economic growth (King and Levine, 1993; Levine and Zervos, 1998). Infact, there is a great consensus among economists that development of the financial system contributes to economic growth (Rajan and Zingales, 2003).Therefore, growth rate of real GDP has been selected as the first parameter to study the impact of global turmoil over financial sector. During 1992 to 1997, the average growth rate of real GDP was around 5.7 per cent thereafter; it has shown a slight decline to 5.2 per cent during 1997 to 2003. The period from 2004 to 2008 has reported average growth rate of 8.8% and made India as one of the worlds fastest growing economies. However, India could not escape itself from recent fallout of global financial sector. According to IMF world economic outlook, average annual change in real GDP has declined from 9.3% in 2007 to 5.0% in 2009, however, in 2010 it is expected to report at 6.5%. Further, Consumer price Inflation has shown a rise from 5.5% in 2007 to 8.2% in 2008. Recently, global inflation rate has softened in many countries. According to the IMF, the combination of stabilising commodity prices and slowdown of the economy would help in containing the inflationary pressures in 2009, which is expected to fall to 0.25 per cent, before edging up to 0.75 per cent in 2010.
Sharp rise in foreign investment flows into India, comprising foreign direct investment and foreign portfolio investment, since 1990s is a testimony of great economic reforms. In respect to foreign direct investment inflows, India is the leading remittance-receiving country in the world with relative stability of such inflows. The FDI inflow in India could be observed by the following table: Table 1: FDI Inflows to India
Year 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 (up to august)
Source: www.dipp.nic.in/fdi-statistics/india
Amount of FDI Inflows (in millions $) 167 393 654 1374 2141 2770 3682 3083 2439 2908 4222 3116 2,597 3,759 5,540 12,492 24,575 27,331 25,834 8,887
The amount of FDI inflow in India is continuously rising since 1990-91 except 16.27% in 1998-99, 20.89% in 1999-00, 26% in 2002-03 and 17% in 2003-04. Further,
the current global financial turmoil has led to a reversal in trend in respect of 2008-09 which has impacted the capital market and foreign exchange markets significantly. The foreign exchange reserves which reached a peak of USD 309.7 billion at end-March 2008 have declined and stood at USD 249.3 billion as on February 27, 2009. Various policy measures initiated in last few years have made financial markets to gain liquidity and resilience. Indian banking scenario has also shown quite satisfactory performance. The financial performance of scheduled commercial banks could be analysed through the business per employee, profit per employee, ROA, CRAR and net NPA ratio. These could be summarised through the following table: Table 2: Performance of Indian Scheduled Commercial Banks
Particulars No. of offices No. of employees Business per employee (in lakh) Profit per employee (in lakh) Return on Assets CRAR Net NPA ratio
Source: RBI report 2009-10
2005-06 57262 876955 419.80 2.80 1.01 12.32 1.22
2006-07 59800 894588 522.94 3.49 1.05 12.28 1.02
2007-08 63681 901221 643.24 4.74 1.12 13.01 1
2008-09 67263 937445 753.44 5.63 1.13 13.98 1.05
2009-10 71998 944620 873.32 6.05 1.05 14.58 1.12
According to Global Financial Stability Report, April 2009, the return on assets of Indian banks has shown a comparatively lesser volatility in comparison to Germany, Japan and USA etc. The return on assets of banks increased from 0.8% in 2002 to 1.0% in 2008. However, the return on assets of US banks reported a sharp fall from 1.3% to only 0.3%. One of the primary reasons of insulation of financial sector from global swings was the nascent stage of development of its credit derivatives market. Further, regulatory guidelines on securitisation, close co-ordination between banks and regulatory authorities have intensified the resilience capability of banking sector. RBI has taken significant measures to pacify the impact of global oscillations over financial sector. Some of the initiatives taken by RBI could be summarised as in the following section.
RBI INITIATIVES TO MITIGATE THE RISK EMERGED DUE TO GLOBAL CRISIS

The collapse of Lehman Brothers has bought unforeseen changes in the financial sector all around the world. In the aftermath of the turmoil, the Reserve Bank has announced a series of measures to ensure financial stability of Indian banking sector. It has not only restricted the overnight unsecured market for funds to banks and primary dealers but also limits on the borrowing and lending operations of these bodies in the overnight inter-bank call money market. Further, prudential limits (in accordance to the net worth) have been imposed on the banks regarding their purchased inter-bank liabilities. RBI closely monitors the credit-deposit ratio of scheduled banks and issues guidelines for proper asset-liability management to ensure their financial soundness on a continuous basis. In addition to above, RBI directs on securitization of standard assets and supervises non-performing assets of banks. RBI has laid down various suggestive measures to mitigate different type of financial and non-financial risk. RBI has also prescribed Standardised Approach for credit risk and Basic Indicator Approach for operational risk. It has reviewed the directives on credit conversion factors, risk weights and provisioning requirements for specific off-balance sheet items. In order to minimise the regulatory arbitrage between Non-banking Financial Companies (NBFCs) and the banking system, NBFCs capital adequacy ratios and prudential limits to single/group exposures have been progressively brought nearer to those applicable to banks. In addition to this, with an objective to have consistency and harmony with international standard, RBI has issued guidelines on implementation of the Basel II framework covering all the three pillars. The banks have been directed to bring Tier I CRAR to at least 6 per cent before March 31, 2010. Further, the deadline for migrating to Basel II for all foreign banks operating in India and banks working outside India is March 31, 2008 while for all other scheduled commercial banks it is March 31, 2009. RBI has attempted appropriate use of different liquidity management instruments like Cash Reserve Ratio, Statutory Liquidity Ratio, open market operations including the Market Stabilisation Scheme and the Liquidity Adjustment Facility also.
CONCLUSION
Extreme volatility of global financial sector has bought large swings in capital flows, heightened uncertainty, and threatened to domestic equity and currency markets. During the financial turmoil, some of the commodity prices in Asia may have been pushed higher to some extent by increased demand for commodities as a hedge against depreciating US dollar as well as in form of a hedge against
higher inflation. Foreign exchange market has also experienced some swings and pressures in recent years. However, Indias well-calibrated approach could avoid greater volatility and could ensure financial stability to the economy. Economy could remain resilient due to the dominance of domestic demand and sufficient balance of foreign reserves. Further, India could achieve its financial stability through its prudential norms and deliberate monetary policy.
REFERENCES
Asian Development Outlook (2009), ADB publication ISSN 0117-0481. Bergsten, Fred (2008), Trade has saved America from recession, Financial Times: http://www.ft.com/cms/s/0/d87f2158-46a4-11dd-876a-0000779fd2ac.html. IMF Global Financial Stability Report, April 2009. IMF World Economic Outlook, Rebalancing growth Report, April 2010. King, R.G. and R. Levine (1993): Finance and Growth: Schumpeter might be right, Quarterly Journal of Economics 108, 717-37. Levine, R. and S. Zervos (1998): Stock Markets, Banks and Economic Growth, American Economic Review 88, 537-58. Rajan, R.G. and L. Zingales (2003), Saving Capitalism from Capitalists, Crown Business publications, New York. RBI report 2009-10.
A Study on the Consumer Durable Replacement Intentions: With Reference to Television

D. Anuradha
DOMS, Vel Tech High Tech Dr. Rangarajan Dr.Sakunthala Engg. College, Avadi, Chennai
E-mail: anu4d@hotmail.com
Keywords: Replacement, Purchase, Television, Buyers
INTRODUCTION
India is one of the worlds fastest growing markets regards consumer durables are concerned. This phenomenon is dominantly present ever since India has adopted the policies pertaining to liberalization, globalization and privatization. The global market perspective together with advances in products, process and business technologies have brought about radical and continuous changes in the durable goods industry of India. The Indian consumer durable goods sector is a near precise indicator of the nations economic well being, besides being a pointer to the distribution of prosperity among different income segments. Buyers have become increasingly
A Study on the Consumer Durable Replacement Intentions 121
sophisticated, demanding more frequent innovations, greater exclusivity, more choices and better services. The growing trends towards a more active lifestyle have necessitated innovative durables to suit to the conveniences of life. These changes have increased the diversity of products in the Indian market. Manufacturers of durables are involving newer features in their existing products. This hassled to intense competition among the manufacturers. The manufacturers with their channel partners are arranging for buy-back schemes that induce customers to replacement purchase. Buyers have different tastes, likes and dislikes which leads to different behavior in making replacement purchase decisions. The behavior of the consumer may not be uniform for all products, which has prompted this study in identifying the behavior of the consumers in television replacement purchase. In case of replacement purchase, the behavior is likely to differ than that of first time purchase. The first time purchase may be due to necessity, whereas the replacement purchase is primarily based on the considerations viz., features, and facilities of existing product purchased and technology of new products.
BACKGROUND TO THE STUDY

Major research pertaining to consumer durable goods has included the following topics (see also the review by Dickson and Wilkie 1978): (1) information search and decision making (e.g., Beatty and Smith 1987; Punj and Staelin 1983; Westbrook and Fornell 1979; Wilkie and Dickson 1985), (2) planning of purchases and the acquisition sequence of durable goods (e.g., Bayus and Rao 1989; Dickson, Lusch, and Wiwje 1983; Kasulis, Lusch, and Stafford 1979), and (3) post purchase behavior (the disposition of durable goods-e.g., Burke, Conn, and Lutz 1978; DeBell and Dardis 1979; Jacoby, Berning, and Dietvorst 1977; consumer dissatisfaction and complaint behavior-e.g., Tse and Wilton 1988). Few studies, however, have explicitly examined consumer replacement behavior. Exceptions include work by Jacoby, Beming, and Dietvorst 1977) and its extensions (Burke, Conn, and Lutz 1978; DeBell and Dardis 1979), which look at the disposition process for consumer durable goods. Product factors related to the disposition decision also have been examined (DeBell and Dardis 1979). All of these studies, however, focus on product disposition after a replacement decision has been made. None examine the consumer replacement decision and, in particular, the timing of replacement purchases. Surveys further indicate that specific reasons for replacement purchases include failure or unreliable performance of the current product, changed family
circumstances (e.g., recent marriage, larger family size, household move), and improved financial circumstances (Gabor and Granger 1972; Katona and Mueller 1954; Pickering 1975; Wilkie and Dickson 1985). A study was conducted to develop a better understanding of the timing of durable good replacement purchases. The characteristics of consumers who replace a product during the early part of its lifetime (e.g., every few years) were compared with those of consumers who make replacement purchases much later in the products lifetime. Generally, replacement purchases can occur as a result of situations that are forced or unforced (Bayus 1988; Wilkie and Dickson 1985). A product failure, for example, would create a forced purchase situation, whereas unforced situations could include replacements of working units because of changes in style preferences. Depending on the replacement situation, postponing the purchase (e.g., because of financial problems or changes in priorities) may be an important alternative.

The study has the following objectives: 1. To present the profile of the buyers considered for the study 2. To identify and evaluate the variables influencing replacement purchase behavior 3. To categorize replacement buyers based on the extent of influence of select variables.
METHODOLOGY Product Considered for the Study: Television

The demand for replacement of Color Televisions has risen on account of international sporting events like Olympics, World Cup tournaments in cricket and football and others. The adding features in television, has prompted the customers to replace the television with new one.
Area of Study
The study was conducted in Chennai city in the state of Tamil Nadu in India. Chennai is identified as one among business friendly city out of top business friendly cities in India. Most of the manufacturers of consumer durable goods have their regional offices in Chennai e.g. Viveks, Vasanth & Co., Shaw & Co. etc.,
Population and Sample

The population of the study consists of buyers who have replaced television during the year 2010. The data for total replacement is not estimated. The sample size consists of 74 filled in questionnaires out of 85 questionnaires distributed.
Data Collection
Primary data for the study was collected from the buyers as defined using undisguised structured questionnaire. The questionnaire was personally administered and the respondents were given adequate time to record their responses without bias. Secondary data was collected from various sources such as: Census of India Records and bulletins, publications of survey organizations, other relevant research publications, journals and books.
Field Work
The database was generated by obtaining input from the major retail outlets of the study area that deal with the products under study. Such retail outlet includes Vivek & Co, Shaw & Co, Vasanth & Co, VGPaneerdas & Co, etc.
INDIAN CONSUMER DURABLE INDUSTRY: AN OVERVIEW

Some of the popular brands of the television products considered for study are: Aiwa, Akai, BPL, Daewoo, Samsung, LG, Onida, Oscar, Philips, Panasonic, Sansui, Sharp, Son, Thompson, Toshiba, Videocon, Beltek, Haier, etc. (Consumer durables publication, ICRA)
Television Market: Historical Perspective

The history of television can be tracked back to 1888 with the discovery by German physicist Wilhelm Hallwachs that certain substances emit electrons when exposed to light. Hallwachs demonstrated the possibility of using photoelectric cells in cameras. This property called photoemission was applied in the creation of image orthicon tubes, which, inturn allowed the creation of the electronic television camera. In 1987, the Cathode Ray Tube (CRT) was invented by the Karl Braun, and in 1904, the first color television system was proposed, based on the principle of scanning three primary colors. After years, in 1939 broadcasting in the US, The National Broadcasting Company (NBC) started scheduled regular broadcasts to
only 400 sets in the New York area. These initial broadcasts employed a scanning system of 340 lines at 30 frames per second.
Global Perspective
By 1970, television had become the primary information and entertainment medium in the US. Today, it is estimated that there are 605 television sets worldwide.
Indian Perspective
The television industry started in India in 1970 with the production of black and white television sets. The birth of CTV in India can be traced to the Asian Games (ASIAD) held in New Delhi in 1982. The second phase of CTV growth came on the heels of the 1991-initiated economic liberalization programme, after which there was a reduction in both excise and import duties. The second half of the 1990s saw the entry of the first bunch of global brands like Akai, Aiwa, Sansui and Toshiba trough strategic tie-ups with the established Indian players. The other multinationals including Sony, LG, Samsung entered on their own and quickly captured the imagination of the market with innovations in product quality and features.
RESULTS AND ANALYSIS Profile of the Students

The profile of the sample respondents is summarized in Table 1.
Categorizing Replacement Buyers

Several decision drivers might influence replacement purchase. The major drivers have been identified. They are: Tech savvy, Price advantageous, Need conscious, Status related, Dissonance driven, Internal as well as External agency induced. An attempt has been made to group the replacement buyers considered for the study n the basis of such decision drivers. The influences of these drivers are considered as the platform for grouping the replacement buyers. Tech savvy ness indicates the technical superiority associated with the product. Price advantageous refers to the price benefits expected to receive in view of replacing the existing product. Need conscious refers to the compulsion of the purchase as a result of necessity. Status related means the buyers inclination to
Table 1
Demographic Age 17-20 yrs 21-24 yrs >25 yrs Gender Male Female Education Level School Diploma Graduate PG and others Occupation Self-Employed Professional Private Sector Public Sector Income per Month (Rs.) Up to 15,000 15,001 30,000 30,001- 45,000 Above 45,000 Family Size of Respondents 4 or less than 4 5- 8 9 12 Above 12 Age group of children of respondents Above 12 years Below 12 years Number 27 34 13 49 25 10 14 41 09 09 14 33 18 51 19 4 0 59 8 5 2 51 23 % 37% 45% 18% 66% 34% `14% 19% 55% 12% 12% 19% 45% 24% 69% 26% 05% 80% 11% 06% 03% 69% 31%
associate the product with his/her family or professional status. Dissonance driven means the displeasure of the existing product leading to the purchase of a new one. Internal agency induced refers to the inducement by family members. The compulsion of these family members might lead towards replacement purchase. External agency includes friends, neighbors, dealer and sales persons who might have induced replacement purchase. Based on the responses to the above the number of buyers in each of the category are as below in Table 2.
Table 2: Number of Buyers in Each Category

S.No. 1 2 3 4 5 6 7 Category Tech Savvy Price Advantageous Need Conscious Status Related Dissonance Driven Internal Agency Induced External Agency Induced Number of Buyers 19 20 27 26 21 18 17 % of Buyers 25.67 27.02 36.48 35.13 28.37 24.32 22.97
Pre and Post Replacement Television Brand Ownership

The pre replacement brand includes: Dynora, Mustang, BPL, National, EC TV, Onida and Crown. The post replacement brand includes LG, Onida, Samsung, Akai, BPL, Sony, and Videocon. It is inferred that the buyers satisfaction exceeds expectation in the case of automatic tuner, auto search, picture-in-picture, and multichannel and speaker type.
CONCLUSION
The study presents an in-depth market scenario of the durable sector in India. This sector is highly volatile as economies of scale are the rule of thumb for survival. Further the study brings to light the most important factors in terms of both product and service factors that customers care for in a replacement purchase. The clusters that are formed on the basis of the study helps to related common factors that are of importance in a replacement purchase. The findings of this study would serve meaningful purpose.
REFERENCES
Adams FG (1964). Consumer Attitudes, buying plans and purchases of durable goods: a principal components, time series approach. The Review of Economics andStatistics, 46, 347-355. Byrnes JC (1964). Consumer intentions to buy. Journal of Advertising Research, 4 (3), 49-51. Clawson CJ (1971). How useful are 90-day purchase probabilities? Journal of Marketing, 35, 43-47.
Day D (1987). An Examination of the Accuracy of Two Versions of the Juster Scale for Predicting Consumer Purchase Behaviour Using Self-completion Questionnaires. Unpublished research report, Massey University, Palmerston North, New Zealand. Dobbs C (1985). An Application of the Delphi Technique and the Juster Scale as a Means of Forecasting Trends in the Advertising Industry. Unpublished research report, Massey University, Palmerston North, New Zealand. Gabor A & Granger CWJ (1972). Ownership and acquisition of consumer durables: report on the Nottingham consumer durables project. European Journal of Marketing, 6 (4), 234-248. Gan BC; Esslemont DHB & Gendall PJ (1985). A Test on the Accuracy of the Juster Scale as a Predictor of Purchase Behaviour. Market Research Centre Report No.45, Massey University, New Zealand. Gruber A (1970). Purchase intent and purchase probability. Journal of Advertising Research, 10 (1), 23-27. Heald GI (1970). The relationship of intentions to buy consumer durables with levels of purchase. British Journal of Marketing, Summer, 87-97. Isherwood BC & Pickering JF (1975). Factors influencing individual purchases of motor cars in Great Britain. Oxford Bulletin of Economics and Statistics, 37, 227249. Juster FT (1960). Prediction and consumer buying intentions. American Economic Review, 50, 604-622.
A Study on Expectations of Rural Consumer Towards Organized Retailing: A Review

Anand Thakur and Ankush Mehta1
Department of Management, Lovely School of Business, Lovely Professional University, Phagwara (Punjab) 1 Department of Management, Lovely School of Business, Lovely Professional University, Phagwara (Punjab)
E-mail: anand0174@yahoo.co.in
Keywords: Retailing, Rural Marketing, Readymade Apparels, Retail Business
INTRODUCTION
Retailing is a booming business in India and spreading rapidly throughout the country. So, it is essential to know about the various aspects of the retailing especially the retail perspective of the readymade apparel industry. Shopping has now become a celebration and occasion like a feast Lifestyle and the concept of value for money is picking up. It is the combination of changing demographic structure and psychology that is making the consumer indulge more. The constant changes in business world reflect on a wide range of factors. These changes are due to external factors such as changing markets and technologies, changing demographic structures of workforce, changes in organizational contexts of work
A Study on Expectations of Rural Consumer Towards Organized Retailing 129
as well as changes in the structure of work itself. The changing trends in the organized retail sector are aiding and abetting the growth. The Indian retailing industry which was traditionally dominated by small, family-run stores seems to have finally come to mature.
Evolution of Retailing in Readymade Garments in India

According to an article published in the Stitch Times, 2010, the classification of Retail Evolution in India appears like this; Initiation Pre 1990s Conceptualization 1990 2005 Retail Expansion 2005 through 2010 Consolidation and Growth 2010 onwards
Retail Initiation
This phase was essentially dominated by manufacturers establishing their presence in Retail like Bombay Dyeing, the Raymond Group, the S Kumars Group.
Retail Conceptualization
This time around it was not the manufacturer looking for an alternative sales channel, but pure-play retailers who entered the retail market, to expand panIndia.
Retail Expansion
This is perhaps the most active phase of the Indian retail industry in terms of growth, entry of new players and development of new formats.
Retail Consolidation and Growth

We are currently in this phase. The organized retail sector witnessed 11% decline in sales in 2008.
ROAD AHEAD
According to industry experts, the next phase of growth is expected to come from rural markets, with rural India accounting for almost half of the domestic retail market, valued over US$ 300 billion.
Number of shopping malls is expected to increase at a CAGR (cumulative annual growth rate) of more than 18.9 percent from 2007 to 2015. Rural market is projected to dominate the retail industry landscape in India by 2012 with total market share of above 50 percent. Driven by the expanding retail market, third party logistic market is forecasted to reach US$ 20 billion by 2011.
RURAL RETAILING: AT A GLANCE

Rural retailing consists of the sale of goods or commodities in small quantities directly to consumers in rural/semi urban markets. Rural India accounts for roughly 70% of the population. Almost 6, 27,000 villages are home to 790 million Indians today. At present, 15% of the organized retailing takes place in Indias rural areas. It speaks of the high unexplored potential in rural markets. The good thing is that the retail focus has already shifted to the rural areas.
FEW FACTS ABOUT RURAL INDIA

According to the NCAER study, there are almost twice as many lower middle income households in rural areas as in the urban areas. At the highest income level, there are 2.3 million urban households as against 1.6 million households in rural areas.
OPPORTUNITY TO THE MARKETERS

The above figures are a clear indication that the rural markets offer the great potential to help the India Inc which has reached the plateau of their business curve in urban India to bank upon the volume-driven growth.
Large and Scattered Market

The rural market of India is large and scattered in the sense that it consists of over 63 crore consumers from 5,70,000 villages spread throughout the country.
Major Income from Agriculture

Nearly 60% of the rural income is from agriculture. Hence rural prosperity is tied with Agricultural prosperity.
The rural bazaar is booming beyond everyones expectation. This has been primarily attributed to a spurt in the purchasing capacity of farmers now enjoying an increasing marketable surplus of farm produce.
NEED AND OBJECTIVE OF THE STUDY

From the above discussion, it can be inferred that marketers need to be aware of the rural consumers needs and expectations from the product. More specifically, the objectives of the study are: To analyze the expectations of Rural consumers for readymade apparels from organized retailing. To study the strategies adopted by organized retailers to retain their rural customers. To offer useful marketing implications for apparel manufacturers.
REVIEW OF PAST STUDIES

Lalwani (2010) in his study suggested that the current corporate world is all about making ones presence felt in the cutthroat competition in the retail outlet of the product. Krishan (2010) found that we have entered the 21st century at a time when the demography of our population is changing significantly to drive organized retail growth. India now has a large young working population with a median age of 24. The article published in Insider Fashion (2010) states that the retail scenario in readymade garments industry is unique in India. Much of it is in the unorganized sector. Comparing with the unorganized garments sector, organized retail, today holds only a fraction (6%) of the market share potential in India. Sandeep (2010) in his article has suggested about understanding the buying behavior of the consumers towards FMCG products in rural market. The Main objective of the article was to understand the demand pattern of FMCG products in the rural market. In his findings he suggests that the demand of a product is also affected by its life cycle. Jindal, President of ASSOCHAM found that the size of Organized Retail in India will exceed US$22 bn mark from current level of about US$4 bn with its space requirement touching over 220 mn sq. ft., by 2010, it has been stated that approx. 40mn sq. ft. is currently generating a business of about US$4 bn in organized retail.According to the Jindal, the total retailing size in India is currently
estimated at US$16 bn of which organized sector accounts for only 25% market share and remaining 75% is in the unorganized sector. Economic Times (2009), Article states that a new focus on the readymade retail sector has attracted attention in recent days. Top exporters have introduced their own brands and are aggressively positioning themselves within segments of the domestic market. Bisht (2008) in her article has studied about a great success story of ITC with its groundbreaking e-Choupal initiative, whereby local internet kiosks link farming communities with global markets by providing information on everything from comparative crop prices to weather forecasts. Sharma (2006) in his article, discussed about the meaning of Retailing and current scenario of retailing in india.He also discussed about the key challenges which are faced by this industry like location,merchandise, pricing, audience. Forney (2005) examined in his study that Emotion that encompasses affect and mood is an important factor in consumer decision making. Typically, emotion is classified into two orthogonal dimensions (e.g. positive, negative).
FINDINGS AND DISCUSSION

One can infer from the above picture that the rural retailing has wide opportunities and scope for the entrepreneurs to enter. It offers an opportunity for a large player to build a Rs. 40,000 Cr retail business spanning multiple categories by 2015 (at current prices). It is a little known fact that, while 25% of the rural population is not engaged in agriculture, it earns 50% of the rural income. The retail market is the next growth frontier for corporate India. Definitely there is lot of money in rural India. But there are hindrances at the same time. The greatest hindrance is that the rural market is still evolving and there is no set format to understand consumer behavior. Lot of study is still to be conducted in order to understand the rural consumer. However, to capitalize on the opportunity, a player needs to be aggressive in its outlook and build scale quickly.
IMPLICATIONS
From the above said observations, the following implications are worth consideration for Retail Marketers for Readymade apparel. In order to capture the rural areas, retailers dealing in readymade apparels should develop specialized & mature service standards. Retailers should develop emotional affinity with the customers beyond product and price.
Customer awareness level of new entrants in Retail industry is very low, so with the help of media, they can capture the untapped market. It is better if they use advertisements in local language. Brain storming session should be adopted in retail stores in order to motivate & retain their employees. Pricing is the major element for rural marketing, so cheaper price product is affordable for rural people because rural people are highly price conscious for readymade apparels. Quality standard is a significant consideration in rural market. Retailers should make effective Distribution channel and make an opinion leader for every village.
REFERENCES
Bisht Renuka (2008), Ab Har Kissan Ho Kamyaa, Oct 12, accessed from fmcgmarketing.blogspot.com on 27 Oct 2010. Forney, J., Gopinath, M., Nyer, P. (2005), The Role of Emotions, Accessed from www.slideshare.net. India Infoline News Service (2009), Organized Retail in India will top US$22 bn by 2010ASSOCHAM. Kumar Krishan (2010), Study of Rural Consumer Behavior towards Rural Retail Stores accessed from www.skylinecollege.com on 21 Nov 2010. Lalwani & Manoj Kumar (2010), A study On Customer Expectations in terms of service From Organized Retailers Especially in Pantaloons Kanpur, Jan 23 accessed from www.docstoc.com on 27 Nov 2010. Sandeep, K. (2010), Buying Behavior of FMCG Products in Rural Area, Accessed from www.skylinecollege.com on 21 Nov 2010. Sharma, R. & Shymlal (2006), Indian Retail Industry: Current Scenario, accessed from www.indianmba.com on 27 Nov 2010. Sridhar, V. (2006), The Realities behind Retailing, Frontline, vol. 23, Issue 02, 2006. Verma, N. (2010), Organised Retail in Rural India, accessed from www.indianmba.com on 27 Nov 2010.
Web Links
1. www.indiaonestop.com/retailing
2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.
www.Financialexpressonline.com www.thehindubusinessline.com www.domain-b.com/industry/retail http://retailmantras.blogspot.com/2009/06/prospects-in-rural-india.html http://www.financialexpress.com/section/Retail/103/ http://www.indianmba.com/Faculty_Column/FC839/fc839.html http://toostep.com/insight/rural-retailing-in-indiachallenges-opportunities http://cs.stanford.edu/people/thathoo/retail.pdf http://retailguru.blogspot.com/2006/02/indian-retail-industry-insights.html http://www.brandchannel.com/papers_review.asp?sp_id=1319 http://www.ehow.com/how-does_5463332_purchasing-process-ruralconsumers.html http://www.emeraldinsight.com/journals.htm?articleid=1711303&show=pdf www.articlemark.org:15emerging-market-priorities-for-global-retailers.pdf (application/pdf Object) http://w ww.fibre2fashion.com/industry-article/pdffiles http://www.articlesbase.com/publishing-articles/retail-industry-inindiachallenges-opportunties-and-strategies-158550.html#ixzz16q9pFVka
A Study of Ethics in Accounting and Finance of the Corporate World

Sai Krishna G. and Prasanna Kumari B.1
Department of Commerce, Auroras Degree College, Chikkadpally, Hyderabad 1 Department of Academics, Auroras Business School, Punjagutta, Hyderabad
E-mail: saikrishnag@adc.edu.in; prasannakumarib@absi.edu.in
INTRODUCTION
The nature of the work carried out by accountants and auditors requires a high level of ethics. Shareholders, potential shareholders, and other users of the financial statements rely heavily on the yearly financial statements of a company as they can use this information to make an informed decision about investment. They rely on the opinion of the accountants who prepared the statements, as well as the auditors that verified it, to present a true and fair view of the company, Knowledge of ethics can help accountants and auditors to overcome ethical dilemmas, allowing for the right choice that, although it may not benefit the company, will benefit the public who relies on the accountant/auditors reporting Ethics in accounting and finance is of utmost importance to accounting professionals and those who rely on their services. Certified Public Accountants (CPAs) and other accounting professionals know that people who use their
services, especially decision makers using financial statements, expect them to be highly competent, reliable, and objective. This study has been taken up with the following objectives: To understand the role of Ethics in Accounting and Finance in the corporate world. To study the reasons of deviant behavior in ethical aspects in accounting and finance of the corporate world.
RESEARCH DESIGN
To understand the various reasons of unethical behavior and to receive suggestions to safeguard from these situations a well administered questionnaire was administered to the focus group. Questionnaire is divided into sections calling it section A consisting of questions of finding reasons for unethical behavior in accounting and section B asking for various suggestions to safeguard ethical behavior of accounting. The sample size considered here is 60 and it is random sampling. But due care is taken to administer this questionnaire only to the employees(focus group) who are in the position of financial advisors, analysts, accountants, Finance departments, auditors and Chartered accountants. All the employees and professionals considered for the study has minimum of five years experience in the field accounting.
INFERENCES
Unfortunately, there are several reasons to consider which action could be unethical in the preparation of financial information. The most obvious reason may be simply for their own interests, greed. An accountant may decide to work for a company, even though there may be a conflict of interest. If the accountant has money or a significant stake in the company, he or she may not prepare the perfect individual certain financial companies statements. Finally, and perhaps the most common form of unethical behavior, is the failure of an accountant for a detailed examination of the detailed analysis in the preparation and review of financial information. There are many people who take shortcuts in life to be preferred, and frankly, that is simply not acceptable if likely to prevail in the professional manner. Majority of the focus group have given the reasons of the unethical behavior of accounting as follows:
A Study of Ethics in Accounting and Finance of the Corporate World 137
Greed or Self Interest

Entrepreneurs strive for success and some are very opportunistic. The power game and short-term tactics are important instruments they may use, or misuse, in business competition. Entrepreneurs want to succeed, the last thing they want to do is fail. Entrepreneurs will consequently try to avoid failure by virtually all means open to them. Nevertheless, they may be confronted with a crisis situation, where the life of the company is at stake. The well established company, Enron, which was once ranked by Fortune as the Most Innovative Company in America faced bankruptcy and thus downfall of Enron. Therefore failure of Enron is due to greed for more money by the managers like Jeffrey Skilling who even received punishment of 24 years of Imprisonment.
Window Dressing
Window dressing is a form of creative accounting involving the manipulation of figures to flatter the financial position and profitability position of the business so that it serves the interest of the people who prepare accounts rather than those for whom the accounts are prepared. It is pointed by the finance and accounting professionals that various forms of window dressing like resorting to short term borrowings just before the date the balance sheet is prepared, resorting to change in the methods of valuation of stocks and impact the profits of the company. However it is to observe that such a practice is unethical and the organizations may be successful in the short run but in the long run they suffer. It was pointed by accounting professionals that they are advised by the Directors and other senior officials of the organization to change the figures of financial statements and in some cases the share holders of the company pressurized them to change the figures of financial statements so that the value of shares rises up.
Lack of Ethical Training Programmes

The employees of the organization are not aware of companys code of ethics, ethical decision making models and often are confused when confronted with any issue which is ethical but is in conflict with legality. In most cases the employees are in ethical dilemma. The employees are to be trained to reject unethical actions.
Lack of Supervising or Auditing

The accounting professionals are self satisfied and are not competent. This may be mainly because they lack in solid ethical frame work, and even the push from
the managers affects the accountants ability to work. When the managerial persons make few wrong decisions which may lead to losses to the company, they try to cover up by hiring outside accountants to deal with the off-balanced financial statements. Therefore, the environment of the organization leads to the unethical behavior of accountants.
Nominal Attempt is Applied for Resolving Conflict in Accounting with Fundamental Principles
While evaluating compliance with fundamental principles finance and accounting professionals are confronted with ethical conflict in application of principles. In such cases a little or no attempt is made in several organizations in resolving such conflicts.
Corporates of Today are Emphasizing on Short-term Results

Several companies in the world concentrate on short term results which lead to down fall of several giants like Enron and World com.
Ignoring Small Unethical Issues

It is pointed out by many that in several organizations minor lapses are ignored. Therefore, persons at work place indulge in minor lapses in the initial stages but it may later lead to committing colossal mistakes.
Conflict of Interests
In all actions relating to business there is a contradiction between company interest and individual interest. Some external parties try to use this dilemma to obtain better conditions for their organizations by giving some personal advantage to the contract person. Thereby unethical behavior results in work place in such cases.
Economic Cycles
During the period of prosperity the performance of the organizations will be good, but during adverse economic cycles the performance of the organizations will not be so good. Therefore, under such circumstances the organizations may resort to unethical practices to report good performance even during the slack period. At times of difficulty unfair attitudes multiply rapidly in business.
Lack of Adherence to Accounting Rules

In the era of globalization accounting rules are changing faster than ever before. The rules have become more complex and it is very difficult to identify any deviations from the complex principles and rules. Therefore, it promotes unethical behavior.
Safeguards Suggested by the Focus Groups

The target group has suggested few safeguards for securing the organizations accounting in the reference to the questionnaire administered. They are: Policies and procedures to implement and monitor the quality of employee performance. Several organizations are having policies to train and motivate employees towards ethical behavior. Employees are to be trained in the above direction. Organizing training programmes in accounting concepts and discussing few cases openly to make the employees understand how to detect the frauds. Strong internal controls: Strong internal controls are a critical part of any organizations continued growth, performance and success. Without effective internal control systems organizations may be at risk in variety of areas, fraudulent practices, and much more. Stricter rules must be enforced and imposed so that everything will be in order. Initiate appropriate disciplinary process. It is the duty of top management in any organization to ensure that employees are behaving ethically by encouraging, rewarding, enforcing and leading by ethical behavior. Timely communication of the policies and procedures to the employees is to be ensured. Resolve conflict of the accounting with principles of accounting that with greed or self interest.
SUGGESTIONS
Though the study has already listed out the suggestions of the focus group still the authors of this articles has few suggestions to make further and they are: Companies should focus on long term results of company than insisting on short-term. Ethical environment should be developed and encouraged by the company. Induction of an employee should insist on ethical behavior of accounting and what are the ways, rules and procedures for the fair accounting.
Auditing should be done perioridically with the only motto of companys interest than looking into self interest. Corporate Social responsibility programmes should also include ethics in accounting as one of the focus area. Last but the least ethics in accounting and its importance should be taught to the students at graduation and b-school students.
CONCLUSION
Ethics should be included as the most important component in accounting than only looking for profits. Managers have to realize that ethics goes beyond the strict requirements of law. What business needs is real and effective business ethics. Ethical attitude is required at all levels of the organization more so in accounting an finance professionals. The ethical management does not confine itself to strategic issues but also small practical matters of day to day business life. In todays society, the accounting profession has experienced numerous challenges in an attempt to act in ethical ways with regards to accounting principles and business records.
REFERENCES
AI CPA Code of Professional Conduct. (1988). Jersey City, NJ: American Institute of Certified Public Accountants Bowie, Norman, Challenging the egoistic paradigm, Business Ethics Quarterly, 1991. Accounting Ethics: A Practical Guide for Professionals. Contributors: Philip G. Cottell Jr. - author, Terry M. Perlin - author. Publisher. Buchholz, Rogene and Rosenthal, Sandra, Toward a contemporary conceptual framework for stakeholder theory, Journal of Business Ethics, 2005, 58, pp. 137-148. Business Ethics A philosophical Reader, by Thomas I. White - Internal auditing The Practice of Modern Internal Auditing. Chatfield, Michael, A History of Accounting Thought, (Hinsdale, IL: The Dryden Press, 1974) Coenen, T. (2008). Essential of Corporate Fraud. Wiley. Ferrell, O., Fraedrich, J., & Ferrell, L. (2000). Business Ethics. Houghton Mifflin Company. Fassin, Yves: 2000, Innovation and Ethics Ethical Considerations in the Innovation Business, Journal of Business Ethics, 27(12), September 2000, 193203.
Gellerman, Saul W.: 1986, why good managers make bad ethical choices, Harvard Business Review, July August 1986 in Harvard Business Review on Corporate ethics. Hanson and Brady: in A Question of Ethic, Stanford Business School 75th Anniversary Celebration, in Stanford Business, November 2000. Smith, N. Graig and Michelle Quirk: 2004, From Grace to Disgrace: The Rise and Fall of Arthur Anderson, Journal of Business Ethics Education, 1(1), June 2004.
Emotinal Intelligence at Work: A Theoretical Framework

Anandita Tyagi and Shubhra Garg1
Institute of Management and Research 8th Mile-Stone, Delhi-Meerut Road, Duhai, Ghaziabad 1 M.M.H. College, Ghaziabad
E-mail: anandita_tyagi@rediffmail.com; shubhragarggupta@gmail.com
INTRODUCTION
Dont forget that little emotions are the great captains of our lives. Vincent Van Gogh Imagine the consequences for a working group when someone is unable to keep from exploding in anger or has no sensitivity about what the people around him are feeling...When emotionally upset, people cannot remember, attend, learn, or make decisions clearly. (Goleman, 1995, p. 149) The world of work is changing to such an extent that pervasive change can be seen in the kinds of work people are doing, they way they are doing it. These changes are an indication of what is expected of people in the new world of work. While dealing with the process of change in an organization a lot of emotions get generated which may range from very positive to very negative (Singh, 2005). This requires ability on the part of both the employer and the employees to
Emotinal Intelligence at Work 143
perceive and understand the emotional impact of change on self and others. To be effective in helping their organizations manage change, leaders should be aware of and manage feelings of anxiety and uncertainty of their employees (Bunker, 1997). They also should be able to appreciate the emotional reactions of other employees and help them to cope up with change. Besides the leader, the other members of the organization should be also able to monitor and manage their own emotional reaction as well as of their colleagues. Emotional intelligence calls for recognizing and understanding of these issues in organizations. It calls upon the employees to increase their emotional selfawareness, emotional expression, creativity, increase tolerance, increase trust and integrity, improve relations within and across the organization and thereby increase the performance of each employee and the organization as a whole. Emotional intelligence is one of the few key characteristics that give rise to strategic leaders in organizations.
WHAT IS EMOTIONAL INTELLIGENCE?

Emotional Intelligence is the ability to use emotions effectively and is emerging as a critical factor for sustaining higher performance. Salovey and Mayer (1990) described emotional intelligence as a form of social intelligence that involves the ability to monitor ones own and others feelings and emotions, to discriminate among them, and to use this information to guide ones thinking and action. Goleman proposes that cognitive skill can help you get a job in a company, but emotional skill helps you grow in the job once youre hired. Daniel Goleman defines emotional intelligence as: The capacity for recognising our own feelings and those in others, for motivating ourselves, for managing emotions well in ourselves and in our relationships. (Daniel Goleman, Emotional Intelligence Why It Can Matter More Than IQ). Martinez (1997, p.72) refers to emotional intelligence as being: an array of non-cognitive skills, capabilities and competencies that influence a persons ability to cope with environmental demands and pressures (cited in Dulewicz and Higgs, 2000, p. 342). Mayer and Cobb, 2000 explain that Emotional intelligence consists of these four branches of mental ability that is Emotional identification, perception and expression, Emotional facilitation of thought, Emotional understanding and Emotional management. According to Mayer and Salovey (1997), emotional intelligence reflects not a single trait or ability but rather a composite of a number of abilities hypothesized to contribute to the accurate appraisal and expression of emotion in oneself and others, the effective regulation
of emotion in self and others, and the use of feelings to motivate, plan, and achieve in ones life (Mayer & Salovey, 1997; Salovey & Mayer, 1989-1990, p. 185). Emotional intelligence is a form of social intelligence that involves the ability to monitor ones own and others feelings and emotions, to discriminate among them and to use This information to guide ones thinking and actions (Salovey & Mayer, 1989-1990, p. 189). This definition is attractive because it refers to a form of reasoning that takes emotions into account and reflects heightened emotional or mental abilities (Mayer & Salovey, 1997, p. 5). Intelligence is inferred from the recognition and use of ones own and others emotional states to solve problems and regulate behaviors (Salovey & Mayer, 1989-1990, p. 189). The conceptualization combines the ideas that emotion makes thinking more intelligent and that one thinks intelligently about emotions, thus providing the necessary connection between emotion and intelligence (Mayer & Salovey, 1997, p. 5). Emotional intelligence involves the ability to perceive accurately, appraise, and express emotion; the ability to access and/or generate feelings when they facilitate thought; the ability to understand emotion and emotional knowledge; and the ability to regulate emotions to promote emotional and intellectual growth. (Mayer & Salovey, 1997, p. 10)
EMOTIONAL INTELLIGENCE AT WORKPLACE: EMOTIONAL TALENT CANT AFFORD TO WASTE

Can emotional intelligence predict productivity? There is a good possibility that it can because general intelligence accounts for only 10% to 20% of success in academic and occupational areas (Gardner, 1995). This means that other variables are responsible for the other 80% to 90%, thus allowing for some predictive value for the concept of emotional intelligence (Gardner, 1995). This suggests that if general intelligence has not been very predictive of success, then other factors would differentiate the potential productivity of one person from another. To rise higher in ones professional competence at the workplace, it is not just essential that individuals are good in their jobs. They are required to be more positive, approachable, warm, empathetic and optimistic. Goleman (1998) states that Emotional intelligence matters twice as much as technical and analytic skill combined for star performances. And the higher people move up in the company, the more crucial emotional intelligence becomes. The emotional intelligence of the person which include his ability to restrain the negative feelings and focus on positive feelings plays an important role in determining his success. Goleman (1998) focused on the need for emotional intelligence at work, an area often considered more head than heart. The notion
does not remain limited to the managers and leaders of the organization but any job that requires dealing with people would require the input of emotional intelligence. Also, whereas IQ is relatively fixed, emotional intelligence can be built and learned. Companies can test and teach emotional intelligence, and many employers are already beginning to do so. Emotions have an impact on everything that people do. On the one hand, emotions can lead to an increased morale amongst employees, but on the other hand, emotions can also prove to be destructive. Negative emotions, such as fear; anxiety; anger and hostility, use up much of the individuals energy, and lower morale, which in turn leads to absenteeism and apathy (Bagshaw, 2000). According to Klausner (1997) an individuals emotional intelligence can be seen to dictate interpersonal relationships. Despite this, many managers in the workplace would rather steer away from dealing with emotional issues. Research by Cooper (1997) shows that emotions that are properly managed can, and do, have successful outcomes. Carefully managed emotions can drive trust, loyalty and commitment as well as increase productivity, innovation and accomplishment in the individual, team and organisational sphere (Cooper, 1997). Several authors (Cooper and Sawaf, 1997; Salovey and Sluyter, 1997; Goleman, 1998) suggest that emotional intelligence is essential for effective leadership. It is believed that even if one has the best training in the world, as well as a high intelligence level, without emotional intelligence, the person would still not make a good leader. It should however be noted that although intelligence quotient (IQ) and emotional intelligence are two separate constructs, they do work in combination. Studies conducted by Goleman (1998) have shown that emotional intelligence is far more important at all levels in the workplace than technical skills and IQ. Studies show that emotional intelligence facilitates individual adaptation and change (Quy, 1999:325). Other research by Schutte, Malouff, Hall, Haggerty, Cooper, Golden and Dornheim (1998) shows that emotional intelligence is associated with affective outcomes such as greater optimism, less depression and less impulsivity. Emotional intelligence has been found to be positively linked to task mastery and life satisfaction and negatively linked to symptoms of depression (Martinez-Pons, 1997). Kelley and Caplans (1993) study at Bell Laboratories provides support for the ability of emotional intelligence to differentiate between high and average performers in the workplace (Dulewicz and Higgs, 2000). There has been an increase in the exploration of emotional intelligence and its potential benefits for both the individual and the organization. Downing (1997) points out that there
has been a growth in interest in emotions and that this is due to the increasing volatility and change that happens in the organizational setting, and that these changes are frequently associated with emotions. It is for this reason that it is becoming increasingly important to explore emotions and emotional intelligence in the workplace. Cooper (1997:31) quotes the former leader of an executive team at the Ford Motor Company, Nick Zenuik, as saying Emotional intelligence is the hidden competitive advantage. If you take care of the soft stuff the hard stuff takes care of itself. This sentiment has been shared in studies conducted by authors such as Goleman (1996; 1997), Martinez (1997) and Harrison (1997). Interpersonal facilitation pertains to interpersonally oriented behaviors that contribute to organizational goal accomplishment (Van Scotter & Motowidlo, 1996, p. 526). Emotional intelligence may contribute to the quality of peoples relationships at work because emotions serve communicative and social functions, conveying information about thoughts and intentions, and helping to coordinate social encounters (Keltner & Haidt, 2001). Emotion-related abilities should help people choose the best course of action when navigating social encounters. The ability to decode facial expressions of emotion can help one to evaluate how other people respond to ones words and actions, yielding important information for adjusting ones behavior (Nowicki & Duke, 2001). The ability to use emotions to guide thinking can help one to consider both emotions and technical information when evaluating an interpersonal problem. The ability to manage emotions should help individuals experience and express emotions that contribute to favorable social encounters, in part through emotional contagion (Hatfield, Cacioppo, & Rapson, 1994). Despite important exceptions (Parrott, 1993), people are usually motivated to seek pleasant feelings and avoid unpleasant emotions. The ability to manage emotions can help people nurture positive affect, avoid being overwhelmed by negative effect, and cope with stress (Mayer & Salovey, 1997). Other emotional abilities, such as perceiving and understanding emotions, also contribute indirectly to the quality of emotional experience by helping people to identify and interpret cues that inform self-regulatory action. Therefore emotional intelligence should contribute to positive affect and attitudes at work.
DISCUSSION
Emotional Intelligence can be beneficial in many areas of life; it calls for the acquisition of certain emotional skills. However, the application of its usefulness has been most frequently documented in the professional workplace. Organizations not only deal with material but also deal with peoples. The trust
and credibility of a manager and the organization he or she is working will reflects its emotional intelligence level. Todays workplace emphasizes on better teamwork, flexibility and services. Emotional intelligence uniquely explained individual work performance (simulated) over and beyond the level attributable to general intelligence (IQ) (Thi Lam & Kirby, 2002). Feist and Barron, 1996 concluded that emotional and social competencies were four times more important than IQ in determining professional success and prestige. Emotional competency gives them a realistic confidence to perceive challenges. As a result of this, they constantly grow and improve their quality, quantity, speed and the capacity of work. Also it is found that the executives having high emotional intelligence show better quality, speed in work, more capacity of doing work as compared to their counter parts who are having low emotional intelligence. Study conducted by Goleman (1998) and Mayer, Selovey and Caruso (1998) also supports this result. They emphasize that emotional intelligence by itself is probably not a strong predictor of job performance, instead it Emotional Intelligence and Work Performance provides foundation for emotional competencies which are strong predictor of job performance. They are more creative and practical towards emotional prompts elicited from the inner self and the immediate environment and try to manipulate the ongoing environment to their advantage by reacting appropriately which enhances their ability to handle different jobs, they take much care in handling company, and also have a better planning ability. As they have developed an accurate and better vision for their task they are less dependable and are able to work properly even without supervision. Research has shown that the primary cause of failures among executives was their poor inter-personal relations at the workplace. Highly emotionally intelligent executives are more punctual and take maximum initiatives on the job, they put much amount of efforts to expend their job and have better work performance as compared to their counterparts. Executives, in particular, need high EQ because they represent the organization to the public, they interact with the highest number of people within and outside the organization and they set the tone for employee morale, says Goleman. The success of an individual working within an organization is a function of emotional intelligence. Much of this success depends on the abilities of individuals to motivate them and to accomplish tasks by forming teams from a loose network of fellow workers with specific talents and expertise. Leaders with empathy are able to understand their employees needs and provide them with constructive feedback.
Emotional Intelligence is increasingly relevant to organizational development and developing people, because the EQ principles provide a new way to understand and assess peoples behaviors, management styles, attitudes, interpersonal skills, and potential. Emotional Intelligence is an important consideration in human resources planning, job profiling, recruitment interviewing and selection, management development, customer relations and customer service, and more. Golemans has given an emotional competence framework model. Where emotional Competence is a learned capability based on emotional intelligence that results in outstanding performance at work. It leads to and based on emotional intelligence, a certain level of emotional intelligence is necessary to learn emotional competencies. For predicting the performance these competencies were needed to identify and measure. Emotional Intelligence by itself is probably not a strong predictor of job performance instead it provides a foundation for emotional competencies which are strong predictor of job performance. Emotional Intelligence and Work Performance provides foundation for emotional competencies which are strong predictor of job performance. They are more creative and practical towards emotional prompts elicited from the inner self and the immediate environment and try to manipulate the ongoing environment to their advantage by reacting appropriately which enhances their ability to handle different jobs, they take much care in handling company, and also have a better planning ability. As they have developed an accurate and better vision for their task they are less dependable and are able to work properly even without supervision. Is Emotional Intelligence important for success in work and in life. However, this notion actually is somewhat simplistic and misleading. Both Goleman (1998) and Mayer, Salovey, & Caruso (1998b) have argued that by itself emotional intelligence probably is not a strong predictor of job performance. Rather, it provides the bedrock for competencies that are. Goleman has tried to represent this idea by making a distinction between emotional intelligence and emotional competence. Emotional competence refers to the personal and social skills that lead to superior performance in the world of work. The emotional competencies are linked to and based on emotional intelligence. A certain level of emotional intelligence is necessary to learn the emotional competencies. For instance, the ability to recognize accurately what another person is feeling enables one to develop a specific competency such as Influence. Similarly, people who are better able to regulate their emotions will find it easier to develop a competency such as Initiative or Achievement drive. Ultimately it is these social and emotional competencies that we need to identify and measure if we want to be able to predict performance.
CONCLUSION
Emotional intelligence can harness emotions effectively, so that they play a part in business success. Emotions help humans adapt to the physical and social world. By combining social and emotional issues it has become possible to develop ways of achieving a competitive advantage in the business environment. Emotional intelligence can be linked to thinking on managerial competencies and as such Salovey and Mayer (1990) and Goleman (1995) argue that emotional intelligence provides the basis for the competencies that become the predictors of job performance and leadership. Also in line with research by Salovey and Mayer (1990), Goleman (1995) and Wolmarans (1998, 2001) suggests that emotional intelligence can be seen to be an important indicator of a persons ability to succeed. It is clear that those organizations that are successful in todays dynamic business world take a more proactive approach to developing a positive service climate. It follows that excellent service, with positive emotional content, is most likely to be facilitated by employees who are emotionally self aware and who understand others on a more emotional level. Positive reinforcement of an emotionally intelligent environment will enable the development of a service oriented climate which is authentic in nature, and therefore more effective. The challenge is to see the value of emotional intelligence, then to begin using these skills on a daily basis. Everyone has emotional intelligence for most of us, its an underdeveloped area and an untapped resource. Peter Salovey said, Yes we can control emotions. The trick is doing it in the right way at the right time.3 Its not a new idea; around 350 BC, Aristotle wrote, Anyone can become angry that is easy. But to be angry with the right person, to the right degree, at the right time, for the right purpose, and in the right way-that is not easy. As Andrea Jung, Chair and CEO of Avon Products, says Emotional intelligence is in our DNA here at Avon because relationships are critical at every stage of our business. With over $8 billion in sales and $1.2 billion in profits, Jung is talking about an impressive strand of DNA. The bottom line: EQ is a Blue Chip investment.
REFERENCES
Bagshaw, M. 2000. Emotional Intelligence training people to be affective so they can be effective, Industrial and Commercial Training, 32(2): 61-65. Bunker, K.A. (1997). The Power of Vulnerability in Contemporary Leadership, Consulting Psychology Journal, 49 (2), 122-136. Cherniss, C. (2001). Emotional Intelligence and Organizational Effectiveness. In C. Cherniss & D. Goleman (Eds.). The Emotionally Intelligent Workplace (pp. 3-26). San Francisco: Jossey-Bass.
Cooper, R.K. 1997. Applying emotional intelligence in the workplace, Training and Development, 51(12): 31-38. Cooper, R.K. and Sawaf, A. 1997. Executive EQ: Emotional Intelligence in Leadership and Organisations. New York: Putnam. Cote, S. and Miners, C.T.H. (2006). Emotional intelligence, cognitive intelligence and job performance, Administrative Science Quarterly, 51(1), pp1-28. Downing, S.J. 1997. Learning the plot: emotional momentum in search of dramatic logic, Management Learning, 28(1): 27-44. Dulewicz, Higgs, M (2000), Emotional Intelligence, A Review and Evaluation Study, Henley Management College, Henley-on-Thames Dulewicz, V. and Higgs, M. 2000. Emotional Intelligence A review and evaluation study, Journal of Managerial Psychology, 15(4): 341-372. Feist, G. J., & Barron, F. (1996, June). Emotional intelligence and academic intelligence in career and life success. Paper presented at the Annual Convention of the American Psychological Society, San Francisco, CA. Gardner, H. (1995). Cracking open the IQ box. In S. Fraser (Ed.), The bell curve wars (pp. 23-35). New York: Basic Books. Goleman, D (1998), Working with the Emotional Intelligence, Bantam Books, New York, NY. , p. 317 Goleman, D. 1996. Emotional Intelligence. London: Bloomsbury Goleman, D. 1997. Beyond IQ: Developing the leadership competencies of emotional intelligence. London: Bloomsbury. Goleman, D. 1998. Working with Emotional Intelligence. New York: Bantam. Harrison, R. 1997. Why your firm needs emotional intelligence, People Management, 3(1): 41. Hatfield, E., Cacioppo, J.T., & Rapson, R.L. (1994). Emotional contagion. New York: Cambridge University Press. Kelley, R. and Caplan, J. 1993. How Bell Labs creates star performers, Harvard Business Review, 3(2):100-103. Keltner, D. & Haidt, J. (2001). Social functions of emotions. In T.J. Mayne and G.A. Bonanno (eds.): Emotions: Current issues and future directions (pp. 192213). New York: Guilford. Klausner, H. 1997. Review of Raising your Emotional Intelligence by Jeanne Segal [On-line]. Available: http://www.emotionalintelligence.org[accessed 12/04/ 2005].
Martinez, M.N (1997), The smarts that count, HR Magazine, Vol. 42 No.11, pp.72-8. Martinez-Pons, M. 1997. The relation of emotional intelligence with selected areas of personal functioning, Imagination, Cognition and Personality, 17: 313. Mayer, J. D., & Salovey, P. (1997). What is emotional inteUigence? In P. Salovey & D. J. Sluyter (Eds.), Emotional development and emotional intelUgence (pp. 3-31). New York: BasicBooks. Mayer, J.D., Salovey, P. and Caruso, D. 2000. Emotional Intelligence meets traditional standards for an intelligence, Intelligence, 27(4): 267-298. Mayer, J.D., Salovey, P., Caruso, D.R. (2004), Emotional intelligence: theory, findings, and implications, Psychological Inquiry, Vol. 15 No.3, pp.197-215. Mayer, JD., & Cobb (2000), Educational policy on emotional intelligence: Does it make sense? Educational Psychology Review, 12, 163-183. Nowicki, S., Jr. & Duke, M.P. (2001). Nonverbal receptivity: The diagnostic analysis of nonverbal accuracy (DANVA). In J.A. Hall & F.J. Bernieri (eds.): Interpersonal sensitivity: Theory and measurement (pp. 183-198). Mahwah, NJ: Erlbaum. Parrott, W.G. (1993). Beyond hedonism: Motives for inhibiting good moods and for maintaining bad moods. In D.M. Wegner & J.W. Pennebaker (eds.): Handbook of mental control. Englewood Cliffs, NJ: Prentice-Hall. Quy, N.H. 1999. Emotional capability, emotional intelligence, and radical change, Academy of Management Journal, 24: 325-345. Salovey, P. & Mayer, J.D. (1990). Emotional Intelligence. Imagination, Cognition and Personality, 9, 185-221 Salovey, P. and Sluyter, D.J. 1997. Emotional Development and Emotional Intelligence: Educational Implications. New York: Basic Books. Schutte, N.S., Malouff, J.M., Hall, L.E., Haggerty, D.J., Cooper, J.T., Golden, C.J. and Dornheim, L. 1998. Development and validation of a measure of emotional intelligence, Personality and Individual Differences, 25: 167-177. Seibert, S.E., Kraimer, M.L., & Liden, R.C. (2001). A social capital theory of career success. Academy of Management Journal, 44, 219-237. Singh, K. (2005). Organization Change and Development. Excel Books, New Delhi. Snarey, J. R., & Vaillant, G. E. (1985). How lower- and working-class youth become middle-class adults: The association between ego defense mechanisms and upward social mobility. Child Development, 56(4), 899-910.
Thilam, L., & Kirby, S. (2002). Is emotional intelligence advantage? The journal of social Psychology, 142 (1), 133-145. Van Scotter, J.R. & Motowidlo, S.J. (1996). Interpersonal facilitation and job dedication as separate facets of contextual performance. Journal of Applied Psychology, 81, 525-531. Zipkin, A. (2000, May 31). The Wisdom of Thoughtfulness. New York Times, pp. C1-C10.
Managing Stress Among Employees in Internationalisation of Business

Sonal Pathak
Manav Rachna International University, FBD
E-mail: pathak25@gmail.com
In the liberalized economic environment, Management of mixed culture is all set to play a highly critical role in the process of business development. While diversity is a problem to most organizations, successful corporations learn to manage to their full advantage. The whole purpose of managing diversity is to bring out the best of employees Talent, Abilities, Skills and Knowledge for the benefits of individual employee as well as the well-being of the organization. Many people think they understand stress. In reality, however stress is complex and often misunderstood. This paper examines the process of adopting new structures and work practices to manage stress among employee in international business that are radically different from those traditional minded management. Paper identifies the emerging challenges and discusses ways in which stress could be tackled. This discussion presents an approach to the need of organization to train their employees about stress and its usefulness to the well being of the corporation. Paper discusses about various areas of need for employees to understand and value the issues related to the stress. The Paper Highlights the role of managers as a regulatory bodies with their effective position in handling
the critical situation in the global business. Conclusively, the presented paper is an effort to review the concept of International business & management of stress which is a sensitive area in global human recourse management.
INTRODUCTION
Globalization has been identified by many experts as a new way to organize firms for their activities and as the emergence of human capital as the new stakeholder of the firm. The variety of experiences and perspective which arise from differences in race, culture, religion, mental or physical abilities, heritage, age, gender, sexual orientation, gender identity and other characteristics. Diversity is much broader. Diversity means human qualities that are different from our own and outside the groups to which we belong. Its important to understand how these dimensions affect performance, motivation, success, and interactions with others. Institutional structures and practices that have presented barriers to some dimensions of diversity should be examined, challenged, and removed. Globalization is quickly reshaping the international economic landscape, resulting in an increasing global supply of resources and capabilities.Extension of businesses across the national boundaries, there is a very common practice to see cross culture diversity at workplace. There are the benefits and the demerits of cross culture at the workplace.
MAJOR PROBLEM IN GLOBAL BUSINESS IS TO UNDERSTAND CULTURE

Culture can be understood as a shared set of attributes of any group, by which this group organizes its living together, its environment and its solutions to the questions of the society. What constitutes a culture, are displayed as: National character/Basic personality Perception Time concept Space concept Thinking Language Non verbal communication Values Behavior: norms, rules, manners Social groupings and relationships
Managing Stress Among Employees in Internationalisation of Business 155
Cultural Diversity
Cultural diversity is the variety of human societies or cultures in a specific region, or in the world as a whole. The term is also sometimes used to refer to multiculturalism within an organization. As well as the more obvious cultural differences that exist between people, such as language, dress and traditions, there are also significant variations in the way societies organize themselves, in their shared conception of morality, and in the ways they interact with their environment. Cultural diversity is tricky to quantify, but if proper management is provided to the employees, it can boost the morale of the employees. Otherwise employees can feel themselves under stress.
HOW CAN WE UNDERSTAND STRESS

Canadian physician Hans Selye in 1930 popularized the idea of stress. According to Selye, the General Adaptation Syndrome consists of three phases. Alarm Reaction Resistance Exhaustion
Fig. 1: Phases of General Adaptation Syndrome
Pestonjee has attempted/identified three important sectors of life in which Stress originates. These are Job and the organization The social sector
Intra-psychic sector In the figure below it can be seen that the magnitude of stress emanating from the stress to learner limit of the individual to handle these stress. This indicates a balanced state.
Fig. 2: Organization - Individual Normal Interaction Pattern
S.T.L STRESS TOLERANCE LEVEL

Several types of breakdowns and cracks are observable. If unchecked the situation this may culminate into intense phase as depicts the same stage.
STRESSORS OR LOADS
Fig. 3: Breakdowns and Cracks: Failure in Coping
MANAGEMENT AND DEVELOPMENT PROCESS OF STRESS Stress Among Employees

Stress has become a major concern of the modern times as it can cause harm to employees s health and performance. Tension refers to the mental pressure what people feel in their life. There is no one who is free of this disease. Our demands are constant and make pressure on human mind which produces tension. Tension is an unavoidable feature of our life.
Fig. 4: The Path of Stress Through in Organization
Potential Sources of Organizational Stress

There are three categories of potential stressors:
Fig. 5: Potential Sources of Organisational Stress
Factors Affecting Tension Among Employees

There are two primary factors that cause tension: (i) Organizational Events (ii) Life Time Events
Organizational Events
The factors effects the employees at their work place, which cause tension among the employees are: (i) Task Demands (ii) Physical Demands
(iii) Role Demands (iv) Interpersonal Demands
HOW OUR BUSINESS BENEFITS FROM DIVERSITY A Different Perspective

A different point of view can be invaluable to our business. The cultures that people come from can provide our company with opportunities that we may have not seen or known about. Ideas for products that cater to a particular culture or community of people can come from our employees. By hiring a diverse set of people we give our company a better chance to tap into markets that we might not have realized even existed. Diversity increases the interpersonal skills and the teamwork skills in the employees.
Diversity Helps When

We are marketing internationally. We are negotiating with people from abroad. We are launching a campaign to a new population (whether international).
MANAGING DIVERSITY
To address diversity issues, consider these questions: what policies, practices, and ways of thinking and within our organizational culture have differential impact on different groups? What organizational changes should be made to meet the needs of a diverse workforce as well as to maximize the potential of all workers. Most people believe in the golden rule: treat others as we want to be treated.. But when we look at this proverb through a diversity perspective, we begin to ask the question: what does respect look like; does it look the same for everyone? Does it mean saying hello in the morning, or leaving someone alone, or making eye contact when we speak?
Approaches to Manage Cultural Diversity in the Workplace

Organizations around the world has been realizing the cultural diversity. However it is not an easy task to manage employees with different cultural backgrounds. There are many different innovative ways that organizations have adopted to manage diversity. If Cultural diversity be managed effectively, there is a potential to use diverse workforce for organizational benefits. Thus components of Cultural
intelligence needs to be master to manage people and thus enable lateral and bottom up communication globally.
Important Aspects to Manage Organisational Stress

1. 2. 3. 4. 5. 6. 7. 8. Knowledge Skills Mindfulness Management Style Role of Management Redesigning the Task Analyzing the work roles and establish goals Include the Employee in career development.
TENSION CONTROLLING WORKSHOPS

Every responds to stress in a different way, it is only by understanding the nature of individual responses & it is necessary for psychological and physical well being of an individual. Strategies like tie management, body-mind and mind-body relaxation exercise, seeking social support help individual improve their physical and mental resources to deal with stress successfully.
Phases of Training Under Tension Controlling Workshops

There are three main phases when as employer goes under tension are:
Cognitive Preparation
In this phase, the employee try to understand about the tension and its effects as wear and tear. Employee share their experience with other the other ones which assures them that he is not the only one but all are facing the problems and suffering.
Skill Acquisition
This phase has a number of skills in tension management and widely used in application purpose. Actually these are the cognitive behavioral management techniques, time management skill, behavior regulation techniques, and diet and exercising techniques. Therefore, this helps in setting goals which is very important in tension management.
Application and Practices

The final phase, is the phase of tension inoculation training which means to provide an opportunity to the employee; to try on skill they learned in training and to employee them in real life situations. Once their goal is decided, they can learn to engage in self instruction and positive self-talk.
COPING STRATEGIES
Some strategies are acquired which may leave the major effects in relieving from conflicts and tension are known as coping. Thus, coping is used to denote the method of dealing with tension. Research have provided a tension comprehensive study of strategies for coping with tension under following categories: (a) Level Wise Distribution of Coping Strategies Individual Level Organizational Level (b) According to behavior, there are two types of coping strategy Initiative by Personal Department Coping with Job Tension via Job Enrichment
Individual Level of Coping Strategy

The coping strategy may be accepted by individuals. Thus, an individual coping deals with the more reactive nature. The major individual coping strategies yields the following:
Fig. 6: Individual Level Coping Strategies
Organizational Level Coping Strategies

The organization should strive to foster a culture that reinforces a healthy mix of work and nonworking activities.
Work Design Work schedules Culture Supervision
Stress Management programs Health promotions programs Other programs
Fig. 7: Organisational Level Coping Strategies
Also organisational Level Coping Strategies includes Organizational Environment, Organizational Role Clarity, Career Planning and Counseling.
EMPLOYEE ASSISTANCE PROGRAMS

The organization holding these tension controlling programs helps individuals in learning the dynamics of tension and the methods of overcoming its ill effects. Similarly, the organization can make arrangements for assisting individuals in overcoming their personal and family problems. The arrangements may include managing personal finance, dealing with social adjustment problems etc., The tension management plans should suit on unique situations and preferences.
Self Management
Self management activities are: Enhancing Self Awareness Maintaining Proper Nutrition Engaging in Regular Exercise Transition Between Home and Work
CONCLUSION
Thus we can say that diversity issues can not be ignored .consequences can include unhealthy tensions, loss of productivity because of increased conflict; inability to attract and retain talented people from various culture; complaints and legal actions; and inability to retain valuable employees, resulting in lost investments
in recruitment and training. Its important to understand how this diversity affects performance, motivation, success, and interactions with others. Institutional structures and practices that have presented barriers to some dimensions of diversity should be examined, challenged, and removed.
REFERENCES
Barsade, S. (2002). The ripple effect: Emotional contagion and its influence on group Behavior. Caplan, Organizational Stress and Individual Strain, A Social- Psychological Study of Risk Factors in Coronary Heart Disease among Administrators,Engineers and Scientists,(2002), Unpublished Doctoral Dissertation. Diversity in top management teams. Administrative Science Quarterly, 45, 802-836. Employee Development & Training classes and workshops. In L. Wei (Ed.), Miles, R.H. and Perreault, W.D. (1976). Organizational Role Conflict: Its antecedents and consequences. Organizational Behavior and Human Performance. Mitchell, T.R. and Larson, J.R. (1987). People in Organizations: An Introduction to Organizational Behavior.
Talent Acquisition and Retention to Gain Competetive Advantage

Savita Pal, Shalini Sheel and Shashank Goel
E-mail: savita_pal30@yahoo.com; sheel.shalini@gmail.com; shashanknikky2005@yahoo.co.in
CMD, Modinagar, Ghaziabad
Keywords: Talent Acquisition, Retention, Career Planning, Succession Planning, Organization Development, Performers
INTRODUCTION
Getting the best talent, and keeping the talent you have is becoming intensely competitive. Most corporate officers say that the biggest constraint to pursuing growth opportunities is talent. Before proceeding further, lets have a look at the following figures: It is estimated that at least 1/3 of business failures are due to poor hiring decisions and inability to attract and retain the right talent. The average cost of replacing a manager or professional is 1.5 to 3 times salary. The cost of working around an under-performer can run as high as six figures The cost of consistently failing to attract and retain good talent including declining productivity, morale, culture and reputation is inestimable. Each vacant position costs your organization Rs. 60,000 on average.
Talent Acquisition and Retention to Gain Competetive Advantage 165
The key to success in talent acquisition is the unique way that you are able to tap into the top performers who are not really looking for another job. They never read the traditional job ads or go to the job boards on the Internet.
LITERATURE REVIEW: ORIGIN OF THE CONCEPT OF TALENT ACQUISITION

Lets take a closer look at the way traditional recruitment is re-emerging as a broader talent acquisition concept An approach that is becoming more and more critical in the War for Talent. Just exactly how does this differ from plain vanilla recruitment? Well, in a considerable number of ways. The core concept of talent acquisition is to get away from the fill in the box thinking to one that is more pro-active and much closer to building the skill sets required to achieve business success. Traditionally, a recruitment need occurs when an individual either leaves or is promoted to another function. Thats when panic can set in, especially if no suitable internal solution is found, a situation that is becoming known as under the bus syndrome. Strong relationship building or networking skills are important here. Encouraging your own star players to identify other outside top performers is an extremely powerful tool that is being used more and more. Corporations are offering a wide range of rewards in order to get these names and then act on them. Once the talent has been identified, the next stage is to start building ongoing relationships and look for that all elusive trigger point in someones career that would get them to change jobs. This can be a number of things but it is often a negative experience or an outstanding opportunity. Gathering intelligence from their friends and from previous market research will help in uncovering exactly what excites top players. Money is of course essential in the talent acquisition quest, but its not the only element. Many corporations are using traditional job classification and job grading systems in order to remain competitive in the cash compensation side. Being able to mould an opportunity and make it exciting will also attract top performers. The work/life concept will also have an impact, a lot of corporations talk about this element but not many have fully embraced it.
TALENT MANAGEMENT TO GAIN COMPETITIVE ADVANTAGE

To gain Competitive Advantage and maximize business performance through Talent Acquisition and Retention Strategies, organizations need to focus on
aligning Talent Management with Business Needs and this can be done in following ways: Add value to your business by defining talent management Identify key stakeholders and their role in talent management Increase TM value to the organization by aligning and integrating talent initiatives Boost employee engagement through talent management Establishing the connection between talent management and organization development Establishing TM action planning as part of the business process Linking talent identification and action to all other processes Finding a system that can cope with this challenge! With Talent acquisition and retention of utmost importance, and a continued organizational focus on Growing their Own, the management of staff progression and movement across the organization becomes key to achieving strategy. How do you do this when managing staff across diverse geographical areas with multiple career opportunities? Here is the answer: Identifying future successors to key posts Ensuring succession planning is simple and widely understood Creating a stable workforce with clear competencies for key positions (supported by development initiatives for staff) Keeping employees engaged throughout their careers with robust career plans Fostering loyalty through internal branding Staying abreast of the latest compensation trends. Winning The War For Elite Talent By Building An Outstanding Employer Brand Organizations must take this opportunity to brainstorm with industry peers and experts on what your organization can do to cultivate the right perception of yourself as an employer. Following aspects need focus in this regard: Building an admirable reputation as an employer Establishing the link between product and employer branding Capturing the markets high potential employees by understanding their motivations
DESIGNING AND IMPLEMENTING A TALENT ACQUISITION AND RETENTION STRATEGY Strengthen Your Own Direct Reports
Becoming a great talent manager starts in your own back yard. Set high standards for the caliber of talent you will have on your team and take deliberate action to strengthen that group. Give the strong performers new challenges, greater responsibilities and the tasks they are most passionate about. Accelerate their development and do everything you can to keep them delighted and energized. Spend two-thirds of your coaching time on the A and B performers, rather than on the C performers, as can so easily happen. Face up to the difficult task of dealing with low performers. Tell them unambiguously that their performance is not good enough, and tell them exactly what they need to do to improve. Encourage and help them to improve. If their performance does not improve sufficiently, remove them from the position, either by finding them a different role that will allow them to succeed or by asking them to leave the company. A recent study published in Fortune magazine noted that the single greatest reason why unsuccessful CEOs fail is their inability to deal with poorly performing subordinates. While developing the people you already have, hunt for new talent to bring into your group. Look for high-potential people deep within your organization to promote. Look for high performers in other units and constantly scout your networks on the outside for highly talented people to bring into the company.
Establish a Talent Standard Sharp Difference Between Poor; Average and Excellent Performance is Creating a Benchmark for Evaluation and Promotion
If you are a leader of a large organization, you also have to extend your influence to the talent pool. Start by setting the gold standard for talent for your organization. Identify and articulate the characteristics and caliber of leaders that the organization should have. You model this every day through the quality of the people you hire, the quality of people you chose to keep in the company and standards you judge people against. But you should also explicitly communicate the type and caliber of managers you want to have in your organization.
Weave Development into Your Organization

Emphasis must be on the development of your people. Everyone in your
organization even if he/she cannot be a superstar can push the limits of what they can. Job experiences are critical in developing people. You can: Keep the learning curve steep: challenge managers with tasks they do not yet know how to do. Give people different kind of challenges. Give people high-octane special projects assignments: these assignments must require a variety of skills. Continuously stretch the boundaries of current jobs: challenge people to reconceptualize their roles, reorient their responsibilities. Let the individual define the potential he or she will contribute.
Influence People Decisions Far Down Your Organization

Defining the standard for leadership talent isnt enough, though. Leaders who manage talent well get directly involved in the hiring, promotion and firing decisions for many people as they possibly can. This doesnt mean that you necessarily make all the decisions on people two or three levels below you. But you should influence them by making sure that the talent standard is being used objectively and by contributing your judgment in a meaningful way.
Drive a Simple, Probing Review of Talent

Do you regularly discuss the talent in your company with the same rigour and intensity that you discuss the budget? An effective talent-review process has many important benefits. It is a direct way for a leader to build the strength of the talent pool deep in the organization. It imposes the discipline of having regular conversations and making decisions about people, some things that are easy to let slide. It is a way for the leaders to engage in discussion about the standard of talent they are seeking to build and how they should go about doing that.
Hold Managers Accountable for the Strength of their Talent Pools

Each unit- be it Product Division, Customer Service Division, Sales Force- Should set Specific talent strengthening objectives for the coming year. Assessing how well a manager delivers against those objectives will require judgment and ongoing discussions about how effectively the talent pool is being built.
CONCLUSION
Organizations who have more trustable environment acquire the talent easily. Loss of human assets, lower productivity, and lower performance levels are the negative results of high turnover. The management must provide good retention strategy to improve human assets. The only Intangible Asset found to predict the future financial performance of a firm is the firms retention rate for key employees. Creating and delivering a great employee value proposition is clearly the best way to retain the people. But most importantly, when the organization is successfully able to convey the message that it cares for employees, retention works best.
REFERENCES
Bassi, L. & McMurrer, D. (2006 April). Human capital and organizational performance: Next generation metrics as a catalyst for change. McBassi & Company white paper available online at www.mcbassi.com. Growing global executive talent: High priority, limited progress. (2008). Development Dimensions International (DDI) in cooperation with The Economist Intelligence Unit. Pittsburgh, PA: Development Dimensions International. Teng, A. (May 2007). Making the business case for HR: Talent management aids business earnings.HRO Today magazine.
WEBSITES
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. www.iimmblr.org.in www.coolavenues.com www.citehr.com www.google.co.in www.hrmreport.com www.linkedin.com www.slideshare.net www.patentfirstonline.in http://www.bpoindia.org/research/talent-acquisition-big-challenge.shtml http://www.expresstextile.com/20040401/oped01.shtml http://recruiterssworld.blogspot.com/2007/12/talent-acquisition-strategyand.html 12. http://ezinearticles.com
Glocal Approach to Entrepreneurship in Pune Auto-sector

Mukund Deshpande and Neeta Baporikar1
1
HNIRMW, Karve Nagar, Pune Doctoral guide, University of Pune
E-mail: mvdeshpande49@yahoo.co.in; neetajb@rediffmail.com
INTRODUCTION
The objective of the SME is to harness private interests to serve the public interest. Accruing fair returns for shareholders is another objective. The business environment in the globe is consistently changing with pace due to exchange of knowledge. Therefore more and more businesses are going global, to tune up with the shifting environment, as such; incredible movement, throughout the globe, en route to small and medium enterprises. Automobile business has enormously spread all over the world whilst Indian firms have been making an indelible impression on the global map for cost competitiveness, innovation and technology. The case discusses Auto Line Industries business expansion and marketing policies in India and examines how the Auto Line brand has become synonymous to automobile components in the country. While every company has been facing stiff competition in the recent years from world players Auto Line considers internationalization as a key for growth. The case also highlights Auto Lines policies to compete with global companies.
Glocal Approach to Entrepreneurship in Pune Auto-sector 171
LITERATURE REVIEW
Porter (1996), Competitive forces that affect marketing strategy, suggests that it involves the creation of a unique and viable position involving activities that are different from rivals and that this involves trade-offs in terms of resource allocation. Erkki Tuomioja (2001), Democracy is spreading across the world, but so is disillusion about its workings. The key to the paradox is globalization, says the Finnish Foreign Minister. Globalization is potentially positive, but to make the best of it a common approach is needed, rather than them and us politics. The EU in particular must face this challenge, if it is to deserve the loyalty of its people. Larry Bossidy and other (2004), Policy assumes a rightful place in the hierarchy of decision making when its part of business model integrated with realities of the external environment, the financial targets and the business operating, people and organizational activities. Forefront Identity Manager (2010), in designing business policy rules, discussed that while defining logical policy statements, in many cases, the collection of policy statements does not follow a specific format. For a policy to be meaningful, it is necessary to tie them to conditions that can occur in the business environment and provide the appropriate response to them: When <condition> happens, do <response>. This document refers to policy statements that follow this structure as logical policy statements.
Logical Policy Stateme Local Policy Statement Condition Response
Enter
State
Leave
Actions
Fig. 1: General Architecture/Format of a Policy Statement
In industrial movement new trends progressively registered to satisfy varying needs ensuing flexible production for diverse necessities of consumers. Table 1, gives a synoptic view of diverse policies that emerged in the businesses during last decade. It is the gist of data on entrepreneurship policy approaches.
Table 1
Synoptic approach Rational-Scientific Incremental approach Overhaul approach Public or civic policy Innovative flexible Joint working approach Improved delivery Public-private partnership Comprehensive approach Risk Managed approach Adversary approach Utilitarian Collaborative
DEBATE ON THE APPROACHES

Instruments scheduled in the Table 1 have been in vogue and recognized to be conventional approaches. Therefore, fairly impressive instruments are available for the growth of entrepreneurship but they are unilateral as they can tackle just one or the other situation. Although their utility can not be ignored, they lack in their competitiveness and effectiveness. At the firm level, competitiveness is the ability to sell products or services at a profit over a sustained period of time with competitors. A firm should have a competitive edge in marketing successfully with other global firms. As a result, entrepreneurship should be based on an instrument that is able to sell a broad-range of goods and services in international markets and attract efficiency-seeking investment from abroad.
RESEARCH OBJECTIVE
The objective of the study is to understand major factors and philosophy that made Auto Line Industries Pune settle on glocal approach.
METHODOLOGY
This is a case study approach to understand glocal instrument. This involved both primary and secondary data along with executive discussions. Evaluation of performance indicators, the philosophy and objectives of the Auto line Industry group formulated the approach to the study.
CRITERIA
A list of indicators that forms the criteria for the glocalization of the enterprise
are:- Glocal Philosophy of the group; Local-Productive skills in the autocomponents; Evidence of Orientation to the glocal market; Evidence of Glocal investments; Evidence of substantiation of Global-Customers; Glocal presence; Glocal coalitions.
THE GLOCAL APPROACH

The glocal approach in its customary connotation differentiates it from the global enterprise as: Global enterprise makes production in the origin country for the global market, for all the customers; the local aspect of the producer characterizes the offer, or in some local markets, after doing the opportune adjustments. Whilst Glocal enterprise makes production and brings its products in specialized niches of the global market if it is a local enterprise; the local aspect of the producer characterizes the demand. To be potentially glocalizable, the enterprise needs to select a proper goods sector, make available the product through production, maintain enterprise typology and provide organizational support system.
CASE OF AUTO-LINE INDUSTRIES LTD. PUNE

Auto Line Industries, is a company manufacturing automotive components at Pune in India. Mr. Shivaji Akhade & Mr. Sudhir Mungase promoted this venture with a view to enter into Automobile-Sector. The firm initially established its product line. Later, with slow but steady progress productively moved in higher levels of turnover that converted the small scale industry into SME, in 1996. Initial range of products included sheet metal components, sub-assemblies and assemblies for large OEMs in the Automobile Industry. The company, in course of time, by realizing its ability decided to market its expertise globally to increase market share. The promoters contemplated that there existed great potential in alliances that could successfully be adopted to market the products globally. That was their first step in making the business global. The group faced multiple challenges on social, cultural and economic levels in implementing the idea. However through consistent motivation and patience they could carefully target prospective partners and today, through glocal approach, has grown into a medium sized company.
Evidence of Glocal Philosophy of the Auto Line Industries

Promoters philosophy always remained to establish a product base and make
progress. In keeping with the pace; the directors extended its philosophy to form value chain from manufacturing simple sheet metal to complex assemblies by providing design engineering, prototyping, tool making and mass manufacturing of critical components. Figure 2 shows, business process flow that typically exhibits glocal approach of the local enterprise.
Competitive-Edge 1. Materials Cost 2. Processing Cost 3. Low Overheads
NicheGlobal
Local Enterprise
Local-Skills Talent, Efficiency & Service
Competitive market, Demand Province, Global Customers
Local Product
Technology-Edge 1. R & Designing 2. Quality / Norms 3. CAD/CAM Glocal Approach of the Local-enterprise
Fig. 2: Business Process Flow of Auto Line Industry
The promoters mind set, later, leaned towards dream products to project Art to part manufacture-concept to mass manufacturing. They applied virtual reality technology in product design, so as to consistently run an innovation driven company, become global leader in the Design, Engineering and Manufacturing of Automotive Mechanical Systems. To achieve this goal, they extended and migrated into the fast lane without speed limits.
Growth of Glocal Products of Auto Line Industries

Auto Line industries consistently manufactured products with high precision in their local plant for sale to global customers. Acceptance of local products by global customers established glocal instrument. Table 3 shows a list of products manufactured by Auto Line Industries.
Table 3
S.No. 01 02 03 04 05 06 07 Product Types Small Assemblies Press Parts Stokota Exports Others Skin Panel as Aesthetics Exhaust Systems Large Assemblies Share of Production % 18 7 16 7 10 13 29
LEADS TO GLOCAL MARKETING The company initially emphasized on Indian market like Tata Motors, Mahindras, Bajaj Auto Ltd, Kinetic Engineering, Walker Exhaust, and FIAT etc. Progressive policy of the company consistently resulted into advancement and acquisition of diverse interests and marketing expansion in India, UAE, Africa, Europe and USA that establishes glocal instrument. The company developed competency through Tool Room, Design Engineering and Automated Mass Manufacturing. High quality products at competitive cost formed niche for the global market. Local employees exhibited their talents, efficiency with regularity in service to the clients. List of international customers like Volvo, Scania, MAN, Iveco, Renault, DAF Europe, FAW & Deng Fong in China substantiates glocal approach. GROWTH IN GLOCAL-PRESENCE AND COALITIONS Table 4, shows, some of the companies with whom the Auto Line Industries have entered into joint ventures/coalitions resulting into another evidence of glocal presence.
Table 4
S.No. 01 02 03 04 05 06 Name of the Global Company Western Pressings P Ltd Dimension Engineering Software P Ltd Detroit Engineered Products Inc US Based Union Auto Line Spare Parts LLC Joint Venture Zagato, Italy Stokota % Stake 100% 51% MOU-Signed 49% 60% 51%
CASE ANALYSIS AND FINDINGS

Evaluation of performance indicators has revealed that, the Auto Line Industries have been marketing local skills on the global map with a niche of low cost and high quality to satisfy the demand from global customers. The company has entered into joint ventures and has also acquired stake in many enterprises in the globe. That has brought mammoth growth of the local Pune based group. In order to establish glocal entrepreneurship therefore Auto Line Industries strongly satisfied the glocalization criteria.
IMPLICATIONS OF THE STUDY

With India being viewed as a test market for emerging marketing policies, analysts felt that the learning from these initiatives taken by Auto Line Industries would help in developing other industries for making a strong presence in multiple emerging markets in the globe. The case tries to dispel the myth that emerging business policies are only about devising policies to target the global markets. It discusses the issues and constraints in targeting niche in global market on the basis of the glocal instrument that is emerging rapidly on the changing scenario of Indian enterprises. It is also an eye opener of how local strengths can be exploited to meet the global competition.
REFERENCES
Antonio Foglio, Vaidotas Stanevicius, (2007), VADYBA/Management. 2007 m. Nr. 3-4 (16-17), pages 40 to 55. Erkki Tuomioja (2001), Democracy and Globalization, promoting a north south dialogue, http://www.Tuomioja.org Forefront Identity Manager (2010), Designing business policy rules, Microsoft TechNet, 31st March 2010. IMDR (2008), SME Marketing: Implication of small scale of operations for marketing strategy, Marketing Conference held at IES Management College, Bandra, and Mumbai in February, 2008. Julia Tagea, (2008), Glocal approach makes global knowledge local, Science communication, opinions, 10 April 2008 | EN, published on 13th Sept, 2010. Larry Bossidy and Ram Charan (2004), Confronting reality, Crown Business Publication, New York, page 88 Porter, Michael E (1996), What is Strategy, Harvard Business Review, NovemberDecember 1996.
Search Engine Optimisation (SEO) and Search Engine Marketing Experts, Glocal marketing approach, website accessed on 28th October-2010.Link, 2010, www.roi.com.au. Website www.autolineind.com. Website, India research, Tower Capital & securities (P) Ltd., March 22, 2007.
Forensic Accounting: Importance, Challenges and Scope for Advanced Researches in the Globalized Environment with Special Reference to India
Yogendra Nath Mann
Dr. Gaur Hari Singhania Institute of Management & Research, Jaykaylon Colony, Kamla Nagar, Kanpur
E-mail: yogendra_mann@rediffmail.com
Keywords: Globalization, Forensic Accounting, Forensic Investigation, Litigation Support, Investigative Accounting
INTRODUCTION
Forensic accounting has been defined as accounting analysis that can uncover possible fraud, that is suitable for presentation in court. Such analysis will from the basis for discussion, debate and dispute resolution. A forensic accountant uses his knowledge of accounting, law, investigative auditing and criminology to uncover fraud, find evidence and present such evidence in court if required to. The integration of accounting, auditing and investigative skills yields the specialty known as Forensic Accounting and it encompasses Litigation Support
Forensic Accounting 179
and Investigative Accounting. With a single clue or minor inconsistency, a forensic accountant can solve a fraudulent mystery.
A BRIEF HISTORY OF FORENSIC ACCOUNTING

Forensic accountants have been around for nearly 200 years. The earliest reference was found in 1824 in an accountants advertising circular in Glasgow, Scotland. These special accountants gave testimony in court and in arbitration proceedings. A Forensic Accountant is often retained to analyze, interpret, summarize and present complex financial and business related issues in a manner which is both understandable and properly supported. He can be engaged in public practice or employed by insurance companies, banks, police forces, government agencies and other organizations. In order to properly perform these services a Forensic Accountant must be familiar with legal concepts and procedures. In addition, a Forensic Accountant must be able to identify substance over form when dealing with an issue. Forensic accounting litigation services are the professional assistance accountants provide related to the litigation process. These services may involve accounting, financial, auditing, tax, quantitative analysis, and investigative and research skills, as well as an understanding of the legal process to provide assistance for actual, pending, or potential legal or regulatory proceedings before a trier of fact in connection with the resolution of a dispute between parties. Forensic auditing is a type of auditing that specifically looks for financial misconduct, and abusive or wasteful activity. It is most commonly associated with gathering evidence that will be presented in a court of law as part of a financial crime or a fraud investigation. The activity of forensic auditing depends upon the complexity of the entity: lesser complex and adequate complex entities. The main attributes of less complex entities are as under: 1. Use of entity-level controls to achieve control objectives. 2. Risk of management override. 3. Implementation of segregation of duties and alternative controls. 4. Use of information technology (IT). 5. Maintenance of financial reporting competencies. 6. Nature and extent of documentation. The major entity level controls can be stated as under: (a) Controls related to the control environment.
(b) Controls over management override; the companys risk assessment process. (c) Centralized processing and controls, including shared service environments. (d) Controls to monitor results of operations. (e) Controls to monitor other controls, including activities of the audit committee and self-assessment programs. (f) Controls over the period-end financial reporting process. (g) Policies that address significant business control and risk management practices.
Pervasive Control Deficiencies

(a) Ineffective control environment (considering the risk profile of the company). (b) Ineffective IT controls or information systems. (c) Pervasive lack of segregation of duties without appropriate alternative controls. (d) Frequent management override of controls.
Establishing Proper Environment

Principle 1
As part of an organizations governance structure, a fraud risk management program should be in place , including a written policy ( or policies) to convey the expectations of the board of directors and senior management regarding managing fraud risk.
Principle 2
Fraud risk exposure should be assessed periodically by the organization to identify specific potential schemes and events that the organization needs to mitigate.
Principle 3
Prevention techniques to avoid potential key fraud risk events should be established, where feasible, to mitigate possible impacts on the organization.
Principle 4
Detection techniques should be established to uncover fraud events when preventive measures fail or unmitigated risks are realized.
Principle 5
A reporting process should be in place to solicit input on potential fraud, and a coordinated approach to investigation and corrective action should be used to help ensure potential fraud is addressed appropriately and timely.
Forensic Audit Approaches

(a) Direct methods involve probing missing income by pointing to specific items of income that do not appear on the tax return. In direct methods, the agents use conventional auditing techniques such as looking for canceled checks of customers, deed records of real estate transactions, public records and other direct evidence of unreported income. (b) Indirect methods use economic reality and financial status techniques in which the taxpayers finances are reconstructed through circumstantial evidence.
Market Segment Specialization Program

The Market Segment Specialization Program focuses on developing highly trained examiners for a particular market segment. An integral part of the approach used is the development and publication of Audit Technique Guides. These Guides contain examination techniques, common and unique industry issues, business practices, industry terminology, and other information to assist examiners in performing examinations.
Minimum Income Probes

(a) For non-business returns, an agent question the taxpayer or representative about possible sources of income other than reported on the return. If there is no other information in the file indicating potential unreported income, the minimum income probe is met. (b) For taxpayers who are self-employed and file a Schedule C or F, an analysis is made of tax return information to determine if reported income is sufficient to support the taxpayers financial activities.
Cash T
A cash T is an analysis of all of the cash received by the taxpayer and all of the cash spent by the taxpayer over a period of time. The theory of the cash T is that if a taxpayers expenditures during a given year exceed reported income, and the
source of the funds for such expenditures is unexplained, such excess amount represent unreported income or possible fraud.
Source and Application of Funds Method (Expenditure Approach)

This technique is a variation of the net worth method that shows increases and decreases in a taxpayers accounts at the end of the year. The format of this method is to list the applications of funds first and then subtract the sources. If the taxpayers applications exceed his or her known cash receipts (including cash on hand at the beginning of the year), any difference may be unreported income.
Net Worth Method

The net worth method is a common indirect balance sheet approach to estimating income.
Bank Deposit Method

The bank deposit method looks at the funds deposited during the year. This method attempts to reconstruct gross taxable receipts rather than adjusted.
10 Steps to Follow when an Organization Finds or Suspects Fraud

1. Shut the door! Keep assets secure until you can provide appropriate longterm security. 2. Safeguard the evidence. Ensure that all records and documents necessary for an investigation remain intact and are not altered by you or anyone else. 3. Notify your insurer. Failure to notify may negate your coverage. 4. Call a professional. Do not confront or terminate the employment of a suspected perpetrator without first consulting your legal advisor. 5. Prioritize your objectives. Whats most important: punishment, loss recovery, prevention, detection of future occurrences? 6. Consider prosecution. Before you make the call, weigh the plusses and minuses and determine if your insurance company requires prosecution. 7. Terminate business relations. If the fraud is external, business relations with the suspect individual or organization should be terminated. 8. Seek advice and assistance. An important consideration is whether you have the knowledge and resources necessary to effectively manage the process.
9. Prepare a witness list. It is important that statements be taken before a party line can develop. 10. Consider the message. Whatever you do will affect future situations. Now may be the time to change the way your business operates.
Preventive Measures
1. Segregation of duties, mandatory vacations, and rotation of duties help prevent cash larceny. 2. Review and analyze each journal entry to the cash account. 3. Two windows at drive-through restaurants. 4. Signs: Free meal if no receipt. 5. Blank checks and the automatic check signing machine should be kept in a safe place from employees. 6. Pre-numbered checks should be logged and restricted to one responsible employee. Require two signatures on cashier checks.
Audit Steps
(a) Independently verifying customers who do not pay. (b) Reviewing write-offs. (c) Reviewing customers complaints. (d) Compare the checks on a sample of deposit slips to the details of the customers credits that are listed on the days posting to the customers account receivables. (e) Closely monitor aging accounts.
Interviewing Executives
One way to detect fraud is to interview company personnel. Some of the main aspects of interviewing executives are listed as under : 1. Explain the purpose of interview- need to assess risk and comply with audit responsibilities 2. Inquire whether they are aware of any instances of fraud within their organization- Do they have reason to believe that fraud may have occurred or is occurring?
3. Has the CEO or CFO ever approved an accounting treatment for transactions that were not appropriate? 4. Have there been any instances where someone has attempted to inflate assets or revenue or deliberately understate liabilities and expenses? 5. Is there any member of management that has a direct interest or indirect interest in any customer, vendor, competitor, supplier or lender? 6. Is any member of management related to any other member of management? 7. Does anyone in the company have any personal, financial or other problems that might affect their job performance? 8. If there was an area within the company that might be vulnerable to fraud, what would that be? 9. Has anyone within the accounting department been let go or resigned within the past year? 10. Is there anyone in management that appears to be living a lifestyle beyond their means? expensive cars, trips, jewelry, vices? 11. Has anyone been involved in civil or criminal proceedings or filed bankruptcy? 12. Does the company have a strong ethics policy? 13. Has anyone ever been fired for committing fraud against the company?
Forensic Accounting Tools/Techniques

(a) Chain of Custody (b) Questioned Documents (e.g. ink analysis) (c) Continuous Controls (d) Timeline Analysis (e) Tracing Schedule (f) Link Analysis (g) Invigilation (h) Genogram (i) Proof of Cash (j) Entity Charts (k) Full - and False Inclusion Tools
(l) Aberrant pattern detection(e.g., Benford Analysis) (m) Duplicate numbers test (Excel/Idea/Account payables) (n) Rounded numbers test (o) Lifestyle analysis (p) Attributes sampling (q) Document map[a separate pane that displays a list of headings in a document in order to quickly navigate through the document and keep track of your location on it. (r) Event analysis (e.g., attacks of hackers on a computer system) (s) GAP analysis (t) Stratification percentage comparison (u) Net worth analysis, etc. (v) Analytic techniques (e.g., horizontal, etc.)
CONCLUSION
Forensic accounting is about more than legal matters and financial numbers. It is about obtaining a better understanding and digging deeper into your business than you normally might. It is about helping you understand your business beyond the basics of accounting. In the end, forensic accounting principles can help you better understand the substance of your business over just its form.
BIBLIOGRAPHY
B.L. Derby, Data Mining for Improper Payments, Journal of Government Financial Management, Winter, 2003, pp. 10-13. Forensic Accounting: Strategies for Detecting and Controlling Fraud Intermediate : Power Point Presentation by D. Larry Crumbley. I.W. Collett & M. Smith, Trap Doors and Trojan Horses, Thomas Horton & Daughters, p. 76. Managing the Business Risk of Fraud: A practical Guide, 2008. PCAOB, October 17, 2007, pp. 7, 8, 12, 14-15, 26, 36.
Websites
(a) American College of Forensic Examiner : www.acfei.com.
(b) Association of Certified Fraud Examiners www.cfenet.com (c) Certified In Financial Forensics : www.aicpa.org. (d) Certified Forensic Financial Analyst. (e) Certified Forensic Investigator : www.homewoodave.com (f) Certified Fraud Specialist: www.acfsnet.org. (g) Forensic CPA Society: www.fcpa.org
The Corporate Dilemma: Greed v/s Goodness

Jaydev Joshi and Meeta Joshi1
1
AFP (IIM-AHD) Marwadi Education Foundation Group of Institutes, Rajkot

E-mail: jaydev287@gamil.com; meetaxlri06@gmail.com
Oh, what a tangled web we weave When first we practise to deceive! (Sir Walter Scott, Marmion, Canto VI) In the wake of dishonest practices occurred within the last past five years; telecom 2-G spectrum to Mumbai housing Adrash Society, November 26 to September 11, Satyam to Enron, WorldCom, Global Crossing, Xerox, Qwest, Arthur Andersen, Merck.endless; many people are asking how people believed to be so well educated and leaders in corporate world lacked the moral courage to seek and state the truth. Business Ethics has been thrown to the side as a Wild-Wild-West form of capitalism has taken hold on our corporate leaders. This corporate malfeasance has costs thousands of jobs, trillions of dollars in stockholder value, and skepticism of our once revered free economic system. Sky-high percapita income means little if crime and violence cast a gargantuan shadow over peace of mind. Corporate larceny can be designed by a greedy CEO get a complacent board and pliable auditors, recruit some greedy, unscrupulous and compliant reports; engineer rapid growth through reckless acquisitions(and , if possible, siphon off some money in the deals); stork managers hunger for money through tantalizing
stock options and other financial incentives; show rising profits by capitalizing revenue expenditure, by parking loss making assets in special purpose vehicles that are hard to detect, an by taking credit for shaky or non-existent accruals; silence internal or external, whistle-blowers; paint glossy, visions of growth and rising share price for the media and the investing public; recruit stockholders to get gullible investors to invest in the stock; jack up the price of the company stock; and clear out bore the bubble bursts!!!!!? The world over, CSR stems from a commitment to the society in which a business operates. In India, it has been traditionally linked to spirituality, while respect in the corporate world has been treated on a par with the bottom line. As the need for CSR finds wider recognition, it is worth examining the Indian foundation for trust. The question is: Cant we retain the enormous productivity and innovativeness of a globalized market economy and the profit motive, and avoid its poisonous fumes? Yes, we can, rather I should translate it as we must. This is a time of shifting paradigms and puzzling this paradox of dilemma by institualization of spirituality at work place.
PREVIOUS RESEARCH
Spirituality is increasingly becoming a popular topic because of its significant role in the organizations. However, many definitions of spirituality are offered in psychological literature. Therefore, the present study highlights the following definitions as pertinent. First, Vaill (2000) views spirituality as having to do with human kinds search for meaning, and argues that the search for meaning has often led individuals to seek significance in their work. Second, spirituality was defined by Giacalone and Jurkiewicz (2003) as a framework of organizational values evidenced in the culture that promotes employees experience of transcendence through the work process, facilitating their sense of being connected to others in a way that provides feelings of completeness and joy (p.13). An important definitional issue is the difference between spirituality and religiosity. In literature, various psychologists and management scholars have argued that these two concepts are different: spirituality is personal, inclusive, and positive while religiosity is external, exclusive, and negative (Harlos, 2000). In contrast, spirituality has been described as an element of religious practice, and it sits within the broader domain of religion (Pargament, 1999b). Thus, the definitions of spirituality are complementary rather than mutually exclusive. Accordingly, workplace spirituality can be defined as the recognition that employees have an inner life that nourishes and is nourished by meaningful work that takes place in the context community (Ashmos & Duchon, 2000). Specifically, the experience of spirit at work is linked with increased creativity, honesty, trust,
The Corporate Dilemma 189
and commitment in the workplace, along with an enhanced sense of personal fulfillment of employees (Krishnakumar & Neck, 2002). As a conclusion in this study, we consider the meaning and implications of spirituality within the context of the workplace. Workplace spirituality involves the effort to find ones ultimate purpose in life, to develop a strong connection to coworkers and other people associated with work, and to have consistency (or alignment) between ones core beliefs and the values of their organization (Mitroff & Denton, 1999). Furthermore, research conducted by Mitroff and Denton (1999) found that people differentiate between spirituality and religion. Religion is viewed as intolerant and divisive; and spirituality is seen as universal and broadly inclusive (p. 359). Their research further found that people have four different orientations toward religion and spirituality [such as]: A person can have a positive view of religion and spirituality. A person can be positive about religion but negative about spirituality. A person can have a negative view of religion, but a positive view of spirituality.
A person can be negative about both religion and spirituality. (p. 88) To back up what Mitroff and Denton (1999) found, research in the form of a poll conducted by Newsweek and Beliefnet in August of 2005 found that 55% of people said they were religious and spiritual; 9% said they were religious but not spiritual; 24% said they were spiritual but not religious; 8% said they were not spiritual or religious; and 4% didnt know.
AIMS AND OBJECTIVES

The purpose of the study was to measure the possibilities of corporations being spiritual. How does a corporation go from spiritual intentions to practiced workplace spirituality? Is it really works?
PROCEDURE
Through e-mail, the 300 questionnaire distributed to a large sample of employees, across a wide range of occupations (including technical, academic, and administrative) in different university across Gujarat and Bihar. Participants rated how true each item was for them along a 6-point scale ranging from 1=completely untrue, 2=mostly untrue, 3=a little bit untrue to 6=completely true. Basic demographic data on gender, age, occupation, income, years of employment with the university were to considered.
Sample
Responses were received from 289 individuals (126 female, 160 male and 3 missing*) Participants ranged in age from 20 to 71 years, with a mean age of 40. Approximately 70% of participants were between 30 and 55 years. The majorities were married or in long-term relationships (62%), whereas 24% were single, and 12% separated/divorced or widowed. Their highest level of education included a graduate or professional degree (31%), undergraduate degree (34%), postsecondary diploma (14%), technical training (12%) and high school diploma or less (9%). Occupations represented included administrative (37%), professional (28%), management (12%), technical (12%), Ten percent of respondents reported incomes of less than 25,000/- , 49% reported incomes between 25,000/- and 50,000/ -, 32% reported incomes of 50,000/- to 100,000/- and 9% reported incomes over 100,000/Missing: One survey was returned blank, rest two were not fully filled up. Our research identified several attributes of spirituality within the context of work as follows: 1. Defining ourselves as having inherent values, greater than our roles, titles and possessions. 2. Affirming meaning and purpose in spite of absurdity and chaos. 3. Emphasizing authenticity, inner wisdom, creativity and transformation. 4. Recognizing the immaterial, transcendental, sacred dimensions of reality. 5. Having a servants attitude towards work and leadership. 6. Embodying spiritual values of integrity, honesty, love, kindness and respect. 7. Emphasizing social responsibility toward the community, society and environment. 8. Viewing God and spiritual principles as the grounding for moral decisions (p. 3).
CONCLUDING COMMENTS
Spirituality can work even in the business place. Man, wrote Henry ward Beecher in the 19th century , is at bottom an animal, midway, a citizen; and at top, divine. When human passions, particularly greed and lust, are in flamed man can slide towards beast-hood. Although greed and business are supposed to go together, business, when seen as a creative service to humanity-for a fee-can uplift humans. In business, as in other walks of life, spirituality can be a great sublimate of our
The Corporate Dilemma 191
nasty instincts. Spirituality yields calmness and compassion, and these in turn, yield better judgments, foresight and quality in and commitment to ones work. If it is widely practiced in business, it can play a significant role in the further evolution of mankind. As Srinivasan has opined,..Business has the highest potential to become the evolutionary laboratory for experimenting in collective spirituality transformation. Business spirituality is a quite but potent force that draws the organization back from certain kinds of actions and propels it gently towards some other kinds. It restrains the organization from marketing products that sell because of their prurient or carnal interest or capacity to addict the user; it propels the organization to instead market products that are healthy, non-addictive, aesthetic, useful and give best value for money. It restrains the organization from exploitative personnel practices and instead propels it towards practices that grow good human beings and good careers. It restrains the organization from illegality and foul means and propels it towards calmly deliberated decisions that seek to benefit all stakeholders of the organization. My views for a corporation wanting to go spirituality is to get hold of a guru who does not preach religion but inculcates religiously neutral practices like mediation, non-denominational prayers, service to the poor, values workshops, helpfulness, and charity. The denominational approach may put off many in todays times; the non-denominational may build a wider human fraternity within the diverse community of the corporations stakeholders. Opportunities need to be created for service by the corporations stakeholders to the needy and the disadvantaged, say by adopting a school in a poor area in which staff members can interact with the kids and provide other help. Finally, important decisions need to be made in a spiritual atmosphere, that is, after invoking a spirituality mood through meditation, spiritual music, and prayer. Whatever be the spirituality stance of the organization, one caveat needs to be kept in mind. Spirituality is easy to fake and difficult to practice. Spirituality is not a substitute for striving at least not in business. As a Russian proved has it: pray to god, but continue to row to the shore a shard understanding reveals that competition is about determining who offers the best value for money, how to offer the best value for money and indeed to discover what is best value.
REFERENCES
Allen, P.(2002) Well-being at Work:Perspectives on human wellbeing in a globalizing workplace.
Catlette, B. and Hadden, R. (1998), Contented Cows Give Better Milk: The Plain Truth About Employee Relations and Your Bottom Line, Saltillo Press, Germantown, TN. Cavanagh, G.F. (1999), Spirituality for mangers: context and critique, Journal of Organizational Change Management, Vol. 12, pp. 186-99. Channon, J. (1992), Creating esprit de corp, in Renesch, J. (Ed.), New Traditions in Business: Spirit and Leadership in the 21st Century, Berrett-Koehler, San Francisco, CA, pp. 53-68. Fromm,E.To Have or To Be.London:Cape. Bell, E.and Taylor,S. (2004) From outward bound to inward bound:The prophetic voices and discursive practices of spiritual management development,Human Relations, 57(4). Frost, P. and Robinson,S.(1999) The toxic handler:organizational hero and casualty, Harvard Business Review,77(4):96-107. Goleman,D.(1998) Working with Emotional Intelligence.London:Bloomsbury. Manchester:William Temple Foundation. Thrift,N.(1998) The Rise of Soft Capitalism in Herod,A.,O Tuathail,G. and Roberts,S.M. Thrift,N.(1998) The Rise of Soft Capitalism. Unruly World: Globalisation,Governance and Geography. London:Routledge.
Distributed Leadership and its Impact on Teaching, Learning & Job Satisfaction
Viswanadham Bulusu and Karuna Kodavatiganti
Auroras Degree and PG College, Chikkadapally, Hyderabad, A. P.
E-mail: viswanadhambulusu@adc.edu.in; karunak@adc.edu.in
INTRODUCTION
Distributed Leadership is an attitude rather than a management technique. It means seeing all members of the faculty and staff as experts in their own right as uniquely important sources of knowledge, experience, and wisdom. Under Distributed Leadership, everyone is responsible and accountable for leadership within his perview. Good ideas come, and many people cooperate in creating change, Distributed Leadership is an environment where everyone feels free to develop and share new ideas and succeed in a climate of shared purpose, teamwork, and respect an atmosphere in which we can reach out to help one another and feel free to turn to ask for help. In other words, Distributed Leadership supports and strengthens an individual, it does not mean delegating. Instead, it means bringing success in handling problems,
threats, and change..In Distributed Leadership, not everyone is a decisionmaker, but everyone is an expert whose knowledge contributes to the decision-making process. Distributed Leadership empowers everyone to make his or her job more efficient, meaningful, and effective. Under Distributed Leadership, everybody is important. Therefore, when we talk about sharing leadership, we ought to mean sharing learning-centred leadership. We should create and develop many leaders who influence and improve the quality of learning and teaching. Although distributed leadership is not a difficult idea, when put into practice it can take many different forms.
Distributed leadership has garnered considerable attention these days. It often is used interchangeably with shared leadership, team leadership, and democratic leadership. Some use distributed leadership involves multiple leaders; others argue that leadership is an organizational quality, rather than an individual attribute. Still others use distributed leadership to define a way of thinking about the practice of school leadership (Gronn 2002; Spillane, Halverson, and Diamond 2001, 2004). It is little wonder that many observers are perplexed about the meaning of distributed leadership and whether it is anything new. Perhaps distributed leadership is just another case of old wine in new bottles. Traits such as self-confidence, sociability, adaptability, and cooperativeness, among others, were thought to enable leaders to inspire others and thus get others to follow; indeed, empirical work suggests that such leader traits increase the likelihood of effectiveness (Yukl 1994). These organizational arrangements are constitutive of leadership practice, not simply hurdles external to that practice that leaders must overcome in order to enact a particular task using some predetermined practice. Likewise, research from the institutional perspective informs us that schools decouple formal structure, e.g., administration and management, from core activities, e.g., teaching (Meyer and Rowan 1977; 1978; Weick 1976). Equating leadership with the actions of those in leadership positions is inadequate for three reasons. First, leadership practice typically involves multiple leaders, some with and some without formal leadership positions. It is essential, therefore, to move beyond viewing leadership in terms of superhuman actions. Second, leadership practice is not something done to followers. From a distributed perspective, followers are one of the three constituting elements of leadership practice. Third, it is not
Distributed Leadership and its Impact on Teaching, Learning... 195
the actions of individuals, but the interactions among them, that are critical in leadership practice. Existing scholarship shows that responsibility for leadership functions can be distributed in various ways. Studies have shown how this responsibility can involve multiple leaders-not just principals or vice-principals-who work in a coordinated manner at times and in parallel at others (Heller and Firestone 1995).
OBJECTIVE
The main is to explore recent perspectives and the effects of different patterns of leadership practices on the improvement of teaching, learning and to study the relationship between innovative leadership practices and its impact on selected educational institutions improvement and educators job satisfaction, collaboration and commitment.
HYPOTHESIS
The more positive educators rating of distributed leadership, the greater their perceived job satisfaction, commitment and collaboration. Innovative ideas of principals & vice-principals on the distributed leaderships will have a moderating influence on students outcome and institutional development.
METHOD Sample
The sample of the study comprised of 200 educators from various colleges (Men=112 and women=88) randomly drawn from colleges in the city of Hyderabad. Their age range between 28-55 years and their experience range from 1-22 years.
Tool
Th Inventory developed by the Authors consists of 20-questions, describing various factors on distributed leadership and its impact on teaching, learning and job satisfaction perceived by educators; it is a 4-point scale consisting of Strongly Agree (4), Agree(3), Strongly Disagree(2), Disagree(1).
Data
Table 1 : Participants Demographic Characteristic
Independent Variable Men Women 28 35 years 36- 45 years 46 60 years Administrators (Principals/vice-principals) Educators Sciences Commerce Arts & Languages 1- 5 years 5- 15 years 16 25 years Frequency 112 88 85 94 21 50 150 65 75 10 43 128 29
Gender Age
Cadre Area of Specialization Length of Service
Table 2: Administrators Perception Towards Distributed Leadership

S. No. 1 2 3 4 5 6 7 8 9 Distributed Leadership Results Career ladder initiatives Mentor teacher programs Building inter personal relations Enhances team work Creating organizational culture Increases job satisfaction Delegation of authority Increases commitment Coordinating monitoring curriculum 10 Building management functions 3.00 0.47 0.22 Mean 3.26 3.34 3.28 3.38 2.92 3.58 3.34 3.22 3.14 Standard Deviation 0.50 0.52 0.51 0.51 0.46 0.57 0.52 0.50 0.49 Variance 0.25 0.27 0.26 0.28 0.21 0.33 0.27 0.25 0.24
Graph 1: Administrators Perception Towards Distributed Leadership
Table 3: Educators Perception Towards Distributed Leadership

S. No. 1 2 3 4 5 6 7 8 9 10 Distributed Leadership Results Improves spirit of teams Meeting individual and institutional objectives Sharing Responsibilities Improves confidence & problem solving skills Reduces stress Increases job satisfaction Improves teaching Efficiency Increases commitment Enhances positive competition Improves decision making Mean 3.23 3.01 3.37 3.32 3.64 3.72 3.81 3.41 3.11 2.96 Standard Deviation 0.29 0.27 0.31 0.30 0.34 0.30 0.36 0.31 0.28 0.27 Variance 0.08 0.07 0.09 0.09 0.12 0.09 0.13 0.10 0.08 0.07
Graph 2: Educators Perception Towards Distributed Leadership
RESULTS & DISCUSSION

A significant relationship was found between the distributed leadership and the level of support received from mentor-teacher programs, Career ladder initiatives, team work which in turn reduces stress, and increases job satisfaction. Educators were more satisfied with the support they received from principals, vice-principals as they provided each other with high levels of practical and social support. Positive relationship was found between the level of institutional development and distributed leadership. Allowed-to-be-a-leader culture. Can be a powerful motivating force for educators, helping them to feel valued in their work. Most of the respondents in the present study felt that the distributed leadership would reduce stress as the work load is shared by all the members of the team and also the roles of each individual of the team are clearly defined. The present data shows that 82.2% of those who work in team state to be almost never stressed at work in comparison to 17.8% of those who do not work in teams/groups. Therefore, it is possible to conclude a relative direct relationship between working with distributed leadership and presence of stress. As a collective work is done, they felt that the
efficiency and quality of teaching increases as collaborative and cooperative approaches are followed for every challenging situation in a distributed leadership. In the present research, it can be seen that job satisfaction (3.58), team work ( 3.38), mentor-teacher programs(3.34) and delegation of authority ( 3.34) are prime benefits of distributed leadership. About 130 educators and 40 administrators out of 200 have strongly agreed or agreed to these parameters. Thus, it does appear that job satisfaction, teaching efficiency, commitment are in fact, predictive of performance, and the relationship is even more stronger for distributed leadership
CONCLUSION
The concepts of distributed leadership, is recognized as contributing to improving teaching and learning. The link to distributed leadership is evident in the need for such practices to have multiple leaders. They also incorporate, in principle, many of the key features of distributed leadership as outlined above, such as a climate of trust, a sense of community, collaboration, support and on-going learning by educators. The work of leaders close to the site of learning, i.e. the classroom, contributes directly to enhancing student learning. The overall results of the present study suggest the need for distributed leadership for reducing the levels of stress among the educators which in turn will improve their functional skills , increase job satisfaction and lead to effective teaching/learning in the class room.
REFERENCES
Burns, J. M. Leadership. New York: Harper & Row, Culbertson, Jack A. A centurys quest for a knowledge base. Education Administration. Grant, C. (2006) Emerging Voices on Teacher Leadership: Some South African Views, Educational Management, Administration and Leadership, Vol. 34, p. 511 (http://ema.sagepub.com : February 2009). Heller, M. F., and W. A. Firestone. 1995. Whos in charge here? Sources of leadership for change in eight schools. Elementary Scliool Journal 96(1): 65-86. Glickman, C. (2002). Leadership for Learning: How to Help Teachers Succeed. ASCD USA. Halverson, R. (2006) A Distributed Leadership Perspective on How leaders Use Artifacts to Create Professional Community in Schools. Wisconsin Centre for Educational Research (WCER) Working Paper, No. 2006 4, August 2006 (http:// www.wcer.wisc.edu : August 2008).
Harris, A. (2004) Distributed Leadership and School Improvement: Leading or Misleading? Educational Management Administration and Leadership (www.ema.sagepub.com : February 2007). Meyer, John W., and Brian Rowan. The structure of educational organizations. In Environments and Organizations, edited by M. Meyer & Associates, San Francisco: Jossey Bass, 1977. Quarterly 24 (1988). Stodgill, Ralph Melvin. Leadership, membership and organization, Psychological Bulletin, 47 (1950): 1-14. Stodgill, Ralph Melvin. Handbook of leadership (1st Ed.) New York: Free Press. 1974. Stodgill, Ralph Melvin. (1950). Leadership, membership and organization, Psychological Bulletin, 47 (1950): 1-14. Stodgill, Ralph M. Personal factors associated with leadership: A survey of the literature. Journal Psychology, 25. 1948n. Yukl, Gary A. Leadership in Organizations. Englewood Cliffs, NJ: Prentice-Hall, 1981.Yukl, Gary A., S. Wall, and R. Lespinger Preliminary report on validation of the managerial practices survey. In Measures of Leadership. Edited by K.E. Clark & M.B. Clark. West Orange, NJ: Leadership Library of America 1989.
Marketing Strategies Go Ahead

Sanjay Bharti, Priyanka Kushwaha1 and Ashok Kumar1
Department of Business Administration Kanpur Institute of Technology, Kanpur 1 Seth Sriniwas Agarwal Institute of Management Kanpur
E-mail: sbharti3@gmail.com1; Priyanka.kushwaha08@gmail.com; kumaraks34@gmail.com
Keywords: Marketing Strategy, Market, Gray Market, Marketing P, Environment Scanning, Competitive Advantages
INTRODUCTION
It will be appropriate opening for this research paper that winner never quit and quitters never win To maintain the pace of winner it is must for marketers to adopt and formulate good strategies. The word strategy derives from the Greek (strategia), office of general, command, generalship, in turn from (strategos),leader or commander. The word was first used in German as Strategie in a translation of Leos work in 1777, Strategy, word of military origin, refers to a plan of action designed to achieve a particular goal.
MARKETING AND STRATEGIES

Marketing is nothing only offer and deliver needed and desired product/services to consumers which indentify by marketers at a profit , beside it marketers look forward and want to long time survival of product/brand, position profit, and big market share to enjoy cash cow position. In generally to make their product/service brand position in market among competitors ,slang words says that what(Jugaar) to set, meant what are those plans, ideas and determination to let down competitors and enjoy the position of market leader, marketers put their full efforts, concentration and attention over market and consumers, market gaps which pave for failure or success of product/brand. Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy should be centered around the key concept that customer satisfaction is the main goal. A course of action which can lead to increased sales and dominance of a targeted market. A marketing strategy combines product development, promotion, distribution, pricing, customer and market relationship management and other elements; identifies the firms marketing goals, and explains how they will be achieved, ideally within a stated timeframe. It also determines the choice of target market segments, positioning, marketing mix and allocation of resources. At the time of step in the marketing activities marketer face no. of forces from scratch to survival of their effort as 6C.
Capital Manageme t
Channel Manageme
Cost
Forces
Competitors
Consumer
CLIMATE (Environment)
Marketing Strategies Go Ahead 203
Strategy at Different Levels of a Business

Strategies exist at several levels in any organization - ranging from the overall business through to individuals working in it. Corporate Strategy ,Business Unit Strategy.
Why Marketers Formulate Strategies

Marketer formulate strategies to meet out competition, maintain and retain customer make their position and rapidly growth and profit. The marketing strategy section of organization plans start with these following outlines achieve better than others i.e. 7Ps.
Retain Potential Customers for Profit

It is well known that consumer is GOD of any business organization G-Generator of business, O-Operator of business, D-Destructor of business. Marketers have to create such chunk so customer come to buy and enjoy their product/services In olden days there was a slang that More Person - More Profit (Income) now it has changed with More Product - More Profit, in tough marketing environment for revival and survival of business, marketers must have to understand consumer and adapt customer centric approach for identify, create, keep. retain and delight right customer for do business with profitable customers.
Customer Centric Approach

A marketing mix is combination of different Ps as tools of marketing which play very important and vital role in formulation of strategies (Product, Place, Price , Promotion ,packaging ,people, process, physical evidence).plans to use in order to sell their products or services to consumers. By increasing or reducing the elements of the marketing mix into these eight categories, management can manage the marketing plan more efficiently and develop an effective marketing strategies.
Why to Use Marketing Strategies

Every Organizations has their prime objective is earn revenue, wealth, profit , consumer satisfaction and continue repurchasing of goods / services by its target market and prospect consumers in different stages of product life cycle to faces losses & profits, growth & de growth (declining sales) and cut throat competition along with fulfilling social welfare etc.
Dwell and Deal with Problems

When ever marketing management team look for develop new product, market it is big challenge with them that to make a suitable plan for-Market size, share growth, combat competitors, managing price in product mix, Govt. Regulation, Increasing know best Customer knowledge, Customer satisfaction level, developing cost efficiency product, Product quality, Financial strength, under stand demand factors etc.
How Strategy is Managed - Strategic Management

In its broadest sense, strategic management is about taking strategic decisions decisions that answer the questions above. In practice, a thorough strategic management process has three main components, shown in the figure below:
STRATEGIC ANALYSIS
Analyzing the effectiveness and influence of marketing strategies marketers can assisted tools, including: PEST Analysis, Scenario planning, Five forces analysis , Market segmentation, Directional policy matrix, Competitor Analysis, Critical Success Factor Analysis,, SWOT Analysis and strategic choice and implementation.
TYPES OF MARKETING STRATEGIES

Marketing strategies may differ and depending on the unique situation of the individual business. Make success and survival of business, Marketing growth strategies:- five fundamental engines/components of a company; market strategies, product and services strategies, organization strategies, people strategies, and financial strategies.
Strategies Based on Market Dominance

Firms are classified based on their market share or dominance of an industry. there are four types of market dominance strategies: Leader, Challenger, Follower, Niches.
Porter Generic Strategies

Strategy on the dimensions of strategic scope and strategic strength. Focus-broad or narrow. Product differentiation (broad), Cost leadership (broad), Market segmentation (narrow).
Innovation Strategies
This deals with the firms rate of the new product development and business model innovation. There are three types: Pioneers, Close followers, Late followers.
Growth Strategies
How should the firm grow?.it can grow : Horizontal integration, Vertical integration, Diversification, Intensification.
Broad Strategies
Blue ocean and Red ocean strategies, which focus to enter in market with use strategies for expanding (open and look into new market meant new consumers
for product/brand) or penetrating business(focus to new and more uses of product/brand).
MARKETING STRATEGIES
Focus to make relationship with existing and potential clients/customers, knowledge of changing needs and opportunities in the market, the way it identifies and reaches its clients/customers, the quality and speed of service it provides, marketing, advertising, and the selling and management skills its possesses.
Marketing Strategies
Use, improve, marketing materials; advertising; trade shows; direct mail; market research; public relations; etc.
Sales Strategies
Sales staff increase their selling time, increase their numbers, increase their knowledge, skills; engage sales reps, distributors; enhance customers knowledge of whats offered, expand business within the segments serve; or expand into other segments, or expand geographical area, change the % of sales make within existing client base, segments, or geographical areas, determine what the competition going and handle it.
A View on Marketing Warfare Strategies

Offensive marketing warfare strategies - are used to secure competitive advantages; market leaders, runner-ups or struggling competitors are usually attacked, Defensive marketing warfare strategies - are used to defend competitive advantages; lessen risk of being attacked, decrease effects of attacks, strengthen position, Flanking marketing warfare strategies - Operate in areas of little importance to the competitor, Guerrilla marketing warfare strategies - Attack, retreat, hide, then do it again, and again, until the competitor moves on to other markets, Deterrence Strategies-Deterrence is a battle won in the minds of the enemy. You convince the competitor that it would be prudent to keep out of your markets, Pre-emptive strike - Attack before you are attacked. Frontal Attack - A direct head-on confrontation. Flanking Attack - Attack the competitors flank. Sequential Strategies - A strategy that consists of a series of sub-strategies that must all be successfully carried out in the right order. Alliance Strategies, Position Defense, Mobile defense, Encirclement strategy, Cumulative strategies, Counter-offensive- When under attack, launch a counter-offensive at the attackers weak point. Strategic withdrawal -
Retreat and regroup so you can live to fight another day, Flank positioning Strengthen your flank, Leapfrog strategy - Avoid confrontation by bypassing enemy or competitive forces etc.
Products & Services Strategies

The product area is concerned with developing the right product for the target market. It provides reduce cost, Introduce new and improved technologies, Identify and adapt new technologies to better meet the needs of customers, Developing the product can include making decisions regarding the features, accessories, quality, and benefits offered with the product.
Pricing Strategies
Determining the price consumers are willing to pay and the price a business must charge in order to cover fixed and variable costs for production of the product or providing the service, As Cost plus pricing ,Competitor based pricing, Promotional pricing, Penetration pricing, Price discrimination, Skimming pricing etc.
Place Strategies
Placement strategies, involves more than simply determining the actual place the consumer can purchase the product or service. it is decide whether to use inclusive, selective or exclusive distribution channels to deliver the product to consumers and manage those channels through determine the methods of storing, transporting and handling the product.
Promotion Strategies
The promotion, involves educating the consumer or more specifically the target market, and others of the availability and benefits of the product or service the business is offering for sale. Awareness , reminder and pursuing for product or service.Campaign is an essential tool to the success of the marketing strategy. with specific interest as ASSMEC (Attentive, Sentimental, Suggestive, Educate, Moral and Conventional ) of the product or service.
People Strategies
This component covers the energies, abilities, skills, and attitudes of employees that can be harnessed for growth.
Pocess
Is an element of the service that foresees the customer experiencing an organizations offering. It is procedure of mechanism and flow of activities by which goods and services are consumed customer management processes, that integrate together to create an overall marketing process.
Physical Evidence
Physical evidence is the material part of a service, physical evidence as Packaging, Internet/web pages, Paperwork, Brochures, Furnishings, Signage, Uniforms, Business cards etc.
CONCLUSION
The out put of research work is that there is no single formula to make business success, but there one mistake makes failure to business and marketing activities. Hence marketing manager have to formulate a good composition and proposition of marketing tools.
REFERENCES
Marketing management 12e A south Asian perspective( Kotler, Keller, Koshy, jha) pearson. Marketing management 3rd. ed. Rajan saxena, TMH. Modern Marketing principle and practices, R.S.N.Pillai ,Bhagvathi S.Chand, Higher Academic. Wikipedia.
A Comparative Analysis of FDI Inflows in India During Pre-recession and Post-recession Phase
Laila Memdani
Management Department, AIMA Bankatlal Badruka College of Information Technology, Hyderabad
E-mail: lailamemdani25@gmail.com
INTRODUCTION
Since Independence India started with planned economic development for the overall and balanced development of the country but Indian planners were apprehensive of foreign capital. Foreign capital was looked upon with suspicion. The aim of planning was to achieve a Socialistic pattern of society. Public sector expanded by leaps and bounds and private sector was supposed to play a limited role. Our trade policy was also inward looking. We followed the policy of Import substitution and then slowly moved towards Export promotion. The push towards liberalization, privatization and globalization in India came in eighties when India faced severe balance of payments crisis. To this crisis fuel was added by oil shocks, which pushed up import bill significantly while exports lagged behind. This led to considerable increase in trade deficits. Remittances from gulf countries also flattened out. The problems multiplied by gulf war in 1990-91. FOREX reserves declined to $1.1 billion in June 1991, which was hardly sufficient for two weeks
of import requirement. During this period government had no option but to take loan from IMF, which comes with its conditionalities. One of the condition was external sector liberalization and relaxing restrictions on international flow of goods, services, technology and capital, which is considered as globalization. Thus we started with giving increasing emphasis to foreign capital. The foreign direct investment was allowed under the new regime in almost all sectors of the economy. The economy was opened up to bring it in tune with the global economy. And changes were effected in industrial and trade policies which were substantially liberalized .In the liberalized atmosphere the change in the attitude of the government was inevitable. Foreign investments can be of two types direct as well indirect. The direct foreign investment which is also known as FDI and includes investments from non-Resident Indians and Overseas Corporate Bodies (OCB). These are parts of the government efforts to supplement the domestic resources for the economic development of the country. Now FDI is permitted in all sectors including service sector with some sectoral caps. Even foreign investments are allowed in the SSI sector. Similarly such investments are allowed for trading activities with a cap. There are other modes of FDI like Global Depository Receipts, American Depository Receipts, Foreign Currency Convertible Bonds etc. Although India is endeavouring to catch up with China in attracting foreign capital but it is still way behind it. The global financial crisis of 2007 which has resulted in the collapse of large financial institutions, the bailout of banks by national governments and downturns in stock markets around the world.
METHODOLOGY Sources of Data

A study is based on the secondary sources of data only and data is collected, tabulated and computed from authentic source from Department of Industrial Policy and Promotion, World Investment Prospects Survey and RBIs Data Base on Indian Economy.
Tools
The data is analyzed with the help of simple statistical tools such as percentages, growth rates and graphs in order to study short-term fluctuations.
Limitation
Time period of the study is from April 2006 to September 2010 total four years only. The data is analyzed segregating them into pre and post recession monthly trends.
A Comparative Analysis of FDI Inflows in India During Pre-recession... 211
Short Term Variations in FDI in India

Coming to the behaviour of FDI in India during recession the data is divided into pre recession and recessionary phase. From April 2006 till the beginning of 2008 constitutes pre recessionary phase and the period after it is recessionary phase. The data is given in table 1 below: Table 1
Month and Year April-06 May-06 June-06 July-06 August-06 September-06 October-06 November-06 December-06 January-07 February-07 March-07 April-07 May-07 June-07 July-07 August-07 September-07 October-07 November-07 December-07 January-08 February-08 March-08 April-08 May-08 June-08 FDI in US$ Rate of Growth Millions in Percentage 661 538 19 523 3 1,127 115 619 45 916 48 1,698 85 1,151 32 2,040 77 1,921 6 698 64 3838 450 1,643 57 2,120 29 1,238 42 705 43 831 18 713 14 2,027 184 1,864 8 1,558 16 1,767 13 5,670 221 4,443 22 3,749 16 3,932 5 2,392 19 Month and Year July-08 August-08 September-08 October-08 November-08 December-08 January-09 February-09 March-09 April-09 May-09 June-09 July-09 August-09 September-09 October-09 November-09 December-09 January-10 February-10 March -10 April-10 May-10 June-10 July-10 Aug-10 Sep-10 FDI in US$ Millions 2,247 2,328 2,562 1,497 1,083 1,362 2,733 1,466 1,956 2,339 2,095 2,471 3,476 3,174 1,512 2,332 1,700 1,542 2,042 1,717 1,209 2,179 2,213 1,380 1,785 1,330 2,118 Rate of Growth in Percentage 6 4 10 42 28 26 101 46 33 20 10 18 41 9 52 54 27 9 32 16 30 80 2 38 29 25 59
Source: Department of Industrial Policy and Promotion - Ministry of Commerce
A look at the table shows that in 2006-07 there was negative rate of growth of FDI except in the months of September, October, December and March there was very high positive rate of growth. In the month of March the rate of growth was 450% i.e. the FDI increased from 698 million dollars to 3838 million dollars. In 2007-08 also there was negative rate of growth for all the months except for the months of August, October, January and February. In October 2007 the rate of growth was 184%, but then also its absolute value was almost half of March 2007 level. From January 2008 onwards recession had spread in most of the countries of the world but we had positive rate of growth of FDI inflows for months of January and February. For February we had a record rate of growth of FDI, it was 221%. Coming to 2008-09 same trend of positive and negative rate of growth continued. The highest rate of growth achieved was 101% in January 2009. For the year 2009-10 also similar fashion continued but the percentages were comparatively low. The highest was 54 in October 2009. In 2010 also ups and down continued. In August there was negative rate of growth but in September it was 59%.
Fig. 1: Foreign Direct Investment in India
The Fig. 1 shows the trend in FDI. There are continuous ups and downs in the amount of FDI in the country. The highest value of FDI achieved was in February 2008. But in spite of fluctuations it has got the rising trend. Coming to the rate of growth we find that the highest rate of growth was observed in March 2007. It was 448.5%. The diagram reflects the fluctuations in the rate of growth of FDI in India.
The table 2 below gives the annual average rate of growth of FDI in India. From the table we observe that the annual average rate of growth of FDI in India was as high as approximately 55% in 2006-07, declined to 21.24% in 2007-08 and again in 1008-09 it declined to 2.08% and in 2009-10 it was negative. The overall average for four years comes to 19.53% or approximately 20%. Table 2: Annual Average Rate of Growth of FDI in India
Year 2006-07 2007-08 2008-09 2009-10 Annual Average Rate of Growth 54.93 21.24 2.08 0.125
It has been accepted by large number of scholars that India is the most preferred destination for FDI then why are the rates of growth are declining? First and the foremost is the global financial crisis and the liquidity crunch being faced by large number of countries of the world. According to World Investment Prospects Survey (WIPS) (2009-11) The global economic and financial crisis has already had a major negative impact on TNCs FDI plans in the short term. Recovery is expected to begin slowly in 2010, gathering momentum in 2011" There is decline in FDI flows in most of the countries of the world. Table 3
Mauritius FDI Rate of Inflow Growth 2005-06 11441 2006-07 29759 1.6 2007-08 44483 0.49 2008-09 50794 0.14 2009-10 49633 0.02 Source: Department of Industrial Singapore Netherlands FDI Rate of Rate of Inflow Growth FDI Inflow Growth 340 340 2905 7.54 2905 7.54 2780 0.04 2780 0.04 3822 0.37 3822 0.37 4283 0.12 4283 0.12 Policy and Promotion - Ministry of Commerce
From the table 3 it is clear that the rates of growth in Mauritius, Singapore and Netherlands are declaiming. Mauritius has negative rate of growth. In absolute numbers the FDI inflow of Mauritius is very high in comparison to India. In comparison to Singapore and Netherlands the Indias FDI inflow is more. The Chinese scenario also shows similar picture. Table 4 below gives the annual rate of growth of FDI in China. In 2005 the rate of growth of FDI was negative. It
started increasing afterwards and in 2008 it was 23.6% but in 2009 it became negative. Table 4: Rate of Growth of FDI in China
Year Rate of Growth of FDI in China(%) 2005 0.5 2006 4.5 2007 18.6 2008 23.6 2009 2.6
Source: http://www.uschina.org/statistics/fdi_cumulative.html
World Investment Prospects to 2011 report has ranked countries according to the level of FDI inflows and Indias rank in it is 18th. First and second positions are being occupied by United States and United Kingdom respectively and China comes third. The report has also ranked countries according to their Business Environment, because business environment is also one of the major determinant of FDI. Indias rank in the business environment ranking is 54th and Chinas is 53rd. The first three are Denmark, Finland and Singapore in the consecutive order. The declining FDI in general shows that TNCs are avoiding the risks. According to WIPS TNCs were especially concerned about large exchange rates fluctuations, the price volatility of petroleum and raw materials, a worsening of the economic crisis and growing financial instability, as well as rising protectionism and price volatility in general. Volatility of prices (especially raw materials), geopolitical instability and threats to personal safety were also perceived by TNCs as having a significant potential impact on FDI. On the other hand, the risks of food or environmental crises were not perceived as posing a potentially strong threat to FDI over the next three years. It is also observed that TNCs are preferring other modes of investments like licensing, outsourcing, franchising etc.
CONCLUSION
Thus in conclusion it can be said that of course there is declining rate of growth in FDI in India as well as most of the countries of the world but the overall trend is rising and there are expectations that the rate will pick up gradually in coming months and by 2011. It is also observed that there is too much of volatility in FDI inflows in India.
BIBLIOGRAPHY
B. Sivaramam: Impact of US melt down on Indian Economy asia-pacificaction_org.htm.
Oineetom Ojah Sinha and Debdatta Das EU crisis hits FDI inflows: NDTV Profit. Official website of Department of Industrial Policy and Promotion. Pravakar Sahoo Increasing FDI in India: Does Budget go far enough: East Asian Forum. World Investment Prospects Survey: 2009-11: UNCTAD. World Investment Prospects to 2011: Economic Intelligence Unit, The Economist. www.rbi.org.
A Strategic Study on Fundamental Analysis of Pharmaceutical Industry in India

Simmi Khurana
Institute Integrated Academy of Management and Technology, Ghaziabad
E-mail: khurana.simmi@rediffmail.com
Keywords: Profitability, Solvency, Financial Statement, Financial Derivatives
INTRODUCTION
Indian pharmaceuticals industry is estimated to have a worth of $6.5 billion and is growing around 10% annually. For the last five years, it is gaining high rank for improved technology-orientation and use, quality of drugs and wide range of medicines. It is producing medicines starting from simple headache pills to premium antibiotics, from complex cardiac compounds to OTC medicines, formulations & API. The current pharmaceuticals sector is a highly fragmented one with nearly 20000 registered business units producing drug or engaged in pharmaceuticals business. Out of them, 250 pharmaceuticals companies are holding 70% of market with market leaders being around 7%. Indias top companies are Cipla, Ranbaxy, Glaxo Smithkline, Zydus Cadila, Alkem Laboratories, Sun Pharmaceuticals, Nicholas Piramal, Dr. Reddy etc. according to their sales and market share.
A Strategic Study on Fundamental Analysis of Pharmaceutical... 217
The competition in this sector is due to price strategies and price controls administered by the Government of India. This sector contributes bulk drugs, pharmaceuticals formulations, chemicals, tablets, capsules, orals and injectibles. There are about 250 large units present with 8000 small scale units associated, directly or indirectly, with this sector. The reason for this immense growth and development can be due to the de-licensing decision for the pharmaceuticals sector. The firms are free to produce all those drugs which are duly approved by Drug Control Authority of India. Indian pharmaceuticals companies are moving towards a more challenging and opportunistic future through co-operative strategies, mergers and acquisitions to make the world feel their global presence. Ranbaxy is leading the companies in acquisition and fund procurement strategies which include Romanias Terapia, Ethimed NV of Belgium and followed by GSKs generic business Allen SpA in Italy. Ranbaxys sell-out to Daiichi Sankyo has contributed in capturing potential market in both USA and Africa. Dr Reddys acquired German generic drug maker Betapharm. Other giants like Glenmark Pharma, Lupin, Aurobindo and Jubilant Organosys are also planning to move with similar strategies. Indias pharmaceuticals industry is now the fourth largest producer by volume and eighth largest in global production. Potential markets for the pharmaceuticals industries abroad are US, Europe, Russia, former CIS countries, Africa, Latin America, particularly Brazil. India stands as Ciplas major market, generating most of the revenue for the company. But, Cipla is also embarking upon capturing foreign markets. Unlike this, Dr. Reddys seems to be oblivious about its Indian market and looking for growth in the overseas.
LITERATURE SURVEY
The literature review is a critical look at the existing research that is significant to the work that you are carrying out. A reference to these earlier studies will be relevant in the context of present study. Zahir and Yakesh (1982) found that dividend per share to be the most important variable affecting the share price followed by dividend yield; Book value per share; Dividend coverage and Return on Investment in that order. Chandra (1989) conducted a study on 50 shares drawn at random from group of 110 shares of firms in all industry except banking, insurance and textiles and found that returns ,growth and size have a postive influence on share price while risk and leverage have no influence on share price. Bansal (1996) analyzed the behavior and determinants of equity prices in India during the period (1987-95)and found that Book value,Dividend per share ,EPS
and Dividend Cover were the variables which contributed the most in determining equity shares prices followed by Price-Earnings Ratio and Dividend Yield.
OBJECTIVES
1. To the study the profitability and financial position of pharmaceutical companies in India during the Post Liberalization period from 1998-99 to 2008-09. 2. To take investment decisions carefully after studying risks involved in the same.
HYPOTHESIS
H1: The Earning per Share (EPS) position of Cipla, Dr Reddys, Sunpharma, Wockhardth, GlaxoSmithKline and Ranbaxy does not differ significantly. H2: The return on Capital Employed (ROCE) position of Cipla, Dr Reddys, Sunpharma, Wockhardth, GlaxoSmithKline and Ranbaxy does not differ significantly.
METHODOLOGY Data Collection and Sampling

The major source of data analyzed and interpreted in this study is based on data collection from the corporate database (Prowess) of the center for Monitoring Indian Economy (CMIE).
Tools Used for Analysis Ratio Analysis

Ratios have been calculated for the past ten years for the purpose of analysis. Ratios being planned are named as: Earning per share (EPS) , Return on capital employed (ROCE).
Aanalysis of Variance (ANOVA)

The statistical tool that is used for testing hypothesis is one-way-Analysis of Variance (ANOVA).
ANALYSIS AND INTERPRETATION OF FINANCIAL STATEMENTS USING FINANCIAL RATIO AND APPLYING ANALYSIS OF VARIANCE (ANOVA) AS A STATISTICAL TOOL
This section contains the calculation and analysis of some selected variables taken into consideration. Raw data is used for calculation of ratios. Ratio analysis is a widely used tool for financial analysis. After calculation of ratios, analysis of individual ratio is being done. One-way Analysis of Variance (ANOVA) statistical is used for analysis purpose. Analysis is performed by using Software Known as SPSS.
Earning Per Share (EPS)

EPS measure the profit available to the equity shareholders on per share basis, that is the amount they can get on every share held.
EPS= Net profit after tax Prefrence dividend Total number of equity shares outstanding
The Earning per share position of the sample companies is summarize in Table given below. Table 1: EPS (in rupees) Position of Sample Companies
Year Mar -98 Mar -99 Mar -00 Mar -01 Mar -02 Mar -03 Mar -04 Mar -05 Mar -06 Mar -07 Mar -08 Mar -09 Average Cipla 51.01 57.50 22.19 28.87 33.66 41.31 52.75 13.66 20.26 9.34 9.02 9.99 29.1536364 Dr Reedys 18.44 19.54 22.77 31.21 62.53 51.76 41.52 11.69 29.81 53.79 29.05 33.29 33.78333 Glaxo 6.89 16.39 12.60 9.90 7.57 17.73 29.09 28.74 41.91 42.70 47.42 54.03 26.2475 Ranbaxy 34.75 14.28 12.80 15.05 11.17 41.55 33.80 25.07 4.80 10.21 13.26 -48.16 14.04833 Sunpharma 36.89 38.28 19.40 25.72 35.53 24.82 30.23 16.48 24.84 30.60 48.96 61.09 32.73667 Wockhard 19.66 18.37 20.39 19.75 28.18 25.70 45.54 18.76 24.29 25.03 18.00 -6.72 21.4125
Dr. Reddys has emerged as the best performer in average EPS category. Dr. Reddys has an average return of around 34 for all the years, similarly, for Sunpharma, from 2005 onwards, its has been increasing and it was 61 for the year 2009.
Cipla has an average EPS of 29.13 but this mostly because of higher earnings in the prior to years 2004. From 2005 it has been declining and has not touched even double digit, in past 3 years. Glaxo has an average return of 26.24 and the best aspect is that since 2002, EPS has been increasing and it has increased by 613% from 2002 to 2009. Wockhardt has an average of 21.41. It has been nearly constant in the past few years but due to negative profit shown in 2009 the average has come down slightly. Ranbaxy has an average of 14.04 due to negative EPS of 48.16 in 2009 and this is because of a loss of Rs.1347cr. in 2009. If we look at the average of 11 years for Ranbaxy, then it also has an EPS of Rs 20 per share but the track record is not very satisfactory. In the past years, it has not been able to provide numbers to its shareholders.
Return on Capital Employed

A ratio that indicates the efficiency and profitability of a companys capital investments. ROCE = EBIT/Capital employed Table 2: EPS (in rupees) Position of Sample Companies
Year Mar-98 Mar-99 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Cipla 32.89 27.83 25.78 27.47 29.35 25.34 27.22 29.08 29.64 25.33 20.00 19.05 Dr Reedys 17.30 13.97 14.77 28.48 51.43 23.74 14.64 2.66 7.10 33.87 9.93 10.98 Glaxo 14.48 21.17 15.35 13.05 -6.08 16.76 23.96 29.45 31.05 32.85 28.83 40.75 Ranbaxy 13.98 7.69 12.59 12.45 16.89 33.40 34.73 20.77 7.01 9.46 9.54 -20.17 Sunpharma 25.61 19.93 22.95 31.77 34.11 36.91 29.33 15.25 15.17 18.41 26.04 26.73 Wockhardt 11.16 9.84 12.40 11.29 27.80 27.60 23.69 19.44 15.70 15.49 12.94 -20.41
If we look at the average ROCE of companies from 1998 to 2009, Cipla holds the highest return. Best part of Cipla is that the firm has constant return for all
the years ranging between 32 to 25. The performance of Sunpharma is next to Cipla. But in term of stability, it is still far away from Cipla. Sunpharma has a volatile return, for instance 36% in 2003 and 15% in 2005 but Cipla is highly stable. On the other hand, Glaxo got a boost in both turn and performance. It has an average return of 22% in twelve years. This company had difficulties for three years from 2000 to 2003, but returned back on its track. Dr. Reddy has a tremendous record of return as high as 51% in 2002 and as low as 2.66% in 2005 and has a satisfactory average of 19%. The condition of return on investment is same for both companies Ranbaxy and Wockhardt. They have the same trend of rise and fall in the history of 12 years and 20% negative return in 2009.
Hypothesis Testing
ANOVA Source of Variation Between Groups Within Groups Total SS 3352.813 18260.87 21613.68 df 5 66 71 MS 670.5626 276.6799 F 2.423605 P-value 0.044475 F crit 2.353809
Since the calculated value of F is more than the table value of 2.35 (CV > TV AT 5% Significance level), the null hypothesis is rejected and hence it is concluded that the Earning per share positions of Cipla, GlaxoSmithKline, Ranbaxy, Wockhardth and Sunpharma ltd. differ significantly.
H2
The return on Capital Employed (ROCE) position of Cipla, Dr Reddys, Sunpharma, Wockhardth, GlaxoSmithKline and Ranbaxy does not differ significantly.
ANOVA Source of Variation Between Groups Within Groups Total SS 1891.984 8265.705 10157.69 df 5 66 71 MS 378.3967 125.2379 F 3.021422 F crit 2.353809
Since the calculated value of F is 3.021 which is more than the table value of 2.35(CV > TV AT 5% Significance level),the null hypothesis is rejected and hence it is concluded that the Return on capital employed positions of Cipla, GlaxoSmithKline ,Ranbaxy, Wockhardth and Sunpharma ltd. Differ significantly.
CONCLUSION
In pharmaceutical industry the return on Capital Employed (ROCE) position of Cipla, Dr Reddys, Sunpharma, Wockhardth, GlaxoSmithKline and Ranbaxy differ significantly. It means that all companies have its own internal factors which affect their return on capital employed. Cipla holds the highest return as compared to other six companies. The Earning per Share (EPS) position of Cipla, Dr Reddys, Sunpharma, Wockhardth, GlaxoSmithKline and Ranbaxy differ significantly. The earnings per share of the company do not depend upon the debt component in the capital structure but there are number of other factors which affect the Earning per shae of the company. They should look after other factors all before investing such size, growth, non-tax shield and collateral value of assets.
REFERENCES
Clausen, James. (2009), Basic Accounting 101- Asset Turnover Ratio: Inventory, Cash, Equipment and Accounts Receivable Analysis, Journal of asset turnover ratio. Diane, White. (2008), Accounts Receivable: Analyzing the Turnover Ratio, Journal of account receivable. Hutchinson, James (2010), Long Term Debt to Equity Ratio of a Business: Understand a Companys Value to its Investors and Owners, Journal of long term debt to equity ratio.
Classification and Prediction of Financial Performance in Urban Local Bodies Using Logistic Regression
Sidhakam Bhattacharya and Gautam Bandyopadhyay
Department of Management Studies, National Institute of Technology, Durgapur, West Bengal
E-mail: sidhakam@gmail.com; math_gb@yahoo.co.in.
Keywords: Urban Local Bodies, Financial Performance, Logistic Regression, Classification
INTRODUCTON
It is very difficult to develop a correct procedure to predict the performance of ULBs. The resource of an ULB primarily depends on property tax. There are non-tax and other revenues also. In addition fund from upper tiers comes in the nature of revenue or capital. Revenue grants can be used to meet the revenue expenditure whereas the capital grants are used for the purpose of acquisition or creation of capital assets in accordance with the guidelines framed by upper tiers. Therefore the revenue receipts as well as revenue payment are the main ingredients for analysis of financial performance of an ULB. The objective of this paper is to classify an ULB into two categories based on some criteria at the first
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instance and to develop a model thereafter using logistic regression. Finally the model has been validated applying the model. The data used in this paper have been collected from the Administrative Report of Municipal Affairs Department (2001-05), Government of West Bengal and from the website of that department. All tables, graph and test results have been obtained using SPSS.
LITERATURE REVIEW
The applications of Logistic Regression are mostly found in the area of corporate finance, banking and investments. The application of Logistic regression in the area of analysing financial performance of ULBs is not so encouraging. Maria Teresa Borzacchiello, Peter Nijkamp, Henk J. Scholten present a statistical modelling approach in local planning studies to test urban sustainability measures and to eventually forecast the impact of accessibility to transport systems on urban development. Madhuri Agrawal, Rudra Sensarma depict the results from logistic and count data regressions and suggest that growth opportunity, concentration and cash flow are important determinants of merger activity. Omar J. Khan, Taewon Suh, Ik-Whan G. Kwon applied logistic regression to determine which factors play the most significant role in delineating countries into the emerging, transitional and developed markets. Cathy Lawson, Douglas C. Montgomery illustrates the use of logistic regression to establish statistically significant relationships between the input and output variables of one complex business process. A multivariate statistical technique, viz. logistic regression is deployed by Aliye Ahu Gulumser, Tuzin Baycan-Levent, Peter Nijkamp in achieving the aim of their study.
RESEARCH METHODOLOGY Variables Specification

Before performing Logistic regression, we first need a method of classifying an ULB as a good or poor in respect of its financial performance for a given year. We have been able to collect the data in respect of revenue receipts and revenue payments. It is seen from the collected data that revenue receipt of an ULB consists of (i) Property Tax (ii) Non-Tax (iii) Other Tax and (iv) Revenue Grant from Government. So far the payments of an ULB is concerned we have received data of two types (i) Expenditure against Salary and Wages and (ii) Other Expenses. While there is no definitive method for defining an ULB as good or poor, we have designed certain criteria and on the basis of such criteria we have classified an ULB into two categories. Primarily we have made analysis of the data and
Classification and Prediction of Financial Performance in Urban Local Bodies...
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tried to examine the performance from different aspects. If an ULB fails to make revenue surplus it indicates poor state of financial performance like other entities. Government grant from state includes the expenditure on staff payment and portion of shared taxes. We have not received the data separately for each of the same. Therefore we have examined whether an ULB has made surplus out of government grant after making payment of salary and wages. An ULB is supposed to meet the expenditure incurred on providing basic services. Therefore we have tried to examine whether an ULB is in a position to meet such expenditure out of its own fund. If an ULB meets all three criteria in a positive way then it has been classified as good, otherwise it is poor. The study consists of a sample size of 98 distinct ULBs-year observations for four years (2001-02 to 2004-05). Dependent and selected independent variables are given in Table 1 and Table 3 respectively. Table 1: Dependent Variable
Type of ULB GOOD POOR 1 0 Satisfying all the three criteria Failed to satisfy all the three criteria
Table 2: Dependent Variable Encoding

Original Value Poor Good Internal Value 0 1
As the dependent variable or outcome is a dichotomous one, we have taken Good = 1 and Poor = 0 to indicate the choice. Table 3: Independent Variables
Name of the Variables PROPT OTHTAX NONTAX GRANT SALEXP Description of the Variables Property Tax Receipts Other Tax Receipts Non Tax Receipts Revenue Grant from Government Salary and Wages Expenses
The Statistical Technique Logistic Regression Analysis

Logistic regression is widely used for prediction based on values of a set of predictor variables. It is similar to a linear regression model but is suited to models where the dependent variable is categorical.
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The logistic regression model is a type of generalized linear model that extends the linear regression model by linking the range of real numbers to the 0-1 range. In the logistic regression model, the relationship between Z and the probability of the event of interest is described by this link function.
= ezi pi= e zii 1+e 1+e
Here the y-axis is the predicted variable pi and the horizontal axis denotes the explanatory variable zi. or zi = log(pi/1 pi) where pi is the probability the ith case experiences the event of interest; zi is the value of the unobserved continuous variable for the ith case. The z value is the odds ratio, it is expressed by
zi= 0+1xi1+2xi2++pxip
where xij is the jth predictor for the ith case j is the jth coefficient p is the number of predictors
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EMPIRICAL TESTING
The estimated results of the logistic regression model of the performance of the whole sample are summarised in Table 4. Final logistic regression equation is: Z= -0.668 + 0.007*PROPT + 0.008* OTHTAX + 0.006* NONTAX + 0.002 * GRANT - 0.009 * SALEXP. Table 4: Variables in the Equation
B Step 1a PROPT OTHTAX NONTAX GRANT SALEXP Constant
a
S.E. .003 .005 .002 .002 .002 .192
Wald 6.298 2.356 8.232 .918 19.481 12.063 1 1 1 1 1 1
df
Sig. .012 .125 .004 .338 .000 .001
Exp(B) 1.007 1.008 1.006 1.002 .991 .513
.007 .008 .006 .002 -.009 -.668
Variable(s) entered on step 1: PROPT, OTHTAX, NONTAX, GRANT, SALEXP.
Classification Accuracy
The classification table helps to assess the performance of the model by cross tabulating the observed response categories with the predicted response categories. The cutoff value is taken at 0.5. Table 5: Classification Tablea
Predicted PERFOR Observed Step 1 PERFOR Poor Good Overall Percentage
a
Poor 270 86
Good 8 20
Percentage Correct 97.1 18.9 75.5
The cut value is .500
The above table shows that Poor ULBs can be classified 97.1% correctly while 18.9% of Good ULBs can be properly classified. The overall prediction is 75.5% correct. The cutoff value can be changed to notice the change/improvement in the predicted correct response. The graphical representation is given below:
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Step number: 1 Observed Groups and Predicted Probabilities G 32 G G F G R 24 G E P Q P U GGG P E 16 GPGG GPG N GPPG GPGG C G P G PPPGPPPGG Y P P G G PGPPPPPPPPG 8 PPPPPP PGPGG PGPPPPPPPPP G G PPPPPPPPGPPPPP PPPPPPPPPPPGG PP PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPG G G G G PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPGPP PGG GG GPG GGP G P PG G GPP G G G Predicted Prob: 0 .1 .2 .3 .4 .5 .6 .7 .8 .9 1 Group: PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGG Predicted Probability is of Membership for Good The Cut Value is .50 Symbols: P - Poor G - Good Each Symbol Represents 2 Cases.
Tests of Goodness of Fit

The present study also estimated the Hosmer and Lemeshow statistic, which provides useful information about the calibration of the model. The observed significance level for Chi-square value is found to be 0.619 (Hosmer and Lemeshow test), which indicates that there is not much difference between observed and predicted values. The Chi-square value (6.256) of this model indicates that logistic regression is very meaningful according to the dependent variable in relation to each specified independent variables. Table 6: Hosmer and Lemeshow Test
Step 1
Chi-square 6.256
df 8
Sig. .619
The significance value of omnibus tests shows how well the model performs. Table 7: Omnibus Tests of Model Coefficients
Chi-square Step 1 Step Block Model 52.815 52.815 52.815 Df 5 5 5 Sig. .000 .000 .000
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Validation of the Model

Model validation requires checking the model against independent data to see how well it predicts. To validate our model, we have taken 98 ULBs samples for one year (2005-06), the results of which are given in the table 8. Table 8: Classification Tablea
Predicted CRITE2 Observed CRITE2 Poor Good Overall Percentage
a
Poor 81 3
Good 1 11
Percentage Correct 98.8 78.6 95.8
The cut value is .500
CONCLUSION
The study employs the binary logistic regression model, to determine the factors which significantly affect the performance of the ULBs. The model can classify up to 75.5% into two categories good or poor based on the selected variables. Multi-logistic regression can be applied in future for classification purpose.
REFERENCES
Aliye Ahu Gulumser, Tuzin Baycan-Levent, Peter Nijkamp Beauty is in the eyes of the beholder: a logistic regression analysis of sustainability and locality as competitive vehicles for human settlements Int. J. of Sustainable Development 2009 - Vol. 12, No.1 pp. 95 - 110. Cathy Lawson, Douglas C. Montgomery: A logistic regression modelling approach to business opportunity assessment: Int. J. of Six Sigma and Competitive Advantage 2007 - Vol. 3, No.2 pp. 120 - 136. Maria Teresa Borzacchiello, Peter Nijkamp, Henk J. Scholten: A logistic regression model for explaining urban development on the basis of accessibility: a case study of Naples: Int. J. of Environment and Sustainable Development 2009 - Vol. 8, No.3/4 pp. 300 - 313. Madhuri Agrawal, Rudra Sensarma: Determinants of merger activity: evidence from India Int. J. of Financial Services Management 2007 - Vol. 2, No.4 pp. 277 288.
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Omar J. Khan, Taewon Suh, Ik-Whan G. Kwon A path to mature market: logistic regression approach to delineate between emerging, transition and developed markets Int. J. of Business Innovation and Research 2006 - Vol. 1, No.1/2 pp. 129 - 143.
A Study of Market Efficiency of Indian Stock Market

Manju Lamba and Richa Sharma
I.T.S Management & ITI Institute, Mohan Nagar, Ghaziabad
E-mail: manju1234lamba@gmail.com; richa.sharma1103@gmail.com
Keywords: Seasonal Anomalies, Monday Effect, Week Days Effect, Stock Market Efficiency, Indian Stock Market, Random Walk Hypothesis
INTRODUCTION
The stock market of India have witnessed a radical transformation in last decade or so owing to the judicious policy measures implemented through the financial sector reforms of nineties. An efficient market is defined as a market where there are large numbers of rational, profit maximizes actively competing, with each trying to predict future market values of individual securities, and where important current information is almost freely available to all participants (Fama, 1965). Hence in efficient market the prices reflect the effects of both the information pertaining to the events occurred in the past as well as those which are expected to occur in the near future based on the information estimates. How quickly the stock prices responds towards these information is what that shows the efficiency of stock market. The efficient stock market provides ample of opportunities to investors to diversify their portfolio in different types of assets.
Various Anomalies
Among the more well-known anomalies are the size effect, the January effect, Monday effect, Friday effect and the day-of-the week effect (Nath & Dalvi December 2004).
LITERATURE REVIEW
Earlier studies have found the existence of the day of the week effect not only in the USA and other developed markets but also in the emerging markets like Malaysia, Hong Kong, Turkey). For most of the western economies, (U.S.A., U.K., Canada) empirical results have shown that on Mondays the market has statistically significant negative returns while on Fridays statistically significant positive returns. In other markets such as Japan, Australia, Singapore, Turkey and France the highest negative returns appear on Tuesdays (Nath & Dalvi December 2004). The most satisfactory explanation that has been given for the negative returns on Mondays is that usually the most unfavourable news appears during the weekends. These unfavourable news influence the majority of the investors negatively, causing them to sell on the following Monday. The most satisfactory explanation that has been given for Tuesdays negative returns are that the bad news of the weekend affecting the USAs market, influence negatively some markets lagged by one day (Nath & Dalvi December 2004). In most developed markets such as the USAs, the United Kingdoms and Canadas, most studies, Cross (1973), Gibbons & Hess (1981), Keim & Stambaugh (1984), Jaffe & Westerfield (1985), Board and Sutcliffe (1988), and Kohers and Kohers (1995), Financial Times Index (UK), Nikkei Average Index (Japan), Hang Seng Index (Hong Kong), FAZ General Index (Germany) and many others, have come to the conclusion that Mondays average returns are negative and Fridays are positive. In other words, the stock exchange market starts downwards and ends upwards. On the other hand, studies on the Spanish stock market have revealed that there is no day of the week effect. Solnik(1990) focused on the period 1978- 1987 and examined the CAC Index of Paris Bourse. Their results showed strong and persistent negative mean returns on Tuesdays. Solnik (1990) wondered whether the settlement procedure could explain the pattern of daily returns observed in previous studies of the Paris Bourse (Nath & Dalvi December 2004).
A Study of Market Efficiency of Indian Stock Market 233
Dubois and Louvet (1996) re-examined the day of the week effect for the French stock market along with other markets such as the US, UK, German, Japanese, Australian and Swiss markets, during the period 1969-1992 using standard statistical approaches and moving averages. They observed that Wednesdays presented the highest return while the day with the lowest (negative) return was Monday for all the above markets except the Japanese and the Australian (Nath & Dalvi December 2004).

1. To analyze the existence of anomalies in Indian Stock Market such as Monday effect, day of the week effect, Friday effect. 2. To examine whether Indian stock market, with focus on BSE SENSEX, is efficient or not. 3. To examine the random walk hypothesis in different companys under BSE SENSEX.
HYPOTHESIS
(i) H0: The stock prices move randomly in case of BSE SENSEX H1: The stock prices do not move randomly in case of BSE SENSEX (ii) H0: The returns on all trading days for BSE SENSEX are same. H1: The returns on all trading days for BSE SENSEX are not same.
DATA AND METHODOLOGY

Data used in this research is based on daily return of BSE SENSEX in year 2009. In our research we have used secondary data. Various tests have been used such as runs test and ANOVA to study the different objectives.
Sample Size
One year daily return of BSE SENSEX from 01-01-2009 to 31-12-2009 has been taken as sample size. Total 36 complete weeks have been extracted, for which the day of the week effect gives more significant and better results.
Sources
Secondary sources are being used. Various secondary sources: 1. Website of BSE 2. Journals 3. Articles etc. 5. Business Beacon Database
Tools and Techniques Used

Tools used in the study are: 1. Runs Test 2. ANOVAs
ANALYSIS Run Test

Formula used: MEAN=(2N1N2/N1+N2)+1 SD^=(2N1N2(2N1N2-N1-N2)/(N1+N2)^(N2+N1-1) Z=R-MEAN/SD
Monday Effect 18.48 2.9 0.16 N1=18 N2=17 R=18 Tuesday Effect 20.48 3 0.016 N1=20 N2=19 R=20 Wednesday Effect 20.48 3 0.016 N1=20 N2=19 R=20 Thursday Effect 20.48 3 0.016 N1=20 N2=10 R=20 Friday Effect 23.4 3.3 0.12 N1=23 N2=22
Mean SD^ z
According to the probability theory, 95% of the area under the normal curve lies within +/- 1.96 standard deviation of the mean. Since the calculated value 0.16, 0.016, 0.12, is less than +/- 1.96, we can say that the runs have occurred by chance. Therefore the null hypothesis, the stock prices move randomly in case of BSE SENSEX, is accepted here. This shows that the price movement on all days do not follow the same path but is actually dependent on the market condition. Hence Random Walk Hypothesis exists in the market.
Two Ways Anova

Table 1: Two Ways ANOVA
Source of Variation Rows(Weeks) Columns(Days) Residual(Error) TOTAL Sum Square (S.S) 1485966409 56380.52373 6149419.377 1492172209 D.F 31 4 124 159 M.S.S 47934400.29 14095.13093 49592.09175 F-Value 966.5734716 0.284221343
As it is clear from the table, that F-tabulated (at 5% significance level) for week days effect is more than the F-calculated. So the null hypothesis is accepted here. It means that there is very nominal difference in the return in the week days such as effect of Monday on Tuesday and so on. But this difference is not significant so as to be taken as a means to justify the non-efficiency of the market. Thus the result for week days return shows that Indian stock market w.r.t BSE SENSEX is efficient during the period of the study. Although due to certain factors, the return varies from one day to another, which affects the investments of the retail as well as corporate investors significantly. But overall stock prices under SENSEX are randomly moving within the range. The F-value for within the days study i.e., from Monday to next Monday, is significantly high. It is also found that the return on weekly basis is significantly getting affected by the news in the past week, any changes in the government policy or any announcement and respective performance of other developed market across the world.
FINDINGS
The run test used in the study shows that price movements have occurred by chance; hence we can say that anomalies exist in Indian stock market, with special focus on BSE SENSEX. The stock prices follow random walk hypothesis. In case of Monday the standard deviation is less as compared to Friday. This shows that Friday has got highest impact of all the days and the subsequent movement in the other developed stock markets of the world. The impact of Friday has been seen on Monday but the impact is lesser than all week days in case of Indian market. The continuous movement of stock prices, respective changes in other stock markets, any news related to companies or market or government in domestic as well as foreign market has an impact on the relative stock return and hence the market efficiency is affected.
It was found that the week effect is more significant in case of Indian stock market with focus on BSE SENSEX as compared to week days effect. The effect can be seen on the return with slight variation in the value.
CONCLUSION
The findings show that Monday and Friday effects are not significant, as is the case with other stock markets around the world, seasonality does exist. We also reached to the conclusion that the Day of The Week Effect which was clearly visible for the entire range of Data, Simply did not occur as the movement did not produces significant change in the return value. The mean return for all days remains same. This is an important conclusion which implies that during the period the market found to be perfectly efficient. This can be concluded in the sense that all investors think the same way and were driven by the same instincts during the period of study, thus ruling out any chance of any investor making an abnormal return at any given day.
REFERENCES
Balaban, E. (1995), Day -of-the-Week Effects: New Evidence From an Emerging Stock Market, Applied Economics Letters. Board J.L. and Sutcliffe C.M. (1988), The Weekend Effect in the UK Stock Market Returns. Board, J.L. and Sutcliffe, C.M. (1988), The Weekend Effect in the UK Stock Market Returns, Journal of Business, Finance and Accounting. Dimson Elroy and Mussavian Massoud (1998), A brief history of market efficiency, Published in European Financial Management, Volume 4, Number 1, March 1998. Dubois, M. and Louvet, P. (1996) The Day-of-the-Week Effect: International Evidence, Journal of Banking and Finance. Fama, E.F. (1965), The Behavior of Stock Market Prices, Journal of Business, January 1965. Fama, E.F. (1970), Efficient Capital Markets: A Review of Theory and Empirical Work, Journal of Finance, Vol. 25. Gibbons, M. and Hess, P. (October 1981) Day of the Week Effects and Asset Returns, Journal of Business.
Jaffe, J. and Westerfield, R. (June 1985) Patterns in Japanese Common Stock Returns: Day of the Week and Turn of the Year Effects, Journal of Financial and Quantitative Analysis. Keim, D. and Stambaugh, R. (July 1984) A Further Investigation of the Weekend Effect in Stock Returns, Journal of Finance. Kohers, T. and Kohers, G. (1995) The Impact of Firm Size Differences on the Day of the Week Effect: A Comparison of Major Stock Exchanges, Applied Financial Economics. Nath C Golaka & Dalvi Manoj (December 2004), Day Of The Week Effect And Market Efficiency Evidence From Indian Equity Market Using High Frequency Data Of National Stock Exchange. Solnik B. (1990) The Distribution of Daily Stock Returns and Settlement Procedures: The Paris Bourse Journal of Finance. Solnik, B. and Bousquet, L. (1990) Day - of- the- Week Effect on the Paris Bourse, Journal of Banking and Finance.
Corporate Governance in India: Clause 49 of the Listing Agreement

Arijit Sen
Leeds University Business School, University of Leeds, U.K. & Association of British Scholars (ABS)
E-mail: a.sen06@members.leeds.ac.uk
Keywords: Corporate Governance, Clause 49, SEBI, Listed Companies, Hypothesis, Annual Reports, NSE, BSE, Liberalization, Sample, Leverage
INTRODUCTION
Corporate governance has been a topic of hot debate in developed countries like U.K. & U.S.A. for the last two decades. For the past few years it has also been a concern for developing country like India because of the scams that occurred since liberalisation from 1991, for e.g. the UTI scam, Ketan Parekh scam, Harshad Mehta scam & the latest Satyam Fraud scam. The principal characteristic of effective corporate governance is transparency. Transparency means adequate & timely dissemination of information by a company of its operations to its stakeholders. The company on its own should come out with adequate & timely disclosures of actual happening & honest anticipation of material events that affects the value of the company.
Corporate Governance in India: Clause 49 of the Listing Agreement 239
HYPOTHESIS (a) Hypothesis 1

Better profitability of company results in better disclosures on corporate governance.
(b) Hypothesis 2
Market performance of firm has a significant positive relationship with corporate governance disclosures.
(c) Hypothesis 3
Size of the company is positively associated with extent of corporate governance disclosers by the company.
METHODOLOGY
50 companies were selected for the study. Any company with its registered office in eastern India constituted the sample. Companies included in the sample belonged to various industry groups & sectors. Majority of the companies belonged to tea (28%), leather (24%) & jute (16%) industry. Corporate governance disclosure practices in this study were examined from the annual reports of companies selected [Bhuiyan and Biswas (2007)]. A list of 67 parameters [based on the list of items suggested by SEBI in Clause 49 of the listing agreement] & other non-mandatory items needed to be disclosed in the corporate governance section in the annual report was prepared. The annual report was analysed using content analysis technique. Annual reports of the companies were analysed for the presence of nine broad dimensions as suggested by SEBI. Also, 67 statements related to each of these dimensions, Management Discussion & Analysis (MDA) & miscellaneous category were drawn as a framework to calculate disclosure score in order to understand the disclosures of these dimensions in the annual report. Each company was awarded a score of 1 if the company disclosed the concerned issue & 0 otherwise. The net score of each company was found by adding all the individual scores of various sub-dimensions. The maximum score that a company could obtain was 67 i.e. if all the items were disclosed. The 67 statements included both mandatory and non- mandatory stipulations of the regulation.
Corporate Governance Disclosure Index ( CGDI) was formed using the following formula [Bhuiyan and Biswas (2007)].
CGDI = Total Score of the Individual Company Maximum Possible Score Obtainable by the Company * 100
The value of CGDI ranged between 0 & 100 with 0 reflecting the worst disclosure & 100 representing the best disclosure practices. The following regression equation was formulated for this study:
CGDI = 1LnVA+2ROE + 3MBV+4PI + 5INDUM + et
Dependent Variable
Corporate Governance Disclosure Index (CGDI).
Independent Variables (a) Performance

(i) Market to Book Value (MBV) = Market value of common stock / value of common stock. (ii) Tobins Q = (BV of preference stock + BV of borrowings + BV of CL + MV of common stock / BV of total assets denoted by FA + INV + CA ) with all values computed at the end of the year.
(b) Profitability
(i) Return on Assets ( ROA) = Profit After Taxes (PAT) / total assts. (ii) Retun on Equity (ROE) = PAT / net worth.
(c) Size
(i) Market Capitalisation ( LnMC) : Natural log of market value of common stock in lakhs. (ii) Book Value of Assets ( LnBVA) : Natural log of book value of assets in lakhs.
(d) Control Variables

(i) Proportion of Independent Non- Executive Directors (PI) : Percentage of Independent Directors on the board.
(ii) Debt- Equity Ratio (DE) = Total Debt / Net Worth. (iii) Index Dummy (INDUM) : 1 if the firm is included in NSE/BSE index i.e. Nifty/ Sensex , otherwise 0.
RESULTS
Table 1: Frequency Distribution of CGDI
Total Score (%) Above 90 81-90 71-80 61-70 51-60 Below 50 Total Frequency (N) 5 21 11 8 2 3 50 Cumulative (N) 5 26 37 45 47 50 Percentage (%) 10.0 42.0 22.0 16.0 4.0 6.0 100.0 Cumulative (%) 10.0 52.0 74.0 90.0 94.0 100.0 -
(a) From Table 1 it can be seen that 5 companies received a score of above 90%, 21 have a score between 80%-90 % , 11 have a score between 70%-80%, 8 have a value between 61%-70%, 2 have a value between 51%-60% & 3 have received a value of below 50%. It can be concluded from the above analysis that disclosure practices in the sampled companies are reasonable & few companies have a lower value.
(b) Item Wise Disclosure Of Corporate Governance

The item-wise disclosure reveals that mandatory as well as non-mandatory disclosure have not been disclosed by all the companies. Only 9 out of the total mandatory items have been disclosed by 100% companies. 14 items are disclosed by more than 90%, 8 items are disclosed by more than 80% & 16 items are disclosed by less than 50% of the companies. (c) Detreminants of Disclosures From the analyses it can be inferred that the extent of disclosures varies among companies. Singhvi & Desai (1971) found financial disclosures to be related to earnings margin, size & listing status. Again, Bhuiyan & Biswas (2007) found local ownership, Securities & Exchange Commission notification & size to be the significant factors of corporate governance disclosures.
(d) Regression Results

Table 2: Regression of CGDI on Other Variables g
Intercept LnBVA MBV ROE PI DE INDUM R2 Adjusted R2 F- Stat. Durbin-Watson VIF CGDI (1) 34.686*** (3.060) 9.216*** (3.785) 0.230 0.214 14.328*** 1.000 (2) 36.881*** (3.346) 8.058*** (3.326) 1.297** (2.061) 0.120 (0.824) 0.085 (0.682) 0.036 (-0.290) 0.315 (-1.816) 0.294 0.264 9.774*** 2.102 1.057
Note: Table 2 represents the regression model with CGDI as the dependent variable & other variables are the independent variables. t-statistics are reported in parentheses. ** and *** indicate significance levels at 5% & 1% levels.
From Table 2 it can be seen that in model 1, LnBVA explains 23% variance in CGDI, as shown by R2. This increases to 29.4% when MBV enters the equation in model 2. Adjusted R2 is 0.214 for model 1 & 0.264 for model 2. In model 1 the F-ratio is 14.328 & is highly significant at less than 1% level of significance & in model 2 becomes 9.774 which is also significant at less than 1 % level of significance. The Variance Inflation Factor (VIF) is used to assess multicollinearity. The VIF lies between 1.0 &1.057. Threshold levels of tolerance (not shown in the above table) of above 0.10 & VIF scores of less than 10 suggest minimal multicollinearity & stability of the parameter estimates. From Table 2 it can be inferred that LnBVA (b = 8.058, t-statistic = 3.326 & p < 0.01 ) is positively contributing towards disclosures. The only significant control variable is MBV (b = 1.297, t- statistic = 2.061 & p < 0.05 ) while all other control variables have been excluded as these do not have a significant positive or negative coefficient indicating that these variables do not influence CGDI (dependent variable). It should be noted that DE & INDUM have negative coefficients.
Table 3: Regression of CGDI on Other Variables g

Intercept LnBVA MBV ROA PI DE INDUM R2 Adjusted R2 F- Stat. Durbin-Watson VIF CGDI (1) 34.686*** (3.060) 9.216*** (3.785) 0.230 0.214 14.328*** 1.000 (2) 36.881*** (3.346) 8.058*** (3.326) 1.297** (2.061) 0.181 (-0.525) 0.085 (0.682) 0.036 (-0.290) 0.315 (-1.816) 0.294 0.264 9.774*** 2.102 1.057
Note: Table 3 represents the regression model with CGDI as the dependent variable & other variables are the independent variables. t-statistics are reported in parentheses. ** and *** indicate significance levels at 5% & 1% levels.
Alternative proxies of performance, profitability & size were used to check the robustness of results .MBV was replaced by Tobins Q, ROE was replaced by ROA , & LnBVA was replaced by LnMC as independent variables. It can be seen that when Tobins Q replaced MBV the only variable that explained the variation in CGDI was size i.e. LnMC & LnBVA . Also, all the results remained the same when ROE was used instead of ROA. Both performance (MBV ) & size (LnBVA) explained the variation in CGDI. Again when LnBVA was replaced by LnMC the only significant variable that explained the variation in CGDI was size i.e. LnMC. From the regression analysis it can be concluded that profitability is not significantly related to disclosure of corporate governance practices even when ROE or ROA is used. It can be seen that firm performance to an extent is positively related to disclosure but it does not sustain the robustness check while size of company is found to be positively & significantly related to disclosure of corporate governance practices. Hence , we accept Hypothesis 3 & reject Hypothesis 1 & 2.
CONCLUSION
(a) The size of the company is a significant determinant of disclosure. The extent & the amount of disclosure is better in larger companies as compared to the smaller ones. One reason may be that large firms have to disclose
more information related to corporate governance practices since they get a lot of attention from the investors. [Cheung et. al (2007) ] (b) There is substantial scope for improvement in the corporate governance disclosure practices. Many companies did not disclose a number of important issues. Not only the non-mandatory but also many mandatory requirements have not been disclosed by the companies. Finally, it should be noted that although SEBI had issued various guidelines for improving corporate governance norms in India, the onus to follow the same lies with the companies to compete in the global economy.
REFERENCES
Bhuiyan, M. H. & Biswas, P. (2007), Corporate Governance & Reporting: An Empirical study of the Listed Companies in Bangladesh Journal of Business Studies, Vol. 28, No.1, available at http://papers.ssrn.com/sol3papers.cfm? abstract _id=987717. Cheung, Y., Jiang, P., Limpaphayom, P. & Lu, T. (2007) Corporate Governance in China: A step forward ? European Financial Management, Vol.16., No.1, pp.94123. Singhvi, S.S. & Desai, H.B. (1971) An Empirical Analysis of the Quality of Corporate Financial Disclosure The Accounting Review, January, pp.129-138.
Impact of Globalization on Consumer Buying Behavior with Competitive Strategy Change in Food-Retail Industry
Namrata Gain
Shri Rawatpura Sarkar Group of Institution
E-mail: namratagain@gmail.com
INTRODUCTION
The term Globalization describes the increase mobility of goods, services, labour, technology and capital throughout the world. Globalization is not a new development. The expansion of international trade and foreign investment has not been the result of some grand design imposed on the global economy. It has been an ad hoc, decentralized, bottom-up process resulting from two developments of the 1980s: the collapse of global communism and the demise of the Third Worlds romance with import substitution. The fall of the Berlin Wall and the final disintegration of the Soviet empire two years later released 400 million people from the grip of centrally commanded and essentially closed economic systems. Meanwhile, the debt crisis of 1982 and the resulting Lost Decade of the 1980s imposed a painful hangover on many Third World nations that had tried and failed to reach prosperity by shunning foreign capital and by protecting and subsidizing domestic infant industries. In the mid-1970s and China later that decade, LDCs from Mexico and India to Argentina more recently
have been opening their markets and welcoming foreign investment. The globalization of the last decade has not been the result of a blind faith in markets imposed from above but of the utter exhaustion of any alternative vision. A key challenge faced by the retailer is creating products and services, which would be successful in the market. An accurate understanding of consumer needs helps the retailer in creating a product that is likely to be successful in the market consumer understanding or an understanding of the consumer buying behavior is the starting point of strategy creation. It is not only important to understand what consumers know about a product, but also what they do not know. This helps in determining the channels of communication and the product that need to be creating to cater to the needs of the customer. Understanding customer knowledge can also help firm asses how well it has achieve its product positioning goals. Its product is perceived if there is a good match or not. Then, positioning strategy can deem a success.
CONSUMPTION OF BRANDED FOOD PRODUCTS

Table 1
Respondents A B C Yes No Not necessary 30 50 20
Chart No. 1
Interpretation
It is very clear 50% of consumer are not habitual to use branded food products but still 30% of consumer are used to of branded product.
Impact of Globalization on Consumer Buying Behavior with Competitive Strategy... 247
AWARENESS ABOUT INTERNATIONAL BRANDS

Table 2
Respondents A) Yes B) No 53 47
Chart No. 2
Interpretation
53% of Consumer are aware about the international Brands & 47% of consumer still dont have awareness regarding foreign brands of food products. For more awareness about the international brand we need to take help from government and NGOs.
INVESTMENT OF AVERAGE MONTHLY INCOME IN FOREIGN MARKET

Table 2
A) 2% to 5% B) 5% to 10% C) 10% to 20% Respondents 72 22 6
Chart No. 3
Interpretation
72% of consumer is investing 2% to 5% part of their average Monthly Income in foreign Market. It shows awareness about the investment in foreign market but invested % of their salary is very less.
CRITERIA BEFORE BUYING THE PRODUCT

Table 4
Qu.8. What is your Preference Criteria before Buying the Product? A) B) C) D) a. b. Need of the Product Product Price Food Quality Product Brand Indian Brand Foreign Brand Respondents 68 12 16 4 1.8 2.2
Chart No. 4
Chart No. 4 (1)
Interpretation
In Raipur City 68% of consumer select the product for buying on them product need. And some of consumer prefer brand of product before buying and especially foreign brands.
IS GLOBALIZATION IS GOOD
Table 5
Respondents A) Yes B) No C) Dont Know 51 19 30
Chart No. 5
Interpretation
51% of people are in favor of globalization because they believe countrys development is requiring goes beyond the geographical parameter of the country.
GLOBALIZATION LEADS TO DIVERSIFY THE INVESTMENT

Table 6
Respondents A) Yes B) No C) Dont Know 47 13 40
Chart No. 6
Interpretation
47% consumer believes through scope of globalization they diversify their investment.
IS INVESTMENT AFFECTS THE MARKETING STRATEGIES OF THE FOOD RETAILERS

Table 7
Respondents A) Yes B) No 86 14
Chart No. 7
Interpretation
86% consumer believes marketing strategies affects their investment. Sales promotional activities, discounts.
HOW OFTEN DO YOU VISIT FOOD RETAIL SHOPS IN A MONTH

Table 8
Respondents Once in a week Once in every 15 days Once in 1 month 79 14 7
Chart No. 8
Interpretation
79% consumer are visits retail shops weekly, apart from the monthly visit.
HOW WOULD YOU DECIDE WHICH FOOD RETAIL SHOPS TO VISIT

Table No. 9
Respondents By Advertisement By International Brands By Friends & Relatives No Criteria 82 6 3 9
Chart No. 9
Interpretation
By advertisement 82% consumer decide to go for purchase of food products.
HOW MUCH YOUR AVERAGE EXPENDITURE HABITS IN A MONTH

Table 10
Respondents Rs.5000 to Rs.10000 Above Rs.10000 Less than Rs. 5000 70 21 9
Chart No. 10
Interpretation
70% of consumer spend rs.5000/- to rs.10000/- in a month only for food products
ARE YOU SATISFIED WITH THE PRICES, PRODUCTS & SERVICES PROVIDED BY THE FOOD RETAILER
Table 11
Respondents Yes No 38 62
Chart No. 11
Interpretation
According to data 62% consumers is satisfied from the product & services of the food retailer.
DO YOU CONTINUE TO BUY, IF THERE IS DECREASE IN INCOME

Table 12
Respondents Yes No If yes, than what time do you purchase more? Festivals Monotonous customer 61 39
22% 78%
Chart No. 12 (1)
Chart No. 12 (2)
Interpretation
61% consumers are preferred continue shopping when their income is decrease, because food products are necessary items for every person.
AS PER NEW ERA OF GLOBALIZATION WHAT SERVICES WOULD YOU EXPECT

Table 13
In Quality In Price In Brand In Product wise performance Respondents 31 29 19 21
Chart No. 13
Interpretation
39% of consumers are expecting from as advantages of globalization is related to product quality provided by the various companies.
HOW FOREIGN MARKET INFLUENCE IN DOMESTIC GDP

Table 14
Respondents Price Quality Advertisement 12 10 78
Chart No. 14
Interpretation
Most of the customers believes domestic GDP influence by the advertisement
ARE YOU AWARE OF QUALITY CERTIFICATION

Table 15
Yes No If Yes then specify Respondents 47 53
Chart No. 15
Interpretation
53% consumers are not aware about the Quality Certification. It means this is the area where we have to do something About Quality Certification.
WHAT IS THE AVERAGE WALKING CUSTOMER IN A DAY

Table No. 16
Respondents 50 100 150 More than 150 15 17 13 5
Chart No. 16
Interpretation
17% consumers believe their no. of walking customer daily is 100 and according to walking they are preparing strategy.
WHAT IS YOUR PERCEPTION ABOUT INTERNATIONAL BRAND

Table 17
Retailers/Respondents ? ? ? Good Average Bad 23 22 5
Chart No. 17
Interpretation
This is good for India 23% of retailers believes international branding is good for us; through globalization we can earn more and more foreign currency.
DO FREE DISPLAYS AND DISCOUNTS ENHANCE BRAND AWARENESS

Table No. 18
Yes No 48 2
Chart No. 18
Interpretation
96% believes free display and discount enhance the brand awareness. Its a technique which is helpful to increase the sales turnover.
IS IT FRUITFUL TO CONVERT A SALE BY SUGGESTING BRAND TO THE CUSTOMER?

Table No. 19
Yes No 35 15
Chart No. 19
Interpretation
Most of the retailer believes suggestion for brand is a good technique for increase sales. According to my perception that consumer awareness regarding Quality standard and global environment is very necessary because most of the consumer like house -wifes, kids and that persons who is working that field where they are not bound to get the knowledge. For implementation of this we need to take government help and social welfare organizations to motivate more and more consumer/marketers about their rights as well as quality product, promotional activity, advantage and disadvantage of the advertisement. Then only we can say globalization is very useful for consumer. Globalization improves the economy of the country most of the consumer as well as retailer believes. It also affects the buying behaviour of the consumer as per data. Through globalization India get the opportunities to increase the foreign currency, it will help to increase GDP ratio of economy. But negative aspect of globalization is it leads to loss of country power/authority. It leads to wrong distribution of income within the country because most of the consumers are not aware and not able to get benefits of globalization.
REFERENCES
http://www.globalization101.org/What_is_Globalization.html. http://economics.about.com/od/globalizationtrade/l/aaglobalization.htm. Retail management- By Prasnna chandra. Through Questionnaire.
Customer Relationship Management for NGOs

Raju G., Shamaile Nabi and Manvendra Pratap Singh
Department of Management Studies, Galgotias College of Engineering and Technology, Greater Noida
E-mail: drrajug@yahoo.co.in; shamaile.nabi@empi.ac.in; manvendra.p.singh@gmail.com
Keywords: ICT, CRM, NGO
PROFIT
Is the most important driving force for all kind of economic activities and services. Therefore, it is very difficult for non-profit organization or NGOs to sustain, exist, grow or else grow and enhance its set of activities. Needless to say, NGOs relationship building, we have taken up a typical case, keeping in mind the above stated facts, how an NGO can use CRM; would say eCRM for customer acquisition, retention and life-time value. We have successfully implemented CRM for NGOs.
THE NGO Nature Club of India

Is engaged in applied research and transfer of technologies developed for
Customer Relationship Management for NGOs 261
Greenery and Waste recycling falling under Environment and Waste management. Its aims increasing greenery, pollution control & study of plant life in wide range of Topography and Climatic condition. They also do manufacturing and marketing of the product, an organic liquid manure with brand name Bio-Fert-M.
The Organization Engaged in
1. Solution for Environmental Issues 2. Waste Management (Both, Degradable and Non-Degradable Material) 3. Hydroponics (Soil-less Plantation) 4. Organic Farming 5. Vermicomposting 6. Sericulture 7. Pisciculture Apart from the above engagement the NCI involved in manufacturing in organic liquid manure which is used for Hydroponics and for Agricultural use. The technology they are using is the very unique and very useful for the environmental work. The technology is Hydroponics which is very useful for urban areas for greenery. Technologies of growing plants without 4S (i.e. Soil, Sun, Space & Service) by using Alam Hydroponics and Bio-Fert-M as nutrient, which served all requirements for all types of plants (rooting to fruiting). It is also called the method of 30 words and 30 drops MIX 1ml (30 drops) OF NUTRIENT (BIO-FERT-M) IN ONE LITER OF POTABLE WATER AND PUT THE SHOOT OF FOLIAGE / FLOWERING PLANTS (WITH OR WITHOUT ROOT) IT WILL BECOME A PLANT BEFORE A MINUTE PASSES. There are different aspects of Hydroponics (a) Educational (b) Social and (c) Commercial. The organization has started their activities in 1993 after finding the result of Bio-Fert-M, with schools through conducting workshop & seminars under the syllabus of SUPW (Social useful productive work) apart from this these activities they have interacted with farmers for the use of Bio-Fert-M as foliage fertilizer, by using this, the horticulture and agriculture produce can be increased by 10% to 100% with respect to the normal use of other organic /inorganic fertilizer. The organization has been registered under VIPNET of Vigyan Prasar, Department of Science & Technology, Government of India, New Delhi, in 2002. On the basis of twelve years of work, a guidebook named Fun with Plants, Hydroponics and a
Hydroponics Kit-bag has been developed. After few years people realized their work and they have got recognition from different national and international organization. For running their full fledged activities they were requiring huge investment for running marketing program. Being an NGO they were looking for social cause i.e. minimum bearing price but on another side they were facing financial crunch with. So, gradually they have started their activities with the support of different government and nongovernment agencies and getting return from the sale of Bio-Fert-M. They have not used the typical Business Model i.e. profit only, but they were missing one thing that without good return they can not run their extended marketing and awareness program. So they have decided not to raise the price but to move slowly and to put fewer burdens on customers pocket. After few years they have realized that they are not getting more and more new customers and also not maintaining the repeat purchase from the existing customers.
The Problems they have Realized
Non-availability of Bio-Fert-M at every location No further information regarding product details Lack of services Logistics Problem Lack of promotional activities etc. In spite of different achievement the organization is unable to find the proper business model and assistance from the government and other funding agencies to generate their revenue, so, that, they can run their regular program. If we will see the situation the NGO is the most neglected sector in India, and it suffers from severe lack of funds, not equipped with much-needed marketing guidelines, or even customer knowledge or data-base to tap the huge market potential for fund generation and relationship building. In short: NGO sector in India represents an effective social change agent but suffers from perennial funds crunch. This makes a clear case for marketing principles and CRM methodologies to be applied in order to enable to develop maintain and sustain customers with long-term perspective of relational marketing rather than transactional marketing. The Solutions: Customer Relationship Marketing is about attracting, enhancing, establishing and maintaining successful relational exchanges. Furthermore, satisfaction is related to repeat purchase. The CRM implementation in this case revolves round Customer Retention and Customer Acquisition Strategy through the Web marketing Mix identifies four online marketing strategic, operational,
organizational and technical critical factors: the Scope (strategic issues), the Site (operational issues), the Synergy (integration into the physical processes) and the System (technical issues). Need and objective of CRM Implementation: Broadly speaking, the following are Nature Club of India the identified requirement for CRM Implementation. It would serve the following marketing development objectives: 1. 2. 3. 4. 5. Gain New Customers Improve Customer Service Customer Retention Creating New Marketing Channel (e. channel) Direct Promotion through Direct Communication (one-2-one Marketing)
The Purpose of Case Study
1. The purpose of the case study is to assist Nature Club of India to help first understand the CRM methodology works as an effective marketing tool, with less long-term investment. 2. This is no way a techno-economic study for actual implementation of CRM. The case study is helping understand the marketing problem and find out the appropriate solution.
CRM
This paper reports on a study of the adoption and use of CRM in the NPO/NGO sector. In particular, the elements of CRM are examined in these organization and executives perceptions of the main IT components that enable responsive CRM are explored. CRM is classified into five stages of sophistication and a framework for CRM adoption is developed. A nongovernmental organization will soon bring together a network of businesses aspiring to promote corporate social responsibility, or corporate citizenship, using a well-known western concept, Customer Relationship Marketing (CRM). After making an analysis of the situation The e in eCRM defines as web-based, providing Web access to the customer database on the server. Also, when customers and prospects contact an effective response to these inquiries.
Benefits of eCRM
Supplier Benefits Global Presence Cost Reduction Through More Efficient Process Less Personnel Needed Additional Information about Customer Acceleration of The Value-Added Supply Chain Higher Margin Through Elimination of Intermediaries Improved Customer Loyalty Through Round-The-Clock Customer Benefits Global Selection Efficient Business Transaction, Increase service Quality Individual and Independent Access to Company Services Customized Products and Services Fast response Times To Inquiries/Order Long Term Price Reduction Improved Customer Service Quality, 24 Hour Service
CRM AND NGO

The participation of NGOs in the socio-economic development and change, especially in the developing world is increasing day by day. In the Indian context, the NGOs have attracted some of the best mind in their field, adopted and applied modern technology and management concepts in furthering their mission. NGOs through basically believe in maintaining a database of people, retaining them and carrying them forward to attain their desired objective. The whole process revolves around the basic philosophy of Customer Relationship Management; still there are none who have yet applied it to carry on their business. More importantly, the management thinkers and experts doubt their economic viability. There have been numerous workshops on CRM and NGO; none have but been successful to force the adoption of CRM concept. We personally believe the CRM, especially e-CRM can play a vital role in the fund crunched Indian NGOs. It is cost-effective; require no full back office operation as web based requests can have their lead-time too. Further, the technology requirement can also be cut down, as compared to business firm technology requirement. The government and funding agencies can help afford low price web hosting services too. In short: let me end by saying that e-CRM could offer an important practical tool for holding their members network worldwide.
IMPLEMENTATION OF CRM
The 4S of the Web-Marketing Mix Model
Scope: Strategy and Objective

Market Analysis: Economic Environment Analysis, Govt. Policies & initiative for Hydroponics Potential Customer: Who are the people (Govt. database, own database)
We Have Different Target Groups
Schools (for example. Modern School, DPS, Bhartiya Vidya Bhawan and so on.) The Government Agencies (for example. DST, GOI. And Department Forest and Environment, Delhi Govt.) A project on National Workshop on Hydroponics was submitted to NCSTC, DST, New Delhi by NCI, since then nearly 20 projects have been done. Other commercial agencies (Nurseries, Fertilizer sellers and garden Shop)
Site: Web Experience

The most informational website for Hydroponics in the world Very user friendly Content and photographs are excellent The web site www.natureclubofindia.org contains the button and icon for every information. The website containing a very simple enquiry form for the dual purpose one is query from the website visitor and another one is data collection. The query comes to the rediffmail and directly connected to the mobile phone, so that the visitor should be contacted immediately.
Synergy: Integration
Front office integration: Creating &developing marketing channel Back office Integration: Integration of website and developing the database Third Party Integration: Involving the other NGOs will assist the commercial, logistics and other activities. Synergy will go through the collaboration with different NGOs and different government agencies or commercial agencies, so that NCI can get better support for their activities.
System: Technology, Technical requirements

Software: Excel sheet for database Site Administration: Out sourced Payment System: Cheque, Draft, Cash and website administration The organization is maintaining the database in Excel Sheet. The organization does not carrying any payment gateway system, so they are dependent on cheque, Demand Draft or cash. If, the customer is local they call them to come directly. If the customer is not local, then, they ask to deposit the amount in their personal account. Then they deliver the material.
DATA PURIFICATION
Self-reported interest Back office operation
Commerce data
Website data
Target audience profiling
Other data
ANALYTICS
Big Findings
The Solutions: Customer Relationship Marketing is about attracting, enhancing, establishing and maintaining successful relational exchanges. Furthermore, satisfaction is related to repeat purchase.
The CRM implementation in this case revolves round Customer Retention and Customer Acquisition Strategy through the Web marketing Mix identifies four online marketing strategic, operational, organizational and technical critical factors: the Scope (strategic issues), the Site (operational issues), the Synergy (integration into the physical processes) and the System (technical issues). The Hydroponics technology is very simple and economical. Distribution System is not very strong. Product detailing is very difficult
Recommendation
ICT should be convenient for the customer Distribution system can be improved through Multi lavel Marketing
REFERENCES
Stanley A. Brown / Hardcover / 2000, Customer Relationship Management: Linking People, Process, and Technology Jill Dych / Paperback / 2001, The CRM Handbook Jawaid Alam, B. K. Tyagi / Science for Society / 2001, Hydroponics Fun with Plants www.techno-preneur.net www.hydroponicsbc.com www.ngotools.com www.mycustomer.com
The Ascent of Deposit Insurance in India

M.R. Das
Assistant General Manager (Economist), State Bank Staff College, Begumpet Road, Hyderabad
E-mail: tunadas@yahoo.co.in; manas.das@sbi.co.in
THE ASCENT OF DEPOSIT INSURANCE IN INDIA

In India, the Deposit Insurance Corporation, and with it the insurance of bank deposits came into existence in 1962. At present, the scheme covers all commercial banks, including RRBs and LABs in all the states and union territories. The scheme also covers all co-operative banks other than those in the states of Meghalaya and Mizoram, the Union Territories of Chandigarh, Lakshadweep and Dadra & Nagar Haveli. The introduction of Credit Guarantee Schemes by the erstwhile Credit Guarantee Corporation of India Ltd., was part of the measures taken in the late 60s to encourage banks to extend credit to priority sector. In July 1978, DIC assumed also the function of credit guarantee, and hence, was renamed as Deposit Insurance and Credit Guarantee Corporation (DICGC). As no credit institution is participating in any of the credit guarantee schemes administered by the Corporation, at present it is not operating any of the schemes and deposit insurance remains the principal function of the Corporation.
The Ascent of Deposit Insurance in India 269
DEPOSIT INSURANCE SCHEME: FEATURES Coverage of Deposits Types of Deposits Covered

The DICGC insures all deposits except the (a) deposits of foreign Governments, (b) deposits of State/Central Governments, (c) inter-bank deposits and (d) deposits held abroad. Consequent upon the amendment to Section 2(g) of the DICGC Act, empowering the Corporation to exclude any amount due on account of any deposit with any insured bank with the previous approval of the RBI from the 1st May 1986 deposits of the state land development banks with the state co-operative banks are also excluded from the purview of the deposit insurance scheme. Thus, the scheme covers, by and large, the household sector, which commands nearly two-third of the total bank deposits in the country. Simultaneously, the scheme covers the CDs and the FCNR (B) deposits, both of which are high-value deposits.
Level of Deposit Insurance Coverage

Initially, the insurance cover was limited to Rs.1,500 only per depositor for deposits held by him in the same right and capacity in all the branches of a bank. This insurance limit was enhanced from time to time to the present level of Rs.1 lakh. During 2001-02, almost 97% of the deposit accounts were fully protected by the deposit insurance scheme in India. The proportion of fully protected accounts to total number of accounts almost steadily increased from 78.5% in 1961 to nearly 97% in 2001-02. However, it has declined thereafter to 92.6% in 2007-08. In terms amounts of deposits, nearly 70% of assessable deposits were covered by the deposit insurance scheme during 2001-02, steadily up from about 23% in 1961. As observed in the case of number of accounts, the proportion of insured deposits to total assessable deposits declined to 56.2% in 2008-09. The rule of same right and capacity has been subsequently relaxed (w.e.f. April 26, 2007) in the case of joint accounts. Earlier, DICGC used to settle the claims of all joint accounts in the same capacity and the same right up to Rs.1 lakh, for all combinations of the same set of depositors. This meant that joint accounts of A and B and B and A in the same bank were treated as one account and the claims were settled for only up to Rs.1 lakh aggregating the balance in both accounts together. As per the revised policy the deposits held in two separate joint accounts in combination of say A and B and B and A; will now be treated as two separate accounts, and each category of the joint account will be eligible for a claim up to Rs.1 lakh.
The deposits kept in different branches of a bank are aggregated for the purpose of insurance cover and a maximum amount up to Rs.1 lakh is paid. If the funds are deposited into separate banks they would then be separately insured. DICGC insures principal and interest up to a maximum amount of Rs.1 lakh. For example, if an individual had an account with a principal amount of Rs.95,000 plus accrued interest of Rs.4,000, the total amount insured by DICGC would be Rs.99,000. If, however, the principal amount in that account was Rs.1 lakh, the accrued interest would not be insured, not because it was interest but because that was the amount over the insurance limit. Banks have the right to set off their dues from the amount of deposits. The deposit insurance is available after netting of such dues.
Types of Institutions Covered

The deposits mobilized by the development finance institutions, the mutual funds, the non-banking financial companies and the non-banking non-financial companies do not come under the purview of the scheme.
Premium System Premium Rates

At present, the DICGC charges a flat rate of 10 paise for Rs.100 of assessable deposits. The DICGC Act, 1961 provides that different rates may be notified for different categories of insured banks. The rates of premium, as fixed by the Corporation from 1962, have not undergone many changes over time. As per the existing provisions of the Act, the Corporation can levy a maximum premium of up to Rs.0.15 per Rs.100 per annum. The premium is required to be paid on the total assessable deposits and not merely on the insured deposits insured by the Corporation, although the Corporation makes good only the insured amounts of deposits (not the assessable deposits) in the case of a bank failure. This is being practised to ensure administrative convenience at the bank branch level.
Deposit Insurance Fund (DIF)

The DIF consists of the following items: 1. 2. 3. 4. 5. Balance at the end of the year. Surplus. Investment reserve including Investment Fluctuation Reserve. Claims intimated and claims admitted but not paid. Estimated liability in respect of claims intimated but not admitted.
6. Insured deposits remaining unclaimed. 7. Other liabilities. Since 1987, the Corporation has gone in for actuarial valuation of its liabilities. Hence, the balance at the end of the year represents the sum that can be used for paying deposits arising out of predictable failure of banks. Claims intimated and claims admitted but not paid, and estimated liability in respect of claims intimated but not admitted (i.e., item nos. 4 and 5) together represent the sum that can be used for paying liabilities arising out of events which are already known. Thus, it is only the Surplus that is available for paying liabilities arising out of unpredictable failure of banks. Item nos. 3 and 6 cannot be utilized and the availability of item no. 7 is uncertain. Table 1: Adequacy of Deposit Insurance Fund
Year Bala nce Surpl us Claims intimate d and claims admitte d but not paid 93 Estimated liability in respect of claims intimated but not admitted 7 10 19 51 15 8 16 7 45 22 25 639 1,156 1,187 517 1236 1789 1260 616 449 1032 Total Insured deposits Ratio 1 (%) Ratio 2 (%) Ratio 3 (%)
Mar-89 Mar-90 Mar-91 Mar-92 Mar-93 Mar-94 Mar-95 Mar-96 Mar-97 Mar-98 Mar-99 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09
0 0 65 122 90 80 169 203 299 249 353 434 501 563 831 871 875 1026 1211 1553 1817
72 271 271 283 222 125 2 2 1,773 2,754 2,876 3,205 3,687 4684 5037 6943 8077 9768 11809 14339
79 281 355 456 327 213 187 212 344 2,044 3,132 3,949 4,862 5,437 6032 7144 9607 10363 11595 13811 17281
90,192 101,682 109,316 127,925 164,527 168,405 266,747 295,575 337,671 370,531 439,609 498,558 572,434 674,051 828885 870940 991365 1052988 1372597 1805080 1908951
0.09 0.28 0.32 0.36 0.20 0.13 0.07 0.07 0.10 0.55 0.71 0.79 0.85 0.81 0.73 0.82 0.97 0.98 0.84 0.77 0.91
0.08 0.27 0.31 0.32 0.19 0.12 0.06 0.07 0.09 0.55 0.71 0.66 0.65 0.63 0.67 0.68 0.79 0.87 0.80 0.74 0.85
0.08 0.27 0.25 0.22 0.13 0.07 0.00 0.00 0.00 0.48 0.63 0.58 0.56 0.55 0.57 0.58 0.70 0.77 0.71 0.65 0.75
Source: DICGC Annual Report (various issues).
Thus, three ratios have been developed to measure the adequacy of the DIF, which are as under: Ratio 1: (Balance at the end of the year + Surplus + Claims intimated and claims admitted but not paid + Estimated liability in respect of claims intimated but not admitted)/Insured deposits Ratio 2: (Balance at the end of the year + Surplus)/(Insured deposits - Claims intimated and claims admitted but not paid - Estimated liability in respect of claims intimated but not admitted) Ratio 3: Surplus/Insured deposits These ratios are presented in table 1. By all the measures, the fund is found to be inadequate. The variations in the ratios are directly attributable to two factors: (a) low premium rates, which are flat and (b) growth in deposits. In other words, more and more deposits are being protected at the same or low rate of premium.
Recovery of Settled Claims

In terms of Section 21(2) of the DICGC Act read with Regulation 22 of the DICGC General Regulations, the liquidator or the insured bank or the transferee bank, is required to repay to the Corporation out of the amounts realised from the assets of the failed bank and other amounts in hand after making provision for the expenses incurred. Legal and operational complexities have come on the way of the Corporation not being able to realize the balance sum even after long time.
Deposit Insurance Reform in India

DICGC was set up in 1962 to restore public confidence in the banking system in the aftermath of successive bank failures in the 60s. In fact, India, as it happened, was only the second country in the world after the US in 1933, to provide insurance cover to bank deposits. DICGC has, over time, succeeded in increasing public confidence in the banking system and promoted savings. Since 1991, several reforms have swept the financial sector in general and banking sector in particular. To remain continually safe and sound amidst fast changing and globally integrating environment has emerged as the biggest challenge before the Indian banking sector today. The Narasimham Committee Report on the Banking Sector Reforms (1998), while focussing on the structural issues recommended for revamping the deposit insurance system too. Following this, RBI constituted in April 1999 an Advisory Group and a Working Group under Shri Jagdish Capoor,
Table 2: Insurance Claims Settled and Repayment Received All Banks Liquidated/Amalgamated/Restructured up to March 31, 2009
(Amt. in Rs. lakh)
Category of Banks 1 I. Commercial i) Full repayments received ii) Repayments received in part and balance due written off iii) Part payment received Total (I) II. Cooperative i) Full repayments received ii) Repayments received in part and balance due written off iii) Part payment received Total (II) Grand Total (I+II)
No. 2 7 8
Claims settled 3 3911.4 38.5
Repayments received (Written Off) 4 3911.4 27.8 (10.7)
Balance (3 4) 5 -
12
25633.9
8166.4 (10.7) 12105.6 (10.7) 171.4
17467.5
27 8
29583.8 171.4
17467.5 -
3.6
(3.6) 21232.7
217
268620.5
247387.8
228 255
268795.5 298379.3
21404.1 (3.6) 33509.7 (14.3)
247387.8 264855.3
Source: DICGC Annual Report, 2008-09, pp.35 - 45.
the then Deputy Governor of RBI to look into this issue. The Groups made various recommendations. As a sequel to the Finance Ministers Budget speech for the financial year 2002-2003 announcing that DICGC will be converted into Bank Deposits Insurance Corporation (BDIC) to make it an effective instrument for
dealing with depositors risk and for dealing with distressed banks, a High Level Team of Senior Executives from the Government of India, RBI and DICGC visited FDIC to study its working in June 2002 and held discussions with FDIC and US Banking Regulatory & Supervisory agencies. The study team submitted its report to the Ministry of Finance (MoF) on the 14th January 2003. As desired by the MoF, the recommendations of the Study team were examined by DICGC in consultation with RBI. Based on this exercise, an outline of the BDIC Bill, which is intended to replace the DICGC Act, 1961 has been forwarded to the MoF on the 28th February 2003 for further action.
Factors for a Successful Sales Force During the Corporate Life Cycle
Sanjiv Layek and S.C. Gupta
Director Maharaja Agarsain Institute of Technology Delhi - Lucknow Road, Pilkhuwa, Ghaziabad
E-mail: sanjeev.layek@gmail.com, gupta_subhash@yahoo.com
Keywords: Corporate Lifecycle, Sales, Sales Force, Efficiency
CORPORATE LIFECYCLE
Is it a fundamental truth that all organizations, like all living organisms, have a lifecycle and undergo very predictable and repetitive patterns of behaviour as they grow and develop? The first challenge for leaders who wish to grow their organizations is to understand in what phase of the organizational life cycle it is. Some practicians (Lupu A., 2008) agree that are five phases of the organizational life cycle as following: Start-up (or Birth) Growth. This is sometimes divided into an early growth phase (fast growth) and maturity phase (slow growth or no growth). However, maturity often leads to
Decline. When in decline, an organization will either undergo Renewal or Death In Ichak Adizes (2004) vision, the corporate life cycle has ten fazes: Courtship, Infancy, Go-Go, Adolescence, Prime, Maturity, Aristocracy, Early Bureaucracy, Death. In Figure 1, the diagram illustrates the corporate lifecycle in Ichak Adizes vision. After the Prime stage the rate of improvement begins to decline and falter.
Fig. 1: Corporate Lifecycle in Ichak Adisez Vision
In Ichak Adizes (2004) vision, the corporate life cycle has ten fazes: Courtship, Infancy, Go-Go, Adolescence, Prime, Maturity, Aristocracy, Early Bureaucracy, Death.
DESIGNING THE SALES FORCE

Sales personnel are the companys link to the customers. To the customer, sales person is the company. Salesperson gives information about the customer to the company. Any companys survival and existence depends on the market and hence the sales force which maintains that link deserves the deepest thought in terms of setting objectives for it, strategy for it and structuring it. Typical objectives (Anderson, 1995) for sales force could be specified in customer coverage and product coverage. Sales persons spend 80% of their time with current customers and 20% with prospects. The objective in terms of products is that 85% of sales have to come from established products and 15% have to be from new products. Strategy determines sales force structure. An appropriate strategy for the organization is arrived at first and then any changes required for the existing
Factors for a Successful Sales Force During the Corporate Life Cycle 277
structure are carried out so that the structure is capable of executing the strategy. To attract qualified and quality sales people, the company has to develop an attractive compensation package in comparison to the going market price. The compensation will have four components, a fixed amount, a variable amount, expense allowances and benefits. A popular rule is to have 70% as fixed and 30% as the remaining portion (Anderson, 1995).
THE MOST IMPORTANT FACTORS FOR A SUCCESSFUL SALES FORCE

During start-up, smart companies focus on whether they should depend on selling partners or create their own sales forces. If they decide to set up sales organizations, they pay a lot of attention to sizing them correctly. As companies grow, sizing issues become even more important. In addition, executives must decide when to invest in specialist sales forces. When businesses hit maturity, the emphasis shifts to making sales forces more effective by appointing account managers and better allocating salespeoples resources, and making them more cost-efficient by using less expensive people. Finally, as organizations go into decline, sales leaders attention shifts to reducing the size of sales forces and using even more costefficient ways to cover markets. In the opinion of some specialists ( Zoltners, Sinha, Lorimer, 2007) there are four factors, (Figure 3), for a successful sales force: size of a sales force, role of sales force and selling partners, degree of specialization, sales force resource allocation.
THE START-UP PHASE

In this phase, we see the entrepreneur thinking about the business, a management group formed, a business plan written. For entrepreneurs needing money to start the business, the company goes into the growth phase once the investor writes the check. For those which dont need outside funds, the start-up ends when you declare yourself open for business.
BUSINESS START UP STAGE

During the start-up phase, sales forces have to educate potential customers about products and change customers buying processes before they can generate sales. Salespeople also must chase down and make every possible sale in order to drive business. As a result, many new businesses adopt an earn your way approach to sizing their sales forces-they start small and add more feet on the street after they have generated the money to pay for them.
Start-Up Emphasis 3333
Growth
Maturity
Decline
Role of sales force and selling partners
33
333
Size of sales force
333
3333
33
3333
Degree of specialisation
3333
333
33
33 3 3333 3 Sales force resource allocation Fig. 2: Factors for a Successful Sales Force in Business Life Cycle State
On the flip side, start-up divisions of existing companies often over invest in salespeople. Their desire to be competitive results in sales forces that, given the nature of the business opportunity, are too big to be profitable.
THE GROWTH PHASE (FAST GROWTH AND MATURITY)

In the growth phase, one expects to see revenues climb, new services and products developed, more employees hired. The management textbooks tend to assume that sales grow each year. The reality is much different as a company can have both good and bad years depending on market conditions. Thats why many companies have different types of programs relating to organizational development. During the start-up stage, many companies product lines are narrow, and they operate in a small number of markets. As businesses grow, their product portfolios expand, and their sales forces have to call on prospects in a broader set of markets. This presents sales managers with two challenges: specialization and size.
Some specialist sales teams focus on products, others on markets, and still others on customer segments. Some salespeople concentrate on acquiring customers and others on servicing existing customers. Every kind of specialization has benefits and costs. For instance, specialization by markets reduces salespeoples focus on products, while product or activity specialization forces customers to deal with multiple salespeople. Many companies therefore create hybrid structures that include a mix of generalists as well as market, product, and activity specialists. Rejuvenated businesses face a slightly different predicament. When a company goes back into growth gear after a period of maturity or decline, its new offerings will have different value propositions and will open up new markets. Salespeople will need to sell differently, and theyll need retraining to do so. A company should determine the most appropriate size for its sales force by evaluating the probable size of the opportunity and assessing the potential risks of pursuing an aggressive or conservative approach. An aggressive strategy is appropriate when the business has a high likelihood of success and management has confidence in the sales projections. A more conservative strategy works when greater uncertainty surrounds the businesss success. In the growth phase (maturity), products and services start to lose their advantage, competition intensifies, and margins erode. At this stage, sales leaders must rely more on resourcefulness than on increasing the scale of the sales effort. Their strategy should emphasize retaining customers, serving existing segments, and increasing the efficiency and effectiveness of the sales force. In the maturity phase, companies must focus on optimizing the sales forces effectiveness.
THE DECLINE PHASE

Many organizations will enter the decline phase unless there is in place a rigorous program of transformational leadership development. If senior leaders detect the symptoms of decline early, they will be able to deal with it more easily. Some of the most obvious signs include: declining sales relative to competitors, disappearing profit margins and debt loads which continue to grow year after year. However, by the time the accountants figure out that the organization is in trouble, it takes tremendous leadership to get the organization to change course. Reasons For Decline (Zoltners, Sinha, Lorimer, 2007) that resulted from a study
made over 1900 company which were in trouble: too much debt(28%), inadequate leadership(17%), poor planning(14%), failure to change(11%), inexperienced management(9%), not enough revenue (8%).
PRIORITIES AND PLANS

It is very important to understand the challenges sales leaders face during the company life cycle and how they are responding to these challenges, and what actions yield positive results. In Barry Trailer and Jim Dickie (2007) opinion, there are four levels of process prowess. Level 1 companies may be perceived as being antiprocess, though what they really lack is a single standard process. Everyone does his own things his own way. Being Level 1 does not mean a company is unsuccessful, but does mean it is unpredictable. Level 2 companies expect their sales people to follow a process, but used isnt monitored or measured. Level 3 companies typically enforce use a standard process, but because their monitoring strictly looks backward, they are still susceptible to miscues and missteps in a constantly changing market. Level 4 companies dynamically monitor and provide feedback and reps use of a standard process. These organizations modify the process when they detect even minor changes in market conditions. These companies are rare, but they are formidable competitors. Choosing the right network is also a priority for a sales executive. Different Configurations of networks produce different results, and the salesperson that develops a nuanced understanding of social networks will outshine competitors.
CONCLUSION
We can say that sales leaders who try to match sales force structures with the business life cycle face different challenges at every stage. The common thread, though, is that they must overcome organizational resistance at each step and sacrifice short-term profits to secure their companies success over time. Every company should conduct a break-even analysis to check if its sales force has the right size, revising permanently the sales process and built better networks according with the stage of the corporate life cycle.
BIBLIOGRAPHY
Adisez, I. (2004). Managimg Corporate Lifecycles. New Jersey: Prentice Hall Press, 2nd Edition. Anderson, R. (1995). Essentials of Personal Selling: The New professionalism . Englewood Cliffs:Prentice Hall. Dalrymple, D. J. (1994).Sales Management: Concepts and Cases. New York: John Wiley. Dickie, J.,& Trailler, B. (2007). Understanding What Your Sales Manager Is Up Against. In Harvard Business School publishing Corporation, Harvard Business Review on Strategic Sales Management (pp. 77-96). Boston: A Harvard Business Review Paperback Istocescu, A. (2008), The life cycle phases of a small or medium enterprises, Economia seria Management, 11(2), 59-80 Lupu, A., & Ursu, F. (2008). Corporate Life Cycle. The Petroleum Gas University of Ploiesti Bulletin - Economic Science, 5B/2008, pp. 49-55 Uster, T., Godes, D. (2007). Better sales Networks. In Harvard Business Review on Strategic Sales Management (pp.97-121). Boston:A Harvard Business Review Paperback Zoltners, A., & Sinha, P., & Lorimer, S. (2007). Match Your Sales Force Structure to Your Business Life Cycle. In Harvard Business School publishing Corporation, Harvard Business Review on Strategic Sales Management (pp. 4975). Boston: A Harvard Business Review Paperback.
Leadership and Management: The Need of Hour

Aparna Sharma
Faculty, ICFAI University, Dehradun
E-mail: aparnaasharma19@gmail.com
The competitive society which accepts the theory of the survival of the fittest needs to be skilled in some traits. In this specific zone leadership and management traits come first. It appears as if the two are directly proportional to each other. In a set up where discipline is maintained and system runs smoothly it sets the example of good management and when this discipline under various categories is carried outside that system to make the mile stone then it is leadership. The appreciation of the tasks done by people is the example of good management, and if people try to follow ones footsteps or wish to keep the torch lighted by one that proves the leadership caliber, as the essence of leadership is followership.1 It is said that the concept of management emerged in 20th century2, may be the study of management as a discipline is new but then the fact is that it is there since the inception of society. When kingship was the order of the day the positions were the examples of leadership and the work done under them was the example of management. Management consists of helping people set ambitious yet realistic goals and motivating them towards the achievement of those goals. Since people began
Leadership and Management: The Need of Hour 283
forming groups to accomplish aims they could not achieve as individuals, managing has been essential to ensure the coordination of individual efforts3. Now it is convenient to divide managerial functions as planning, organizing, staffing, leading and controlling.4Certain features of organization such as loyalty, obedience, intelligent secrecy, recognition devices, when used astutely bring forth more powerful associations of human beings and enable clusters to move towards objectives with greater smoothness and efficiency. This important instrument of leadership stands throughout history as a fundamental aspect of living. When one is ready to face the past without regret, handle the present with confidence and prepare for the future without fear true leadership is there. On the same track in terms of management one who learns to rectify the mistakes of past, look for simple solutions, enjoys every little moment of present and keeps a vision for prosperous tomorrow is a good manager. Leadership is a rage of emotions which pampers to do something new i.e. known for some uniqueness, it can go to any extent. Management is doing the same things done by the ancestors but in a different manner i.e. earn appreciation for style. It is about setting things right and devising a new eclectic way of life. Warren Bennis summarized the differences among two as6. The manager administers, is a copy, focuses on systems and structures, relies on control, has a short range view, asks how and when, has eyes always on the bottom line, imitates, accepts the status quo, is the classic good soldier, does things right : the leader innovates, is an original, focuses on people, inspires trust, has a long range perspective, asks what and why, has his eyes on the horizon, originates, challenges the status quo, is his own person, does the right thing. The description is quite interesting and authentic but today the focus is on how in spite of the differences these can go hand in hand for the concept of managerial leadership. There is a renewed call today for charismatic leaders in organizations. There is increasing talk now on visionary abilities, on character, on heroism, in leadership roles. All the Rajarshi type leaders in Indias history had been constructively charismatic, visionary heroic, and were free from the bane of narcissism. Why? Because, they were close to truth as joy. Studies of their lives reveal two mutually consistent, abiding endeavors; Self control and renunciation.7. This proves that leadership does not begin only with vision, but with getting people to confront the brutal facts and to act on the implications. This shows that since the inception of civilization in our minds we are having enormous images of leadership and management. For interdependency between leadership and management we can follow up with the concept of good to great
i.e. good management leads to great leadership. In this stream leaders never wanted to become larger than life heroes. They never aspired to be put on a pedestal or become unreachable icons. They were seemingly ordinary people quietly producing extraordinary results.8 Leaders dont do different things, they do the things differently. To make the people workout in the adverse circumstances is a feature of collective approach of leadership and management. Instead of firing honest and able people who are not performing well , it is important to try to move them once or even two or three times to other positions where they might blossom.9 True leaders help to attain objectives through the maximum application and utilization of capabilities. A culture of discipline involves duality. On one hand it requires people who adhere to a consistent system; yet on the other hand it gives people freedom and responsibility within the frame work of that system.10 We can say that leadership and management are going hand in hand when it works for preserving the core values and core purpose and bringing change to the cultural and operating practices and also trying to alter specific goals and strategies. In true sense only then the fragrance of innovations with antique and aesthetic touch could be felt. Leadership has an extraordinary power, but it has been advised to leaders that they may not treat princes as princes but they should treat persons as persons.11 It can make the difference between success and failure in any thing you do for yourself or for any group to which you belong.12 For solving of any problem leaders work with three tools of brainstorming, psychological techniques, and analysis of alternatives.13 Leadership and management both works for some identification and in the long run contribute to the nationalism also. The sense of identity leaves the issue of appropriate actions and policies entirely open to scrutiny and choice. This applies to the science and technology on the one hand and to economic, social and cultural on the other14. It can be said that management is a skill by which we generally make people work for a specific job in a systematic manner. The art of getting what one wants and making people like it not only stimulates imagination, intellectual faculties, intuitive impulses, and insatiable appetites but also offers challenges to leaders and compensations to followers and institutions.15 In the changing scenario of today, we should apply the amalgamation of both these traits, as today we dont require dictatorship leaders to enforce their version but we require the collective managerial leadership (inclusive of strategic, transactional, visionary, charismatic, empowering, moral, servant, entrepreneurial, and innovative leadership) for sustaining ourselves in the globalised culture of world. It can be easily noticed that when managers are involved in influencing a
Leadership and Management: The Need of Hour 285
group to meet to meet its goals, they are involved in leadership. When leaders are involved in planning, organizing, staffing, and controlling, they are involved in management.16 At various levels the role of leaders and managers comes out on similar parameters as they overlap in practical terms. Inspiration by a leader often plays a major role in spurring people on to maximum performance, not only this but the second stage of performance management is encouragement.17 The secret of life lies in honesty and bravery, numbers do not count, nor does wealth or poverty, a handful of men can throw the world off its hinges, provided they are united in thought, word and deed18. The relevance of these details can be observed in life time to time when we say, teach yourselves, teach everyone his real nature, call upon the sleeping soul and see how it awakes. Power will come, glory will come, goodness will come, purity will come and everything that is excellent will come when the sleeping soul is roused to self conscious activity.19 These applications are very well required in the materialistic world of today to make the balance. The communication gap needs to be removed from every level and every minor suggestion has to be kept in consideration if it is worthwhile. These are the only basics if dealt within the circle of leadership and management, it can create wonders and sure positive outcome can be seen from the level of individual to the level of nation and finally to the universe too. A person may have all the traits of a leader, but if he/she doesnt personally see to the development of new leaders the organization wont be sustainable.20 All the contrasting as well as the parallel stages can run smoothly and successfully when charged with proper management under approachable leadership. In fine a combination of Management and Leadership says, once you solve the problems of man to your own satisfaction, you had your philosophy of life and evolved your own art of living. All this you must apply to the present situation and out of it will arise a new creation and not a mere repetition, a creation which the soul of your people will own for itself and proudly offer to the world as its tribute to the welfare of man.21
REFERENCES
Arise Awake an Exhibition on Swami Vivekananda, Sri Ramkrishna Ashram, Mysore, 2002, panel 40. Ibid, panel 27. Chakraborty S K & Chakraborty Debangshu,Rajarshi: The Quintessential Indian Model of Leadership, Culture Society & Leadership Spiritual Perspectives, The ICFAI University Press, Hyderabad,2006, p-77.
Cohen William A, The New Art of the Leader, Viva Books, New Delhi, 2003, p-1. Ibid, p-277. Collins Jim, Good to Great, Harper Collins Publishers Inc., New York, 2001, p-28 Ibid, p-57. Ibid, p-142. Giri Bhuwan, Managerial Leadership, V l, Mittal Pub., New Delhi,2009, p-39 James Macgregor Burns, Leadership, Harper & Row, 1978. Joseph P T, SJ, EQ and Leadership, Tata McGraw Hill, New Delhi,2007, p-18. Northhouse Peter G, Leadership, SAGE Pub. India Pvt. Ltd., New Delhi, 2007, p-9. Ibid 1, p-9 Ibid, p-9 Sen Amartya, The Argumentative Indians, Penguin Books, London,2005, p-339. Ibid 5, p-68. Ibid 2, p-11. Tagore Rabindranath, Omnibus III, Rupa & Co., New Delhi, 2005, p-8. Tichy Noel, The Leadership Engine, Harper Business, New York, 1997. Weihrich Heinz & Koontz Harold, Management A Global Perspective,10th ed., Tata Mc Graw Hill, New Delhi,2001, p-490. Woolfe Lorin, The Bible on Leadership, Jaico Pub. House, Mumbai, 2008, p-113, 115.
FDI, A Threat to Social Justice in India, the Precautionary Steps Ahead

Tripurari Pandey
Ajay Kumar Garg Institute of Management, Ghaziabad, 27th K.M Stone, NH-24, Delhi Hapur Bypass Road, Adhyatmik Nagar, Ghaziabad
E-mail: trpandey@akgim.edu.in
INTRODUCTION
Foreign Direct Investment is another mechanism of striking integration with the rest of the world. It is an offshoot of globalization process. Generally foreign direct investment is denoted by the acronym FDI and is different from FII. The bureaucratic corridor in India refers FII as short term capital and hence highly volatile. This definition paves the way for foreign direct investment which has assumed the garb of a capital more durable in nature and hence not too susceptible to volatility.
FDI AND QUESTIONS

Across the globe, risk taking abilities of the governments have been complimented by the capital attracted from abroad. Though, reverse FDI also takes place but it is purely private in nature and style in the home country and hence governments do not bother much about it. Of late there has been a trend of having a sense of
pride among nations on having attracted a larger share of FDI. In fact there is a race among emerging nations in stealing greater pie of the cake. A comparison is always made between India with China on most of economic matters. Both of the two countries have made FDI attraction as one of the priorities of their economic policies. There are two questions to be answered at this point. Onewhy does FDI prefer these countries? And, the other one is the why do countries vie for the FDI pie? The answer to both of the questions shall be made in reference to India. Foreign direct investment looks for the opportunities to invest for a profit with security and lesser hassle. There are various reasons attributed to FDI motives in the host country. One is the export of comparatively advantageous product from the host to the home country and the other can be selling of the product in the host country itself. The answer to the second question lies in the inability of the concerned governments in mobilizing capital on home turf. This inability is further constrained by disturbing level of fiscal deficit (combined fiscal deficit of center and the states in India) which as on day (Oct 2010) stands around 5.2% and 9.7% of GDP to the center and the states respectively.
SOCIAL JUSTICE AND TASKS IN A WELFARE STATE

Social and economic tasks in front of the government are varied demanding immediate attention. This has left government of India with choices between Scylla and Charybdis. This conundrum alone is primarily responsible for the inclination of the government towards FDI as a magic wand that will sail the ship out of uncharted waters of development in India. This inclination and dependence on FDI has given birth to a topic which entails the intactness of social fabric and social justice in India. In general social justice refers to an egalitarian society or institution that is based on the principle of equality and solidarity that understands and values human rights and recognizes the dignity of human beings. This concept of social justice clarifies that every human being has equal opportunity and playing field. From the poorest person on the margins of the society to the wealthiest person deserves an even playing field. Moreover, the directive principles of state policy in the Constitution of India exhort the state to secure a social order for the promotion of welfare of the people.
EYE-OPENING INDICATORS
As evident in the above diagram, different committees have given their own number on poverty in India of which Arjun Sen Gupta has a dismal outlook on it.
FDI, A Threat to Social Justice in India, the Precautionary Steps Ahead 289
Fig. 1: Various Estimates of the Number Living Below Poverty in India, 2009
Source: PRB, based on different recent estimates of the percent below poverty As discussed earlier, foreign direct investment for which the country has been making all out effort, comes only in the areas which are ready for profit percolation with no or minimum gestation period. Already, a section reeling under deprivation and in differentiation with rich ones can be observed simmering in discontent and hence giving vent to it through various apertures leading to disorders of different shapes and sizes in the country. The data available on the amount of FDI and its location preference in India also paints a very disturbing picture. Table 1: Annualized Growth Rates of Leading States for 1999-2008 (%)
Maharashtra Gujarat* Haryana Delhi Bihar* Uttar Pradesh Madhya Pradesh 9 8.8 8.7 7.4 5.1 4.4 3.5
* In 2009-10, Bihar notched a growth rate of 12.6% and was the fastest growing state followed by Gujarat with a growth rate of 11.3%. Source: Maharashtra poised for 9 percent growth in 2007-08", Thaindian.com. Retrieved 2010-04-05.
Poverty rates in rural belt of Orissa and Bihar of 43% and 40% respectively are some of the worst in the world.
Fig. 2: Indices of real per capita consumption by fractile groups
Table 2: History of FDI in India (US $)

1992 1994 1996 1998 2000 2002 2004 2006 2009 276.512 Million 973.271 Million 2.426 Billion 2.635 Billion 3.584 Billion 5.626 Billion 5.771 Billion 20.336 Billion 34.577 Billion
There are other sectors too for foreign direct investment, but their share is less than 2% in the overall investment. India as per UNCTAD (United Nations Conference on Trade and Development) report on investment prospects has been ranked 3rd on FDI preference scale for year 2010-20117. However, whatever FDI is attracted in India, it is less than 10% of FDI flow in China. There should not be any antagonism against FDI because India needs capital and technology, but, do these capital and technology go in bridging the gap or narrowing down the chasm of disparity prevalent in Indian society as a whole. Data mentioned in Figure 2 the per capita consumption directs us to a very peculiar observation. The gap between rural and urban consumption level is widening from 1997 onwards. In fact the 1997-98 onwards the country became more progressive on liberalizing and globalizing the economy which further led to unilateral rise in income of a
segment that revolved in and around metros and other cities. Beyond 2001-02 the statistics paints a grim picture of inequality. Table 3: Top 5 Sectors for FDI from April 2000 to January 2009
Amount of EDI Inflows In US$ Million In Rs Million 787420.81 391109.74 275441.38 213595.12 146799.41 217936.02 137089.37 87008.07 63290.5 109563.2 18118.4 8876.43 6215.55 5029.01 3310.23 5118.85 3129.66 1964.06 1551.88 2612.85 Percent of Total Fdi Inflows (In terms of Rs) 22.39 11.12 7.83 6.07 4.17 6.2 3.9 2.47 1.8 3.11
Sector Services Sector Computer Software & hardware Telecommunications Construction Activities Automobile Housing & Real estate Power Chemicals (Other than Fertilizers) Ports Metallurgical industries
Though, the growth driven by FDI helps the absolute national economic parameters and factors, but FDI itself has kept itself reserved to urban clusters. The geographic and demographic barriers observed are not intentional and specific, but fallout of bonded rationality where profitability and security of the principal remains the primary objective. Since, more than 60% of the people are involved in agriculture type of employment where the marginal productivity of most of them is almost zero, any uneven progress between rural and urban, rich and poor, educated and uneducated shall result into behavioral revolt against each other. Therefore, can we expect FDI of the kind we have been receiving to work for the betterment of the larger society? Any material benefit in the given scenario is neither possible nor feasible.
The following are the flipsides of economic march with FDI as pillion rider. 1. Income of Middle Class has grown but that has brought serious widening of income disparity between rich and poor as visible through consumption fractile (Refer to Figure 2). 2. The spending of the government is appallingly low and is not in pace with the emerging needs. 3. Whatever growth has occurred is due to internal consumption and not from any other source. We dont have any trade surplus with any significant country. 4. The major driving force of growth is financial markets of which FII is the single largest contributor. A slightest hint of capital flight could lead to a disturbing situation in the country (Please refer to USSR and South East Asian Crisis of 1991 and 1997 respectively). Table 4: Structural Snapshot of Contributing Sectors to Indian Economy
% of GDP Agriculture Industry Manufacturing Services Household Final Consumption Expenditure General Govt. Final Consumption Expenditure Import of Goods and Services 1988 30.5 26.2 16.2 43.4 65.8 12 7.5 1998 26 26.1 15.5 47.9 66.7 12.3 12.8 2007 18.1 29.5 16.3 52.4 54.7 10.1 24.7 2008 17.5 28.8 15.8 53.7 54.1 11.6 28
The above figure clearly depicts one important phenomenon on the contribution of agriculture front. Comparison of table 3 with table 4 brings out service sector and its importance. The contribution of service sector is increasing and this is where maximum of FDI also has arrived. The question now is, whether this type of growth is tenable and socially inclusive? If we observe the FDI exact location in India, it has been more in the states in areas therein where the benefits fall on the middle class or those who are somewhere closer to it. As a result of this the income of one segment remains either constant or does not increase at all and that of other segment (In this case middle class) increases significantly leading to a chasm to be bridged by the government after a repercussion felt across the board.
Table 5: FDI Destination
Mumbai New Delhi (NCR) Rest of India

PRECAUTIONARY INITIATIVES
34 % 20% 46%
China has been attracting FDI incomparably more than India does. There are two reasons underlying this fact. 1. China does the homework of laying infrastructural facilities in a manner which initially benefits a particular segment and then invites FDI. 2. The factor mobility in China is better that it is in India. This attempts to narrow down the gap by creating and availing opportunities. Whereas, in India the homework is attempted later after FDI has taken place or a sector has been proposed to be open. The latest example is of organized retail wherein a large number of corporate houses have entered with a sole objective of skimming the market originating in the farmers field to the modern store in the cities. This has resulted into abysmally consistent inflation of which no part goes to farmers. So, farmers in this case have two pronged sufferings. Firstly they could not get compensated appropriately and secondly inflation has reduced their net income. Following are the steps India must initiate to avert envious growth and inequality. 1. Focus on Rapid Infrastructural Development. 2. Necessary Homework in the area where FDI is to be invited. The homework should start with exercise on the possible impact on all the classes in the society. 3. Compensatory allowance which is another form on income redistribution shall have to be undertaken more aggressively and effectively. 4. Government initiatives are free from profit consideration and hence they will be welcomed in all the regions. Therefore, safe urbanization must be started before class breakout occurs.
CONCLUSION
In view of the above distortions, it is strongly suggested that the government aggressively undertakes infrastructural development so that premature emphasis on service sector could be eased and thereby economy and society could co-exist
in complementary balance. Also, minute analysis of possible fallout is required in those cases where it is essential so that compensatory steps could be initiated by the government.
REFERENCES
DIPP, Federal Ministry of Commerce and Industry, Government of India. India Brand and Equity Foundation. Indian Economy, Dutt and Sundaram,2009, Page No. 474475, S Chand Publications, New Delhi. International Business Strategy, A Nag, Page no. 234, Vikas Publishing House Pvt. Ltd. International Business, Donald A Ball,11th Edition, Page No. 49, McGraw-Hill. International Business, John D. Daniels, 12 Edition, Page No.202, 248, Pearson. International Business, Justin Paul,4th Edition, Page No. 231-232, PHI. Reserve Bank Of India website, www.rbi.org. World Bank Development Indicators, November 19, 2010. World Bank, Development Economics LDB Data Base, September 2009. www.wikipedia.org. www.worldbank.org.
Role of Logistics in Global Supply Chain Management of Pharmaceutical Industry

Vani Arora
Trinity Institute of Professional Studies, Dwarka (Affiliated to GGSIP University)
E-mail: aroravani26@yahoo.com
The Indian Pharmaceutical sector has come a long way, being almost non existing during 1970, to a prominent provider of healthcare products, meeting almost 95 percent of countrys pharmaceutical needs. Globally, the Indian industry ranks 4th in terms of volume and 13th in terms of value. India is one of the top active pharmaceutical ingredient (API) producers.
Inbound Logistics
Reverse Logistics Logistics Management
Inventory & warehousing
Distribution system
Outbound Logistics
Fig. 1: Components of Logistics Management
Logistics is the management of flow of goods, information and other resources including energy and people between point of origin and point of consumption in order to meet the requirement of consumers. Logistics involves the integration of information, transportation, inventory, warehousing, material handling and packaging, and occasionally security.
INBOUND LOGISTICS
Procurement is one of the critical factors in purchasing activity. Several day-today operations and functions of each and every department of a pharma company depend upon the activities of the purchase department. Procurement represents a critical opportunity to cut costs in the supply chain. Traditionally, procurement processes have been manual and paper-based. This results in inefficiencies, inaccuracies and waste that can be easily eliminated with procurement automation. Healthcare organizations have automated the complete procure-to-pay process and analyze purchase transactions to further drive continuous processes improvement. Using this type of procurement, companies realize as much as a 20 per cent savings of the total procurement spend, source, negotiate, and collaborate more effectively with suppliers; automate employee requisitioning and receiving, while lowering costs with streamlined supplier collaboration.
INVENTORY MANAGEMENT
Inventory management is a key issue in logistics system planning and operations. For healthcare organizations to function they require accurate medical supply and equipment orders, tailored to the patients needs, and delivered on-time. Logistics leads to better inventory management and it helps you to meet those expectations and provides functionality specific support to the healthcare industry, including: Inventory Replenishment: Use minimum/maximum and reorder planning to easily restock as needed. Establish replenishment source(s) for each, either as a supplier or an internal location. Patient Charged Supplies: Associate use of goods directly to patient accounts and simultaneously decrease inventory balances. To use effective date, lot, and serial tracking to gain control, history, and visibility into inventory movements. Query material usage transactions online. For example, healthcare organizations can better react to product recalls by easily tracking what items were administered to which patients, thus improving clinical performance. Mobile SCM applications support the use of mobile (RF) devices and bar coding for warehouse management,
Role of Logistics in Global Supply Chain Management of Pharmaceutical Industry 297
distribution, logistics, and transportation, including inbound logistics, outbound logistics, advanced inventory, storage and facility management. Gain accurate, real-time information and increase inventory velocity as you replenish orders from the supply chain. The numbers of inventory reducing strategies have been put forward. These include: A reduction in production lead-times, for example, by means of shorter setup times and smaller manufacturing runs. The visibility of end consumer demand to all supply chain participants, to reduce excess inventories caused by demand amplification up the supply chain. Total cycle time compression, in both information and material flow lead times. The centralization of inventory. For example, the level of safety stocks can be reduced by centralizing inventory in a single European distribution centre rather than holding inventory in several national distribution centers. The virtual warehousing concept, whereby all inventory across many locations is regarded as one common inventory pool. This may be associated with the transshipment of goods between warehouses at the same echelon level in the supply chain.
WAREHOUSING
A questioning of the role of inventory naturally also tends to question the role of warehouses, as inventory holding and the servicing of customer orders from that inventory are key warehouse functions. Roles of distribution centers are: Make- /break-bulk consolidation centers, in order to consolidate customer orders together into one delivery and gain transport economies. Cross-dock centers, whereby customer orders are satisfied from another source (e.g. a manufacturing plant) and just pass through the distribution centre within a few hours (or a couple of days at the most). Transshipment facilities, which are used to change transport mode (e.g. from large line-haul vehicles to smaller delivery vehicles). Assembly facilities, where the final configuration of the product to individual customer requirements can take place. Product-fulfillment centers, responding directly to product orders from the final consumer (e.g. as internet fulfillment operations).
Returned goods depots, handling unwanted and damaged goods, as well as goods returning under environmental legislation such as for product recovery and packaging waste.
DRUG DISTRIBUTION CHANNEL

Bringing products to end-users or into retail stores may be a complex process. While a few manufacturing firms sell their own products to endusers directly, in most cases intermediaries participate in product distribution. These can be sales agents or brokers, who act for the manufacturer, or wholesalers, who purchase products from manufacturers and resell them to retailers, who in turn sell them to end-users. A distribution channel is a path followed by a product from the manufacturer to the end-user. A relevant marketing decision is to select an appropriate combination of distribution channels for each product. Drug distribution in India is layered and regulated. Unlike in the West, where a manufacturer can directly supply goods at the retail level, products in India move through a chain of intermediaries.
Fig. 2: Drug Distribution Channel
OUTBOUND LOGISTICS
It is an accepted fact that the packaging of a brand plays a large role in enhancing the consumers experience with the brand. Packaging has always been an important part of the marketing game plan of many companies. Since long, pharma packaging in India remained functional rather than aesthetic. The only function of packaging was to carry the product and keep it stable, till it is consumed. However, manufacturers realized that they can build credibility and the userproduct bond if consumers could see the product. Patients love to see the product that they are consuming. International medicines are more supportive to the user. Packages in the international markets are more patient friendly.
REVERSE LOGISTICS
Logistics is not only related with the delivery of goods to the customers, but offers the opportunity for the stock to be returned to the suppliers via a feedback loop. The need or potential for the reuse or recycling of unwanted stock has become a major issue in many industries, and the process for achieving this has been labeled as Reverse Logistics. Reverse logistics is the flow of surplus or unwanted material, goods, or equipment back to the firm, through its logistics chain, for reuse, recycling, or disposal.
RFID IN PHARMACEUTICAL SUPPLY CHAIN

RFIDs, or radio frequency identification tags, are electronic chips embedded within or very near a product or shipment. They serve as a tool of remotely tracking supplies, equipment, and even people as they move through the supply chain from manufacturers to suppliers, wholesalers, hospitals, pharmacies, intermediaries, and end customers as well as their movement within a single firm. Major Benefits of Logistics in Pharmaceutical Industry 1. It can reduce procurement costs. 2. Logistics helps to reduce inventory by eliminating supply errors. 3. Logistics helps to shorten lead times. 4. Logistics strengthens key supplier relationships. 5. Logistics helps to increase efficiency by effective utilization of resources.
SIGNIFICANCE
Logistics is regarded as a crucial part of the pharmaceutical industry since the activities are highly time sensitive. In addition, pharma products need temperature-controlled storage and distribution. From the beginning of its evolution, the pharmaceutical industry in India has been focusing on the development of innovative activities like high quality products, research and development, etc. In course of time, the industry has given importance to logistics by focusing on supply chain and logistic level activities such as delivering the product to the end-customer at the right time, right place, in a secure mode and at a competitive operational cost.
CASE STUDY ON SUPPLY CHAIN OF KHPL

Kusum Healthcare Pvt. Ltd. was found in 1994. Kusum healthcare is a 100% E.O.U (Export Oriented Unit). The company has its marketing concentration in CIS countries (Common wealth Independent States). Unlike many of its competitors, Kusum healthcare belongs to a select group of Pharmaceutical companies that invest considerably in Research & Development to bring latest Drug Delivery System and improved efficacy of its products. The company is headquartered in India. Kusum Healthcare Pvt. Ltd. has got two state-of-the-art manufacturing units situated at the following places: Bhiwadi, Rajasthan, INDIA Kusum Healthcare Pvt. Ltd. (KHPL) Sumy City, UKRAINE Kusum Pharm
RESEARCH & DEVELOPMENT

Research & Development (R&D) in pharmaceutical industry is generally taken as research & development of new molecules. Another very important aspect in pharmaceutical business is to develop new methods and technologies to improve upon the quality and efficacy of existing molecules. With competition becoming tougher and tougher, for their survival and continuous growth, the Indian sector has become wise enough to spend sizeable percentage of their turnover in research & development of the present molecules. This is achieved by: Introduction of new Drug Delivery System (DDS) for better customer compliance. Improving the efficacy of the drug
Reducing the side effects of the various active and non active ingredients Improving the packaging of the product
Inbound Logistics
The purchased raw material is stored in the factory warehouse at Bhiwadi. This is a big warehouse equipped with special storage racks. This is a place where different raw material inventory is maintained. In KHPL factory there are two pharmacists who control the inventory of active and non active substances. Like all the other departments this department is also computerized.
Manufacturing Facilities
The new state of art manufacturing facility complies most stringent requirement of all the regulatory bodies to ensure that the formulations manufactured here will comply with the most stringent international quality standards. This manufacturing plant has facilities to manufacture oral solids and topical dosage forms.
Packaging
The finished goods, e.g., tablets, capsules are fed in to an automatic machine which packs it in to the blisters or strips as the case maybe. These blister packs/ strips, through the conveyer belt is sent for manual checking and finally packed in the primary boxes. The primary boxes (small) are finally packed in to secondary boxes (big). These secondary boxes are then transferred and stored in a warehouse no.2 in the factory before it is dispatched.
Outbound Logistics
It is now evident that the factory has a second warehouse where the finished goods after packing are stored. This warehouse is also conformed to the laid down standards as given by pharm committee, Government of India. The medicines are normally exported by means of air transportation from Delhi Airport and by means of marine transportation from Mumbai seaport. At the airport/seaport the warehouse is also supposed to conform to the prescribed standards of storage of medicines. While the invoices are being prepared against the orders, export department simultaneously start getting export documentation and the booking agent gets the space reserved on a particular flight to the destination country, or through ship (marine transport) as the case may be.
DISTRIBUTION NETWORK
The local company sells its products within the territory of the country through a chain of :
Distributors
In Uzbekistan, there are more than 50 big and small distributors situated and working in different cities of the country. These distributors have their own network. Some of the distributors are having branches in almost all major towns of Uzbekistan, having head office in the capital city known as Tashkent. However, the company reserves the right to pick and choose distributors depending upon Parties financial status Parties distribution network Mutual interest to work together. In Uzbekistan, our company policy is to get 15% advance payment at the time of ordering the products and the balance 85% payable within 30 calendar days. Some of our prominent distributors are M/s Asklepiy Ltd. M/s Navbahor Savdo Ltd. M/s lahisam Ltd. M/s Grand Pharm Medicals Ltd. M/s Kuk-Saroy Ltd. M/s Kitob guzari Pvt. Ltd. M/s Avlod Pharma Ltd. M/s Dori Darmon Ltd.
Customers
Unlike other businesses, pharmaceutical business does not have a direct Sale and purchase system. We have a chain of direct and indirect customers. A list of our customers include: Doctors Retail Drug stores Distributors Government hospitals and private clinics Patients (Consumer)
Marketing Education in India: A Management Education Perspective

Vikram Parekh
SIES College of Management Studies, Navi Mumbai
E-mail: mailtovikram@yahoo.com
INTRODUCTION
Management Education in India and in General has always regarding as a very imperative impediment of higher or tertiary education having the potential to not only provide the skilled man power in the area of management and administration but also to indirectly impact employment, social justice and economic development. The quality of a business school has always been very subjective especially from the point of view of various key stakeholders like students, faculty, corporate and alumni. Quality of higher education continues to remain as a issue of major concern for the stake holders. Globally there is a growing interest among people involved in higher education as a promoters and even academicians for accountability measures and assessment as a way of ensuring quality improvement in higher education. With the proliferation of rankings of business schools by various media publication house, it calls for a both qualitative and quantitative research approach to reflect on their impact. Much has been researched and written on the value of the rankings, which led to a variety of opinions
(Corley and Gioia, 2000; Tracy and Waldfogel, 1994; Trank and Rynes, 2003; Policano, 2005; Schatz, 1993). This literature review reveals that there are two divergent points of views; first the media or publication agency feels that the rankings have added positive value and second the academia feels the opposite. This conflict is not surprising and can be understandable; since both the parties have different objectives. The publication agency / media are attempting to maximize profits certainly not an objectionable goal. Academia wants statistical validity, robustness and accuracy in the measurement of quality also not objectionable goals. While there is a common ground for achieving these objectives, to date little overlap exists and little hope exists for finding a common ground in the future. The following part will take you through the same from two perspective from Indian Scenario first by looking at various ranking published in 2010 by around 4 to 5 publications and comparing the same within themselves and with renowned international rankings, secondly by looking at what are the criteria mentioned under NAAC (National Assessment and Accreditation Council) and NBA (National Board of Accreditation) which are the regulatory bodies for assuring quality for business schools in India.
OVERVIEW ON INDIAN RANKING SYSTEM

For long various business school rankings is believed to be an ad-space Selling activity for the publication house presenting the ranking. Some modern ranking system has started bifurcation various business schools in separate ranking baskets on the basis of private vs public, funded vs nonfunded, established before liberalization and after and so on. This approach is leading for more proper comparison and tries to justify the very purpose of ranking. While the ranking system for universities / colleges / business schools in the West (typically represented by institutions in the US, UK, Europe) have become more and more scientific, the same cannot be said about institutions in India. The better known international publications such as a Financial Times, QS, US College News, resort to statistical tools using historical data and year-wise comparisons whilst still relying on the basic benchmarks such as faculty, research, infrastructure / facilities, student scholastic performance, admission criterion, programs of study and many such prerequisites. Irony in Indian business school ranking looks to be leading to becoming a commercial opportunity waiting to be exploited for most publications except few. While the business of ranking helps add to the bottom lines of most publications, it definitely would be worrying if parents
Marketing Education in India: A Management Education Perspective 305
/ students actually considered the rankings as credible measures of the institutions effectiveness or for that matter in making admissions decisions. Next part will cover few international business school ranking systems namely, Financial Times (FT) & Quacquarelli Symonds rankings (QS).
INDIAN BUSINESS SCHOOL RANKING

Following ranking published by various agencies in the year 2010 has been taken for the purpose of study and comparison:
S. no. 1 Publication Pagalguy.com Research Agency Owned Ranking (2010) B-School 2010 Ranking 55 (National Ranking) Also Regional and Stakeholder wise Ranking Indias Top B-Schools 50 (Overall Ranking) Also Zone wise ranking Indias Best B Schools 111 (Overall Ranking) INDIAS BEST B-SCHOOLS 2010 Top 30 - 529 (Groups B+, B & C+) Indias Top 10 B Schools Top 10. Also Best Top 10 in four zones Top 75 Best Business School Top 31 Best B-Schools Survey Top 50 ranks (Also A++, A+, A, B++, B+ and B categories)
2 3 4
Careers 360 Business World 4Ps
Owned Owned ICMR (Indian Council for Market Research) TNS Mode MDRA (Marketing & Development Research Associates Nielsen Owned
5 6 7 8
Hindustan Times Outlook Business Today Business India
Source: Analyzed on the basis of various ranking reports published for the year 2010
Majority of the Indian rankings come up with Top 10 to 50 business schools. During last few years various categories or groups have been created by various ranking agencies to provide more bifurcated ranking to the stakeholders for better comparison and compartmentalization of business schools as per the range of marks obtained by them.
Its important to analyze at least the Top 10 business schools been ranked by the various ranking agencies in their 2010 publications / reports. The following table tries to provide a holistic view on how the repetition of various business schools can be seen in almost all the Top 10 list of various ranking agencies. This indicates the need for more variety of ranking options to be used. Top 10 Ranked Business Schools as Per Various Ranking Agencies Report:
Rank 1 Business World IIM A 4Ps ISB Hydera bad IIM A IIM B IIM C Outlook IIM A Busines s Today IIM A Busines s India IIM A Careers 360 ISB Hydera bad IIM A IIM B IIM C PaGalGuy .com IIM A Hindustan Times IIM A
2 3 4
IIM C XLRI Jamshedpur IIM K
IIM B IIM C XLRI Jamshe dpur FMS Delhi MDI Gurg IIM K
IIM B IIM C FMS Delhi IIM L
IIM B IIM C ISB Hydera bad XLRI Jamshe dpur IIM L
IIM B IIM C FMS Delhi XLRI Jamshed pur IIM L
IIM B IIM C ISB Hyderabad IIM L
NITIE Mumbai IIM I
FMS Delhi XLRI Jamshe dpur IIM L
NMIMS Mumbai MDI Gurg
IIM I
IIM I
XLRI Jamshe dpur ISB Hydera bad IIM I
XLRI Jamshe dpur MDI Gurg TISS Mumb ai FMS Delhi IMT Ghaz IIM K
XLRI Jamshedpur IIM I
MDI Gurg SPJIM Mumb ai IMT Ghaz JBIMS, Mumb ai
ISB Hyderab ad IIM I
FMS Delhi
IIFT Delhi
IIFT Delhi IIT K
10
JBIMS, Mumbai
SPJIM Mumb ai IIFT Delhi
LIBA Che ICFAI Hydera bad
IIM K SPJIM Mumbai
SPJIM Mumbai JBIMS, Mumbai
Source: Analyzed on the basis of various publication reports on 2010 rankings
ANALYSIS
Five out of Seven ranking has voted IIM Ahmedabad as Top ranked Business School. Majority of the Top 10 Business Schools are common in all the rankings with very few exceptions.
Comparing the Parameters, Criterias and Marks Used for Ranking by Various Agencies:
S.No. 1 Business World Infrastructure 15 criteria 150 marks Intellectual Capital 15 criteria 250 marks Placements 7 criteria 250 marks Industry Interface 8 criteria 150 marks Pedagogy 7 criteria 100 marks Institution Recognition 1 criteria 50 marks 4Ps Global Exposure 10 marks Course Contents 10 marks Outlook Selection Process 6 criteria 200 marks Personality Development 6 criteria 180 marks Academic Excellence 9 criteria 220 marks Infrastructure & Facilities 4 criteria 120 marks Placements 6 criteria 280 marks Business Today Reputation 7 criteria Business India Background 90 marks Careers 360 Input 12 criteria 205 marks Process 11 criteria 210 marks Output 10 criteria 330 marks
Infrastructure 5 criteria
Academics 130 marks
Faculty 10 marks
Success of Placement 2 criteria Faculty 3 criteria Specialist Units 1 criteria Quality of Placement 2 criteria Teaching Methodology 3 criteria Admission Eligibility 2 criteria
Faculty Performance 260 marks Student Admissions 120 marks Infrastructure 60 marks Placement 100 marks
Infrastructure 10 marks Personality Development 10 marks Student Profiles/Admi ssions 10 marks Research and Writings 10 marks Industry Interface 10 marks Placement and Packages 10 marks Alumni 10 marks Parental Perspective 10 marks 11 11 110
7 8
9 10 11
Curriculum & Pedagogy 110 marks Income & Expenditure 80 marks Alumni 10 marks MDP 20 marks Intellectual Interface 20 marks 11
Total Parameters Total Criterias Total Marks
6 53 950
5 31 1000 25
3 33
1000
745
Source: Analyzed on the basis of various publication reports on 2010 rankings
The most important attribute of ranking and rating of a business school is the methodology used for the same. The various broad parameters and criteria used for gazing the performance of the business schools provides the base for the depth of the ranking study.
ANALYSIS OF THE PARAMETERS, CRITERIAS AND MARKS

The broad parameter of various ranking agencies in India as mentioned above varies from 3 to 11 parameters and the sub parameters or criteria are taken for various ranking varies from 11 to 53 criteria. The total marks considered for various ranking various from 110 to 1000 marks. The common parameters are as follows: Infrastructure Intellectual Capital/Faculty/Research Academic Process/Pedagogy/Curriculum/Teaching Methodology/Course Content Industry Interface/Corporate Interaction Some unique parameters used by specific ranking agencies are: Global Exposure Reputation Income & Expenditure
CONCLUSION
The ranking and rating of business schools is bound to play more important role in coming times to come with foreign institutions waiting to venture into India. The primary study conducted on 96 management students reveals that they do consider ranking as one of the major source for taking their decision to join business schools in India. Also PaGalGuy.com has been preferred (63%) mostly by the respondents the main reason has been the online community created in the website which allows a prospective student for post graduate management program to connect with various stakeholders. The research also indicates the need for ranking to provide more regional ranks for students to select a business schools based on their location preference. The unique finding of the research is also the need for ranking on the basis of specialization i.e. to say top business schools in the area of finance, marketing, human resources, systems and so on. To conclude, there is a need for making Indian ranking system more robust, scientific and comparable to international or global rankings. Also the credibility
of the ranking agency will play a crucial role in making ranking more acceptable to the concerned stakeholder. The need for technological usage in ranking the one used by PaGalGuy.com indicates the possibility of involving more number and variety of stakeholder to participate and to increase the validity and scope of business school rankings.
REFERENCES
Council for Excellence in Management and Leadership (2002). The Contribution of the UK Business Schools to Developing Managers and Leaders. Report of the Council for Excellence in Management and Leadership Business Schools Advisory Group. London: Council for Excellence in Management and Leadership. Mintzberg, Henry (1996). Ten Ideas Designed to Rile Everyone Who Cares About Management. Harvard Business Review, July-August, 61-68. Schatz, M. (1993). Whats Wrong with MBA Ranking Surveys? Management Research News, 16(&), 15-18. Various hardcopy of ranking published by various agencies discussed in the paper been referred for the purpose of analysis.
Impact of Banking Technology on Customer Profitability An Empirical Study

Suresh Chandra Bihari
IBS, Hyderabad, IFHE Campus, Donthanapally, Shankarapalli Road, Hyderabad
E-mail: scbihari@gmail.com; scbihari@yahoo.co.in
INTRODUCTION
Internet Technology, one of the most commonly used words in the present day scenario has become an inseparable part of ones life. Internet Banking is a revolutionary breakthrough in the new age banking system. Internet Banking, as the name suggests uses internet as a delivery mode through which various banking activity is performed e.g. Paying Bills, Transferring funds, checking account balances, etc. It is difficult to assess whether banking technology has been applied for the benefit of the banker or for the convenience of the customers. Thus, in order to assess the impact of Internet banking on the Profitability of the customer as compared to traditional banking, the study deals with developing the model, which will not only identify weather customer is profitable with the advent of Internet/Online banking but will also identify the factors that is more important from customers point of view while making the use of Internet Banking.
Impact of Banking Technology on Customer Profitability 311
RESEARCH OBJECTIVE
The objective of the research is to assess weather the usage of Internet Technology by bank is profitable / beneficial to the customer or not. The secondary objective of the research is to discover the factor contributing to the benefit/profitability of the customer. Remains from IBS-Hyderabad students using Online Banking.
METHODOLOGY
The study employs use of primary data. A structured survey was conducted in order to collect primary data. The survey was undertaken online as well as personally. Out of the total respondent of 100, 80 respondents were online and remaining 20 were surveyed personally. In the questionnaire various application of Internet banking was included and the benefit or profitability was assessed. Later, the questionnaire consist of 18 items were included (of which 13 were Internet banking related and remaining for was General). All the variables were measured by response on a five point Likert scale, with rating 1 as strongly Disagree and rating 5 as strongly agree. The analysis of the collected Primary data was carried out using SPSS 13.0, a statistical package for social science. The survey was conducted by sending online questionnaire to various region of the country like Gujarat, Maharashtra, Karnataka etc. but the majority of the target audience is of IBS Hyderabad students using Online Banking.
RESPONDENTS PROFILE
Out of the total respondent, 66 were male and 34 were female.
The chart below exhibits the classification of respondent based on the type of Account they hold with the bank:
HYPOTHESIS FORMULATION
H0: Internet Technology in banking sector does not have any effect on the Profitability of customer H1: Use of Internet Technology in banking sector is profitable for the customer
DATA ANALYSIS
The sequence of data analysis is as follows: 1. Running Cronbach alpha Test in order to measure the reliability of data collected via questionnaire. 2. Measure the correlation among the variables. 3. Running factor analysis. (if correlation among few or all variables is greater than 0.50) 4. Running Regression analysis based on the factors generated.
CRONBACHS ALPHA TEST

Cronbachs alpha is a statistic which is used to measure the internal consistency or reliability of the data.
Reliability Statistics Cronbach's Alpha 0.699097013 N of Items 13
The value of Cronbachs Alpha is 0.699 (Minimum value for reliability is 0.60), which states that the data collected is reliable for conducting statistical test.
CORRELATION ANALYSIS
Correlation Matrix exhibits the degree of correlation among the variables. If the correlation between any two variables is greater than 0.50, than their exist multico linearity among the variables and Factor analysis need to be run in order to reduce multi-co linearity among the variables and to get appropriate and unbiased result (Refer Exhibit:1 for correlation matrix among the variables). The correlation matrix apparently exhibits that there exist multi-co linearity problem among the variables. Thus factor analysis will be undertaken to remove the problem of multico linearity.
FACTOR ANALYSIS
Factor analysis is used to group the variables with similar characteristics together. With factor analysis we can produce a small number of factors from a large number of variables which is capable of explaining the observed variance in the larger number of variables. The reduced factors can also be used for further analysis.
INTERPRETATION OF THE OUTPUT Descriptive Statistics

The first output from the analysis is a table of descriptive statistics for all the variables under investigation. Typically, the mean, standard deviation and number of respondents (N) who participated in the survey are given. Looking at the mean, one can conclude that Time Saving is the most important variable that influences the profitability of the customers. It has the highest mean of 4.38. KMO tells weather there is enough correlation between variables or not. The range of KMO test lies between 0-1; i.e. if the value is near to 1, factor analysis can be undertaken. The minimum value of KMO should be 0.50 in order to undertake Factor analysis. Bartletts Test of Sphericity measures weather the Population matrix is Identity matrix or not. The cut-off value of Bartletts Test of Sphericity is less than or equal to 0.05.
Descriptive Statistics Mean Time Technology Location Service Update Security Update Risk Increase in service usage Transaction cost Transaction Speed Transaction Transparency On line Payment Fund Transfer 4.38 4.12 4.26 3.6 3.4 3.39 3.57 3.81 4.3 3.35 3.31 4.24 Std. Deviation 0.663324958 0.755852586 0.760382679 0.953462589 0.942809042 0.930895084 0.934793231 0.884147709 0.659047369 0.783349452 0.761378335 0.780054388 Analysis N 100 100 100 100 100 100 100 100 100 100 100 100
Kaiser-Meyer-Olkin (KMO) and Bartletts Test
The table below shows the result of KMO and Bartletts Test Result:
KMO and Bartlett's Test(a) Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity Approx. Chi-Square df Sig. Based on correlations 0.584278957 304.9206792 66 0.00
The value of KMO test is 0.58 (>0.50) and Bartletts Test is 0.00 (<0.05), which permits to undertake Factor Analysis.
COMMUNALITIES
The Communality table shows the amount of variation extracted from each variable explained by all the factors. The higher the value better is factor representing variables.
Communalities Rescaled Extraction 0.5609216 0.4040451 0.5490003 0.8092032 0.7446772 0.860143 0.7920647 0.623082 0.290482 0.5051584 0.4838649 0.6739885
Time Technology Location Service Update Security Update Risk Increase in service usage Transaction cost Transaction Speed Transaction Transparency On line Payment Fund Transfer Extraction Method: Principal Component Analysis.
TOTAL VARIANCE EXPLAINED

The next item shows all the factors extractable from the analysis along with their Eigen values, the percent of variance attributable to each factor, and the cumulative variance of the factor and the previous factors. The cumulative variance explained by 4 components extracted is 64. 377%.
Total Variance Explained Component Extraction Sums of Squared Loadings % of Cumulative Total Variance % 2.067 25.376 25.376 1.184 14.529 39.905 1.036 12.723 52.628 0.957 11.749 64.377 Rotation Sums of Squared Loadings % of Cumulative Total Variance % 1.558 19.127 19.127 1.443 17.720 36.847 1.180 14.485 51.333 1.063 13.044 64.377
Raw
1 2 3 4
ROTATED COMPONENT MATRIX

The table below shows the loadings of the eleven variables on the three factors extracted. The higher the absolute value of the loading, the more the factor contributes to the variable. The gap on the table represent loadings that are less than 0.25, this makes reading the table easier. We suppressed all loadings less than 0.25. The table below shows the variables belonging to each factor along with its loading value:
Rotated Component Matrix(a) Raw Component 1 Time Technology Location Service Update Security Update Risk Increase service usage Transaction cost Transaction Speed Transaction Transparency On line Payment 0.47 0.40 0.52 0.85 0.75 -0.86 0.80 0.67 0.25 0.41 0.44 0.78 0.75 0.38 0.52 0.58 0.86 2 3 4 1 0.70 0.53 0.68 0.89 0.79 -0.92 Rescaled Component 2 3 4
Fund Transfer 0.61 Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. Rotation converged in 7 iterations.
FACTORS GENERATED
Factor Analysis generated 4 factors. The factors with corresponding variables are as follows:
Factor 1
The variables included in first factor are: a. Time b. Technology c. Location d. Transaction Cost e. Fund Transfer For the sake of convenience, this factor would name as Transactional Ease and Cost Savings. Transactional Ease & Cost Savings = 0.47*(Time) + 0.40*(Technology) + 0.52*(Location) + 0.67*(Transaction Cost) + 0.61*(Fund Transfer)
Factor 2
The variables included in second Factor are: a. Service Update b. Security Update c. Transaction Speed This factor would be named as Updates. Updates = 0.85*(Service Updates) + 0.75*(Security Updates) + 0.25*(Transaction Speed)
Factor 3
The Variables included in third Factor are: a. Increase in Service Usage b. Transaction Transparency c. On-Line Payment This factor would be named as Usage and Transparency Usage and Transparency = 0.80*(Increase in Service Usage) + 0.41*(Transaction Transparency) + 0.44*(On-Line Payment)
Factor 4
This factor includes only one variables i.e. Risk.
REGRESSION ANALYSIS
In the Regression Analysis, the Dependent Variable for the study is Overall Profitability of the Customer and the Independent Variables are the factors generated i.e. Transaction Ease and Cost Savings; Updates; Usage and Transparency and Risk.
OUTPUT OF REGRESSION ANALYSIS

Model Summary(b) Mode l 1 a b R R Square Adjusted R Square Std. Error of the Estimate Change Statistics R Square Change F Change df1 df2 Sig. F Change 0.00
0.679334 0.46149517 0.438821282 0.530829293 0.46149517 20.3536 4 95 rs: (Constant), REGR factor score 4 for analysis 1, REGR factor score 3 for analysis 1, actor score 2 for analysis 1, REGR factor score 1 for analysis 1 Dependent Variable: Overall Profitability
ANOVA(b) Model 1 Regression Residual Total Sum of Squares 22.94092489 26.76907511 49.71 df 4 95 99 Mean Square 5.735231224 0.281779738 F 20.3536 Sig. 0.00
a b
Predictors: (Constant), REGR factor score 4 for analysis 1, REGR factor score 3 for analysis 1, REGR factor score 2 for analysis 1, REGR factor score 1 for analysis 1 Dependent Variable: Overall Profitability
The above table apparently exhibits that the regression model developed is significant at 5% level of significance as the value of Sig. F is 0.00 (<0.05). The Value of R-Square is 0.46 (i.e. >0.40) which is satisfactory for defining the positive strength of relationship between Profitability (Dependent Variable) and Online Banking (Independent Variables).
Coefficients(a) Mode l 1 (Constant) REGR factor score 1 for analysis 1 REGR factor score 2 for analysis 1 REGR factor score 3 for analysis 1 factor score 4 lysis 1 Un-standardized Coefficients B 4.23 0.46 Std. Error 0.05 0.05 0.65 Standardized Coefficients Beta 79.69 8.69 0.00 0.00 1 1 t Sig. Co-linearity Statistics Tolerance VIF
0.06 0.11 0.03
0.05 0.05 0.05
0.09 0.15 0.05
1.15 2.05 0.63
0.02 0.04 0.05
1 1 1
1 1 1
Dependent Variable: Overall Profitability
REGRESSION EQUATION
Overall Profitability = 4.23 + 0.46*(Transaction Ease and Cost Saving) + 0.06*(Updates) + 0.11*(Usage and Transparency) + 0.03*(Risk) From the above equation, it is apparent that the contribution of the Factor Transaction Ease and Cost Saving is major while measuring the Overall Profitability of the customer using Online Banking.
MANAGERIAL IMPLICATION
The Profitability of the customer is positively influenced by the usage of Online banking and as it is very much likely that the customer will attracted towards the bank where its cost of transaction or overall cost is minimal or where is profitable, thus banker can create a Point of Differentiation by emphasizing on the variables like User Friendly Technology, Security Assurance and many more Innovative online services which leads to increase in the profitability of the customer and thus increase the customer base for the banks, thus creating a win-win situation for both.
CONCLUSION
Thus, the analysis done based on the different variables undertaken apparently exhibits that Online Banking has not only contributed to the ease and convenience
of the customer but also increased the profitability of the customers. Thus, internet banking is transforming from just a convenience to necessity in the life of human. The most important factor contributing to the increase in profitability of the customer is Transaction Ease and Cost Saving.
A Study on Mobile Banking: The Way Ahead

Khushboo C. Munjapara and Bhavik Panchasara1
1
Marwadi Education Foundations Group of Institutions, Rajkot Management, Marwadi Education Foundations Group of Institutions, Rajko
E-mail: khooshie@gmail.com; bhavikpanchasara@gmail.com
INTRODUCTION
The banking sector of India is booming like anything. With the advent of hightech communication and IT, numerous factors have facilitated the growth of the banking sector. Along with it, the mobile and wireless market has been one of the fastest growing markets in the world and it is still growing at a rapid pace. Mobile phones have become an essential communication tool for almost every individual. M-Banking has become very popular among mobile users. It is new, convenient and fast financial transactional channel for mobile users which is accessible from anywhere, anytime. M-Banking is poised to grow rapidly in India. There are over 200mln mobile phone subscribers in India and the number continues to explode. This paper focuses on the perceptions of users and non users of MBS and also estimates the future potential for the same.
OBJECTIVES
To understand the concept of MBS* and its importance to the bank as well as customers.
To understand various aspects and to build up solutions for drawbacks in MBS of SBI** To know the customer awareness regarding the MBS of SBI To measure the customer response of the existing users of MBS of SBI To suggest ways through which MBS of SBI can be encouraged on much larger scale.
LITERATURE SURVEY
Article MBanking yet to take off among Indian Banks, The Economic Times, May 10, 2009, focuses on how mobile telephony is becoming the most popular nowadays for the bankers but it will consume some more time to fully cop up. Another article Banks see pick up in MBanking the Business Standard, August 25, 2009, also says that mBanking is the easy and convenient option for users and bankers both. In Near future definitely banking will be performed through the mobile phones. The Business Standard, February 16, 2010 has given the successful example of implementation of mBanking in article Nokia, yes Bank in pact for mobile money services. It says that how a mobile company and a banker can change the definition of banking expediently. *MBS = Mobile Banking Service, **SBI = State Bank of India, Rajkot Zone Focus regarding changing behavior of bank customer is given in the article published in mbanking.blogspot.com, on May 6, 2010. Here, the behavior related points are focused and based on preliminary research and other evidence; it does seem as if the growth of mBanking leads to a reduction in visits to branches as well as calls to service-centers. This is of course good news as it will directly lead to reduction in cost. Some observations also seem to suggest that consumers do more transactions now. It is as if the ease with which mBanking allows consumers to do transactions, stimulate them to do more.
RESEARCH DESIGN
This empirical study has total sample size of 200 respondents 100 users of M Banking and 100 non users of M Banking services of SBI in Rajkot Zone. Primary data collection by structured questionnaire and personal interviews. The questionnaire was designed to investigate the detailed information regarding the perception of users and non users of M Banking and their response to technological changes in the banking sector. The secondary data was collected from news papers, web sites and SBI Zonal Office, Rajkot.
A Study on Mobile Banking: The Way Ahead 323
EVALUATION OF RESULTS Table 1: Analysis of Respondents*

Non-users Respondents: Non-users of MBS Age Group: 18-25 25-35 35-45 45-55 55 & above Gender: Male Female Education: Graduate Post-graduate Others Monthly Income: 5000-15000 15000-25000 25000-35000 35000-45000 45000 & above Occupation: Business Govt. service Private service Actual Numbers 100 22 25 21 18 14 83 17 45 12 43 14 16 3 4 3 28 49 23 % 100.00 22 25 21 18 14 83 17 45 12 43 14 16 3 4 3 28 49 23 Users Respondents: Users of MBS Age Group: 18-25 25-35 35-45 45-55 55 & above Gender: Male Female Education: Graduate Post-graduate Others Monthly Income: 5000-15000 15000-25000 25000-35000 35000-45000 45000 & above Occupation: Business Govt. service Private service Actual Numbers 100 % 100.00
40 31 14 10 5 90 10 63 21 16 37 30 11 2 1 30 38 32
40 31 14 10 5 90 10 63 21 16 37 30 11 2 1 30 38 32
*Based on questionnaire data.
Table 2: Evaluation of the MBS of SBI*

% 36% 22% 38% 47% 34% 88% 58% Description of the people surveyed are aware of the MBS of the people surveyed are not aware that SBI is offering MBS are aware that MBS offered by SBI is free of charge of the people are aware that they can transfer funds by using the MBS of SBI. of the people aware that they can top-up any mobile balance by using MBS of the people of the sample are not aware of the fact that now MBS is also available on simple cell phones without Bluetooth of the sample people wants to get registered for the MBS of SBI after getting aware
Table 3: Evaluation of Customers Response on MBS of SBI*

% 95% 36% 50-70% 43% 52% 46% 26-26% 46% 61% 56% 57% Description of the current users know how to use MBS of SBI. of the users are the people who are using internet banking facility of SBI of the users use most popular service on MBS of SBI i.e., checking balance and mobile top-up of the people strongly agree that MBS of SBI is cheaper of the people strongly agree that MBS of SBI is faster of the people strongly agree that MBS of SBI is user-friendly of the MBS user of SBI has been registered on Vodafone and Idea of the users use the service on weekly basis of the people surveyed are facing problems sometimes while transacting using MBS of SBI of the users ranks the MBS of SBI as Good of the users are ready to spread good verse regarding the MBS of SBI
TESTING OF HYPOTHESIS Hypothesis for Users of M Banking

For testing of hypothesis, Chi Square Test is used. For that purpose as one variable, the age, educational qualification, monthly income, occupation and user friendliness is taken where as for the second variable; the level of usage of MBS of SBI is taken which was decided on the basis of number of transactions by respondents during a month (High and Low). H1 = There is no significant difference between the educational qualification of respondents and level of usage of MBS of SBI. H2 = There is no significant difference between the monthly income of the respondents and level of usage of MBS of SBI. H3 = There is no significant difference between the age of the respondents and Level of usage of MBS of SBI. H4 = There is no significant difference between the user friendliness and Level of usage of MBS of SBI. H5 = There is no significant difference between the occupation of the respondents and level of usage of MBS of SBI. H6 = There is no significant difference between the user friendliness and age of the respondents.
Hypothesis for non users of M Banking

For testing of hypothesis, Chi Square Test is used. For that purpose as one variable, the age, educational qualification, monthly income and occupation is taken where as for the second variable, awareness of MBS of SBI is taken. H1 = There is no significant difference between the age of the respondents and awareness regarding MBS of SBI H2 = There is no significant difference between the educational qualification of the respondents and awareness regarding MBS of SBI H3 = There is no significant difference between the occupation of the respondents and awareness regarding MBS of SBI H4 = There is no significant difference between the monthly income of the respondents and awareness regarding MBS of SBI For all above hypothesis, result failed to find the little or any evidence against the null hypothesis. So, alternative hypothesis are rejected.
LIMITATIONS AND SCOPE FOR THE FURTHER STUDY

Only users and non users of MBS of SBI Rajkot Zone are taken for the study and a limited sample size because of time and resource constraints. Limitations of primary data and secondary data also may be constraints. Many demographic factors are ignored. There is a need for more detailed study on the topic taking samples across the state or country and other private and public sector banks also using a more scientific and effective tools.
MAJOR FINDINGS
Only 22% respondents are not aware regarding the MBS provided by SBI. Out of 100 non users of MBS, 78% aware about it but not using the services due to many reasons. Only 12% of the non users aware that MBS is also available in simple mobile and after knowing this, 42% of non users are interested to register for MBS. 62% of the respondents not aware that MBS by SBI is free of charge and 53% of them not aware that fund transfer in other account is possible by MBS and only 34% of that knows about the mobile top up facility is available by MBS. 16% of aware customers have interest to start the MBS but dont know the procedure and 11% of the respondents dont find any valid reason to use it.
MBS of SBI stood at fourth place in comparison with all MBS provider banks in India. 72% of users of MBS using it on SBI Freedom Software. SIM card service holders are equally stands at 26% for Idea and Vodafone. Among the top three reasons of not using of MBS is unawareness, not having the mobile instrument and it is not secure. Gender wise, 90% of the user respondents are male and female only 10%. 63% users are graduate, 37% of the users have monthly income between 5,000 to 15, 000, 36% of them are also net banking users of SBI. Only 11% of users are using it daily and 46% of them are using it weekly basis. 56% of users are feeling good with MBS of SBI.43% of the users agree that MBS is cheaper than traditional banking, 52% agree that it is faster, 46% agree that it is user friendly.
RECOMMENDATIONS
Identifying some untapped areas where the product can be offered for the encouragement of the MBS of SBI. Trying some new and innovative advertizing campaigns to get maximum awareness. Better Technology adaptation. Certain improvements should be made in the SBI freedom application such as; support of regional languages, nearest ATM/Branch locator, automatic updating and up-gradation of the software on its own whenever changes are made, credit card management, air/rail ticket booking, loan installment payment, etc. Training and awareness among employees. Educate the customer properly in order to grab their loyalty. Exchange of information on threats and vulnerabilities at appropriate forums and create and sustain customer confidence by adopting international MBS.
CONCLUSION
Path of banking sector is becoming virtual and that is possible through MBS as it not only saves time of banks as well as those of customers but also provides greater reach to customers. Yet vast opportunities are there as 94% market of MBanking is untapped in India though full of various challenges, but maximum of that can be solved by technology and sincere efforts. The MBS needs a perfect mechanism to develop, which will become possible in near future.
REFERENCES
Business Standard magazine of August 25th 2009. Ken Black, Business Statistics, Wiley India edition, 4th Edition, 2009. Philip Kotler, Pearson Education, Marketing Management, 12th edition, 2010. SBIs user manual for mBanking 2009-10. SBI mBanking broachers and templates. SBI website and other different websites for secondary data collection.
Integration between the Process Costing System and Relative Value Unit (RVUs) Approach to Measure Cost in Hospitals Case Study
Abdulridha L. Jassim and Abdul Aziza Ansari
Department of Commerce & Business Studies Jamia Millia Islamia, New Delhi
E-mail: al_yassiry_ridha@yahoo.com
ABSTRACT Background: Cost analysis and its measuring within hospitals departments is represents a necessary phase in their scientific progression nowadays. Health care organizations are struggling to measure and manage their costs. Use cost accounting technique that allows hospitals to determine the actual costs associated with their services provide to patients. Aim: To calculate the cost of a patient s hospitalization in Neurosurgical hospital in Iraq, by implementation of process costing system with use of relative value unit approach( RVUs) of the services used by patient in each support cost centers and mission cost centers. and thus the summing of resulting cost total over all departments for which the patient received service. Material and methods: Information is collected from registers, purchase orders, payroll, account books, hospital bills and registers at2005, along with informal interviews with hospital staff. Results: Cost of a patient s hospitalization is consist of total
Integration between the Process Costing System and Relative Value Unit (RVUs)... 329
units cost of services used by patient in each department. This costs were included cost per/day in Ward, cost per operation in Operation Unit and cost per/day in IC-G Unit, in additional to the cost per tests in each support cost centers. Conclusion: The study led to the conclusion the cost of a patient s hospitalization can be estimated by summing the RVUs of the services used by patient in each department. This study can help as guidelines for hospital administration for scientific costing in their hospital.
RESULTS Cost Calculation

(A) Direct Materials
1. Mission Cost Centers (Ward, Operation Unit, I-C-G). The direct materials that consumption in those centers included: food, drug, Supplies medicals. [Table 1]. 2. Support Cost Centers (radiology. Lab, Neurophysiology, E-C-G) the direct materials that consumption in those centers.(included: films, alcohol and pigment).laboratory (included: supplies medicals, alcohol, chemistry materials).In relation to Neurophysiology were supplies medicals [ Table 1].
(B) Direct Labor
1. Mission Cost Centers (Ward, Operation Unit, I-C-G) the direct labor (salaries and wages) for those individual employees within the departments whom deal with directly with the patients they are: Doctors, Nursing, Others. [Table 1]. 2. Support Cost Centers (Radiology, Lab, Neurophysiology and E-C-G) (salaries and wages) costs are: 81566 ID, radiology, Lab, Neurophysiology E-C-G [Table 1].
(C) Overhead Hospital (Indirect Costs)
Indirect costs, often called overhead, includes all costs other than direct material and direct labor. [Exhibit 1] and [Exhibit 2] showing the Overhead of Neurosurgical hospital.
Table 1: Summary of Total Costs in Neurosurgery Hospital

Items Costs Direct Materials Direct Labor Overhead Sum Mission Centers Operation I-C-G Unit 88734 25826 35693 Ward 66310 797948 952992 66960 1111757 1204543 11570 531738 579001 Support Centers Radiology Laboratory 14193 81566 677199 772958 19676 152348 336939 508963 Neurophy Siology 2793 12048 180653 195494 E-C-G 280 10450 230245 240975
see Exhibit[1] and[2]
DEPARTMENTALIZATION OF OVERHEAD
Departmentalization of overhead means dividing the company (Hospital) into segments called department (Lal & Srivastava, 2009). The model proposed for the application of our study of Neurosurgical Hospital it can see in diagram [1].
Neurosurgical Hospital Services cost Centers Accounting & Personal Statistics Laundry Housekeeping Pharmacy Allocation To Maintenances Stores Support cost Centers Radiology Laboratory Neurophysiology E-C-G Mission cost Centers Ward Operation Unit I-C-G
Types of Costing Accounting Systems in Hospital There are two methods of accumulating products costs in hospital: 1. Process costing 2. Job-order costing (Kukla, 1986).
Process costing system. In this system, the cost of a product or service is obtained by assigning costs to masses of similar units and then computing unit costs on an average basis (Horngren, 1994).
RELATIVE VALUE UNITS (RVUS)

It is one of the methods which used by hospitals to compute the cost of intermediate products (such as a laboratory tests and radiology procedures). Relative value units (RVUs) can be used within a process costing system to more accurately allocate costs among specific services provided within each department (Kukla, 1986). Most hospitals managers consider RVUs to be the most accurate approach to costing currently available (Young, 2008) the relative value units are derived using the weighted value of time method. Application of process costing system in support cost centers (intermediate products) in Neurosurgical Hospital by use RVUs (using the weighted value of time method).
Electro Cardio Graphic (E-C-G)

The E-C-G Unit of Neurosurgical hospital had direct costs of (1030) and allocated service center costs of (230245) for full costs of (240975 ID). During the year 2005. And it performed 6240 test of E-C-G. What is the full cost of E-C-G test? What kind of cost system are you using? Answer: Because the department s only product is one kind of tests, the cost can be attached to a procedure simply by dividing the total costs by the number of procedures conducted. As a result, the full cost per E-C-G test is 38.6 ID (see the illustrate 1) .This is a process costing system- one in which all units worked on in the cost center are more or less identical.
Illustrate
Total costs (direct and indirect costs) of E-C-G2005 240975 ID table 6 Number of tests performed in 2005 are..6240 test __________ Cost per Test..... 38.6 ID
Laboratory
Now we have a more complex department is Laboratory d had 16 kinds of
tests and some of them require time more than the others that mean it requires overhead is driven by complex test if we use average per cost equal to all test, it would be misleading. We used steps (1), (2), (3), (4) to development RUVs in laboratory,
(A) RUVs for Test in Laboratory (Table2)
Table 2
Time Per Avg Time per Test(min) (1) Test (2) Hematology tests group(1) : Hb% 10 25.625 P.C.V 10 25.625 E.S.R 70 25.625 W.B.C 10 25.625 L.E.S 35 25.625 Smear 15 25.625 General Blood Tests group(2) : Blood group 5 25.625 Cross match 20 25.625 Combs test 120 25.625 Cold test 30 25.625 Clinical Chemistry Tests Group (3) : Blood sugar 30 25.625 Blood urea 60 25.625 S. Creatinine 60 25.625 Urea Acid 45 25.625 G.O.T 45 25.625 G.P.T 45 25.625 Sum of times 410 Numbers Tests 16 Avg time per Test 25.625 Tests NO Relative Value Units per Test (RVU )(3)=(1) (2) 0.390 0.390 2.731 0.390 1.365 0.585 0.195 0.780 4.682 1.170 1.170 2.241 2.241 1.756 1.756 1.756
B. Weighted Average Cost Per RVU in Laboratory (Table 3)
Table 3
RVU Per Test(1) Tests NO Complete blood tests group(1) : Hb% P.C.V E.S.R W.B.C L.E.S Smear Blood group Cross match Combs test Cold test Blood sugar Blood urea S. Creatinine Urea Acid G.O.T G.P.T The Sum 0.390 0.390 2.731 0.390 1.365 0.585 0.195 0.780 4.682 1.170 1.170 2.241 2.241 1.756 1.756 1.756 8465 7040 4142 7685 3040 5128 5350 5023 315 12 315 2981 2981 720 720 720 54737 3301 2745 11311 2997 4149 2999 1043 3917 1474 14 368 6680 6680 1264 1264 1264 51470 Performed Tests Adjusted Number of Test Performed (2) (3) = (1) (2)
General Blood Tests group(2) :
Clinical Chemistry Tests Group (3) :
C. Weighted Average Cost Per Test
Total cost (direct and indirect costs) for operating laboratory ..508963 [Table 4 ] Adjusted number of Tests performed for laboratory ...........51470 [Table 4] _______________ Weighted average cost per test 9.888 DI
D. RVU Cost Per Period (Table 4)
Table 4
Relative Weighted Value Per Average Test (2) Cost Per Test (1) Hematology tests group(1) : Hb% 9.888 0.390 P.C.V 9.888 0.390 E.S.R 9.888 2.731 W.B.C 9.888 0.390 L.E.S 9.888 1.365 Smear 9.888 0.585 General Blood Tests group(2) : Tests No. Blood group 9.888 0.195 Cross match 9.888 0.780 Combs test 9.888 4.682 Cold test 9.888 1.170 Clinical Chemistry Tests Group (3) : Blood sugar 9.888 1.170 Blood urea 9.888 2.241 S. Creatinine 9.888 2.241 Urea Acid 9.888 1.756 G.O.T 9.888 1.756 G.P.T 9.888 1.756 The Sum Adjusted Cost Per Test (3)=(1)(2) Number of Tests Performed(4)
Allocated Allocated Costs(5)=(3)( Coste (5) = (3) 4) (4)
3.856 3.856 27,004 3.856 13.497 5.784 1.928 7.712 46.295 11.568 11.568 22.159 22.159 17.363 17.363 17.363
8465 7040 4142 7685 3040 5128 5350 5023 315 12 315 2981 2981 720 720 720 54737
33026 27148 111850 29633 41031 29662 10314 38737 14582 139 3643 66055 66055 12501 12501 12501 508963
Actually during the year 2005, the laboratory performed tests 54,737 tests [Table5] With total costs of ID 508,963, ( Step C), if we divide 508963 ID by the total number of tests the department , we would have a meaningless average it is 9.298 ID. Assume further that we wish to know the laboratory tests cost for two patients, each of whom received two tests. If we use the average cost per test 9.298 ID, the cost for each patient would be ID 18.596 . However, if Patient A received two Hb% and Patient B received two E.S.R tests; these totals would be very misleading. To address this problem, the laboratory have decided, to use relative value units approach. An RVU approach uses information of a weight to each Test based on its complexity. For illustrative purposes, The Hb% test is worth 3.856, Adjusted
RVU and a E.S.R test is worth 27.004,Adjusted RVU (see illustrate 2). Intuitively, this makes sense, since we know that a E.S.R. test is a more complex test ( requires at least 60 minutes to be ready, all overhead is driven by test complex) than Hb% test( requires only five minutes to be ready). Thus, given that a E.S.R. test is 7 times more complex than a Hb% test, based on its RVUs, it makes intuitive sense that its cost should be 7 times that of Hb% test. Finally, we can determine costs of tests of all the remaining departments by use RVU approach in Neurosurgical hospital (Radiology, and C-I-G centers).
Illustrate (2)
Hb% test(patient A) E.S.R test (patient B) Number of Units 2 2 Adjusted RVU 3.856 27.004 Cost of test 7.7.12 54
Discussion
Finally we can see the summary of cost per units within mission cost centers and in Neurosurgical hospital for 2005, in [Table 5] Table 5: Cost Per Units in Mission Cost Centers
Items Direct materials Direct labor Overhead Total costs Volume of units(bed/day or operation) Unit Costs Ward 88734 66310 797948 952992 *22500 42 Mission Cost Centers Operation Unit I-C-G 25826 35693 66960 11570 1111757 531738 1204543 579001 **1166 1033 ***3650 158
*(100 beds 225 days = 22500 bed/day)( Ward occupancy rate 70%) ** Number of operations *** (10 beds 365 days=3650 bed/day)(I-C-G occupancy rate 100%)
And in the end the Neurosurgical hospital has diversity of Cost per Units within all mission cost centers and support cost centers as following: bed/dayoperation- bed/day, in Ward, Operation Unit, I-C-G, within mission cost centers, respectively.
CONCLUSION
Finally, the cost analysis of the hospitals provides useful information to the hospital management teams in a variety of areas: The process of analyzing costs by department. Pricing Decision. Budgeting Cost Control. Quality of care. Planning. Efficiency in the provision of services. Unit costs.
REFERENCES
Blocher , Edward J. & Chen , Kunj , H. & Lin , Thomas W. : Cost Management A Strategic Emphasis , 3th Ed, Tata McGraw-Hill Edition, 2007. Horngren, Charles T. & Foster, George.& Data, Srikant Cost Accounting Managerial Emphasis 8th Ed, Prentice Hall, Inc.1993. Kukla SF. Cast Accounting and Financial Analysis for the Hospital Administrator. American Hospital Publishing lnc., Chicago. Illinois. 1986. Kishore , Ravi , M. (2006 ) Cost & Management Accounting 4th Ed, Taxmann Allied Services (p) Ltd. Neurosurgical Hospital in Iraq-Records of Stores, 2005. Neurosurgical Hospital in Iraq-Records of Statistics, 2005. Ramsey IV, R. (Fall, 1994). Activity-Based Costing for Hospital. Hospital & Health Services Administration. 39, pp. 385-396. Tulsian P.C. (2008) Cost Accounting 1st Ed, Prentice S.chand & Company Ltd, India. Young W. David , (2008), Management accounting in health care organization 2cd Ed, Jossey-Bass.
Exhibit 1: Showing the Basis of Apportionment of Overhead Items to Mission Cost Centers and Support Cost Centers
Items of overhead Ward Radiolo E-C-G gy logy tory physio Labora Neuro Accou nting and person al Operation unit I-C-G Housekee ping Store Maint enance Statist ic Laund ry Pharm acy
Bases of Allocation
Mission cost centers
Support cost centers
Services cost centers
sum
Indirect material: 300 3871 7512 646 240 371 306000 8214 5800 7320 6431 3230 2420 1615 5267 5423 1311 250 4089 3218 4774 4420 1516 1297 1232 1240 2045 1200 320 315 250 180 25 153 30 170 30 25 30 1500 1948 350 35 1412 8450 150 40 1450 3867 450 1903 33264 68808 306000 2457
Cleaning materials Water
Direct traced
Electricity
Medical gases
No. of water point No. of light point Direct traced
Stationary
Direct traced
Indirect labor: 45300 15840 15133 15140 15840 16546 15840 15840 22902 15100 7550 30286 37750 22650 7550 12080 13590 15133 19630 15840 15100 15133 30200 16546 30200 15275 15100 14992 302086 226000
No. of Worker
Wages of employees Wages of management Others expenses: 1735 1800 1900 3420 2750 1800 2640 400
No. of Worker
Maintenance
----
400
600
200
400
400
200
18645
Depreciation: square meter 16553 101730 203460 81384 508650 2742 3420 152595 16966 15343 7130 7058 6808 50865 422933 433333 349934 49400 49400 49400 49400 6558 122076 20800 8140 31400 4070 52400 4050 9620 10400 4150 4500 10400 3750 10400 8100 10400 7900 1550000 116576 20282 1220760
Building
Furniture
Cars
Value of furniture Direct traced
Medical equipment
Value of medical
Exhibit 2: Showing Basis of Allocation Services Cost Centers Costs to Mission Cost Centers and Support Cost Centers
departments Ward Pharmacy Radiolo Laborat Neurophy E-CG 207934 2323 4154 10243 6829 8536 5122 8536 4154 2769 2740 2796 3253 6042 8132 3485 5344 4154 (119507) 54399 74422 65124 52269 110009 71510 3253 (74763) siology 152134 4647 4154 8536 ory 280550 9294 11076 13657 gy 615774 9294 13845 17072 13657 11951 15365 8307 5538 11076 3485 2323 6970 1004415 480584 629812 Laundry Statistics Maintena nce Stores Operation unit I-C-G Housekee ping
Bases Allocation
Mission cost centers
Support cost centers
Services cost centers Accountin g and personal 67845 (67845)
sum
Direct cost
3866781
Accounting and personal Housekeeping
Stores
Maintenance
5591
4472
3913
13976
22362
11182
5591
(67086)
Statistics
32444
40554
8120
(81118)
Laundry 27454 34318 6863 (68635)
76474
2549
12746
(91769)
Pharmacy
No. of worker Square meter Value of materials Issued Number of medical equipme nt Number of patients Number of beds Number of requisitio ns 797948 1111757 531738 677199 336939 180653 230245 -0-0-0-0-
-0-
-0-
-0-
3866781
Sum
Higher Education as a Knowledge Agent A Study in Globalised Era

Vidhi Agrawal, S.C. Chitkara1 and Vipin Agrawal2
Ajay Kumar Garg Institute of Management, Ghaziabad 1 SSV (PG) College, Hapur 2 Integrated Academy of Management and Technology, Ghaziabad
E-mail:vidhiagrawal@akgim.edu.in
GLOBALISATION AND KNOWLEDGE ECONOMY

Globalisation and the knowledge economy are seen to fuel each other as well as driving trends in higher education. Internationalisation is shown to be intimately related to, but conceptually distinguishable from, globalisation, and to occur partly as a consequence of the latter (and of developments in the knowledge economy) but partly also as a response to these forces. Research findings reveal the difficulties that international and immigrant students experience in their studies and research on account of the different Higher Education (HE) and cultural systems with which they become involved (see Angelova & Riazantseva, 1999; Lay et al., 2004). These difficulties are becoming more obvious and common with more extensive internationalisation of HE. Presently, hundreds of thousands of students travel abroad each year to pursue overseas education. However, when they arrive at designated foreign HEIs with great expectations, many are overwhelmed by the significantly different academic disciplines and standards, often due to poor preparation.
For countries in the vanguard of the world economy, the balance between knowledge and resources has shifted so far towards the former that knowledge has become perhaps the most important factor determining the standard of living more than land, than tools, than labour. Todays most technologically advanced economies are truly knowledge-based (WB, 1999b, p. 16).
CONCEPTUAL APPROACHES TO THE KNOWLEDGE ECONOMY

We live in a social universe in which the formation, circulation, and utilization of knowledge presents a fundamental problem. If the accumulation of capital has been an essential feature of our society, the accumulation of knowledge has not been less so. Now, the exercise, production, and accumulation of this knowledge cannot be dissociated from the mechanisms of power; complex relations exist which must be analyzed (Foucault, 1991, p. 165).
HIGHER EDUCATION AS A KNOWLEDGE AGENT

One distinctive feature in the age of globalisation is the rise of the knowledge economy that is achieving global dominance. In the knowledge economy, knowledge is seen as a tradable commodity to be produced and consumed in the global marketplace. Correspondingly, HE as a knowledge agent is viewed as a commodity to be sold. Close connection with the knowledge economy has led to an expansion of HE, as evidenced by a phenomenal growth in enrolment in the last quarter of the 20th century (Guruz & Pak, 2002) and the beginning of this century. This growth simultaneously intensifies the internationalisation of HE, which is considered to be an active response to globalisation. One consequence of such processes is that cultural diversity has become a notable phenomenon on campus. This presents a great challenge to universities as to how to accommodate culturally diverse student populations.
Knowledge, Its Significance and Usages

As regards to the nature of knowledge, Thomas Jefferson (as cited in New Zealand, ITAG, 1999) stated, He who receives an idea from me receives instruction himself without lessening mine; as he who lights his taper at mine receives light without darkening me (p. 5). His vision highlights two points. One is that unlike the other two factors of production, labour and capital (as traditionally conceived), knowledge can be shared with more users and not only not be depleted (nonrival), but be actually enriched, through its application.
Higher Education as a Knowledge Agent 341
Codified and Tacit Knowledge

Knowledge can be divided into codified and tacit knowledge. Codifiable knowledge can be written down and transferred easily to others, whereas tacit knowledge is often slow to acquire and much more difficult to transfer (Great Britain, Dept. of Trade and Industry, 1998, p. 3). Codified knowledge is normally typified as theoretical knowledge.
Knowledge and Information

Knowledge and information are often used interchangeably. The difference between information and knowledge is difficult because both are pervasive and because we often use the terms interchangeably. For some this is a deliberate choice. The Spanish sociologist, Manuel Castells, for example, presents a conscious conflation of knowledge and information as he positions information on the same conceptual level as knowledge (Stehr, 2001, p. 27).
HIGHER EDUCATION IN THE CONTEXT OF GLOBALISATION AND THE KNOWLEDGE ECONOMY

Globalisation is profoundly affecting the world economy, which is increasingly based on knowledge and the spread of information, as formed by national and local institutions. Many observers interpret todays world as shifting towards a knowledge economy prompted by globalisation (Skyrme, 1997). Knowledge is increasingly seen as vital for the expanding of this global economy.
Interrelation Between Globalisation and the Knowledge Economy

As Martin Carnoy and Diana Rhoten (2002) suggest, if knowledge is fundamental to globalization, globalization should also have a profound impact on the transmission of the knowledge (p. 1). Similarly, Giddens (2000a) observes that the intensifying of globalization has been deeply influenced by the information technology revolution, while the knowledge economy itself is becoming globalized (p. 65). Houghton and Sheehan (2000) identify both the knowledge intensity of economic activities, and the increasing globalisation of economic affairs as major forces in the production of the knowledge economy (p. 5).
The Knowledge Economy and Higher Education

As discussed earlier, ongoing global economic growth is much more knowledge-based than ever before. For example, knowledge-based economies account for 50% of GDP in the OECD markets (Stevens, 1996; OECD, 1996c). Fundamental to understanding this new global knowledge economy has been a rediscovery of the economic importance of education (Papadopoulos, 1994). Clearly, as a source of knowledge, education in general, but HE in particular as its most value-added portion and its cutting edge, play a pre-eminent role in the development of human resources, in the production of research and scientific knowledge and in the education of competent future workers.
IMPACTS OF GLOBALISATION AND THE KNOWLEDGE ECONOMY UPON HIGHER EDUCATION

The impacts of globalisation and the knowledge economy are widespread and far reaching in todays world. HE, closely related to knowledge production and dissemination, is not immune from this. Therefore, the impacts of globalisation and the knowledge economy on HE must be considered.
Impacts of Globalisation on Higher Education

Traditionally, regular education systems have run under the aegis of a countrys government. The government executes its control, regulation, co-ordination, legitimisation and funding in the process of teaching and learning. In return, education systems produce good and competent citizens who are supposed to contribute to the society after having become sufficiently equipped to establish their own careers with what they have learned at school (Carnoy, 1999). Simply put, education systems are traditionally created and designed to serve a country.
INTERCULTURALISATION IN A GLOBAL CONTEXT

Interculturalisation refers to the interaction of cultures and asserts the importance of fostering and guiding such cultural interaction. Without interculturalisation, societies risk losing their culture, just as Hettne says they risk losing their nationness (Hettne, 1996, p. 1).
Distinctiveness of Interculturalisation as a Process Shaping Higher Education

Interculturalisation as an emergent fourth force alongside globalisation, the
knowledge economy and internationalisation is becoming increasingly prominent and important. Knight (2003), in her Updating the Definition of Internationalization claims, Internationalization at the national, sector, and institutional levels is defined as the process of integrating an international, intercultural, or global dimension into the purpose, functions or delivery of postsecondary education (p. 2).
SUMMARY AND CONCLUSIONS

Globalisation has profound effects on education in the following ways. Firstly, globalisation has changed peoples views about education. Education has become more like a private good in which everything is valued or assessed according to the standard of the market. As discussed earlier the study observes that knowledge has become a commodity, to be traded in the marketplace along with other goods and services. Secondly, with the introduction of new technologies into HE systems, the style of teaching and learning is changing and has become more active and efficient. With the continuous evolution of computers, on-line education has begun to gain momentum Thirdly, globalisation requires that HEIs should be much more closely related to the rapidly changing and increasingly integrated world economy. The HEI cannot be an ivory tower, isolated from the global society as national educational quality is gauged at an international level or standard. Fourthly, in a more demanding market-oriented environment, the amount of money that should be spent on national education has become a central issue. There is a deepening conflict between autonomous education systems and self-financing-institutions. Finally, globalisation makes it necessary for universities to position themselves in a radically changing global environment through reform and restructuring, driven by competitiveness and neoliberal values in the global market. In sum, globalisation, as a multifaceted concept and a compound process, has profoundly influenced the reforms and restructuring of HE systems, therefore, worldwide, universities and HE systems are undergoing transformation in response to the multiple impacts and challenges confronting HE in the dramatic dynamics of the global environment, with the knowledge economy as one of its defining features.
REFERENCES
Altbach, P. (2001). Higher education and the WTO: globalization run amok. international higher education. Retrieved November 28, 2002, pp. 4, from http://www.bc.edu/bc_org/avp/soe/cihe/newsletter/News23/ text001.htm. Angelova, M & Riazantseva, A. (1999). If you dont tell me, how can I know? A case study of four international students learning to write the U.S. way. Written Communication, 16 (4), October 1999, pp. 491-525. Angelova, M & Riazantseva, A. (1999). If you dont tell me, how can I know? A case study of four international students learning to write the U.S. way. Written Communication, 16 (4), October 1999, pp. 491-52. Burbules, N. C. & Torres, C. A. (2000). Globalization and education critical perspectives. New York, London: Routledge. Carnoy, M. (1999). Globalization and educational reform: what planners need to know. Paris: UNESCO International Institute for Educational Planning. Carnoy, M. (1999). Globalization and educational reform: what planners need to know. Paris: UNESCO International Institute for Educational Planning. David, P. A. (1993). Knowledge, property and the system dynamics of technological change. In L. Summers & S. Shah (Eds.), 1992 proceedings of the World Bank annual conference on development economics: supplement to World Bank Economic Review, Washington, DC. Foucault, M. (1991). Remarks on Marx: conversations with Duccio Trombadori (R. J. Goldstein & J. Cascaito, Trans.). New York: Semiotext. Giddens, A. (2000a). The Third Way and its critics. Malden, Mass.: Polity Press. Great Britain. Dept. of Trade and Industry. (1998). Our competitive future: building the knowledge driven economy. Retrieved June 30, 2003, pp: 9, from http://www.dti.gov.uk/comp/competitive/an_reprt.htm. Guruz, K. & Pak, N. K. (2002). Globalization, knowledge economy and higher education and national innovation systems: the Turkish case. Retrieved July 4,2003, pp. 72, from http://www.congresslifelonglearning.de/download/52-6_doc_gueruez.pdf. Hettne, B. (1996). Globalization, regionalism and East Asia. Retrieved April 8, 2004, pp. 15, from http://www.unu.edu/unupress/globalism.html. Holsinger, D. (2001). Review on globalization and education: integration and contestation across cultures by Stromquist, Nelly P. and Monkman, Karen.
Houghton, J. & P. Sheehan. (2000). A primer on the knowledge economy. Retrieved July 1, 2003, pp. 28, from http://www.cfses.com/documents/ knowledgeconprimer.pdf. Knight, J. (2003). Updating the definition of internationalization. Retrieved March 30, 2004, pp. 3, from http://www.bc.edu/bc_org/avp/soe/cihe/ newsletter/News33/text001.htm. Lay, S., Yew, T., & Farrell, L. (2004). The root of the confusion: identity . Retrieved April 28, 2004, pp. 9, from http://www.latrobe.edu.au/lasu/ conference/tanyew.doc.
CSR in Indian Organization: Reality or Myth Analysis

Teena Chaudhary
Jaipuria Institute of Management (JIM), Ghaziabad
E-mail: teena.nain@gmail.com
INTRODUCTION
CSR is the notion according to which the corporation has to undertake the responsibility of their activities affecting the society at large. The economic globalization resulted in a demand for corporations to play a central role in efforts to eliminate poverty, achieve equitable and accountable systems of governance and ensure environmental security. There was a need to make business a part of society and to maximize positive benefits that business endeavor can bring to human and environmental well being and to minimize the harmful effects of irresponsible business. CSR is a concept whereby companies not only consider their profitability and growth, but also the interests of society and the environment by taking responsibility. Indian companies are now expected to discharge their stakeholder responsibilities and societal obligations. All leading corporate in India are involved in CSR programmes in areas like education, health, livelihood creation, skill development, and empowerment of the weaker sections of the society. Distinguished efforts have come from the Tata group, Infosys, Bharti Enterprises,
CSR in Indian Organization 347
Coca Cola India, Pepsico and ITC Welcome group. Over 90 per cent of all major Indian organizations are involved in CSR initiatives. The leading areas where corporations are involved- livelihood promotion, education, health, environment, and womens empowers etc.
LITERATURE REVIEW
In a 1987 empirical study by Khan and Atkinson it was found that a large percentage of the Indian executives studied agreed that CSR was relevant to business and felt that business had responsibility not only to the shareholders and employees but also to customers, suppliers, society and to the State. Both the Indian and UK respondents felt that CSR eventually promotes a better relationship between industry and people, a good work environment, enhanced customer relationships and enhanced corporate image of the company. CSR is a multidimensional concept (Stanwick and Stanwick, 1998) and is comprised of a number of variables like firms profitability, charitable giving, environmental emissions, etc. European Commission (2001) defines CSR as a concept whereby companies decide voluntarily to contribute to a better society and cleaner environment and as a process by which companies manage their relationship with stakeholders. CSR by the World Business Council (2006) as The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. Research found that company CSR programs influence 70 per cent of all consumers purchasing decisions, with many investors and employees also being swayed in their choice of companies. Moon (2002) distinguishes three types of CSR reporting community involvement, socially responsible production processes and socially responsible employee relations. Firms with a high value for social responsibility are much more likely to engage in traditional kinds of plans for social strategy. The use of social strategy depends upon the presence of specific configurations of industry environment, resources and values (Husted and Allen, (2007). Companies consider themselves as an integral part of the society and act in a socially responsible way (European Commission, 2001) that goes well beyond the performance of a narrowly defined economic function (Khan and Atkinson, 1987).
CSR AND INDIA

The current past has seen CSR becoming a process from a concept and also organizations deriving value from this initiative. It is very interesting to note that even though the central government as well as state governments have separate departments for education, and health, headed by a cabinet minister, they form as the most often taken initiatives by corporate sector in India. It is interesting to note that HUL has dovetailed the CSR strategy into their overall business strategy; it achieves the twin objectives of business and social responsibility. The CSR philosophy of this company is its commitment to all the stakeholders consumers, employees, the environment and the society. The initiatives, Shakti programme, which aims at empowering rural women through critically needed additional income by equipping and training them to become an extended arm of companys operation. Godrej Industries views CSR initiatives as philanthropy started by their founders and continues even today. Even its competitor P&G has a different view regarding CSR. P&G believes in building the community in which it lives and operates by supporting the ongoing development of the community. Social projects are based on its motto Business with a Purpose. Reliance ADAG, which emphasized the need to be socially responsible. In case of Tata Steel, the CSR is based on the principle of its founder Jamestji Tata, who said the progress of an enterprise, welfare of people and the health of the enterprise were inextricably linked. Wealth and the generation of wealth have never been ends in themselves, but a means to an end, for the increased prosperity of India. Further its chairman J.R.D. Tata, believed that the task of social progress cannot be undertaken by the Government alone, especially in a country as diverse as India.
Dr Reddys Labs
Dr Reddys lab started LABS (Livelihood Advancement Business School), It trains the under privileged youngsters, even street children for livelihood earnings in the job areas, technology, healthcare, hospitality, finance and marketing issues.
Sun Drops Edible Oil

Sun drops is well known Edible oil in India, it came out with an initiative in which for every liter of Sun drop sold, AFTL will contribute Re. 1 to Narayan Hrudanalay Heart Hospital for the treatment of children with cardiac disorders.
Care Today Foundation

India Today, a leading publishing house of the country, set up Care Today Foundation during the Kargil conflict in 1999.
Citi Bank
Citibank provides option to its account holders to contribute Rs. 100 every month for education of underprivileged children. Citibanks most consistent programme with CRY has been the Citibank CRY Affinity Credit Card. Every time a person subscribes to the card or spends on it. This partnership has been supporting project Kislay which works with children in a slum in Delhi.
Huls Shakti
Project SHAKTI is HULs initiative to upliftment of standard of living in rural India by creating income-generating capabilities for underprivileged rural women by providing a small-scale enterprise opportunity, and to improving rural lives through health and hygiene awareness.
ITCs E-Choupal
ITCs Agri-Business is Indias second largest exporter of agricultural products. Through the e- Choupal initiative, ITC aims to confer the power of expert knowledge on even the smallest individual farmer. ITCs e-choupal is the singlelargest information technology-based intervention by a corporate entity in rural India, Transforming the Indian farmer into a progressive knowledge-seeking netizen. The e-Choupal initiative also creates a direct marketing channel, eliminating wasteful intermediation and multiple handling, thus reducing transaction costs and making logistics efficient. ITC e-Choupal creatively leverages information technology to set up a meta-market in favor of Indias small and poor farmers, who would otherwise continue to operate and transact in unevolved markets. Free access to Internet is also opening windows of rural India to the world at large. ITC eChoupal is now being regarded as a reliable delivery mechanism for resource development initiatives.
Daburs CSR
Initiatives are driven through Sustainable Development Society or SUNDESH; it is sworn to the mission of ensuring overall socio-economic development of the rural & urban poor on a sustainable basis, through different participatory and
need-based initiatives. It aims to reach out to the weaker and more vulnerable sections of the society.
Proctor & Gamble

The entry of P&G into the field of CSR with project PEACE an environmental education programme followed by FUTURE FOCUS first ever career guidance service. P&G experimented with different projects like: Project DRISHTI, Project SHIKSHA, Project POSHAN .
TATA Salts Desh Ko Arpan Programme

This programme was launched by the pioneers and undisputed leaders in the packaged and iodized salt category. Through the Desh Ko Arpan programme, Tata contributes 10 paise for every kilo of Tata Salt, sold during specific periods, to the education of underprivileged children and enable underprivileged children have an opportunity to develop their sports ability and pursue higher education.
BREAST CANCER AWARENESS CAMPAIGN

It is the most popular cause related and CSR programme. Several companies joined hands to make it success. This campaign was associated with PINK color. The following companies involved in this campaign:
Avon
Women are the heart of Avons success and Avon continues to support and understand their needs through Avons Breast Cancer Crusade. The goal of the Avon Foundation Breast Cancer Crusade is to improve access to quality breast health care for underserved, uninsured and low income populations, and to support biomedical research focused on prevention and improved methods of diagnosis and treatment to Cure and prevent breast cancer.
Kodak
Kodaks impressive involvement includes a highly successful sponsorship of Fashion Targets Breast Cancer 2005 Contest.
Marks & Spencer

M&S developed a range of lingerie that is suitable for women that have had breast cancer. M&S has donating 10% of the sale of all the items in this range.
Industry Association Initiative

Leading Chambers of Commerce and Industry of India are traditionally active in social and environmental norms. FICCI and CII work closely in partnership with Government and other organizations. SDC set up by CII, ensures corporate participation in social development and provides an institutional base for social activities of the corporate sector, on community development, disaster management, education and literacy, population and health, vocational training and womens empowerment etc. Indian Business Trust for HIV/AIDS was set up by CII to help extent the impact of national programme for prevention and control of HIV/AIDS. Social summit being organized every year by CII to provide opportunities and platform for companies to take up social responsibility CII has established Environment Management Department to undertake a range of activities, environmental research, organizing practical initiatives. FICCI set up Socio Economic Development Foundation to deal with CSR. ASSOCHAM through their members provided drinking water in 110 villages by 1996 on occasion of its platinum.
CONCLUSION
CSR is not a new-fangled; it marks its beginning as old as trade and business itself. According to some well-known economist such as Adam Smith, Andrew Carnegie, there are two principles necessary for the capitalism to work. First, the charity principle required more fortunate members of society to assist its less fortunate members, including the unemployed, the disabled, the sick, and the elderly. Second, the stewardship principle required businesses and wealthy individuals to see themselves as the stewards, or caretakers, of their property. In present era, CSR has become a must. Public institutions (European Union, United Nations, even the ILO), the business world, employers, civil society organizations at least some of them seem to be at one in the conviction that CSR is an essential element of present and future social policies, in all the continents and all the sectors. Organizations are increasingly realizing that CSR is no longer a collection of discreet practices or occasional gestures motivated by marketing or public relations.
HURDLE TO CSR INITIATIVES IN INDIA

Lack of community participation. Need to build local capacities. Issues of transparency. Non-availability of well organized non-governmental organizations. Visibility factor. Narrow perception. Non-availability of clear CSR guidelines. Lack of consensus on implementing CSR issues.
Paper on Employee Retention

Swati Gupta
Singhania University
E-mail: vcagzb@gmail.com
INTRODUCTION
Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the project. Employee retention is beneficial for the organization in all ways. Corporate is facing a lot of problems in employee retention these days. Hiring knowledgeable people for the job is essential for an employer. But retention is even more important than hiring. There is no dearth of opportunities for a talented person. There are many organizations which are looking for such employees. If a person is not satisfied by the job he is doing, he may switch over to some another more suitable job. High rate of employee turnover is a warning to the management that something is wrong with the health of the organization. In todays environment it becomes very important for organizations to retain their employees. The management should try to retain its employees because employee turnover involves huge costs. The management spends money on recruitment, selection, training of new employees. If an employee leaves an organization, the expenditure incurred on his employment, training etc. will go waste. Employees stay and leave organizations for some reasons. The reason may be personal or professional. These reasons should be understood by the employer and should be taken care of. The
organizations are becoming aware of these reasons and adopting many strategies of employee retention. The top organizations are on the top because they value their employees and they know how to keep them glued to the organization. It is the responsibility of the employer to retain their best employees. If they dont, they would be left with no good employees. A good employer should know how to attract and retain its employees. Employee retention would require a lot of efforts, energy and resources but the results are worth it.
SCOPE OF RETENTION
Now a days employee turnover is a universal problem. It is a natural tendency of an employee that they switch over to a new job which is more descent and comfortable and is better paid. This leads to an employee turnover. Upto a certain percentage, employee turnover is tolerable, but beyond this it becomes a serious problem. Employee turnover may prove to be a costly process as it involves High cost of procurement. Training cost. Low employee morale and team spirit. Gap in filling the vacancies therefore affecting smooth working of an organization. Higher rate of industrial accidents. Production equipments are fully utilized. Scrap and waste rates increases when new employees are involved. Market reputation of the employer is adversely affected if orders are not executed on time or services are not provided efficiently.
IMPORTANCE OF RETENTION
Now that so much is being done by organizations to retain its employees, why is retention is so important? Is it just to reduce the turnover cost? Well, the answer is a definite no. Its not only the cost incurred by a company that emphasizes the need of retaining employees but also the process of employee retention will benefit an organization in the following ways:
The Cost of Turnover

While it is difficult to fully calculate the cost of turnover industry experts often quote 25% of the average employee salary as a conservative estimate.
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Loss of Company Knowledge

When an employee leaves, he takes with him valuable knowledge about the company, customers, current projects and past history (sometimes to competitors).
Interruption of Customer Service

Customers and clients do business and relationships are developed and when an employee leaves, the relationships that employee built for the company are severed, which could lead to potential customer loss.
Turnover Leads to More Turnovers

When an employee terminates, the effect is felt throughout the organization. Coworkers are often required to pick up the slack. The unspoken negativity often intensifies for the remaining staff.
Goodwill of the Company

The goodwill of a company is maintained when the attrition rates are low. Higher retention rates motivate potential employees to join the organization.
Regaining Efficiency
If an employee resigns, then good amount of time is lost in hiring a new employee and then training him/her and even after this one cannot assure of the same efficiency from the new employee.
STRATEGIES FOR RETENTION

The reason for turnover may be personal or professional. These reasons should be understood by the employer and should be taken care of. Select the right people in the first place through behavior based testing and competency screening. The right person, in the right seat, on the right bus is the starting point. At the same time, dont neglect to hire people with the innate talent, ability, and smarts to work in almost any position even if you dont currently have the best match available. Hire the smartest people you can find to reduce employee turnover. Once the right person is recruited efforts should be made to retain them from getting poached. The organizations are becoming aware of the cost involved in employees from getting poached. The organizations are becoming aware of the cost involved in employee turnover and adopting many strategies for employee retention.
COMPENSATION
Compensation constitutes the largest part of the employee retention process. The employees always have high expectations regarding their compensation packages. Compensation packages vary from industry to industry. So an attractive compensation packages plays a critical role in retaining the employees.While setting up the packages, the following components should be kept in mind:
Salary and Monthly Wage

It is the biggest component of the compensation package. It is also the most common factor of comparison among employees. It includes basic wage, house rent allowance, dearness allowance, city compensatory allowance.
Bonus
Bonuses are usually given to employees at the end of the year or on a festival.
Economic Benefits
It includes paid holidays, leave travel concession etc.
Long-Term Incentives
Long-Term Incentives include stock options or stock grants. These incentives help retain employees in the organizations startup stage.
Health Insurance
Health insurance is a great benefit to the employees. It saves employees money as well as gives them a peace of mind that they have somebody to take care of them in bad times.
After Retirement
It includes payments that an employee gets after he retires like EPF (Employee Provident Fund) etc.
Miscellaneous Compensation
It may include employee assistance programs (like psychological counseling, legal assistance etc.), discounts on company products, use of a company cars, etc.
GROWTH AND DEVELOPMENT

Growth and development are the integral part of every individuals career. If an employee cannot foresee his path of career development in his current organization, there are chances that hell leave the organization as soon as he gets an opportunity. The important factors in employee growth that an employee looks for himself are:
Work Profile
The work profile on which the employee is working should be in sync with his capabilities. The profile should not be too low or too high.
Personal Growth and Dream

Employees responsibilities in the organization should help him achieve his personal goals also.
Training and Development

Employees should be trained and given chance to improve and enhance their skills.
SUPPORT
Lack of support from management can sometimes serve as a reason for employee turnover. Supervisor should support his subordinates in a way so that each one of them is a success. Management should try to focus on its employees and support them not only in their difficult time at work but also through the times of personal crisis. Management can support employees by providing them recognition and appreciation. Employers can also support their employees by creating an environment of trust and inculcating the organizational values into employees. Thus employers can support their employees in a number of ways as follows: By providing feedback By giving recognition and rewards By counseling them By providing emotional support
RELATIONSHIP
Sometimes the relationship with the management and the peers becomes the reason for an employee to leave the organization. There are times when an employee starts feeling bitterness towards the management or peers. This bitterness could be due to many reasons. This decreases employees interest and he becomes de-motivated. It leads to less satisfaction and eventually attrition. To enhance good professional relationships at work, the management should keep the following points in mind. Respect for the individual Relationship with the immediate manager Relationship with colleagues Recruit whole heartedly Promote an employee based culture Individual development Induce loyalty It is not about managing retention. It is about managing people. If an organization manages people well, employee retention will take care of itself.
ENVIRONMENT
The organization is second home to the employee. Organization environment includes culture, values, company reputation, and quality of people in the organization, employee development and career growth, risk taking, leading technologies, trust. Types of environment the employee needs in an organization Learning environment: It includes continuous learning and improvement of the individual, certifications and provision for higher studies, etc. Support environment: Organization can provide support in the form of work-life balance. Work life balance includes flexible hours, telecommuting, dependent care, alternate work schedules, vacations, and wellness.
Work environment: It includes efficient managers, supportive co-workers, challenging work, involvement in decision-making, clarity of work and responsibilities, and recognition. Lack or absence of such environment pushes employees to look for new opportunities. The environment should be such that the employee feels connected to the organization in
OTHER REMEDIAL MEASURES

According to research by the Gallup organization, encourage employees to have good, even best, friends, at work. Provide opportunities for people to share their knowledge via training sessions, presentations, mentoring other and team assignments. Demonstrate respect for employees at all times. Listen to them deeply; use their ideas; never ridicule or shame them. People want to enjoy their work. Make work fun. Enable employees to balance work and life. Allow flexible starting times, core business hours and flexible ending times. Involve employees in decisions that affect their jobs and the overall direction of the company whenever possible. Recognize excellent performance, and especially, link pay to performance to reduce employee turnover. Base the upside of bonus potential on the success of both the employee and the company and make it limitless within company parameters. Staff adequately so overburden is minimized and people dont wear themselves out. Nurture and celebrate organization traditions. Recognizing professional as well as personal significant events such as birthday gifts, wedding gifts, anniversary gifts etc. Provide opportunities within the company for cross-training and career progression. Communicate goals, roles and responsibilities so people know what is expected and feel like part of the in-crowd.
CONCLUSION
Management should be interested in their employees interest because satisfied and committed employees have lower rate of turnover. Management typically makes considerable efforts to retain employees; they get pay raises, praise, recognition, increased promotional opportunities, and so forth. Management should realize that high pay alone is unlikely to retain employees. The most important things management can do to retain employees is that not a single strategy is enough to retain all the employees.
Management should also be aware that employees are unique individuals having their own mind sets and they should be treated accordingly. So instead of using any one strategy for all, a combination of all the strategies should be used. Every strategy goes hand in hand. More important, the strategies used for retention are controllable by management.
REFERENCES
Love em or Lose em: Getting Good People to Stay By Bererly Kaye, Sharon Jordan, Evans. Managing Employee Retention: A Strategic Accountability Approach By Jack J. Philips, Adele O. Connell. Retention Leadership: Three Key Drivers for Retaining the Best of the Best in your Organization By Karla Brandau. Retaining Talent: A Benchmarking Study By Paul R. Bernthal, Richard S. Wellins.
Globalization and its Impact on Indian Education

Kuldeep Singh
Department of Economics S.S.V. (P.G.) College Hapur (Ghaziabad)
E-mail: shivacomputer26@yahoo.com
INTRODUCTION
Globalization is the process of integrating various economies of the world without creating any hindrances in the free flow of goods and services, technology, capital and even labour or human capital. Basically, Globalization signifies a process of internationalization plus liberalization. Globalization is the closer integration of the countries and peoples of the world which has been brought about by the enormous reduction of costs of transportation and communications and the breaking down of artificial barriers to the flow of goods and services, capital and knowledge. Globalization is a new contemporary stage of development of capitalism over the world. It is a process of social change in which geographical and cultural barriers are reduced. This break down of barriers is the result of transportation, communication and electronic communication. It also involves a process by which economies of different countries are oriented to a global market and are controlled by multinational and global financial institutions. It is not merely an economic
process; it is also a cultural process. Education, as a service industry, is a part of globalization process under the umbrella of General Agreement on Trade in Services (GATS). India is likely to turn into an increasingly attractive market for foreign universities and hence other nations are going to use GATS provisions to their advantage. In this paper an attempt has been made to study Globalization and its impact on Indian Education.
GLOBALIZATION: MEANING AND SIGNIFICANCE

Globalization can be defined as the expansion of economic activities across political boundaries of nations. It is the process by which events, decisions and activities in one part of the world have significant consequences for other parts of the globe. It represents closer integration of the world economy resulting from increase in trade, investment, finance and multi-country production networks of MNCs. It is a super national phenomenon which transcends national frontiers. Globalization has shrunk the world through the enmeshing bonds of new technology in the context of global neighborhood, global village or the world without borders.
IMPACT OF GLOBALIZATION ON EDUCATION

Globalization has a wide ranging potential to influence all sectors of development. The impact of globalization on education and the manner in which the system should respond to the needs of globalization would require to be studied basically under two broad heads: The needed reforms within the educational system like content, equity and excellence etc. and The fall out of globalization, which will entail determining strategies relating to the impending internationalization of education; finance related issues and privatization of secondary and higher education.
REFORMS REQUIRED IN PRESENT EDUCATIONAL SYSTEM Content of Education

The modern advances in information technology have revolutionized among others, the content of knowledge and the processes of educational transaction. The ever-growing use of electronic media has brought education to the doorsteps of the common man. The objective part of the introduction of the information technology is the need for a continuous up-gradation of the curriculum in order
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to introduce the latest developments relating to various disciplines in the curriculum. The basic objective of globalization is to enhance productivity and to make the educational system an instrument of preparing students, who can compete in the world markets as productive members of the society. This would necessitate making skill training as an integral part of the curriculum besides making attitudinal changes so that the students do not consider it intruding to work with hands. Indian professionals, particularly in information technology, have successfully competed in the world markets especially in software development and data analysis. This, however, cannot continue for a long time to come especially because competition from the developing countries is likely to be very intense in times to come. This underscores the need for emphasizing Research and Development particularly in the newly emerging areas in our university institutions. As suggested by Iyengar(2000), Our human resource development in the future should be planned such that there are identified areas in which India could compete effectively and be innovators rather than just followers. These could include areas such as biotechnology, new power sources, education etc. The Government should focus on these areas and offer incentives to researchers for innovative research in these fields.
Equity, Excellence Syndrome

An important component of globalization in relation of education is the need for producing higher quality manpower that can successfully face competition in the world markets. This would imply selecting the best possible human material and giving them education of the highest quality. This would naturally be relevant to secondary and higher education, because education at the primary level has been considered as the fundamental right of every child in the relevant age group. It would also be necessary to grant financial and other incentives to the meritorious students so that want of resources is not an impediment in their ascent towards the highest forms of education. Globalization has a multi-dimensional impact on the system of education. It has underlined the need for reforms in the educational system with particular reference to the wider utilization of information technology; giving productivity dimension to the educational system and emphasis on research and development. It has also given rise to controversies relating to introducing changes in the inter-sectorial priorities in the allocation of resources leading to the misconceived policy of downsizing of secondary and higher education. It has also advocated privatization of higher education without realizing the dangerous possibility of making the system a commercial enterprise.
It is, therefore, necessary that each country should decide about the nature and extent of globalization that can be constructively introduced in their socioeconomic and educational systems. While it is difficult to resist the temptation of falling in line with the international community, it is necessary that while doing so, the paramount of national interests should be kept in view. This is more so in the field of education which is intimately concerned with the development of human capital. Any thoughtless entry in to the global educational market can end up in harming the vital interests of students for generations to come.
REFERENCES
A. Jalal, Emerging Trends in Education in the Global Era, Kurukshetra, Published by Ministry of Rural Development, p.8, 2005. Arun Nigvekar, GATS and Higher Education, University Grants Commission, 2001. Bikas C. Sanyal, Innovations in University Management, UNESCO, IIEP, Paris, 1995. Bima Basu, Globalization and Education, Kurukshetra, Published by Ministry of Rural Development, p.32, 2006. Batra et al, Globalization and Liberalization: New Developments, Deep & Deep Publications Pvt Ltd., New Delhi, 2000. Carnoy Martin, Globalization and Educational Reforms in Globalization and Education, ed. by Nelly P. Stromquist, Rowman and Littlefield Publishers, 2000. Hallak, Jacques, Globalization, Human Rights and Education, UNESCO, IIEP, Paris, 1999. World Bank, Higher Education in Developing Countries, Peril and Promise, the Report of the Task Force on Education and Society, Washington, 2002.
Union Management Relations: Radical Agreement for Industrial Harmony

Jyoti Sharma, Manoj Agarwal and Suruchi Singh
Ajay Kumar Garg Institute of Management, Ghaziabad
E-mail: jyti0911@akgim.edu.in; manoj0911@akgim.edu.in; suruchi@akgim.edu.in
INTRODUCTION
Trade unions have come to occupy a critical position in the success of industrial relations in the country. Industry today is considered to be a venture based on purposeful cooperation between management and labour in the process of production and maximum social good. The Report of National Commission on Labour (1995) envisaged A quest for industrial harmony is indispensable when a country plans to make economic progress, and it inevitably leads to more cooperation between employer and employees, which results in more productivity and there by contributes in all round prosperity of the country.
RATIONALE OF THE STUDY

Objective of the study is to examine the role of Union and management in development of harmonious Industrial scenario and its impact on the growth
and development of the Organisations. Further, the objective of the study is also to understand the different issues involved and various methods used in maintaining industrial harmony.
METHODOLOGY OF RESEARCH
To understand the dynamics of IR, the authors have chosen ABC Enterprise which is a manufacturing organization, employing more than 1000 employees and has been in news for Management union dispute and bad IR scenario. Since the matter was sensitive, and in order to get the better results, the authors took informal interviews of Management, Unions/workers to understand the present IR Scenario in the organization in totality. The authors have also gone through the various records available with the labour authorities. The informal interviews were also supplemented through review of records. On the basis of the primary data collected, the secondary data were correlated. Through this paper, the suggestions for improving the relations between the management and the workers have been proposed.
ROLE OF UNION MANAGEMENT RELATIONS IN INDUSTRIAL HARMONY: CASE STUDY OF ABC ENTERPRISE Company Profile
ABC Ltd, An ISO 14001:2004 certified company, is an eminent manufacturer and exporter of Components of Automobiles. It had the joint venture between the XYZ Group of companies and 3 international companies. It evolved into a multimillion dollar conglomerate with ancillary units manufacturing different automobile equipments.
Employees Profile
ABC Company is divided into two units comprising of regular and contract workers. In One Unit 500 regular workers are employed and in another unit 175 workers, who are working in shifts. The Contract Workers are engaged in the work through the contracting agencies. There are 7 Unions functioning in the organization out of which some are affiliated to INTUC, BMS, CITU. Out of above, The Union affiliated to CITU is most active and has the maximum membership of workers. The management has not recognized any union officially as such.
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IR Scenario
About a year back, the Top leadership of the company was entirely changed including the CEO of the company and the Head of Operations and HR. The top Management brought many changes in the organization without involving the Middle and lower Management/Officers as well as workers. Their focus changed to increasing productivity through Variable cost reduction by right sizing/retrenchment of workers, curtailing of facilities, increase out put and turn over. More focus was to increase the efficiency by strict target setting and monitoring of different departments and centralized control of activities. There was a difference in style of the leadership and the resistance to change started increasing. Gradually due to lack of communication with the workers and Unions, the Tension between the Management and union grew which started with issues relating to retrenching of Contract labour, tough working conditions and issues relating to wages. This resulted in increase of rumors amongst workers in the form grape vine. The Middle and the Lower Management also did not support the Top Management but at the same time did not raise any voice. They played a neutral role although a very important connecting link between the Top Management and workers. The immediate reason of dispute was the indirect retrenchment of 7 Contract Labors. Meeting of Union and management regarding the retrenchment and issues/grievances, failed which resulted in giving the notice of strike by the union with the charter of demands. The Conciliation officer of the area immediately called Union and Management representatives. The conciliation failed between the parties. After the failure of conciliation process, on the basis of notice of strike, The Labour Commissioner in terms of Section 4 UP ID Act, issued the directions for declaring the proposed strike illegal and fixed a prospective date for hearing in the Labor court and directed the Union/Workers not to go on strike
Incident of Violence
On 13 Oct 2009, HR Representative and Other Top Management representatives assembled at shop floor in the after noon to discuss the call of strike by Union. During the meeting, the situation turned hostile as both parties exchanged heated arguments. Union claims that during the heated arguments, the representatives of management mis-behaved with workers and fired on them by the fire arms which hit workers. As per the Union representatives, the situation became out of control and resulted in injury to management representative and damage of the company property. The role of workers was just an act of self defence. As
per the Management version, they went to the shop floor to discuss the issues and redress amicably, but due to stubborn and negative attitude of office bearers of Union and representatives of workers, the matter took a violent turn and the Union representative/ workers started smashed furniture, windowpanes and other items and attacked the factory officials with steel rods, bricks. This caused grievous injury to Management representatives and resulted in death of one of their executives.
Reasons of IR Scenario Attributed by Management

The management has been trying to adapt to the changes globally and become competitive. For the aforementioned purpose, certain improvements in the process were made and policy were formulated in the grey area. The attitude of the Union affiliated to the CITU has been hostile and they have been spreading false rumours in the organization against the management. On the instigation of the Union, the workers who were drawing good salary were not at all inclined to work and gradually this also resulted in the loss of production. The company abides by the provisions of law.
Reasons of IR Scenario Attributed by Unions

Workers/Unions alleged that with the change in the leadership, the exploitation of workers started and they started finding one or the other reasons to retrench/ terminate their employment by a wrongful means. They alleged that work was not assigned to workers so that they remain idle with the idea of making them irrelevant. The contract workers were engaged on regular nature of Job. Workers also alleged unfair and coercive labor practices, by the management and lack of transparency. They always moved with the guns inside the factory in order to terrorize the workers. There was a rapid rise in the incidents of threatening and intimidation.
Reasons of IR Scenario Attributed by the State/Labour Authorities

As per the Labour authorities, the complaints are being received from the contract labour regarding non payment of dues by the company being the principle employer. Regarding the IR Scenario, the role of Management and Union has not been a responsible one. Both are not willing to bargain across the table.
Impact of the Present IR Scenario on the Company

Due to the present IR Scenario, the loss of productivity, efficiency, growth and development of the company has effected badly. The physical damage of the
property is also another tangible loss. Apart from measurable loss, the intangible loss is enormous. The loss of reputation of the company which could affect the future contracts of the company globally. Relations between Management and Union have become worst which has led to loss of mutual respect and trust.
Broad Reasons of IR Scenario Perceived by Researcher

1. Lack of Communication: It was observed that there was lack of communication between Management and workers/Unions leading to miscommunication between them. This led to spreading of false rumors in the organization and no action/responsive role was played by management and union. The Union also took advantage of the above issue. 2. Lack of transparency and Accountability: On the basis of nature of disputes, resentment amongst the workers and the records of the Authorities, it was observed that their was lack of uniformity, transparency and accountability with in the organization. 3. Non effective Mechanism for Grievance redressal and participative fora: In the company the mechanisam for redressal of grievances of the employees of the organization was missing. The Industrial disputes act 1947 provides for the grievance redressal mechanism and Works Committee, a statutory machinery for the workers participation in deciding/resolving day to day issues at the apex level so that the issues are addressed in a timely manner. The factories Act 1948 provides for the statutory Safety and canteen management Committee for day to day safety issues at workplace and the management of Canteen affairs, respectively. Apart from above, no machinery for the participative fora at the Shop level was in existence for day to day addressing work related issues. This also led to worsening of physical working environment. 4. Role of management and Union: Management and the unions role in resolving of disputes was not good and none of the parties of IR were willing to redress the disputes at various levels and before the Labour authorities. 5. Non compliance of Labour laws by the management: It was observed that the Management was not complying with the provisions of the different labour laws such as : (i) Factories Act 1948 for providing the safe and healthy work environment. Low level of compliance of the act relating to the health, safety and welfare provisions.
(ii) Industrial Disputes Act 1947: No provisions and procedures were complied by the management for retrenchment/lay off of the contract workers. (iii) Contract labour (R&A) Act 1970: The Act provides for the regulation of employment of contract labour. The contract labour were directly engaged in the organization which is clear from the fact that the contract labours were working for last many years. The nature of the employment relations suggests that the contract was Sham. Honble Apex court through the various judgements laid down the Ratio regarding the sham contract. (iv) Equal Remuneration Act: The nature of job responsibility of contract workers and the regular worker were same and they were engaged in the similar areas of work but the contract workers were not paid equal wages. This is also the violation of Directive Principles of State policy. (v) Non Compliance of Social Security provisions: Especially in respect of the Contract Labors, it was observed that the management was not fulfilling the obligations of the Principal Employer, where in provisions relating to Employee Provident fund and Misc. Provisions Act., Employees State Insurance Act, payment of Bonus Act etc. are not being complied with. 6. The role of the state / labour authorities: The role has not been proactive and effective. They could have played an important role in ensuring the working of the statutory participative fora and strictly get the provisions of labour law complied in the organization so that major area of dissatisfaction was addressed.
SUGGESTIONS
The following in brief is suggested for improving the IR Scenario in the organization. 1. The Company should have a well defined communication matrix across the channels. 2. The company should activate the mechanism of speedy Grievance redressal in the company. 3. The company also requires to develop different participative fora to promote workers participation in management.
4. The management should introduce uniform, transparent policies and become a socially accountable company. This would assist in growth and development of the organization, benefit the workers and enhance reputation of the company globally. Today organisations are inclining for attaining international Certifications like SA8000 to develop image of organization. 5. The company has to focus on Labour law compliance emphatically. The organization should fulfill the obligation of principle employer for the contract labour, as they are working in their establishment and working for them. 6. The Labour authorities have to play a more important and proactive role in ensuring compliance of labour laws and intervene as and when required, for industrial peace and harmony in the organization. 7. Both Management and union should play a responsive role in redressing disputes in organization.
Sustainable Growth Through Organisational Change Management

Mitali Pathak
The Institute of Chartered Accountants of India (ICAI)
E-mail: mitalikhosla@yhaoo.co.in
Keywords: Organisation, Change Management, Global Sourcing, Infrastructure, Information Technology
INTROUCTION
The development of the organization and, particularly, how one manages change impacts the success of the business. Organization development activities intervene in the interactions of the people systems such as formal and informal groups, work culture and climate, and organization design to increase their effectiveness using a variety of applied behavioral sciences. Workplace wellness is a serious issue. With stress-related-illness and burnout becoming household words, organisations are increasingly looking for ways to keep your workforce happy, healthy and productive. Effective change management helps change succeed. Organizations whose employees understand the mission and goals enjoy a 29 percent greater return than other firms. U.S. workers want their work to make a difference, but 75% do not think their companys mission
Sustainable Growth Through Organisational Change Management 373
statement has become the way they do business. Software change management is an essential discipline for enterprise Information Technology (IT) organizations. In modern enterprises, software automates a wide variety of business processes. Business process management technology continues to face challenges in coping with dynamic business environments where requirements and goals are constantly changing and thus business users are demanding adaptive and flexible frameworks for process management. Software change management is an essential discipline for enterprise IT organizations. In modern enterprises, software automates a wide variety of business process. Change, although externally may appear to be about changing jobs, places, products, etc. actually occurs first inside peoples heads. And theres the rub. When organizations try to change without understanding this invisible element, any change is doomed to serious problems and failure.
PRINCIPLES OF CHANGE MANAGEMENT & ITS APPLICABILITY

Change management is a basic skill in which most leaders and managers need to be competent. There are very few working environments where change management is not important. When leaders or managers are planning to manage change, there are five key principles that need to be kept in mind: 1. Different people react differently to change, 2. Everyone has fundamental needs that have to be met , 3. Change often involves a loss, and people go through the loss curve , 4. Expectations need to be managed realistically, 5. Fears have to be dealt with courage.
Applicability of Change Management

Give people information - be open and honest about the facts, but dont give overoptimistic speculation. For large groups, produce a communication strategy that ensures information is disseminated efficiently and comprehensively to everyone. eg: tell everyone at the same time. However, follow this up with individual interviews to produce a personal strategy for dealing with the change. This helps to recognise and deal appropriately with the individual reaction to change. Give people choices to make, and be honest about the possible consequences of those choices.
Give people time, to express their views, and support their decision making, providing coaching, counselling or information as appropriate, to help them through the loss curve Where the change involves a loss, identifies what will or might replace that loss - loss is easier to cope with if there is something to replace it. This will help assuage potential fears. Where it is possible to do so, give individuals opportunity to express their concerns and provide reassurances - also to help assuage potential fears. Keep observing good management practice, such as making time for informal discussion and feedback (even though the pressure might seem that it is reasonable to let such things slip - during difficult change such practices are even more important).
CHANGE MANAGEMENT & ITS COMPONENTS

Effective process of a business changes such that executive leaders, managers and front line employees work in consonance to successfully implement the technology or organizational changes. To implement successful implementation, there is colossal amount of change required in existing system. This is expected to be addressed through institutional re-structuring and business process re-engineering. Change Management comprises of basically two components- (a) Capacity Building (b) Knowledge Management.
Capacity Building
Capacity Building means to create an appropriate, dedicated capacity to prioritize, conceptualize, develop and manage e-Governance projects.
Knowledge Management
It means to enable collation, organizing, & facilitation of knowledge-sharing amongst stakeholders across all ULBs at the State & National level.
Models of Change
Nothing is permanent except change. On the similar lines Kurt Lewin proposed a model named Unfreeze-Change-Refreeze that recognizes the need to let go of the past. Besides this managing change through other means may be communicating information and proffering incentives
redefining and reinterpreting existing norms and values, and developing commitments to new ones the exercise of authority and the imposition of sanctions building a new organisation and gradually transferring people from the old one to the new one
Process & Need for Change Management

1. Identifying the need for change in organisation. 2. Designing needs specific changes to curb with the requirement of the organisation. 3. Making others understand why change is necessary for the proper functioning of the organisation. 4. Altering the organisational process like processes, technology and performance meters to incorporate the changes. 5. Managing the production and changes to ensure that customer and the stakeholder continues to be bonded with each other over the long run.
Need for the Change Management

Need for the change management a rises when the organisation goals and objectives are not met as specified. To manage large scale programme To manage Complexities of new environment
THE CHANGE MANAGEMENT SYSTEM

The organisations while designing and implementing the change management system should make sure that the most comprehensive change management process and system has been adopted. Besides this, the system should also cover the aspects of every change. The organisaiton and its employees ought to respect changes. The change needs to be managed, to get better results from the change and not to resist it. Modern non-practical theories on change management, certification-driven quality processes and a maze of change management related guidelines, templates, forms and checklists have made project managers often fall into the trap of change denial and customers perceive it as change aversion. This was not the intent of change management. Good project management is not about identifying a change, analyzing the impact on cost and schedule and then
refusing it. Good project management is about the ability to foresee possible changes faster than others; it is about using the skills required for controlling the impact and maximizing the benefits of a change and above all having the willingness to change. Getting everything right the first time is the best thing one can expect but the next best thing to do is to change at the right time. The organisations (and the customers) do need change management. The organisations need the right kind of change management that tilts towards leadership in the balance of change. The art of change management deals with the act of shifting the balance of the response to a change, from playing defensive to showing leadership. This mechanism is known as The Balance of Change. Change control is primarily about being flexible and prepared enough to go for a positive change together with the required amount of analysis and caution. Things go wrong when caution, without the right analysis, leads to outright refusal and unwillingness. This situation is that of Change Denial. The situation can get further worse leading to complete lack of belief in change, which customers perceive as Change Aversion.
CONCLUSION
Today, more than ever, the ability to manage systems in a predicable manner while quickly reacting to change is a critical factor in business success. The ability of organisations to manage change effectively has become more important because of the rapid advances in technology and the increasing uncertainty and risk associated with the business environment. Managing change requires flexibility, good planning, an effective decision making system and an efficient management information system, as well as effective communication systems and channels. Managers must show leadership, have behavioral knowledge, especially with regards to the management of teams, demonstrate analytical skills in basic economic reasoning, be agents of change, proactive rather than reactive, be able to tolerate ambiguity and uncertainty, and understand why change is so often perceived as threatening.
REFRENCES
D. Koomsub (1999). A Case Study of Change Management of ERP Implementation Project Using SAP R/3, Thailand, Independent Study Project.
R. Lu (2008) Constraint-Based Flexible Business Process Management, in School of Information Technology and Electrical Engineering, University of Queensland, 2008. S. Nurcan (2008). A Survey on the Flexibility Requirements Related to Business Processes and Modeling Artifacts, in Proceedings of the 41 st Hawaii International Conference on System Sciences HICSS2008 pp. 378-378.
Websites
http://www.brefigroup.co.uk/consultancy/change_management.html. http://www.hcltech.com/enterprise-transformation-services/businesstransformation-services/organization-change-management.asp. http://www.jnnurm.nic.in/nurmudweb/e-Gov/WS_CBnKM.pdf. http://www.marcbowles.com/courses/adv_dip/module3/chapter8/ amc3_conclusion.htm.
An Empirical Analysis of the Prospects and User Perceptions of M-banking in India

Anshu Chaudhary, Anshu Verma and Poonam Gaur
Ideal Institute of Technology, Ghaziabad
E-mail: anshu8526@yahoo.co.in; anshu.verma14@gmail.com; kgaur.2010@gmail.com
Keywords: M-Banking; M-commerce; E-commerce; ICT, and 3G (Third Generation network)
INTRODUCTION
The telecommunication Industry has witnessed considerable advances in the last one decade. The major changes has come in the delivery of the content, applications and services to the mobile and other wireless communication devices. M-Commerce is an emerging area which refers to Mobile Commerce and defined as the use of a wireless terminal like a cellular telephone, smart phone or Personal Digital Assistant (PDA) and a network to access information and conduct transactions that result in the transfer of value in exchange for information, goods and services and is likely to put at test the regulatory mechanism that are in place to deal with the traditional transactions. United Nations Conference on Trade and Development (UNCTAD) defined M-Commerce as buying and selling of goods and services using wireless hand-held devices. M-Banking is equally
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referred to as mobile e-Banking. It is defined as the newest channel in electronic banking that provides a convenient way of performing banking transactions, which is also known as pocket-banking (Charles, 2006). M-Commerce refers to the different types of business transactions that are conducted on mobile devices using wireless networks. M-banking is also equally refereed as mobile E-banking. It is considered to be the latest gateway in electronic banking that provides a platform for doing banking transactions presenting Mbanking as the medium of providing financial services using mobile telecommunication devices.
MOBILE SERVICES IN INDIA

With a subscriber base of more than 650 million, the Mobile telecommunications system in India is the second largest in the world and it was thrown open to private players in the 1990s. The country is divided into multiple zones, called circles (roughly along state boundaries). Competition has caused prices to drop and calls across India are one of the cheapest in the world. The rates are supposed to go down further with new measures to be taken by the Information Ministry, the number of mobile phone connections crossed the number of fixed-line connections and presently dwarfs the wireline segment by a ratio of around 20:1. The mobile subscriber base has grown by a factor of over a hundred and thirty, from 5 million subscribers in 2001 to over 650 million subscribers as of July 2010 (a period of less than 9 years) . India primarily follows the GSM mobile system, in the 900 MHz band. Recent operators also operate in the 1800 MHz band. The dominant players are Airtel, Reliance Infocomm, Vodafone, Idea cellular and BSNL/MTNL. There are many smaller players, with operations in only a few states. International roaming agreements exist between most operators and many foreign carriers. In the Next Generation Networks, multiple access networks can connect customers to a core network based on IP technology. These access networks include fibre optics or coaxial cable networks connected to fixed locations or customers connected through wi-fi as well as to 3G networks connected to mobile users. As a result, in the future, it would be impossible to identify whether the next generation network is a fixed or mobile network and the wireless access broadband would be used both for fixed and mobile services. It would then be futile to differentiate between fixed and mobile networks both fixed and mobile users will access services through a single core network. The most potential services among all in near future is seems to be M-Banking.
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M-BANKING: POTENTIAL BENEFITS

To consumers: Reduces travel time and costs (to travel to Bank branch). Reduced transaction costs for remittances Reduced opportunities for fraud, counterfeit and theft by providing a secure electronic mode for transferring funds (as opposed to, for example, travelling long distances to transfer cash); To service providers: Reduced direct costs for delivering savings and credit products; Reduced errors and increased transparency in the transfer and recording of loan disbursements and payments and savings deposits Easier record keeping on each client through computerization of transactions through mobile phones, thus making it easier for financial institutions to tailor products and services for segments within their large pool of small customers. Internet Banking helped give the customers anytime access to their banks. Customers could check out their account details, get their bank statements, perform transactions like transferring money to other accounts and pay their bills sitting in the comfort of their homes and offices. However the biggest limitation of Internet banking is the requirement of a PC with an Internet connection, not a big obstacle if we look at the US and the European countries, but definitely a big barrier if we consider most of the developing countries of Asia like China and India. Mobile banking addresses this fundamental limitation of Internet Banking, as it reduces the customer requirement to just a mobile phone.
TECHNOLOGIES BEHIND MOBILE BANKING

Technically speaking most of these services can be deployed using more than one channel. Presently, Mobile Banking is being deployed using mobile applications developed on one of the following four channels. IVR (Interactive Voice Response) SMS (Short Messaging Service) WAP (Wireless Access Protocol) Standalone Mobile Application Clients
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Fig. 1: SMS Network Architecture
Fig. 2: WAP Network Architecture for Mobile Applications
Fig. 3: Standalone Mobile Application Clients
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MOBILE BANKING IN INDIA PERCEPTION AND STATISTICS

Mobile banking which is an integral part of mCommerce has become very popular among mobile users ever since its existence in 2007. It creates new, convenient communication and fast financial transactional channel for mobile users which is accessible from anywhere, anytime. Checking account information , balance available , credit/debit card information, cheque status, setting alerts , payment reminders, locating ATMs and bank branches, accessing mini statement, accessing loan and equity statements, insurance policy management, placing orders for cheque books etc via mobile phones are some of the services offered in mobile banking. With multiple access channels such as SMS, downloadable client, mobile Internet (WAP) mobile banking is encouraging mobile users more to explore the service.
Mobile Banking Services Insight

Based on data gathered in April 2009 for Feb/March mobile banking urban Indian customers checking account balance is the most frequently cited reason for using mobile banking. 40 million Urban Indians used their mobile phones to check their bank account balances followed by viewing last three transactions. ICICI bank continues to maintain its leadership extending in mobile space, 42% of all mobile banking users bank with ICICI, followed by HDFC (25.3%). Mobile banking report: Most popular services and income profile (Two month ended March 2009, Urban Indian Mobile Phone Users).
Filtering the data further to understand which income groups in urban India use mobile banking more. As depicted in the chart below, mobile banking is most used by subscribers falling in Rs. 1 Lakh to Rs. 2.99 Lakhs income bracket followed by less than Rs 1 Lakh income bracket.Therefore it is observed, mobile banking is
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more popular among low income group of mobile users than higher income group of mobile users.
We see few major challenges and opportunities in using currently available mobile phones to access internet. Firstly, due to limited PC penetration, it is highly probable that users will be attuned to interaction model of a mobile phone. These may vary based upon the manufacturer and the model (basic/ mid-tier/ advanced/touch screen). However the broader interaction model remains the same across the use of phonebook, messaging feature and personalization etc. This gives us an valuable opportunity to present the internet in the form already known by the user. The face of Internet as we (regular computer users) know might not be the right thing for mobile users. Secondly, information needs and user requirements of a mobile internet user may not be the same as the computer internet user It has been suggested that the key to user experience evaluation is to analyze whether the product met the expectations that the user had before starting to use it We feel the statement has an important extension users direction of expectations should be gauged first and followed by evaluation. Users expectations may be in a different direction because of the lack of knowledge about the medium. He does now know if 10 sec wait is faster or slower (while using internet), his comparison of the internet user experience is with the SMS feature he uses daily, which also shares similar asynchronous nature (of data sending and receiving). So question here is should we find out user expectations and design what is expected, or should we probe the nature of expectations itself to see if design could influence them.
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Thirdly, mobile based browsers today provide linear navigation When user clicks a hyperlink, the status bar displays the message Contacting server (what does it mean to mobile user? Why contacting server? Is it really informative?) And user has to wait for the next page to load. Once the page is loaded user performs the required task and gets back to homepage (where he started), waits for homepage to load again (or it may be cached), then clicks another link to explore another page. This is mostly time consuming and frustrating experience for users. Minimap visualization has successfully solved half of the problem by maintaining history as visual pages for users to go back.
CONCLUSION
Mobile commerce is considered to be an extension of E-Commerce that provides user to interact with other users or businesses using the wireless platform as anytime & anywhere accesses. The vibrant Indian market, with high level of technological acceptance provides an encouraging environment for M-Commerce growth. However, there has been no significant research done in this field in India. We believe that true potential of mobile phones as Internet Access devices is underutilized. Even though mobile phones are constrained by smaller screen sizes, the user experiences need not be a downscale version of a computer like user experience.
REFERENCES
Alter, S. (2002), Information Systems 4th Edition, Prentice Hall. Jayshree Bose-E- Banking in India: The Paradigm Shift, ICFA. Papers For You (2006) P/F/174. Dissertation. Adoption of Online Banking, Available from http://www.coursework4you.co.uk/sprtfina35.htm [18/06/ 2006]. Petrus Guriting, Nelson Oly Ndubisi (2006), Borneo online banking: evaluating customer perceptions and behavioural intention, Management Research News; Volume: 29 Issue: 1/2; 2006 Conceptual Paper. R K Ruppal, E-Banking in India : Challenges and Opportunities. Tero Pikkarainen, Kari Pikkarainen, Heikki Karjaluoto, Seppo Pahnila (2004), Consumer acceptance of online banking: an extension of the technology acceptance model, Internet Research; Volume: 14 Issue: 3; 2004 Research paper. William S. Davis and John Benamati- E-Commerce Basics: Technology Foundations & e-business application, Pearson (Addison Wesley).
Venture Capital and Entrepreneurial Development 7=7 Theory

C. Usha Rani, Praveen Kumar, G. Sunanda, Pratyusha Reddy and K. Sravanthi
Vidya Jyothi Institute of Technology, Hyderabad, A.P.
E-mail: ucherukupallis@yahoo.com; pk61delhi@gmail.com
INTRODUCTION
Let us start with Japanese proverb fall seven times, stand up eight. Think about the seven (7) letter word venture, start and continue with 8th letter Capital to achieve minimum rate of return. Venture Capital is the two words consists of 14 letters word which can be classified into Venture (7) and Capital (7). In this theory the earnings are estimated based on the capital invested on any venture. At initial stages rate of returns are expected on the capital invested which is purely based on no profit no loss theory (break even analysis).
WHAT IS VENTURE CAPITAL?

In general terms venture capital means financing, start up, early stage, and turnaround. It is the capital used to start firms and business units. (Small, medium and large).
WHAT IS VENTURE CAPITAL FORMULA?

Entrepreneurial Development = V+E+N+T+U+R+E = C+A+P+I+T+A+L. Now let us make an analysis of all the above words to start small business for exceptional growth in entrepreneurial field.
WHO IS AN ENTREPRENEUR?
An entrepreneur is an Individual or an association who can finance in a new business is/are known as: A creator An imitator An innovator
IMPORTANCE OF VENTURE CAPITAL

A new business can be carried successfully by above 7-7 guidelines. Venture capital is invested by entrepreneurs in business for new technology, manufacturing and services etc. It is also an equity related long term investment in growth-oriented small, medium and large firms.
AN ANALYSIS OF 14 (7-7) GUIDELINES

1. Values: In business terms value means, it is the rate or worth to be invested to create a new venture by an entrepreneur. A business plan based on the present values shall be estimated with the help of a financial adviser. Based on the present values future values can be estimated with the following formula(subject to certain exceptions). FVn = PV (1+r)^n whereas FV = Future Value PV = Present Value n = Time duration of cash flow r = Discount rate PV = 1/(1+r)^n
Venture Capital and Entrepreneurial Development 7=7 Theory 387
VALUES EXPECTATION NECESSITIES TASKS
LEARNING ACQUISITION TRADITIONS INNOVATIVENESS PROFITS ACCOUNTABILITY EARNINGSCAPITAL
IMPORTANCE
UNCERTAINITIES RISKS
TA TI O N EC ES SI TI ES
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Fig. 14: Guidelines in Bar Diagram as per Its Importance
2. Expectations: Our expectations regarding internal rate of return, net present values, time and value of money need to be calculated. An analysis of capital budgeting techniques is most important financial plan for any entrepreneur. Capital budgeting is one of the technique, an entrepreneur can use to plan for capital expenditure. It is divided into two ways: Traditional Discounted cash flow 1. Average rate of return 1. Net present value 2. Pay back period method 2. Internal rate of return method 3. Profitability Index An entrepreneur must be aware of the following terms: (approximately) Sources of finances. Identifying the cash flows and its time duration. The inflows or returns. Methods of depreciation Earnings before interest and taxes (EBIT) Earnings before interest (EBT) Earnings after taxes. (EAT) An entrepreneur can use the following formula: Expected Returns=X(1-T)+Depreciation. Where as X is equal to net operating income (EBIT) T is Tax Rate as per Income Tax Act
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TRADITIONAL CAPITAL BUDGETING TECHNIQUES ARE

(a) Average rate of return: An entrepreneur can evaluate an average rate of return with the following formula: ARR=Average annual profits after taxes/average investment over the life of the projectX100 If ARR> than the minimum desired ARR, accept the project If ARR< than the minimum desired ARR, reject the project (b) Payback method: In this method entrepreneur has to estimate the maximum length of time required to pay back the original investment. Original investment is the relevant cash outflow for a proposed project at time zero (t=0). Formula: If actual pay back period < predetermined pay back. Accept. If actual pay back >predetermined pay back. Reject. PB=Investment/Constant annual cash flow.
Discounted Cash Flow Methods

This is the process based on time used to find the present value of a future cash flows, where discounting is reciprocal, or reverse, of compounding. (a) Net Present Value: As per this method an entrepreneur must find the present value of the expected net cash flows of the investments, discounted at appropriate cost of capital, and subtract from initial cash outlay of the project. Standard tables can be used to find the PV. Formula: NPV= Initial cash outlay of the projectPV of expected net cash flow and discounted at the appropriate cost of capital. If NPV >1 Accept If NPV <1 Reject If NPV = 0 Indifferent. An entrepreneur can select the project which has highest NPV. (b) Internal Rate of Return: In this method the future cash flows are discounted. Cash flows are discounted at a rate where the NPV of the project is equal to zero. An entrepreneur can select the project with the highest IRR. Here entrepreneur has to estimate the approximate rate of return and should
track the actual IRR for the project. Uneven cash flow is one of the problem may be faced by the entrepreneur. If IRR>cost of capital Accept If IRR<cost of capital Reject If IRR 0 Indifferent. (c) Profitability Index: It is also known as benefit-cost ratio analysis. With this method an entrepreneur can measure the present value of returns per rupee invested. Formula PI=Present value cash inflows/Present value of cash outflows. If PI>1 Accept If PI<1 Reject If PI=1 Indifferent When PI is greater than, equal to or less than 1, the NPV is greater than, equal to or less than 0 respectively. PI > 1 NPV Positive PI < 1 NPV Negative. So the selection of project is based on ranking. An entrepreneur can accept the project which has highest rank. (d) Necessities: Necessities are based of various preferences of an entrepreneur. Broadly they are personal and commercial. Personal preferences are based on entrepreneurs back ground, skills, interests, experiences to select the type of business to buy etc. Entrepreneurs commercial preferences are examination of opportunities through various sources like business brokers, news paper advertisements, trade sources and Professional sources etc. (e) Asks: A specific task is essential for an entrepreneur achieve the goals. In the course of action we use certain words like MBO, HRD, HRM AFM, Dividend policy decisions, terms of investments, portfolio management, rights of sale, liquidity plans, plans for recruiting technical and professional experts, quality management, moral integrity, societal implications brand strategies, product specifications, PERT and CPM etc. Tasks should be based on availability of resources. (f) Uncertainty: Most of the times an entrepreneur may face uncertainties on the following issues: Changes in Consumer behavior, fashions, tastes, market
segmentation pricing methods, market demand for various products, economic irregularities like inflation, deflation, booms, depressions, lack of skilled persons, Government bans niche market, penetration of market, monopolies, perfect competitions, cost of capital, business continuity, cash flows , dead lines, milestones, entry barriers, initial public offering, & market value etc. (g) Risks: The venture capital is known as patience capital and risk is another factor which is inevitable. There are various techniques used to handle the risk in a business venture. Risk in venture capital may be in two ways: stand alone risk for a project and market of firm risk. Stand alone risk may considered through various techniques like sensitivity analysis, scenario analysis, breakeven analysis, Hiller model, simulation analysis, decision tree analysis, and risk management etc. Cost of equity is the rate of return that investors need to make an equity investment in affirm. To estimate the cost of equity there are two approaches: a) dividend growth model, b) risk and return model. Using the capital asset pricing model: Here risk is measured in terms of non diversifiable variance and relates expected returns to risks. The non diversifiable risk for any asset is measured by its bets, which can be used to yield an expected rate of return. Expected Return=Rf+Equity Beta[E(Rm)-Rf] Rf = Risk free rate E((Rm) = Expected return on the market index. (h) Earnings: Earnings, also known as return on investments (ROI) evaluated on the basis of interest paid to the lenders (cost of capital). ROI analyzed on the basis of assets, capital employed, and share holdings (equity). The following formulas are used to evaluate earnings. : ROA = EAT/Average Total Assets 100 Here we should debt and equity. ROI = EAT + Interest/Average Total Interest 100. ROA = EAT + Interest/Average Tangible Assets 100. ROA = EAT + Interest/Average Fixed Assets 100. So operating performance will be: ROA = EAT (Interest-tax advantage on Interest or after tax interest cost/ average total assets/tangible assets/fixed assets.
(i) Capital/Capacity to Invest: A body without blood and an organization without capital are of no use. Investment depends upon the size of the venture in which an entrepreneur has to decide. Every entrepreneur may take an initiative to invest in any venture based on certain estimated rate of returns. So investments in any venture differ from person to person, from one organization to another. The ratio of capital output increases through increase in capital investment ratio, and later increase in profits. (j) Accountability: It is one of the controlling techniques, ie management accounting. It is one of the methods of measuring performance of inputs and outputs which are used for business. Areas like goods received, unit cost total cost, on time delivery, quality of goods, Inventory, goods for resale, buffer stock, cash management, HRM practices, social responsibilities, audit of accounts, continuous monitoring. (k) Profitability: Break Even analysis and break even point are basic methods of evaluating profit in the said theory. Our theory is purely based on break even analysis, where an entrepreneur can expect a normal rate of return for the investments made. It is the theory called no profit, no loss, at initial stages. If not profit at least an entrepreneur may not suffer with losses
BEP
F * 100 s v
Where F = Fixed cost S= Sales projected V= Variable cost Indicates the % of sales This is one of the profit planning method which includes desired profit as part of the fixed costs graphical approach. In this method an entrepreneur has to take two factors. Total costs and total revenue. Here BEP is total revenue = total costs. And two other additional costs are to be considered ie variable and fixed costs. It enables the firms cost structure. (l) Innovativeness: Business of bringing new products to the consumer, there are five stages. 1. Awareness 2. Interest 3. Evaluation
4. Trial 5. Adoption Graphic presentation we can have at the time of conference. (m) Traditions: Under this various motivational theories like Maslows need hierarchy, Hergbergs two factor theory , Vrooms theory, and Mc clellands theory various training methods etc are to be referred by an entrepreneur for estimating the best utilization of resources. (n) Acquisitions: It is the process of buying an existing venture needs primary data collection. Entrepreneur has to visit the locations, assess the cost of venture, terms of agreement, valuation of assets, survival of the venture, its reputation in market, success, joint ventures if any, franchising, technology required, and licensing De -licensing etc are to be analyzed carefully. (o) Learning: Every entrepreneur should know the edge of knowledge. Knowledge = Achievements/Goals + Experiences 100. Knowledge in PERT CPM line balancing, Gantt chart, various modern techniques, in relation with technology, inventory methods, global HRM, financing, and marketing etc. The following formula may lead an entrepreneur to learn: Tn=T1-n^a where Tn is time to make the n th unit. T1 is time to make the first unit. A=(1n x)/(1n 2) X=learning rate (expressed as a decimal.)
CONCLUSION
Any entrepreneur can start any business in India without any hesitation because of the following facilities: Tax exemptions under special economic zone are available. Here majority people can speak English and many other languages, through which they can manage new business in any country all over the world. Finally we conclude, that skilled and intelligent employees available at nominal rate. Young generation should develop an entrepreneurial attitude which helps in their career growth by following above guide lines.
Supply Chain Management With the Purpose of Satisfying the Customers Requirement
Richa Sharma, Deepshikha Biswas, Dipti Sharma and Chowhan Sudhinder Singh1
1
Bhagwant University, Ajmer Institute of Management Studies & Computer Science, NIMS University, Jaipur
E-mail: sudhichowhan@yahoo.com
Supply Chain Management can be described as the oversight of material, finances and information as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. Supply chain management involves the integration and coordination of these flows viz. the product flow, finance flow and the information flow both within and among the companies. The crucial components of coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers, are all included in the management of the supply chain process. Traditionally, marketing, distribution, planning, manufacturing, and the purchasing organizations along the supply chain operated independently. These organizations have their own objectives and these are often conflicting. Purchasing contracts are often negotiated with very little information beyond historical buying patterns. Supply chain management is a strategy through which such an integrated process can be achieved.
It is said that the ultimate goal of an effective supply chain management system is to reduce inventory with the assumption that products are available when needed. The three flows of the SCM process viz. the product flow- the movement of goods from supplier to customer; the financial flow- consists of credit terms, payment schedules, and consignment and title ownership arrangements; the information flow-involves transmitting orders and updating the status of delivery. In essence, supply chain management integrates supply and demand management within and across companies. Some supply chains are simple, while others are rather complicated. The complexity of the supply chain will vary with the size of the business and the intricacy and numbers of items that are manufactured.
FRAMEWORK OF SUPPLY CHAIN MANAGEMENT

SCM is one of the most cited and analyzed concepts recently in logistics and operations management. Several researchers deal with SCM from research areas such as logistics, transportation, strategy, marketing, organizational behavior, economics etc. analyzing various aspects of the phenomenon. It is also a fashionable term today in business circles. However, both managers and researchers are confused since very different things are discussed under this umbrella.
ACHIEVING STRATEGIC FIT

It refers to the compliance of supply chain strategy with the organizations competitive strategy. The competitive strategy of a company defines the set of customer needs that it satisfy through it products and services in contrast to its competitors. Companies may fail if they lack strategic fit or their overall supply chain design, process and resources do not provide the capabilities to support the desired strategic fit. SC strategy includes design decisions regarding inventory, transportation, operating facilities and information flows. The sub strategies include supplier strategy, operations strategy and logistics strategy. The goal of reaching strategic fit is attained by structuring right combination of three logistical drivers viz. inventory, facilities and transportation and three cross functional drivers viz. information, pricing and sourcing. The development of SCM concept is a consequence of a long-standing and ongoing development, taking place in the management of material flows and the transformation process itself (let us call it operations further on in the paper). The
Supply Chain Management with the Purpose of Satisfying ... 395
development in this field aims to leverage strategic positioning over competitors mainly through improved operational efficiency. Supply chain can be seen as a given structure of collaborating companies working together in satisfying customer demand, and SCM is a conscious development and guidance of these relationships in order to gain competitive advantage for the collaborating chain members over other industry players. Although these programs and techniques can be very different they all recognize that operational efficiency is directly affected by uncertainties originated from (1) the uncertain demand that materials management faces and (2) the material flows that take place in the chain when satisfying this demand. Response based business operation builds on accurate and timely deployment of concrete consumer demand data instead of traditional sales forecasts. The deployment process mainly can be supported by closer coordination and integration within the firm and between collaborating companies. Among the different coordination means we think that the development of the planning and the strongly connected with it the development of information sharing processes has outstanding importance. The second type of uncertainties originates from the materials processes, from the uncertainty of lead times. Reducing this increases the accuracy and the reliability of value creating business processes and consequently raises both their effectiveness and efficiency. Improving the performance of business processes (shorter lead time) and their accuracy (more reliable lead time) necessitate a systematic approach focusing more on how to develop and connect business processes. Finally a fourth important element of successful SCM is the type of relations between collaborating partners (Christopher and Jttner, 2000). This determines the way companies cooperate with each other within a given chain. SCM is a cross-function approach including managing the movement of raw materials into an organization, certain aspects of the internal processing of materials into finished goods, and the movement of finished goods out of the organization and toward the end-consumer. The purpose of supply chain management is to improve trust and collaboration among supply chain partners, thus improving inventory visibility and the velocity of inventory movement.
STRATEGIC LEVEL
Strategic network optimization, including the number, location, and size of warehousing, distribution centers, and facilities. Strategic partnerships with suppliers, distributors, and customers, creating communication channels for critical information and operational improvements such as cross docking, direct shipping, and third-party logistics.
Product life cycle management, so that new and existing products can be optimally integrated into the supply chain and capacity management activities. Aligning overall organizational strategy with supply strategy. It is for long term and needs resource commitment.
TACTICAL LEVEL
Sourcing contracts and other purchasing decisions. Production decisions, including contracting, scheduling, and planning process definition. Inventory decisions, including quantity, location, and quality of inventory. Transportation strategy, including frequency, routes, and contracting. Benchmarking of all operations against competitors and implementation of best practices throughout the enterprise.
OPERATIONAL LEVEL
Daily production and distribution planning, including all nodes in the supply chain. Demand planning and forecasting, coordinating the demand forecast of all customers and sharing the forecast with all suppliers. Sourcing planning, including current inventory and forecast demand, in collaboration with all suppliers. Production operations, including the consumption of materials and flow of finished goods. From production level to supply level accounting all transit damage cases & arrange to settlement at customer level by maintaining company loss through insurance company.
ELEMENTS OF THE SUPPLY CHAIN

A simple supply chain is made up of several elements that are linked by the movement of products along it. The supply chain starts and ends with the customer. Customer: The customer starts the chain of events when they decide to purchase a product that has been offered for sale by a company.
Planning: The requirement triggered by the customers sales order will be combined with other orders. The planning department will create a production plan to produce the products to fulfill the customers orders. Purchasing: The purchasing department receives a list of raw materials and services required by the production department to complete the customers orders. Inventory: The raw materials are received from the suppliers, checked for quality and accuracy and moved into the warehouse. The raw materials are stored until they are required by the production department. Production: Based on a production plan, the raw materials are moved inventory to the production area. The finished products ordered by the customer are manufactured using the raw materials purchased from suppliers. Transportation: When the finished product arrives in the warehouse, the shipping department determines the most efficient method to ship the products so that they are delivered on or before the date specified by the customer.
DECISION PHASES IN A SUPPLY CHAIN

The decisions for supply chain management into two broad categories strategic and operational. As the term implies, strategic decisions are made typically over a longer time horizon. These are closely linked to the corporate strategy and guide supply chain policies from a design perspective. On the other hand, operational decisions are short term, and focus on activities over a day-to-day basis. The effort in these types of decisions is to effectively and efficiently manage the product flow in the strategically planned supply chain. There are four major decision areas in supply chain management: 1) location, 2) production, 3) inventory, and 4) transportation (distribution), and there are both strategic and operational elements in each of these decision areas.
LOCATION DECISIONS
The geographic placement of production facilities, stocking points, and sourcing points is the natural first step in creating a supply chain. The location of facilities involves a commitment of resources to a long-term plan. Once the size, number, and location of these are determined, so are the possible paths by which the product flows through to the final customer. These decisions should be determined by an optimization routine that considers production costs, taxes, duties and duty
drawback, tariffs, local content, distribution costs, production limitations, etc. Although location decisions are primarily strategic, they also have implications on an operational level.
PRODUCTION DECISIONS
The strategic decisions include what products to produce, and which plants to produce them in, allocation of suppliers to plants, plants to DCs, and DCs to customer markets. Other considerations include workload balancing, and quality control measures at a production facility.
INVENTORY DECISIONS
These refer to means by which inventories are managed. Inventories exist at every stage of the supply chain as either raw material, semi-finished or finished goods. They can also be in-process between locations. These levels are critical, since they are primary determinants of customer service levels.
TRANSPORTATION DECISIONS
The mode choice aspects of these decisions are the more strategic ones. These are closely linked to the inventory decisions, since the best choice of mode is often found by trading-off the cost of using the particular mode of transport with the indirect cost of inventory associated with that mode. Therefore customer service levels and geographic location play vital roles in such decisions.
PROBLEMS ADDRESSED BY SUPPLY CHAIN MANAGEMENT

Supply chain management must address the following problems: Distribution Network Configuration: Number, location and network missions of suppliers, production facilities, distribution centers, warehouses, cross-docks and customers. Trade-Offs in Logistical Activities: The above activities must be well coordinated in order to achieve the lowest total logistics cost. Trade-offs may increase the total cost if only one of the activities is optimized. Information: Integration of processes through the supply chain to share valuable information, including demand signals, forecasts, inventory, transportation, potential collaboration, etc.
Inventory Management: Quantity and location of inventory, including raw materials, work-in-progress (WIP) and finished goods. Cash-Flow: Arranging the payment terms and methodologies for exchanging funds across entities within the supply chain. Supply chain execution means managing and coordinating the movement of materials, information and funds across the supply chain. The flow is bi-directional.
Foreign Direct Investment A Prerequisite to Economic Growth

Manish Jha, Suman Madan and Neetu Sharma1
Panipat Institute of Engineering & Technology, 70th km Milestone, Pattikalyana Samalkha, Panipat, Haryana 1 Dr. D.Y. Patil University, Department of Business Management, CBD Belapur, Navi Mumbai
E-mail: emjay4@sify.com; suman.madan@yahoo.com; 6neetusharma@gmail.com
Keywords: Investment, Economic Growth, Development, Growth
INTRODUCTION
Enhanced international response and powerful sectoral productivity ratios in India are incessantly drawing the attention of the global investors in India. Other aspects being characterized to the resumption in foreign direct investment (FDI) recently entail growing client assurance in the market. India proudly features in the third slot of global direct investment destinations, despite of the recession and as per the latest report by United Nations Conference on Trade and Development (UNCTAD).Foreign direct investment (FDI) in India has played an important role in the development of the Indian economy. FDI in India has - in a lot of ways -
Foreign Direct Investment 401
enabled India to achieve a certain degree of financial stability, growth and development. This money has allowed India to focus on the areas that may have needed economic attention, and address the various problems that continue to challenge the country.India has continually sought to attract FDI from the worlds major investors. In 1998 and 1999, the Indian national government announced a number of reforms designed to encourage FDI and present a favorable scenario for investors. FDI investments are permitted through financial collaborations, through private equity or preferential allotments, by way of capital markets through Euro issues, and in joint ventures. FDI is not permitted in the arms, nuclear, railway, coal & lignite or mining industries.A number of projects have been announced in areas such as electricity generation, distribution and transmission, as well as the development of roads and highways, with opportunities for foreign investors.The Indian national government also provided permission to FDIs to provide up to 100% of the financing required for the construction of bridges and tunnels, but with a limit on foreign equity of INR 1,500 crores, approximately $352.5m. Currently, FDI is allowed in financial services, including the growing credit card business. These services include the non-banking financial services sector. Foreign investors can buy up to 40% of the equity in private banks, although there is condition that stipulates that these banks must be multilateral financial organizations. Up to 45% of the shares of companies in the global mobile personal communication by satellite services (GMPCSS) sector can also be purchased. In India, Foreign Direct Investment Policy allows for investment only in case of the following form of investments: Through financial alliance Through joint schemes and technical alliance Through capital markets, via Euro issues Through private placements or preferential allotments
Foreign Direct Investment in India is not allowed under the following industrial sectors
Arms and ammunition Atomic Energy Coal and lignite Rail Transport
Mining of metals like iron, manganese, chrome, gypsum, sulfur, gold, diamonds, copper, zinc.
Proponents of these new theories have developed models that emphasize increasing returns and imperfect competition and see the possibility that government involvements in trade (trade restrictions, export subsidies, etc.) may under some circumstances be useful. All of this is done while foreign direct investment is ignored (Hamid Hosseini, 1993). It is not enough that an economy of a country has as a target to become a market economy, to open its borders and to attract foreign direct investment (FDI) flows for the economy to become globalized, but it is necessary for this result to be shown by significant foreign participation and huge FDI and trade inflows into the host country. If this never happens, then the country will not benefit from globalization. The share of FDI is not the same in all countries and the FDI inflows in less-developing or poor countries show little growth or no growth at all (Aristidis Bitzenis, 2004). The outward foreign direct investment (FDI) position of countries may be considered as a function of country specific characteristics, such as income, exchange rate, technology, human capital and openness of the economy. Developed European countries specialise in human capital intensive FDI, while non-European Union countries in technology intensive. (Dimitrios Kyrkilis & Pantelis Pantelidis, 2003). The strength of the relationship between uncertainty and the firms decision to engage in foreign direct investment (FDI) is moderated by factors such as capital intensity and firm size. Not enough is known about how internal uncertainty affects the FDI to develop specific predictions about moderators. However, these effects are empirically determined. Results suggest that the moderators affect both the strength and the direction of the impact that internal and external uncertainties have on foreign direct investment (M. Krishna Erramilli & Derrick E. DSouza, 1995). APEC economies have experienced phenomenal growth in FDI over the last twenty years although such growth is uneven among countries. FDI appears to shift from the primary sector into the manufacturing and tertiary sectors of the economy as economies grow further. Thus, future FDI in APEC economies will likely be relatively higher in the tertiary sector as the poorer members of APEC continue to grow.FDI is found to contribute positively to economic growth in all economies considered although results show that FDI in the tertiary sector generally leads to higher economic growth (Doren D. Chadee & Deborah A. Schlichting, 1993).
Analysis of FDI Inflow in India
Fig. 1: FDI Inflows in India Source: http://dipp.nic.in/fdi_statistics/india_fdi_index.htm
Analysis of Share of Top Ten Investing Countries FDI Equity in Flows
Fig. 2: Analysis of share of top ten investing countries (From April 2000 to August 2010 ) Source: http://dipp.nic.in/fdi_statistics/india_fdi_index.htm
Mauritius invested Rs.224367.27 crore in India Up to the August 2010, equal to 42.09 percent of total FDI inflows. Many companies based outside of India utilize Mauritian holding companies to take advantage of the India- Mauritius Double Taxation Avoidance Agreement (DTAA). The DTAA allows foreign firms to bypass Indian capital gains taxes, and may allow some India-based firms to
avoid paying certain taxes through a process known as round tripping. Singapore continues to be the single largest investor in India amongst the Singapore with FDI inflows into Rs. 5008.45 crores up to August 2010. The United States is the third largest source of FDI in India i.e.7.48 % of total inflows up to August 2010. According to the Indian government, the top sectors attracting FDI from the United States to India are fuel, telecommunications, electrical equipment, food processing, and services. The United Kingdom is the fourth largest source of FDI in India (5.17 % of the total), valued at 27261.43 crores in cumulative inflows up to August 2010. Over 17 UK companies under the aegis of the Nuclear Industry Association of UK have tied up with Ficci to identify joint venture and FDI possibilities in the civil nuclear energy sector. UK companies and policy makers the focus sectors for joint ventures, partnerships, and trade are non-conventional energy, IT, precision engineering, medical equipment, infrastructure equipment, and creative industries. FDI from Netherlands to India has increased at a very fast pace over the last few years. Netherlands ranks fifth among all the countries that make investments in India. The total flow of FDI from Netherlands to India came to Rs. 22338.60 crores . The total percentage of FDI from Netherlands to India stood at 4.17% out of the total foreign direct investment in the country up to August 2010.
Analysis of Sectors Attracting Highest FDI Equity Inflows

Table 1: (From April 2000 to Aug. 2010)
Ranks Sector Amount of FDI Inflows (In Rs crore) (In US$ million) 111,022.90 24,861.64 45,936.50 45,494.95 39,860.95 37,044.58 24,040.21 21,341.14 16,247.45 12,490.98 11,949.36 10,330.47 9,985.00 8,895.49 8,347.39 5,304.71 4,709.70 3,742.74 2,883.37 2,641.99 %age with Total Inflows 20.86 8.67 8.38 7.46 7.00 4.45 3.95 3.14 2.42 2.22
1 2 3 4 5 6 7 8 9 10
SERVICES SECTOR COMPUTER SOFTWARE & HARDWARE TELECOMMUNICATIONS HOUSING & REAL ESTATE CONSTRUCTION ACTIVITIES POWER AUTOMOBILE INDUSTRY METALLURGICAL INDUSTRIES PETROLEUM & NATURAL GAS CHEMICALS (OTHER THAN FERTILIZERS)
Source: http://dipp.nic.in/fdi_statistics/india_fdi_index.htm
The sectors receiving the largest shares of total FDI inflows up to August 2010 were the service sector and computer software and hardware sector, each accounting for 21% and 9 percent respectively. These were followed by the telecommunications, real estate, construction and automobile sectors. The top sectors attracting FDI into India via M&A activity were manufacturing; information; and professional, scientific, and technical services. These sectors correspond closely with the sectors identified by the Indian government as attracting the largest shares of FDI inflows overall. It is revealed that FDI in Construction Activities (including Road and Highways) registered maximum growth of 41.12 per cent during April 2009 March 2010 as compared to 16.35 per cent during the last fiscal. The sector attracted USD 2862 million FDI in FY 10 as compared to USD 2028 million in FY 09.
Fig. 3: FDI Inflows Sector-Wise Source: http://dipp.nic.in/fdi_statistics/india_fdi_index.htm
During the year 2009 government had raised the FDI limit in telecom sector from 49 per cent to 74 per, which has contributed to the robust growth of FDI. The telecom sector registered a growth of 103 per cent during fiscal 2008-09 as compared to previous fiscal. But in 2009-10 no such growth has been noticed .The sector attracted USD 2554 million FDI in FY 10 as compared to the USD 2558 million in FY 09. India power sector has been able to record 45.88 per cent growth in foreign investment. The FDI inflow in power sector has increased from USD 985 million to 1437 million in FY 10 over FY 09. The other sectors which registered growth in FDI inflow during April March 2010 were housing & real estate (1.54% per cent) and automobile sector (4.86 per cent) while the other sectors shown the
decline percentage as compared to the FY09. It was service sector (-29.08 per cent) Computer software and hardware (-45.20 per cent) Metallurgical Industries (-57.65%) Petroleum and Natural Gas (-33.98 per cent) and chemical other than fertilizer (-51.67 per cent).
CONCLUSION
A large number of changes that were introduced in the countrys economic policies and the liberalization era of the FDI policy regime in India brought about a structural breakthrough in the volume of the FDI inflows into the economy and maintained a fluctuating and unsteady trend during the study period. India shows a tremendous growth in FDI Inflows during the period of April01 to March.10. It has achieved the growth of about 874% during last 10 years as the amount of FDI Inflows in 200-01 was Rs. 12645 crore and in 2009-10 was Rs. 123120 crore. A remarkable growth in 2008-09 has been noticed. It might be of interest to note that more than 50% of the total FDI inflows received by India during the period from 2000 - 2010 came from Mauritius, Singapore and the USA. The main reason for higher levels of investment from Mauritius was that the fact that India entered into a double taxation avoidance agreement (DTAA) with Mauritius were protected from taxation in India. Among the different sectors, the service sector had received the larger proportion followed by computer software and hardware sector and telecommunication sector.
BIBLIOGRAPHY
Aristidis Bitzenis, (2004) Is globalization consistent with the accumulation of FDI inflows in the Balkan countries?: Regionalisation for the case of FDI inflows in Bulgaria, European Business Review, Vol. 16 Iss: 4, Pp.406 425. Dimitrios Kyrkilis, Pantelis Pantelidis, (2003) Macroeconomic determinants of outward foreign direct investment, International Journal of Social Economics, Vol. 30 Iss: 7, Pp.827 836. Doren D. Chadee, Deborah A. Schlichting, (1993) Foreign Direct Investment in the Asia-Pacific Region: Overview of Recent Trends and Patterns, Asia Pacific Journal of Marketing and Logistics, Vol. 9 Iss: 3, Pp.3 15. Hamid Hosseini, (1993) FOREIGN DIRECT INVESTMENT DECISION, TRANSACTION-COST ECONOMICS AND POLITICAL UNCERTAINTY, Humanomics, Vol. 10 Iss: 1, Pp.61 82.
M. Krishna Erramilli, Derrick E. DSouza, (1995) Uncertainty and foreign direct investment: the role of moderators, International Marketing Review, Vol. 12 Iss: 3, Pp.47 60.
WEBSITE
http://dipp.nic.in/fdi_statistics/india_fdi_index.htm acessed on 20th November 2010.
Impact of Globalization on Indian Business Industry and Strategy Making

R.M. Saxena
R.D. Engineering & Management College Ghaziabad
E-mail: rakeshsaxena13@gmail.com
INTRODUCTION
Global business is different from domestic business because the environment changes when a firm crosses international borders. Typically, a firm understands its domestic environment quite well, but is less familiar with the environment in other countries and must invent more time and resources into understanding the new environment. The following considers some of the important aspects of the environment that change internationally.
INDIAN INDUSTRY
Here are three instances to exemplify the significance of international environment for Indian business and industry.
Economic Growth
China number one, India number two: this is what we often get to hear in terms of economic growth. Comparison in the context of international environment
Impact of Globalization on Indian Business Industry... 409
is in order. Chinas economy is twice that of India. China has enjoyed a long term GDP growth rate of 9 to 19 per cent versus Indias 6 to 7 per cent and Chinas per capita income is more than double that of India. Moreover, China exports 6 times what India does. Not only are two Asian neighbors contenders for the number one position, they are competitors in various industries internationally too. Yet, there are pockets of excellence for India that other industries need to replicate. The Indian pharmaceutical industry is one such example where it is far ahead of its Chinese counterpart in terms of developing international marketing. Indian companies such as Ranbaxy and Dr.Reddys sell widely in the U.S., Europe, Africa and South America. Quite a few have factories in the U.S. and Europe too. This has significance for strategic planning for the existing and prospecting Indian multinational companies.
Labour Mobility
Increasing labour mobility is a significant international environment trend presently. Despite better technology reducing the need for labour, it still remains the most important factor of production.Internationalisation of markets and production requires a frequent movement of labour, especially high skill , better qualified people to move frequently across borders. Demographic changes of falling fertility rates in developed regions and countries such as European Union, Japan and Singapore mean that more influx of skilled people would be required. Traditionally and historically, India has been a supplier of labour to the world. This includes emigration of highly educated people causing a phenomenon called brain drain.
Financial Resources
Among the various external financial resources, the equity market has constituted an important source of financing for Indian companies followed by bank loans from financial institutions. The start of India see economic reforms in the early 1990,s led to a flood of overseas equity issues via American global depository receipts. Indian companies now are seeking cheaper & quicker loans from international markets where access has been made easier by regulatory reforms of streamlined &liberalized external borrowing procedures & policies.,
MARKET ENVIRONMENT
The market environment consists of factors related to the groups and other organizations that compete with and have an impact on an organizations markets and business.
Customer or client factors such as the needs, preferences, perceptions, attitude, values, bargaining power, buying behavior and satisfactions of customers. Products factors such as the demand, image, features, utility, function, design, life cycle, price, promotion, distribution, differentiation and availability of substitutes of products or services.
POLITICAL CLIMATE
The political environment consists of factors related to management of public affairs and their impact on the business of the organization. Some of the important factors and influence operating in the political environment are: The political system and its features like nature of the political system , ideological forces, political parties and centers of power. The political structure, its goals and stability. Political processes like operation of the party system, elections, funding of elections and legislation with respect to economic and industrial promotion and regulation. Political philosophy, governments role in business, its policies and interventions in economic and business development.
REGULATORY ENVIRONMENT
The regulatory environment consists of factors related to planning, promotion and regulation of economic activities by the government that have an impact on the business of an organization. Some of the important factors and influence operating in the regulatory environment are as follows: The constitutional framework, directive principles, fundamental rights and division of legislative powers between the central, state and local governments. Policies related to licensing, monopolies, foreign investment and financing of industries. Policies related to distribution and pricing and their control.
SOCIO-CULTURE ENVIRONMENT
The socio culture environment consist of factor related to the human relationships within the society, the development, form and functions of such a relationship and learned and shred behavior of groups of human beings having a bearing on the business of an organization. Some of the important factors and influences operating in the social environment are: 1. Demographic characteristics, such as population, its density and distribution, changes in population and age composition, inter-state migration and rural urban mobility and income distribution. 2. Socio-culture concerns such as environmental pollution, consumerism, corruption, use of mass media and the role of business in society. 3. Socio-culture attitudes and values, such as expectation of society from business, social customs, beliefs, rituals and practices, changing lifestyle patterns and materialism.
IMPACT ON INDIA
India opened up the economy in the early nineties following a major crisis that led by a foreign exchange crunch that dragged the economy close to defaulting on loans. The response was a slew of Domestic and external sector policy measures partly prompted by the immediate needs and partly by the demand of the multilateral organisations. The new policy regime radically pushed forward in favour of amore open and market oriented economy. The Indian tariff rates reduced sharply over the decade from a weighted average of 72.5% in 1991-92 to 24.6 in 1996-97. Though tariff rates went up slowly in the late nineties it touched 35.1% in 2001-02. India is committed to reduced tariff rates. Peak tariff rates are to be reduced to be reduced to the minimum with a peak rate of 20%, in another 2 years most non-tariff barriers have been dismantled by march 2002, including almost all quantitative restrictions.
India is Global
The liberalisation of the domestic economy and the increasing integration of India with the global economy have helped step up GDP growth rates, which picked up from 5.6% in 1990-91 to a peak level of 77.8% in 1996-97. Growth rates have slowed down since the country has still bee able to achieve 5-6% growth rate in three of the last six years.
GDP Growth Rate

The Indian economy is passing through a difficult phase caused by several unfavourable domestic and external developments; Domestic output and Demand conditions were adversely affected by poor performance in agriculture in the past two years. The global economy experienced an overall deceleration and recorded an output growth of 2.4% during the past year growth in real GDP in 2001-02 was 5.4% as per the Economic Survey in 2000-01. The performance in the first quarter of the financial year is5.8% and second quarter is 6.1%.
Export and Import

Indias Export and Import in the year 2001-02 was to the extent of 32,572 and 38,362 million respectively. Many Indian companies have started becoming respectable players in the International scene. Agriculture exports account for about 13 to 18% of total annual of annual export of the country. In 2000-01 Agricultural products valued at more than US $ 6million were exported from the country 23% of which was contributed by the marine products alone. Marine products in recent years have emerged as the single largest contributor to the total agricultural export from the country accounting for over one fifth of the total agricultural exports. Cereals (mostly basmati rice and non-basmati rice), oil seeds, tea and coffee are the other prominent products each of which accounts fro nearly 5 to 10% of the countries total agricultural exports.
Where Does Indian Stand in Terms of Global Integration?

India clearly lags in globalisation. Number of countries has a clear lead among them China, large part of east and far east Asia and Eastern Europe. Lets look at a few indicators how much we lag. Over the past decade FDI flows into India have averaged around 0.5% of GDP against 5% for China 5.5% for Brazil. Whereas FDI inflows into China now exceeds US $ 50 billion annually. It is only US $ 4billion in the case of India Consider global trade - Indias share of world merchandise exports increased from .05% to .07% over the pat 20 years. Over the same period Chinas share has tripled to almost 4%.
STRATEGIC MANAGEMENT IN MARKETING

Marketing is fundamental to any business growth. It is a process that is needed to determine consumers wants by focusing on a products and services to those
wants and to influence consumers towards the products and services. Since marketing is concerned with making the products, it must be carefully evaluated for its strengths and weakness. The main objective of marketing function is to increase the companys sales or goodwill in local, regional, or national markets by using different advertising alternatives. Once the marketing alternatives are evaluated and the best ones chosen, the marketing department determines which strategy should be used to achieve the mission and objectives they have decided for growth of Company in the market.
STRATEGIC MANAGEMENT IN HUMAN RESOURCE MANAGEMENT

Human resource is the significant factor that affects the overall operation and internal environment of organizations. If an organization is not growing, not changing its human resource strategies and not implementing these strategies, it may hinder its position as a vital entity and its existence may be threatened. External environment such as unions are just one uncontrollable part which can put huge tension on the internal environment and human resource strategies of organizations as well. A solid, proactive and aggressive strategic management system can prevent this from happening.
STRATEGIC MANAGEMENT IN FINANCE

Strategic management helps to identify the possible strategies capable of maximizing organizations net present value, the allocation of limited capital resources and the implementation and monitoring of the chosen strategy to achieve the objectives. Finance is another key component which can not be ignored while making strategies, something top executives ignore this component and face problem during strategy implementation. If companys financial affairs the mismanaged, the organization is in danger. Finances must be managed with knowledge about the internal factors so that budgets and expenditures are appropriate. Strategic management provide various financial alternatives and analysis, which determine the optimal amount of expenditure to each division of the organization, in this way benefits and the organizational objectives can be achieved effectively.
CONCLUSION
The Indian business scenario today is facing an increasing level of environmental uncertainty. This is so because the organizational environment is becoming more dynamic and complex. Also, firms that used to be multi domestic are becoming
global. This type of situation calls for a flexible, aggressive and innovative strategy, even from well-established firms. The advent of information technology has led to swift change in the functioning of the distribution channels. Firms are exploring methods to reduce costs by forging relationships with suppliers and gaining access to new technology. Imitation in markets is easily possible and it becomes harder for an Indian company to sustain any competitive edge for long. Indian firms should learn to manage their own strategy so that the concerns of different stakeholders are addressed properly. The next decade is likely to see the gap between the developed and the developing nations reducing. It becomes incumbent on Indian firms to avail these opportunities and become global players.
REFRENCES
Fiegenbaum, A. and H.Thomas, Strategic Groups as Reference Groups: Theory modeling and empirical examination of industry and competitive strategy, Strategic Management Journal, September 1995. Gladwin, T.N, Assessing multinational environment for corporate opportunity, in W.D.Guth(Ed), Handbook of business strategy, warren, Gorham and Lamont, Boston, 1985. Gurucharan Das, Indian business families, Sept 10, 2002, available at http:// ccs.in/gdas/?p=60#more-60. Hatten, K.J. and M.L.Hatten, Strategic groups, asymmetrical mobility barriers, and contestability, Strategic Management Journal, July-August 1987. Ohmae, Kenichi, The mind of the strategist: Business planning for competitive advantage, Penguin Books, London 1983.
Managing Creativity for Organisational Excellence

Suruchi Singh
AKGIM, Ghaziabad
E-mail: suruchi@akgim.edu.in
INTRODUCTION
With the changing patterns of Business in the rapid changing environment, the most important way identified for sustaining in the global world and achieving excellence in management of creativity in the organizations. All the organizations at one point of time, reach a plateau of competence. In an increasingly technological driven business environment, only the human capital, which remains unchallenged by machines, has the ability to be creative which is nurtured for survival. Creativity and innovation are the life blood of any business to sustain and excel. The term creativity and innovation are often used interchangeably, however, there is a clear distinction between creativity and innovation, the former being the generation of ideas and the latter its implementation. An innovation is a step beyond a creative idea. While creativity is about production of ideas, innovation is about practical implementation of those ideas. Business Organisation like 3M encourages staff members to spend up to 15% of their time on projects of their own choosing. In Indian context, Infosys is a leading example of excellence by
fostering creative ability of its people. The internal communication programme known by the name INSYNC focus on keeping their employees abreast of the latest developments in their organizations. Dofasco , an Ontario company, celebrates an annual Creativity & Innovation Week. Events include learning forums, cafeteria celebrations, live music, brain teasers, and plant-wide messages.
RATIONNALE OF THE STUDY

The objective of the study is to examine the role of creativity in successful organizations, which have excelled, irrespective of the changing market environment. Further, the objective of the study is also to understand the level of creativity in these organizations, importance and their practices in these organisations.Further, to prepare a road map for managing creativity at work place.
METHODOLOGY OF RESEARCH
To understand the creativity level and establish relationship between the creativity and organizational excellence, authors have chosen two Public Sector Undertakings, one is Bharat Petroleum, which has been a Fortune 500 Company and the other one is NTPC, which is a leading Navratna status and profit making Public Sector Organisation. The total sample Size was 80 (40 from each organization) and the data were collected from the different level of employees, randomly through the unstructured interviews to get the more qualitative and diverse results. These interviews were also supplemented through review of records such as trainings conducted, Vision and values actualisation programmes, Organisation structure, career development schemes, suggestion schemes, HR initiatives of the above companies and also some other successful companies. The nature of questions were related to finding out awareness level, importance of the buzz word creativity, the different factors that helps unlocking creativity, the different barriers, practices of these organization to unlock the potential. On the basis of the primary data collected, the secondary data were correlated. The concept was also examined in the light of practices of some other successful companies. Through this paper, it has been tried to prepare a road map has been prepared.
FINDINGS
On the specific parameters, a no. of responses were received. On the basis of the response, the major findings, in the descending order of response are as under :
Managing Creativity for Organisational Excellence 417
1. Importance of Creativity in the Organizations

Competitive Edge/Advantage Cost Control Quality improvement Motivation of Employees Over all promoting efficiency and effectiveness in organization Stake holders interest protection.
2. Important Factors Influencing Creativity in Organizations

Vision and Core Values. Top Management Support and commitment. Well laid down Communication Matrix. Time Well laid down reward and recognition policy for motivation Nature of work Employee Empowerment. Clear and objective Organisational Goals. Serious Platforms for ideas, creativity Supportive work culture. Infrastructure and other facilities. Proper feedback system. Learning and development opportunities
3. Barrier to Creativity in Organizations

Lack of Commitment from Top Poor Communication. Unclear targets/goals Skill/Knowledge level of Work force. Lack of employee empowerment or authority to take decisions. Lack of resources Nature of Work.
4. Platforms Available in the Organization for New Ideas, Innovative Processes etc.
Quality Circles Professional Circle Suggestion Scheme. Statutory and Non Statutory Participative Fora. Communication Meetings within the Department/project. Work Place.
General Findings and Findings on the Basis of Literature Reviewed, Are 1. The 98 % of the respondents knew the Vision and Core Values of their companies. The vision and core values were found to be placed at every work place/offices, even in inter office memos and intranet. How ever, respondents felt that more could be done for actualization of vision of the company. 2. The majority of respondents admitted that the Vision and Core Values were one of the guiding forces for unlocking potential. 3. The respondents said that they are being provided mandatory man days training for example in NTPC, Seven man days training is mandatory for all employees. 4. Interestingly some of the respondents have mentioned Physical structure/ facilty of their work place, facilities for families, social gathering, quality of work life/work life balance as factors, to foster creativity. 5. It was observed that the training programmes are being provided to the employees of both companies, in the area of Adventures in Attitude, Team Building, Actualisation of Core Values, Leadership, Productivity, Cost control, Benchmarking, Creativity and innovation techniques, Quality. 6. The Ideas program of BPCL is an initiative to recognize and promote creativity at the workplace and derive benefits from the innovative ideas. They have also launched an UTTAM SUJHAV PURUSKAR for the best suggestion. 7. BPCL was the first organization to introduce SMART CARD, an einitiative for petro bonus. They have started many innovative schemes at their petro outlets such as high speed fuel, dhabha, In & Out stores, ATMs etc.
8. For day to day work/safety/quality related problems, both the companies have a well established participative forum, such as Shop level council/ Plant level council, Safety council. Through these participative for a, new ideas, process are being implemented also leading to productivity, cost control and enhancing quality. 9. Mentoring is in place in NTPC for the new entrants executives which can be a strong force in guided Creativity. From the above observations, it is seen that the organizations are today emphasizing on actualization of their activities. These organisations have developed communication matrix in place where in every employee is well aware of the companies present and future activities so that his/her organisational awareness is high.
ROAD MAP FOR MANAGING CREATIVITY IN ORGANISATIONS

The achievement of excellence can only occur if the organization promotes a culture of creative dissatisfaction. Lawrence Miller In this paper, Authors have tried to establish a road map considering the individual factors and organizational factors, which the organisations have to address.
Individual Factors
The individual factor is the primary factor which has to be taken care for managing creativity at work place. How conducive the work environment be, without the individual factor, the efforts may become futile. 1. Knowledge/Skills/Attitude: The recruitment policy should be specific and strong so that competent people are recruited in the organization. Also the right/positive attitude also needs to be developed by way of providing right atmosphere and trainings. NTPC has been organizing trainings in the areas of Adventure in Attitude- NIS Sparta to employees for developing right/positive attitude. 2. Nature of Work: The nature of work allocated to the individual employee is also a important determinant of creativity level. If the nature of the job is routine and the employee feels the work to be unimportant, the creativity level is bound to be low in such cases. The organisations have to take care of job rotation and job enrichment for employees.
3. Empowerment and Autonomy: If the decision Making is centralized, the employee, who has no authority as agent of change and has no power to control his mode of completing assignment, have negative impact on his level of creativity. Without authority, an employee cannot experiment or do something new or different. Let the best people who have joined the work force be given their autonomy to work as for e.g. J.R.D. Tata once said Get the best people and let them free i.e. the creativity of the employee will only come up if they are allowed to be free. At the individual level, the level of empowerment., Task identity, Task significance, Autonomy also plays an important role in motivating an individual.
Organisational Level Factors

1. Inspiring Visions and Commitment from Top: Vision and Mission statements of the company are living documents. These visions, if actualized, will definitely make the impact on employees and organization as a whole. This thing is also proved by the multiyear research project on management tools conducted by Bain and Company which started in the year 1993. This research also considers vision and mission statements of the particular company as a very significant management tool for enhancing the performances. The same idea is circulated by James .C. Collins and Jerry .I. Porras in their book Built to Last: Successful Habits of Visionary Companies. 2. Training & Development Policies: Organizational competence is based on quality of Human resources in the enterprise. The organizations have to strive for recruitment of competent employees in the organization and at the same time develop the existing employee via Training and development program. 3. Organisational Structure: The organizational structure of any organization is one of the important factors to determine the culture of any organization. The new technology is increasingly having an effect on social trends, such as the shift towards a more independent workforce. The organizations are moving towards development of fluid forms of organizations, including virtual companies. 4. Organisational Environment: The culture of openness, motivation, inspirations supports for creating conducive environment. A no. of companies organizes Seminars, celebrate Suggestion day/ Suggestion Week and other innovative activities to create a conducive environment.
5. Reward Policy: A well-established Reward policy for encouraging ideas, improvement in systems, innovative work etc motivates an individual employee and thereby creating an enabling environment for Managing creativity at work place. Rewards for creative ideas provide visible signs of organizations commitment to creativity, there by motivating others to contribute ideas. The reward may include financial incentive, fast track promotions, and recognition at company/plant level. 6. HR Initiatives: HR being the focus and nodal point for any human resources activities, they play a vital role in all kind of policy formulation and act as a driver for initiating the culture of innovation in an organization. HR setup has to be active in bringing in new initiatives. Organisations are introducing the system of mentoring for new entrant, creating Idea data banks, Benchmarking projects, Knowledge management and repository etc for creativity.
CONCLUSION
The process for a creative organization is pooling ideas from diverse source, nurturing them for productive use. Understanding the major barri-ers to this process can help leaders avoid stalling in their attempts to increase cre-ativity in the workforce. Many organiza-tions do not focus energy on increasing creativity because of a lack of time; a lack of understanding of the role that creativ-ity plays; biases as to the types of people capable of truly creative thought; and a lack of a sense of urgency for innovation. The resulting increase in the employ-ees sense of personal responsibility will cre-ate an environment where they feel free to come up with new, useful ideas to improve multiple aspects of the workplace. Meaningful, challenging work coupled with an environment in which employees are free to express their opinions, share ideas, and stimulate thought will bring forth the most creative ideas from the workforce.
BIBILIOGRAPHY
Christensen, C. M. (1997). The Innovators Dilemma. Boston, MA: Harvard Business School Press. CK Prahalad, MS Krishna (2008), The new age of innovation: Driving Cocreated Value through Global Network, McGraw-Hill. Jane Henry (1991), Creative Management, SAGE Publication London.
Paul E. Plsek (1998), Creativity, Innovation and Quality, Prentice-Hall of India. Peter Cook (1998) Best practice Creativity, Gower Publication, London Pradeep N Khandwalla (1984) Fourth Eye: V.P Chopra & A.H Wheeler & Co.(P) Ltd. Thomas J Peter and Robert H Waterman Jr. (1981), In Search of Excellence: Lessons from Americas Best Run Companies, Harper Collins Publishers Ltd.
An Analytical Study of Driving Factors of Academic Entrepreneurial Intention Among University Students
Tusshar Mahajan and Sonia Gupta
Department of Management, Teerthanker Mahaveer University, Moradabad, U.P.
E-mail: tushar.mahajan8@gmail.com; sonia2853@gmail.com
Keywords: Entrepreneurship, Entrepreneurial intention, University students, Economic development.
INTRODUCTION
In many of the developing countries a lot of attention is being paid to the development of entrepreneurship being the most important factors which accelerate the pace of economic development. The young entrepreneur should be motivated to come out with determination to do something of their own and also to contribute to the national income. Thus there is need to provide institutional support and structural changes in organization of financial institutions to promote entrepreneurship development. Endorsing academic entrepreneurship has recently started as a subject of discussion for policy makers in the developing countries and various steps have been taken to stimulate the growth. However there are many obstacles in the way
of supporting the academic entrepreneurship. Many universities lack research activities and outcomes- most universities focus on teaching, educating and preparing their students to be employed in the industrial or managerial world. Moreover, there is a lack of comprehensive policy in supporting the academic entrepreneurship.
RESEARCH PROBLEM
From the students perspective it is always a complicated decision to start a new firm due to high level of risk and uncertainties. The entrepreneurial intention could be influenced by two types of factors Internal and external. Internal factors include motivation and personal characteristics of the person. External factors include the external environment like government policies, etc. Thus it is very important to know what are the main determinants which either supports or hinders the entrepreneurial intention of the students. This paper is written in response to the lack of understanding on factors that support the entrepreneurial intention among students especially in developing countries with special reference to university students.
One of the earliest mainstreams of entrepreneurial research that focused on the characteristics of the entrepreneurs is called the trait approach, introduced by McClelland (1965), who tried to relate entrepreneurship with psychology. According to it, there is an implicit assumption that an entrepreneur is the key player. The study found that most of the laid-off workers stayed at home for a while before finding similar jobs. Further competitiveness was found to be the most important variables in Lynns (1991) study of the relationship between national culture and economic growth. A high valuation of money was the second most important variable, although the prospect of making money typically ranked low in entrepreneurs motivation (Bamberger, 1986; Cromie, 1988; and Hamilton, 1988). According to Bandura (1986), self efficacy is also an important factor to have an influence on individual entrepreneurial intention. Self efficacy represents initiation and persistence of behaviors under uncertainty, setting of higher goals and reducing of threat rigidity and learned helplessness. Katz (1992) observed that the eldest children tended to have more entrepreneurial initiatives than their younger siblings. Many studies reveal that
An Analytical Study of Driving Factors of Academic Entrepreneurial Intention... 425
many business founders have previous business experience before setting up their own firms. (Davidsson et al., 1994; and Storey, 1994). As an important factor there is a substantial over representation of males among business founders in most countries (De Wit and Van Winden, 1989). Reynolds (1991 and 1995) found that nascent entrepreneurs among males are more than twice as many as those among females in the US. Hence the main factors which influence entrepreneurial intention of students are motivation, self efficacy, environment, parental role models, experience, academic achievement, perceived barriers, gender and some demographic characteristics. In this paper these factors served as guiding factors.
HYPOTHESES
Following are the hypotheses : H1: Students with high motivation from family and having good financial conditions are more likely to become entrepreneurs. H2: Students with role models of entrepreneurs more likely to become entrepreneurs. H3: Students with creativity and risk taking capabilities are more likely to become entrepreneurs. H4: Students with a passion for self authority are more likely to become entrepreneurs. H5: Students who want to be independent and decision maker are more likely to become entrepreneurs. H6: Students with a passion to exploit opportunities and contribute to the growth of country are more likely to become entrepreneurs. H 7: Students with low perceived barriers are more likely to become entrepreneurs.
RESEARCH DESIGN
This research is based on the survey carried out in 2010 on the students of the College of Management and Computer Applications at Teerthanker Mahaveer University, Moradabad, India. There were two groups one from junior and one from senior sections at post-graduate level. The response rate was over 66.67 %. Research tool: Structured questionnaire. Sample Size : 15 for each group. Statistical tool for data analysis: t-Test, S.D., etc.
EMPIRICAL RESULTS
Table 1: Shows the Motivations to Start Own Business
S.No. 1 2 3 4 5 6 7 8 9 10 11 12 Motives Support from family To be a rich person Motivation from family entrepreneur Motivation from other successful entrepreneur To be creative To take benefit from market opportunities For self satisfaction at work To enjoy risk taking capability To become independent To be a decision maker To be a part of economic development of country To enjoying self authority Junior Group Mean S.D. 10.5 2.798 9.4 3.134 7.9 3.348 6.9 8.0 8.4 8.8 9.1 8.6 9.1 7.0 9.0 2.558 2.403 2.065 3.224 2.469 3.835 3.142 4.268 4.055 Senior Group Mean S.D. 10 2.981 9.6 3.272 8.4 2.065 7 8.3 8 6.8 6.6 5 4.9 3.7 4.2 3.431 1.159 2.449 2.529 2.011 1.943 2.923 2.496 3.425
Table 2: Shows the Perceived Barriers

S.No. 1 2 3 4 5 6 7 8 9 10 11 12 Perceived Barriers Lack of family Support Lack of finance Lack of self confidence Lack of guidance to start Cut- Throat competition in market Uncertainty and instability Zeal for pursuing higher education Due to government Policies Unawareness of facilities provided by government/ private sector Due to personal reasons (e.g. Marriage) Lack of previous own business experience Due to lucrative job offer Junior Group Mean S.D. 10.2 2.149 9.8 2.299 9.6 1.955 7.7 1.946 7.4 2.319 6.2 2.394 6.5 3.628 6 3.265 7.9 6.2 5.3 8.2 3.478 3.645 3.128 2.820 Senior Group Mean S.D. 3.9 4.201 9.9 2.601 8.4 2.716 8 1.885 8.9 2.643 5.9 0.994 6.9 1.852 5.2 1.813 5.8 5.7 4.9 8.2 2.780 4.372 3.178 4.104
Table 3: Shows the Difference in Motivation Between the Two Groups

S.No. 1 2 3 4 5 6 7 8 9 10 11 12 Motives Support from family To be a rich person Motivation from family entrepreneur Motivation from other successful entrepreneur To be creative To take benefit from market opportunities For self satisfaction at work To enjoy risk taking capability To become independent To be a decision maker To be a part of economic development of country To enjoying self authority Mean of Diff. 0.33333 0.2727 4.4545 4.27272 2.9090 2.0909 2.8181 0.4545 0.81811 2.0909 1.7272 1.3636 S.D. of Diff. 5.0332 2.0489 4.0082 4.0020 5.5013 3.6295 4.5490 2.8078 3.0096 4.8138 4.5345 4.6176 t-test 0.2196 .44145 3.68590 3.5409 1.7538 1.91064 2.0546 0.5369 0.90164 1.4405 1.2633 0.97944
Note: level of significance is 0.05 and two tailed test
Table 4: Shows the Difference in Perceived Barriers Between the Two Groups
S.No. 1 2 3 4 5 6 7 8 9 10 11 12 Perceived Barriers Lack of family Support Lack of finance Lack of self confidence Lack of guidance to start Cut- Throat competition in market Uncertainty and instability Zeal for pursuing higher education Due to government Policies Unawareness of facilities provided by government/ private sector Due to personal reasons (e.g. Marriage) Lack of previous own business experience Due to lucrative job offer Mean of Diff. 0.27273 0.36364 3.09090 3.272727 1.181818 1.54545 1.0000 0.27273 0.54545 0.90909 0.18181 3.36364 S.D. of Diff. 6.5517 4.9593 4.1440 4.4739 3.3525 5.8831 4.5126 4.9191 3.8225 2.6783 5.2538 3.9143 t-test 0.1380 0.2431 2.4737 2.4261 1.1691 0.8712 0.7349 0.1838 0.4732 1.1257 0.1147 2.849
Note: level of significance is 0.05 and two tailed test
HYPOTHESIS TESTING RESULTS

1 2 3 4 Motivation Support from family To be a rich person Motivation from family entrepreneur Motivation from other successful entrepreneur Hypotheis : H3 5 6 7 8 9 10 11 12 To be creative To enjoy risk taking capability Hypotheis : H4 For self satisfaction at work To enjoying self authority Hypotheis : H5 To become independent To be a decision maker To be a part of economic development of country To take benefit from market opportunities Perceived Barriers Hypotheis : H6 Accepted Accepted Accepted Accepted Hypotheis : H1 Confirmed
Hypotheis : H2
Rejected
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Hypotheis : H7
Accepted
CONCLUSION
This research highlighted the growing need to create entrepreneurial education in developing countries. It is clear that students are having passion to go for entrepreneurship but they are not having enough guidance and experience. This is the duty of the educational sector to impart the various programmes in the course so that student can know about the various policies and facilities to start their own business. For this workshops and practical implications are necessary. There are some limitations to the findings of the study as the current approach was based on subjective perception of students. It can be extended further to include other factors also which can increase the understanding of relationships between entrepreneurial intention among students.
REFERENCES
Bamberger I (1986), The Stratos Project: Theoretical Bases and Some First Descriptive Results , Paper Presented at the 4th Nordic Research Conference on Small Business, Umea/Vasa, June 4-6. Bandura A (1986), The Social Foundations of Thought and Action, Prentice Hall, Englewood Cliffs, New Jersey. Baumol W J (1968), Entrepreneurship and Economic Theory, American Economic Review, Vol. 58, No. 2, pp. 64-71. Davidsson P (1989), Continued Entrepreneurship and Small Firm Growth, The Economic Research Institute, Stockholm, Sweden. Etzkowitz H and Leydesdorff L (1997), Universities in the Global Economy: A Triple Helix of University-Industry-Government Relations, Cassell Academic, London. Hamilton R T (1988), Motivations and Aspirations of Business Founders, International Small Business Journal, Vol. 6, No. 1, pp.70-78. Hisrick R D and Peters M P (1995), Entrepreneurship: Starting, Developing and Managing a New Enterprise, Irwin, Homewood, Illinois. Katz J A (1992),A Psychological Cognitive Model of Employment Status Choice, Entrepreneurship Theory and Practice, Vol. 27, No. 1, pp. 29-37. Krueger N and Brazael D V (1994), Entrepreneurship Potential and Potential Entrepreneurs, Entrepreneurship Theory and Practice, Vol. 18, Spring, pp. 91-104. Lynn R (1991), The Secret of the Miracle Economy: Different National Attitudes to Competitiveness and Money, The Social Affairs Unit, London. Mathews C H and Moser S B (1995), Family Background and Gender: Implications for Interest in Small Firm Ownership, Entrepreneurship & Regional Development: An International Journal, Vol. 7, No. 4, pp. 365-378. McClelland D C (1965), Achievement and Entrepreneurship: A Longitudinal Study Journal of Personality and Social Psychology, Vol. 1 No. 4, pp. 389393.
Indian Economy in the Post Global Crisis Era A Multi Dimensional Review
C. Barathi
Manipur Institute of Management Studies Manipur University
E-mail: barathi75@gmail.com
INTRODUCTION
The global economic crisis which had its epi centre in the US housing market is still continuing to have a devastating impact on many economies. Global growth has severely contracted, millions of jobs have been lost, the banking systems in several countries are in a great mess saddled with huge non-performing assets and speculative losses, trillions of dollars of investor wealth have been wiped out, global trade has sharply declines and the number of poor have increased manifold due to the cascading impact of the crisis. The Indian economy which was the second fastest growing economy in the world (among the large economies), next only to China was also impacted by the under currents of the global crisis. Though the Indian economy is not export led, due to the increasingly integrated nature of the global economic and financial systems, several parameters of economic development were affected as a result of the crisis, though the magnitude was less when compared to many other countries. This paper discusses the impact of the global economic crisis on the Indian economy and the response of the economy in the post crisis period.
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This paper is conceptual in approach and descriptive research has been used. The authors have relied on secondary data and the period considered for the study is 2006-07 to 2010-11.
NEED FOR THE STUDY

Home to 15 per cent of the global population and being the 11th largest economy in terms of nominal GDP, opinion was divided among experts on whether the Indian economy would emerge stronger or decline as a result of the crisis. Therefore this paper was written with the purpose of analysing the response of the economy in the aftermath of the crisis.
THE INDIAN ECONOMY RESILIENT AND ON THE ROAD TO RECOVERY

The Indian economy which was aiming for a double digit growth rate on the back of strong fundamentals and robust economic performance as evidenced by an average of 8 per cent plus growth rate during 2005-06 to 2007-08 witnessed a sharp decline in its GDP from 9 per cent in 2007-08 to 6.7 per cent in 2008-09. It needs to be remembered that though there was a decline in GDP growth rate, the growth achieved in the crisis year was much better than most of the economies. The slow down witnessed in the US and European markets had a telling effect on the export front and the overall liquidity squeeze and uncertain global conditions had a negative impact on the economy. Foreign investors pulled back their investments in the Indian markets seeking safer avenues which pushed the indices down and the rupee witnessed a free fall necessitating intervention of the RBI. The fundamental strength of the Indian economy was the strong trend in domestic consumption. The stimulus package implemented by the government and monetary policy interventions undertaken by the RBI (successive cuts in CRR and SLR, lowering of the repo and reverse repo rates) were instrumental in reviving the economy and data for the first two quarters of 2010-11, shows that the economy is on a sound footing and barring any major spike in the price of oil and commodities is poised to grow at 9 per cent during 2011-12. Let us discuss about the emerging trends on various economic parameters and on the various components of the economy.
GDP Growth Rates

Indias economic growth slowed down in all sectors and the GDP growth rate fell
from 9.7 per cent in 2006-07, 9 per cent in 2007-08 to 6.7 per cent in 2008-09. During 2009-10, the economy recovered albeit marginally, to grow at 7.4 per cent as a result of the stimulus package and easy monetary policy of the RBI. GDP growth in the first quarter of this fiscal has been 8.8 per cent and 8.9 per cent in the second quarter.
Per Capita Income

Indias per capita income grew by 10.5 per cent to Rs 44,345 in 2009-10 as compared to Rs 40,141 in the preceding year. Per capita income (at 2004-05 prices) stood at Rs 33,588 in FY10 against Rs 31,821 in the previous year.
Rupee
As FII investments witnessed a mass exodus, in September 2008 the rupee, fell to a two-year low of 46 against the US dollar. In the next few weeks, the rupee started hitting fresh lows on a daily basis and weakened to an all-time low of 52.13 in early March 2009. RBI sold $29 billion (Rs 149,706 crore) to check the rupees fall and over Rs 600,000 crore of primary liquidity was pumped into the system. The government stepped up spending and cut tax rates to spur demand. In 2009-10 and 2010-11, though current account deficit was 3 per cent, the rupee appreciated against all major currencies due to strong capital flows.
Agriculture Sector
Inspite of the crop loss due to heavy rains during the kharif seasons, the ouput of food and cash crops are expected to be much higher in 2010-11 as compared to 2009-10. The sector has revived sharply in the first two quarters of the current fiscal from the drought of the previous year. It has grown at 3.8 per cent for the period April Sepember 2010 when compared to the 1 per cent growth last year. It is expected to further gain momentum during the third and fourth quarters on the back of good harvests during the kharif and rabi season.
Industrial Sector
The industrial sector is expected to grow at 12 per cent for the year 2010-11. It had grown at 10.5 per cent for the period April August 2010 as compared to 5.9 per cent for the corresponding period last year. The overall growth in the core sector at 4.5 percent during April September 2010 is higher than the 4 per cent achieved during the corresponding period last year.
Services Sector
The average growth of GDP from services dropped to single digit levels in Q3: 2008-09 inspite of the governments stimulus package. IT and ITes also had to face tough time due to the slowdown in the US and Europe The services sector recovered in 2009-10, but the pace of revival was slow. For instance software exports from India grew by just 5.5 per cent. In the first two quarters of 2010-11, the services sector has gathered momentum and has grown at over 9 per cent and this trend is likely to be sustained.
Tax Collections
Even after substantial tax reliefs granted in the budget, tax collections in 2010-11 is expected to be substantially higher. The direct tax collections for the period April to December 15 (2010-11) rose 18% to reach Rs.2.96 lakh crore. Indirect taxes increased by 42.3 per cent for the period April to November 2010, to reach Rs.2.07 lakh crore.
Fiscal Deficit
In view of the buoyancy in tax collections, the huge Rs.65,000 crore received from auction of spectrum and broadband, and the disinvestment proceeds, fiscal deficit is expected to decline from 6.9 per cent in 2008-09 to 5.5 per cent in 2010-11.
Current Account Deficit

Though the trade deficit was lower, the decline in invisibles resulted in a higher current account deficit of 2.9 per cent in 2009-10. The current account deficit is expected to widen to $50 billion by March 31, 2011 and since foreign inflows are expected to be in the range of $70 billion, there would be a small surplus of $20 billion to be managed.
Forex Reserves
With regard to forex reserves, India is among the top 10 nations with reserves of $296.4 billion. The forex reserves breached the mark of $300 billion on November 10, 2010 for the first time after the onset of the global crisis. The forex currency assets stood at $271.29. Indias foreign exchange reserves had earlier touched $300-billion in March 2008, before the crisis.
Foreign Trade
Indias foreign trade is on the recovery path in 2010-11 though the high growth rates witnessed in the pre-crisis era would take time to materialise. Exports which were $163.13 billion in 2007-08 rose to $185.29 in 2008-09 and fell marginally to $178.74 in 2009-10. Imports which increased sharply from $251.65 billion in 200708 to $303.69 billion in 2008-09 fell to $288.4 billion in 2009-10. During April September 2010-11, exports increased by 28 per cent to $103.64 billion and imports increased by 29.9 per cent to reach $166.4 billion compared to the corresponding period last year.
FDI
According to the UNCTADs World Investment Prospects Survey 2010-12 India has replaced the US as the second most important FDI destination. Global FDI inflows are expected to increase from $1.2 trillion in 2009-10 to $1.5 trillion in 2010-11 and $2 trillion in 2011-12. FDI at $25.88 billion in 2009-10 was 5 per cent lower when compared to $27.33 billion received in the previous year.
FII
FIIs which were on a withdrawal spree in the immediate aftermath of the crisis have invested Rs.71,000 crores this year upto end September 2010. In the month of September alone, FII investments were Rs.25,412 crore. With the Indian corporate sector reporting encouraging results, increasing uncertainty in global markets and the quantitative easing of $600 billion announced by the US government, FII investments are set to further surge.
Banking
While bank credit has increased by 98 per cent (April December 2010) there has not been corresponding increase in deposits. Incremental bank credit and investment have absorbed over 100 per cent of incremental deposits. Therefore banks have been allowed to take recourse to the Liquidity Adjustment Facility. This is welcome when compared to the period April to August 2009 when bank credit grew 14.09 per cent, the slowest in five years and banks were parking over Rs 100,000 crore (Rs 1,000 billion) through the reverse repo window. The situation improved in 2009-10 with credit off-take picking up and gathered great momentum from the first quarter of 2010-11. As a sign of abundant caution and to deflate asset bubbles in the realty sector, RBI has increased the provisioning of teaser loans by 1.6 per cent.
Inflation
Inflation remains a cause for serious concern. During 2009-10, the estimated food inflation and non-food inflation were 14.6 per cent and 3.8 per cent respectively. In 2010-11, it was in double digits for several months till July 2010. It declined to 7.48 per cent in November from 8.58 per cent in the previous month. Food inflation, however, rose to 9.46 per cent for the week ended December 4 from 8.69 per cent in the previous week.
Stock Markets
The stock markets which recorded historic highs in January 2008 (20251.09 on January 15, 2008) fell to four digit levels with the FIIs withdrawing Rs.33,000 crore between September 2008 and March 2009. The Sensex witnessed high volatility in 2009 -10 and in 2010-11 recovered sharply due to encouraging corporate performance and huge FII inflows. Both the Sensex and Nifty crossed 21,000 and 6,300 points in November though there has been a slight decline after the news of successive scams, but market experts point out that this is a temporary blip. The largest IPO Coal India was over subscribed by 15 times, and the high retail participation is an encouraging sign.
CONCLUSION
Though the Indian economy has been resilient in weathering the impact of the global economic crisis, the growing uncertainty in most of the advanced economies, are causes of concern. The huge capital inflows at 4.1 per cent of GDP, though helpful in meeting the current account deficit can cause rupee appreciation and affect the competitiveness of exports. Another area of concern is the rising trend in crude oil prices which can cause the trade deficit to widen and spike up the already high inflation. Therefore the future needs to be viewed with optimism mixed with equal amount of caution.
REFERENCES
Adam Smith (2008). The Credit Crisis spreads to Europe, TIME, August 11, p.2427. Balaji CD (2009), Global Financial Crisis Causes, Impact and Lessons, Finsights, February, p.1-7. Balaji CD (2009), The US Sub-Prime Mortgage Crisis Causes and Implications, Indian Journal of Finance, July, 3(7), ISSN 0973-8711, p.1-5.
Chandrasekhar CP and Jayati Ghosh (2007). Lessons from the US sub prime lending crisis, The Hindu Business Line, April 17, p.9. Jim Frederick (2007). Bottom Dollar, TIME, November 14, p.34. Narasimhan CRL (2010). Banks gear up for future with confidence, The Hindu, Nov.22, p.15. Paulo M. Martelli (2008). The subprime crisis and what it means for India, The Economic Times, May 5, p.5. Robert J Shiller (2008). India and the global financial crisis, The Economic Times, October 20, p.11.
Customer Relationship Management from the Business Strategy Perspective

Sudhinder Singh Chowhan, Vandana Malviya and Priynaka Patni1
Institute of Management and Computer Science, NIMS University, Jaipur (Rajasthan) 1 Bhagwant University, Ajmer
E-mail: sudhichowhan@yahoo.com
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

Is a broadly recognized, widely-implemented strategy for managing and nurturing a companys interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes, principally sales activities, but also those for marketing, customer service, and technical support. The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service.
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

Refers to the methodologies and tools that help businesses manage customer relationships in an organized way.
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For small businesses, customer relationship management includes: CRM processes that help identify and target their best customers, generate quality sales leads, and plan and implement marketing campaigns with clear goals and objectives; CRM processes that help form individualized relationships with customers (to improve customer satisfaction) and provide the highest level of customer service to the most profitable customers; CRM processes that provide employees with the information they need to know their customers wants and needs, and build relationships between the company and its customers.
CHARACTERISTICS OF EXCELLENT CRM

The following characteristics are associated with delivery of excellent CRM: Reliability Accessibility Responsiveness Safety Accessibility Communication Courtesy Consideration Recognising the customer Competence To be customer-centric, companies need to collect and store meaningful information in a comprehensive customer database. A customer database is an organized collection of information about individual customers or prospects.
EVOLUTION OF CRM
Although there are now many software suppliers for CRM, it began back in 1993 when Tom Siebel founded Siebel Systems Inc. Use of the term CRM is traced back to that period. In the mid-1990s CRM was originally sold as a guaranteed way to turn customer data into increased sales performance and higher profits by delivering new insights into customer behaviors and identifying hidden buying patterns buried in customer databases. Instead, CRM was one of the biggest disappointments of the 1990s. Some estimates have put CRM failure rates as high as 75 percent. But more than a decade later, more firms in the United States and Europe are appearing willing to give CRM another try. A 2005 study by the Gartner Group, found 60 percent of midsize businesses intended to adopt or expand their CRM usage over the next two years. Why the interest? Partially the
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renewed interest is due to a large number of CRM vendors that are offering more targeted solutions with a wider range of prices and more accountability.
PROBLEMS WITH CRM

One of the major problems with CRM is the large investment to build and maintain a customer database which requires computer hardware, database software, analytical programs, communication links, and skilled personnel. Also, there is the difficulty of getting everyone in the organization to be customer oriented and to get everyone to actually use the customer information that is available. Providing adequate training so that personnel feel comfortable using a new system is critical. Also, not all customers want a relationship with the company and some may resent the organization collecting information about them and storing it in a database. Another problem is the long wait for a return on investment.
HOW TO SUCCEED WITH CRM

CRM projects require careful planning and implementation. To be successful, CRM involves major cultural and organizational changes that will meet with a lot of resistance. CRM should be enterprise-wide in scale and scope. However, it is usually better to take an incremental approach starting with a CRM pilot. Once the pilot succeeds, then introducing one CRM application at a time is recommended. Also, it is important to be skeptical of vendor claims and to know that user expectations for CRM are often unreasonable.
CRM from the Information Technology Perspective

From the technology perspective, companies often buy into software that will help to achieve their business goals. For many, CRM is far more than a new software package, the renaming of traditional customer services, or an IT-based customer management system to support sales people. However, IT is vital since it underpins CRM, and has the payoffs associated with modern technology, such as speed, ease of use, power and memory, and so on. Customer Touch Points are vital since your business has a marketing orientation and focuses upon the customer and his or her current and future needs. Applications are essentially the software and programmes that support the process. Incidentally, this is what some would call CRM - but we know better. Applications serve Marketing, Sales (e.g. monitoring Customer Touch Points), and Service (e.g. customer care).
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Data Stores contain data on every aspect of the customer, and the Customer Life Cycle (CLC). For example, an organisation keeps data on the products you buy, when you buy them, and where they are sent. CRM is a term that is often referred to in marketing. However, there is no complete agreement upon a single definition. This is because CRM can be considered from a number of perspectives.
CRM from the Customer Life Cycle (CLC) Perspective

The Customer Life Cycle (CLC) has obvious similarities with the Product Life Cycle (PLC). However, CLC focuses upon the creation of and delivery of lifetime value to the customer i.e. looks at the products of services that customers need throughout their lives. It is marketing orientated rather than product orientated. Essentially, CLC is a summary of the key stages in a customers relationship with an organisation. The Customer Life Cycle (CLC) has obvious similarities with the Product Life Cycle (PLC). However, CLC focuses upon the creation of and delivery of lifetime value to the customer i.e. looks at the products or services that customers need throughout their lives. It is marketing orientated rather than product orientated, and embodies the marketing concept. Essentially.
LIVE CASH
PEMSION
RIGHT TRACK STUDENT LOAN
RETIRMENT PLAN LIFE INSURANCE SAVINGS
CUSTOMER LIFE CYCLE (CLC)
GRADUATE A/C CAR LOAN
MORTGAGE
Source: marketingteachers.com
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CRM From the Business Strategy Perspective

The Business Strategy perspective has most in common with many of the lessons and topics contained on this website, and indeed within the field of marketing itself. The diagram below shows the Marketing Teacher Model of CRM and Business Strategy.
Business Strategy and CRM

We now consider the Business Strategy Perspective on CRM. Here, we propose a model, which is a hybrid, and typical of many of the models and diagrams of CRM that you will find on The Internet and in popular books on the topic of eMarketing/eCommerce. The model has three key phases and three contextual factors:
Business Strategy and CRM
Source: www.marketprotfolio.com
Key Phases
1. Customer Acquisition 2. Customer Retention 3. Customer Extension 4. Marketing Orientation; 5. Value Creation; 6. Innovative IT
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1. Customer Acquisition: This is the process of attracting our customer for the first their first purchase. 2. Customer Retention: Our customer returns to us and buys for a second time. We keep them as a customer. Through market orientation, innovative IT and value creation we aim to increase the number of customers that purchase from us regularly. 3. Customer Extension: Our customers are regularly returning to purchase from us. We introduce products and services to our loyal customers that may not wholly relate to their original purchase. 4. Marketing Orientation: Means that the wholes organisation is focused upon the needs of customers. Customer needs are addressed by the Three Levels of a Product whereby the organisations not only supplies the actual, tangible product, but also the core product and its benefit, and also the augmented product such as a warranty and customer service. 5. Value Creation: Centre on the generation of shareholder value based upon the satisfaction of customer needs & the delivery of a sustainable competitive advantage. 6. Innovative IT: is exactly that - Information Technology must be up-to-date. It should be efficient, speedy and focus upon the needs of customers. Organisations will track individuals, and try to market products and services to them based upon similar buyer behaviour seen in other individuals. To be successful, its imperative that objectives are thorough, measurable and directly attributed to supporting the overall strategy. Several common CRM objectives include the following: Shared customer knowledge, Prospects, customers and business partners call on multiple resources in varying lines of business and through multiple communication channels. Its essential that any and all resources called upon share the same information in order to speak intelligently and with a common voice. Shared customer data ensures that each customer interaction is handled with the same degree of care while leveraging the same information across all departments, geographies and channels. 360 degree consolidated customer view, The achievement of a single, enterprise-wide view of the customer relationship delivers one real-time version of all customer information, eliminates duplicate data entry, reduces systems integration complexity and empowers staff with up to date knowledge and actionable customer insight.
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Repeatable processes, the adoption of CRM automation software facilitates consistent processes, process improvements and best practices among all staff who use the software to become more efficient in their daily roles. If developing successful strategies and objectives were either easy or routine, the CRM implementation failure rate would not be deplorably high (over 50% according to research firm Gartner). CRM is a continuous journey and those organisations that are most successful repeatedly assess, learn and adjust and then repeat the process again. Make sure you take the time to identify, reengineer and plan your business processes before you commit to a CRM strategy or begin looking for CRM software. CRM implementations are always challenged by user resistance. To reduce this known risk, implement a broad representative team to ensure that all departments, divisions and/or geographic locations are fully represented. When evaluating CRM systems, specify the decision making criteria based upon your most strategic business objectives and in advance of reviewing software demonstrations. It is extremely advisable to use structured demonstration scripts so that each vendor matches their business software with your most prioritized objectives and so the vendor solutions can be fairly compared is a side by side manner. Also be certain that your demonstration requirements are detailed, measurable and scored.
Suggestions to provoke advanced planning.
Impact of Employee Engagement on the Performance of Employees in an Organization

Prasanna Kumari B.
Associate Dean of Academics, Auroras Business School, Hyderabad
E-mail: prasannakumarib@absi.edu.in
ABSTRACT This paper discusses the recent expressed interest of employees in the concept of employee engagement. This research has consistently shown that employee engagement is powerfully linked to a range of business success factors such as Employee performance and related to the factors of commitment, job satisfaction, retention of employees, Rewarding employees, develops leadership qualities and put together all its leads to the productivity of the employees and the organization. In todays economic environment, it is more important than ever for organizations to win in the marketplace through a single-minded focus on their goals and growth strategies. Having employees on board as co-creators of business sustainability and success and as ambassadors for the corporate reputation has never been more important in the performance of the employees.
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Factors that drive employee engagement include, leaders who inspire confidence in future managers who recognize employees and emphasize quality and improvement, opportunity to grow and firms showing genuine responsibility to employees and communities. The study would focus on the engagement and how healthy organizations are comprised of well-trained, engaged workers who have the tools they need and are aligned toward common goals and performance. There is no doubt that the downturn in the economy posed many challenges for businesses. Many organizations focused on restructuring their business, which sometimes meant using strict measures aimed at driving down costs and improving the bottom-line. The following are the objectives of the study: To understand the various factors affecting employee engagement in an organization. To understand and analyze the impact of employee engagement on the performance of the employees.
HYPOTHESIS H0 (Null Hypothesis)

There is no impact of Employee engagement on performance of the employees in an organization.
H1 (Alternative Hypothesis)
There is impact of employee engagement on performance of the employees in an organization.
RESEARCH DESIGN
Research design is the master copy of the study and it gives the insights of how the study is carried forward and the methodology adopted to study this particular area. Well structured questionnaire was designed and circulated among the employees of various organizations and the questionnaires focus was on the factors effecting employee engagement with regard to performance of the employees. The factors considered for this study are commitment, job satisfaction, retention of employees, productivity of the employees, rewards system of the organization and Leadership qualities of the employees. This questionnaire was
administered to 80 employees but we could receive responses from only 60 which were perfectly answered. The scope of this study is restricted to only few organizations in the twin city of Secunderabad and Hyderabad. As the study concentrates on understanding the impact of employees engagement on the performance Chi-square is adopted for testing the hypothesis.
INFERENCES
The challenge for businesses is to create an environment where employees understand and commit to the companys direction, strategy and goals. This requires a holistic, coordinated effort to ensure that a number of key elements or building blocks are in place to promote alignment. This research focuses on analyzing few factors of employee engagement on performance of employees.
COMMITMENT
This research assumes Employee engagement as the extent to which employees commit to something or someone in their organization, how hard they work, and how long they stay as a result of that commitment. While minimal differences in engagement exist across demographic segments, dramatic differences exist across organizations. Table 1: Role of Commitment in Engaging Employees and Performance
Particular Connection between work and Org Strategy Demonstrates Strong Sense of owning Understanding how to complete work projects leads and makes more efforts to complete the tasks Commitment of management is must for specific performance objectives Has clarity on the works assigned and taken Value 2.033 2.750 2.676 5.401 3.111 4.536 DF 4 4 6 6 2 6 Asymp Sig (2-sided) 0.0221 0.0161 0.0271 0.0126 0.0111 0.0104
The above parameters of owning the organization, taking initiative, performing the tasks and maintain clarity in the tasks assigned all are significant as the values are less than 0.05.
JOB SATISFACTION Employee engagement is a connection between employees job and organizational strategy and employee understanding of how important their job is to organizational success.
Table 2: Role of Job Satisfaction in Employee Engagement and Performance
Particulars Employees select their Own methodology of work Importance of Job to Organizations Success Demonstrates Passion to succeed Communication is present at all levels of employees Always Innovative and Initiative Qualitative discussion are made with superiors and subordinates for improving employee performance Value 2.396 6.862 5.765 2.817 5.114 2.086 DF 4 6 6 6 6 4 Asymp Sig (2-sided) 0.003 0.014 0.000 0.0111 0.0229 0.0120
This study proves that by engaging employees in productive works job satisfaction of employees is high and they put more efforts to achieve the targets and work towards results.
RETENTION By increasing employees engagement levels, organizations can expect an increase in performance of up to 20 percentile points and an 87% reduction in employees probability of departure
Table 3: Role of Retention in Engaging Employees and Performance
Particulars Encourages and Manages Innovation Respects Employees as Individuals Appraisal system provides Retention and development of Employees. Positive Motivation is Present at Your work place Management cares for Employees Management is open to new ideas from employees Value 8.579 2.980 6.061 10.345 5.358 2.233 DF 6 4 4 4 4 6 AsympSig (2-sided) 0.019 0.011 0.011 0.023 0.015 0.040
Engaging employees in the work creates more opportunities for employees to learn and to focus on their careers and this is one of the factors to motivate and retain employees.
PRODUCTIVITY OF THE EMPLOYEES IN THE PERFORMANCE

This study also highlights that an engaged workplace benefits employees by increasing their sense of involvement and well-being at work, which in turn inspires them to put in the extra effort, commitment and productivity Table 4: Productivity of Employees
Particular Accepts responsibility from successes and failures Adopts to changing circumstances Appraisal process of your organization increases productivity Sets realistic performance expectations Possesses Job Skills and applies it in different roles Improves in the quality of the work Value 0.758 6.261 0.892 3.574 4.028 2.225 DF 2 4 3 2 4 4 Asymp Sig (2-sided) 0.035 0.018 0.428 0.012 0.002 0.094
All the values above prove that the employee engagement has impact on employee performance.
REWARDING EMPLOYEES
Without a clear strategy and direction from senior leadership, employees will burn valuable time on activities that do not make a difference for the organizations success. Table 5: Rewarding the Employees
Particular You have frequent Appraisal systems. Defends direct and productive reports Improves Analytical thinking Helps in finding solutions to the problems Employees are appreciate for their performance You are accountable for your performance Value 0.892 2.504 15.272 24.826 4.661 3.596 DF 3 4 4 6 4 2 Asymp Sig (2-sided) 0.028 0.004 0.002 0.026 0.034 0.016
All the values above prove that the rewards play a major role in employee engagement and leads to performance of employees in an organization.
LEADERSHIP QUALITIES THROUGH EMPLOYEE ENGAGEMENT

Depending on the demographic information collected when the engagement measure is implemented, one can create breakout reports by leader. This means leaders can gain a better understanding of how engagement in their particular group differs from the rest of the organization. Table 6: Leadership Qualities Among Employees
Particular Feels proud to lead the team Builds a high engagement culture Builds contribution opportunities in the wider workforce Helps in employee Involvement Removes structural Barriers to contribution Builds opportunities for subordinate and make them involved Value 0.892 2.504 15.272 24.826 4.661 3.596 DF 3 4 4 6 4 2 Asymp Sig (2-sided) 0.028 0.004 0.002 0.026 0.034 0.016
Immediate supervisors and managers need to display the interpersonal skills required to engage employees and enhance their self-confidence.
FINDINGS OF THE STUDY

Those employees who are most committed perform 20% better and are 87% less likely to leave the organizationindicating the significance of engagement to organizational performance. While the majority of employees are neither highly committed nor noncommitted, more than 1 in 10 employees are fully disengagedactively opposed to something or someone in their organizations. Instead, dramatic differences between companies suggest that engagement levels are determined more by company strategies and policies rather than any characteristics regarding the employee segments themselves. An analysis of both rational and emotional forms of engagement reveals that emotional engagement is four times more valuable than rational engagement in driving employee effort.
Employee retention, on the other hand, depends more on a balance between rational and emotional engagementas illustrated by the importance of compensation and benefits in driving employees intent to stay. While employees commitment to their leaders is crucial to engagement, the leader is most important as the enabler of employees commitment to their jobs, organizations, and teams. Among the factors of employee engagement the most is a connection between an employees job and organizational strategy. Compensation has a much larger impact on retention than on performance their best interests. Finally, this study could analyze that in many organizations 70% of employees are unproductive and the main cause for this could be they are not engaged in the works. The study also found that organizations with employee engagement are more likely to achieve organizational goals and meet their strategic objectives.
SUGGESTIONS
Prioritize engagement driven business tasks. Remove structural barriers among employees. Identify the drivers of disengagement and target them to eradicate it completely. Establish the relationship between business culture and business results. Build a high engagement culture. Involve leaders in defining contribution strategy. Involve employees in decision making of organization matters. Ensure equality of opportunities among employees.
CONCLUSION
Engaged employees are the key to any organizations ability to grow and prosper and have a positive impact on the employee experience acting as living embodiments of the brand promise. This is particularly so in todays economy, where attraction and retention of experienced, skilled, and creative employees (who, in turn, act as advocates of the organization to key stakeholder groups) can make the difference between success and failure. There is clear evidence to suggest
that what employees look for in their work is a mixture of both tangible and intangible elements that create a stimulating environment where their contribution is recognized and appropriately rewarded, where they have to chance to develop and participate, and where the leadership of the organization supports their efforts. In fact, emotional factors play a much more important role in shaping attitudes and behavior than previously thought.
REFERENCES
Anthony A. Atkinson, John H. Waterhouse and Robert B. Wells, A Stakeholder Approach to Strategic Performance Measurement, Sloan Management Review, spring 1997. Attridge, M. (2009). Employee Work Engagement: Best Practices For Employers. Research Works: Partnership for Workplace Mental Health, 1, 1-11. David P. Hanna, Designing Organizations for High Performance, Addison Wesley, 1988. Frederick Herzberg, One More Time: How Do You Motivate Employees? Harvard Business Review, January-February, 1967. Holbeche, L., & Springett, N. (2003). In Search of Meaning in the Workplace. Horsham, Roffey Park. Harter, J.K., Schmidt, F.L. & Hayes, T.L. (2002) Business-Unit-Level Relationship between Employee Satisfaction, Employee Engagement, and Business Outcomes: A Meta-Analysis. Journal of Applied Psychology, 87, 268-279 Jeffrey Pfeffer, Competitive Advantage through People: Unleashing the Power of the Work Force, Harvard Business School Press, 1996. John P. Meyer and Natalie Allen, Commitment in the Workplace: Theory, Research and Application, Sage Publications, 1997. Linda Bilmes, Konrad Wetzker and Pascal Xhonneux, Value in Human Resources, Financial Times, 10 February 1997. Organizational Effectiveness: Discovering How to Make it Happen. Right Management, July 2009. Robert S. Kaplan and David P. Norton, The Balanced Scorecard, Harvard Business School Press, 2008. Robinson D. Perryman S. Hayday S. (2004). The Drivers of Employee Engagement. IES Report 408. ISBN 1 85184 336.
Microfinance Experience in India Actions and Challenges

Pinki Singh
ITS Engineering College, Greater Noida
E-mail: inghpinki@rediffmail.com
Keywords: Microfinance, Self Help Group (SHG)
INTRODUCTION
With a nationalized formal banking, rural banking for have generated unprecedented interest in microfinance in the form of group-lending without collateral shows a remarkable success of institutions like the Grameen Bank in Bangladesh. Over the past decade, NABARDs SHG-Bank Linkage Program continued to main MF model by which formal banking system reaches the microenterprenuer. Launched in the 1992, it has since proved its efficacy as a main stream program for banking by the poor Even the GOI has recognized the importance of group lending approach. Indian microfinance NGOs SHARE, BASIX, SEWA, MYRADA and PRADAN has received attention from academicians, media persons and government. However SHGs have quietly mushroomed in most districts of India over the last few years.
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The paper is organized in the following manner. Next section provides a brief background of lending to the rural poor by the rural banking sector in India. Following section takes a look at the different aspects of SHGs as the emerging entity in microfinance. Fourth section studies the performance of the rural banking system in the microfinance area and final section concludes with a pointer towards the future.
BANKING SECTOR AND LENDING TO THE RURAL POOR A BACKDROP

With directed priority-sector lending (PSL) India has built up a network of rural banks with impressive coverage. Initially, 5 RRBs were set up on 2nd Oct 1975 in Moradabad, Gorakhpur (UP), Bhiwani (Haryana), Jaipur(Rajasthan) and Malda (West Bengal) with a clear mandate for lending to the poor For the first two decades of their existence, political pressure and focus on outreach at the expense of prudent lending practices led to very high default rates with accumulated losses exceeding Rs. 3,000 crores in 1999. The reforms in the mid-90s, following the recommendations of the Narsimhan Committee Report removed some of the constraints on the functioning of RRBs, easing their interest ceiling and allowing them to invest in the money market. The financial situation of the RRBs has improved since then with declining losses and over 80% of the RRBs are now profitable. (see Figure 1).
Fig. 1: Reorganization of the Banking Sector
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Over its whole lifetime, formal rural banking system in India has struggled to balance the trade off between outreach and financial performance. At the end of 2001-2002, the share of agriculture in the outstanding credit of scheduled commercial banks was less than 10% which is even less than the share of personal loans. Small loans have also declined in importance in recent years. Since over 98% of rural loans are below Rs 2 lakhs, this implies a affiliated shift out of rural areas. The logic of this shift is easy to appreciate. In 2002, 45% of the borrowers of scheduled commercial banks were from rural areas, but they accounted for only 13.4% of their outstanding loans.
SHGs AS BORROWING UNITS

SHGs form the basic constituent unit of Indian microfinance movement. SHG consists of 5-20 persons, usually all from different families. Often a group like this is given a name. Each such group has a leader and a deputy leader, elected by the group members. The members decide among themselves the amount of deposit they have to make individually to the group account. The starting monthly individual deposit level is usually low Rs. 10 or Rs. 20. For a group of size 10, this translates to Rs. 100 to 200 of group savings per month. On the basis of the resolutions adopted, signed by all members of the group, the manager of a local rural or commercial bank opens a savings bank account. The savings are collected by a certain date (often the 10th of the month) from individual members and deposited in the bank account. Loans are then given out to individual members from out of these funds upon application and unanimous resolution drawn at a group meeting. The bank permits withdrawal from the group account on the basis of such resolutions. Such loans, fully funded out of the savings generated by the group members themselves, are called interloans. The repayment periods of loans are usually short, 3-6 months. After regular loan issuance and repayment for six months, the bank considers making a bank loan to the SHG. The maximum loan amount is a multiple (usually 4:1) of the total funds in the group account. This limit reaches gradually starting from a lower (2:1 or 1:1) figure. Thus a 10 member SHG with individual monthly deposit level of Rs. 20, completing a six-month successful inter-loaning, accumulates total savings of Rs.1200/- (part of which may be lent out to individual members) and is eligible for a maximum bank loan of Rs. 4800/-.
ROLE OF NGOs IN MICROFINANCE

Developmental NGOs bringing together people, explaining the concept to them, attending and helping coordinate a few of the initial group meetings, helping
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them maintain accounts and linking them with the banks. Of late, some of the rural banks themselves are being designated as Self Help Promoting Institutions (SHPIs) that help in the formation and nursing of SHGs. Figure 2 gives the country-level breakdown of SHGs according to their promoting institution. While Figure 2 shows that more than 50% of the SHGs are formed by government agencies, it should be remembered that about 60% of government-formed SHGs come from a single state, Andhra Pradesh.
Fig. 2: Distribution of SHGs Among Different Promoting Institutions Source: Harper (2002)
Since 1985, a few organizations have succeeded in effective poverty alleviation through micro-credit. Self Employed Womens Association (SEWA) in the Western Indian state of Gujarat and Working Womens Forum in the Southern state of Tamilnadu were among the pioneers in this effort. The sector received a major boost in the 1990s with the entry of several NGOs. SHGs among the poor, mostly women because repayment rates of women are higher that of men NGOs provide the leadership and management necessary in forming and running such groups in most cases. Presently well over 500 NGO-MFIs are actively engaged in microfinance intermediation across the country.
LINKING SHGs TO THE FORMAL RURAL BANKING SECTOR

In association with sponsoring NGOs, they serve to reduce the transaction and monitoring costs of small lending for the banks and reach credit to the absolute poor. Where the NGO assists the bank in loan monitoring and recovery. Figure 3 gives the approximate nationwide distribution of SHGs among the different bank financing models.
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Fig. 3: Distribution of SHGs Among Different Bank Financig Models Source: Kropp and Saran (2002)
GOVERNMENT SUPPORT FOR SHG-BASED FINANCING

While most of the SHG, initially been in nongovernment hands, the developmental potential of the SHG-based microfinance process has noticed by the government. In recent years, government developmental programs have also sought to target the poor through the SHGs. Starting with the Rashtriya Mahila Kosh, Indira Mahila Yojana and Swarnajayanti Gram Swarojgar Yojana (SGSY) launched in April 1999. With increasing acceptance of the SHG based developmental approach there is pressure set on village and block level administrators to achieve targets of forming a certain number of SHGs by a specified date. Thus Panchayats are also promoting SHGs in many areas. Nonbanking Financial Corporations (NBFCs) and other non-government organizations (NGOs) typically connect these SHGs to local banks or to the funds provided by wholesale credit suppliers like NABARD or SIDBI (Small Industries Development Bank of India).
SWARNJAYANTI GRAM SWAROJGAR YOJANA (SGSY)

SGSY has emerged as a main anti-poverty programme instituted by the government in recent years. Started in April, 1999, it seeks to lift the rural poor out of poverty in three years by generating significant sustainable income. Organizing the poor into SHGs, goal of the programme is to enable the poor
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attain income generating assets. Programme is implemented countrywide which requires close interaction between the government officials at various levels, particularly the DRDAs (District Rural Development Agencies), managers from the participating banks, NABARD and NGOs. The actual disbursement of government funds would be through the DRDAs who would distribute the subsidy to banks. From the point of view of SHGs, SGSY is an excellent source of subsidized credit. If a group survives for 6 months it becomes eligible for a revolving fund of Rs. 25,000 from a participating bank. Out of this loan, Rs. 10,000 is in the form of government subsidy and banks may charge interest only the amount exceeding this Rs. 10,000. The Rs. 25,000 fund injection becomes part of the group corpus. With some exceptions, six months after the receipt of the revolving fund the groups would be tested for their preparedness to take up economic activities. If they pass the test, they would be eligible for loan-andsubsidy for economic activity up to a maximum of Rs. 10,000 per group member or Rs. 1.25 lakhs per group, whichever is less.
BANKING SECTOR AND MICROFINANCE

The formal banking sector has played an important role in microfinance in India. NABARDs Bank Linkage Program, pilot-tested in 1991-92 and launched in full vigor in 1996, has been a major effort to connect thousands of such SHGs across the country with the formal banking system. By late 2002, it connected about half a million SHGs to the banking system with total loan disbursement of about Rs. 1026 crores. Efforts of other organizations supplement that of NABARD. By March 2001, SIDBI had disbursed over Rs 30 crore to SHGs through 142 MFI-NGOs. The emphasis on linking the SHGs of rural poor to the formal banking system was made in the mid-80s in the Asia and Pacific Regional Agricultural Credit Association and the SHG-Bank Linkage emerged as a result of that. As on 31 March 2009 had the maximum share of SHG savings of 35,49,509 SHG (58 % ) amounting to Rs. 2,772.99 crore (50%) this was followed by RRBs with saving banks accounts of 16.28.588 SHG (26.6%) and savings amount of Rs. 1,989.75 crore (35.9%) and coopereative banks with saving banks accounts of 9,43,050 SHG (15.4%) and savings amount of Rs. 782.88 crore (14.1%). In spite of the impressive rise of MFI, the scope in India is still unlimited. India has roughly about 60 million poor households, accounting for over 350 million people, about 35% of the entire population. Even NABARD aims at reaching only 100 million of the poor (less than a third) by 2008.
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Fig. 4: State-wise Distribution of Linked SHGs Source: Created from data in Bansal (2003): The state names refer to the pre-reorganization states. Others Include Himachal Pradesh, Haryana, Punjab, Jammu and Kashmir, Assam, Meghalaya, Tripura, Sikkim, Manipur, UT of Andaman and Nicobar Islands, Goa and Pondiichery.
ROAD AHEAD PROSPECTS AND CHALLENGE

SHG-based microfinance has developed in many parts of the country but hard to measure and quantify. Government aid almost always brings in its wake political favoritism and corruption,biggest challenge is the development of investment potential and improvement of skill levels of the borrowers simultaneously. A low skilled services is an uninvited substitute for scarcity of credit. As microcredit alleviates the credit availability problem, the need for micro-consulting, business planning and services like marketing, are being felt with greater acuteness. Microcredit cannot be expected to be a panacea to rural developmental problems.
REFERENCES
Bhatt, Nitin and Y.S.P. Thorat, 2001, Indias Regional Rural Banks: The Institutional. Dimension of Reforms, Journal of Microfinance, Vol. 3, Number 1. Damodaran, Harish, 2003, Banks more shy of rural lending, Hindu, July 12, 2003. Indian Economy Pratyogita Darpan General Studies, 2010. RBI panel had warned of MFI issues, Business Standard, Dec 3 2010.
Impact of Variation of Consumer Brand Knowledge Level on Consumer Brand Sentiment

Sachit Arora, Nidhi Sinha and Vandana Ahuja
Jaypee Institute of Information Technology, Noida
E-mail: nidhi.sinha@jiit.ac.in; vandana.ahuja@jiit.ac.in
ABSTRACT As economic challenges and pressures for businesses mount, marketing teams are faced with major decisions. While widespread consumer anxiety results in dwindling businesses, marketing budget allocations are hit by cutbacks and marketers face the challenge of better market performance in a restrained economy. In this context, brand positioning gains importance as a strategic marketing function. It further becomes vital for organizations to recognize the consumer as a significant dimension in evaluating and positioning organizational brands.Our previous studies, as part of our research in the domain of Branding have indicated that building customer centricity in a brand is a significant strategic thought which organizations can explore in the wake of the rising vulnerabilities of brands, in the face of rising consumer empowerment. Our research further shows that Consumer Brand Knowledge is an important contributor in the customer centricity of a brand. In
this paper, we explore the use of organizational blogs for increasing consumer brand knowledge. In this paper we analyse the improvement in Consumer brand knowledge by exposure of the consumer to a corporate blog and subsequent impact on consumer sentiment pertaining to the brand. Keywords: Consumer Brand Knowledge, Consumer Brand Sentiment, Corporate Blogs
INTRODUCTION
The dictionary meaning of a blog is a frequent, chronological publication of personal thoughts and links. As millions of people use blogs as personal diaries on the internet, they are emerging as collaborative spaces that can be put to multiple uses and have emerged as the latest mode of computer mediated communication (Herring, 1993).This concept has found widespread acceptance in the corporate world with the emergence of corporate or organizational blogs. Also termed as a hybrid of the personal blog (Smudde , 2005), they are increasingly being explored by public relations practitioners and feature the insights, assessments, commentary, and other discourse devoted to a single company. Blogs have a comparative advantage of speedy publication-they have a first mover advantage in socially constructing interpretive frames for current events (Kolari, et. al, 2007). These web based interactions can aid in reducing the level of perceived indifference of a company, and at the same time reinforce a customer purchase decision, by offsetting the feeling of cognitive dissonance (Dwyer, 2007). From a blogging perspective, benefits to users are social as well as informational, and that connecting with their community is an important value sought by all types of users and heavy users of the system realize the greatest benefits (Daniel and Hair, 2007).Corporate Blogging is primarily about three attributes-Information, relationships and knowledge management. For the purpose of this study we focus on External Blogs being used by organizations to build brand relationships with consumers and induce participation and engagement.
LITERATURE REVIEW Brand Customer Centricity

Increased competition reduces brand loyalty making the job of the marketers more complex. Further, customers also become indifferent to the myriad marketing
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messages being thrust upon them. An increasing number of organizations have specialized in meeting the increased complexity of the individual needs. As more and more consumers gain access to powerful new media and information tools to compare brands, products and services. What consumers know about a brand will influence their reaction when confronted with brand-related stimuli (e.g. a branded product, a brand user, a category). Managing consumer brand knowledge hence becomes a crucial task for brand mangers (Aaker, 1996; Kapferer, 2004; Keller, 2003). Hence it is vital for organizations to establish a healthy and purposeful consumer-brand relationship. According to Keller (2003), consumer-brand knowledge can be defined in terms of the personal meaning about a brand stored in consumer memory, that is, all descriptive and evaluative brand-related information. Different sources and levels of knowledge such as awareness, attributes, benefits, images, thoughts, feelings, attitudes, and experiences get linked to a brand and its understanding by the consumer. To be effective, a brand needs to resonate with customers (Aaker and Joachimsthaler, 2000). This is where we draw our research objective-to analyze the improvement in Consumer brand knowledge by exposure of the consumer to a corporate blog. A simulated lab environment is created where a set of consumers are exposed to brand blog for a period of half an hour. We use the methodology of Brand Concept Mapping, whereby a focus group of consumers is asked to create brand concept maps prior to and after the exposure to the blogs. The variation in the consumer brand knowledge, as mapped subsequently, is then, empirically measured. Consumer Brand Knowledge can be defined in terms of the personal meaning about a brand stored in consumer memory, which is all descriptive and evaluative brand-related information. (Keller, 2003).
CONSUMER BRAND SENTIMENT

The brand that makes a connection with the consumer, wins their confidence and their business. Emotionally connecting consumers to a brand is essential. The consumer has to be touched emotionally more than intellectually today. The key here is to fulfill consumers desires over their basic needs. That is, to appeal to consumers emotions over their reasoned, intellectual needs. Consumer sentiment score will be used for developing a conceptual consumer knowledge map for the respective brands. Another set of questions (Screen II) was created exhibiting the attributes of consumer brand knowledge. These attributes were elicited as part of our previous
research study (Sinha, Ahuja and Medury, 2010). The objective here is to study the sentiment of a consumer with respect to a brand and the impact of variation in CBK levels on consumer sentiment. The respondents will be asked to pick one word for each attribute listed on the screen, before and after exposure to the corporate blog of a product. Each word pertaining to each attribute under the consumer Brand Knowledge function had a well defined sentiment Score. These words were lifted from sentiwordnet 1.0, a lexical resource used for sentiment mining. Each synset of Wordnet 2.0 is associated with three numerical scores-obj, pos and neg. The pos scores were used for our study. For instance the word like has a score of 0.5. Screen II will be available to the respondents before and after their exposure to the four blogs for a period of 10 minutes, the variation in the responses of the consumers will be mapped and will be subsequently used to develop consumer brand knowledge maps.The brand maps thus drawn can be used by the organizations for improving the scores. This will find wide range application in the domains of segmentation and effective targeting.
CUSTOMER CENTRICITY AND THE BRAND

As part of the previous study, an evaluation grid was developed to extract the Brand Customer centricity determinants as a function of the various attributes listed. Six functions of a brand, with respect to a consumers perspective were identified from the literature review. The following attributes were loaded on to this function: Active Engagement, Advertising and Jingle, Appealing, Attitudinal attachment, Behavioral Loyalty, Believable, Captivating, Cheerful, Empathy, Excitement, Intense, Likeable, Mesmerizing, Sensorial Experience, and Spirited. Degree of consumer brand knowledge changes with the level of increase in emotional connection. The greater the latitude of this interaction, the greater the organizational ability to generate and manage knowledge about its customers. A corporate blog helps increase the dimension of this interaction by helping the customer ask questions, get responses, look for information, contact customer service, contact senior organizational executives, portray his viewpoint, and at times access other forums related to the same organization/product/service, while at the same time help the organization capture consumer information as also actionable data to aid customization of offerings.
THE PREVIOUS STUDY

A previous study focused on analyzing the improvement in Consumer brand knowledge by exposure of the consumer to a corporate blog. The objective of the
study was to demonstrate that Corporate Blogs can be used by organizations for increasing the level of Consumer Brand Knowledge. A focus group of consumers was subjected to a set of blogs. The corporate blogs used for the purpose of the study were Facebook, Volkswagen, Google and Cadbury. We calculated the pre and post consumer brand knowledge scores (Table 1), with a focus group of 10 respondents for these blogs. An experiment (Screen 1 and 2) was developed for the purpose. Subsequently CBK (Table 1) was calculated as the variation between the pre and post Consumer Brand Knowledge levels, divided by the pre level of Consumer Brand Knowledge.
METHODOLOGY OF THE STUDY Experiment Design, Data Collection and Analysis

A pre-test was conducted to measure baseline levels of Consumer brand knowledge (CBK) and scores were tabulated. It has been observed that a time lag between pre-test and post-test makes subjects more responsive towards various information avenues that supply similar information. This results in an increase in Consumer brand knowledge (CBK) from sources other than the blog. To ensure that the blog is the sole source of information that affects the change, the pre-test is immediately followed by the blog exposure. A stimulated lab experiment which involved a timed exposure to the blog for duration of ten minutes was conducted. There was a strong focus towards maintaining uniformity in human computer interaction factors. The following two screens were developed for the purpose and the results were subsequently tabulated and analyzed.
Screen I
Table 1: Consumer Brand Knowledge Variation

Cadbury Facebook Google
C1 C2 C3 C4 C5 C6 C7 C8 C9 C10
Volkswagen Post ScorePre Score Post Score Pre Score 7.375 10.875 3.5 8 10.875 2.875 8 10.75 2.75 8 10.625 2.625 8.375 10.875 2.5 7.875 10.375 2.5 7.625 10.75 3.125 8.5 10.25 1.75 8.5 10 1.5 8.75 10.125 1.375 2.45 Cbk Pre Score Post Score 0.474576271 8 10.75 0.359375 7 10.75 0.34375 7.25 10.5 0.328125 8 10.25 0.298507463 7.375 11 0.317460317 8.5 10.25 0.409836066 7.25 10.75 0.205882353 8.125 10 0.176470588 8.5 9.625 0.157142857 7.75 10.25 Post ScorePre Score 2.75 3.75 3.25 2.25 3.625 1.75 3.5 1.875 1.125 2.5 2.6375 Cbk Pre Score Post Score 0.34375 8 10.625 0.535714286 8 10.375 0.448275862 8.875 10.875 0.28125 8.375 10.625 0.491525424 8 11 0.205882353 8.5 10.125 0.482758621 7.375 10.625 0.230769231 9.375 10.375 0.132352941 8.75 10 0.322580645 8.625 10.375 Post ScorePre Score 2.625 2.375 2 2.25 3 1.625 3.25 1 1.25 1.75 2.1125
Post Score Cbk Pre Score Post Score Pre Score Cbk 0.328125 7.5 9.625 2.125 0.283333 0.296875 7.5 11 3.5 0.466667 0.225352113 7.625 10.75 3.125 0.409836 0.268656716 8 10.375 2.375 0.296875 0.375 7.625 10.875 3.25 0.42623 0.191176471 8 10.25 2.25 0.28125 0.440677966 7.375 11 3.625 0.491525 0.106666667 8.125 10.25 2.125 0.261538 0.142857143 8.5 9.625 1.125 0.132353 0.202898551 8.375 10.125 1.75 0.208955 2.525
Screen II
The above screen was created to map the consumer brand knowledge (pre score) for the given corporate blog. Similar screens were created for the remaining three blogs for the purpose of calculation of the consumer brand knowledge score.
CONCLUSIONS
The variation in the consumer sentiment scores is indicative of change in the consumers emotions pertaining to a brand. The cognitive associations between consumer and brand are a function of the consumers assimilation of knowledge pertaining to the brand and hence it is in the organisations interest to focus on areas whereby the consumer knowledge levels can be enhanced.
IMPLICATIONS FOR ORGANIZATIONS

A higher assimilation of brand related knowledge results in improvement of Consumer sentiment pertaining to the brand. It is in the organizational interest that ways and means are developed to increase the consumers knowledge with regard to product or brand. Organizations can successfully leverage brand blogs to engage consumers, build a bond with them, and then subsequently increase their knowledge about organization/product/brand. Developing higher levels of blog interactivity will be useful in this context. Subsequent improvements in consumer sentiment pertaining to the brands will result in faster product adoption by the consumers.
REFERENCES
Aaker, D. J. (1995), Building strong brands. New York, The Free Press. Aaker, D. J. & Joachimsthaler, E.A. (2000), The brand relationship spectrum: the key to the brand architecture challenge. California Management Review, 42, 8-23. Ahuja, V., Medury Y., Improving Corporate Blog Interactivity for increased brand communication , Research Library, Customerthink Corp. (formerly crmguru.com), C.A., U.S.A, 30th October, 2008. Dwyer, P. (2007) Building trust with corporate blogs . International Conference on Weblogs and Social Media, http://www.icwsm.org/papers/ 2 Dwyer.pdf , accessed 24 October 2007 .13 McDaniel , C . D. , Lamb , C . W. and Hair , J . F . ( 2006 ) Customer relationship management . Introduction to Marketing , 8th edn. Mason, OH: Thomson Higher Education , p. 677. Herring, S. C. (1993) Gender and democracy in computer-mediated communication. Electronic Journal of Communication, http:// ella.slis.indiana.edu/ ~ herring/ejc.txt, accessed 21 March 2009. Keller, K.L., (2003), Brand Synthesis: the Multidimensionality of Brand Knowledge. Journal of Consumer Research, 29, 595-600. Kolari , P. et al ( 2007 ) On the structure, properties and utility of internal corporate blogs. Proceedings of the International Conference on Weblogs and Social Media, USA, http://ebiquity.umbc.edu/ paper/html/id/343/On-theStructure-Propertiesand- Utility-of-Internal-Corporate-Blogs, accessed 6 January 2009. Smudde , P. M. (2005) Blogging, ethics and public relations: A proactive and dialogic approach . Public Relations Quarterly 50 (3): 34 38.
Microfinance A Tool to Uplift Rural Poor

Navneet Joshi and Khushboo Gupta
Jagan Institute of Management (JIMS), Plot No. 3, Sector-5 Rohini, Delhi
E-mail: navneet.joshi@jimsindia.org; khushboo.gupta@jimsindia.org
ABSTRACT Purpose: To examine the role of micro finance in the empowerment of rural people. Methodology: This research paper is divided into two phases. The first phase studies the emergence and need of micro finance. The second phase focuses on assessing its impact on the rural poor and formulating strategies for them. The primary data for the study comprises of unstructured interviews of the rural poor, self help groups, microfinance institutions .The secondary data has been collected from journals, articles, research reports, books, magazines and websites. Findings: Despite impressive figures, India offers tremendous growth potential in the micro-finance sector to create a massive impact on poverty alleviation. If pursued with skill and opportunity development of the poor, it holds the promise to alter socioeconomic face of the countrys poor manpower. Keywords: Microfinance, Poor Rural, SHG, NABARD, NGOs
EVOLUTION OF MICROFINANCE IN INDIA

In India, the microfinance sector has come across a long journey from micro savings
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to micro credit and to micro enterprises. The reach of microfinance sector has now entered the field of micro insurance, micro remittance and micro pension. Its evolution has widely been based on the empowerment of the poor and for the alleviation of poverty. Although, microfinance has been in practice for so long in India, its legal framework for establishing the co-operative movement set up in 1904. This was followed by the Reserve Bank of India Act, 1934 which called for the establishment of the Agricultural Credit Department. Thereafter, regional rural banks were created in 1975, followed by the established of an apex agency for rural finance in 1982 and passing of Mutually Aided Co-op. Act in AP in 1995. Since then, there have emerged various microfinance models to cater the needs of poor people in India, particularly for those rural households, who dont have access to adequate financial resource.
NEED OF MICROFINANCE
An estimated 350 million people live Below Poverty Line (BPL) in India, translating to approximately 70 million households. Microfinance has emerged as a life saving treatment for the poor faced Indian economy to help it in achieving poverty alleviation. The failure of Indias rural banks to deliver finance to the poor may be attributed to a combination of factors as serving the rural poor is a high-risk, high-cost proposition mainly due to the small loan size, high frequency of transactions in rural finance, heterogeneity of borrowers, and widespread illiteracy. For private sector banks, their lack of a rural branch network is an additional problem. Also, the Indian Governments policies make things worse from the banks perspective, creating a financial climate that is not conducive to lending in general, and rural banking in particular. From the perspective of small, rural borrowers (the users), rural banks are unattractive because they do not provide flexible products and services to meet the income and expenditure patterns of small rural borrowers. Such conditions have materialized into a wide demandsupply gap of financial services among the rural inhabitants, thus creating strong need and ample space for innovative approaches to serve the financial needs of Indias rural poor i.e. microfinance.
MICROFINANCE MODELS
In India, various microfinance models have emerged over the recent past. While the SHG-bank linkage programme has emerged as the dominant micro finance dispensation model in India, other models too have evolved as significant micro finance purveying channels. Brief description of the models is as follows:
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The Grameen Model

Found by Prof. Muhammed Yunus of Grameen Bank in Bangladesh, this is perhaps the most well known, admired and practiced model in the world. The greatness of the model is in the simplicity of design of products and delivery. The focus on the poorest makes the model a favorite among the donor community. Emphasis is on lending specifically to women as it is assumed that women utilize their earnings to serve the needs of the entire family. In India, this model has been adopted by various MFIs including CASHPOR, SKS, and ASA Trichy.
The Self-help Group (SHG) Model

The SHG model is a model that is homegrown. Unlike other models of microcredit, the SHG model starts off with savings as a base. The SHG-bank linkage program has proved to be the major supplementary credit delivery system with a wide acceptance by banks, NGOs and various government departments. There are three models of SHG-bank linkages that have evolved over time, especially in India. SHGs formed and financed by Banks. SHGs formed by NGOs and Formal organizations, but Directly Financed by the Banks. SHGs financed by Banks using NGOs and other agencies as Financial Intermediaries.
The rate of growth of SHGs is not as fast as the Grameen groups, because of the heterogeneity of group formation. Since the design allows for flexibility and focuses on internal capability development, it may take a long time for penetration.
Individual Banking Model

Under the individual banking model, there are two sub models. The one is in which joint liability groups are formed thereby providing social collateral to the lending institution and the another one is individual lending whereby micro loans are given directly to the borrower. It does not include the formation of groups, or generating peer pressures to ensure repayment.
Wholesale Banking Model

There is also a Wholesale banking Model where the clients comprise NGOs, MFIs
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and SHG Federations. This Model involves a unique package of providing both loans and capacity building support to its partners.
EVALUATING THE SHGs MODEL

SHG bank linkage model involves the SHGs financed directly by the banks viz., CBs (Public Sector and Private Sector), RRBs and Cooperative Banks. Table 1 shows overall progress of SHG-Bank linkage Model under microfinance over the period from 2007-08 to 2009-10. As per data listed by NABARD, there were around 69.53 Lakh SHGs who had saving bank accounts with the banking sector (outstanding savings of Rs. 6198.71 Crore) as on 31 March 2010, representing a growth of 13.6% (outstanding savings 11.8%) over the previous year. Thus, more than 97 million poor households were associated with banking agencies under SHG-Bank Linkage Programme. Furthermore, the CBs led the overall SHG-Bank Linkage Programme with savings accounts of 40.53 lakh SHGs, followed by RRBs having savings bank accounts of 18.21 lakh SHGs and Cooperative Banks. The agency-wise savings of SHGs with banks as on 31 March 2009 and 31 March 2010 are given in Table 2. Table 1: SHG-Bank linkage Model - Overall Progress Under Micro-finance (2007-08 to 2009-10)
Source: NABARD
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Table 2: Savings of SHGs with Banks Agency-wise Position
Source: NABARD
The major form of microfinance in India is that based on womens Self Help Groups (SHGs), which are small groups of 10-20 members. These groups collect savings from their members and provide loans to them. As on 31 March 2010, the share of women SHGs in the total SHGs with saving bank accounts was 53.10 lakh SHGs forming 76.4% of the total SHG accounts. The actual share of women SHGs would be more as all RRBs from Uttar Pradesh, Gujarat and Jammu & Kashmir and all Co-operative Banks from Uttar Pradesh, Gujarat, Jammu & Kashmir, Goa, Assam, Nagaland, Tripura, Mizoram, and Manipur have not reported data for women SHGs. Poverty elevation can be achieved using SHGs because of the following reasons: SHGs help poor people to increase their asset position. It encourages the poor people towards increasing their savings. It facilitates funds for the rural people for the establishment/running of small business. It helps in empowerment of social aspects of the rural poor. It leads to change in their consumption patters by providing them with sufficient funds Issues and Challenges. Absence of appropriate regulatory regime for the structured growth of microfinance operations. Formation of MFIs which will cater to the needs of poorest community of the country.
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Designing of appropriate customized loan products which will look after the heterogeneity aspect of the Indian customers. Ability to access loan funds at reasonably low rates of interest. Ability to attract and retain professional and committed human resources. Inclusion of direct involvement of the Indian government to promote microfinance operations. Use of internet facilities to run the microfinance operations. Banks and other microfinance institutions should be encouraged to actively. participate in promoting microfinance services to the needful communities.
SUGGESTIONS AND CONCLUSION

Designing of flexible loan products that cater to the needs of different aspirants based on their income levels Introduction to flexible system of loan repayment so that those with meager and indecisive incomes can also participate Target groups should be given other critical inputs such as training and capacity building, marketing support, storage facilities, information and knowledge related to livelihood options, finances and political processes on a continuous basis. More research should be done on which segment of the population the SHGs are serving Highly co-ordinate effort among the entire participant from down to up levels including the government; the Reserve Bank of India (RBI) and NABARD, common people and banks for financial inclusion.
REFERENCES
Armendri Z., Beatriz, Morduch, the economics of microfinance PHI. Data Source from RBI and NABARD Publications. Debadutta K. Panda, understanding microfinance ISBN: 9788126519446, Wiley India Pvt. Ltd. Frances Sinha, Ajay Tankha, K.Raja Reddy , Microfinance and self-helf group in India Practical Action. Graham Bird, International Finance and the Developing EconomiesPalgrave Macmillan, 2004. ISBN10: 0333733975.
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Gabrielle Demange, Guy Laroque, The Finance and the Economics of Uncertainty, WileyBlackwell, 2005. ISBN10: 140512139. Jonathan Morduch and Beatriz Armendriz, The Economics of Microfinance. J. C. Rochet, Why Are There So Many Banking Crises? The Politics and Policy of Bank RegulationPrinceton University Press, 2008. ISBN10: 0691131465. K.G. Karmakar , Microfinance in India ISBN 0761936262 Sage Publication. M.Y. Khan, Indian Financial System, Tata McGraw Hill, 2009, ISBN-13-978-0-07008049-2. Mario I. Blejer, Zvi Eckstein, Zvi Hercowitz, Leonardo Leiderman (Eds.), Financial Factors in Economic Stabilization and Growth Cambridge University Press, 1996. ISBN10: 0521480507. P.N.Varshney, Indian Financial System, Sultan Chand & Company, 2009, ISBN 978-81-8054-625-9. Roy Bailey, The Economics of Financial Markets, Cambridge University Press, 2005. ISBN10: 0521612802. Robert J. Shiller, The New Financial Order: Risk in the 21st CenturyPrinceton University Press, 2004. ISBN10: 0691120110. Satya Sundaram, Microfinance in IndiaISBN- 978-8176465830.
Financial Inclusion: Diversifying Financial Services

Rajni Yadav
Babu Banarsi Das Institute and Technology, Ghaziabad
E-mail: rajni_ash18@yahoo.co.in; rajniyadav.mba@bbdit.edu.in
INTRODUCTION
As we are aware about financial inclusion after literature reviewed that when people are able to access financial services at an affordable cost which are essential for economic growth, reducing income disparities and reducing poverty. (Dr. C. Rangarajan) The following are the denotation & connotation of financial inclusion in India. 1. Low cost loans 2. Savings account, Current account 3. Payments & Remittance 4. Financial advice 5. Credit/debit cards 6. Insurance (Life and Health) 7. Empowering SHGs (self help groups) 8. Entrepreneurial credit
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Since 1969 to 1991 RBI has taken some initiatives for financial inclusion like expansion of branch network- average population covered per branch reduces from 64000 to 13711. (M.K. Samantaray GM RBI Guwahati), Liberalization/ opening of economy, Financial sector reforms, Deregulation, Increased competition, Strengthening of banks through recapitalization, Prudential measures. The Government of India constituted a Committee on Financial Inclusion under the Chairmanship of Dr. C. Rangarajan. Not only in India, but financial inclusion has become an issue of worldwide concern, Relevant equally in economies of the underdeveloped, developing and developed nations.
OBJECTIVES
1. The main aim of this paper is throwing some light on how financial inclusion is important for developing economy, The perception of people regarding diversified financial services and its benefits. 2. Accessing financial products and services and making better financial decisions. 3. How financial inclusion is the need of the hour for the sustainability and maintenance of the growth process.
FINANCIAL EXCLUSION
The concept of financial inclusion and its implementation has come a long way since the last two decades and the results are also quite fair. There has been much technological advances that has transformed the banking industry from traditional brick and-mortar infrastructure like staffed branches to a system supplemented by other channels like automated teller machines, debit and credit cards, internet banking, online money transfer etc. The moot point, however, is that access to such technology and services are restricted to only certain segments of the society. There is a growing divide, with an increased range of personal finance options for a segment of high and upper middle income population and a significantly large section of the population who lack access to even the most basic banking services. This is termed as Financial exclusion. One of the oldest definitions by Leyshon and Thrift (1995) define financial exclusion as referring to those processes that serve to prevent certain social groups and individuals from gaining access to the financial system. According to Sinclair (2001), financial exclusion means the inability to access necessary financial services in an appropriate form. Exclusion can come about as a result of problems with access, conditions, prices, marketing or self-exclusion in response to negative
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experiences or perceptions. Carboetal. (2005) have defined financial exclusion as broadly the inability (however occasioned) of some societal groups to access the financial system. Reasons of financial exclusion (Shri M. V. Nair CMD Union Bank of India) 1. Enrollment of large numbers 2. Wide geographic spread 3. High maintenance costs for accounts 4. Small ticket size of transaction 5. Illiteracy and use of vernacular 6. Product & service pricing 7. Trust and acceptance 8. Lack of electricity 9. Poor telecommunications 10. Fear of banks 11. Fear of failure 12. Fear of temptation
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EFFECTS OF FINANCIAL EXCLUSION

Living without financial service & products is disadvantageous when the contemporary world is moving on cashless system depending on credit cards, debit cards, ATMs &Core Banking Solution (CBS systems). Exclusion imposes real cost on the excluded lot. The implication of the financial exclusion is much greater when the excluded mass is entrapped in the hydra headed cycles of poverty. This causes further social exclusion which is very much detrimental for the equitable growth of the world community.
Who are the Excluded?

The financially excluded sections largely comprise of: Marginal farmers Landless labourers Small Vendors People engaged in unorganized sector enterprises Unemployed Migrants Socially excluded groups Senior citizens, women, children, physically challenged people
THE NEED FOR FINANCIAL INCLUSION

Despite witnessing substantial progress in financial sector reforms in India, it is disheartening to note that nearly half of the rural households even today do not have any access to any source of funds- institutional or otherwise. Hardly onefourth of the rural households are assisted by banks. Hence the major task before banks is to bring most of those excluded, i.e. 75% of the rural households, under banking fold. But the task is not so easy since they are illiterate, poor and unorganized. They are also spread far and wide. What is needed is to improve their living standards by initiating new/increased economic activities with the help of banks, NGOs and local developmental agencies. To start with, it is necessary to develop a fair understanding of their profile. In addition, their perception about the bank and its services needs to be understood. So there is a need for the formal financial system to look at increasing financial literacy and financial counseling to focus on financial inclusion and distress amongst farmers. Indian banks and financial market
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players should actively look at promoting such programs as a part of their corporate social responsibility. Banks should conduct full day programs for their clientele including farmers for counseling small borrowers for making aware on the implications of the loan, how interest is calculated, and so on, so that they are totally aware of its features. There is a clearly a lot requires to be done in this area.
THE ADVANTAGES OF FINANCIAL INCLUSION

Financial inclusion has many advantages. Following are some of the advantages summed up. An inclusive financial system facilitates efficient allocation of productive resources and thus can potentially reduce the cost of capital. This also enables the customer to remit funds at low cost. The government can utilize such bank accounts for social security services like health and calamity insurance under various schemes for disadvantaged. From the banks point of view, having such social security cover makes the financing of such persons less risky. Reduced risk means more flow of funds at better rates. A bank account also provides a passport to a range of other financial products and services such as short term credit facilities, overdraft facilities and credit card. Further, a number of other financial products, such as insurance and pension products, necessarily require the access to a bank account. Lastly, the Employment Guarantee Scheme of the Government which is being rolled out in200 districts in the country would bring in large number of people through their savings accounts into the banking system. Role of banks & regulators in Financial Inclusion. The government of India, RBI, NABARD, Co-operative banks & commercial banks has taken some initiatives with the aim to achieve global financial inclusion like between 1969 to 1991 expansion of branch network, liberalization, financial sector reforms, deregulation, increased competition, prudential measures, recapitalization in the banks. Banks providing life insurance & IT solutions to the customers.
The Methods to Achieve Financial Inclusion

No frill Accounts Overdraft in saving bank accounts
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BC/BF Model KCC/GCC Guidelines Liberalised branch expansion Introducing technology products and services like Prepaid card, Mobile Banking etc. Allowing RRBs/ Co-operative banks to sell insurance and financial products Financial literacy program Creation of special funds 431 districts identified by the SLBC convenor banks for 100 percent financial inclusion across various states/ UTs and the target in 204 districts of 21 states and 7 UTs has reportedly been achieved. What have we achieved? Number of No-Frill Accounts - 28.23 million (as on Dec. 31, 2008) Number of rural bank branches 31,727 constituting 39.7% of total bank branches (as on June. 31, 2009) Number of ATMs 44,857 (as on May 31, 2009) Number of POS 4,70,237 (as on May 31, 2009) Number of Cards 167.09 million (as on May 31, 2009) Number of Kisan Credit cards 76 million (Source: CMIE publication 2007-08) Number of Mobile phones403 million (as on Apr.30, 2009) out of which 187 million (46%) do not have a bank account (Source: Cellular Operators Association of India) Population Per Bank Branch (SCBs)
End- March 1969 (June) 1981 1991 2001 2007 Rural 82 20 14 16 17 Urban 33 17 16 15 13 Total 63 19 14 16 16
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Number of people per branch still very high Source: Report on Currency and Finance 2006-08 (BSR of SCBs) Number of Savings Accounts
Institution / End-March Scheduled Commercial Banks Regional Rural Banks Primary Agricultural Credit Societies Urban Cooperative Banks Post Offices Total Total Accounts per 100 Persons 1993 2002 2007
246 30.5
246.5 36.5
320.9 52.5
89
102.1
125.8
41.6 47.5 450.6 51
42 60.2 487.1 46
50 60.8 610.3 54
Total Accounts per 100 persons still too less! Source: Report on Currency and Finance 2006-08 Earners Having a Bank Account-2007
Annual Income (Rs.) < 50000 50000- 100000 100000-200000 200000-400000 >400000 All Urban Rural Total
34.1 75.5 91.8 95.5 98.0 61.7
26.8 71.2 87.4 93.6 96.3 38.0
28.3 73 89.9 94.9 97.6 44.9
Very low percentage in people having bank accounts in Annual Income less than Rs.50,000 bracket in urban and rural area Even in higher income bracket exclusion exists Source: Report on Currency and Finance 2006-08 (IIMS, 2007)
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BIBLIOGRAPHY
Byrne, N., McCarthy, O. and Ward, M. (2005). Meeting the Credit Needs of Low Income Groups: Credit Unions versus Moneylenders, Report Commissioned by Combat Poverty. Collard, C., Kempson, E. (2005) Affordable credit: the way forward. Bristol: The Policy Press. Retrieved on 30th June 2009 available at www.pfrc.bris.ac.uk/ publications/Reports/Affordable_credit_full_report.pdf. Collard, Sharon, (2007, February) Toward Financial Inclusion in the UK: Progress and Challenges Public Money & Management, Volume 27, Issue 1, pp13-20. Kempson, E. and Whyley, C. (1999a). Kept out or opted out? Understanding and combating financial exclusion. Bristol: Policy Press. Retrieved on 30th June 2009 Available at www.pfrc.bris.ac.uk/Reports/Kept_out_opted_out.pdf. Kempson, E. and Whyley, C. (1999b). Understanding and combating Financial Exclusion. Insurance Trends, The Association of British Insurers, 21: 1822. Kempson, E., Caskey, J., Whyley, C. and Collard, S. (2000). In or Out? Financial Exclusion: A Literature and Research Review, London: Financial Services Authority. July. Retrieved on 30th June 2009 Available at www.fsa.gov.uk/pubs/ consumer-research/crpr03.pdf. Kempson, E., McKay, S., Collard, S. (2005). Incentives to save: encouraging saving among low-income households. Bristol: Personal Finance Research Centre. Retrieved on 30th June 2009 Available at www.pfrc.bris.ac.uk/publications/Reports/ SG_Incentives_to_save_final.pdf. Ranagarajan Report. C (2008), Report of the Committee on Financial Inclusion, Retrieved on 12 th July 2009 Available at http://www.nabard.org/ report_comfinancial.asp. Taking Banking Services to Common Man- Financial Inclusion, Commemorative Lecture by Shri V.Leeladhar, Deputy Governor Reserve bank of India (2000, Dec 2) at the Fed bank Hormis Memorial Foundation retrieved on 13th July 2009 available at http://www.cab.org.in/FILCPortal/Lists/ Policypercent20Initiatives/Attachments/9/dg_vl_financial_inclusion.pdf. Why Financial Literacy is important for Financial Inclusion, Presentation by Indian School of Micro Finance for Women, Retrieved on 14th July 2009 available at www.iibf.org.in/portal/documents/fininclusion_ismw.ppt. World Bank. (2006). Building Inclusive Financial Sectors for Development (2006), United Nations (UN). Washington D.C: United Nations Capital Development Fund. Retrieved on 30th June 2009 available at www.uncdf.org/english/ microfinance/.../pub/index.php.
Corporate Governance Laws and Flaws: The Companies Act 1956 Sections 252-323
C. Usha Rani, B. Sreedeepthi, B. Swetha, B. Aliveni and K. Ashwini
Vidya Jyothi Institute of Technology
E-mail: ucherukupallis@yahoo.com
Keywords: Identity, Independent, Audit Committee, Electronic Forms
INTRODUCTION
Good Corporate Governance means maximizing long term shareholder value in a legal and ethical manner, ensuring fairness, courtesy and dignity in all transactions within and corporate governance outside the company with customers, employees, investors, partners, competitors, the government and society. The OECD Principles of Corporate Governance states: Corporate governance involves a set of relationships between a companys management, its board, its shareholders and other stakeholders. Corporate governance also provides the structure through which the objectives of the company are set, and the means of attaining those objectives and monitoring performance are determined.
Corporate Governance Laws and Flaws 483
DEFINITION
The definition of corporate governance most widely used is the system by which companies are directed and controlled (Cadbury Committee, 1992). More specifically it is the framework by which the various stakeholder interests are balanced, or, as the IFC states, the relationships among the management, Board of Directors, controlling shareholders, minority shareholders and other stakeholders.
SCOPE OF THE STUDY

In our paper we highlight (a few cases) the reasons for the amendments of certain sections in corporate laws. Here we specify sections 266A to 266G which deal with the restrictions on appointment or advertisement of director etc and 292A relating to audit committee. It has become necessary to amend Indian companies Act, 1956 after a long period due to flaws caused by changing circumstances and unethical practices. The below said bill has been finalised by 15-member committee on corporate governance appointed by the Securities & Exchange Board of India (SEBI) headed by Kumar Mangalam Birla, the Chairman of the Aditya Birla Group and the report submitted in other countries. A qualified and independent audit committee should be setup. The board should setup a remuneration committee to determine the policy specific remuneration-packages for executive directors.

My idea behind this study is to highlight the efforts of various experts committee relating to corporate governance for its optimal utilisation. Around 20 years back corporate governance was an unknown word. But it has become very popular due to some corporate failures Based on the situations; corporate laws have been changed from time to time. Due to rapid development in technology, the ministry of company affairs has decided to store information in all offices in computers. It has become statutory to get documents registered through electronic filing system and payment of certain fee also through electronic form as per he provisions of the act. The Central Government may, by notification in the Official Gazette the provisions of the Companies Act, 1956 allow an individual to be a director of up to fifteen companies and such companies can be located in the jurisdiction in any
of the Registrars of Companies. This would also facilitate effective legal action against the directors of such companies under the law, keeping in view the possibility of fraud by companies and the phenomenon of companies that raise funds from the public and vanish thereafter. It is, therefore, proposed to insert new sections 266A, 266B, 266C, 266D, 266E, 266F and 266G in the Companies Act, 1956 through amendment bill 2006, provide for allotment an independent Director Identification Number to any individual, intending to be appointed as a director in a company or to any existing director of a company, for the purpose of his identification as such, through electronic or other form and to provide for penalty for any violation in this regard. This Bill seeks to achieve the above objectives. Some of the above sections were introduced by THE COMPANIES (AMENDMENT) BILL, 2006,(As passed by the Rajya Sabha on 21/3/2006 and the Lok Sabha on 15/5/2006).Act title : No. 23 of 2006.Enactment date : 29th May, 2006.
CORPORATE GOVERNANCE
1. Section 1. Short title and commencement. 2. Section 2. Amendment of section 253. 3. Section 3. Insertion of new sections 266A, 266B, 266C, 266D, 266E, 266F and 266G. 4. Section 4. Insertion of new sections 610B, 610C, 610D and 610E. 253: No body corporate, association or firm shall be appointed director of a company, and only an individual shall be so appointed. We feel here there is a flaw, resulted in present corporate crime. The word Individual must be clearly defined (as one person from one family means, legal heirs shall be excluded for the post of director in same company). Section 2. Amendment of section 253. - In section 253 of the Companies Act, 1956 (hereinafter referred to as the principal Act), the following proviso shall be inserted, namely:Provided that no company shall appoint or re-appoint any individual as director of the company unless he has been allotted a Director Identification Number under section 266B. Section 3. Insertion of new sections 266A, 266B, 266C, 266D, 266E, 266F and 266G.After section 266 of the principal Act, the following sections shall be inserted, namely:Director Identification Number 266A. Application for allotment of Director Identification Number within sixty days of the commencement of the Companies (Amendment) Act, 2006, shall make an
266B. Allotment of Director Identification Number.- The Central Government shall, within one month from the receipt of the application under section 266A, allot a Director Identification Number to an applicant, in such manner as may be prescribed. 266C. Prohibition to obtain more than one Director Identification Number. No individual, who had already been allotted a Director Identification Number under section 266B, shall apply, obtain or possess another Director Identification Number. 266D. Obligation of director to intimate Director Identification Number to concerned company or companies. Every existing director shall, within one month of the receipt of Director Identification Number from the Central Government, intimate his Director Identification Number to the company or all companies wherein he is a director. 266E. Obligation of company to inform Director Identification Number to Registrar.- or section 266C or section 266D or section 266E. (1) Every company shall, within one week of the receipt of intimation under section 266D, furnish the Director Identification Number of all its directors to the Registrar or any other officer or authority as may be specified by the Central Government. 266F. Obligation to indicate Director Identification Number. - Every person or company, while furnishing any return, information or particulars as are required to be furnished under this Act, shall quote the Director Identification Number in such return, information or particulars in case such return, information or particulars relate to the director or contain any reference of the director. 266G. Penalty for contravention of provisions of section 266A or section 266C or section 266D or section 266E. If any individual or director, referred to in section 266A or section 266C or section 266D or a company referred to in section 266E, contravenes any of the provisions of those sections shall be punishable with fine which may extend to five thousand rupees and where the contravention is a continuing one, with a further fine which may extend to five hundred rupees for every day after the first during which the contravention continues. Explanation. For the purposes of sections 266A, 266B, 266C, 266D, 266E and 266F, the Director Identification Number means an identification number which the Central Government may allot to any individual, intending to be appointed as director or to any existing directors of a company, for the purpose of his identification as such.
INSERTION OF NEW SECTIONS 610B, 610C, 610D AND 610E

After section 610A of the principal Act, the following sections shall be inserted, namely: 610B. Provisions relating to filing of applications, documents, inspection, etc., through electronic form. Notwithstanding anything contained in this Act, and without prejudice to the provisions contained in section 6 of the Information Technology Act, 2000, the Central Government may, by notification in the Official Gazette, make rules so as to require from such date as may be specified in the rules, that Such applications, balance-sheet, prospectus, return, declaration, memorandum of association, articles of association, particulars of charges, or any other particulars or document as may be required to be filed or delivered under this Act or rules made there under, shall be filed through the electronic form and authenticated in such manner as may be specified in the rules shall be made electronically: 610C. Power to modify Act in relation to electronic records (including the manner and form in which electronic records shall be filed) 610D. Providing of value added services through electronic form. The Central Government may provide such value added services through the electronic form and levy such fees as may be prescribed. 610E. Application of provision of Act 21 of 2000. All the provisions of the Information Technology Act, 2000 relating to the electronic records (including the manner and format in which the electronic records shall be filed), in so far as they are not inconsistent with this Act, shall apply, or in relation, to the records in electronic form under section 610B. 292A. Audit Committee Ins. by 53 of 2000, sec. 140 (w.e.f. 13-12-2000) Every public company having paid-up capital of not less than five crores of rupees shall constitute a committee of the Board knows as Audit Committee which shall consist of not less than three directors and such number of other directors as the Board may determine of which two thirds of the total number of members shall be directors, other than managing or whole-time directors. Analysis of the Study: There is a need for individual identity of person(s) intending to be directors of companies to be established. Implementation of comprehensive e-governance may enable public, corporate entities to access online corporate information, at any time anywhere. If the Board does not accept the recommendations of the Audit Committee, it shall record the reasons there for and communicate such reasons to the shareholders. The chairman of the Audit Committee shall attend the annual general meetings of the company to provide
any clarification on matters relating to audit. If a default is made in complying with the provisions of this section, the company, and every officer who is in default, shall be punishable with imprisonment for a term which may extend to one year, or with fine which may extend to fifty thousand rupees, or with both.
CONCLUSION
The basic reason of flaws to any law is due to lack of subordination of individual interest to the group interest. No doubt board should be independent with individual identity. In this context people should remember HRD policy Any person shall not consider as good only that which pleases him, but treat as beneficial to him whatever caused happiness to all people. So the span of executive control should be as follows: (from K.A.S.1.15, 47-50) He should appoint a top team consisting of twelve members say the followers of Manu. Sixteen say the followers of Brihaspathi. Twenty say the followers of Usanaas. According to need and capacity says Kautilya. Everybody should develop ethical values such as positive thinking, maintaining sound human relations, self restraint, transparency and honesty, and respect for law etc.
REFERENCES
Business Ethics by C.S.V. Murthy. Collins. DW.,G. Gong and H li(2007) Corporate Governance and Backdating of executive stock options. Harvard Business Review,76 136-148. Corporate Governance by Fernando. Economic Times Dec 24th 2009 p1. Human Resource Management By P.Subba Rao. India Today January 26, 2009, p43. Manoj K Singh and Daizy Chawla. Organizational Behaviour by Ashwattapa. The Hindu. Times of India.
Website
www.singhassociates.in. www.Google.com.
Value Based Decision: From Ancient Text to Present Context

Manish Shrivastava, Neelima Shrivastava1 and Vijay Kumar Vyas
1
Arya College of Engineering and IT, Jaipur BhartiyaVidya Bhavan Vidyashram, Jaipur
E-mail: manish1712@rediffmail.com
India has spent more than 51000 years since Shri Krishna taught Geeta still every passing year and new medium finds Geeta and our two great epics - The Ramayan and The Mahabharat coming alive and proving their relevance in Managing the modern business word through Vedic/vedantic management. Which are not only indigenous, but also holistic. Concept of Dharma, Yoga, Holism etc. are now considered basic to a successful management. According to vedic management the king/administrator has to be a leader and through his decision influence the thinking of his time. Leadership is a critical factor in determining the setup, healthy atmosphere and success of an organization. A leader has to communicate through his actions rather than words to his subordinates. He must have the strength to discriminate between the right and wrong, the zeal and perseverance to keep working towards the desired goals. Very often, real life does not provide with black & white options. There are a lot of gray zones also - Pairs of alternatives both of which are undesirable or sinful. What to do in such situation?
Value Based Decision: From Ancient Text to Present Context 489
In a well known Mahabharata verse, Duryodhana says that he knows what is Dharma, but he can not proceed with its practice. He knows what is Adharma, but he cant refrain from perpetuating it. Training the will to practice what intellect knows to be right, is a great task both for the individual as well as the Society. A kind of persuasive mechanism is required here, which can be termed as value based decision making.
WHAT IS VALUE BASED DECISION?

Value based decisions is made up of two words Value & decision making. Oxford dictionary described the word value as a standard of behavior. A value is a willingness on the part of the practitioner, to give up something material, in exchange for an ethereal possession, a sense of satisfaction & fulfilment. Whereas the word decision making is concerned It is study of identifying & choosing alternatives based on the values & preferences of the decision maker. Here it is worth to mention that value based decision making depends a lot on Context. In some cases, it is probably more important to tell the truth. In others, it is probably more important to prevent harm. A number of factors make up the context which includes time & place, the type and nature of the relationship involved, other peoples reasonable expectations , and the relevant history of situation.
RELEVANCE OF RAMAYAN & MAHABHARAT IN PRESENT CONTEXT

The purpose of two great epics - Ramayan & Mahabharat is to encourage the public to practice these values, presented in the first place by philosophical theory. The great characters of these epics are presented as role model to the society. Their stories, the manner in which they meet and overcome their moral dilemmas, provide examples for common man as well as administrators/leaders to build on. As Shri Krishna says in the Geeta Yad yat acharatishreshthas tat tad eva itaro jana. Sa yat pramaanam kurute lokastadanuvarta te. It means - whatever a great man does is followed by others; people go by the example he sets up. The idea is that public instructions can be better achieved through living examples than dry theories. Ramayan teaches compassion and forgiveness. Consistency and equanimity are hallmark of characters which create trust with
the followers. In present context of management Ramayan emphasis on the important principle of team work. Ram applied the same in search of Sita and became successful. In an organization one must be treated affectionately which Ram did when he met Hanuman and Vibhishan etc. Management Principles like decision making, recognition, time management and the art of communication alligred worth instance in the epic. It describes how a leader behave himself at all times, facing circumstances with calmness, raise to occurance to lead people independent of his own personal calamities and limits. Mahabharata is considered as mother of all Indian tales and mother of all Indian classical literature. It is said that what is not in Mahabharata is not in Bharat. It is a beautiful bouquet of ideologies written around 3000 B.C. It has mind boggling revelations on different field of human knowledge, but the most important is management lessons. Which proved their relevancy with every passing year. It is beyond the scope of this paper to discuss the whole epic of Mahabharata. So our endeavour is to concentrate on the background and the important management principles and decisions which became the WINNING MANTRA for Pandavas. If we precisely do the analysis we find: Table 1
Kauravas In power for 13 years Duryodhan was a benevolent king and possesed kingdom of Hastinapur as well as Indraprastha. Karna went on nationwide conquering on behalf of Duryodhana and were National Sovereigns. Had 11 Akshoni Sena. Duryodhan was completely focused on the war. He had usurped a kingdom and meant to keep it by any means whether foul or fair. Pandavas Exiled for 13 years No Kingdom Main strength both in terms of political and financial power depends on their friends & relatives. Had only 7 Akshoni Sena Pandavas were humiliated, their wife insulted and kingdom taken, still wanted to avoid war in exchange of five villages.
Here the question arises that inspite of all the unfavourable conditions, how did the Pandavas win ? What were the decisions and principles which converted the failure into success ?
WINNING MANTRA FROM MAHABHARATA

The sum up of the success of pandavas is sum and substance of the Bhagvad Geeta - Karmanyevadhikaraste. Your right is to perform your duty. Success is always the result of hard-work, careful planning and such mundane efforts. These efforts, in the present context of management can be put into different heads and winning mantras. Table 2
Management Topic Preparation Present Management Mantras Turn your weakness into your strength Make powerful allies and develop Harmonious relationship Ancient Application When Pandavas were in exile they turned their attention to improve their weakness likeacquiring 'divyastaras', enhancing strength, acquiring teaching from various rishis etc. Kauravas had greatest empire but not powerful allies except from old relations from far of places like Gandhar, Sindhu, Kambodia etc. Pandavas in spite of having no wealth had powerful allies all over the India through their marraiges like Panchala, Magadh, Chedi, Kasi, Matsya, Rakshasas, Nagas etc. Kauravas had centralized leadership. They had one head of army at a time i.e. 1 supreme authority for 11 Akshoni Sena. Pandavas had decentralized leadership. They had 7 commanders for 7 division (1 men command-1 Akshoni each) + one commander and chief (Dhrashtadhuman) + One supreme commander (Arjun) + Arjuna's charioteer and counsellor (Krishna) In Kaurava's army everyone fought their individual wars. All the generals didn't go well with each other. Pandava's had one team one goal. They all were part of the decision making process. It was their common war.
Allies (Partnership, outsourcing, divert, merge acquire etc.)
Leadership
Share your responsibilities
Team spirit
Team work succeeds where individual effort fails
Cont...
Individual Motives and commitment
Right Manager
The roots
(i) Right team is made by selecting the right man for the right job. (ii) Individual interest should never exceed team interest. (iii) The best man for a job is not the one with the best capabilities, but one with the greatest commitment. (i) Knows enemies weakness and exploit when required. Takes calculated risk. (ii) Inspires, invigorates & counsels own team in moments of need. (i) Know ground realities (ii) Know different ideologies (iii) Share A team is unbalanced without women; for the masculine traits of aggression and dominance can be balanced by the famanine traits of harmony and sustenance.
Except Duryodhan Kaurava's army was fighting only because they were bond by the throne. Their individual motives were different, predecided and didn't go with team agenda. Pandavas had common goal but individual had their individual key targets. Their own agenda became one with team's agenda. All the warriors were committed for their army. Pandavas had Krishna with them - The greatest crisis manager. Yudhisthira - known as low key strategist.
Women Empowerment
Pandavas faced ground realities like exile, poverty, vanvas. Were exposed to rough & tough life. Association with various class of the society. Sense of sharing and brotherhood. Kaurava's had patriarchal system. No women in decision making i.e. Gandhari neglected. Pandava's had matriarchal system. Kunti-the supreme authority. Dropadi-Always accompanied and played a big role in decision making.
CONCLUSION
Karmanyevadhikaraste ma phaleshu kadachana (Bhagvad Gita;verse 47 chapter 2) is the most famous and least understood shloka. Gitas law of action indicates that the will to work is inherent in human being. It is not possible to restrain a workaholic nor is it possible to motivate a lazy employee to work more for a considerable duration.
Value based decisions by leaders creates a win-win scenario in which the employees enjoy working for the organization which results in manifold increase productivity. Quality of life improve since it is independent of the material success. It is a great asset as it opens up the possibility of merging the spiritual pursuit and professional pursuit. Our ancient text are never ending source of guidance ,wisdom and knowledge. This paper is merely a glimpse of that knowledge. It is deep like ocean ,the one who dives, will get the pearl. What we need actually today as Indian is to rise up and show willingness to learn from the blunders of the past and be prepared to take advantage of our value oriented ancient knowledge and ancient tools available in our own heritage.
BIBLIOGRAPHY
Vivekananda Kendra Patrika (Feb. 05, July 05, Vol. 34, 67 issue). 3D-IBA Journal of Management and Leadership - Vol. 1, July-Dec., 2009. www.google.com. Vedanta in Management - Raja Subramaniyam.
Narcissistic Leaders: The Incredible Pros, the Inevitable Cons

Sanghamitra Das
Raj Kumar Goel Institute of Technology for Women, Ghaziabad
Narcissist leaders abound in a corporate boardroom. Narcissist leaders thrive in grandeur and flights of fantasy. They believe themselves to be infallible, omniscient and omnipotent. Narcissisma personality trait encompassing grandiosity, arrogance, self-absorption, entitlement, fragile self-esteem, and hostilityis an attribute of many powerful leaders. Narcissistic leaders have grandiose belief systems and leadership styles, and are generally motivated by their needs for power and admiration rather than empathetic concern for the constituents and institutions they lead. However, narcissists also possess the charisma and grand vision that are vital to effective leadership. We review and critically assess the theoretical and research literature on narcissistic leaders in order to understand the potential positive and negative consequences of their leadership, the trajectories of their leadership, and the relationship of narcissism to established models of leadership. We conclude that the study of narcissistic leaders is inherently limited in scope, and propose a new definition of narcissistic leadership in order to reframe the discussion and better incorporate the topic of narcissism into the field of leadership studies. Theres something new and daring about the CEOs who are transforming todays industries. Just compare them with the executives who ran large companies
Narcissistic Leaders: The Incredible Pros, the Inevitable Cons 495
in the 1950s through the 1980s. Those executives shunned the press and had their comments carefully crafted by corporate PR departments. But todays CEOs superstars such as Bill Gates, Andy Grove, Steve Jobs, Jeff Bezos, and Jack Welch hire their own publicists, write books, grant spontaneous interviews, and actively promote their personal phi-losophies. Their faces adorn the covers of magazines like Business Week, Time and The Economist. Whats more, the worlds business personalities are increasingly seen as the makers and shapers of our public and personal agendas. This article tries to demystify the persona that makes up the narcissist leader. The article also looks at a few underlying strengths of the narcissistic bosses. Managing narcissistic bosses is an art per se, as it is a daunting task of managing the narcissistic bosses. The CEO of today has a patina of audacity, pompousness and are gallant. They are suave, stylish, urbane, dashing, vain-glorious and glib talkers to fault. They have a surrealistic larger-than-life-persona. History stands testimony to the fact that societal discourses at some point or other were shaped, sculpted and redefined by stalwarts such as Napoleon Bonaparte, Mahatma Gandhi and Roosevelt. Business, by virtue of being a vehicle of greater social change had its fair share of narcissistic leaders like Andrew Carneige, Edison and Ford who capitalized on emerging technologies and affected a major turnaround in American industries. The situation that existed five decades ago holds true today also.
CORPORATE NARCISSISM A FERTILE GROUND OF TOXIC ENVIRONMENT

The workplace, led by narcissists, will always slide dangerously into a veritable toxic environment. Narcissistic leaders have a strong desire to exercise control and power over others. In exercising such a brute control, they may resort to surreptitious methods and machinations. If the narcissist boss feels piqued or offended in any conceivable way at the hands of their co-dependents or threatened by the competencies of the managers, they may display their infamous narcissistic rage and aggression. Narcissistic boss may resort to verbal abuses, deliberate smearing campaign, sexual harassment, hoarding information, employment of silent treatment for settling scores with those who dare to cut him or her down to size.
DEMYSTIFYING PERSONA OF A NARCISSISTIC LEADER

Welcome to the world of narcissist leader. Recognizing the traits of narcissistic leader is quite easy. Narcissistic leaders are way too cold, foxy, understated, refined, selfish, cunning, vain and delirious. They have skills that can match any
thespian. They are cruelly ruthless, too charged and singularly devoid of an iota of empathetic quality.
NARCISSIST LEADERS THRIVE ON A SENSE OF GRANDEUR

Narcissistic leaders have a strong penchant for setting goals that are far removed from reality. Such leaders have a flight of fancy and are deliriously obsessed with being unique and achieving spectacular things. Their success, genius, achievements, bulging financial clout, prestige in the society will be hopelessly not in commensurate with the false self they project to the world, to close yawing grandiosity gap, narcissist leaders may resort to dubious means such as committing fraud or financial impropriety.
NARCISSIST LEADERS BRAG POMPOUSLY AND INCESSANTLY

The narcissistic leaders have a strong penchant for bragging about their escapades, prowess, accomplishments, successes, genius, wealth and conquests. Their talks will be laced with I, Me, and myself. They dub themselves as extraordinarily brilliant, creative genius, too brainy, obscenely rich, or even coy and humble but always in overtly exaggerated manner.
NARCISSIST LEADER SINGULARLY LACKS EMPATHY

Narcissistic leader expects others to be empathetic without being one in return. Devoid of empathy, narcissistic leaders fare badly in interpersonal relations. Companies may conduct 360-degree appraisal to test their leadership styles, but narcissistic leaders are simply not going to change. They lull themselves into a false belief that as long as they deliver and be successful, they dont need training. Narcissist leaders know how to wrap people around their sturdy fingers, exploit blatantly and dump them pathetically once their utility is over. No doubt, narcissist leaders have an aura of regality about them, but they are easily reviled at many quarters.
DISDAIN FOR MENTORING

Narcissist leaders baulk at the idea of mentoring. Narcissist leaders scarcely mentor others and even if they mentor, they expect their protges to be watered-down version of their personality.
NARCISSISTS HAVE SUPERCILIOUS BODY LANGUAGE

Narcissists love social interactions and indulge in badinage. They will zealously protect their personal space. They will mix around with people, fake munificence and beneficence. In the same breath, they want to be a mute spectator or t he loner. Their physical posture, gait and swagger will betray an air of supremacy, I know it all attitude, certain mystery, imperviousness and arrogance. Narcissist leaders can maintain direct eye contact, but avoid physical proximity.
NARCISSISTS HAVE TOUGH TIME HOLDING ON TO SATISFYING RELATIONSHIPS

Narcissist leaders will appear courteous and graceful only in the presence of narcissist supply. They will have tough time holding on to this cursory politeness for long.
NARCISSISTS TOMTOM ABOUT THEIR INTELLECTUAL PROWESS

Narcissist leaders love to brag about their cerebral prowess or intellectual superiority. They would never admit to their personal or professional failures. They do not realize that it is possible for anyone to break through the veil and veneer of their self-professed superiority, prowess, accomplishments, power, genius and affluence
NARCISSISTS FEEL SHAME MORE THAN GUILT

Narcissist leaders behavior may seem to be primed on an amazing level of strength. But in reality, it is anything but true. The behavior that rests on a rather tenuous foundation is due to the fear of being caught, exposed or failure staring in the face.
NARCISSIST LEADERS THINK THEMSELVES AS GENIUS EXTRAORDINAIRE

Narcissist leaders believe in turning the mirror inwards and doing a bit of soulsearching as a more effective way of gaining knowledge through a systematic course work based on conventional curriculum. Suffused with grandiose feeling, they truly believe that their actions are destined to work wonders for everybody and everyone. Narcissist haughtily look down upon advice or suggestions offered by peers or subordinates. They think people just dont have the brains to suggest or advice them.
NARCISSIST LEADERS LACK PSYCHOLOGICAL AWARENESS

A narcissist leader reacts to punishment with a heady mixture of emotions. The narcissist is hurt, disappointed, resentful, bitter, and furious all in the same breath. They are pretty convinced that other people are envious of their success stories. The truth is that a narcissist cannot tolerate the success of others easily. They wreck havoc against peers, colleagues or underlings who they perceive to be inconvenient for them. On the Flip Side, Narcissist Leaders Can be Extremely Useful to Organizations Freud had studied a multitude of personality types, which he winnowed down to three for the purpose of understanding them better. The major three personalities include among other things erotic, obsessive and narcissistic. An erotic personality cared for warmth, love and care and affection. Such personalities loved others and craved for love from others. Such people are hopelessly attached to people whom they fear will ditch or dump them conveniently. Teacher, nurses and social workers can be very well classified as erotic personalities. Erotic people as managers end up becoming very caring and understanding individuals. They steer of troubles and make others dependant on them Obsessives, in a sharp contrast are inner-directed, self-dependant, diligent and great organizers. They can morph into excellent administrators. They are excellent listeners, have better problem-solving skills and constantly scout around for gainful opportunities. Obsessives are underpinned by strong conscience and they work towards continuous improvement at the workplace. Best of the obsessives are good communicators, good at cost cutting measures and effectively work within the budget. Narcissists have a fiercely strong independent streak and are implacable. They are out of the box innovators. Productive narcissists are top-cheese in their chosen endeavor or demolish established assumptions. Erotic types dont have it in them to be good managers. They constantly seek approval from others. Obsessives have what it takes to be good administrators. But they are too cautious and hypercritical, which are the major impediments. Narcissists have it in them to metamorphose into great leaders. They have and can weave an exhilarating vision. They have charisma to attract followers by hordes.
PRODUCTIVE NARCISSISTS ATTRACT FOLLOWERS BY DROVES

Narcissist leaders firmly believe that words and powerful speeches can inspire and influence people. Their strong, spell-binding speeches can transform them
into charismatic personalities. Anyone who has seen or interacted with narcissist leaders from close quarters can vouchsafe for aura, mystique and their ability to cast a spell on others.
AVOID THE BOOBY TRAPS: DEALING WITH NARCISSIST LEADERS

Managing narcissist can be equally tricky and challenging. Maccoby, in his perspicacity as a career counselor spanning many decades, suggests three ways to deal with narcissists( more so, the productive one).
NARCISSISTS SHOULD FIND AN ACOLYTE

Narcissists tend to form close ties with persons who may be their trusted acolytes. The acolytes need to get that nodding wink from their leader before they can execute their mandates. For instance, Bill Gates was able to look at the future with confidence as his Chief Operating Officer, Steve Ballmer, a tough-to-crack obsessive, keeps the show on.
MANAGING NARCISSIST BOSSES AN ART PER SE

It is difficult to deal with narcissistic bosses. Subordinates would do well to remember that the company is betting big time on bosss vision and not theirs. So, survival should become the key.
EMPATHIZE WITH THE BOSS

Subordinates would do well to remember that empathizing with a narcissist boss can iron out the strains in relationship. But one should not make the mistake of expecting the boss to return the compliment. A subordinate can praise the bosss accomplishments frequently in a bid to boost his self-esteem. GIVE THE BOSS THE TIPS. DONT HANKER AFTER CREDIT Subordinates should ensure that they here their bosses out completely before they present their own views. Subordinate should not be surprised, if the boss makes unreasonable demands on their time.
CONCLUSION
In this age where innovation has become a leitmotif for organizations, having a narcissistic leader on board has become a compelling necessity. Company looks
to leaders who can create a brilliant future. Narcissistic leaders fit the bill. But many a times, narcissistic leaders have brought only destruction and catastrophe in companies they work for. Companies that have such bosses can zoom into the big league, if the leaders have a good idea of their limitations and work accordingly. For other organizations they will be in for the worst. The employees will have to look skywards and look on orison.
REFERENCES
Is the narcissistic personality obsessed with power and control? www.winningteams.com/narcissisticpersonality.html. Narcissism in the Boardroom- By Dr. Sam Vaknin-http:// samvak.tripod.com/ corporatenarcissism.html. Narcissist Leaders by NR Aravamudhan HRM Review. Strong Men and Political Theatres- The Being There Syndrome-Sam Vaknin, htpp:// www.globalpolitician.com.
Brand Valuation A Contemporary Accounting Practices

Sumanta Dutta and Raj Kumar DasGupta1
Dinabandhu Andrews Institute of Technology and Management, Garia, Kolkata 1 NSHM Business School, Kolkata
E-mail: sumantadu@gmail.com; rajkumar.dasgupta@gmail.com
Keywords: Brand, Brand Valuation, Intangible Assets, Brand Equity JEL Classifications: M00 M30 M41 If this business were to be split up, I would be glad to take the brands, trademarks and goodwill and you have all bricks and mortar .... and I would far better than you. John Stuart, former Chairman of Quaker Oats Ltd. The word brand is derived from the Old Norse word brandr, meaning burn, and it was by this method that early man marked his livestock. From the branding of his livestock he moved on to branding his works.Traditionally, a brand referred to a burn mark, reflecting the stamp of ownership. In commercial usage, the term is often used interchangeably with a trademark. The American Marketing Association defines a brand as a name, term, sign, symbol, or design, or a combination of them intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. The
Accounting Standards Committee (ASC) recognized that a trademark was just a subset of the far broader concept of a brand. In Exposure Draft 52, the ASC pointed out that the term brand was generally used with a meaning significantly different from and wider than a trade name.
OBJECTIVE OF THE STUDY

The objectives of the present study are To identify how brand valuation made in the past and also to assess major challenges and the necessity of disclosure of the valued brand in the balance sheet as an intangible item/asset. To analyze critically the existing methods of band valuation in order to choose one, as the best approach among all of them.
The Origin of Brand Valuation

Accounting for brand valuation is a relatively recent development in financial reporting. The Issue of brands first became prominence in financial accounting at the time. When Nestle, takeover or Rowritee in 1988. Later it was followed by several other companies like Guinness, Reckitt & Coleman united Biscuits etc. The directors of Rowntree tried to take defensive action against Nestly by writing to their shareholders to explain that many valuable brands developed by the company had not been incorporated in the Balance Sheet. This unsuccessful defense highlighted the importance that a company should attach to its brands. In the middle of 1980s, Interbrand is a consultancy organization, conducted the first ever brand valuation service for Rank Hovis Mc. Dougall (RHM) company. Recognizing the importance of reflecting the value of brands in two large companies in UK Rank.
The Need for Brand Valuation

Gordon and Pike (1994) had suggested 12 propositions, which cover all the advantages of brand valuation. They are as follows: 1. The value of the brand can act as a performance measure of the brand manager. 2. Having an annual value assessment of the brand will tend to reduce any ambiguity in the objective of brand management.
Brand Valuation A Contemporary Accounting Practices 503
3. Brand valuation will help in increased participation of the brand manager in budget setting. 4. Annual assessment of the brands value may also result in better coordination of different activities related to brand management. 5. If the brand manager is held accountable for the brands value, it will act as a motivational force to him for improving the brands value. 6. The inclusion of accounting in brand valuation will helps to produce accurate and robust plan for the brand by the brand managers. 7. Brand performance will be examined more carefully as a result of brand valuation. 8. Strategic brand management process will be enhanced because of this annual valuation.
The Methods for Brand Valuation

There are several methods of brand valuation. Cravences & Guilding, 1999 however classified brand based on existing uses, which are: 1. 2. 3. 4. Cost Based Approaches Market Based Approaches Income Based Approaches Formulary Approaches
Other than the above mentioned methods, there exist two other approaches: 5. Consumer Based Approaches 6. Special Situation Approaches
Cost Based Approaches
(a) Historical Cost Model: According to this approach, the value of a brand is determined by taking into account the actual expenses in curred in the creation, maintenance and growth of corporate brands. The value of a brand is computed as follows: Brand value = BDC + BMDC + BPC Where, BDC = Brand Development Cost BMDC = Brand Marketing and Distribution Cost BPC = Brand Promotion Costs including advertising and other costs The basis of this approach is that it aggregates all the historical marketing costs as the value (Keller 1998). The real difficulty here is deermining the
correct classification as to what constitutes a marketing cost and what does not. The only advantage of the approach is that the brand manager knows the actual amount that has been spent. (b) Replacement Cost Model : Under this approach, the value of a brand is based on the estimated costs and expenses incurred for the replacement / recreation of existing brand. It is the opportunity costs of investments made for the replacement of the brand. Brand Value = Replacement Brand Cost This is one of the most difficult valuation bases to calculate. Aaker (1991) proposes that the cost of launching a new brand is divided by its probability of success. (c) Brand Based on Customer Preference : Aaker (1991) proposed that the value of the brand can be calculated by observing the increase in awareness and comparing it to the corresponding increase in the market share. Aaker (1991) identified the problem as being how much of the increased market share is attributable to the brands awareness increase and how much to other factors. A further issue is that one would not expect a linear function between awareness and market share.
Use Approaches
(a) Royalty Relief Method: The Royalty Relief method is the most popular in practice. It is premised on the royalty that a company would have to pay for the use of the trademark if they had to license it (Aaker 1991). The methodology is as follows : 1. Determine the underlining base for the calculation (percentage of turnover, net sales or another base, or number of units. 2. Determine the appropriate royalty rate 3. Determine a growth rate, expected life and discount rate for the brand This appears to be very easy. However, the real skill is determining what the appropriate royalty rate is. Two rules of thumb have emerged, the 25% rule and the 5% rule. The 25% rule proposes that the royalty should be 25% of the net profit. The 5% rule proposes that the royalty should be 5% of turnover. Both these rules have their base in the pharmaceutical industry. (b) Price Premium: The premise of the price premium approach is that a branded product should sell for a premium over a generic product (Aaker,
1991). The present value of the brand can be ascertained by discounting the future sales premium. The major advantage of this approach is that it is transparent and easy to understand. The inter relationship between brand equity and price is easily explained. The disadvantages are where a branded product does not command a price premium, the benefit arises on the cost and market share dimensions. (c) Price Premium at Indifference: This method tries to compare the original prices of brands at the point where consumers are indifferent between the two. Say there are two brands X and Y with prices Px and Py. And lets assume that at a price Px consumers consuming X will shift from X to Y. Then the brand equity of X is given by : BE x = (Px/Py 1)* 100
Consumer Based
(a) Brand Knowledge Method: In this method the brand knowledge of a consumer is expressed as a sum of brand image and brand awareness (each of which is divided into several sub-parameters). A consumer ranks each parameter on a 1-10 scale. A weighted sum of the parameters gives the measure of brand equity. (b) Attribute Oriented Approach: In the attribute oriented approach the consumers list all the attributes of a particular brand. Then a rating for each of these attributes on a 0-10 scale (say) is obtained. Then the scores are summed up. The sum will give the equity of the brand on the defined scale. (c) Blind Test : In case of a blind test, we draw a distinction between the subjective and objective attributes of a brand. Brand equity in the blind test is defined as the difference between the overall performance of a brand in objective terms and the sum of the scores it obtains on subjective basis ie., by any respondent who participates in the blind test. The problem with this method lies in identification of the subjective and objective parameters. The question, which comes up, is regarding the selection of only subjective attributes in calculation.
Formulary Approaches
(a) Interbrand Approach: The interbrand approach is a variation on the Brand Earnings approach. Interbrand determines the earnings from the brand and capitalizes them after making suitable adjustments (Keller, 1998).
Interbrand takes the forecast profit and deducts a capital charge in order to determine the economic profit (EVA). Interbrand then attempts to determine the brands earnings by using the brand index. The brand index is based on seven factors. The factors as well as their weights are : 1. Market (10%) Whether the market is stable, growing and has strong barries to entry. 2. Stability (15%) Brands that have been established for a long time that constantly command customer loyalty. 3. Leadership (25%) A brand that leads the sector that in competes in 4. Trend (10%) Gives an indication where the brand is moving 5. Support (10%) The support that the brand has received 6. Internationalization / Geography (25%) The strength of the brand in the international arena 7. Protection (5%) The ability of the company to protect the brand The advantages of this approach is that it is widely accepted and it takes all aspects of branding into account; by using the economic profit figure all additional costs and all marketing spend have been accounted for. The international component should not be applied over the local brand earnings. If a company wants to bring the international aspect into play it must include potential international profits. Aaker reveals that .... the Interbrand system does not consider the potential of the brand to support extensions into other product classes. Brand support may be ineffective; spending money on advertising does not necessarily indicate effective brand building. Trademark protection, although necessary, does not of itself create brand value. (b) Financial World Method: The financial world magazine method utilizes the interbrand Brand Strength multiplier or brand index, comprising the same seven factors and weightings. The premium profit attributable to the brand is calculated differently, however; this premium is determined by estimating the operating profit attributable to a brand, and then deducting from this the earnings of a comparable unbranded product. This latter value could be determined, for example, by assuming that a generic version of the product would generate a 5% net return on capital employed (Keller, 1998). The resulting premium profit is adjusted for taxes and multiplied by the brand strength multiplier. (c) Brand Equity Ten: Aakers Brand Equity Ten utilizes five categories of measures to assess brand equity (Aaker, 1996) :
Loyalty Measures
1. Price premium 2. Customer satisfaction or loyalty Perceived Quality or Leadership Measures 3. Perceived quality 4. Leadership or popularity Other customer-oriented associations or differentiation measures 5. Perceived value 6. Brand personality 7. Organizational associations Awareness measures 8. Brand awareness Market behaviour measures 9. Market share 10. Market price and distribution coverage These measures represent the customer loyalty dimension of brand equity. They can be utilized to develop a brand equity measurement instrument, depending on the type of product or market, and the purpose of the instrument.
The India Scenario
The ICAI makes a small mention as to how the intangible assets should be treated in accounts.AS per AS-26 of ICAI an Intangible asset is an identifiable non monetary asset without physical substance held for use in the production & supplying of goods or services for rentals to others or for administrative purpose. Therefore, the main features of intangible assets are 1. Identifiable and separable fromA other assets 2. Non monetary assets which means the value to be received against the assets is not fixed by contract or otherwise 3. Physical substance means it has no physical substance However, ICAI pointed out the following recognition criteria for intangible assets like brand 1. It must have all the features of an assets 2. Probable future economic benefits from such intangible should be assessed 3. The cost of intangible assets can be measured reliably.
Hence, standard not adequately pointed out the measurement of home grown brand and how it is to be shown in the Balance Sheet.
CONCLUSION
Based on the above analysis it can be said that any financial assets which requires a valuation and disclosure in the accounting statement needs a regulatory framework. The matter relating to brand valuation is very important in this regard. The most of the above valuation have come from academicians in the field of marketing or accounting. Contemporary literature as well as accounting bodies all over the world not adequately throws some light for the effective measurement of such a valuable intangible assets and inclusion it in the Balance Sheet. However, brands are explicitly recognized, as part of purchased goodwill, by the ICAI of India. Other countries are also following different methods to identify the potential value of brand. It emerges from the above analysis that unlike goodwill brand accounting are definitely to take the world of accounting by storm in the near future.
Financing of Research and Development

Shalini Aggarwal
A-1/102B, Keshav Puram, New Delhi
Research and development expenditures are capital expenditures involving discounting cash flow such that the net present value is positive. The research and development expenditure leading to the implementation of new technology is the call premium with the present value of the final project being the value of the call option. The R&D cost is the premium paid to acquire the future investment cash flow of the project resulting from the R&D activities. Any industry that engages in R&D expenditures may need to consider abandonment values and decisions. Current R&D projects lead to future and expansive R&D projects. A current or static negative net present value need not lead management to eliminate the R&D project from its consideration. It is possible to reconsider the project at a later date when initial cash outlays of projects change, costs of capital change, or estimated future cash flows are different. In traditional investment analysis, a project or new investment should be accepted only if the returns on the project exceed the hurdle rate- the cost of capital that leads to a positive net present value. Several additional aspects of real options are embedded in capital budgeting projects. The first is the option to delay a project, especially when the firm has exclusive rights to the project. The second option is to expand a project to cover new products or markets some time in future.
Each firm has a pool of resources, composed of net income, depreciation and new debt issues, and this pool is reduced by dividend payments, investment in capital projects and expenditures for research and development activities. Miller and Modigiliani (1961) put forth the perfect market hypothesis in regard to financial decisions, which holds that dividends are not influenced by investment decisions. There are no interdependencies between financial decisions in a perfect markets environment, except that new debt is issued to finance R& D, dividends and investments. The imperfect markets hypothesis concerning financial decisions holds financial decisions are not independent and that simultaneous equations must be used to efficiently estimate the equations. The manager of a manufacturing firm faces budget constraint in the form of balancing of investment, dividend and new capital financing. The manager may use available funds to undertake capitalized R& D activities (RDS) or new investments (IS), or to pay dividends (DS) or increase net working capital (CAK). The sources of funds are represented by net income, depreciation and new debt issues.
THE MODEL
This theory can be empirically tested with the help of following model. The model developed by Guerard Jr. (2005) employs investment, dividends, and new capital financing equations to describe the budget constraint facing the manager of a manufacturing firm: RDS + IS + CAK + DS = PK + DEP + FS + NEQ 1 where CAK = increase in net current assets NEQ = net new equity issues DE = debt-to-equity ratio INTE = average cost of interest expense DEPK = depreciation/capital stock RDL = last years R&D expenses/sales Size = 1/total assets PKL = last years profits/capital stock DIVL = last years dividends/sales PK = profits/capital stock D2sales = two year change in sales
Financing of Research and Development 511
IK DS IS FS
= investments/capital stock = dividends/sales = capital investments/sales = external funds issued/sales
RDS = R&D/Sales The following is a summary of hypothesized equation system: DS IS FS RDS = F(IS, RDS, CAK, FS, DIVL, PK) = F(DS, RDS, FS, CAK, PKL, D2sales) = F(IS, RDS, DS, PK, DEP, INTE, DE) = F(RDL, IS, DS, FS, PK)
Assuming linear relationship among the variables the above system of equations can be written as follows: DS IS = + 1 IS + 2 RDS + 3CAK + 4 FS + 5 DIVL + 6PK = + 1 DS + 2 RDS + 3 FS + 4 CAK + 5 PKL + 6 D2sales 2 3 4 5
FS = + 1 IS + 2 RDS + 3 DS + 4 PK + 5DEP + 6 INTE + 7 DE RDS = + 1 RDL + 2 IS + 3 DS + 4 FS + 5PK
The above system of equations has been estimated on the chemicals and pharmaceutical industry with the help of two stage least square method of estimation. The results obtained are tabulated in the next section of this study.
Sample
In this study, sample has been taken from chemicals and Pharmaceuticals industry. This industry has contributed significantly in the growth and development of Indian economy. Data has been collected from Prowess database of the center of monitoring the Indian economy (CMIE). The sample consists of all firms of this industry listed in BSE 100 Sensex.
RESULTS
Results are tabulated in Table I. Dividends paid are found to be positively related with new investments, increase in current assets, last year dividends and profits. However, they are found to be negatively related with research
and development activities and new debt issued. The relationship between Dividends paid and new investments increase in current assets, last year dividends and profits are found to be significant at 1 per cent level of significance. This implies that more the profits in chemical industry more dividends would be paid to investors. Results also indicate that money generated from new debt issues is been used for making new investments. This further means that profits of the company are not been used for further research and development activities. The table 1 shows that new investments are positively related with dividends, research and development activities, increase in current assets and new debt issued. However, a negative relation is found between new investments and last years dividend payments, last years profits and change in sales. The relationship between new investments with dividends paid, increase in current assets, last year dividends and profits are found to be significant at 1 per cent level of significance. This implies that in chemicals and pharmaceutical industry in India, new investments and research and development expenditures are separate entities. A new investment does not hamper or restricts research and development expenditures. Column 3 of table 1 shows that research and development activities are positively related to investments, dividends paid and last years research and development activities. However, R & D activities are negatively related with new debt issued and last years profits. The negative relationship between new debt issues and research and development expenditures is not found to be significant. This means in chemical industry, R & D activities are not financed by profits generated during the year. Results indicate that new debt issues are positively related with new investments, dividends, interest paid and debt equity ratio. This implies that all expenses like dividends, new investments, and increase in working capital expenditures may be financed by new debt issues. However, new debt issues are negatively related with R & D activities and depreciation. This implies industry can finance its new investment and can also pay dividends from the new debt issued. However, new debt is not being used for R & D activities. All the variables except RDS are found to be significant at 1% level of significance.
Table 1: Simultaneous Equation Model ( Research And Development) For Chemicals Industry
Dependent Variable C IS DS RDS CAK FS DIVL PKL D2Sales RDL DEPK INTE LEV AR(1) R-squared Adjusted Rsquared Durbin-Watson stat 0.2144 (124.73)** 0.9995 0.9995 2.3266 0.8378 (75.854)** 0.8138 0.8122 2.2808 -0.4838 (-26.8)** 0.4184 0.4136 2.1939 0.8386 0.8373 1.8627 -0.0039 (-10.31)** 0.00025 (19.97)** -0.0002 (-2.380)* 0.9969 (1405.4)** 0.00014 (3.639)** 0.00021 (15.13)** 119.21 (21.534)** 1.2576 (3.279)** 0.0797 (14.401)** 0.7274 (5.912)** -93.820 (-18.64)** -0.4388 (-9.097)** -2.73E-06 (-3.233)** 1.0169 (60.01)** -0.4706 (-7.63)** 4.52E-05 (10.03)** 0.0059 (4.32)** -0.0039 (-3.61)** 0.0222 (3.357)** -0.0110 (-0.95) DS IS 0.7574 (21.622)** RDS 0.0029 (5.40)** 0.0002 (0.793) 0.0069 (0.410) FS 0.0216 (3.176)** 0.0154 (5.746)** 6.0557 (29.29)** -0.0287 (-0.498)
CONCLUSION
Success of new age industries such as chemicals and pharmaceuticals industry depends heavily on inventions and innovations. However, it is very difficult to finance new technology or research as each and every source of funds (debt and equity) has their own limitation and advantage. The natural choice of firm manager to finance technology with debt because of its cost advantage would not be matched by an equal reluctance by management to employ more equity. This is because of the fact that shareholders do not want to share more returns earned with bondholders without a corresponding increase in risk level. This theory also finds support from this study. Results of this study show that in India profits or retained earnings are not been used for financing any kind of expenditure be it new investments or increase in current assets or research and development expenditure. It is clear from the results that all expenses are more or less been financed by new debt issues. Thus the financial structure of the firm in an industry depends not only on cost and availability of debt and equity but is being determined simultaneously with the real factors like technology and innovation.
BIBLIOGRAPHY Refrences
____________, 1959, The Cost of Capital in an Imperfect Market: A reply to Modigliani and Miller , American Economic Review 49, 639-654. Bradley, Michael. Gregg, Jarrell and E. Han Kim. 1984, On the Existence of an Optimal Capital Structure: Theory and Evidence , The Journal of Finance 39,857-878. Durand, David. 1952, Cost of Debt and Equity Funds for Business: Trends and Problems of Measurement, in Conference on Research in Business Finance. Harris, Milton and Arthur, Raviv. 1991, The Theory of Capital Structure , The Journal of Finance 46, 297-355. Kale, R. Jayant. Noe, H. Thomas and Gabriel, G. Ramirez. 1991, The Effect of Business Risk on Corporate Capital Structure: Theory and Evidence , The Journal of Finance 5, 1693-1715. Miller, Merton H. 1977, Debt and Taxes, Journal of Finance 32, pp261-275. Miller, Merton H. and Franco, Modigliani. 1966, Some Estimates of the Cost of Capital to Electric Utility Industry, American Economic Review LVI, pp 333391.
Modigliani,F.F. and M.H. Miller. 1958, The Cost of Capital, Corporation Finance and The Theory of Investment , American Economic Review 48, pp 261-297. Raghuram, G., Rajan, Luigi, Zingales. 1995, What Do We Know about Capital Structure? Some Evidence from International Data , The Journal of Finance 5,1421-1460. Titman, Sheridan and Robert, Wessels. 1988, The Determinants of Capital Structure Choice, The Journal of Finance 43, 1-19.
Books
Brigham E.F., and Gapenski L.C., 1996 Intermediate Financial Management, The Dryden Press. Buckley Adrian. 1996, Multinational Finance, Prentice Hall. Gujrati, Damodar, N., 2000, Basic Econometrics , Mc Graw Hill The International Edition, USA. Goyal, Shalini.2003,Cost of Capital and Capital Structure: A study of select Pharmaceutical firms in India Dissertation, University of Delhi. Guerard, John B. Jr.2005, Corporate Financial Policy and Research & Development Management, John Wiley & Sons,Inc. Herbst Anthony F.,1990, Capital Investing, Harper Business. Pandey, I. M., 1989, Fundamentals of Financial Management , Macmillion, New York. Seth, A. K., 2000, International Financial Management, New Delhi, Galgotia Publishing Company. Van Horne, James, C., 1968, Financial Management and Policy , Englewood Cliffs, Prentice Hall, Inc.
Private Equity Funding: Penetrating Indian Financing Market

Priya Kansal
Jaipuria Institute of Management
E-mail: priyagoel0211@gmail.com
Keywords: PE, Venture Capital, Challenges, Issues, Sector-wise Investment JEL Classification: G24, C82
INTRODUCTION
The India PE market has grown by leaps and bounds since its humble inception in the late 80s, becoming the second largest Asian PE capital recipient after Japan less than two decades later. Despite a relatively young age, the industry has already seen its fair share of ups & downs. Now, India has PE industry with USD 38385.6 Million invested across more than 2000 deals from 2000 till date. It is estimated that currently there are over 137 domestic and 135 foreign PE fund managers in India. Over the last three years, VC/PE investments were the equivalent of 33 percent to 72 percent of the total equity raised from primary markets.
WHAT IS PE?
PE is medium to long-term finance provided in return for an equity stake in
Private Equity Funding: Penetrating Indian Financing Market 517
potentially high growth unquoted companies. Some commentators use the term PE to refer only to the buy-out and buy-in investment sector. PE provides longterm, committed share capital, to help unquoted companies grow and succeed. Obtaining PE is very different from raising debt or a loan from a lender, such as a bank or a financial institution. PE is invested in exchange for a stake in a company and, as shareholders; the investors returns are dependent on the growth and profitability of the business. To avoid confusion, the term PE is used to describe the industry as a whole, encompassing both Venture Capital (the seed to expansion stages of investment) and Management Buy-Outs and Buy-Ins. PE is a broad term that refers to any type of equity investment in an asset in which the equity is not freely tradable on a public stock market. Categories of PE investment include leveraged buyout, venture capital, growth capital, angel investing, mezzanine capital and others.
Kautilya Shastri (2005) suggested that India is experiencing a second wave of interest in PE; the first was in the late 1990s. But unlike the late-1990s boom of flows to technology companies, money is heading into a broad range of sectors, reflecting the strong performance of the economy and should continue to gather strength. Prasad, Rao (2008) in his research article discussed that the Indian market is one of the most preferable market for worldwide investors now a days. Wells, Kathryn (2006) finds out the cause for the stock market crash in the Gulf earlier this year which provided a clear illustration of the adage that one mans meat is another mans poison.
SETTING THE STAGE PE IN INDIA

Phase I - Formation of TDICI (1980) and regional funds as GVFL & APIDC (early 90s) Phase II - Entry of Foreign Venture Capital funds between 1995-1999 Phase III - (2000 onwards). Emergence of India-centric VC firms Phase IV (current) Global VCs and PE firms actively investing in India. 150 Funds active in the last 3 years (Government, Overseas, Corporate, Domestic)
TRENDS IN PE INDUSTRY
It has been clearly seen by the table that form 2000 the PE industry is continuously growing at an average 54% per year. And like the all other industries it is also
affected by the world financial crises of 2007. PE Investors continued to be wary of coming out of the green room in Year 2009, instead preferring to keep waiting it out. As a result, PE investments, which experienced phenomenal growth in India up to the pre crisis period, saw the rot continue in 2009. Table 1
Year Value of Deals No. of Deals Av Deal Size Percentage Growth 2000 2001 2002 2003 1160 280 4.14 937 110 8.52 106 591 78 7.58 -11 470 56 8.39 10.8 2004 1650 71 2005 2200 146 2006 7500 299 2007 2008 2009 3824 232 16.48 -30.2 2010(Till july) 1989 64 31.07 -48
17129 10468 339 443 50.53 101.4 23.63 53.23
23.24 15.07 25.08 176.9 -35.2 66.46
Source: Compiled from Venture Capital Intelligence Database
KEY ISSUES
Despite these attractions, there are several constraints on PE firms operating in India. Ironically, although rising valuations have helped existing PE investors to earn high returns, they are now making it difficult to find new investments. This is because many Indian firms that are chased by PE funds are demanding a high valuation at the outset, making them less attractive to the funds. Another constraint is the strong attachment of many Indian entrepreneurs to their ventures, which makes them reluctant to sell their stakes and accept minority ownership even when it is clear that the ventures would be managed better by new owners. For this, the incidence of PE buy-outs has been much smaller in India than in any other developed countries. The relatively slow pace of reforms in Indias state sector is also a limiting factor. In many emerging markets, the privatization of state owned firms has offered rich opportunities for PE investors. In India, however, progress with privatization has been halting, providing far few opportunities for PE funds in this area.
OPPORTUNITIES The Credit Crunch

The financial crisis is causing many business owners to reconsider PE. There is a continued need for growth capital and with credit less available than it was, private investment offers a means to fill the gap.
Succession Issues
As business culture changes, some owners choose to sell to a third party rather than pass on their business to family members. The need for scale Businesses are coming together to achieve scale in the market and capital is required to finance these deals.
Rationalization
Conglomerates are selling non-core units, which provide deal opportunities for PE firms.
HOT SECTORS
The study indicates that growth-stage infrastructure ventures are the most popular investment targets for General and Investors alike, as Indias infrastructure is not yet ready to support the boom in the national economy. The power sector tells a similar story with supply presently failing to fully keep up with demand. As a consequence, huge growth potential exists in derivative industries such as construction and engineering, steel and cement. The rise of the Indian middle class has also created a sustained boom in the consumer goods, auto and retail sectors. Interest in IT and telecoms also remains strong. Local PE investors familiar with the Indian market tend to favor education above IT, while their international peers see more opportunities in healthcare. This appears to highlight the different perspective of local and overseas investors. Some sectors have not fared quite so well. Media in particular has been hard hit by the global recession, resulting in a drop in advertising revenues. Table 2: Sector Wise PE Investment
Sectors/ Years IT & ITES Manufacturing Healthcare & Life Sciences Energy Engg.& Constructions Agribusiness BFSI Others 2004 43 15 20 0 12 0 7 3 2005 26 16 12 0 7 0 10 29 2006 16 7 2 0 12 0 37 26 2007 16 7 2 0 13 0 38 26 2008 14.3 3.3 1.4 0 21 0 28.5 31.5 2009 10.95 5.59 21.08 0 15 0 18.95 28.43 2010 27 7 9 10 9 5 15 18
Source: Compiled from Venture Capital Intelligence Database
IMPORTANCE OF PE INVESTMENT FOR INDIAN COMPANIES

Economists estimate that India needs about USD 1.3 trillion dollars of investment over the next three years to sustain a GDP growth of 7-9 percent. This translates to USD 60-100 billion of VC/PE investments requirement over three years, against which industry estimates that PE investments would be in the range of USD 9-10 billion in the year ending December 31, 2010. PE-backed companies have performed better than Other companies (Table: 3.1). Table 3: Annual Sales Growth PAT Growth Annual Wages Growth Annual R & D Growth
Annual Sales Growth 25 16 19 20 21 PAT Growth 35 25 26 26 25 Annual Wages Growth 32 14.9 20.3 22.5 11.1 Annual R & D Growth 45 21 30 32 29
PE Backed Firm Non PE Backed Firm Nifty Sensex CNX Midcap
Source: Venture Intelligence PE Impact Report 2010 (over the 10 year period from 2001-2010(in %age)
FUTURE OF PE FUNDING IN INDIA

The main reasons for the increasing trend of VC and PE investment in India can be attributed to the following reasons: Knowledge-based industries growing fast and mostly global; less affected by domestic issues World class engineers, professionals, entrepreneurs their success is evident in the US as well 2nd largest English speaking population; India has advanced rapidly in the 90s, catching up with global markets in many sectors 25% of small IT companies in the US have Indian founders Large presence of Indians in the US Software Sector The equity investor today has a very wide choice of investment vehicles with a menu of alternatives.
CONCLUSIONS
The India VC/PE market is very young and small compared to the US. The US PE investments also tend to be more control-oriented transactions financed with leverage. In India it is hard to get leverage and rarely do promoters sell control in a good business. Even as deal flow is gathering pace in India, new fund formation is lagging behind. Global investors are still cautious about parking money in the country since the market worldwide is under pressure. Global investors faced a shock during the 2008 financial crisis. They not only saw their funds decline in size but also saw liquidity evaporate. However, now in the wake US Feds policy of quantitative easing and dollar devaluation, India is among the more attractive destinations for investors to invest their capital. Investors are likely to earn a good return and avoid further dollar devaluation. As India public markets have appreciated quite a bit this year, PE funds which invest in small companies and help build them will be attractive vehicles for investors seeking emerging market exposure. With the fast developments that are taking place, PE funds seem to be taking benefit of those guidelines and operating in large scale investments. The increasing trends of PE investments in different growing sectors in India are welcome. However, this should not lead to mushrooming of such funds resulting in reckless lending merely because of the favorable economic conditions. The only solution is that the PE Funding should be controlled by introducing some regularities just similar to VC.
REFERENCES
Dossani (2003), Reforming Venture Capital in India: Creating the Enabling Environment for Information Technology, International Journal of Technology Management; Vol. 25 Issue 1/2, pp151-165. http://www.wikipedia.com. http://www.business-standard.com/india/news/private-equity-investments-insmes-down-68-in-2009/384338/. http://www.indiavca.org/IVCA%20Presentation_October2007.pdf. http://www.tradingeconomics.com/Economics/GDP-Growth.aspx?Symbol=INR. Indian PE Industry, Economist Intelligence Unit. 2005. Country Finance: India. London. PE investments are on a decline, Hindustan Times, Tue,16 Nov 2010. Rakesh Mohan (2006), Economic Reforms in India: Where are We and Where Do We Go?, Lecture by Deputy Governor, Reserve Bank of India at a Public Seminar organized by Institute of South Asia Studies in Singapore. Rob Chandra: India trip to boost trade The Economic Times, 8 NOV, 2010
A Study on Buying Behavior with Reference to M and F

Y. Aruna Prasanthi
HRIT, Ghaziabad E-mail: arunacsram@gmail.com
INTRODUCTION
The total concept and idea of shopping has undergone an attention drawing change in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. Modern retailing has entered into the retail market as is observed in the form of bustling shopping centers, multi-stored malls and huge complexes that offer shopping, entertainment and food - all under one roof. The Indian Retail Industry looks promising with the growing of the market.
OBJECTIVES
The main objective of the present study is to study the Location Convenience, congeniality, merchandise price related issues, sales personel, and additional facilities influence the buying behavior of the consumer.
A Study on Buying Behavior with Reference to M and F 523
Only a few studies have been taken up relating to this area of study. In one of the studies titled The Retails Myth the researcher1 concluded that the retail sector is highly sensitive one because it directly deals with the customers of varied nature. With the increase in the earnings of the customer, especially the middle class, customer needs are fast changing. The changes are deep with a larger input on the buying pattern of the consumer. He also feels that new retailing formats are sure to come up soon in India. Another study titled Understanding Consumer Buying Behavior in Retail Outlets was carried out to know the requirements and expectations of the consumer from the corporate retailers. In this study the researcher2 concluded that the consumer requires definite sections in a supermarket containing or dealing with various commodities like grocery clothing, crockery, electronics and furnishing. He is also expecting good service inside the shop. This study entitled A Study of Buying Behavior with reference to M and F has been taken up to further understand the consumer preferences in respect of the following aspects: Location convenience Congeniality Merchandise Price related issues Sales efforts and service Additional facilities To understand these requirements of the consumer two retail outlets namely F and M located in Ghaziabad city part of National Capital Region (NCR) i.e., Delhi are selected and the study was conducted through a survey.
METHODOLOGY
A questionnaire is prepared with six parameters namely (1) Location Convenience, (2) Congeniality, (3) Merchandise, (4) Price related issues, (5) Sales efforts and services and (6) Additional facilities. The respondent is requested to give his/her preferences in a five point scale 1, 2,3,4,5 in ascending order in respect of each variable.The responses are collected and analyzed variable wise in the first instant. Then the responses recorded are counted and converted into percentages grade point wise and further analyzed for understanding consumer preferences. Further, the highest grading (3 + 4 + 5 points) for each variable is noted in parameter
abstract to arrive at consumer rating percentage of respective retail outlet. This enabled the researcher to locate the rate of satisfaction among the customers of the two retail outlets in respect of particular parameter and find the satisfaction levels of consumers.The parameter wise averages are fed into the overall rating abstract and consumer satisfaction levels of each of the selected retail outlet is arrived at. Based on this a final conclusion is made and suggestions are given. Data Source: This research work is purely based on the primary data. Data Collection Methods: Communication method, particularly structured and direct method which involves the use of a structured formal questionnaire as well as an interview. Sampling Method: Convenience-sampling method. Sample Size: 80 Data Analysis: The data analysis is done on six main attributes/parameters Note: F is denoted by F and M is denoted by M Location Convenience: Sub parameters viz., Accessibility, Traveling Time and Parking availability are used. Table 1: Opinion on Location Convenience
Rating M 1 2 3 4 5 Total 12.50 25.00 26.25 28.75 7.50 100.00 Accessibility F 7.50 15.00 31.25 31.25 15.00 100.00 M 11.25 18.75 31.25 27.50 11.25 100.00 Traveling Time F 6.25 26.25 18.75 35.00 13.75 100.00 M 17.50 32.50 20.00 20.00 10.00 100.00 Parking Availability F 3.75 16.25 28.75 30.00 21.25 100.00
Source: Data collected Note: All values are percentages to responses
Inference: About 77.5% voted to F and about 62.5% to M with respect to accessibility. About 67.5% voted to F and 70% to M with respect to traveling time. About 80% voted F when compared to M with respect to parking availability. Congeniality: The parameters used are Store layout, Store decors, Area sufficiency, and packing attractiveness
Table 2: Opinion on Congeniality

Rating Store Layout M 6.25 22.50 40.00 23.75 7.50 100.00 F 7.50 11.25 23.75 37.50 20.00 100.00 Store decors M 8.75 22.50 28.75 36.25 3.75 100.00 F 5.00 17.50 26.25 40.00 11.25 100.00 Area Sufficiency M 6.25 25.00 32.50 30.00 6.25 100.00 F 3.75 12.50 30.00 45.00 8.75 100.00 Packing Attractiveness M F 5.00 3.75 26.25 13.75 30.00 23.75 32.50 40.00 6.25 18.75 100.00 100.00
1 2 3 4 5 Total
Source: Data collected
Note: All values are percentages to responses
Inference: About 80% voted to F and 70% to M with respective to Store layout. About 68.7% have given highest ranking to M and 77.5% voted to F with respect to Store Decors. About 68% voted to M and about 83% voted to F with respect to Area Sufficiency. About 68.7% voted to the M and 82.5% voted to the F with respect to packing attractiveness.
Merchandise
Merchandise is sub divided into Quality, Variety to choose, Display. Table 3: Opinion Regarding Merchandise
Rating M 7.50 1 21.25 2 3 38.75 4 25.00 5 7.50 Total 100.00 Source: Data collected Quality F 3.75 11.25 27.50 46.25 11.25 100.00 Varieties to Choose M 5.00 20.00 32.50 30.00 12.50 100.00 F 2.50 12.50 26.25 31.25 27.50 100.00 M 5.00 16.25 46.25 25.00 7.50 100.00 Display F 3.75 10.00 23.75 36.25 26.25 100.00
Inference: About 85% voted to F and 71.2% voted to M with respect to Quality. About 85% rated to F and about 75% rated to M with respect to varieties to choose. About 86.25% rated to F and about 78.7% voted M with respect to Display. Price Related Issues: Sub parameters are Price, Schemes, Discounts and Offers.
Table 4: Opinion on the Price Related Issues

Rating M 1 2 3 4 5 Total 6.25 22.50 28.75 35.00 7.50 100.00 Price F 3.75 7.50 22.50 48.75 17.50 100.00 M 3.75 16.25 41.25 32.50 6.25 100.00 Schemes F 3.75 8.75 20.00 43.75 23.75 100.00 Discounts M 7.50 25.00 30.00 31.25 6.25 100.00 F 3.75 12.50 23.75 33.75 26.25 100.00 M 7.50 23.75 36.25 27.50 5.00 100.00 Offers F 5.00 8.75 28.75 35.00 22.50 100.00
Source: data collected
Inference: About 71.25% voted to M and about 88.75% voted to F with respect to Price. About 80% voted to M and 87.5% have voted F with respect to Schemes. About 83.7% voted to F where as 67.5% voted to M with respect to Discounts. About 86.25% voted to F and 68.7% voted to M with respect to offers.
Sales Efforts and Services
Sub-parameters used are Courtesy, Customer care, Usefulness of advertising; Billing Procedures the sales efforts and services have been studied. Table 5: Opinion Over Sales Efforts and Services
Rating Courtesy M 1 2 3 4 5 Total 7.50 25.00 33.75 26.25 7.50 100.00 F 2.50 10.00 33.75 40.00 13.75 100.00 Customer care M 6.25 20.00 40.00 21.25 12.25 100.00 F 2.50 8.75 30.00 36.25 22.50 100.00 Usefulness of advertising M 11.25 26.25 30.00 25.00 7.50 100.00 F 2.50 10.00 31.25 33.75 22.50 100.00 Billing procedures M 5.00 15.00 36.25 25.00 18.75 100.00 F 3.75 7.50 27.50 32.50 28.75 100.00
Inference: About 87.5% voted to the F and 67.5% to the M with respect to courtesy. About 88.75% voted to F and 73.5% voted to M with respect to customer care. About 87.5% voted to F while 62.5% rated to M with respect to usefulness of advertisement. About 80% rated to M and about 88.75% to F with respect to billing procedures.
Additional Facilities: Additional facilities like Acceptance of credit card, delivery promptness, refreshment facilities, Home delivery, and security are considered. Table 6: Opinion of Consumers over Additional Facilities
Rating Acceptance of credit card M 1 2 3 4 5 Total 6.25 23.75 33.75 26.25 10.00 100.00 F 2.50 6.25 26.25 30.00 35.00 100.00 Delivery Promptness M 3.75 17.50 36.25 35.00 7.50 100.00 F 3.75 15.00 25.00 35.00 21.25 100.00 Refreshment Facilities M 12.50 31.25 28.75 18.75 8.75 100.00 F 3.75 11.25 25.00 35.00 25.00 100.00 Home Delivery M 8.75 15.00 30.00 36.25 10.00 100.00 F 7.50 21.25 27.50 31.25 12.50 100.00 Security M 6.25 5.00 35.00 3.00 11.25 100.00 F 5.00 6.25 21.25 38.75 28.75 100.00
Inference: About 91.2% voted for F and 70% voted for M with respect to Acceptance of credit card. About 78.7% to M and 81.25% to the F with respect to delivery promptness. About 56.2% voted to M and 85% to F with respect to refreshment facilities. About 76.2% voted to the M and 71.2% to the F. About 88.75% voted to F and 49.2% to M with respect to home delivery. Findings: From the above inferences it may be found that large number of F customers feel that the store is easily accessible compared to M. Traveling time to reach the retail outlet in both the cases seems to be same. F is providing suitable parking facility compared to M. Congeniality plays additional role in corporate retailing. F appears to be M congenial to customers than M. As far as Merchandise is concerned F retail outlets appear to overtake M. Sales price plays a desirable role in consumers choosing a retail outlet for making their regular purchases. F seems to offer competitive price to its customers when compared to M. When a customer enters a shop he expects a warm welcome and guidance to finish shopping with ease and in a short time. All this could be achieved only through the efforts of staff in the shop and quality of their services. In this regard F is preferred to M. While coming to additional facilities F is offering better additional facilities than M.
CONCLUSIONS
Based on the analysis and discussions the following conclusions are arrived at.
Table 7: Overall Rating Average of a Retail Outlet

Location Convenience Congeniality Merchandise Price related issues Sales Efforts and services Additional Facilities Overall average M 60.83 69.34 75.08 68.75 70.9 78.97 70.64 F 75.00 81.26 85.42 86.59 88.13 83.52 83.32
From the above table it can be said that F is attracting its customers M in all the six parameters. Overall 83.32% of customers are satisfied with performances and about 70.64% of customers are satisfied with M. With a little M efforts M can also be equal to F.
REFERENCES
A SivaKumar , Retail Marketing . Journal : Modern Management, January 1999. Journal : Synergy, January 2006. Kotler, Philip, Marketing Management. Kurtz, Boone, Principles of Marketing. www.indiabusiness.nic.in. www.indianretailing.com. www.google.com.
A Feasibility Study for a Tertiary Care Hopsital at Nanded City

Zuber M. Shaikh, Gazala Khan1 and Soleiman Al-Towyan2
Krishna Institute of Medical Sciences, Minister Road, Secunderabad, Hyderabad 1 Sancheti Institute for Orthopaedics and Rehabilitation, Shivaji Nagar, Pune, Maharashtra 2 Hospital Affairs, Dr. Sulaiman Al-Habib Medical Group, Olaya, P.O. Box-91877, Riyadh-11643, Kingdom of Saudi Arabia
E-mail: drzuber5@yahoo.co.in, gazala_shaikh59@yahoo.com
ABSTRACT
Purpose: This feasibility study was conducted for the tertiary care healthcare facility / hospital at the Nanded City which is the headquarter of Nanded District in the Marathwada Region of Maharashtra State. It is the second largest urban centre in the Marathwada Region after Aurangabad with the population of 430,733, CAGR 3.14% and decadal growth of 50.66 % (2001). The city has only 1720 hospital beds, and is delivering the healthcare services not only to the local residents but also to the population of the entire district which has 16 talukas with the total population (Census 2001) of 28, 76,259 (Nanded District), as most of the talukas and villages secondary / tertiary healthcare services lacks. The population to hospital bed ratio of Nanded City is 250.42:1, which shows the need and urgency of the healthcare imbalance and is far behind than the international/ national standards.
Methodology: The primary data collected by the survey method and secondary data collected from the Census of India 2001, Healthcare and Medical Journals, relevant published research articles. Conclusion/ Findings: There is a huge untapped healthcare market for the private healthcare sector in Nanded City to provide quality healthcare services at an affordable cost with the best possible outcome to the local and districts population by strengthening and implementing health promotion and services, market penetration by using the Base of Pyramid concept. Research limitations: This research is limited to the Nanded City only. Originality: The study is a genuine, and all the values in this paper are from the published government references and resources. Keywords: Nanded, Population, Tertiary-healthcare
INTRODUCTION Geography
Area of Nanded is 1006.81 km, Longitude 77.7 to 78.15. East, Latitude is 18.15 to 19.55. North Borders: The state of Andhra Pradesh lies to the east and Karnataka state to the south, Average Rainfall -953.8 MM.
Demography
The population of Nanded city was 430,733 (2001) and 605534 (2010). The population of the city has grown from 126,518 in 1971 to the 2001 level of 430,733 at a CAGR of about 4.17 per cent.
Population Trends in Nanded

Year 1971 1981 1991 2001 Population (Census) Decadal Growth 126,518 191,269 309,316 430,733 -51% 62% 39% CAGR -4.22% 4.92% 3.37% CAGR from 1971 -4.22% 4.57% 4.17%
Source: Census of India 2001
It may be noted from the above table that the population growth rate during the last decade (1991 to 2001) has been substantially lower than the previous
A Feasibility Study for a Tertiary Care Hopsital at Nanded City 531
decade. This, despite the fact that the municipal territorial jurisdiction more than doubled in area from 20.62 sq.km. in 1991 to 51.76 sq.km. in 2001.
Demographic Data of Nanded City

1 2 Total Number of Households Total Population Male Female 3 4 Population density Literacy Rate Male Literacy Female Literacy 5 Average House Hold Size 72,733 430,733 224843 205890 183.05 persons/ha 81.50% 89% 73% 5.92
Sources: The above table presents some of the key demographic data of Nanded city as per 2001 census of India.
Economic Base
Historically Nanded was known for its presence in the Textiles manufacturing sector due to the presence of Osmaan Shahi Textile Mills (Now known as Nanded Textile Mills Corporation), Cotton Research Center and Textile Corporation of Nanded. During the 1980s Nanded Textile Mills used to provide employment to around 10,000 people. However, the closures of these entities have affected the growth industrial activities in the city / region. Currently, the economic base of Nanded city appears to be primarily reliant on the tertiary sector, more specifically on trade and commerce followed by education, tourism, health and transportation services.
HEALTH CARE SERVICES

City has a reasonable presence of Health infrastructure; however the same is highly inadequate considering the population size. Specialized medical centers are virtually non-existent. Most of the health care centers and hospitals are privately owned and are located in the old Nanded city. Presently the private healthcare sector has 1150 hospital beds, 250 primary, 125 secondary, one tertiary healthcare centres and one blood bank. Whereas the
public sector has 570 hospital beds, 9 primary, 5 secondary, one tertiary healthcare centers, one diagnostic and one blood bank.
Summary of Health Facilities in Nanded

Sl. 1 2 3 4 5 6 Description Total no. of Beds available Primary Health Care Centers Secondary Health Care Centers Tertiary Health Care Centers Diagnostic centers Blood Bank Government Medical College 450 -1 1 1 1 Government Ayurvedic Hospital 100 -1 ---NWCMC* 20 9 3 1 --Private 1,150 250 125 2 -1 Total
1720 259 130 4 1 2
Source: State Government of Maharashtra for the Gur-Ta-Gaddi event and development plan, 2008 (*Nanded Waghla City Municipal Corporation)
The Nanded City is delivering the healthcare services not only to the local residents but also to the population of the entire district which has 16 Talukas as follows- Nanded, Bhokar, Kinwat, Hadgaon, Biloli, Mukhed, Dharmabad, Deglur, Umari, Naigaon (Khairgaon), Himayatnagar, Mahur, Mudkhed, Ardhapur, Loha and Kandhar and the population (Census 2001) 28, 76,259, Total-28, 68,158, Male14, 76,301, Female-13, 91,857, as in most of the talukas and villages these tertiary healthcare services are not available. The city lacks in tertiary health care centers and all super-specialities to meet the basic requirements of a population of the Nanded City and the surrounding villages, towns.
CONCLUSION/ FINDINGS
There is a huge untapped healthcare market for the private healthcare sector in Nanded City to provide quality healthcare services at an affordable cost with the best possible outcome to the local and districts population by strengthening and implementing health promotion and services, market penetration by using the Base of Pyramid concept.
A Feasibility Study for a Tertiary Care Hopsital at Nanded City 533
ACKNOWLEDGEMENT
Dr. Zuber M Shaikh is presently working with Krishna Institute of Medical Sciences, Secunderabad, Hyderabad (AP), India, as a Hospital Administrator, and is responsible for strategy development, planning, research, hospital commissioning, operations, facility and quality management.
RESEARCH PAPER PRESENTED IN THE INTERNATIONAL CONFERENCES

1. Presented a research paper titled Al-Qassim Region (KSA) Oasis of Growth Opportunities for Private Healthcare Sector in the International Conference on Health Care Market and Emerging Consumers- Innovation, Efficiency and Effectiveness January 21-23, 2010 at Manipal, India. 2. Presented a research paper titled A Comparative Case Study on Picture Archiving Communication System and Conventional X-Ray in the International Conference on Health Care Market and Emerging Consumers- Innovation, Efficiency and Effectiveness January 21-23, 2010 at Manipal, India. 3. Presented a research paper titled A Case Study on Electricity Consumption and Implementation of Value Engineering in a Tertiary Care Hospital in the International Conference on Operations Management Sciences 2010 February 12-13, 2010 at Nagpur, India. 4. Presented a research paper titled Healthcare Service Delivery and Opportunities for Private Healthcare Sector in Al-Qassim province (Kingdom of Saudi Arabia) in the International Conference on Health System Strengthening May 7-10, 2010 at Chennai, India. 5. Presented a research paper titled Patient Safety Metrics- Risk-Based in the International Conference on Project Risk Management October 21-22, 2010 at Pune, India. 6. Presented a research paper titled Healthcare Risk and Clinical Risk Management in the International Conference on Project Risk Management October 21-22, 2010 at Pune, India.
REFERENCES
Census of India 2001. Census of India 2001.
Maharashtra State Gazetteers, Nanded District, First Edition, Bombay, Directorate of Government Printing, Stationary and Publications, Maharashtra State Nanded Waghla City Municipal Corporation, Report 2009. State Government of Maharashtra for the Gur-Ta-Gaddi event and development plan, 2008. Wikipedia, the free encyclopedia 2010
Emerging Prospects of Shale Gas in Indias Energy Security

K.M. Mital
Department of Strategy & CSR, IILM Institute for Higher Education, 3, Lodhi Institutional Area, New Delhi
E-mail: Krishna.mital@iilm.edu
ABSTRACT
Shale gas assets are primarily fine-grained sedimentary rocks called kerogen which contain several combustible gases. Shale gas production in US is about one trillion cubic feet per year, which is about 14 per cent of the countrys total gas production. Large scale gas production led to abundant gas availability resulting in fall of natural gas prices by 75 per cent in mid-2008 in US. More than two-third of countrys power in India comes from coalbased power plants. With the countrys energy consumption for power expected to grow 40 per cent in the next decade as the countrys economy further picks up, displacing coal with shale gas offers strategic options in terms of reduction in greenhouse gas emissions. Furthermore, gas-based power plants are cheaper to build, smaller in size, easier to be located near consumers, and offer benefit of locating within the countrys far flung villages. This paper reviews the potential of shale gas assets as an alternate energy source for energy security in India. Keywords: Shale Gas, Synthetic Crude (Shale oil), Shale Deposits (Shale assets)
INTRODUCTION
Shale gas is described as natural gas obtained from shale formations. Shale gas is one of the unconventional natural gas resources trapped in micro-pores of hard rocks called shale, a rock formation found in several parts of the world. Unconventional natural gas supplies may augment energy supplies in several countries as shale gas production has very significantly stepped up natural gas supplies in US. In North America unconventional gas production is projected to increase from 42 per cent of total gas production in 2007 to 64 per cent in 2020 (API, 2010). Shale gas is already a major natural gas resource in USA and the interest for its exploitation is spreading to other nations such as Canada, Europe, Asia, Australia, China and India. As per some very broad assessment global reserves of shale gas are estimated at 15, 000 tcf (trllion ft3). Global majors like Exxon, Chesapeake, Davon and Pioneer are the market leaders in shale gas extraction. India is believed to have considerable shale deposits in Assam, Gujarat, Rajasthan, Gangetic plains, Cambay basin and the Gondwana basin in Central India (Jayaswal, 2010a, b&c). Due to their low permeability, extraction of gas from shale rocks is however not smooth and continuous as from normal sedimentary rocks. In 1990s, US made significant technological breakthroughs for extracting gas from the shale rocks by perfecting hydraulic fracturing technique made with water, sand and toxic chemicals injection. There are a number of shale formations in each basin, the cumulative thickness of which can be compared with prominent shale plays found globally though nothing can be said with definiteness. Damodaran basin which already has its presence known for carrying out CBM related investigations by the ONGC is regarded as equally promising for shale gas as well (Airy, 2010). Potential and prospects of shale oil and shale gas in Indias energy security could be enormous if one considers that every time some investigations for oil & gas is carried out one also comes across availability of shale gas. At present no comprehensive data about shale gas reserves is available in India except that Damodar and Cambay basins may have a resource potential of about 35 and 90 tcf of the shale gas possibly based on comparative studies with established fields in US and other regions. Based on initial assessments made by the geophysicists in India, promising shale gas reserves exist in Cambay basin in Gujarat, AssamArakan basin in North East India, and the Gondwana basin in Central India. This paper reviews the potential of shale gas assets as an alternate energy source for energy security in India, spells out distinctive features of shale gas technology, reviews the state of art of shale gas technology in US particularly
Emerging Prospects of Shale Gas in Indias Energy Security 537
within the backdrop of recent collaboration with India, and shale gas and shale oil initiatives in India.
DISTINCTIVE FEATURES OF SHALE GAS TECHNOLOGY

Natural gas, which burns with half of greenhouse gas emissions as coal, is increasingly replacing coal as feedstock for thermal power generation, a process which is expected to pick up even further as supply of shale gas is further enhanced. Based on a study carried out by the Boston-based MIT, natural gas will eventually reach 40 per cent of Americas energy needs from 20 per cent at present (Wald, 2010). Following stepped up shale gas production in US global prices of LNG are decreased. Gas is now competitive with coal on a BTU basis (The Times of India, August 25, 2010). In USA, construction projects for nuclear power plants and LNG terminals at ports are being deferred and even cancelled in view of ever growing supplies of shale gas. In fact shale gas might act as dampener for countrys earlier plans to increasingly shift to nuclear power. The US revolution in harnessing shale gas technology has been so rapid that GOI in its earlier plans for energy security by 2025 had accorded no priority to shale gas as a strategic initiative for enhancing its natural gas supplies perhaps due to very nascent stage of its development in India. US has offered to India and China its expertise and technical knowhow to exploit enormous potential of shale gas for achieving their avowed objectives of energy independence and self reliance in energy security. A technical agreement between India and USA is expected to be signed in early 2011for resource assessment and policy formulation for shale gas assessment from identified regions. India has sought to secure assistance of the US Geological Survey to identify and explore shale gas resources in India. While in India, the US President Obama recently said: We agreed to deepen our cooperation in pursuit of clean energy technologies including creation of new clean energy research center in India, and continue with the existing ongoing research endeavours in the areas of solar energy, biofuels, shale gas and building efficiency. In line with efforts to expand ties with US into areas of unconventional and frontier technologies, India has signed an MOU with the USA for cooperation in identifying and tapping gas trapped in layers of shale rocks, commonly known as shales. The US Geotechnical Survey (USGS) will carry out studies on shale gas resources and will provide report to the Government of India (PIB, 2010).
SHALE GAS INITIATIVES IN INDIA

Indias prospective shale gas fields are located in the Cambay basin, Damodar Valley, and Krishna-Godavri & Cauvery (onland) basins. Director General of Hydrocarbons, a technical arm of the Ministry of Petroleum and Natural Gas, Government of India, is engaged in evolving a policy framework for shale gas in India. Under the policy the states will have share in the profit margins of the petroleum company. The profit sharing will be over and above the royalty that a state anyway normally receives. In other words the state government becomes a partner in the development of shale gas field in the country. The profit share for the state would incentivize states to help in the land acquisition process, a function which comes within its jurisdiction. IOCL (Indian Oil), BPCL (Bharat Petroleum) and OIL (Oil India) envision to acquire shale gas assets in the US and Australia (Jayaswal, 2010a). However, Reliance Industries Limited has taken a lead in this new source of energy by already acquiring stakes and forming joint ventures with shale gas companies in the US (Jayaswal, 2010b). In April (2010), RIL acquired a 40 per cent stake in the Atlas Energy Incs core shale acreage in Marcellus field in central and north east Pennsylvania for $1.7 billion. The asset has estimated natural gas reserves of 13.3 trllion ft3 with valuation per acre as $14, 167. In June (2010), it paid $1.35 billion for a 45 per cent stake in Pioneer Natural Resources Co, another US-based energy firm that holds shale gas assets in the Eagle Ford Shale acreage. The asset has estimated natural gas reserves of 10 trllion ft3 with valuation per acre as $11, 111. Thus, Reliance paid a combined $3 billion to buy shale gas assets from Pioneer Natural Resources Co in June 2010 in the Eagle Ford Shale Formation in Texas, and from Atlas Energy in April 2010 in the Marcellus shale gas areas in Pennsylvania. RIL in August 2010 acquired its third shale gas asset in the US and the second in the Marcellus field by investing $392 million (Rs. 1,811 crore). The deal takes total investment in shale gas by the Mukesh Ambanicontrolled RIL to $3.44 billion for potential reserve of 25.4 trillion ft3 (tcf) of shale gas. More recently in August (2010) RIL acquired a 60 per cent stake in the Carrizo Oil and Gas core shale acreage in Marcellus for $392 million. The asset has estimated natural gas reserves of 2 trllion ft3 with valuation per acre as $6,200. The recent agreement signed by the RIL with US authorities provides scale to RILs existing shale gas acreage portfolio in the US facilitating it to access technology and gain experience, which will later help them harness shale gas deposits in India. RIL also plans to enter into strategic alliance with the Chesapeake Energy Corporation, which is the third largest producer of shale gas in US.
Emerging Prospects of Shale Gas in Indias Energy Security 539
ONGC has initiated an exploratory pilot project for shale gas extraction in a village by drilling first shale gas well at Ichapur near Durgapur in Damodar Valley. The well is targeted for a depth of up to 2000 meters and shall assess the shale gas potential in 700 meter thick shale. ONGC has also undertaken a Rs. 128 crore project for exploration of shale gas in the Damodaran valley basin in Jharkhund and plans to drill three wells by March 31, 2012.
CONCLUSION
In long run with the continued exploitation of shale gas India may need to review its LNG import policy and large scale switchover to nuclear power plants in the manner it happened in US in wake of large scale availability of shale gas (17 per cent of total natural gas production). India would be no different if it succeeds in exploiting shale gas on US pattern. Advent of shale gas offers much greater benefits in the long run than costs to be incurred initially. GOI should go all out in exploiting this very vital key energy resource.
REFERENCES
Aiyar, S.A., Shale Gas: Could it be a new Energy Resource, The Times of India, August 9, 2009. API, Facts About Shale Gas, American Petroleum Institute, February 1, 2010. Accessed on November 19, 2010. Datta, A. (2010), RIL Acquires Third Shale Gas Assets in US, Mint, August 6, 2010. Holland, B. (2010), Land and Water Hurdles for Shale but Gas from Rocks provide the Country Energy Security, The Economic Times, November 18, 2010. Hollingworth, A. (2010), What is Shale Gas? Commodity Online. February 8, 2010. (www.commodityonline.com/news/What is shale gas-25468-3-1, html). Accessed on November 24, 2010. Jayaswal, R. (2010), OVL to Buy Shale Gas Assets in US, The Economic Times, September 2, 2010. Jayaswal, R. (2010), Big Role and Big Profit for States in Shale Gas Policy, The Economic Times, September 24, 2010. Jayaswal, R. (2010), India & US may ink Pact to Explore Shale Gas, The Economic Times, November 8, 2010.
Prasad, M.N., Raju, S.V. and Ratnam, C. (1991), Oil Generating Shales and Associated Coals in North East India: An Alternate Source of Energy, Urja (NPC Journal), Vol. 30 No. 2, August, pp.19-23. PTI, India Opens by Shale Gas Exploration, Mint, June 30, 2010. The Times of India (2010), India Signs Shale Gas MOU with US, November 6, 2010. The Times of India (2010), Exploit Potential of Shale Gas: US to India and China, August 25, 2010. Wald, Mathew L. (2010), Study Predicts that Natural Gas Use will Double, New York Times
Ethical Issue in Todays Advertisments

Piyush Deep, Mohd Imran and Neha Sharma
E-mail: Piyushdeep_88@yahoo.co.in; mohdimran_rd11@yahoo.com; nehasharma_rd11@yahoo.com
RD Engeneering College, Ghaziabad, UP
INTRODUCTION
Is the woman the target-audience a product/service is aimed at? In other words, is she the primary consumer of the product/service advertised? Or is she herself the product or service? This is the basic ambivalence that leads to the great, unending debate on the portrayal of women in advertising, mainly in the electronic media. In India, aggressive marketing efforts by domestic and foreign business house are increasing. The emergence and growth of new technologies, availability of new media and media vehicles and an increase in middle class income and aspirations have contributed to the phenomenal increase in the level of advertising and other forms of promotions. The race is on to attract, create and retain customers. Advertising appeal gives a reason to buy a product. An advertising campaign may have one or more advertising appeal. One appeal can be used and it can
have sub themes in an advertising campaign. Appeal needs to be unique and needs to give positive impression about the product to the target audience. Every appeal that is used by the companies in the advertising is as per their competitors. Another important aspect of appeal is that it needs to be believable by the audience. Audience gets attentive when the advertisement is there, they try to comprehend it and then finally their purchase behavior is inclined towards the brand. When audience behavior is molded by the advertiser towards the brand then only their purpose of advertisement is achieved. In order to do so advertisers understand the psychological aspects of the audience and then they try to develop the advertising appeal which can change their attitude towards the brand. Advertising does not only serve to inform the consumer, but also to persuade. As mentioned above, because of advertisings widespread nature, it yields a huge amount of influence over society as a whole. However, it is also in the corporations best interests to have an ad that directly results in increased sales for their product or service. How far can this persuasion go before it is deemed unethical? How far can the use of sex as a persuasive tool in advertising go? What about advertising to children who do not have the required maturity to make truly rational decisions?
NATURE AND PURPOSE OF ADVERTISING For Information Sharing To Persuade Consumers to Purchase
Advertising appeal is the main central message in the advertising message. It arouses the desires and addresses the human need that can be satisfied by the product which is advertised. Appeal is the underlying content in the advertising. Advertising appeal and execution are usually interdependent but advertising appeal can be used in all types of media but the execution style is different for different type of media. Advertising appeal is that something which attracts the consumers and develops interest in them. Some common consumer appeals are esteem, sex, fear, security and sensory pleasure. Advertiser uses the word appeal
Ethical Issue in Todays Advertisments 543
to emphasis on the creativity. Advertising create desire for the product and appeals persuade the consumer to invest in the product. Appeals not always have all the product attributes but they create an atmosphere where the target audience desires are evoked towards the product. For example, if there is a product for the housewives then the appeal would be related to family. There are mainly two types of appeals rational and emotional appeals. Rational appeal addresses the consumers functional needs of the product. Kotler (2000) opined that rational appeal is based on logic and product are been sold by highlighting the product attributes, quality, its problem solving capacity and its performance. Rational appeals are informative in nature and it focuses on the suitability of the product. This appeal is used by consumer durables and in competitive advertising. There are different types of rational appeal like feature appeal that focuses on important traits and features of the product. Information content in such kind of advertisement is very rich. It is used by high involvement product. There is another type of appeal named as competitive advantage appeal which gives a comparative picture of two or more brands. Comparison can be direct or indirect depending upon the brand and the product category. Price appeal is another type of rational appeal which focuses on the price or value of the product. This appeal is also used during the festival season. News appeal is used when a new product is introduced in the market or if certain modifications are done in the existing products. When the message is to be communicated to a larger audience and it is the established brand then popularity appeal is used as it emphasizes on the experience of the satisfied consumers. Rational appeals are based on the logic and reason to buy to product. In the actual scenario both the appeals i.e., rational and emotional appeals works together. Sex appeal mainly helps in attracting the opposite gender masculine or feminine. According to Bradley (1995) sex appeal considered to be an offence sometimes depending upon the culture and the country but if the sex appeal is not obscene then it is acceptable in the society. For the perfumes and cosmetics love appeal is used. These appeals are used more younger generation. For years, many have believed that
women are the primary focus of sex appeals used in advertising. Women seem to be the target most recognized in sexual appeals. Women have often been the targets of sexual advertising because it seems to work in many cases. Sex is a powerful and easy method of getting male attention and making a product desirable. In advertising, it is easy to get a mans attention by using womens bodies and associating getting the women if he buys the product. The most well known target of women as sexual appeals has been in beer commercials and advertisements. Usually the ads go something like this: a beautiful woman is sitting at a bar and a man comes up and she does not notice him at all. Then he orders a certain kind of beer and all of the sudden, he is desirable to this woman. They then get caught up in the moment and ultimately the man gets this woman (because of the beer). Another example of the man getting the hot woman because of a particular product that supposedly makes the man more desirable to the women is the AXE commercial. AXE is a body spray for men. In the commercial, the men who use AXE get beautiful women. In fact, AXE is so effective that if in any way you come in contact with this body spray, you will be instantly wanted. The commercial features an old man getting a young, hot woman because of the AXE Effect (2004). There is lot of examples from Indian market that use women as sex object to promote products. Now sex appeal or just closer to sex appeal is also used for industrial goods. J K Super Cement is the latest example for this. In J K Super Cement one women is standing front of one pillar and using a cotation vishvash hai isme kuchh khas. See there is no link between women and cement but still they used her in their Real estate companies whose aim is to provide dream home to the customer also not free from sexual appeal advertisement. Now they also use this theme to promote
Ethical Issue in Todays Advertisments 545
their projects. For example PROVIEW use sexual appeal to promote its project. In this it use one girl, wearing innerwear and quotation is very- very hot offer but in real it want to sell home. See next product is more interesting because there is no link between women and product for which she advertise. Yes it is a advertisement of LML NY 4 Stroke Scooter. In this company is trying to communicate that its scooter is too beautiful as a girl. So it is very serious matter to think about restructuring advertisement theme. No single area or product is left were sexual appeal is not entered in advertisement. Now a days Telecom industry also using sexual appeal propaganda for advertisement. Weather it is mobile company like Virgin mobiles, Nokia, etc or telecom service provider like idea, MTS, Virgin, using sexual theme to attract more and more customers toward their products.
Many laws and regulations are put into force that determines what is permissible in advertising; however, not every issue is controlled by rules. Marketers are often faced with decision regarding appropriateness of their actions which are based on ethical consideration rather than what is within the law or industry a guideline. There is considerable overlap between what many consider to be ethical issue in advertising and the issues of manipulation, taste and the effects of advertising on values and lifestyles. Certain action may be within the law but still unethical. Primary criticism of advertising is that it is misleading and deceives consumers. Most advertisers who spend huge sums of money on advertising do not design their message to deceive or mislead consumers.
CONCLUSION
The Modern advertising has lot of positive effects along with few negative effects on our culture. Indian culture was a reality but in present scenario it is a myth. The impact of globalization on our culture is such that we are forgetting all about our culture and adopting the others culture. Companies are using women as a sex object for advertising their products. It is totally unethical and it is social responsibility of the companies that they should not play with Indian culture. It depends upon companies that how they are going to adopt this change. Women are not made for this type of advertising. Companies can use other themes for advertising, like pleasure is also the most popular and effective theme for attracting the customers attention towards products. And the main thing is that society should also not promote such type of advertising by purchasing that product.
REFERENCES
Advertising Fundamental by Dr. G.N. Qazi Bartels, R., Model for Ethics in Marketing, Journal of Marketing, Vol 31, Jan 1967 Chan, G. & Shenoy, G. (eds) (2009), Ethics & Social Responsibility: Asian & Western Perspectives, McGraw Hill https://wiki.smu.edu.sg/0910t2lgst001g4 Advertising,_Marketing_and_the_Truth Marketing Management by Kotler (2006) Marketing Communication by Ramaswamy & Namakumari (2002) Snaps taken from different areas of NCR Times of India Wright 2000 www.google.com www.axe.com
A Study of Sensitivity Analysis on Vat Base Casewith Special Reference to Addition Method: Case of Large Scale Industry
Neha Chhabra
University of Petroleum and Energy Studies, Dehradun
E-mail: nchhabra@ddn.upes.ac.in; nneha999999@gmail.com
INTRODUCTION Value Added Tax

Value added tax is a tax on consumption. It is a multipoint levy collected in instalments at each stage of production and distribution. The final and total burden of this tax is borne by the domestic consumers of goods and services. Being a tax on domestic consumption on vat is charged on goods exported from the country. Value added tax is levied on the sellers of goods and services based on value added by their respective units. The base for VAT is determined by value added at particular stage of production or distributions. In other words inputs of a firm are not taxed at each point the firm is reimbursed the tax which it has already paid at the time of purchasing the inputs thus there is no cascading effect.
Principle of Vat
The standard way to implement a Vat is to say a business owes some percentage on the price of the product minus all taxes previously paid on the good.
The Vat Assessment Process

(a) Manufacture adds value to a product; the amount of value added can be described as the difference between the cost of the materials used to make the product and the price charged to the customer. (b) The manufacturer pays value-added tax (a percentage of the value added), which is then included in the purchase price charged to the customer. (c) The manufacturer gets a rebate from the government for VAT paid on the materials. (d) The customer pays a VAT on the value they add, which can be described as the difference between what they paid to the manufacturer and the price they at which they sell it to their customer. This VAT amount is included in the price charged to the retailer. (e) The wholesaler gets a rebate for VAT from the government for the VAT paid to the manufacturer. (f) The retailer pays value-added tax on the value they add, which can be described as the price charged to customers less the wholesale cost, and includes the VAT in the final sales price of the product. (g) The retail store collects value-added tax from the person buying the product (retail price thus includes all VATs collected at each stage of this process) and gets a rebate for the VAT paid to the wholesaler.
Variants (Form) of Vat

The difference between sales proceeds and cost of materials purchased from other firms the base of vat for any firm , where purchases includes raw material, semi raw material supplied used in the process of manufactures and handling, machinery equipments and other capital goods. (a) Gross Product Type(GVAT): in this type only purchase cost of raw materials is allowed as deduction from sales no deduction is allowed in respect of capital expenditure and this encourage tax avoidance by classifying capital expenditure and revenue expenditure. GVAT = C+I = W+P+D
A Study of Sensitivity Analysis on Vat Base Casewith Special Reference... 549
where c is consumption, I is investment and W,P and C are wages, profits (after depreciation) and depreciation respectively. (b) Income Type (IVAT): here both purchase cost of raw material and depreciation will be allowed as deductions from sales . IVAT = C+I.D = W+P (c) Wages Type (WVAT): This wage type vat belongs to capital exemption type of value added taxes. Yf-P = C+1-D-P = W where Yf = net national income a s reward to factors of production. (d) Consumption Type (CVAT): In this type of case all business purchase including capital items are deducted in order to determine value added. Consumption type vat is very popular and is adopted. CVAT = W + P + D.I
Introduction on Sensitivity Analysis

Sensitivity analysis is used to determine how sensitive a model is to changes in the value of the parameters of the model and to changes in the structure of the model. In this paper, we focus on parameter sensitivity. Parameter sensitivity is usually performed as a series of tests in which the modeler sets different parameter values to see how a change in the parameter causes a change in the dynamic behavior of the stocks. By showing how the model behavior responds to changes in parameter values, sensitivity analysis is a useful tool in model building as well as in model evaluation. Sensitivity analysis is a way of analyzing change in the projects NPV for given change in one of the variables. Steps in sensitivity analysis : Identification of all those variables which have an influence on the projects NPV. Definition of the underlying relationship between the variables. Analysis of impact of the change in each of the variables on the projects NPV.
COMPARISON OF SENSITIVITY ANALYSIS WITH VAT ADDITION METHOD

Value added tax is a tax on value addition. To calculate the tax component there are several methods used. However there are three methods, which are most commonly used. They are: Addition Method
Invoice Method Subtraction Method
Invoice Method
This is the most popular and commonly used method. In India this method is being followed both in Central Excise as well as State VAT. Under this method tax is charged on the sale value, which is reflected on the invoice issued to the buyer. The tax charged by the seller which is reflected on the purchase invoice is taken into account for set off thus the net tax payable will be tax on sales minus tax on purchases. Any excess tax paid on purchases is allowed to be carried forward for set off against future tax liabilities. This method is also called as Tax Credit Method or Voucher Method.
Subtraction Method
Under this method tax is charged on the value added portion alone at each state of sale of goods. This method does not recognize set off or tax credit as the total value of goods sold is not taken into account. Under this method tax is not separately charged. For imposing tax the value added is the difference between the total sales and total purchases.
Addition Method
Implementing the addition method of calculating an origin based VAT would be based on information currently used in calculating taxes on business income. The value added by business equals the sum of the income of those who supplied labor and capital to the business. Thus we could add: Profit (Before Income Tax) +Compensating (Wages, Salaries & Fringe Benefits) + Intrest Paid(Less Interest Received) + Net Rent Paid = Net Value Added Or to get gross value we could also add depreciation Gross Value = Net Value Added +Depreciation
ANALYSIS ON CASE CONSIDERING THE PROJECT

The three scenarios of large scale industry are as follows:
Base Case, Pessimistic & Expected

In expected scenario it may be possible to increase base volume of 1,000,000 units to 1,250,000 units (25% increase) if the company reduces selling from Rs 15 to 13.50 Rs (10% reduction)resorts to aggressive advertisement campaign ,there by increasing unit variable cost to Rs. 7.10 (15% increase) and fixed cost to Rs 4,400,000 Rs(10% increase)
Scenario Summary Variable combination Sales volume(units000) Selling price per unit (Rs) Variable cost per unit(RS) Fixed cost(rs000) Base Value Pessimistic Expected
1000 15.00 6.75 4000 4800
750 12.75 7.43 4400
1250 13.50 7.10
Base Case Assumption

Investment(rs000) Sales volume(units000) Unit selling price(rs) Unit variable cost (Rs) Annual fixed cost (rs000) Depreciation (WDV) Corporate tax rate Discount rate
Year Investment Revenue Variable cost Fixed cost Depreciation EBIT Tax PAT NCF NPV 0 10,000 1 15,000 6,750 4,000 2500 1750 613 1138 3638 2 15,000 6,750 4,000 1875 2375 831 1544 3419 3 15,000 6,750 4,000 1406 2844 995 1848 3255
10,000 1,000 15 6.75 4000 25% 35% 12%

4 15,000 6,750 4,000 1055 3195 1118 2077 3132 5 15,000 6,750 4,000 791 3459 1211 2248 3039 6 15,000 6,750 4,000 593 3657 1280 2377 2970 7 15,000 6,750 4,000 1347 2903 1016 1887 3234
10,000 5041
NPV = 10,000+ (3638) (0.893) + 3419(0.797) + 3255(0.712) + 3132(0.636) + 3039(0.567) + 2970(0.507) + 3234(0.452) NPV= 5041
Expected Assumption
Investment(rs000) Sales volume(units000) Unit selling price(rs) Unit variable cost (rs) Annual fixed cost (rs000) Depreciation (WDV) Corporate tax rate Discount rate
Year Investment Revenue Variable cost Fixed cost Depreciation EBIT Tax PAT NCF NPV 0 -10,000 1 16,875 8,875 4400 2500 1100 385 715 3215 2 16,875 8,875 4400 1875 1725 603.75 1121.25 2996.25 3 16,875 8,875 4400 1406 2194 767.90 1426.10 2832.10 4 16,875 8,875 4400 1055 2545 890.75 1654.25 2709.25
10,000 1,250 13.50 7.10 4400 25% 35% 12%

5 16,875 8,875 4400 791 2809 983.15 1825.85 2616.85 6 16,875 8,875 4400 593 3007 1052.45 1954.55 2547.55 7 16,875 8,875 4400 1347 2253 788.45 1464.55 2811.45
10,000 3045
NPV = +(3215)(0.893) + 2996.25(0.797) + 2832.10(0.712) + 2709.25(0.636) + 2616.85(0.567) + 2547.55(0.507) + 2811.45(0.452)-10000 NPV = 3045
Pessimistic Assumption
Investment(Rs000) Sales volume(units000) Unit selling price(Rs) Unit variable cost (Rs) Annual fixed cost (Rs000) Depreciation (WDV) Corporate tax rate Discount rate 10,000 750 12.75 7.43 4800 25% 35% 12%

Year Investment Revenue Variable cost Fixed cost Depreciation EBIT Tax PAT NCF NPV 0 10,000 1 9562.50 5572.50 4800 2500 -3310 1158.50 -2151.5 10,000 -348.50 -10867.25 2 9562.50 5572.50 4800 1875 -2685 939.75 -1745.25 -129.75 3 9562.50 5572.50 4800 1406 -2216 775.60 -1440.4 -34.4 4 9562.50 5572.50 4800 1055 -1865 652.75 1212.25 -157.25 5 9562.50 5572.50 4800 791 -1601 560.35 1040.65 -249.65 6 9562.50 5572.50 4800 593 -1403 491.05 -911.95 -318.95 7 9562.50 5572.50 4800 1347 -2157 754.95 -1402.05 -55.05
NPV = -10,000+(-348.50)(0.893)+ (-129.75)(0.797)+ (-34.4)(0.712)+ (-157.25)(0.636)+ (-249.65)(0.567)+ (0.507)(-318.95)+ (-55.05)(0.452) NPV = -10000-311.21-103.41-24.49-100.01-141.55-161.70-24.88 NPV = -10000-867.25 NPV = -10867.25
CONCLUSION
In this analysis we watch out for the positive NPV so for this we select three cases in which the most appropriate case is selected (Vat base) in which the government and customer will be benefited. Hence the graphical representation is as under.
Vat Base Pessimistic Expected Requirement 70% 100% 30%
In this case we assume 70% out of 100% in Vat base analysis, 30% out of 100% in case of expected analysis and finally -100% out of 100% in case of pessimistic. In conclusion, we would suggest that government after implementation of vat system should not only take interest in enhancing the revenue for the exchequer (which is expected to grow steadily through between compliance and lesser evasion) but the administration should also closely monitor how expected benefits to be available to the trade & industries due to elimination of the cascading effect of taxes and the possible reduction are also shared with the consumers.
RECOMMENDATION
In this analysis Every organization should follow vat base analysis (Addition case ). Under this analysis Government & customer get benefitted. So, Every organization should use Vat analysis.
REFERENCES
Barlow, Robin, and Jack S. Connell, Jr. The Single Business Tax. Pp. 673-719 in Harvey E. Brazer (ed.), Michigans Fiscal and Economic Structure. Ann Arbor: University of Michigan Press, 1982.6. Francis, James. A Closer Look at a State Invoice-credit VAT. Pp. 142-148 in Proceedings of the Eighty-fifth Annual Conference. Columbus OH: National Tax Association Tax Institute of America, 1993. http://en.wikipedia.org/wiki/Sensitivity_analysis. Oakland, William H., and William A. Testa. State-local Business Taxation and the Benefits Principle. Federal Reserve Bank of Chicago Economic Perspectives. (January / February 1996): 2-19.
Value-for-Money Strategies for Recessionary Times

Satish Thukral, Shikha Singh and Vivek Singh
E-mail: skthukral@gmail.com; shikha2009-11@indiatimes.com; vivekk231@gmail.com
Keywords: Value Investing, Re-engineer, Customization, Mass Market
THE SITUATION IS UNPRECEDENTED

You get advice from all quarters. The advice look like: Evaluate your risks. Develop contingency plans. Focus on your core. Reduce cost. Expect the unexpected and so on. The unspoken objective is to: Survive or at the most maintain market share. However this alone will not be suffice.
The world has changed so much because of certain factors which were not there earlier like: Deregulation, Lowering of trade barriers, Technological advances, Demographic shifts, greater urbanization and Globalization. The strategies which worked a decade ago are unlikely to do so anymore. Smart companies perceive recession not just threats but also opportunities. Their Goal is to grow so that they can emerge stronger from the downturn. In fact during the great depression of 1930s, the companies like General Electric, Kellogg and Procter & Gamble outmaneuvered rivals to become leaders. They turned adversity into advantage in different ways. A quick analysis reveals one common thread. During the depression these companies developed
VALUE FOR MONEY STRATEGIES

Even before the slow down, in most of the developed countries though there was increase in house hold income over the past decade but it has favoured the top 20% of earners, while the spending power of most families has stagnated or declined. That is after paying for mortgages, vehicle loans; personal loans and taxes the families were finding it difficult to maintain their standards. Therefore they have become value shoppers rather than shoppers for premium goods. In developing countries the consumers are traditionally value conscious. Under these circumstances in both, the developing and the developed countries the Value for Money has become a strategic imperative. Various researches have shown that instead of refining cost cutting techniques, companies should develop cost innovation capabilities. They must learn to re-engineer their cost structure in novel ways so that they can offer customers more for less. That may not be good news for many U. S, European, and Japanese corporation who are used to creating premium segments.
Value-for-Money Strategies for Recessionary Times 557
As smart companies across the globe especially from the countries like India, China, Brazil has built cost innovation capabilities to unlock mass market. Innovation is traditionally associated with developing new products and services or adding more functionality and features to the existing ones. In both cases companies expect the customers to pay premium. The idea of innovating is to develop offerings that provide greater or almost the same functionality but at a lower price.
Some Executives May Regard it Silly

Why invest in research to sell products for less than the prevailing price. However smart companies in emerging markets have done just that to appeal to the great mass of value- conscious customers at home. Cost innovation strategies result in products or services that look inferior in some ways to the existing ones but are more affordable. There are three dimensions of Cost innovation. The 3 dimension to cost innovations are: 1. Selling High Tech products at mass market prices. 2. Offering choice and customization to value customers. 3. Turning premium niches into mass markets.
Selling High Tech Products at Mass Market Prices

Chinas BYD has rewritten the value for money equation in the Lithium-ion battery segment and emerged as global leader. When BYD entered the industry in 1995, four Japanese companies dominated the market. BYD focused on replacing the most expensive raw material used to make lithium ion cells with cheaper substitutes. They learnt to manufacture the batteries at room temperature and humidity thereby eliminating the needs to have expensive dry rooms in plants. BYD by re-engineering the processes and other innovative strategies was able to reduce the manufacturing cost from $40 to $12 making them competitive with lower performance, lower priced nickel-cadmium batteries. As BYD developed Lithium-ion cells for more segments, the costs continued to fall.
By 2007 its lithium ion products enjoyed 75% share of the cells used in cordless phones, 38% in toys, 30 % in power tools and 28% in mobile phones. Despite its low cost BYD never had an occasion to recall its products whereas Sanyo and Sony had to do so after their lithium ion batteries exploded in laptops. Thus establishing its superiority in quality also
Offering Choice and Customization to Value Customers

Customers usually have to pay a hefty premium if they want a large selection of products customized offerings. Chinese companies with its cheap manpower cost and innovative strategies have been able to do it. The best known example is Goodbaby, which sells customers 1600 types of children strollers, baby walkers tricycles etc. The Shanghai based company has a product that meets every need, from stroller that can handle uneven surfaces to those that fold away in two simple movements. It covers the entire price spectrum, selling Rolls Royce of Strollers for $600, as well inexpensive ones that retail for $30. One of its first products was a stroller that could be converted into a childs car seat, enabling cash strapped parents to do two jobs for the price of one. A $ 400 Million Company Goodbaby Could do this in Part Because it Invests 4 % of Its Annual Revenue in Research Twice the average of the toy industry world wide. It employs 220 designers at R&D centers in China, Germany, France, UK and Japan and it comes up, on an average two products a day. By 2008 Goodbaby controlled 80% of the Chinese Stroller market and 25 % of the US market. In India United spirits has maintained as Indias largest beverages manufacturer by using flexible processes to offer 140 brands of sprits to cover almost every price point in the market. This is the power of variety, which defiantly helps. In early 2000s the ITC, a $5 billon company diversified into ready -to-eat foods market and the grocery business selling staples such as flour and spices , confectionery products and snacks.
It also entered the personal care products business, offering fragrances, soaps, shampoos, conditioners etc. In both lines of businesses, ITC presents customers with a larger choice of products than most of its multinational rivals do. This has enabled the company to grab the prime display space in the small retail outlets and push rivals off the selves. Both variety and customization have been instrumental to the success of Shanghai Zhenhua Port Machinery (ZPMC) which controls 54% of the global market for harbor cranes. Tapping into Chinas lowcost pool of technical personnel, it employs 800 deigns engineers. Instead of experimenting into breakthrough technologies or developing functionality, these engineers focus on customizing standard designs. Every port layout and mix of operations is different, so ZPMC meets customers requirements by offering them huge choice of models and by customizing solutions quickly, which gives an edge over its rivals.
Turning Premium Niches into Mass Markets

Most companies define niche market as one that consists of relatively few customers willing to pay premium prices for goods and services that meet their specialized requirements. They do not realize that there may be wellspring of latent demand choked off by high prices and poor value for money offerings. Agile companies from emerging markets like Chinas Haier which has captured 60 % of the U.S Market for electric wine refrigerators in less than a decade- have shown how niche market can be turned into volume market. Through a temporary store set up in New Yorks Times Square, Haier sold 7,000 air conditioners in seven hours. A niche can blossom into surprisingly large value segment. In 2002 , Shinco, the largest manufacturer of DVD players in China, wished to enter the global market. It did not want to challenge, Sony, Panasonic and Samsung head on, so it chose to focus on portable DVD player segment first. Shinco found this niche attractive for three reasons: One, the price of portable DVD players was high relative to tabletop players, which gave Shinco room to increase the value customers would get.
Two, the demand for portable players was latent because the prevailing high prices were putting buyers off. Three, Shinco could leverage on error correction technology it had developed for handling pirated DVDs to compensate for the jumps that occurred when people used its players on cars and trains. Within months, Shinco lunched a portable DVD player that was 30% to 50% cheaper than competing products. According to one estimate, the market grew tenfold in the first year after its entry and Shinco became the industry leader with 30% share Companies do not lose money when they shift from high margin to high volume products and services. For instance, although cellular telephones are common thing now a days. Almost everybody from petty workers, rickshaw walla etc all have the luxury of mobile phones. It was not so when the services were launched in 1995, when right from hardware to services, all were very costly. Even the incoming calls were charged to the subscriber Gradually from class market to mass market, the transformation has been phenomenon and unprecedented.. The companies are still profitable although they generate only a quarter of the revenue their western counterparts are generating from a customer.
Go Beyond Low Cost Sourcing in Emerging Markets

Al most all companies in the developed markets source directly or indirectly from countries like India and China to cut costs. To grow, they must make bolder moves that involve relocating as many stages of the value chain as possible from R&D to customer service. Take the example of computer peripherals maker, Logitech which set up global production centre in Suzhou, China in 1994 and closed its plant in Ireland and US. When they felt that they are losing the competitive advantage, they added a major design centre in 2005 Eighty designers work at the Suzhou facility. And the number will soon double, since Logitech is shifting most of its product development there. Several other companies are doing the same. Foreign firms were operating 700 R& D centers in China by 2008..
The strategy is : to develop the products in the emerging markets and bring them home. Combine your capabilities with those of the emerging giants.
Invest in growing mass markets in developing countries. Clearly companies in emerging markets are transforming value for money equation. Rather than waiting for the recession to run its course the big multinational corporation who were leaders have to change their mind set and adopt innovative strategies to counter the threat of recession in the wake of fierce competition.
REFERENCE
Harvard Business Review (South Asia) March 2009.
Effective Cost Management Tools for Competitive Advantage

Neeta Sahu and Mishu Agarwal
E-mail: nsahu@akgim.edu.in
ABSTRACT
Purpose: To survive in global recession, competitive advantage in the organized sector in India is the need of the hour. Basic purpose of this paper is to discuss some innovative cost management and cost control tools which can be very effectively implemented to improve competitiveness in terms of cost, quality and profitability. To succeed in the present dynamic business environment, tools and strategies such as JIT, ABC, TQM, process re-engineering, life cycle assessment and target costing would greatly enhance the ability of corporations to meet global competition. Findings and Practical Implications: The successful companies are no longer competing on single dimension such as cost. Instead, companies must excel on two or more of the strategic elements. They must not only focus on low cost product additionally, maintain high quality and consumer service level. There is a shift in corporate strategy from product driven to market driven. Various new tools of costing will be helpful for the companies to achieve their long term and short term goal. In Indian context TATA Motors has implemented the concept of Target Costing in their car NANO and set a trend for many global players too. Keywords: Activity Based Costing, JIT, Kaizen, Target Costing, Backflush Costing
Effective Cost Management Tools for Competitive Advantage 563
INTRODUCTION
Competitive advantage for the organized sector in India is the need of the hour and many companies in India are adopting various innovative techniques for cost reduction along with quality production.
TARGET COSTING Target costing originated in Japan in the 1960s, where it is known as Genka Kikaku. It is such a costing system where the management considers it as a profit planning system. Target costing is a tool for the reduction of overall cost of production over its product life cycle. This is also used as pricing tool in which determination of product price is done according to market condition and company profit goals. Target costing is an important tool because it promotes cost consciousness and focuses on profit margin, both of which strengthen an organizations competitive position. It is not a technique that attempts to slash cost by trimming functions or closing departments; it is a steady and never-ending process to make sure that costs are always kept within to a minimum. Target cost = Planned selling price Required profit CONCEPTUAL ANALYSIS
Product requirement and market analysis
Target price less required profit margin

Balance target cost and requirement
Make or buy Analysis Suppliers Target Costing
Search and analyze different alternatives of product and process design
Cost projections
DEMA and Value Analysis Production
Continuous Cost Reduction i.e.
Kaizen Costing
For Example: Target costing and Tata Nano are synonyms. Tata Nano is one of the major projects launched by the Tata Motors in January 10, 2008, which had been originally started four years back in 2003. It is one of the latest examples of the target cost management by Indian automobile industry how an Indian company fixed the target price according to market condition and, based on that, they controlled cost during designing and production stage of the product. The target price of Tata Nano have been decided four years and, even after rapid increases of inflation, they maintained the price of Rs. 1 lakh. After the analysis of data and information collected from various sources, Tata Motors adopted innovation and redesigning, packaging design, outsourcing of components, benchmarking with Maruti 800, supply-chain management, etc., as their cost-reduction strategy to supplement the target costing. Target Costing Steps Used by Indian Firms
Target selling price is set based on customer expectations and sales forecast.
Establish profit margin based on long-term profit objectives and projected volume
Determine target (allowable) cost per unit (selling price required profit margin)
Compare with
Estimate the current cost of the new product.
Estimate cost reduction targets for each component and productivity, using value engineering, value analysis, etc.
KAIZEN COSTING
Kaizen costing is a Japanese technique used to manage costs during a products planning and design stages and has been used by some Japanese firms for over twenty years. It is now widely used in Japan in industries such as electronics,
precision machinery and automobile. Its objective is to reduce current costs by using various improvement tools such as value engineering and functional analysis for each manufacturing facility. Kaizen is a Japanese word means change for better, i.e. continuous improvement with involvement of everyone in the organization to generate value for customer. It is basically based on the belief that there will be no progress if you keep on doing things exactly the same way all the time. Kaizen focuses upon process oriented thinking as opposed to result-oriented thinking. Many Indian firms like Tata Motors, Hero Honda and L&T are using Kaizen costing for the continuous improvement of their process and distribution system to minimize their cost.
ACTIVITY-BASED COSTING (ABC) This costing has emerged in the late 1980s as an alternative to traditional costing system to accumulate the cost of an object. The basic objective of the ABC system is to use only cause and effect in cost allocation. This system focuses on activity as a fundamental cost, objects and sues the costs of these activities as building blocks for compiling the cost on other objects. ABC can be defined as: C/A=HD+M+E+S Where C/A = estimated cost per activity, H = number of labor hours required to perform the activity one time. D = wages per labor hour, M = material cost required to performance the activity one time, E = equipment costs to perform the activity one time, S = sub contracting costs to perform the activity one time. Nowadays, due to recession and global economic crisis, most of the Indian companies are identifying and eliminating non-value added activities and accordingly minimizing cost of service and product to sustain in global market.
Major Steps of ABC System
Identifying major activities Assigning costs to activity cost centers Identify support activity Selecting cost drivers for allocating cost to cost centers Allocating the cost of an activity to cost objects on the basis of cost drivers
Benchmarking
The world benchmark is a reference or measurement standard used for comparison and it is a continuous process of identifying, understanding and adapting best
practice and processes, which result in superior performance along with cost effectiveness. Stamatas (1997) has defined benchmarking as the process of gathering, analyzing and evaluating the world on outside your organization and comparing it to your own. The finding and the results of this process becomes the vital foundation and basis of your improvement. A systematic and continuous measurement process; a process of continuously comparing and measuring an organizations business process against business leaders anywhere in the world, to gain information that will help the organization take action to improve its performance.
Organizational Culture
BENCHMARKING
Performance Evaluation
Strategic Policies
Training for Improved skills
Reward & recognition by motivation
Resource Availability
In any enterprise, types of benchmarking have emerged as performance, process and strategic. The performance involve pricing, technical, quality and features whereas and employee training. The strategic benchmarking includes competitive advantages and market success. Benchmarking and Tata Nano: Benchmarking involves the process of making comparison the strategic of the worlds best establishments and analyzing and learning form their strategic development of Nano, Tata Motors treated Maruti 800 car as benchmark. In terms of acceleration and drive ability, it should at least equal the Maruti 800 and, in some areas, it should excel it. For that purpose, they used world-class benchmarking to improve the quality with cost reduction at global level. The performance involve pricing, technical, quality and features whereas and employee training.
JIT (System) Analysis

Just-in-time (JIT) inventory management system is part of a manufacturing approach that seeks to reduce the companys operating cycle and associated costs by eliminating wasteful procedures. It is based on the idea that all required inventory items should be supplied to the production process at exactly the right time and in exactly the right quantities. This approach was first developed by the Toyota Motor Company in the 1950s. In contrast, inventory models used in many plants, which rely on safety stocks, sometimes, are referred to as just in case models. Many related terms described the JIT approach such as MAN (material as needed), MIPS (minimum inventory production system), and ZIPS (zero inventory production system).
Backflush Costing
Backflush costing, a precise method is associated with modern manufacturing methods and companies which sustain low or no inventory. Hammer et al (1993) describes is as a method of costing associated with a JIT (Just in time) production system, which applies cost to the output of a process. Costs do not mirror the flow of products through the production process, but are attached to output produced, i.e. finished goods stock and cost of sales, on the assumption that such back flushed costs are a realistic measure of the actual costs incurred. It is a costing system that delays recording some or all of the journal entries relating to the cycle from purchase of direct material to the sale of finished goods. Backflush costing is most suitable when used to go together a just-in-time inventory management system or to assist an activity-based costing system. This is due to the fact that backflush costing simplifies the costing process in these situations.
Suggestions for Indian Companies

In the era of global recession, it is essential for all companies to cut their cost to face the competition, which is why, many Indian companies are focusing on the cost-cutting through retrenchment of their excess employees or non-performance employing, or are cutting the various facilities, welfare measures to minimize their cost. After the analysis of facts and their cost reduction methodology, the following suggestions are offered to the Indian industry to reduce and maintain their cost in this global competition. First step, to adopt Kaizen costing for enhancing manufacturing innovation Second step, to use target costing for research & development innovation.
Third Step, to implement Green Kaizen and target costing Fourth step, to have overall cost management during the production process. Target costing and kaizen costing are also suggested for sustainability and innovation. These two pillars can drive the bottom-line of the Indian industry in short run and in long run. Along with the improvement of quality of product, they have to use target costing and Kaizen costing as a cost management process. Drivers such as automations, efficiency, adequate, research, etc., will help the industry move up the value chain, which help in the sustenance within the industry. Similarly, elimination of all form of waste, non-value-added activities and development of high level of efficiency in manufacturing process will help Indian industries to remain competitive in global market. And, therefore, to survive in global recession, creativity, innovation and cost control are very important tools.
REFERENCES
A Lakshminarasimha and Vivek Krishna K, Cost Management Tools for Competitive Advantage: Lean and Target Costing for Todays Industry. CMA Ashok Panigrahi Cost Management Strategies in an Economic Crisis: Secret of Survival and Success. G.L. Sharma and P.K. Gupta Activity Based Costing :Strategic Implications for Indian Companies, LBS Journal of Management & Research. Govindrajan V and B Ramamurthy (1983). Transfer Pricing Policies in Indian companies: a survey, The Chartered Accountant, November. Horngren,C and Foster, G.1987.Cost Accounting-A Managerial Emphasis. NJ: Prentice-Hall. Kaizen Costing and Value Analysis (October 2001), Industrial & Financial Systems Manoj Anand, B.S. Sahay, Subhashish Saha Cost Management Practices in India: An Empirical Study. Salma Ahemad (1999), Accounting Systems The Power of ABC, The Chartered Accountant, ICAI, Delhi, June. Shank, J.K. and Govindrajan, (fall 992) Strategic cost management: the value chain perspective, Journal of Management Accounting Research, Vol. 4, Fall 1992. Shank,J.K. and Govindrajan, V.: Strategic cost management-The New Tool for Competitive Advantage, The Free Press, A division of Macmilan Inc. New York. Website of Indian Institute of Cost and Management Accounting www.icwai.org.
Presentation of Financial Statements, Requirements of Indian Companies Act 1956

Satish Thukral, Vishal Gupta and Tejaswi Bhardwaj
E-mail: skthukral@gmail.com; Benevolent.vishal@gmail.com; tejaswwi@gmail
Keywords: Companies Act, Shareholders Funds, Sources of Funds, Application of Funds
INTRODUCTION
Corporate entities registered in India are primarily guided by Indian Companies Act1956. Every company is required to keep proper books of accounts showing all money received and spent and the details thereof. As per the provisions of the Companies Act, 1956 proper books of accounts shall not be deemed to be kept if such books are insufficient to give a true and fair view of state of affairs of a company. Two essential conditions are to be satisfied for a set of books of accounts to be called proper books of account.
1. Double entry accounting is followed while recording the transactions. 2. The books of accounts are maintained on accrual basis. Sec 209 of the Companies Act, 1956 states that proper books of accounts shall be maintained at the companys registered office unless Board of Directors decides to keep them at another place. At the end of every accounting period each company comes out with a printed annual report, which is a public document.
FINANCIAL STATEMENTS
Sec 210 of the Act provides that at the annual general meeting, the Board of Directors of the company shall lay before members: 1. Balance Sheet at the end of the accounting period reflecting a true and fair view of the state of affairs of the company; and 2. Profit and Loss account for the period showing a true and fair view of profit or loss of the company. Such balance sheet and profit and loss account shall be prepared as per schedule VI to the Companies Act 1956.
Schedule VI has Four Parts

Part-I: It gives the detail of format of a balance sheet. As per Part I the balance sheet can be prepared either in horizontal or in vertical form. However most of the companies in India are now following vertical format of balance sheet. Part-II: It gives the requirements as to profit and loss account. It does not exhibit a format of the profit and loss account. Therefore, a company may follow its own format of profit and loss account. Part II requires that some quantitative details as well (e.g., quantity of raw material consumed, the opening and closing stock of goods in quantity etc.) Part-III: It gives interpretation of certain terms used in earlier parts. Part-IV: It deals with balance sheet abstract and the companys General Business Profile
Presentation of Financial Statements, Requirements of Indian Companies Act 1956 571
Vertical form of Balance Sheet Name of company Balance Sheet as at

Schedule No. 1. 2. Figures as at the end of Current Financial year 3. Figures as at the end of previous Financial year 4.
Sources of funds 1. Shareholders funds: (a) Capital (b) Reserves and surplus 2. Loan funds: (a) Secured loans (b) Unsecured loans
Application of Funds
1. Fixed Assets: (a) Gross Block (b) Less Depreciation (c ) Net Block (c) Capital work in progress 2. Investments 3. Current Assets, loans and advances (a) Inventories (b) Sundry Debtors (c) Cash and bank balance (d) Other current assets (e) Loans and advances Less:Current Liabilities and provisions: (a) Liabilities (b) Provisions Net current assets 4. (a) Miscellaneous expenditure to the extent not written off or adjusted. (b) Profit and loss account Total
Notes 1. Details under each item shall be given in separate schedules. The schedules shall incorporate all the information required to be given under horizontal form read with notes containing general instructions for preparation of balance sheet. 2. The schedules, referred to above, accounting policies and explanatory notes that may be attached shall form an integral part of the balance sheet . 3. The figures in the balance sheet may be rounded off to nearest 000 or 00 as may be convenient or may be expressed in terms of decimals of thousands.
4. A footnote to balance sheet may be added to show separately contingent liabilities.
Requirements as to Profit and Loss Account

1. The profit and loss account: (a) Shall be so made as clearly to disclose the results of the working of the company during period covered by the account; (b) Shall disclose every material feature, including credits or receipts and debits or expenses in respect of non-recurring transactions or transactions of an exceptional nature. 2. The profit and loss account shall set out the various items relating to income and expenditure of the company arranged under the most convenient heads; and in particular, shall disclose the following information in respect of the period covered by the account (i) (a) The turnover, that is, the aggregate amount for which sales are effected by the company, giving the amount of sales in respect of each class of goods dealt with by the company, indicating the quantities of such sales of each class separately. (b) Commission paid to the sole selling agents within the meaning of Sec 294 of the Act. (c) Commission paid to other selling agents. (d) Brokerage and discount on sales, other than the usual trade discount. (ii) In the case of manufacturing companies the value of raw material consumed, giving item-wise break-up and indicating the quantities thereof.
Part III: It Gives the Interpretation of Various Terms Used in Other Parts Part IV: It Deals with Balance Sheet Abstract and the Companys General Business Profile Giving Details Like
(a) (b) (c) (d) (e) Registration details. Capital raised during the year Position of Mobilization and deployment of funds Performance of company Generic names of three principal products/services of company.
Share Capital
This is the first item on the liabilities side (horizontal format)/ sources of funds side (vertical format) of the balance sheet. The requirement of schedule VI states that the share capital has to be distinguished into different classes (if any) and should be bifurcated into authorized, issued, subscribed and paid up capital. Example:
Rs. In lacs 2010 Share Capital Authorized: 1,50,00,000 (2009- 1,50,00,000) equity share of Rs. 10 each. Issued, subscribed and paid up: 1,47,00,000(2009-1,47,00,000) equity share of Rs. 10 each fully paid up. 2009
1500
1500
1470
1470
Of the above shares: * 1. 20,00,000(2009-20,00,000) shares were allotted as fully paid to Eskay Lab Ltd. U.K as part of purchase consideration for transfer of its business under the scheme of amalgamation, without payment being received in cash. ** 2. 97,00,000 ( 2009 97,00,000) shares were allotted as fully paid up Bonus shares by capitalization of reserve, share premium and general reserve.
Reserve and Surplus

Reserves are broadly of two types free reserves and specific reserves. Free reserve can be utilized for any purpose (e.g., for payment of dividend, distribution of bonus shares, deployment in the business expansion programme etc.) Specific reserves have specific use (e.g., debenture redemption reserve, investment allowance reserve) Specific reserves become free when the uses, for which these were created, are met. Surplus denotes the residue of profit left in the profit and loss account after distribution of dividend and transfer to reserves. Example:
Balance as at Ist April 2009 Reserve and Surplus Share premium Account Investment allowance reserve DRR Export allowance reserve General reserve Profit and loss account surplus Total Previous year total Credits during the year Debits during the year Balance as at 31st March 2010 Balance as at 31st March2009
Secured and Unsecured Loans

Secured loans are borrowings (short term or long term) against the security of companys assets. Borrowing can be unsecured also.
Example:
Note No. Secured loans LONG TERM Debentures Non convertible debentures Loans and advances from banks ECB Loans US $ 3 Million Term loan Loans and advances from others From Financial Institutions SHORT TERM Loans and advances from banks Cash Credit Accounts and Working Capital Demand Loans Unsecured loans Fixed deposits Other trade deposits Commercial paper As on 31st March 2010 As on 31st March 2009
Fixed Assets
It is first item in the application side of the balance sheet. It has to shown as gross block less depreciation and net block. Example:
Particulars Opening Balance as on 1.04.2009 Additions/ transfer Depre ciation/ adjust ments Gross Block as on 31.03. 2010 Accum ulated depre ciation as on 1.04.2009 Depre ciation during the year Depre ciation Adjus tment Total Depre ciation W.D.V As On 31.03.2010 W.D.V As On 31. 03. 2009
Land --------
Capital Work in Progress

It represents incomplete fixed assets. Assets, which are under construction, cannot be technically shown under fixed assets. Thus one cannot charge depreciation on incomplete assets. In order to classify an asset under the head fixed asset, it should be fully complete.
As on 31st March,2010 Construction and work in progress Materials with contractors Stock of construction stores & equipments Incidental expenses during construction Grand Total As on 31st March,2009
Investment
Requirement of schedule VI stipulate that the investments should be classified as: (a) Investment in Government or trust securities. (b) Investment in shares, debentures or bonds of companies. (c) Investment in immoveable properties. (d) Investment in the capital of partnership firms. Investment should be valued at cost or market price. Aggregate amount of companys quoted investment s and unquoted investment s should be shown separately. A statement of investments distinguishing between trade and other (non trade) investments should be annexed to the balance sheet. Trade investments are strategic long-term investments, which are made not for making short-term gains. Investments in subsidiary companies are trade investments.
Example:
As on 31st March,2010 Investments LONG TERM TRADE Quoted Unquoted OTHER THAN TRADE Quoted Unquoted CURRENT OTHER THAN TRADE Quoted Unquoted As on 31st March,2009
Current Assets, Loans & Advances

Current assets are those short-term assets, which are realizable within twelve months. Inventories, Debtors, Cash & Bank Balances are normal examples of current assets. Loans and advances denote advances recoverable in cash or in kind or for value to be received. Advances to employees, advance income tax, deposit with financial institutions/ statutory authorities, advance to suppliers etc. are shown under Loans and Advances.
Current Liabilities and Provisions

Current liabilities are short-term obligations repayable within next twelve months. Trade creditors, bills payable, expense creditors etc. are examples of current liabilities. Interest accrued but not due on loans / deposits are current liabilities whereas interests due on loans / deposits are shown under respective heads of loans / deposits.
Miscellaneous Expenditure
Items shown under this head are not assets, although they are shown in the asset side (horizontal format) of the balance sheet. Miscellaneous expenses are called deferred revenue expenditure. In other words, these are revenue expenses but it is not charged to profit and loss account in full in the year in which incurred. Rather these are written off over a period of time. Till they are charged to profit and loss account, they find a place in the balance sheet. That is why balance sheet is called list of unfinished jobs Share / Debenture issue expenses, discount on issue of shares /Debentures, preliminary expenses are Miscellaneous Expenditure. Abridged Financial Statements Sec 219(1)(b)(iv) of the Companies Act, 1956 empowers a company to prepare and furnish abridged financial statements for use of members and others who do not need full statements. The abridged financial statements include a balance sheet (without schedules), a profit and loss account (without schedules) and necessary notes to accounts (e.g., contingent liabilities, notes to which specific attention has been drawn by the auditors etc). However, Sec 219(1) of the act does not preclude an ordinary shareholder from demanding the complete (or unabridged) financial statements from the company. The abridged financial statements are prepared as per Form 23 AB of Companies (Central Government) General Rules and Forms, 1956. The abridged statements shall be audited by the auditors and approved by the Board of Directors.
Cultural Values of Luxury Customers Vs Luxury Bags Brands Values in Indian Market
Anuradha Modak Debnath
E-mail: anuradha@pearlacademy.com; anuradha.debnaths@gmail.com
A-21, Naraina Industrial Area Phase -2, New delhi
Keywords: Brand Values, Positioning, Cultural Values, Ethnocentric Values, Brand loyalty, Luxury Bag Brands, Communication Strategies
PURPOSE OF STUDY
The purpose of the paper is to understand whether Indian luxury customers (of age 18 to 35 years) cultural values are linked with luxury bags brands values (this paper is related to two luxury bags brands, which are present in Indian market). To further investigate how the link between the cultural value and brand value can effect in gaining loyalty in luxury bags market segment. The paper is based on a descriptive research. Results show the linkage between luxury bags brands and Indian luxury customers value, which will further help the luxury bags brands to work on corrective communication strategies and gain more loyal customers in a process of time.
SCOPE AND LIMITATION

The scope of paper is limited to New Delhi and Mumbai. The target age group
selected is only between 18to 35 years. The reason for it is Indian luxury market is at a very nascent stage. This paper will help the luxury bags brands to create appropriate communication strategies for the brands and in long terms gain better brand loyalty in the luxury market. This paper is one of the various studies related cultural values, brand values affecting the brand loyalty.
LITERATURE REVIEW Luxury Consumption

The term luxury is routinely used in our everyday life to refer to products, services or a certain lifestyle, however, often without a clear understanding of the luxury concept as it takes on many different forms for different people and is dependent on the mood and experience of the consumer. As per the theories of luxury consumption: Snob effect as explained by Leibenstein (1950). In this case consumer doesnt prefer to buy the product more as the number of the preference for the product is increasing in the market. And Bandwagon effect, where a person buys a luxury products because others are buying it. In terms of materialistic consumption (luxury consumption is treated as high with materialistic consumption to support this Belk, (1995), possessions help define our selves and often through materialistic acquisition consumers can measure their success.
Cultural Values
Previous research into cultural issues has shown that culture can have a strong influence on the Values, perceptions and actions exhibited by any consumer (Trompenaars, 1994; Chow, Deng and Ho 2000) While there has been ample study into the impact of culture on the marketing mix, few researchers have examined how cultural dimensions influence a consumers general proneness to brand loyalty Luxury is a main factor that differentiates a brand in a product category, (Allrs 1991; Kapferer 1997) and a central driver of consumer preference and usage (Dubois and Duquesne 1993). Nevertheless, although the luxury market has been increasing greatly over the last decade and the marketing literature has recently seen substantial interest in the study of luxury brands, little is known about how to best market and monitor luxury brands (Vigneron and Johnson 1999). Hofstedes cultural dimensions prove insightful and are often employed as the basis for cultural differentiation (Liu, Sudharshan and Hamer, 2000). As per the cultural dimension following parameters are included:
Cultural Values of Luxury Customers Vs Luxury Bags Brands Values in Indian Market 581
Individualism: Individualism is the degree to which members within a society integrate into groups. This dimension refers to an individuals attitude towards the concept of self (Dawar, Parker and Price, 1996). As opposed to collectivism where group goals have priority, individualism occurs when personal goals have priority (Triandis, 1995). Masculinity: Is a preference for assertiveness, achievement and material success; contrasted with femininity, which emphasizes relationships, modesty and caring for the weak (Hofstede, 1980). Individuals with high masculinity tend to assert more control over their own decision-making processes. Power Distance: Is the extent to which the members within a society accept and expect the power in organizations, and society, to be distributed unequally (James, 1995). Uncertainty Avoidance: Is the extent to which a culture programs its members to feel Uncomfortable in unstructured, novel, unknown, surprising or unusual situations (Hofstede, 1980). Brand Loyalty: Brand loyalty is often considered in conjunction with creating long-tern relationships with customers, or the acquisition of regular customers, in lieu of the traditional goal of short-term sales. A psychological component was introduced to the definition of brand loyalty by Jacoby and Chestnut (1978). Jacoby and Chestnut defined brand loyalty as the behavioral response expressed over time by some decision-making unit, with respect to one or more alternative brands out of a set of such brands, and is a function of psychological processes
Research Design
The study is descriptive by nature; it involves quantitative and qualitative data collection through Interviews & questionnaire.
Questionnaire Design
Questionnaire to collect the data needed for this research. The Questionnaire was designed for the consumers of luxury brands in New Delhi and Mumbai in order to get their insight view on cultural values and match with brand values of the new rich segment in between the age group of 20 to 35 years. Keeping in mind Hofstedes four cultural dimensions and its relationship with buying luxury brands.
Snowball Effect
The snowball effect was used to select the right candidates for customers survey.
Interviews
3 Expert interviews were taken to understand 3luxury brand bags (Louis Vuitton (LV), Christian Dior (CD), Fendi ) same parameters were measured Table 1: Finding of interviews:
LV Individualistic Power Distance Masculinity High High Medium Dior (CD) low Low Medium Fendi Medium Medium Medium
Analysis and Discussion

Based on Hofstedes four cultural dimensions (3 parameters were studied) following analysis was done. In a sample of 40 respondent of age in between 20- 35 years following responses were collected
Individualism
Table 2: Findings
Do you buy luxury bags based on your group reaction / peer pressure? Do you buy luxury bag based on your own self concept about yourself? Do you make your own decision making process related to buying any particular luxury brands bag ? More / Yes ( profile: traditional people, age between 30-35 years ) 25% of respondent Profile :New Rich Age :18-25 years 76% of the respondent feels so. Profile : New rich Age : 18-25 years 88% of respondent Neutral/ both Profile :traditional and new rich Age :26-30 years 05% of respondent Profile :Traditional rich and new rich both 4% of respondent Profile :Traditional rich and new rich both 22% of the respondent Less/No Profile : New Rich Age : 18-25 years 70% of respondent Profile :Traditional rich and new rich both 20% of respondent
From the above table its very clear that majority of respondent are individualist by value, which match with the background of luxury bags brand. Mainly the respondent who are more individualist they are young between 18 to 25 years prefer to follow their own decision making and have their own priority. This show the max. Population is individualistic by nature. This result is very much support the luxury brand theory of Snob effect.
Masculinity
Table 3: Findings
Buying Luxury bag is a important possession Yes Profile : New Rich Age : 18-25 78% of the respondents Profile : New Rich Age 18 to 25 years 76% Neutral /both No Profile :New Rich and Traditional 22% of the respondents Profile :New Rich and Traditional 24% of the respondents
Buying a luxury bag : Is all about material success
The Majority of response shows that the sample selected (which is mainly between 18-35 years) is showing a masculine behavior : which include possession and material success as important component. It shows that the youth populations who are part of new rich community are masculine by nature. This finding very much supports the luxury materialistic consumption theory associated with luxury brands.
Uncertainty Avoidance
Table 4: Findings
If you dont get the desired design in your favorite brand: then will you shift to something else
Yes Profile: New Rich Age : 18-25 years 18%
Depends
No/ Never Profile : Traditional Rich Age :30-35years 82%
The older population between30-35 are more luxury brand loyal compared to 18-25 years. Grapping the attention of the 18 to 25 years ( New rich) customer is
very tough as they are more influenced by masses and reference group or reference leader. Correlating quantitative and qualitative data: Louis Vuitton (LV )is more popular in young new rich segment compared to Dior (CD )which is more popular in 30-35 years traditional rich segment.
CONCLUSION
In Country like India, where Luxury is at a very nascent stage. Still it has affected Indian cultural values a lot. The young generation, the new rich customer segment of luxury market follows a completely different set values compared to the traditional rich luxury consumers.
REFERENCES
Allrs, D. (1991) cited from Wiedmann, Hennigs, Siebels ( 2007 ),Measuring Consumer Luxury Value Perception,A cross cultural framework, Academy of Marketing Science Review volume 2007 no. 7. Belk, R. W. (1995), Materialism: Trait Aspects of Living in the Material World. Journal of Consumer Research. China. Journal of Management Accounting Research. Chow, C.W., Deng, J.F., Ho, J.L., (2000), The Openness of Knowledge Sharing within Dubois, Bernard and Patrick Duquesne. (1993). The market for luxury goods: Income versus culture. European Journal of Marketing. Hofstede, G., (1980). Cultures Consequences: International Differences in Work-Related James, D.L., (1995). The Executive Guide to Asia-Pacific Communications. Allen & Unwin, Australia. Jacoby, J. and R.W. Chestnut (1978) Brand Loyalty: Measurement and Management. New York: Wiley. Organizations: A Comparative Study of the United States and the Peoples Republic of Values. Sage Publications, Beverly Hills. Kapferer, Jean-Noel. (1997). Managing luxury brands ,Journal of Brand Management.
Leibenstein, Harvey (1950), Bandwagon, Snob, and Veblen Effects in the Theory of Consumers Demand, Quarterly,Journal of Economics, Liu, B.S., Sudharshan, D., Hamer, L.O., (2000.) After-Service Response in Service Quality. Assessment: a Real-Time Updating Model Approach. Journal of Service Marketing. Triandis, H.C., (1995.) Individualism & Collectivism. Westview Press, USA. Vigneron, Franck and Lester W. Johnson. (1999). A review and a conceptual framework of prestige-seeking consumer behavior,Academy of Marketing Science Review. Available: http://www.amsreview.org/articles/wiedmann07-2007.pdf.
Microfinance in Indian Rural Areas

Mohit Sharma, Rajeev Kumar Singh1 and Devesh Gupta2
Bhagwant University, Ajmer Ajmer Institute of Techonology, Ajmer 2 Shiv Dan Singh Institute of Management, Aligarh
1
INTRODUCTION
Micro credit is the extension of small loans to entrepreneurs too poor to qualify for traditional bank loans. Micro-credit differ, of course, from country to county but some of the defining criteria used include: Size: loans are micro, or very small in size Target users: micro entrepreneurs and low-income households Utilization: the use of funds for income generation, and enterprise development, but also for community use (health/education) etc. Terms and conditions: most terms and conditions for micro credit loans are flexible and easy to understand, and suited to the local conditions of the community. Micro credit is the extension of small loans to entrepreneurs too poor to qualify for traditional bank loans. It has proven an effective and popular measure in the ongoing struggle against poverty, enabling those without access to leading institutions to borrow at bank rates, and start small business.
Microfinance in Indian Rural Areas 587
The microfinance groups have adopted different methodolies in different parts of the world as given below: 1. Individual Credit: Credit given directly to the individuals also forms a part of the microfinance technology. BRI-Unit Desa in Indonesia as well as priority sector lending by the regional rural banks and cooperative banks in India comes under this category. 2. The Group Approach: The group approach delegates the entire financial process to the group rather than the financial institutions. Savings loans, loan repayments are taken care of at the group level. 3. Community Banking: This mode is to extend an expansion of the group approach where the basic financial necessities of the poor especially the women are met through the community banking system. 4. Credit Unions and Cooperatives: Credit unions and cooperatives are member-owned organizations providing credit and other financial services to their members. (SANSA of Sri Lanka). 5. Grameen and Solidarity Model: People form groups of three to eight persons on the condition that each of them would be assuming, responsibility for the lending and other financial operations for the other members of the group (Grameen Bank in Bangladesh) There are three different models. In Model I SHGs are formed and extended credit by the banks; in Model II SHGs are formed by the NGOs but credit extended by the banks; in Model III NGOs in addition to forming SHGs, avail bulk loan from banks for lending to SHGs.
SELF HELP GROUP?

A Self Help Group is an informal association of 10-15 men/women, who have voluntarily come together for the business of saving and credit and to enhance the members financial security as primary focus and other common interests of members such as area development, awareness, motivation, leadership, training and associating in other social intermediation programmes for the benefit of the entire community.
OBJECTIVES
To include the savings and banking habits among members. To secure them from financial, technical and moral strengths,
To enable availing of loan for productive purposes, To gain economic prosperity through loan/credit and To gain from collective wisdom in organizing and managing their own finance and distributing the benefits among themselves. The micro credit may be 1. Agriculture micro credit, 2. Weaker Section Micro Credit (WSMC), and 3. SHG micro credit. This paper attempts to examine the SHG micro credit in the context of rural development of India.
Rural Development
The term rural development is used in different ways and in vastly divergent contexts. As a concept, it connotes overall development of rural areas with a view to improve the quality of life of rural people. In this sense, it is comprehensive and multidimensional concept and encompasses the development of agriculture and allied activities-village and cottage industries and crafts, socio-economic infrastructure, community services and facilities, and above all, the human resources in rural areas. The informal sector for rural finance is age-old. It consists primarily of rural money lenders, traders, merchants etc. The formal sector was set up in the Planning era and the banks were nationalized to extend support to the rural financial institutions like Cooperatives. Although the contribution of moneylenders is not recorded properly but they have definitely been an important player of the rural economy. Table showing Agency-wise Ground Level Credit Flow for Agriculture and Allied Activities
Agency Cooperative Banks RRBs Commercial Banks Total 2005-06 31,424 12,404 81,481 1,25,309 2006-07 39,404 15,223 1,25,859 1,80,486 2007-08 33,174 15,170 1,00,999 1,49,343 2008-09 36573 17188 120523 1,74284 2009-10 45483 20952 139186 2,05,621
Self Help Groups A New Beginning

However, the inherent limitations of the financial and informal sector have not allowed the poor to take full advantage of their services. The first step towards setting up self-help groups (SHGs) was taken by Mysore Resettlement and Development Agency (MYRADA), which built upon rural chit funds and informal lending networks to evolve a credit management group. On the basis of the recommendations of the Reserve Bank of India (RBI) a working group was set up in 1994, procedures for dealing with the informal legal SHG structure were then firmed up in 1996. Several NGOs were also influenced by the success of the Bangladeshi grameen bank concept of Mohammad Yunus. The world has recognized the gravity of rural indebtedness in developing and underdeveloped countries and a consensus emerged for designing and implementing poverty alleviation schemes in such a manner that the poor would be encouraged to take loans for productive economic activities of their own. The poor in these countries are encouraged to form small groups of people having relatively equal economic status where mutual thrift and credit activities are initiated for meeting their emerging credit needs. The United Nations General Assembly designated 2005 the International Year of Micro Credit. The year has seen the launch of a wide array of programmes throughout the UN system to raise public awareness about micro credit and micro finance, while promoting partnerships and innovation among governments, donors, international organizations, NGOs, the private sector and microfinance institutions (MFIs). Micro finance has already made a positive impact on the quality of life of millions of poor people by providing greater access to credit, savings, insurance, transfer remittances, and other financial services which would otherwise be unreachable. Unlike normal credit, micro credit is limited with collateral substitute and credit plus services. Micro credit becomes distinct from other regular credits where not only credit amount is small and clientele is poor, but also credit is provided with collateral substitute instead of traditional collateral and non-financial services for increasing the productivity of credit.
NABARD & Self Help Groups

NABARD has been making continuous efforts through its micro-finance programme for improving the access of the rural poor to formal institutional credit. The Self Help Group (SHG)-Bank Linkage Programme was introduced in 1992 as a mechanism to provide the poor in rural areas, at their door-step easy and self-
managed access to formal financial services on a sustainable basis by enabling them to gain access to banking services in a cost-effective manner. In all, 547 banks (47 commercial banks) are now actively involved in the operation of this programme. Micro credit has now become a global initiative and is considered as an important agenda of Millennium Development Goals (MDGs) set by the United Nation. The importance of micro-credit led the world to announce the year 2005 as the International Year on Micro-credit to assess and promote the contribution of micro-credit towards achieving the MDG. The overall objective of MDGs is to reduce the proportion of the people living in extreme poverty to half of 1990 levels by 2015.
Self Help Groups and Cooperatives

Cooperative Banks in India have also started making forays into micro-finance sector. Amendments made by various States in their respective cooperative Societies Acts have enabled cooperative banks to take up the activity of promoting and nurturing of SHGs linked to bank credit. The government has also urged the cooperative banks to provide funds to Self-Help Groups at an interest rate of less than 9%. Efforts are under way by NABARD, NCUI and Cooperative Banks to promote Self-Help Groups bank linkage programme and through this process help the marganizalized sections of our society particularly small and marginal farmers to gain access to Cooperative Credit. Acceleration of the process of micro-finance is helping in promoting the Millennium Development Goal of poverty reduction proclaimed by the United Nations. Microfinance has been found as the appropriate approach and effective tool for poverty alleviation and empowerment, which can be internalized into cooperative system through strategic and legal support, keeping in view long term sustainability of microfinance within cooperative functioning.
Some Limitations
A major handicap of the informal structure of SHGs is the absence of a good auditing and maintenance mechanism. The entire thrust is on formation and bank linkage. Unfortunately, several groups, particularly whose which are formed hastily and artificially, receive little attention for continued activity once government handouts for group formation and training are drawn by facilitators. Hence, they tend to stop functioning after some time, which implies that hard
earned savings of group members fall into the hands of the last set of borrowers and are then not recovered. The need for inspection and audit cannot be denied even where groups have only mobilized their own savings and have not yet accessed bank finance. SHG federations could do the audit or facilitators themselves could be trained and supervised for the purpose. Also it is reported that SHGs do not promote heterogeneity. According to the report the micro-credit based self help groups appear to be caste driven. Equally disturbing is the fact that these groups, which were meant to empower the weaker sections, including women, and address their social needs, seem to push them further into marginalization as they corner the benefits of micro-financing.
BIBLIOGRAPHY
Bhagwati Prasad Cooperative Sector-Changes Required to Operationally Internalize Concept of Micro-Finance, 2006, The Cooperator, February, 2006, p. 356. Economic and Political Weekly, March 19, 2005. K. K. Tripathy , Micro Credit Intervention and poverty Alleviation, Kurukshetra, September 2006, p. 5. Kurukshetra, March 2006 Impact of Self Help Groups on income and Employment : A case study, p. 19. Kurukshetra, September 2006 p. 6. M. Soundaapandian, Micro Finance for Rural Entrepreneurs Issues and Strategies, Kurukshetra, September 2006, p. 14. Su, (2007), From Marginal Tinkering to Major Changes, Economic and Political Weekly, p. 350. The World Micro Credit Summit, Washington, Feb. 1997. www.nabard.org.
International Marketing Strategy in the Era of Globalization

Prashant P. Deshpande
S.N.D.T. Womens University, Mumbai, Maharashtra
E-mail: pdeshpande107@gmail.com
INTRODUCTION
Globalization in the world economy has led to a rapid growth in world trade in recent times. Resulting in the emergence of a borderless and an increasingly interdependent global economy, characterised by faster communication, transportation and financial flows, creating in turn, new marketing opportunities and challenges. The emergence of a borderless economy is also characterised by global sourcing and an increasing number of strategic alliances between companies from different countries. These changes, in turn, have been accelerated by developments in technology and in particular, by the adoption of information technologies in business operations, giving rise to the concept of a global village. The recent past had witnessed the emergence of Japan as a world economic power and the subsequent domination by Japanese firms of many European and North American markets. The pressures have increased further with the emergence of a second wave of new and aggressive competition with the growth of the newly industrialized countries (NICs), such as, Taiwan, Singapore, South Korea, India, Hong Kong, China and Malaysia.
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New markets have also been opening up as a consequence of free trade policies as a dominant political force in the world. Thus, while late 80s saw the opening up of the Central and East European markets with the dissolution of the Soviet Union, the 90s is witness to a gradual opening up of China as also, some Arab Countries to the world trade. The triad economy US, Japan, and Europe, which together accounts for 85% of world trade, however, still remains a dominant force in world trade. There has also been an increasing trend towards regional integration, reflected in the creation of the Single European Market and the North American Free Trade Area. Regional groupings have also been emerging in Asia. With the great pressures of the changing international environment and the changing bases of competition within many markets, opportunities to survive with a purely domestic strategy are therefore becoming increasingly limited. Many companies in both product and service markets are therefore, forced to develop an international marketing orientation in order to survive. Given these circumstances, the companies now have to make a choice , either respond to the challenges posed by this new environment or recognize and accept the long-term consequences of failing to do so. This change is not confined to firms of a particular size or to any particular industry, but is likely to affect companies of all sizes in virtually all markets. Because of these pressures, the governments throughout the world are encouraging and even pressurizing the companies to become involved in international markets. For this, they are providing the companies, export assistance programmes and information services. While such export promotion programmes exist in virtually all developed countries, many governments of the developing countries have also followed suit, in the hope that international markets will help in the economic growth of their economies. Factors influencing Buyer behavior in international markets- A Theoretical insight Behaviour of a buyer is normally looked at from three angles : Consumer buying behavior; Business buying behavior; and, Government buying behavior Consumer buying behavior is influenced by many personal and social factors, such as, : Occupation;
Financial circumstances; Personality; Lifestyle, etc. Business buying behavior according to Webster and Wind is influenced by factors, such as: Environmental; Organizational; Buying centre or decision making unit; and, Individual. Government buying behavior is influenced by , the extent to which , public accountability for the expenditure of public money is thought important. Then, social and cultural factors also influence buyer behaviour substantially. The differences between these factors in different parts of the world, therefore, would play an important role in developing and implementing international marketing plans. Kotler identifies factors influencing the buying behavior as: Cultural; Social; Personal Psychological Understanding buyer behavior is thus central to the whole process of marketing. It is, therefore essential to understand, how buyer behavior in international markets is affected by social and cultural factors to enable the country to reap maximum benefit out of her international marketing efforts.
A Focus on Successful International Marketing StrategyCertain Reflections

According to Baker, firms face difficulties in international markets because of the following reasons: They do not have the resources to develop a sophisticated marketing process; They seek a market for an existing product, with which they have had considerable domestic experience, i.e., the company seeks to match need with its product, rather than develop a product to satisfy identified but unfulfilled need;
Few companies have a natural feel for a foreign market. As a result, their experience is limited and takes time to develop; Few companies possess a wealth of published data available in domestic markets, making the quantification and prediction of export markets more difficult. Companies and organizations planning to compete effectively in world markets, therefore need to devise a clear and well-focussed international marketing strategy, based on a thorough understanding of the markets in which the company is introducing its products. They must realise that international markets are changing, being dynamic entities, which requires constant monitoring and evaluation. Innovation, in this connection, proves to be an important competitive variable, not only in terms of the product or service, but throughout the marketing process. In modern times, counter trading, financial innovations, networking, and value-based marketing are all becoming increasingly important concepts in the implementation of a successful international marketing strategy. In addition to these , the companies also must keep in mind the ten most common general mistakes companies are said to make in their export marketing practice, as compiled by the US Department of Commerce, which include, inter alia: 1. A failure to obtain qualified export counseling and to develop a master plan for international marketing before starting; 2. An insufficient commitment on the part of top management to overcome initial difficulties and meet the financial requirements of exporting; 3. Insufficient care in selecting foreign distributors; 4. Chasing orders from around the world, instead of establishing a basis for profitable operations and orderly growth; 5. Neglecting export business when home markets boom; 6. A failure to treat international distributors on the same basis as their domestic counterparts; 7. A lack of willingness to modify products and to meet the regulations or cultural preferences of other countries; 8. A failure to print services and warranty messages in locally understood languages; 9. A failure to consider licensing or joint venture agreements; 10. A failure to consider the use of an export management company.
A consideration of these, then implies that, if companies are to compete effectively in international markets, they need to: (a) Adopt a distinct and strategic international marketing orientation; (b) Establish and make use of an international marketing information system; (c) Develop an international strategy that ensures that marketing efforts are targeted effectively. However, all said and done, underlying all these factors, is, the need for a fundamental change in attitude on the part of the managers, together with a recognition of the fact that, success in international markets can not be achieved in absence of a total commitment throughout the organization to the international marketing function. This commitment should reflect itself, not only in the product, but throughout the marketing strategy, recognizing the differing demands of the international market place.
Successful International Marketing Strategy for India in Present Times Various Initiatives Needed to be Taken by Industry and the Government Industry
(a) Focus on winning parameters, such as, responsiveness, timeliness, consistency, flexibility, communication and understanding of buyers perspective; (b) Realise the change in the role of the manufacturer from one of a product supplier to that of one providing service and capacity and change itself accordingly; (c) Improve its export market base by making a dent in newly emerging markets like South Africa, Latin America, West Asia and Far Eastern Asia etc.; (d) Make efforts to reach beyond the traditional markets with preparedness to spend on product development, promotion, advertising, trade show participation and on every form of communication in the international markets; (e) Focus on speed in supply chain management, brand creation and consumer focus, the matters that are assuming great importance in present times;
(f) Focus on continuous investment in more advanced technology and shifting of focus from manufacturing driven issues to marketing, value addition, product development and global alliances.
Government
(a) Establish a system by which the manufacturers might benchmark quality and performance against one-another and eventually against international competitors; (b) Explore and identify new markets; (c) Provide basic requirements of infrastructure, such as, improvement of roads, port facilities, and power availability, which will help in cutting down leadtime and improving the efficiency and productivity of individual exporters. Last but not the least, for constant growth in exports, the country should evolve a pragmatic strategy to cultivate intensively the markets having potentialities for her exports. Coordinated efforts on the part of planners, export-promotion agencies and units engaged in export marketing work are essential for the purpose. Finally, counteys export information system is needed to be overhauled for the purpose, so thst exporters are able to get appropriate information at appropriate time for making crucial decisions, such as, what to produce, how to produce how to design, where to sell and how to sell.
REFERENCES
Jain, Subhash C.; Environmental factors affecting international marketing; in International Marketing(6th edition); South-Western, Ohio; 2001; pp-185-282. NCAER; Export Marketing; in Export Strategy for India; NCAER , New Delhi; 1969; pp-84-100. Phillips, Chris, Isabel Doole, and Robin Lowe; International Marketing StrategyAnalysis, Development and Implementation, in An Introduction to Marketing; Routledge, London; 1994; pp-83-122. Singh, L. P. (ed) Gandhi, Jegdish P,; Export Marketing Strategy; Some Policy Issues, in Indian Economic Issues, Part-1; Pointer Publications, Jaipur; 2003; pp-.291-301.
Developing a Framework for Ethical Decision Making

Sub theme: Management
Poonam Khurana
CPJCHS, Delhi
E-mail: poonam_khurana05@yahoo.co.in
INTRODUCTION
The Oxford Dictionary defines ethics as the science of morals or morality and operationally it may be treated as a ....inquiry into the nature and background of morality, where the term morality is taken to mean moral judgments, standards and rules of conduct (Taylor, 1975). Websters Collegiate Dictionary defines ethics as the discipline dealing with what is good and bad and with moral duty and obligation, a set of moral principles or value or a theory or system of moral values. Ethics assists individuals in deciding when an act is moral or immoral, right or wrong. Ethics can be grounded in natural law, religious tenets, parental and family influence, educational experiences, life experiences, and cultural and societal expectations.
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Philosophical Roots of Ethical Frameworks

For the purpose of understanding individual ethical philosophy and behavior, it is important to know about the prevailing theories in the field of ethics. At the outset, the ethical theories may be divided into two fundamental types, Ideological and deontological. These two approaches entail different conclusions about what ought to be done. Teleological theories emphasize the importance of consequences of the actions or practices. The most widely studied Ideological theory is Utilitarianism. According to utilitarianism, an action or practice is right if it leads to the greatest possible balance of good consequences or to the least possible balance of bad consequences for all the people involved (Bayles, 1968). Deontologists (derived from the Greek word for duty), on the other hand, emphasize that actions are not justified only by their consequences and the concept of duty is independent of the concept of good. Deontological duties are from this perspective, an undeniable feature of business ethics. One of the most popular deontological theories is Categorical imperative given by Immanuel Kant (17241804) an eighteenth century philosopher. He emphasized on the performance of ones duty for the sake of duty and not for any other reason and insisted that all persons should act not only in accordance with duty but also for the sake of duty (Sullivan, 1989). The other popular deontology theories are related to the notion of justice and right. The theory of justice requires the decision-maker to be guided by the concepts of equity, fairness, and impartiality (Rawls, 1971) and a theory of right asserts that human beings have certain fundamental rights or entitlements that should be respected in all decisions (White, 1984). Thus, whereas utilitarians focus on ends, deontologists are more concerned with the means.
The Karma Theory

Preaching of Bhagvad Gita advocates that one has a choice in ones action, but never in results. The results are determined the moment the action is performed. One cannot avoid the fruit of action.. Therefore, individuals should only concentrate on their actions without worrying about the results (Swami Dayanand, 1999). Thus, Karma gives a metaphysical orientation to the concept of duty by saying that there is another superior force that controls the outcomes of an action.
The Doctrine of Moksh (Salvation)

All the Indian systems agree in believing that an action done by an individual leaves behind it some sort of potency, which has the power to ordain for him joy
or sorrow in the future accordingly (depending upon whether it is good or bad). It was believed that the unseen potency of the action generally required some time before it could be fit for giving the doer the merited punishment or enjoyment, which results in cycles of birth and rebirth. The ultimate aim of this life then is to free oneself from this cycle of birth and rebirth and attain salvation or Moksh.
FACTORS AFFECTING ETHICAL DECISION-MAKING

In general, there are three types of influences on ethical decision-making in business: (1) individual difference factors, (2) situational (organizational) factors, and (3) issue-related factors.
Individual Difference Factors

The individual difference factor that has received the most research support is cognitive moral development. This framework, developed by Lawrence Kohlberg in the 1960s and extended by Kohlberg and other researchers in the subsequent years, helps to explain why different people make different evaluations when confronted with the same ethical issue. It posits that an individuals level of moral development affects their ethical issue recognition, judgment, behavioral intentions, and behavior. According to the theory, individuals level of moral development passes through stages as they mature. Theoretically, there are three major levels of development. The lowest level of moral development is termed the preconventional level. The pre-conventional level of moral development is usually associated with small children or adolescents. The middle level of development is called the conventional level. At the stages of the conventional level, the individual assesses ethical issues on the basis of the fairness to others and a desire to conform to societal rules and expectations. According to Kohlberg, most adults operate at the conventional level of moral reasoning. The highest stage of moral development is the principled level. According to Kohlberg, a principled person looks inside him or herself and is less likely to be influenced by situational (organizational) expectations. The cognitive moral development framework is relevant to business ethics because it offers a powerful explanation of individual differences in ethical reasoning. Individuals at different levels of moral development are likely to think differently about ethical issues and resolve them differently.
Situational (organizational factors)

Individuals ethical issue recognition, judgment, and behavior are affected by contextual factors. In the business ethics context, the organizational factors that affect ethical decision-making include the work group, the supervisor, organizational policies and procedures, organizational codes of conduct, and the overall organizational culture.
Issue Related Factors

Conceptual research by Thomas Jones in the 1990s and subsequent empirical studies suggest that ethical issues in business must have a certain level of moral intensity before they will trigger ethical decision-making processes. In summary, business ethics is an exceedingly complicated area, one that has contemporary significance for all business practitioners.
INTERRELATIONSHIP OF VARIOUS FRAMEWORKS

Flexibility in ethical decision frameworks implies a use of multiple cognitive frameworks and variability in their use as per the situations as well as actor. In an earlier study (Bhal, 2000), flexibility in the use of frameworks in different situations found support. There are theorists that prescribe the use of Indian philosophy but there is little empirical work that studies the actual use of these philosophies by Indian managers.
NEW APPROACH TO MAKE BETTER DECISIONS

Every decision a manager makes starts not with a particular process but with a managers choice to base his or her decisions on ethical principles. At the core of ethical decision-making is the acceptance of two principles: We all have the power to decide what we do and what we say, and We are morally responsible for the consequences of our choices. While developing this alternative model, the two important conations have been developed: Every employee is called upon to make decisions in the normal course of doing his/her job. Organizations a not function effectively if employees are not empowered to make derisions consistent with their positions and responsibilities.
For the decision maker to be confident in the decisions efficacy, every decision should be tested against the organizations policies and values, applicable laws and regulations as well as the individual employees definition of what is right, fair, good and acceptable. The following list is adapted from Smart Choices by Hammond, et al.: 1. Work on the right decision problem. Be careful in stating the problem, and avoid unwarranted assumptions and option-limiting prejudices. 2. Specify your objectives. Determine what you want to accomplish, and which of your interests, values, concerns, fears, and aspirations are the most relevant. 3. Create imaginative alternatives. Alternatives represent different courses of action, and your decision can be no better than your best alternative. 4. Understand the consequences. Determine how well different alternatives satisfy all of your objectives. 5. Grapple with your tradeoffs. Since objectives frequently conflict with each other, it becomes necessary to choose among less-than-perfect possibilities. 6. Clarify your uncertainties. Confront uncertainty by judging the likelihood of different outcomes and assessing their possible impacts. 7. Think hard about your risk tolerance. In order to choose an alternative with an acceptable level of risk, become conscious of how much risk you can tolerate. 8. Consider linked decisions. Many important decisions are linked over time. The key to making a series of decisions is to isolate and resolve near-term issues while gathering information relevant to issues that will arise later.
CONCLUSION
This paper suggests that an inductively driven model is used for understanding, investigating, and predicting ethical decision making in organizations. The model offers insight into how managers think about ethical dilemmas and provides a way to typologize real world decision making phenomena based on Kohlbergs empirically grounded cognitive moral development model. It also posits a relationship between cognition and action based on other individual and situational variables. The proposed variables and relationships have been specified in propositions to aid future research.
SCOPE OF FURTHER STUDY

It offers an alternative model capable of ensuring that the ethical issues inherent in routine organizational situations could be effectively surfaced while making this model easy to use by people.
The proposed model can be used as a training tool and it holds several advantages over the extant alternatives as it offers a comprehensive decision making model that can be used to examine ethical decisions for leaders and managers.
REFERENCES
Bayles M.D. (1968) Contemporary Utilitarianism. Doubleday & Co. Inc. Garden City, NY. Beauchamp, Tom L., and Norman E. Bowie. Ethical Theory and Business. Englewood Cliffs, NJ: Prentice Hall, 1993. Bhal K.T. (2000) Ethical Decision making and the use of Frameworks: Effect of Situation and Gender, International Journal of Business Studies, 8, 83-105. Chakraborty S.K. (1987) Managerial Effectiveness and Quality of Work life: Indian Insights, Tata McGraw Hill, New Delhi. Davis J.R. and Welton R.E. (1991) Professional Ethics: Business Students Perception, Journal of Business Ethics, 10, 451-463. Fritzsche DJ. and H. Becker (1984) Linking Management Behavior to Ethical Philosophy: An Empirical Investigation. Academy of Management Review, 27 (1), 166-175 Hosmer, LaRue Tone. The Ethics of Management. Homewood, IL: Irwin, 1991. Kuhn, James W., and Donald W. Shriver, Jr. Beyond Success. New York, NY: Oxford University Press, 1991. Laczniak G.R. and Murphy P. E. (1991) Fostering Ethical Decisions, Journal of Business Ethics, 10, 259-271. McNichols C. W and Zimmerer TW. (1985) Situational Ethics: An Empirical Study of Differentiators of Student Attitudes, Journal of Business Ethics 4, 175-180. Sharma, S. and Bhal K.T. (working paper) Cognitive Frameworks in Ethical Decision-making: Identification of the Constructs, their Measurement and validation. Sullivan R.J. (1989) Immanuel Kants Moral Theory, Cambridge University Press, New York. Swami D. (1999) The Teachings of Bhagvad Gita, Vision Book Publishers, New Delhi. Taylor R.W. (1975) Principles of Business Ethics: An Introduction, Dickenson Encino, CA. Velasquez M.G. (1998) Business Ethics: Concepts and cases (4th Ed.). Prentice Hall, NJ.
Talent Management: A Key to Success in the Global Changing Scenario

Chitra Bajpai
Accurate Institute of Management and Technology, Greater Noida, UP
E-mail: chitrarbl@yahoo.co.in
Keywords: War of talent, Talent hungry, need of the day, Human capital management
INTRODUCTION
Talent Management is an issue which is very famous in all the industries for the reason that today the managing the talent and keeping them in a one particular company is a bit difficult task for the companies .However few of them are able to reduce the turn over rate of there companies even then facing a difficulty in improving the organizational commitment from there side. The effective talent management could help the companies in changing the behavior of the employees and help them in achieving the organizational profits.
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TALENT MANAGEMENT-IMPORTANT ASPECTS
Source- http://www.ravenwriter.com/wp-content/uploads/2009/08/talentmanagementmodel300x300.jpg
Research Methodology
This research paper is exploratory in nature. For the purpose of the study the researchers have collected the secondary data using various books, magazines, journals and surfing internet. The Objectives behind this research paper is as follows: 1. To identify the need of the talent management in the present changing scenario 2. To measure the attempts being done by the companies to attract and retain the employees in the present scenario. 3. To identify the hurdles or challenges being faced by the Companies in the talent Management 4. To recommend few suggestions to implement successful talent management in the companies. The talent management is an issue which is related with all the companies in present era of the war of the Talent. The Head hunting; Poaching is so famous even it considers the ethical issues. A well planned Talent management could
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bring healthy work life for the employees in the organization. The Talent manager must feel them selves as a partner of the business.
PILLARS OF THE TALENT MANAGEMENT

Recruiting Performance Management
Talent Management
Compensation Management
Learning Management
TALENT MANAGEMENT AS A NEED OF THE DAY?

This is the human resource which are managing the company and if that resource is not stable then the firm faces lot of difficulty in managing them .For the success of the firm it is not only required but also need of the day . This has been identified by various surveys that stable workforce could help the organization in achieving the objectives. In such a competitive world where the survival of the organization has become questionable without stable workforce. The companies invest huge money in the attracting, recruitment and the training of the employees and if they leave in a shorter duration then all the money invested goes waste. Which becomes the cost of the company that made organization to suffer huge loses. So the solution of this entire problem is Talent Management In which more and more emphasis will be given to the retaining the people in the organization. Measures by the companies to retain the employees- there are various measures are being done by the companies to retain there employees in the organization .few of them are as follows -
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1. Compensation: Compensation is one of the best tools which are being used by the firm in present scenario. The compensation includes various monetary and non monetary benefits. The good perks and fringe benefits given by the company attract the people the towards such type of the job. For example- Infosys, Google, TCS IBM etc. 2. Flexi Hours: To retain the employees the flexi hours are offered to the employees Google India is the company which offers freedom to there employees to work IBM also offers freedom and flexibility to there employees. 3. Work to Home: Many soft ware companies gives this option to there employees to work from the home. In this the employee has a timing prescribed of being on line and being offline. 4. Career Development Programme: There is many more companies working for the career development of the employees. Bharti Airtel is one of them which feel that employees are biggest asset which should be managed well. 5. Employee Recreation: The companies are doing better recreation facility for there employees to retain them. 6. Quality of Work Life: Giving more flexibility to the employees, respecting the dignity and giving freedom to work is also a one of the strategy being liked and practiced by the employees to retain the employees.
RECENT PRACTICES IN THE AREA OF THE TALENT MANAGEMENT

1. Alternate Talent Pool (ATP): Now a days many organizations in the US prefers to have a side a alternate talent pool They are the people who possess the similar qualification knowledge and skills and currently unemployed or under employed as the current employees has and willing to leave there original job for any reason .The ATP,s are helpful in the cost effective way. 2. Periodic Assessment of the Talent: As per the deloitte agency the Indian oil and gas sector is facing a problem for the talent management a solution suggested by then to the periodic assessment of the talent which will help them to keep a check of the development of the employees and identify the target where they have to reach .this table will have clear focus on the following four aspects: Strategy, Solutions, Catalysts and Infrastructure. 3. Competency Mapping a Tool to Manage the Talent: Today the competency mapping has been used a tool to manage the talent and upgrade the
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performance of the employee by designing the competency model for key jobs. 4. Increasing the Role of the HR in Talent Management: As per the Survey made by the DDI Role of HR in Talent Management is as follows:
Source: http://www.ddiworld.com/DDIWorld/media/white-papers/ninebestpracticetalent management_wp_ddi.pdf?ext=.pdf
HURDLES BEING FACED BY THE COMPANIES

1. Talent Mobility: Talent mobility is a chain phenomena. a person left from one place then a person comes on that place irrespective of equivalent talent .So this chain keeps on rotating till the time circle is completed .one change at one place effects the numbers. of the organization. 2. Talent DNA: Talent DNA is basically a system in which the strategies come in the implementation. The difference between plan and execution is generally being seen due to various factors. 3. Poaching: Poaching or Head hunting is very famous in todays time even if the employee does not want to change and have good performance even if the contacts from the competitive firm makes them to think about it due to better package and offers. 4. Heavy Expenditures: Cost control is also one of the prime agenda to be competitive. The growing expenditure on retaining the employees contradicts the concept of cost control in present time.
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5. Opportunity in the Market: There are opportunities are lying for good people in the market which is an uncontrollable factor for the companies. 6. Changing Job is a Fashion: Now a day the change is an inevitable and universal phenomenon so no matter of life is untouched from this wonderful arms. So changing job is also one of them. 7. In a up or a Out Promotion: The todays scenario a fashion is either in promotion or go out and find out best suitable job. this made people to search for another job. 8. Talent Management in the Global meltdown: It is a very big question especially in the economic recession to manage the talent, due to various cost cutting policies of the organizations.
SUGGESTIONS TO OVERCOME THE PROBLEM

The following are the few solutions of this issue 1. Create a Talent Plan: the best way of managing talent in the organization to design a talent plan for the employees in the advance that could be designed with the help of the external consultant of the consultancies if not from the Internal Human Resource. 2. Alignment of Business and Talent Strategies: It should be aligned with the corporate strategies. 3. Leadership-Talent Management and the Kind of Leadership: talent management model should be made on the Clear and coherent model. The below mentioned figure shows the success profile and king of leadership.
Source: http://www.ddiworld.com/DDIWorld/media/white-papers/ninebestpracticetalent management_wp_ddi.pdf?ext=.pdf (Development dimension International study)
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4. Offer creative Alternate Benefits: Umbrella benefits are very helpful in this situation. As per the demography the interest of the people vary so people should be given an option to select the benefits they want in the multiple options like a package and that should be given to them this make the employees motivation very high . 5. Learning and Development Programme: Learning and development programme will make employee to acquire certain skills suited to there current job as well as to upgrade the future prospects. These centers keep engaged employees to learn and develop instead of politicking in the organization. 6. Create an Environment of Mutual Trust and Transparency: The environment of trust and transparency is required for all type of organization to work effectively. This will also helps employees to manage the talent in the organization in the desired directions. 7. Succession Planning: Succession planning is planning the future replacement of the key jobs .It also helps to identify who will replace whom and the talent management will help in providing right kind of the training and development to the desired successors in the organization.
CONCLUSION
The Talent management is not only desirable but also need of the day. Because the human resource could help the company in gaining the competitive edge. In todays scenario attracting people is easier then the retaining them the Talent Management will help them as a best retention policy. In todays world the proper management of the talent could provide a competitive edge to the companies over others. Proper planning, careful execution of the proper talent strategy could provide success and sustainability to the organization in todays competitive world.
REFERENCES
Books Business Today, Nov 30. 2008, Business India, Dec 28. 2008 and Feb 8. 2009 Business World, Nov 3. 2008, Nov 17. 2008 India Today (Aspire), Special Issue, Dec -March 2009
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Author Index

614 Author Index

Author Index 615

482 11 80 128 555, 569 142 378 488 474 37

About the Editors

618 About the Editors

About the Editors 619

Rajiv R. Thakur Satish Thukral Neeta Sahu Vinod Gupta

2. Corporate Governance and Accountability in the Changing Scenario

3. FDI Inflows to Automobile Industry in India

5. The Indian Capital Market Growing Opportunities and Emerging Trends

6. Innovative Marketing Practices: Need for Competitive Advantage

7. FDI in Higher Education in India

8. Conceptual Analysis of TQM

9. E-mail Marketing as a Tool of Direct Marketing

11. The Small Poised to Become a Mammoth

13. Islamic Finance: An Indian Prospective

14. A Challenging Issues in Corporate Governance

15. Trends in Takeovers in India in Post 1990 Period

16. Celebrity Endorsement: A Marketing Strategy

19. A Study on Expectations of Rural Consumer Towards Organized Retailing: A Review

128 135 142 153 164 170

20. A Study of Ethics in Accounting and Finance of the Corporate World

21. Emotinal Intelligence at Work: A Theoretical Framework

22. Managing Stress Among Employees in Internationalisation of Business

23. Talent Acquisition and Retention to Gain Competetive Advantage

24. Glocal Approach to Entrepreneurship in Pune Auto-sector

26. The Corporate Dilemma: Greed v/s Goodness

28. Marketing Strategies Go Ahead

30. A Strategic Study on Fundamental Analysis of Pharmaceutical Industry in India

223 231 238

32. A Study of Market Efficiency of Indian Stock Market

33. Corporate Governance in India: Clause 49 of the Listing Agreement

245 260 268 275 282 287

35. Customer Relationship Management for NGOs

36. The Ascent of Deposit Insurance in India

38. Leadership and Management: The Need of Hour

40. Role of Logistics in Global Supply Chain Management of Pharmaceutical Industry

41. Marketing Education in India: A Management Education Perspective

42. Impact of Banking Technology on Customer Profitability An Empirical Study

43. A Study on Mobile Banking: The Way Ahead

328 339 346 353 361 365 372

45. Higher Education as a Knowledge Agent A Study in Globalised Era

46. CSR in Indian organization: Reality or Myth Analysis

47. Paper on Employee Retention

48. Globalization and its Impact on Indian Education

49. Union Management Relations: Radical Agreement for Industrial Harmony

50. Sustainable Growth Through Organisational Change Management

52. Venture Capital and Entrepreneurial Development 7=7 Theory

393 400 408 415

54. Foreign Direct Investment A Prerequisite to Economic Growth

55. Impact of Globalization on Indian Business Industry and Strategy Making

56. Managing Creativity for Organisational Excellence

59. Customer Relationship Management from the Business Strategy Perspective

60. Impact of Employee Engagement on the Performance of Employees in an Organization

61. Microfinance Experience in India Actions and Challenges

459 467 474

63. Microfinance A Tool to Uplift Rural Poor

64. Financial Inclusion: Diversifying Financial Services

482 488 494 501 509 516 522 529 535

66. Value Based Decision: From Ancient Text to Present Context

67. Narcissistic Leaders: The Incredible Pros, the Inevitable Cons

68. Brand Valuation A Contemporary Accounting Practices