Post Merger

Prof.
Wisdom Voyage
EDITORIAL
We at BSB Delhi are proud to launch our first journalWisdom Voyage, with the theme Traditional to We, at BSB re proud to launch our second edition of the journal- Wisdom Voyage with the theme Can India be the Next Super Power? Issues & Challenges Ahead. India has withstood the meltdown with grit, & is once again moving forward with determination & tenacity. Today India is truly shining with the world waking up to the potential on Indian soil & markets. Disposable incomes are up, hiring is on the rise & the shopping malls are seeing more footfalls. Can India compete with best of the best? This is the very core of the conference papers that we have gathered from some well known & renowned academicians. With the economy on the rise, increased FDI in the country & enhancement in the manufacturing sector, Indias GDP is surely to be impacted, making the Indian economy one of the fastest growing economies in the world. India today has one of the largest youth populations, making India a young country, brimming with energy, hope & innovation. Many conglomerates are innovating like never before with state-of-the-art practices in practically all functional arenas of management. This has had a tremendous impact on the strategic intent & growth. This impacts not only the future plans of the businesses, thus economy but also helps in making a mark on the international scene. The extent of the impact (of the global financial crisis) has caused dismay mainly on two grounds: first because our financial sector remains healthy and had no direct exposure to tainted assets and its off balancesheet activities have been limited, says Duvvuri Subbarao, the governor of the RBI. Second, because Indias merchandise exports, at less than 15 percent of GDP, are relatively modest. As such, the financial sector plays a vital role in taking the Indian economy to new heights. India today stands on the threshold of the future with a dichotomy- faced with a growing workforce on one end, & the emerging rural population on the other. Plagued with challenges like over-population, rising prices. delayed monsoons & the like India has to battle many issues to be the next super power. BSB Delhi thanks its contributors, & the readers- hoping India can be a true superpower
Prof. Anurag Mathur Editor in Chief Wisdom Voyage Journal of Management Experts BSB, Delhi
March 2011 Vol. I Issue 1
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FROM THE EDITORS DESK

The economy of expression is a boon. BSB, Delhis academia has enumerated papers, articles and cases from education and industry professionals, and have come up with their exquisite Journal Wisdom Voyage. This journal entails good news about the Paradigm Shift that we acknowledge, has taken place in every stream of management practice. In times today, there are strong arguments about change in practices in the areas of management expertise. But, currently, most of the theories, regulations and arguments converge to an evidence based management. Managers do not consistently make decisions on the basis of formal facts and traditionally followed ideas and theories, but on the sparse means of conducting intelligent work through learning by doing. To remedy this situation of change from traditional blunders with best practices - there must be a paradigm shift in attitude and actions of both managers and researchers. Managers will need to focus more on using empirical evidence to make decisions rather than relying solely on consultants and management gurus without determining if their solutions have been successful in the past. Reviewing empirically based research can provide a reference for what has already been shown to be successful or not. Experts, hence, need to better focus research questions on the real and immediate needs of organizations. To achieve this goal they must put more effort into establishing closer relationships with management. Researchers objectives should be to explain and predict the consequences of managerial actions instead of just trying to understand the life of the organization. Established paradigms such as Economy of scale, Global markets, Scarcity of resources seem to have become strongly ambivalent and paradoxical in the day to day practice of managers. Controversies arise as illusions become transparent around Competition, Free Markets, Ownership, Innovation and Planning, Service economies, Growth by capital expenditure, by the practice of changed paradigms in economic management. The work entailed in this journal focuses and hedges the traditional shortcomings and fruitfully captures the element in contemporary scenario. Im sure you know good writing is re-writing. However, I am happy that we have tried to leave the reader with the freedom to make a wise observation, without prejudicing your eye with limited selections. This copy covers the phenomena of paradigm shift in Global Banking Scenario, Mergers and Acquisitions, Retail Sector, International Business, Special Economic Zones, Creative Accounting, Workforce Diversity, Supply Chain Management, Spirituality at Workplace, Six Sigma, Social Network Marketing and E-services. I think this is a diamond!
Prof. Anjana Chugh Editor Wisdom Voyage Journal of Management Experts BSB, Delhi
March 2011 Vol. 1 Issue 1
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CONTENTS
Application of Six Sigma in Supply Chain Integration a case of DryDock Bidyut Biman Sarkar FDI - Fuel in Indias Global Economic Growth Engine Prateek Gupta, Shelly Gupta Environmentalism as Consumer Behaviourial Approach towards Green Products Dr. Harpreet Singh Chahal, Pooja Mehta Conceptualization of Sustainable Development Issue and Consumption Pattern of Consumers Dr. Pradeep Kautish New Era in Retail: The Road and Challenges Ahead for Indias Organized Retailers Dr. C. Natarajan, Renu Vij India: Towards a Knowledge Superpower? Prof. Anurag Mathur A Move to ERP (Enterprise Resource Planning) Pooja Rawat Organizational Climate in Small Scale Industries: A Demographic Empirical Study in Delhi Rajesh S Pyngavil & Dr M L Gupta The Era of Combative Advertising in India Kushi Sharma, Shaili Sharma Post Merger Investment Performance: An Empirical Investigation Dr.Bibhu Prasad Sahoo, Dr.Bibhu Prasad Sahoo Aligning Business Ethics to Corporate Competencies Dr. Tanu Kashyap A Research Paper on Traditional to Contemporary Management Practices Shruti Gadia, Anjumara Shaikh Economic Meltdown, the time for strengthening SMEs through Liberal and Timely Bank Advances K. Prabhakar Rajkumar Stress Management in the Workplace Mr. Alok Satsangi The life of Poet Kamala Das A Management Lesson Ms. Rita Sachdev Paradigm Shift from Traditional to Contemporary Management Practices: In Quest of Sustainability Nabanita Choudhury Research on Operational Strategies for SSI in Chemical Sector Dr. Vandana Mathur 4 - 12 13-20 21-24 25-32 33-37 38-46 47-50 51-59 60-68 69-78 79-82 83-87 88-91 92-94 95-100 101-105 106-112
ARTICLES Retrospective Analysis of the Role of Organized Retail in Making India Emerging Super Power Strategic Corporate Social Responsibility Innovative Marketing Tool for Competitive Advantage Role of Tourism Industry in making India an Emerging Superpower 113-116 117-121 122-126
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Application of Six Sigma in Supply Chain Integration A Case of Drydock

Bidyut Biman Sarkar (Assistant Professor & Head Department of MCA) West Bengal University. of Technology Primary importance of any process industry is its maintenance activity. Various process industries follow exclusive maintenance plans. In a Drydock medium and small size ships are anchored for speedy maintenance. Immediately after the inspection the maintenance work should be started subject to availability of spare parts. Availability of spares is a critical issue at the vicinity of the Drydock. In order to provide time bound defect free quality service to the f eet owners and sailors high volume of inventory holding is a must and as a result the prof tability becomes insignif cant. Six Sigma is a statistical data driven management strategy where data is available either in magnetic or in paper form. Data gathering and correlating is an uphill task, which may compel management away from using the precious data. Equipment maintenance history is the most important piece of data for major ship maintenance projects. In order to monitor the Drydock operations IT,QC and SCM specialists are required to design an integrated solution to reduce inventory, increase speed of real time data exchange, increase revenue and satisfy customers..
Key Words: Drydock, QC, SCM, B2B E-Commerce, Six Sigma, DAMIC, DPMO
1. Introduction
Due to huge pressure of sea transportation most of the seaports of the South Asian countries always becomes busy like air cargos and airports. Most of the time the ships that are bound for maintenance becomes stranded in a queue at the port or even some times out side the port and loose revenue. In spite of the port capacity of approximately 1.3 million TEU(twenty-foot equivalent unit), the Thai Government made the second sea port at Laem Chabang, operating since 1991, 110 KM (approx) south from the capital city of Bangkok, which is now a key port with a capacity of 3.5 million TEU for
cargo transportation from Asia to North America, Europe and also a major distribution hub to South China and neighboring countries of Indochina. The port operates 24 hours a day, 7 days a week. Shipbuilding is gradually shifting from Europe to Asia. South Korea started shipbuilding in late 70s and already marked as the biggest shipbuilding industry in the world in a span of 20 years. China stepped in late 1980s and stands as the third largest shipbuilding industry. Korea (36%), Japan (24%) and China (17%) command almost 77% of world shipbuilding market totaling around Rs 200 billion $ [1].One of the national carriers of Thailand owned by a group of consortium has planned
to set up a Drydock near the 2nd port to service large and medium sized cargos as a potential area of revenue generation. On an average the maintenance cost of a small and medium sized cargo is around one million Bhat( Thai currency), which is equivalent to 30 thousand US$. Any ship bound to North America or Europe will definitely try the maintenance job at any Asian Drydock to save at least 50 present of the maintenance cost, if not more compare to that of any non Asian Drydock. Drydock is a structure, which can be filled in with water to sail and then drained the water to expose on the surface, so that it can be used in the construction, maintenance, and repair of ships and boats.
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Most ship yards have at least one Drydock for repair work. A skilled team of ship builders and repair people work on the vessel while it is Drydocked and then again the dock is flooded with water, so that it can return through the open water. Ship repairing activity is scaled in increasing order of cost of the following activities:
1. Fleet repairs (minor and

continuous repairs)
2. Routine docking (underwater

work)
3. Major repairs (typically steel) 4. Damage repairs (usually steel) 5. Refit and Conversion
All the activities are time critical. Some of the activities are interleaved, some are parallel and most of them are sequential activities. But availability of materials is the most critical event in completing the maintenance task. All items for maintenance work except steel repair are ordered through the standard yellow pages, Safety Management System Manual, Guidebook Operating Information, Marshalltown Cyclone Power Trowels and some more country specific guidebooks. There are companies and agencies inland and abroad but delays in supply of spares caused huge revenue loss and piling up inventory block money and space. In this paper we try to focus the issues like logistics and timing of events with the help of supply and demand chains by keeping the basic need unchanged.. In Section 2 a discussion on infinite number of vendors, customers, products and transactions to make it more challenging is
made. For effective management of the chain, we introduce the concept of B2B e-commerce in Section 3, which further describes some critical issues for successful implementation of the E-Commerce projects. In the subsections of section 3 the required technology for successful e-commerce implementation is suggested along with the impact of B2B e-commerce on supply chain. In section 4, we discuss the concept and utilization of Six Sigma management strategies in ship maintenance and safety to improve upon the performance of the chain at the Drydock. In Section 5 the concluding remarks of the study is presented and Section 6 presents the references. The research methodology followed in this paper is based on secondary data, which includes published books, research articles of the field experts with necessary citations on Supply Chain Management, E-Commerce and statistical quality control tools. This exploratory nature of the research on Six Sigma approach in Supply Chain at Drydock substantiates the claims made in this paper.
an expediting agent in the process. Supply chain management is getting the right things to the right places at the right times for maximum profit. Many important strategic decisions impact the supply chain: how to coordinate the production of goods and services, including which suppliers to buy materials from; how and where to store inventory; how to distribute products in the most cost-effective, timely manner; and how and when to make payments. Figure 1: A Simple Supply Chain Structure Every chain has operating challenges and yet the issues remain essentially the same in every Case [2]. The figure 1 shows a simple supply chain , where the upstream and downstream are separated by a doted vertical line indicating the supply of material and production, storage to delivery to the ultimate customer respectively. Directed arrows are from right to left indicates reverse logistics of the chain. The dashed lines (1) show flows of information along the chain in both directions. The dashed line (2) shows material flow along the chain from left to right. The dashed line (3) shows cash flow from right to left and line (4) indicates the value added activities at each stage of the chain. The bank communication network is an example of a simple multi bank supply chain network where money is the product, banks are suppliers, ATMs are distributors and the manufacturing process is activated with the help of electronic ATM cards and the beneficiary is the customer. Risk management in the chain like authenticity and privacy are taken care by the cryptographic algorithms. When
Supply Chain Management

The term supply chain management a strategic buzzword introduces by business in late 1980s and by 1990 industry started using the concept extensively. Supply chain management is a set of interenterprise functional activities to manage the links between companys key business processes and those of its suppliers, customers and business partners. Use of Information technology is
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money is not feed to the ATM on time the down stream fails to perform and as a result the customer will not be serviced and is a case of uncertainty. A computer scientist will describe this instance as a fault tolerance in the system. Customers used to ATM network can easily differentiate between the traditional banking system and the change in the customer service through information technology enabled ATM services. The goal of any supply chain is to take decisions about the following five different driving areas:
balancing, quality checks and maintenance scheduling.
2. 2.
1. 1.
Production: Depending on the type of the product; production is either push or pull based. Push based production is traditional and market driven. However, pull based production is strategy driven and the market share is accessed and
UP STREAM
Inventory: Risk and uncertainty is an inherent feature of supply chain. A strategic decision about stock level, fixing re-order level and EOQ(Economic Order quantity) at each stage in a supply chain is a critical issue. How much stock should be held as raw materials, how much as a semi finished or finished goods? The primary purpose of inventory is to act as a buffer to guard the risk and uncertainty.
3. 3. Location: Selection of site

locations for production and storage of inventory or setting up the warehouse is one of the vital issues for maximizing the profit? Whether the existing facilities to be used or find an
DOWN STREAM
supplier supplier supplier supplier
Retailer Manufac turer Stockiest Distributor Customer
supplier
supplier
supplier
Information flow (1)

supplier
Material flow (2) Cash flow (3) Value added activities (4)
scope of logistics includes some internal processing of materials into finished goods and then the movement of finished goods out of the organization toward the endconsumer. Thus transportation can be redefined as logistics, where end to end movement of material takes place including internal processing and value additions. For example; transportation of material through sea cargo is less expensive but usually involves longer transit times and some degree of uncertainty. However, logistics will suggest collaboration with distant vendor, a remote warehouse or may be a VMI (vendor management inventory). VMI uses intensive sharing of stock and data among different companies along the chain by directly connecting the communication devices to reduce the Bullwhip effect in Supply Chain Management partners [3, 4]. For better precision advance techniques can be used to reduce the Bullwhip effect further like the delay time monitoring in a linear scalable supply chain with the help of Matlab/ Simulink. For smart logistics and perfect forecasts on the Bullwhip effect parameters, the results of information sharing before and after the implementation of SCM are recorded and the delay times are monitored to reduce the bullwhip effect of [5]
build. What product, How much quantity and when to be produced is decided by the market. Production plan is obtained from the market and the schedule is made according to plant capacities. Other activities include load
alternative?
5. 5. Information: Information 4. 4. Transportation: Logistics

is the word coined by the business to replace the term transportation. Transportation simply handles the movement of the materials; where as is the most important driving force in the process of SCM. Introduction of information technology, communication through wires and/or without wires with geographically
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dispersed business partners, holding data in a transaction data base or in a historic data repository for timely and accurate information is used in coordination for better decision making. With accurate and timely information, people can take effective decisions about product type, product quantity, Product location and the logistics to be practiced for higher profitability. Thus in short the key issues of Supply Chain Management may be defined as: 1. Distribution Network Configuration Distribution Strategies Inventory Control Supply contract Supply Chain Integration & Strategic Partnering Outsourcing & Procurement Strategies Product Design Information Technology & Decision Support System Customer Value
2. 3. 4. 5.
A process-oriented, integrated approach to procurement, production, delivery of products and services to customers can be viewed as an integrated Supply Chain Management (ISCM), which covers the management of material, information and funds flows. It covers sub suppliers, suppliers, internal operations, trade customers, retail customers and end users. Supply chains exist in manufacturing industries, in service industries, in banking and in retailing. Other terms are demand chains or value chains. But whatever the term used, we mean the integrated process of producing value for an end user, the ultimate customer. Viewing the supply chain as a strategy or simply a logistics is immaterial till it is applied to meet the day to day demands. Some of the necessary strategic success factors used in implementing SCM plans in an organization are [6]: Design/methodology/approach Distribution of questionnaire to top and middle management of the organization to examine the importance and the extent to which the selected manufacturing company practiced the strategies based on these identified operational issues. Findings SCM initiatives should be aligned with the current priorities of the organization, reduction of operational cost and inventory stock. Enhancements of lead times, customer satisfaction, flexibility, cross-functional communication with greater commitment at each customer touch points. Practical implications Operational results will provide greater understanding to reduce supply chain-wide costs and meeting customer service levels.
Originality/value SCM plans can be made according to the importance and the culture of the company and the business managers will use the results for better understand and implementation. 3. B2B E-Commerce B2B is the short form of business-to-business. B2B does electronic trading between companies, typically between a buyer and supplier. In Figure 2(a) shows communications between suppliers and buyer in the upper half and the reverse communication in the lower half. The standard B2B network [supplierbuyersuppler] electronic communication is known as EDI network. The figure 2(b) is an internet based B2B network, where suppliers and buyers can communicate irrespective of their locations. The process of conducting business on the Internet is called E-business. The process of selling and buying goods and services on the Internet can be defined as E-Commerce. E-commerce is the `front end for selling products over the Internet, Electronic Business use the technology, processes and protocols to enhance the competitiveness in the market place. A B2B initiative needs a large infrastructure and effective business process reengineering process. The process involves many participants with complex rules, higher purchasing amounts and complex products. The major objectives behind B2B e-commerce applications are to increase productivity, lower costs, higher profitability, more customer satisfaction and responsiveness. Various technologies are used in tandem among the companies to disseminate or gather business information, or to conduct business transactions.
6.
7. 8.
9.
The sum of these decisions will define the capabilities and effectiveness of the supply chain. The things a company can do and the ways that it can compete in its markets are all dependent on the effectiveness of its supply chain. If a companys strategy is to serve a mass market and compete on the basis of price, it is better to have a low cost optimized supply chain. Looking at the supply chain and its market share the activity of any company can be assessed at a glance.
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Thus e-commerce in general is a paradigm shift from the traditional marketing and B2B e-commerce in particular is much more than computer, Internet, software engineering, framework etc, some of the critical success factors of e-business implementations that should be looked into are [7]:
1. Involvement of Top
Management
or may refrain from using due to fear of market competition. As the e-commerce technology is growing at a first space, the information technology team of the organization should regularly update themselves to adopt the latest technology. Strategy for benefit of the organization from the e-commerce venture should fall under point number
of the project. It is also advised to keep the changes as minimum as possible to maintain the standard of the system. Tailor made systems with hard codes are always detrimental and life of the system gets reduced substantially. Some of the B2B E-Commerce benefits include:
Managing
inventory
more
2. Clear goals, objectives and

planning
Supplier
Supplier
Supplier
3. Infrastructural Support 4. Market forces 5. Strength of internal users 6. Strategy 7. Business Process
Reengineering
Supplier Supplier Supplier Buyer
Supplier Buyer
Figure 2(a): Basic Ecommerce
Figure 2(b): B2B Network
8. Change management 9. Use of consultants 10. Effective communication 11. Minimum Customization
The authors indicate key touch points of traditional business practices to an e-business migration points. The benefits and challenges are like involvement of top management is highly demanded for effective implementation and so as the case for planning and goal setting. Infrastructural Support implies intrinsic functions of the organization like commissioning of latest technology equipments. Usually country like India e-commerce growth is more on extrinsic functions like community based decisions [8]. E-business systems are customer centric and as a strategic tool it can be used to achieve the perceived benefits
one and two. BPR (Business Process Reengineering) is just not technology replacement on a one to one basis. It is a process to change some working practice or introduce some new stage or eliminate the present practice to get it fit with the new software based process [9]. A significant amount of organizational changes are necessary for successful implementation of e-business project in terms of policies, procedures and employees. Some times the project fails due to improper amount of estimation of the change management implications [10]. Successful technology transfer is directly proportional to knowledge transfer. In any organization the presence of a knowledgeable consultant is one of the common options for successful e-business project implementation. There should be effective communication system among the project team for a successful implementation
efficiently
Adjusting more quickly to customer demand Getting products to market faster Cutting the cost of paperwork Obtaining lower prices from suppliers
3.1 B2B E-Commerce Technology Figure 3: An SGML operated B2B Network The standards for successful e-commerce framework its strengths and limitations are being continuously improvised. Still there is an unfilled need for reliable system to locate buyers and sellers along with secured automated transaction in an electronic marketplace. The figure 3 describes a simple internet based
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B2B network supported by ISO.A reliable network where loosely coupled buyers and sellers can find each other in real time to valuate products, negotiate prices, and conduct transactions is the need of the hour [12]. XML is a Meta language supports the definition of an unlimited number of languages for specific industries and applications. It allows a common data sharing process to work out an open solution to that problem The Extensible Markup Language is one of the expected key technologies to facilitate B2B e-commerce. It is an extension of the Standard Generalized Markup Language (SGML, ISO 8879) developed by a cross-industry group organized and led by Sun Microsystems. XML considers documents as data and the exchange of data becomes more effective between business partners through EDI. For fast web site development the scripting language (HTML), Hypertext Markup Language is used along with the web browsers to view text, graphics, and hyperlinks. Information exchange between businesses partners like sales data, inventory, production, payments and transportation can also be viewed in the form of Web pages. Using XML receiving and analyzing data on the internet without the need to go back to the host server is speeded up the process and in turn internet traffic is largely reduced. For example, a stock broker can obtain information from stock exchange site about a company on a given day and then searches for stock prices at the respective companys website without relying on the exchanged processed data due its flexibility and the XML allows simple standards for data exchange and execution of commercial transactions [11].
The organization of XML based transaction processing framework

Organiz
priority in rationing, logistical requirement, expectations of

Partner Customer
supplier Internet
Retailer
Distributer
reduces transaction costs, coordination costs and motivation costs in business-to-business e-commerce transformation from a physical marketplace to an Internet-based one. B2B e-commerce reduces coordination costs and increases efficiency. The broad categories of efficiencies are process improvements; marketplace benefits and indirect improvements [13]. 3.2 Impact of B2B E-Commerce on Supply Chain There is a profound impact of e-Commerce on the supply chains of many products. The focus of supply chain management has been shifted from production efficiency to customer-driven synchronization. E-business has emerged as a key enabler to drive supply chains to coordinate the flow of information among the services, and link their business processes under various constraints. Internet is a direct channel of distribution. The direct channel i.e. click-and-mortar poses a different set of decisions and challenges from those in the existing bricks-and-mortar channel. This strategic shift depends on the match between the demands and offerings that deliver the services. However, the channels differ in customer types, operations of order fulfillment, cost structure, profit contributions,
service quality and degree of market segmentation, access to demand/supply information and return policies. Most of the cases the cost is much lower in a click-and-mortar supply chain than our traditional brick-andmortar practices [14]. In order to manage supply chain relationships; a qualitative study was conducted among few organizations to design theoretical relationships among the e-commerce based business partners. E-Commerce environment is perceived highly uncertain with increased information visibility and dynamic market structures. It was evident that increased information does not decrease the uncertainty factor but logistics function is very well handled along with relationship management with the customers within the supply chain. The e-commerce supported supply chain environment was found highly dynamic with reduced cost of transaction analysis at a faster speed was self explanatory about organizational network relationship formation in e-commerce [15]. 4. Six Sigma Strategies Management
Six Sigma is a kind of standardization in TQM (Total Quality Management) activity.
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There were similar set of activities in practice at different industries in different forms like just-in-time, kaizen, kanban and so on. Just-intime is an inventory management in production systems. The method was designed in such a way that stock should arrive only when needed. It was introduced and practiced by Toyota Motors of Japan. Kaizen is an incremental improvement of a process to function more efficiently. This Japanese word other wise mean continuous improvement. Kanban is a Japanese word for sign, again an inventory management technique to supplement just-intime uses containers, cards and electronic signals to monitor and control workflow in a factory originally introduces by the same Toyota Motors [16]. Precisely Six Sigma is the application of statistical tools in a disciplined manner to monitor different processes. The outputs of such processes follow a normal distribution and the capability is expected to be within plus or minus three standard deviations of the mean. Each standard deviation is one sigma, so the total process capability covers Six Sigma. The goal of Six Sigma is to improve the operational activities and complete customer satisfaction. It is now being practiced both by business and production processes and the decision making process is data driven. World wide more than 100 companies are implementing Six Sigma and the pioneers in the process are General Electric, Ford Motor Company, Wipro Ltd, Del Computers, United States Marine Corporation and so on [17]. Profits are measured through acquisition of hard data analysis. From the literature survey it is aparent that there is a high potential to increase profitability in ship repairing operations
Safety of a ship can be achieved through dynamic, timely and error free maintenance. Six Sigma safety plan of the ship can further reduce the maintenance costs and increase customer satisfaction. This approach minimizes cycle time, maintenance defects and material wastages and increases the quality of the process. By continuously practicing the 3 to 8 standards life of the ship can be enhanced to a sizeable time span. For ship maintenance process 6 is ideal, where as travel industries like airline industries practices even 8 for perfect accuracy [18]. 4. 1 Six Sigma Methodology at Drydock Six Sigma project specialists are called by different names like; Black Belts, top guns change agents or trailblazers. The core process of Six Sigma methodology is represented by the english word DMAIC. DMAIC is an acronym for the 5 key phases of a process improvement. The five phases are Define, Measure, Analyze, Improve, and Control. For design of new processes and products the DMADV framework is followed.. Where the acronym represents Define, Measure, Analyze, Design and verify. The first phase of the Six Sigma approach is called DEFINE. It justifies purpose, scope and appropriateness of the project. Customers idea of quality and how well the current process meets that is directly measured at this stage. For a Drydock the define takes care off growth reduction and completion of a job On-time at the dry-dock. The most common problems in a Drydock are:
2. Condition
assessments of equipment and structurals are underutilized. standard format specification writing. for
3. No
4. Extra amount of work is done

by ship management office
5. No criteria for analyzing

drydock specification The goal of a Drydock is to reduce unplanned work, standardize the Drydock specification, Improve reliability and maintenance management strategies. The scope of the Drydock project may be defined as:
1. Develop metrics for drydock

evaluation
2. Benchmark drydock projects

The second phase is MEASURE. At this stage focus is on gathering data to describe the current situation. Identification of measures at a particular process and to gather sufficient baseline data is a critical task. To measure capability of a process Cp and Cpk process measuring indices are used, where Cp =( USL-LSL)/6 and Cpk = min [(USL- )/3, - (p-LSL)/ 3 ]. USL and LSL are the upper and lower specification limit, respectively, is standard deviation, and p is the mean of the process. Equations produce appropriate results when basic data are normally distributed along with the significant sample size. For the ship operators Drydock project metrics are also required to be defined. In general, metrics need to capture the right activity to provide immediate feedback. Successful metrics focus on the process rather than the product or individuals. However, a probability plot of the data can be used as a good supplementary
1. Incomplete crew report on

equipment failure. and structural
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tool to access expected variability and this form of output are also beneficial in describing the process capability performance of a service process. The third phase is ANALYZE. Ggrowth data from each individual drydock activities are processed and a trained analysis over seven main areas of special interest is performed [19].
1. Classification of Growth work 2. Cause of growth 3. Growth work analysis 4. Inspections related growth
work analysis by the Coast Guard
tool is used to generate defective PPM and the corresponding percentages over 1 sigma to 6 sigma for a situation where only two devices per billion fail to meet the specification target. The notion of Six Sigma process comes from that of one has six standard deviations between the process mean and the nearest specification limit as shown in the graph of figure 4, practically no items will fail to meet specifications and at 6 the defective ppm will be .002. Figure:4 Six Sigma basic diagram Figure 4, the normal curve marks the distance on the horizontal axis between the mean () and the curves inflection point at (-3,3) for the curve = 0 and = 1. Figure:5 Six Sigma with 1.5 deviations The end specifications are at a distance of 6 from the mean (). In a normal distribution values lying away 6 from the mean are unlikely to happen. Due to process variation over time or for some other reason, if there is a shift of mean value even by 1.5 right or left of mean value. Still a process can be said to be at six sigma quality level, if Cp = 2.00 and Cpk, = 1.5, which equates to 3.4 PPM using the 1.5 standard shift. The greater the distance, the greater is the spread of values to be encountered. Capability studies measure the number of standard deviations between the process mean and the nearest specification limit in sigma units. As process standard deviation goes up, or the mean of the process moves away from the center of tolerance, fewer standard deviations will fit between the mean and the nearest specification limit, decreasing the sigma number and increasing the likelihood of items outside specification. Further there is
5. Growth
work linked to original specification items
6. Sigma Level calculations 7. Potential savings analysis

The first five indicates categorization of growth and then Sigma Level is calculated to find the improvement potential of the process and corresponding savings to such an improvement. To define Six Sigma statistically two new concepts are introduced. They are specification limits and the normal distribution. Specification limits are the tolerance ranges demanded by the customers, product or process. The curve in Figure 4 is called the normal distribution curve or Gaussian curve. It is a useful and valuable measuring tool in statistical quality control process. The curve is symmetric and extended from + to - infinity on the X-axis independent of the LSL and USL values. The shape of this normal curve depends solely on the process, equipment, personnel, and so on. The Matlab simulation
an accepted standard DPMO (defective parts per million opportunities), which indicates, if any process strictly follows normal distribution then 3.4 parts per million beyond 4.5 SD below or above the mean may occur. Empirically we say the chances of defects in products or services for a six Sigma practicing units seldom occur. The DPMO of a process is determined by using actual process data and counting how many defect opportunities exist outside the specification limits. The number is then scaled up to the equivalent of a million opportunities. As an example, let us assume a normal distribution with a process capability of 1. The limits then become 3, where is the standard deviation of the process. The defect percentage would be equal to 0.27%, or 2,700 DPMO. The growth data thus collected can be analyzed like; how much percentage of work could be done prior to Drydock, what percentage of corrective and predictive maintenance could be done during voyage and how much percentage should be leftover for maintenance at Drydock. Each growth category then can be tallied with the category wise Drydock budget [20]. The fourth phase of the Six Sigma is IMPROVE. At this stage the improvements are suggested on the outcomes of the analysis made at stage 3.This improvement process will involve the tasks like ; Review past specifications ,Identification of non-value added steps in the process, Document the improvement process for the specification generation, Implement the improvement process in drydock specification generation and so on [21]. The fifth phase is the CONTROL phase. Once the decision is made
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to start the improvement process as described in the IMPROVE phase, the ship operator needs to do following:
Control development of improvement actions in future projects. Develop an action plan for future improvements. Sustain all positive initiatives. Develop documentation and implementation plan to ensure that performance improvement remains at the desired level.
statistical quality control methods can now go altogether to make it a reality for a company to develop a product or obtain service at some point in Asia and sell it or deembark it at USA. The operational management and logistic activities are also improvised accordingly for more profit and customer satisfaction. Supply Chain Managementprojects involve multiple organizations and the commitments from the top level managements. More and more companies are opening up internet channels and more buyers are ordering over the internet. Business-to-Business interactions facilitated e-collaboration through internet channels and emerged as a most cost-effective means of supply chain integration. Let us now define e-business as the marriage between the internet and supply chain. This marriage is transforming many processes within the supply chain from procurement to customer management and product design. With the rapid changes in business scenario the present trend of e-commerce and supply chain clearly indicates that the future organizations will be operating over the web in an integrated manner on a real-time basis. Many of those networks can be expected to be global in nature. . As on date most of the electronic commerce models are usually B2B and by default, B2B systems are both heterogeneous and distributed. However, there is not enough secured real time frame works available to process such integrated concepts with robust data repositories and warehouses. In my future studies, I like to concentrate my search process on the robust and secured distributed frameworks to handle hustle free processing of information.
6. References
1. Report of working group for
Shipbuilding and ship repair industry for the eleventh five year plan (2007-2012), Government of India, Ministry of shipping, road transport & Highways, March, 2007
2.
Essentials of Supply Chain Management, Chapter 1, Basic concepts of Supply Chain Management by Michael H. Hugos, 2nd Edition, published by Wiley, March 2006 ,ISBN: 978-0-471-77634-5
3. Frank G. Goethals, Important

Issues for Evaluating Inter Organizational Data Integration Configurations, the Electronic Journal Information Systems Evaluation Volume 11 Issue 3 2008, pp. 185 - 196, available online at www.ejise.com
The Six Sigma road map of a ship operator can realize major savings in Drydock projects. Several areas are indicated and improvement processes associated with these areas are defined. Six Sigma implementation needs involvement of all parties associated with the process that needs to be improved. It is important for an organization to encourage its employees to collect good quality data [22].
4. Bidyut Biman Sarkar and

Nabendu Chaki ,A distributed framework to analyze the bullwhip effect in SCM using Petrinets, Wisdom Voyage, journal of management experts, volume 1- issue 1- March 2010 ,ISSN No. 0975-9794
5. Conclusion
Application of six sigma methodology or operational excellence is a kind of change that should be applied on process to reduce defects within an organization. The quality management relies on statistical tools and methods. The measurable goals are like efficiency, productivity and processes. The upcoming technology like e-commerce and supply chain added more values to some of the statistical methods to use them as process control techniques for effective and substantial savings. Supply Chain, e-commerce and
5. Chen, F., Drezner, Z. Ryan,

J.K., and D. Simchi-Levi, Quantifying the Bullwhip Effect in a Simple Supply Chain:The Impact of Forecast, Chinese Journal of Management Science, Vol. 46, No. 3, 436-443. ISSN No. 1752-1270
6. V.M. Rao Tummala, Cheryl

L.M. Phillips, Melanie Johnson, (2006) Assessing supply chain management success factors: a case study, Supply Chain Management: An International Journal, Vol. 11 Iss: 2, pp.179 192, ISSN: 1359-8546
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FDI - Fuel in Indias Global Economic Growth Engine

Prateek Gupta (Associate Professor) Krishna Institute of Eng. & Tech., Ghaziabad Shelly Gupta (Ex-Faculty Member) Mody Institute of Engineering & Technology, Lakshmangarh, Sikar, Rajasthan FDI - Fuel in Indias Global Economic Growth Engine
India, one of the developing countries as an emerging economy along with countries like China, Russia, and Brazil is in the process of economic expansion. As India is a cost effective, labor intensive and natural resourceful economy with a strong manufacturing and export oriented industrial framework, it has become centre of attraction for investment. With the economic pace picking up, global commodity prices have staged a comeback from their lows and global trade has also seen healthy growth over the last two years. The world is becoming local due to globalization. Each and every nation is interested in becoming developed. Every nation is in hunt of growth not only with in the nation but on global platform. To make the concept very clear, we assume this globe as a track for growth and India as an engine of growth but when this engine runs, number of red lights (hurdles) in form of challenges plays their role to stop it. These challenges are having direct concern with the economy of related nations. In todays era global economy is a highly interconnected one. This connection gives scope to positive impact of instant access to the global information network but also to market unpredictability as global economic challenges disturb the economic inter linkage channels. This increased connectivity open the way for new dimension in growth but with the economic challenges. The challenges before the global economy are Poverty, Inequality, Inflation, rising food prices, unemployment and many more. Poverty always remains a big issue for India. Nearly 300 million of Indias people still live in abject poverty, and another 300 million hover precariously above the poverty line. Inflation the biggest problem of current era as considering the failure of US sub prime market and the subsequent recession in US economy, controlling the increasing rate of inflation is the greatest challenge that the world is confronting for some time now. With in very short span of time, we could see what happened in Indian economy. The inflation rate was 7.78 in March 2008 which has reached to 10.16 in May 2010. Inequality An increased trade globalization has only worked towards the eradication of this inequality. The urban poor are affected the most due to this rising food prices. The common trend is that the farmers leave their land and head to other lines of production in the urban areas. Recession has played it role in world economy. Every nation is trying hard to recover after this recent economic shock. There was a big fear in the Indian market related to global recession and the real impact was over the economic growth, capital flow and corporate restructuring. It is expected that the strong position of liquidity of capital and fund in the market, will give the nation new horizon to being developed with higher speed. A nation requires new techniques, innovative ideas, technology and skilled manpower to run the engine of growth, India too. This engine requires unlimited fuel for unlimited and hassle free growth. Financial and economical efforts are the sources which can help it out. It requires perfect policies and fund to make efforts successful. But the question arises that do we have sufficient fund or capital and proper policies with us? Growing international production and trade has accelerated the flow of international investment. A country requires international investment for enhancing its production, trade and distribution capabilities. The need for international investment is more pronounced in developing countries where the capital is scare. According to World Investment Report 1999, development priorities of developing countries
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include achieving sustained income growth for their economies by raising investment rates, strengthening technological capacities and skills, and improving the competitiveness of their exports in world market, distributing the benefits of growth equitable by creating more and better employment opportunities, and protecting and conserving the physical environment for further generations. International investment plays an important role in the above effort of the developing countries. Foreign Direct Investment (FDI) is the major part of International investment. One of the advantages of foreign direct investment is that it helps in the economic development of the particular country where the investment is being made. This is especially applicable for the economically developing countries. During the decade of the 90s foreign direct investment was one of the major external sources of financing for most of the countries that were growing from an economic perspective. It has also been observed that foreign direct investment has helped several countries when they have faced economic hardships. Foreign Direct Investment is a form of investment that earns interest in enterprises which function outside of the domestic territory of the investor. Foreign direct investment is that investment, which is made to serve the business interests of the investor in a company, which is in a different nation distinct from the investors country of origin.
is done basically in the way of provision of capital inputs. The importance of this factor lies in the fact that this transfer of technologies cannot be accomplished by way of trading of goods and services as well as investment of financial resources. It also assists in the promotion of the competition within the local input market of a country. The countries that get foreign direct investment from another country can also develop the human capital resources by getting their employees to receive training on the operations of a particular business. The profits that are generated by the foreign direct investments that are made in that country can be used for the purpose of making contributions to the revenues of corporate taxes of the recipient country. Foreign direct investment helps in the creation of new jobs in a particular country. It also helps in increasing the salaries of the workers. This enables them to get access to a better lifestyle and more facilities in life. It has normally been observed that foreign direct investment allows for the development of the manufacturing sector of the recipient country. Foreign direct investment can also bring in advanced technology and skill set in a country. There is also some scope for new research activities being undertaken. Foreign direct investment assists in increasing the income that is generated through revenues realized through taxation. It also plays a crucial role in the context of rise in the productivity of the host countries. In case of countries that make foreign direct investment in other countries this process has positive impact as well. In case of these countries, their companies get an opportunity to explore
Recent nancial scandals as we have seen in Satyam,
Enron, Tyco and Adelphia spoiled the whole market and it is becoming too diff cult for f nancial market to come out of this f nancial crises.
newer markets and thereby generate more income and profits. FDI also opens up the export window that allows these countries the opportunity to cash in on their superior technological resources. It has also been observed that as a result of receiving foreign direct investment from other countries, it has been possible for the recipient countries to keep their rates of interest at a lower level. FDI as Capital Supplier as it is expected to bring needed capital to developing countries. It becomes easier for the business entities to borrow finance at lesser rates of interest. The biggest beneficiaries of these facilities are the small and medium-sized business enterprises. FDI as a Remover of Balance of Payments Constraints as FDI provides inflow of foreign exchange resources and removes the constraints on balance of payments.
What FDI Provides {Advantage / Benef ts of FDI}:

Foreign direct investment permits the transfer of technologies. This
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FDI And The Development

Foreign direct investment has a major role to play in the economic development of the host country. The fact that the foreign direct investors have been able to play an important role vis--vis the economic development of the recipient countries has been due to the fact that these countries have changed their economic stances and have allowed the foreign direct investors to come in and improve their economies. It assists in helping economically underdeveloped countries by building up their own research and development bases that can contribute to the technological development of the country. This is a very crucial contribution as most of these countries are not able to perform these functions on their own. These assistances play their role especially in the context of the manufacturing and services sector of the particular country which make them able to enhance their productivity and advance economically. The money that comes in a country through the foreign direct investment can be utilized to buy or import technology from other countries. This is an indirect way in which foreign direct investment plays an important part in the context of economic development. Foreign direct investment can also be helpful in assisting the host countries to set up mass educational programs that help them to educate the disadvantaged sections of the society. It has also been observed over the years, that almost all countries use the money of FDI in order to develop their infrastructure like health or education. Technological infrastructure is one of the many
areas in which foreign direct investment is meant to benefit a country. With the help of foreign direct investment, the government can construct, as well as, improve the existing technological tools of the nation. As technological advancement assists a country in upgrading its industries and thus helps them to face the challenges of the contemporary global economy, it plays a very crucial role in the economic development of a country. Foreign direct investment is also capable of upgrading the health infrastructure of a particular country by way of providing highend equipments or medicines. Such investment is normally made by the world level organizations in countries that are economically backward and have no or little medical infrastructure at all. Foreign direct investment is playing its role significantly also in communication infrastructure. The money that is invested in a country by overseas entities can be used for the construction of roads, railways and bridges. These facilities establish connections with almost all the areas of a country and for transporting important services to everywhere. Foreign direct investment is also used for the purpose of educating the unskilled labor force that is present in a country. In India during the later stages of 80s and 90s there was a situation whereby there was a huge labor force but it was mostly unskilled and was employed in the unorganized sector. It was possible with the help of the financial assistance from the overseas direct investors to train these people so that they may be capable of being recruited into the industry. Foreign direct investment makes it easy to execute mass educational
programs that help in educating those people who remain out of the bounds of conventional and institutional education as they are not able to afford it or it may not be available in their areas.
Foreign Direct Investment (FDI) in India

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 investments are permitted through financial collaborations, through private equity or preferential allotments, by way of capital markets through Euro issues, and in joint ventures. 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. India actually receives less than half the FDI that the federal government approves. Foreign investment in India is permitted through the following modes:
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1. Through Joint ventures and

technical collaborations
2. Atomic Energy:
2. Through capital markets via

euro issues
3. Through the route of foreign

collaborations
4. Through private placement or

preferential allotment Although, the Government of India has permitted FDI in crucial sectors such as power, aviations, telecommunications etc., the following sectors cannot benefit from inflows of FDI:
Due to its impact on national security, this subject is under the sole control of the Central Government. The Constitution of India stipulates 3 lists for legislation of numerous subjects namely the Central list, State list and the Concurrent List. Atomic Energy finds a mark on the Central List and the Central Government has so sole control on legislation.
FDI INFLOWS:
As per the supply of this FDI, there was a tremendous inflow of foreign investment in India. Cumulative FDI equity inflows to India is US $ 1,32,432 million from August 1991 to March 2010. Out of these in the current decade from April 2000 to March 2010, total FDI inflows was US $ 1,15,729 million whereas in the current year from April 2009 to March 2010 the inflow was US $ 25,888 million. Opening up of door policies adopted by the Government of India through its new economic policies has attracted more investments in to the country. Indian Industries have gone global and in the same direction the inflow of FDI in to the country has increased at a faster rate. The Inflow of FDI into the country over various years is as follows:
3. Railway Transport 4. Coal and Ignite 5. Mining of Iron, Manganese,

Chrome, Gypsum, Sulphur, Gold, Diamonds, Copper and Zinc.
1. Arms
and Ammunition: National defense and security is solely within the control, regulation and supervision of the Central Government
Year (April-March) 1991-1992 (Aug-March) 1992-1993 1993-1994 1994-1995 1995-1996 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 Total
Amount of FDI inflows (In US$ million) 167 393 654 1,374 2,141 2,770 3,682 3,083 2,439 2,908 4,222 3,134 2,634 3,759 5,546 15726 24581 27331 25888 132,432
1000 0 500 0 0
1991- 1992 (Aug -March) 1994- 1995 1997- 1998 2000- 2001 2003- 2004 2006- 2007 2009- 2010 1992- 1993 1995- 1996 1998- 1999 2001- 2002 2004- 2005 2007- 2008 1993- 199 4 1996- 199 7 1999- 200 0 2002- 200 3 2005- 2006 2008- 200 9
FDI Flow to India from 1991-2010 (In US $ milli on)
3000 0 2500 0 2000 0 1500 0
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FDI EQUITY INFLOWS DURING FINANCIAL YEAR 2009-10

We can have a look over the FDI inflows to India from April 200 to March 2010 monthly-wise as it shows a true picture of this inflow. Here it is: Financial Year 2009-2010 (April-March) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. April 2009 May 2009 June 2009 July 2009 August 2009 September 2009 October 2009 November 2009 December 2009 January 2010 February 2010 March 2010 Amount of FDI inflows (In US$ mn) 2339 2095 2582 3516 3268 1512 2332 1735 1542 2042 1717 1208 25888 27331 - 0.5% (In Rs . crore) 11708 10168 12335 17045 15796 7326 10895 8081 7185 9386 7955 5497 123377 123025 + 0.3 %
9 9
0 150 0 100 0 500 300 0 250 0 200 0 400 0 350 0
FDI Inflow in 2009-2010 (In US $ mn)
2009-10 (up to March 10) 2008-09 (up to March 09) % growth over last year
May-09 Nov-09
Ju n- 09 De c-09
Ju l- 09 Jan- 10
Aug-09 Feb-10
Se p-09 Mar-10
The most important factor for India is the inflow of FDI in India from 2006-07. Till 2005-06 the figures were under US $ 6000 mn but from 2006-07, it rises to more than US$ 15,000 mn with a significant growth. In 2007-08, it grew to US $ 24581 mn and in 2008-09 to US $ 27331 mn which is the highest FDI figure till today. In 200910 there was a slight slope in the inflow as it was US $ 25888 mn (global recession played an adverse role) but the situation is in command. Hence there is no requirement of quoting any statement to justify the growth or soundness of India economic growth.
SHARE OF TOP INVESTING COUNTRIES FDI EQUITY INFLOWS

Amount in US$ in million Rank 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Country MAURITIUS SINGAPORE U.S.A. U.K. NETHERLANDS CYPRUS JAPAN GERMANY U.A.E. FRANCE 120 260 117 15,726 2006-07 6,363 578 856 1,878 644 58 85 514 258 145 24,579 2007-08 11,096 3,073 1,089 1,176 695 834 815 629 257 467 27,329 2008-09 11,208 3,454 1,802 864 883 1,287 405 626 629 303 25,888 2009-10 10,376 2,379 1,943 657 899 1,623 1,183 2,799 1,549 1,530 1,15,728 Cumulative Inflows 47,240 10,190 8,278 5,884 4,487 3,899 3,714 3% 1% 1% % of total inflows (US $) 43% 9% 8% 5% 4% 4% 3%
TOTAL FDI INFLOWS
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12,000 10,000 8,000 6,000 4,000 2,000 0

2006-07 2007-08 2008-09 2009-10
MAURI TIUS CYPRUS
SINGAPORE JAPAN
U.S. A. GERMANY
U.K. U.A.E.
NETHERLANDS FRANCE
In the above table and graph, we can see very clearly the top ten countries making investment in India. On the top position Mauritius is making investment with US $ 47,240 in previous four years following by Singapore, USA, UK, Netherlands, Cyprus, Japan, Germany, U.A.E and France. These top ten countries have made investment of US $. 1,15,728 in previous four years in total which allow India to expand its wings in open air.
Sectors Attracting FDI

The real beauty of FDI inflow to India is that it inflows to almost all the sectors which help the nation to grow with 360o dimension. Important sectors of the Indian Economy attracting more investments into the country are as follows: Amount US$ in million Rank Sector 2006-07 2007-08 2008-09 2009-10 Cumulative Inflows 23,640 9,872 8,931 % of total inflows (US $) 21% 9% 8%
1. 2. 3.
Services Sector (Financial & Non-Financial) Computer Software & Hardware Telecommunications (Radio Paging, Cellular Mobile, Basic Telephone Services) Housing & Real Estate Construction Activities (Including Roads & Highways) Power Automobile Industry Metallurgical Industries Petroleum & Natural Gas Chemicals (Other Than Fertilizers)
4,664 2,614 478
6,615 1,410 1,261
6,116 1,677 2,558
4,392 919 2,554
4. 5. 6. 7. 8. 9. 10.
467 985 157 276 173 89 205
2,179 1,743 967 675 1,177 1,427 229
2,801 2,028 985 1,152 961 412 749
2,844 2,868 1,437 1,177 407 272 362
8,357 8,059 4,627 4,565 3,130 2,666 2,469
8% 7% 4% 4% 3% 2% 2%
Different type of fuel is used in different type of engine and one type of fuel can run various type of engine,
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7,000 6,000 5,000 4,000 3,000 2,000 1,000 0
2006-07
Services Sector (F inancial & Non-F inancial)
2007-08
2008-09
Computer Softw are & Hardware Housing & Real Estate Power Metallurgical Industries Chemicals (Other Than Fe rtilizers)
2009-10
Telecommunications (Radio Paging, Cellula r Mobile, B as ic Telephone Services) Construction Activities (Including Roa ds & Highways) Automo bile Industry Pe troleum & Natural Gas
same is happening with FDI inflows in India. The FDI inflows in India is acting as fuel and helping in running of all types of engine as all sectors. By this table, we come to know about the FDI inflows in Indias various sectors which are enriched because of the FDI. Top ten sectors viz. Service, computer software and hardware, Telecommunication, Real estate, Construction, Automobile Power, Metallurgical, Petroleum and Chemicals industries are enjoying the taste of FDI as in previous four years they attract very good amount of investment.
FDI Covering the India

Ranks RBIs Office MUMBAI NEW DELHI BANGALORE AHMEDABAD CHENNAI HYDERABAD KOLKATA CHANDIGARH JAIPUR PANAJI KOCHI BHUBANESHWAR BHOPAL KANPUR Regional State Covered Amount of %age with FDI FDI Inflows inflows (in US $) (US $ in Million) 38970.97 22411.47 6897.07 6431.78 5498.75 4698.17 35.34 20.32 6.25 5.83 4.99 4.26 1.26 0.55 0.43 0.38 0.30 0.12 0.18 0.06
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.
Maharashtra, Dadra & Nagar Haveli, Daman & Diu Delhi, Part of UP & Haryana Karnataka Gujarat Tamil Nadu, Pondicherry Andhra Pradesh
West Bengal, Sikkim, 1392.91 Andaman & Nicobar Islands Chandigarh, Punjab, Haryana, Himachal Pradesh Rajasthan Goa Kerala, Lakshadweep Orissa Madhya Pradesh, Chattisgarh Uttar Pradesh, Uttranchal 608.13 469.42 421.93 331.03 246.29 202.91 64.62
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15.
GUWAHATI
Assam, Arunachal Pradesh, 64.10 Manipur, Meghalaya, Mizoram, Nagaland, Tripura Bihar, Jharkhand Sub. Total 0.39 21579.46 1,10,289.39 3,354.85 1,962.8 121.33 1,15,728.39
0.06
16. 17. 18. 19. 20.
PATNA
0.00 19.57 100.00
Rbis Regions Not Indicated3 Stock Swapped (From 2002 To 2009) Advance of Inflows (From 2000 To 2004) RBIs-NRI Schemes (From 2000 To 2002) GRAND TOTAL
The above table is showing the regional-wise investment in India where Mumbai is leading in attracting FDI followed by Delhi, Bangalore, Ahmdeabad, Chennai, Hyderabad, Kolkata, Chandigarh, Jaipur, Panaji, Kochi, Bhubaneswar, Bhopal, Kanpur, Guwahati and Patna. The data is showed in the order as ranks placed for top regions. This represents that FDI is inflowing in almost all the regions and areas of the nation which helps India in allround development. Now it may be conclude that the foreign direct investment has been able to improve the economical and infrastructural condition of a country. There is ample scope of technological development of a country as well. The standard of living of the general public of the host country could be improved as a result of the foreign direct investment made in a country. The health sector of many a recipient country has been benefited by the foreign direct investment. Thus it may also be said that foreign direct investment plays an important role in the overall economic and social development of a country and feeding the engine of growth successfully. Whenever economic and social developments take place vis--vis all global economic challenges are removed.
References:
1. Govt. of India: Rationalization
of the FDI Policy Press Note 4 (2006 series), ministry of Commerce & Industry, Department of Industrial policy and Promotion, 2006
11. Varma M L- International Trade

(Vikas, 2003)
12. Taggart-
The Essence of International Business (PHI) to till date).
13. World Investment Reports (1991 14. Dreze, J. & Sen, A.-IndiaEconomic Development and Social Opportunity, Oxford University Press, New Delhi, 2001
2. Rakshit, M- On Liberalizing
Foreign Institutional Investment, EPW, 2006
3. Govt. of India, RBI, Report of

the committee on Compilation of Foreign Direct Investment in India, Mumbai, October, 2002
15. Daniels- International Business

(Pearson Education) 2004.
4. World bank- World development

Reports
16. Various issues of The Economic

Times, The Times of India, Economic Survey, Business Today and YOJNA
5. Joshi,
S.M.- Macroeconomic Policies- Issues and Evidence, Anmol Publication Pvt. Ltd., New Delhi, 1995 International Business (Tata McGraw-Hill, 2002) Economy, Oxford University Press, New Delhi, 2000
17. Annual Report, FICCI 18. Annual Report, CII 19. IIFT Reports 20. Reserve Bank of India Monthly
Bulletin, Mumbai
6. Aswathappa-
7. Lal, D.- India in the World
21. http://finance.indiamart.com/
investment_in_india/fdi.html
8. Paul J- International Business

(Prentice-Hall, 2004)
22. www.fitchindia.com 23. http://rural.nic.in
9. Deresky
HInternational Business (PHI, 2003) (Tata McGraw-Hill,2002.)
10. Hill C W- International Business
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Environmentalism as Consumer Behaviourial Approach Towards Green Products

Dr. Harpreet Singh Chahal (Senior Lecturer) Guru Nanak Dev University Pooja Mehta (Assistant Professor) Punjab Technical University Environmentalism has fast emerged as an important global phenomenon during the last decade and concerns about environmental degradation have been increasing. As consumers have been recognizing the importance of protecting our environment, environmentalism has become a major issue in the marketplace. Increasingly aware of the seriousness of environmental problems, customers are becoming more ecologically conscious and are seeking to purchase eco-friendly products and services, preferring f rms that favor environmental practices. Customers are more and more concerned about environmental protection. Thus, they are beginning to change their habits of consumption and are demanding greener products whose manufacture has the least impact on the environment. This study attempts to explore the role of environmental concern in shaping consumer behavior towards green products. It has been reviewed from the studies of various researchers that consumers are becoming more and more aware and conscious regarding environmental problems as well as they also recognise the importance to save it. This environmental concern has created a special place for green products. Consumers nowadays are getting more sensitive for green products and for companies following green practices. Increased awareness and concern for environment have resulted in increased attention of consumers towards purchase and consumption of green products but the some studies also pointed out that all consumers who scored high environmental concern are not consuming green products due to its price inconvenience and doubt about their performance. Introduction
Environmentalism has fast emerged as an important global phenomenon during the last decade owing to increase in environmental related concerns and ecological pressures derived from nongovernmental organisations, local environmentalists and governmental agencies (Jain and Kaur, 2004 and Samhat et al., 2000). For the last few decades, concerns about environmental degradation have been increasing (Chan and Lam, 2002; Laroche et al., 2001). As consumers have been recognizing the importance of protecting our environment, environmentalism has become a major issue in the marketplace (Brown, 1996; Kalafatis et al., 1999). Increasingly aware of the seriousness of environmental problems, customers are becoming more ecologically conscious and are seeking to purchase ecofriendly products and services, preferring firms that favor environmental practices (Han et al., 2009; Kalafatis et al., 1999; Laroche et al., 2001; Roberts, 1996). In contrast to the 1960s and 1970s, however, when the emphasis went largely to political solutions to environmental and social ills, the current sensitivity focuses on consumer purchase behavior (Wells, 1990; Roberts, 1996). The trend had recently shifted to the consumers who have also become concerned with environmental problems and have started demanding more environmentally friendly products. Within the green marketing literature, the concept of environmentalism has
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been operationalised in terms of consumer goods, industrial goods and even services. The underlying importance of this concept relates to an economic perspective of how people use their limited resources to try to satisfy their unlimited wants. To put this into perspective, Polonsky (1994) defined green marketing as all activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants, such that the satisfaction of these needs or wants occurs, with minimal detrimental impact on the natural environment (Cheah and Phau, 2005). In recent years, with the gradual growth of population, and in order to satisfy living demands, the global living environment has become worse. The destruction of ecological systems is related to human beings life styles and consumption behavior (Wang, 2009). Our lifestyle has changed in this fast paced world as compared to few decades ago. Today, more and more people are caught up in an endless cycle of buying and throwing away, seeing consumption as a means of selffulfillment. Consumption is the reason why anything is produced. Demand towards products is driven by convenience and habit which in return is hard to change. Truly consumers have little knowledge of the link between their consumption choices and the environmental consequences (Ahmad & Juhdi, 2008). With the gradual rise of environmental consciousness and ecological protection, people have been participating in the establishment of environmental organizations and environmental laws in an attempt to prevent the continuous ecological destruction, through international trade sanctions. Nowadays green products and green consumption have become
measures proposed for ensuring sustainable development (Wang, 2009). Public opinion in Europe indicates increasing support for stronger measures to clean up the environment (Evans, 1990). Surveys indicate that 75% of Europeans favor urgent steps to protect the environment and most are prepared to pay the extra costs (Knight and Dimmler, 1989). Customers are more and more concerned about environmental protection. Thus, they are beginning to change their habits of consumption and are demanding greener products whose manufacture has the least impact on the environment (Peattie, 1993). Green products combine green concepts in the manufacturing and use- return process of these products while allowing the products to meet the same manufacturing regulations. Ottman defined green products as the products which are sustainable, without the use of pesticides, made with recycled materials and simple packaging. Therefore, green consumers can be defined as those who focus on the purchase and consumption process especially as it relates to the production process and the disposal of products, as well as their impact on the ecological environment. In a broad sense, green consumers signify consumers who have chosen to purchase green products and who have tried to minimize the impact of these products on the environment. It has been pointed out that the demands of traditional and green markets are quite different. Green marketing has emphasized a balance of quality, function, price and convenience with the least impact of these products on the environment (Ottman 1998).
We use the terms green and sustainable to refer to products, services, and practices whose manufacturing, purchase and use allows for economic development while still conserving, for future generations:
1. The earths biological diversity

and supporting ecological processes (such as nutrient, fire, and flood cycles), and
2. The
components of our economy and quality of life that require natural resources and depend on natures services, such as: Fertile soils and healthy populations of pollinators for agriculture; The diversity of tree species needed to provide lumber and paper, and the diversity of plants needed to provide critical medicines; Healthy fisheries to support jobs and provide uncontaminated fish to restaurants and markets; Intact wetlands and mangroves to protect our lives and businesses from storms and tsunamis; Healthy forests to act as a buffer against floods and landslides and to provide water filtration (intact forests can provide this service cheaper than human technologies!); Clean air to breathe,
Clean water to drink, and Natural areas for outdoor recreation, hunting, fishing, and spiritual rejuvenation (www.esa.org).
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A Shift towards Green Products

Trend spotters and forward thinkers agree that the 1990s will be the green decade-that environmentalism will be a major worldwide force (Kirkpatrick, 1990). Hume and Strand (1990) reported on a Gallup Poll of 1,000 randomly selected U.S. adults. They found that nine out of 10 respondents said they would be willing to make a special effort to buy products from companies trying to protect the environment. As of 1992, 54% of Americans read labels to see if products were environmentally safe, 57% sought products and packaging made from recycled materials, and 34% said they had boycotted a company that was careless toward the environment (Roberts, 1996; Roper, 1990). Vandermerwe and Oliff (1990) note the following shifts in consumer behavior that support the growth and diffusion of green marketing and ecologically conscious consumer behavior (ECCB):
segment.
Consumers accept, even demand, recycled products. Hume and Strand (1990) found that concern for the environment appeared across all demographic categories. The range in demand for green products has widened, from unbleached coffee filters to environmentally friendly diapers and biodegradable paint. The number of new green product introductions has grown dramatically from 24 (0.5% of all new product introductions) in 1985 to 810 (13.4% of all new product introductions) in 1991 (Ottman, 1994; Roberts 1996).
are closely related, and one would expect that if one is concerned about the environment, this concern may lead to more ECCB (Ecological conscious consumer behavior) (Antil, 1984). Lepisto (1974) found environmental concern to be a significant predictor of ECCB, positing that the more attractive the environment, the more an altruistic act is likely to be performed. Although researchers agree that customers attitudes toward green behaviors (ATGB) in their everyday lives is a significant factor in determining eco-friendly purchasing ( Kalafatis et al., 1999; Laroche et al., 2001; Manaktola and Jauhari, 2007), Some researchers pointed out that only a small portion of environmentally conscious customers actually purchases ecofriendly products in the marketplace because of high monetary and non-monetary costs and inconvenience (Maibach, 1993; Roberts, 1996). However, numerous findings indicated that more environmental concern tends to result in more environmentally friendly buying behaviors (e.g., Kalafatis et al., 1999; Laroche et al., 2001; Manaktola and Jauhari, 2007). For instance, Laroche et al. (2001) found that ecologically conscious customers who have a positive ATGB (Attitude towards green behavior) intend to spend more to consider ecological issues. In exploring consumer attitudes and behaviors toward green practices in the lodging industry, Manaktola and Jauhari (2007) verified that customers with ecological concerns prefer to make eco-friendly purchases. These research findings emphasized the significant role of ATGB in the decision-making process (Han et al. 2009).
Green products rapidly diffuse from small niche markets to mass markets. Wal-Mart, McDonalds, Coke, Procter and Gamble, Mobil and many others market environmentally friendly products and services (Advertising Age, 1991). Large numbers of consumers profess a preference for green firms. Many state they are willing to pay more for green products and services. Social investing and the sale of green shopping guides and environmental magazines are additional proofs of the growth in the green market
As stated earlier, awareness of the environment has increased substantially. Many individuals with a positive ATGB believe themselves to be environmentalists and expressing their willingness to make a special effort to buy a product or service from companies that follow environmental practices (Donaton and Fitzerald, 1992; Hume et al., 1989). These ecologically conscious customers, who are willing to change their buying behaviors for the environment, build more favorable images of firms that try to protect the environment (Han et al., 2009). Ecological (Kinnear et al., 1974) and environmental (Van Liere and Dunlap, 1980, 1981) concern have often been used as surrogates for social responsibility. That ecologically conscious consumers will score higher on a measure of environmental concern should not be a great surprise. These concepts
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Where is the Gap..?

Despite the increase in environmental concern, the present situation appears analogous to the green movement in England. A recent study by Simmons Market Research Bureau (1991), believed to be the first to link buying behavior with consumer attitudes on the environment, found that people in the U.S. do not actually buy the products they claim to prefer. High concern over the environment was found, but behaviors consistent with such concern were lacking. Berger and Corbin (1992) contend that this gap between attitude and behavior is reminiscent of the situation during the energy crisis of the late 1970s. Numerous studies found that attitudinal variables could not explain actual behaviors. Consumption in the U.S. has never been so high (Durning, 1990); yet, paradoxically, the U.S. publics concern for the environment is also very high (Stisser, 1994). Many researchers cite reasons for this attitude-behavior gap:
Consumers are confused about green products (Carlson et al., 1992; Schlossberg, 1991). Businesses hesitate to offer green products because of strict state enforcement of deceptive claims and because of scrutiny from various environmental organizations (Mcgrath,1992).Ultimately, we must investigate consumer behavior because it is such behavior, not expressed concern, that will help correct the problems currently facing the environment and create markets for green products and services (Roberts, 1996).
nowadays are getting more sensitive for green products and for companies following green practices. Increased awareness and concern for environment have resulted in increased attention of consumers towards purchase and consumption of green products but the some studies also pointed out that all consumers who scored high environmental concern are not consuming green products due to its price inconvenience and doubt about their performance.
References
1. Advertising
Age, Spurts and Starts (October 28, 1991), Corporate Role in 90s Environmentalism Hardly Consistent, GR14-16.
Green products are too expensive (Magrath, 1992). Price, quality, and convenience are still the most important decision factors; then green appeal may sway consumers. In other words, it can be a competitive advantage to have a green product, but not if the other factors are compromised (Ottman, 1994). Cynicism is also a culprit. Only 30% of U.S. adults believe comparative environmental competitive claims (Stisser, 1994). Until advertisers stop using gimmicks, there is little hope for consumerism to make a real contribution to a better environment (Pearce, 1990).
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However, as stated earlier, a general increase in environmental concern across the population strongly suggests that this important relationship be investigated. Only a small portion of U.S. consumers act on these concerns in the marketplace. As Maibach (1993) points out, environmental concern may be high, but many consumers feel that preservation of the environment is the responsibility of government and/or big business, or that the costs of complying are too high. Price, quality, convenience, and consumer cynicism and confusion over environmental claims all may intervene between environmental concern and consumer behavior.
2. Ahmad, S.N.B. & Juhdi, N.

(2008, July, 2-4), Consumers perceptions and purchase intentions toward organic food products: an explorative study on attitudes of Malaysian consumers. Paper presented at 16th Anuual Conference on pacific basin Finance, Economics, Accounting and management, Brisbane Australia.
3. http://www.pbfeam2008.bus.
qut.edu.au/papers/documents/ SitiNorBayaahAhmad_Final.pdf
4. Antil, John H. (1984), Socially

Responsible Consumers: Profile and Implications for Public Policy, Journal of MacroMarketing, Vol. 4, pp. 1839.
Conclusion
This study attempts to explore the role of environmental concern in shaping consumer behavior towards green products. It has been reviewed from the studies of various researchers that consumers are becoming more and more aware and conscious regarding environmental problems as well as they also recognise the importance to save it. This environmental concern has created a special place for green products. Consumers
5. Berger, Ida E., and Corbin,

Ruth M, Perceived Consumer Effectiveness and Faith in Others as Moderators of Environmentally Responsible Behaviors.Journal of Public Policy & Marketing 11 (2) (1992): 79-88.
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Conceptualization of Sustainable Development Issue and Consumption Pattern of Consumers

Dr. Pradeep Kautish (Assistant Professor) Jaipuria Institute of Management Sustainable development requires a fundamental change of consumption patterns in the long run which cannot be appropriately analyzed within the traditional neoclassical paradigm. This paper discusses the implications of alternative theoretical approaches, such as household production theory, the neo-institutional concept of bounded rationality and the evolutionary concept of path-dependency. Compared to neoclassical economics, these approaches paint a different picture of the determinants of consumer behavior with far-reaching theoretical and political implications. Firstly, a sustainable change of consumption patterns does not appear to be a problem of individual welfare losses, but rather of overcoming a social and institutional lock-in. Consequently, we need new eff ciency criteria appropriate to assess dynamic social processes. Secondly, consumer behavioral change is not only inf uenced by relative prices. The design of institutional arrangements should therefore consider other factors such as information barriers, social norms of behavior and cumulative processes of imitation Introduction
In recent years it has become widely accepted that sustainable development requires longterm fundamental economical and psychological change. This change must involve not only new technologies, but also new institutional arrangements and last but not least new consumption patterns across the globe. Achieving durability of goods, the private reduction of energy consumption and a new modal split in transportation is not so much a problem of technological possibilities, but rather one of behavior, preferences and individual organization. This begs the question of what economic theory can contribute to this problem of dynamic change and what kind of theoretical approach is appropriate to deal with it. What are the key factors affecting the long-term development of consumption patterns? And how can this process be influenced and guided for long term? Traditional consumer theory is based on rather strange assumptions when it comes to explaining processes of long-term change. It is founded on the view that households have stable preferences for certain market goods and maximize a utility function assuming perfect information. Accordingly, individual consumer behavior only depends on relative prices and income. For any given set of prices and income, there is exactly one consumption optimum the household chooses and maintains over time. Consumption can only be changed by altering prices or income, the new optimum again being determined by the individual preferences. This approach takes no account of time, history, transaction costs or the institutional framework; moreover, no endogenous change or social feedback occurs. Not surprisingly, the traditional neoclassical analysis and evaluation of policy instruments to attain environmental goals appears to be lob sided. Environmental policy recommendations are focused on how to get the prices right, either by taxes and tradable permits or liability law. The general advantages of these marketbased instruments cost efficiency, incentives to innovation are indisputable. However, the drawback of this approach is that it seems impossible to achieve sustainable consumption patterns exclusively via governmental interventions in relative prices. As previous experience shows, the political implementation of, for instance, environmental taxes are rather difficult. Distributional conflicts and political resistance usually result
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in tax rates which are too low to induce a fundamental change in consumer behavior. Moreover, neoclassical economics involves a normative cost-benefit analysis that appears inappropriate for long-term processes of consumer behavioral change. According to this approach, the reduction of negative externalities leads to benefits, whereas costs result from the distortions caused by interventions. If current consumer choices reflect the welfare optimum with given preferences, policy instruments designed to change individual behavior will inevitably lead to utility losses and/or abatement costs at the individual level.
discuss the implications of these new approaches for the problem of long-term change in consumer behavior. Compared to the neoclassical view, they paint a completely different picture concerning the potentials and restrictions for sustainable consumption patterns. Moreover, it becomes obvious that static efficiency criteria still dominating normative economic analysis are not appropriate if we consider an evolutionary process of behavioral and institutional change. Consumer theory as introduced by Becker and Lancaster opens up a completely different view of the consumption process. Instead of passively consuming what the market supplies, households are regarded as economic actors autonomously creating their own utility. This view point has important implications concerning the long-term potentials for sustainable change especially if the assumption of perfect rationality still used in the existing theoretical work on household production is discarded. The fundamental idea of this approach is that market goods and services are merely inputs of the consumption process. Together with time and human capital reflecting the skills and experiences of the household, these market inputs are transformed into basic commodities in line with a personal production function (Stigler/ Becker, 1977). The commodities or needs, not the goods themselves, are what the consumer really cares about. Examples include nutrition, clothing, transportation, health, fun and social standing. Consequently, the utility function a household maximizes is related to these commodities. Considering that consumption is a complex production process and that utility is related to basic
Review of Literature
Starting from such a theoretical framework, policy instruments supposed to induce a fundamental change in consumption patterns will cause huge welfare losses even in the long run. During the past few decades, a shift away from the narrow view of traditional neoclassical economics has taken place in the theoretical foundations of microeconomics in general and household behavior in particular. Firstly, there is the new consumer theory with its central notion of household production (Michael and Becker, 1973); (Lancaster, 1966). Secondly, there is the concept of bounded rationality questioning the view of households as perfectly informed maximizes and serving as a starting-point for analyzing the role of the institutional framework in guiding individual consumer behavior. Finally, there are evolutionary theories of technological and social change incorporating innovation, learning and preference evolution into economic analysis. The objective of this study is to
commodities, the satisfaction of a specific need does not depend on a single market good. On the contrary, there may be a great deal of combinations of market inputs, time and skills which give rise to the same commodities (Lancaster, 1966). A person may drive a big car or become involved in the local community to secure a high social standing. Nutrition may be obtained by vegetarian food or (also) by meat. Mobility is possible by car, train or bicycle. These examples illustrate that every household faces highly complex decisions concerning the alternative ways of producing the desired commodities. In view of the enormous complexity of the decision tasks, utility maximization clearly transcends human cognitive abilities. If we assume the more realistic concept of bounded rationality, including incomplete information, cognitive limits and satisfying (Simon, 1957), it becomes obvious that consumers choices are probably inefficient most of the time. Even if an individual feels contend with his or her personal lifestyle, there will always exist unexploited opportunities to increase utility by improved commodity production (Choi, 1993). Lancaster (1966) summarizes the main sources of suboptimal consumer choice as follows: In consumption, as in production, the prime reasons for inefficient use of the existing technology are ignorance and lack of managerial skill. The consumer may not be aware that a certain good possesses certain characteristics or that certain goods may be used in a particular combination to give a specified bundle of characteristics. Unlike commercial production, the market mechanism does not eliminate inefficient consumers; as a result, inefficiencies in consumption will persist to a
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certain degree, even in a highly competitive market system (Lancaster, 1966). Witt (1987) explains inefficient behavior with biological characteristics of the human brain. In standard situations, consumers rely on past experiences and proven patterns of behavior which are committed to their memory and normally guarantee a relatively high level of efficiency. However, when confronted with new problems in a rapidly changing environment, the cognitive limits of the brain become obvious: people use rules of thumb, consider only a few of all possible solutions, and find it difficult to appreciate far-reaching implications. As they acquire more and more experiences, consumers learn about the adequate behavior required to efficiently achieve the desired commodities. Thus, household production can be viewed as a trial-and-error process of continuous learning in which consumers attempt to discover more efficient consumption patterns. With the concepts of household production and consumption efficiency, it becomes obvious that the notion of innovation can no longer be confined to commercial production (Lancaster, 1966). Innovation is generally defined as the introduction of a new production function, i.e. a new combination of factors and knowhow, allowing a higher output with given input (Schumpeter, 1993). Accordingly, behavioral or social innovation means that a household introduces a new combination of purchased market goods, time and human capital to obtain a higher commodity output with its given income. Unlike industrial innovation, new production methods in the household sector have so far received little attention
from economists. Nevertheless, behavioral innovations may be significant for sustainable development and individual welfare. As empirical research indicates, there is a great potential for welfare-enhancing and ecologically beneficial change in consumption, even in the short term. One example is the field of energy conservation. Numerous studies on home energy consumption (Feist, 1986); (Bosma, 1990); (Lovins and Lovins, 1991) have assessed a high potential for energy conservation and have suggested that a switch towards more efficient standard technology in the end-use (better insulation of homes, compact fluorescent lamps, low-energy refrigerators, washing machines and other electrical household equipment) would result in significant conservation at negative costs (Cogoy (1995). Moreover, the concept of household production suggests that there exists an even greater potential for sustainable change without utility loss in the long run. The crucial question is whether there are fundamental re-combinations of factors which lead to the same commodities. This would be impossible in the traditional neoclassical theory of consumer demand. However, in the household production approach, the potential for change depends on how basic the commodities are. As Becker (1996) notes, most of the needs in developed countries are rather abstract and can basically be fulfilled by a broad variety of goods or activities. This corresponds to the psychological theory of Maslow (1970), which states that there are only a few fundamental needs in hierarchical order; in modern societies, needs like social appreciation and self-realization play a dominant
role for human behavior. Some psychologists merely consider striving for comfort and joy depending on the level and change of emotional excitement as the basis of all consumer needs. The way these commodities are produced at a certain time closely depends on the cultural and institutional framework and consequently varies considerably between different societies. As a result, consumption patterns seem to be much more flexible in the long run than traditional neoclassical theory suggests. Current behavior is not an optimum choice determined by stable preferences, but rather one possibility of fulfilling human needs. However, if consumers can achieve the desired commodities in a completely different way, why is it so difficult to realize the potentials for sustainable behavior? Is it merely a lack of information preventing consumers from choosing ecologically beneficial alternatives? What are the crucial factors bringing about stability in consumption patterns over time?
Consumption Patterns
In recent years, there has been growing interest in the analysis of dynamic processes of social change and development. One of the basic approaches is the work of North (1981 and 1990) focusing on the problem of institutional change and its implications for economic performance. Dynamic aspects of market systems are being increasingly analyzed within the theoretical approach of evolutionary economics (Witt, 1990) and (1992), Erdmann (1993a)). The main focus of the huge, proliferating literature in this field of research has been the problem of industrial innovation and technical change (Dosi, 1982);
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(Dosi et al., 1988); (Freeman, 1992). Moreover, evolutionary approaches are applied to explain human behavior and even preferences (Axelrod and Hamilton, 1981); (Gth and Yaari, 1992); (Kuran, 1991); (Huck, 1997). One of the central theoretical ideas of this work is the pathdependency of social processes. According to this view, economic development is largely driven by self-reinforcing mechanisms giving a certain direction to the process of change. Positive feedback can easily result in inferior economic outcomes. Once random economic events select a particular path, the choice may become locked-in regardless of the advantages of the alternatives, (Arthur, 1990, 1980). This lockin effect is one of the major economic arguments against the general dynamic efficiency of market systems concerning longterm technological development. However, North (1990, 92) successfully applied this idea to explain the persistence of inefficient institutions over long periods of time. Obviously, the mechanism of positive feedback is not confined to a certain sphere of economic development. The question arises whether the concept of path-dependency can be transferred to explain the stability of consumption patterns, too. Proceeding from the idea of household production, there seems to be no essential difference between industrial and consumption technology. Dosi (1982) introduced the notion of technological paradigm to underline that the process of technological change is focused on selected patterns of solution and therefore blind to the variety of other possibilities. Similarly, one could speak of consumption or home production paradigms to illustrate the fact that consumption is shaped by certain behavioral
patterns. Eating meat every day or driving to work in ones own car may be just as much production paradigms as fossil-fired power plants or end-of-pipe technologies. However, the analogy may not hold when it comes to the causes and factors sustaining a certain path. Consequently, we have to analyze the specific barriers preventing consumers from choosing different (ecologically beneficial) behavioral patterns. One of the key factors in sustaining certain consumption patterns over time is the mechanism of habit formation. In their present choice, consumers rely heavily on their past decisions. Notably, the economic implications of habit formation were an intensively discussed topic in the 1970s (Pollak, 1970); (Pollak, 1976), (El-Safty, 1976); (Hammond, 1976). Most economists would agree that past consumption patterns are an important determinant of present consumption patterns (Pollak, 1970) in these former approaches, habit formation is modeled as an endogenous change of tastes; an individuals current preferences are assumed to depend on past consumption. These economic approaches are founded on psychological learning theory viewing habitualization as a result of continuous reinforcement over time (Witt, 1987); (Wiswede, 1995). If a consumer is basically content with his or her choice, problemsolving behavior is progressively replaced by routinized responses. An active search for new solutions is likely only if there are strong hints that current behavior is no longer appropriate. In addition to the psychological view, there are also economic explanations of habitual behavior stressing the individual costs of decision and change. Proceeding from household production theory, Stigler and Becker (1977) explain the stability of behavioral patterns
with specific consumption capital accumulated over time. As stated above, this capital consists of all the information and skills acquired to increase the productivity of a certain consumption activity. Changing this activity depreciates the accumulated human capital. The costs of searching for information and of applying the information to a new situation are such that habit is often a more efficient way to deal with moderate or temporary changes in the environment than would be a full, apparently utility-maximizing decision (Stigler and Becker, 1977). This view represents a transaction cost approach. Confronted with a decision problem, an individual can either apply habitual patterns of behavior or evaluate the costs and benefits of all the alternatives. Because of the huge information costs of rational decisions in a world of uncertainty, people may have no other choice than to rely on proven paradigms or routines (Choi, 1993); (Nelson and Winter, 1982). Without a paradigm there will be no decision and no action, (Choi, 1993). Another source of behavioral stability over time is the social interdependence of consumption. Individuals are not only influenced by their past experience, but also by the behavior of other individuals in their group or society. Although hardly used in standard neoclassical approaches, the social character of individual behavior has a long tradition in economic thought (Duesenberry, 1949); (Leibenstein, 1950); (Krelle, 1974); (Becker, 1996). The stability of consumption patterns over time is caused or at least reinforced by a positive correlation of individual behavior. Leibenstein (1950) introduced the notion of the bandwagon effect to take into account the
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desire of people to wear, buy, do, consume, and behave like their fellows. As a result, even inferior consumption patterns can have a strong tendency to persist because people are trapped by their desire to adapt to the common way of life. There are several explanations for the phenomenon of conformity and adaptation in behavior. In some economic approaches, social interdependence is modeled as a mechanism of endogenous preference formation (Krelle, 1972); Gaertner (1974); (Kapteyn et al., 1980). Individual preferences are not seen as given and stable over time, but dependent on the consumption of others. Conformity can also be interpreted as a way of fulfilling basic needs like social acceptance and recognition, which can only be achieved by adapting to the dominant behavioral patterns of society or a certain group (Becker, 1996). According to the psychological theory of social learning (Bandura, 1971), complex behavioral patterns are usually not the result of rational choice or an individual trial-and-error process, but rather imitated and learned by others. Additionally, imitation can be explained by information costs and bounded rationality (Conlisk, 1980); (Bikhchandani et al., 1998). In situations of high uncertainty, it may be cheaper to rely on others than to gather the information required for an autonomous decision. However, as Bikchandani et al. (1998) show, this can easily lead to informational cascades and mass behavior prone to error and fads. Furthermore, consumption patterns have a social character in that they are guided and stabilized by the institutions of a society. This stabilization emerges because institutions and
individual habits of behavior are intertwined and mutually reinforcing (Hodgson, 1998). As North (1981) states, individual beliefs and cognitive frameworks are learned within the ideologies, customs and codes of behavior commonly shared in a society. How a person views the world and what kind of behavior he or she considers appropriate is therefore deeply rooted in the institutional structure. Choi (1993) points to the fact that conventions and norms are the social analogue of individual patterns of behavior, reinforcing their inertia over time. Simultaneously, social rules and constraints are stabilized and reinforced by the mechanisms of habit formation and adaptation. Concerning stability over time, it is of crucial importance that individual behavioral patterns are primarily shaped by informal institutions such as conventions, norms and ideologies that usually have a certain high degree of persistency (North, 1990); (Kiwit and Voigt, 1995) otherwise they would not fulfill their important function of reducing uncertainty by providing a stable structure for everyday life. As a result, it may be very difficult to change ecologically harmful behavioral patterns, even if they are inferior, as long as they remain rooted in an existing, widely accepted institutional framework. Finally, consumption activities are frequently connected to a certain techno-economic framework which has been developed and refined over long periods of time (Freeman, 1992); (Kemp, 1997). This framework reinforces traditional consumption patterns because the infrastructures and technologies required for an alternative way of life are usually unavailable in the short term. The automobile system may serve as an example (Schot et al., 1994). It is partly due to the quality of the
existing road system and the high technological standard cars have attained over time that driving is such a convenient means of transport. Additionally, the adaptation of housing, shopping and the recreational infrastructure to the automobile system must also be borne in mind. An equivalent techno-economic framework for a different, ecologically less harmful transportation system does not exist and would require a long time to evolve. Consequently, having no car currently means a difficult and time-consuming way of life. The interactions and positive feedback between behavior, institutions, infrastructure and technologies illustrate that the path-dependency of consumption patterns should not be seen as an isolated phenomenon. Instead, it should be regarded as part of a complex system which can be described by the co-evolutionary paradigm (Norgaard, 1984); (Rennings, 1998). Behavior, institutions and the technoeconomic framework mutually influence each other and reinforce a common path of development either a socially beneficial or a harmful one. The common social paradigm represents the selection environment for a new way of consumption including much more than simply the current relative prices and incomes. The key problem of new consumption patterns is that of compatibility with the present, historically shaped environment (Kemp, 1997).
Determinants of Consumption Change

The previous analysis gives a variety of explanations for the stability of ecologically harmful consumption patterns over time. Especially if we consider the cumulative feedback between
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these factors, it becomes obvious how difficult it may be to leave a traditional path of consumption which has evolved together with a corresponding institutional and techno-economic framework. This theoretical perspective of behavioral inertia is consistent with the historical evidence; however, variation and change are also important parts of social evolution. Throughout history, periods of relative stability have sooner or later been replaced by periods of dramatic change (North, 1981). If we want to analyze the long-term potentials for sustainable development, acquiring a better understanding of these dynamic processes is crucial. The factors bringing about change in everyday consumption behavior have not yet been explored very much in economics. Nevertheless, some theoretical concepts shed light on the main determinants of behavioral change. First of all, fundamental changes in relative prices and income considerably influence long-term consumption patterns. As Michael and Becker (1973) show, this includes not only different prices for market goods and services, but also changes in the relative prices of basic commodities. A continuous fall of certain prices, e.g. of energy, together with a rise of other prices, e.g. of unskilled labor, enables new lifestyles and simultaneously destroys the economic basis for more traditional patterns. Many aspects of our present culture and way of life can be explained by these determinants. The introduction of a new technology, such as the World Wide Web, or the establishment of a new infrastructure, e.g. the road system, has a comparable effect, because it reduces the prices of the corresponding basic commodities (communication, transportation etc.). However, as North (1990,
85) states, price ratios and technological innovation are not the only factors inducing social change. Of similar importance is the emergence of new ideas, ideologies and moral judgments leading to new subjective constructions of the models that determine choices. The influence of religions on individual behavior and consumption may serve as a striking example. As Weber (1905) demonstrated, Protestant ethics considerably shaped the individual attitude to work and thrift in European countries and was a major factor behind economic growth. The view of human dominance over nature rooted in the Christian religion leads to a different attitude towards environmental deterioration than the idea of man being part of nature on which some other religions are based. Accordingly, the idea of sustainable development might serve as a new ideological principle inducing a change in consumption patterns. However, the existence of a new idea is clearly inadequate by itself; it has to become an essential part of the institutional framework, individual moral judgments and views of the world. Proceeding from the idea of social innovation, the question arises whether the concept of entrepreneurs accelerating the process of technological change can (at least partly) be applied to consumer behavior. To create new consumption patterns, pioneers are necessary just as they are for the introduction of new products or production methods. However, the motives of the consumption pioneer differ from those of a Schumpeterian entrepreneur. Whereas the prospect of high profits plays an essential role for the latter, the former is instead motivated by the desire to
dissociate him from the hoi polloi. Since Leiben-stein (1950), this has been known as the snob effect. In addition, another important motive for behavioral change is different ideological and moral views. From an evolutionary point of view, the important function of these pioneers is to test new solutions, to achieve learning effects and to build up the institutional and techno-economic framework required to make a new lifestyle more attractive. Without pioneers overcoming the problems and barriers typically arising at first, radically new ways of consumption would probably never become acceptable to average people. One crucial problem of new consumption patterns is diffusion, i.e. broad acceptance and realization. Unlike market innovations, there is no competitive pressure forcing consumers to adopt a superior way of life (Lancaster, 1966). Presumably, the central mechanism of diffusion is the bandwagon effect, the desire of people not to be left out. The interaction of snob and bandwagon effect (pioneers and imitators) usually serves as an economic explanation of fashion cycles. However, there is no guarantee that a certain lifestyle is actually seen as worth being imitated. Primarily, inducing a cumulative process or fashionable trend appears to be a problem of marketing and promotion. A new way of life has to be made attractive to consumers before they are willing to accept it. In a world of uncertainty, this decision partly depends on the reputation of consumption pioneers i.e. whether they are regarded as experts/fashion leaders or as social outsiders. Moreover, there may be critical levels of diffusion before a new style serves as a model to others. A hundred
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pioneer consumers may have no effect on mass behavior, whereas a hundred thousand induce a cumulative process of imitation.
Discussion and Conclusions

As a whole, the new theoretical approaches of consumer behavior including household production theory, bounded rationality and evolutionary economics paint a different but still ambiguous picture concerning the prospects of sustainable change. On the one hand, there seems to be a huge potential for ecologically beneficial consumption in the long run. Information deficits, cognitive limits and the possibility of producing basic commodities such as social acceptance in a completely different way indicate that current consumption patterns can be changed dramatically without utility losses. On the other hand, the evolutionary concepts of path-dependency and lockin of behavioral patterns caused by habit formation, conformity, institutional and techno-economic inertia illustrate the difficulties and barriers which have to be overcome to induce a process of change. What are the economic and political conclusions to be drawn from this theoretical view? Firstly, an evolutionaryinstitutional approach to consumer theory as suggested here has important and farreaching normative implications for economic analysis. Different institutional arrangements to change individual behavior in an ecologically beneficial way are usually assessed by static efficiency criteria, i.e. by comparing their welfare effects or their cost-efficiency as defined by neoclassical economics. This assessment is based on the
assumption that every change in consumer choice caused by policy instruments inevitably leads to abatement costs and/ or utility losses in the private sector. However, if there are no utility losses of change in the long run, but rather informational, social and institutional barriers preventing people from choosing a new and perhaps superior behavioral pattern, the standard definition of efficiency does not consider the crucial economic problem. In the long run, sustainable development is not necessarily a problem of lower welfare, but rather of overcoming a social and institutional lock-in. Consequently, if we want to assess the long-term efficiency of policy instruments and institutional arrangements, we need new efficiency criteria appropriate to dynamic social processes. Starting from the hypothesis that behavioral change is prevented not by imminent utility losses, but rather by cognitive limits and social interdependencies, normative economic analysis might concentrate on (political and private) transaction costs caused by different institutional arrangements to overcome these barriers. Essentially, the sustainable change of consumption patterns appears to be a problem of establishing appropriate governance structures and social mechanisms motivating consumers to a new way of life. These structures must be able to induce an irreversible, selfreinforcing process towards new ecologically beneficial behavioral patterns. Alternative institutional arrangements that are basically appropriate for such a complex coordination task may differ dramatically with respect to their transaction costs. Consequently, these costs could serve as the main criterion
to assess the economic efficiency of policy instruments. Secondly, the theoretical approaches to consumer behavior discussed in this essay also have important positive implications concerning the mechanisms that can be used to induce a sustainable change of behavioral patterns. According to neoclassical economics, individual behavior can only be influenced by a change in relative prices, e.g. with an ecological tax reform, a system of tradable permits, or public subsidies for certain goods and services. Other institutional options to support ecologically beneficial behavior appear to have no effect in this theoretical framework. However, there are usually political, economic and financial restrictions which make it almost impossible to achieve a sustainable change of behavior by taxes and public expenditures alone. Consequently, other factors supporting sustainable change must be found. The theoretical approaches discussed here give at least some indications concerning the basic economic and social mechanisms that should be considered to design new and effective institutional arrangements. From an institutional point of view, one of the crucial factors is the information available to the consumer. Thus, environmental policy should be focused on overcoming information barriers, e.g. by product labels or consumer advice concerning improved ways of household production. Moreover, the government could directly support innovative behavior. The evolutionary view suggests that new consumption patterns need opportunities to achieve learning effects and develop the required institutional and techno-economic framework. Consequently, public innovation policy should be focused more on consumption
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patterns that can serve as a model to the average consumer. Additionally, the government could attempt to reinforce the cumulative process of imitation, e.g. by gaining the support of individuals who are widely accepted as experts or fashionleaders. Finally, the possibilities of establishing sustainability as a socio-economic paradigm and guiding norm of behavior have to be explored. As a result, the new theoretical approaches indicate the necessity of a cooperative role by the state, stimulating and supporting new consumption patterns in a (co-) evolutionary process of institutional, technological and behavioral change. However, more research into the design of such a policy approach is needed.
of Economic Perspectives, 12, 151-170.
Growth and the Environment, London-New York.
8. Choi, Y. B. (1993), Paradigms

and Conventions. Uncertainty, Decision Making, and Entrepreneurship, Ann Arbor.
17. Gaertner, W. (1974), A Dynamic

Model of Interdependent Consumer Behavior, Journal of Consumer Behavior, 34, 327-344.
9. Cogoy, M. (1995), Market and

non-market determinants of private consumption and their impacts on the environment, Ecological Economics, 13, 169180.
18. Gth, W. and M. Yaari (1992),

An Evolutionary Approach to Explain Reciprocal Behaviour in an Simple Strategic Game, pp. 23-34 in: U. Witt (ed.), Explaining Process and Change - Approaches to Evolutionary Economics, Ann Arbor.
10. Conlisk, J. (1980), Costly

Optimizers versus Cheap Imitators, Journal of Economic Behavior and Organization, 1, 275-293.
19. Hammond,
P. J. (1976), Endogenous Tastes and Stable Long-Run Choice, Journal of Economic Theory, 13, 329-340.
11. Dosi, G. (1982), Technological

paradigms and technological trajectories. A suggested interpretation of the determinants and directions of technical change, Research Policy, 11, 147-162.
20. Hodgson, G. M. (1998), The

Approach of Institutional Economics, Journal of Economic Literature, XXXVI, 166-192.
References
1. Arthur, W. B. (1988), Selfreinforcing mechanisms in economics, pp. 9-31 in: P. W. Anderson,
21. Huck, S. (1997), Institutions

and Preferences: An Evolutionary Perspective, Journal of Institutional and Theoretical Economics, 153, 771-779.
12. Dosi, G., C. Freeman, R. Nelson,

G. Silverberg and L. Soete (eds.) (1988), Technical Change and Economic Theory, London.
2. K. J. Arrow and D. Pines (eds.),

The Economy as an Evolving Complex System, Redwood.
22. Kapteyn, A., T. Wansbeek and J. 13. Duesenberry,

J. S. (1949), Income, saving and the theory of consumer behavior, Cambridge. Buyze (1980), The Dynamics of Preference Formation, Journal of Economic Behavior and Organization, 1, 123-157.
3. Arthur, W. B. (1990), Positive

Feedbacks in the Economy, Scientific American, 80-85.
14. El-Safty, A. E. (1976), Adaptive

Behavior and the Existence of Weizsckers Long-Run Indifference Curves, Journal of Economic Theory, 13, 319-328.
4. Axelrod, R. and W. D. Hamilton

(1981), The Evolution of Cooperation, Science, 211, 1390-1396.
23. Kemp, R. (1997), Environmental

Policy and Technical Change, Cheltenham-Brookfield.
24. Kuran, T. (1991), Cognitive 15. Erdmann,

G. (1993), Evolutionary Economics as an Approach to Environmental Problems, pp. 65-96 in: H. Giersch (ed.), Economic Progress and Environmental Concerns, Heidelberg. C. (1992), The Economics of Hope. Essays on Technical Change, Economic Limitations and Preference Evolution, Journal of Institutional and Theoretical Economics, 147, 241-273.
5. Bandura, A. (1971), Social

Learning Theory, Morristown.
6. Becker, G. S. (1996), Accounting

for Tastes, Cambridge-London.
25. Lancaster, K. (1966a), Change

and Innovation in the Technology of Consumption, American Economic Review, 56, 14-23.
7. Bikhchandani, S., D. Hirshleifer

and I. Welch (1998), Learning form the Behavior of Others: Conformity, Fads, and Informational Cascades, Journal
16. Freeman,
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Wisdom Voyage
New Era in Retail: The Road and Challenges Ahead for Indias Organized Retailers
Dr. C. Natarajan (Assistant Professor) Directorate of Distance Education, Annamalai University Renu Vij (Assistant Professor) NIET, Greater Noida Introduction
Retailing has emerged as one of the most dynamic and fast paced industries with several players entering in the market. Indias vast middle class and its retail industry are key attractions for global retail giants wanting to enter newer markets. Sound economic growth, rising population, changing life style and rising incomes have generated significant demand for a broader range of retail goods among Indian consumers, presenting a wealth of opportunities for international retailers. Retailing is Indias largest industry, accounting for over 10 per cent of the countrys Gross Domestic Product and around eight per cent of the employment (FICCI, 2005). Indian retail is expected to grow 25 per cent annually (IBEF, 2007) and it has seen an unprecedented growth for the last 15 years. This is the post liberalization era, because of which many multinationals set foot in India, created numerous job opportunities at various strata levels and helped India grow. Indias retail market has experienced tremendous growth, more than doubling in size over the past decade. The inherent attractiveness of this segment lures retail giants and investments are likely to sky rocket with an estimate of Rs. 20 to 25 billion in the next 2-3 years, and over Rs 200 billion by end of 2010. The Indian retail industry in valued at about $300 billion and is expected to grow to $427 billion in 2010 and $637 billion in 2015. These indications give a positive notion that organized retailing has arrived in the Indian market and is here to stay. According to the KPMG report, the organized retail is expected to rise by 20-25 per cent by 2010 and the retail sector will grow faster than GDP. and the Piramals investing in the sector. Various other behemoths of the Indian corporate sector like the Birlas, the Hero Group and Reliance have expressed their intention of joining the Indian retail foray. Hero Group has recently declared its plan to enter retailing by opening retail stores on the lines of 7-11 Stores. The Birlas have marked their presence by acquiring Madura Garments, while Reliance plans to develop its retail venture and fuel retail network simultaneously. Even the public sector oil companies like HPCL, IOCL and BPCL realized their potential for entering into retailing by leveraging their supply chain network. The following are the reasons for the corporate sector to enter into retailing.
Entry of Organized Retailers

The Indian retailing sector has been largely unorganized in the post independence period, to the most part untouched by corporate business principles. It was only in 1980s when the economy started to be opened, the situation began to change. Companies like Bombay Dyeing, Raymond and Grasim from the textiles sector were the first ones from the corporate world to step into the retailing by opening their own outlets. Titan is another successful story of a corporate creating a great retailing concept, by establishing a series of elegant watch showrooms across the country. The post liberalization era witnessed new wave of entrants in the sector with large conglomerates like Tatas, the RPG Group, Rahejas
AT Kearney has ranked India as the second most attractive retail market after Russia, in its Global Retail Development Index 2004 report. Going three ranks up and surpassing China, in contrast to last years position, India has achieved the second position despite of stringent FDI rules and regulations. The improvement in living standards and continuing economic growth has been the major reasons behind international retailers gaining confidence in the Indian retail market.
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Increase in per capita income and the market size of the country that offers tremendous promise as its population is another reason for the entry of corporates in retailing business. The mere 2% share of the organized retail sector in the total Indian retail market worth Rs. 10000 billion makes it a hot cake for Indian corporate sector. With increasing number of nuclear families, working women, greater work pressure and increased commuting time, convenience has become an integral part of shopping. Customers want all-under-one-roof places to shop that offers them convenience and variety. This offers an excellent incentive to the corporate sector to join the retail bandwagon. According to KSA-Consumer Outlook 2003 study the consumer spending grew by 12% and that consumer confidence is higher than any other Asia-Pacific market. The consumer spending patterns are changing with the consumers moving beyond basic necessities to acquire trappings of comfort, luxury and style. With higher disposable incomes and easier funding options, the 285 million strong Indian middleclasses are creating a retail boom like never before. The Global Retail Development Index 2004 has placed India on a higher Country Risk with a score of 62, which is due to increased living standards and continued economic growth. This improvement in living standards has fuelled the desire among shoppers to get the best in terms of product, price, service and satisfaction.
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Corporate sector companies are in a better position to satiate the customer expectations with shopping satisfaction, entertainment, quality products, polite salespersons, right product information and discounts.
Having developed strong processes and world-class infrastructure, the corporate sector companies can have the advantage over other retailers who are busy addressing such bottlenecks as supply chain and poor operational efficiency. In its Vision 2005 document, KSA-Technopak has identified this as an opportunity for the entrants with inherent high operational efficiencies.
growth. Unfortunately, the growth strategy used by all organized retail players of increasing their number of stores backfired when rentals dramatically shot up following the global economic melt down. Hence, the real estate is likely to be the single largest bottleneck preventing the rapid growth of the sector, especially large formats within the key metro towns of Chennai, Mumbai, Delhi and Kolkata.
Challenges of the Organized Retailers

Even though Indian retailing is hailed as a huge sector, in reality, it is not so rosy when compared to the retail scenario in developed and other developing countries. Indian retail is still in the infancy stage, with the retail revolution gaining momentum only in the late 1990s, and there are a number of challenge factors which need to be overcome and a number of opportunity factors which need to be leveraged upon, if organized retailing is to flourish the way it ideally should. The challenges facing the Indian organized retail sector are various and these are stopping the retail industry from reaching its full potential.
Profitability is seriously hampered and almost all major retailers are now struggling to maintain their bottom line. Average operating profit margin declined from 9.5% in 2007 to 7.9% in 2008. The worst part is that such a drastic growth in the number of stores was backed by significant leverage which is expected to further hurt these organized retailers liquidity and profitability levels. Trained manpower shortage is a challenge facing the organized retail sector in India. The organized retailers have difficultly in finding trained person and also have to pay more in order to retain them. This again brings down the profit levels. The organized retail sector is a totally untapped space that is likely to grow at a tremendous pace with potentials of high returns for the early entrants. However, new players and retailers looking for entry into the market need to have a thorough understanding of the factors and the dynamics required for survival and growth in the Indian retail space, keeping in mind the various loopholes in infrastructure, regulations
The biggest challenge facing the Indian organized retail sector is the lack of retail space. With real estate prices escalating due to increase in demand from the Indian organized retail sector, it is posing a challenge to its
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and other factors that are not exactly business friendly.
The Government of India has allowed 51% foreign direct investment in the India retail sector to one brand shops only. This has made the entry of global retail giants to organized retail sector in India. This is a challenge being faced by the Indian organized retail sector. But the global retail giants like Tesco, Wal-Mart, and Metro AG are entering the organized retail sector in India indirectly through franchisee agreement and cash and carry wholesale trading. Many Indian companies are also entering the Indian organized retail sector like Reliance Industries Limited, Pantaloons, and Bharti Telecoms. But they are facing stiff competition from these global retail giants. As a result discounting is becoming an accepted practice. This too brings down the profit of the Indian retailers. Since 2001, 49 global retailers entered 90 new markets. Indian retailers most preferred mode of expansion was to increase their number of outlets across metros. Outlets were built wherever real estate was available and not where they were actually required, which led to Clustering. Following credit crunch in 2008, several outlets were cast strapped and had to be closed down simply because they were operating in unfeasible locations. Retailing is still in its infancy in India. According to an estimate the unorganized retail sector has 97% presence whereas the organized accounts for merely
3%. Still the major constraint for the organized retail market in India is the competition from the unorganized sector. Traditional retailing has been deep rooted in India for the past few centuries and enjoys the benefits of low cost structure, lesser fixed costs, mostly owneroperated, therein resulting in less labour costs and little or no taxes to pay. Consumer familiarity with the traditional formats for generations is the greatest advantage to the unorganized sector. On the contrary, organized sector have big expenses like higher labor costs, social security to employees, bigger premises, and taxes to meet.
the nation, who works as middlemen between the manufacturer and consumer.
Price wars too have emerged in the organized retail industry where by Subhiksha has released advertisements of a price comparison between itself & the Kishore Biyani owned Future Groups Big Bazaar. The Future Group has approached the Advertising Standards Council of India alleging that the ads give incomplete information. Multiple clearance requirements and constraining regulations create unnecessary hassles for modern format players. For example, retailers need to deal with multiple agencies, e.g., several land and labour authorities at the state government level while setting up new stores in a process that takes anywhere between one month to a year. In addition, multiple license requirements and restrictive labour laws constrain ongoing operations. Hypermarkets typically need to get over 16 licenses for stocking groceries, e.g., liquor, and food products. Organized retailing is a 24X7 business. But, in India stringent labour rules and regulations have restricted this to a great extent. The sector is unable to employ staff on a contractual basis. This makes it difficult to manage 365 days a year operations.
India lacks a strong supply chain when compared to Europe or the USA. The existing supply chain has too many intermediaries. This implies that global retail chains will have to build a supply chain network from scratch. This might run foul with the existing supply chain operators. In addition to fragmented supply chain, the trucking and transportation system is antiquated. The concept of container trucks, automated warehousing is yet to take root in India. Attacks on the newly opened Reliance Retail outlets at Ranchi and Indore are surely not great signs for the upcoming and growing organized retail format in the country. For long there have been inhibitions to open up the retail sector for FDI but the Left has opposed it consistently saying that it will create unemployment for millions of people across
Special Problems of the Organized Farm Retailers
The farmers in the village area do have a low standard of living because of low literacy, low per capita income, social
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backwardness, low savings, etc. The farmer values old customs and tradition and they do not prefer changes. Farmers have diverse socioeconomic backwardness. This is different in different parts of the country. The infrastructure facilities like roads, warehouses, communication system, and financial facilities are inadequate to farmers. Therefore, physical distribution of agricultural inputs becomes costly due to inadequate infrastructure facilities.
The number of people below poverty line has not decreased in any appreciable manner. Thus underdeveloped people and consequently underdeveloped market by and large characterize the rural markets. Vast majorities of the farmers are tradition bound, fatalistic and believe in old customs, traditions, habits, taboos and practices. Nearly fifty per cent of the villages in the country do not have all weather roads. Physical communication of these villages is highly expensive. Even today most villages in the eastern parts of the country are inaccessible during the monsoon. Statistics also indicate that the rural areas account for hardly 2000 to 3500 mobile theatres, which is far less when compared to the number of villages. Indias 6,27,000 villages are spread over 3.2 million sq km; 700 million Indians may live in rural areas, finding them is not easy. However, given the poor state of roads, it is an even greater challenge to regularly reach products to the far-flung villages.
The number of languages and dialects vary widely from state to state, region to region and probably from district to district. Even though the number of recognized languages is only 16, the dialects are estimated to be around 850. Advertising in such a highly heterogeneous market, which is widely spread, is very expensive. The literacy rate is low in rural areas as compared to urban areas. This again leads to problem of communication for promotion purposes. Print medium becomes ineffective and to an extent irrelevant in rural areas since its reach is poor and so is the level of literacy. Even though about 33 -35% of gross domestic product is generated in the rural areas it is shared by 74% of the population. Hence the per capita incomes are low compared to the urban areas. For any branded product there are a multitude of local variants, which are cheaper, and, therefore, more desirable to villagers. There is a vast difference in the lifestyles of the people; the kind of choices of brands that an urban customer enjoys is different from the choices available to the rural customer.
inroads in the Indian retail sector, they can chart out a roadmap that would best work for them.
Right Positioning: The effectiveness of the mall developers communication of the offering to the target customers determines how well the mall gets positioned in their minds. Therefore, the message conveyed to the target customers must be effective enough in differentiating the malls offering from that of its competitors without even naming them. The message should also clearly convey to the target audience that the mall offers them exactly what they call the complete shopping-cumentertainment point that meets all their expectations. The mall developer can create awareness about the offering among the target customers in a number of ways. Various communication tools available to the mall developer for this purpose may include advertising, buzz marketing, celebrity endorsement, use of print media, press releases and viral marketing .Once the message is being conveyed through these channels, the mall developer must add a personal touch to his message by carrying out a door-to-door campaign in order to reinforce the message. Effective Visual Communication: Retailer has to give more emphasis on display visual merchandising, lighting, signages and specialized props. The visual communication strategy might be planned and also be brand positioned. Theme or lifestyle displays using stylized mannequins and props, which are based on a
Suggestions
Organized retail has a promising future with many avenues and prospects. However, the organised retailers, both global and local, need to acutely observe, analyze and formulate strategies before taking the final plunge headlong. Taking into consideration the success stories of other retail giants that have already made huge
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season or an event, are used to promote collections and have to change to keep touch with the trend. The merchandise presentation ought to be very creative and displays are often on non-standard fixtures and forms to generate interest and add on attitude to the merchandise.
premises in new constructions as well as other similar measures to enable easier access to land.
Strong Supply Chain: Critical components of supply chain planning applications can help manufacturers meet retailers service levels and maintain profit margins. Retailer has to develop innovative solution for managing the supply chain problems. Innovative solutions like performance management, frequent sales operation management, demand planning, inventory planning, production planning, lean systems and staff should help retailers to get advantage over competitors. Removal of Intermediaries: The organized retailers shall take steps to remove unwanted intermediaries which eat into the already stressed margins. To improve rural economy, Indian Government approved contract farming and leasing. According to KPMG, this will bring about technology transfer, increase capital inflow and assure market for crop production, besides eliminating intermediaries. Pepsico and ITCs E-chaupal are already benefiting from contract farming in Northern India. Deregulation of Land Market: There is a need to deregulate the land market, have easier zoning provisions, improve and standardize building specifications, introduce zoning for larger retail
Procurement of Skilled Manpower: The organized retailers are now realized that in difficult market situations, experienced and talented employees that have sound understanding of ground realities could give retailers a competitive advantage. Despite a downturn, need for skilled manpower still continues to be a major concern across the sector. Consider this, for every Rs. 200 Crore of sales, a retailer could directly employ at minimum wages, over a thousand people. If the share of organized retail reaches 10%, this would require 300000 new workers. Therefore, more institutes and professional organizations shall be established for retail education and training. Focus on Rural Market: It is believed that the next phase of growth for organized retail sector will come from rural areas that account for half of the $300 billion domestic retail market. Therefore, the retailers will have to focus on the previously untapped lower income strata by providing them access to credit facilities. Single Value-added Tax System: Since retailing is essentially a business of supplying commodities to locations far from production facilities, a differential tax system in different states is creating hindrance in the fast development of this industry. For organized retailing to truly take off, it is imperative to introduce a single valueadded tax system, with no
entry/exit taxes. This will allow retailers to optimize their sourcing, supply chain and other operations and thereby creating truly national retail chains. Moreover, state governments can set up single window clearance mechanisms and a nodal department to reduce the bother involved for modern format retailers.
Conclusion
The retail market in India offers an opportunity for a large player to build a large retail business. However, in the fierce competitive pressure, organized retailers must come to recognize the value of building their own stores as brands to reinforce their marketing positioning, to communicate quality as well as value for money. With the generous use of global and local experiences, organized retailers shall improve their bottom lines with efficient management of supply chain and logistics.
References
1. Aiyar.S .2003. The Unintended
consequences of FDI, The Times of India, 28th June.
2. 2003 Aggarwal, A. 2000. Current

Issues in Indian Retailing, European Retail Digest, No. 25, pp. 70-71.
3. Anand, M and Rejshekhar, M.

2001. The Retail Puzzle, Business World, 29 October, pp. 38-42.
4. Radhakrishnan,
K. 2003. Organized Retail: Forging Ahead, Praxis, Vol.4, No.1, pp.47-51.
5. Sharma, M.K. 2000. Some Issues

in Retail Management in India, Vision, Vol.4, No.1, pp.35-40.
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India: Towards a Knowledge Superpower?

Anurag Mathur (Dean) Bangalore School of Business, New Delhi India and China are the only countries in the world having a population of over one billion each. Until the 1980s, their economies were among the poorest in the world. India has been the largest democracy since 1947 but heart-rending sights of extreme poverty can be seen even in the f ourishing business capitals. There are no subways, very few highways which results in nightmarish tangle of traff c all the time. Both the countries operated under centralized planning and kept their economies closed to global markets. However, in the past two decades, the world is witnessing a strange miracle taking place in both the countries. In the early 1980s, f rst China and later, India, started opening their economies to foreign direct investment and began participating more and more in global trade. The world had never witnessed this rare phenomenon of two relatively poor countries that together consist of a third of the worlds population, simultaneously taking off on a steep ascent in their economies. During the past twenty years, China has been growing at a heady rate of over 9% a year and India has growing at over 6% per year. This miraculous and sustained growth of these two countries is being watched by the rest of the world with mixture of surprise and apprehension. At this rate, it is expected that, within the next two or three decades, India and China together would account for over half of the entire worlds output. This paper presents the several factors of the phenomenal development of the Indian economy and analyses the impact of continued rise in their prosperity on the global economy. Introduction
From the very dawn of history, whether it is for matters of the mind or material, India has always been a fertile land. The first references to astronomy are found in the Rig Veda which dates back to 2000 BC.1 Mathematics has its roots in the nearly 4,000 years old Vedic literature. Indians developed many important mathematical concepts, including the base-ten decimal system.2 Indias Panini is well-regarded as the founder of linguistics, and his Sanskrit grammar is still considered to be the most sophisticated of any language in the world.3 Even in manufacturing, India had an important position. According to the Yale historian, Paul Kennedy, India accounted for roughly 25 percent of global industrial output in the 1770s.4 Indias tangible and intangible assets had always attracted external worshippers and wa Today, Indias economic story is still impressive. The economy has been performing well, growing by an average nine percent in the last three years. Many high-tech industries have emerged and grown in India. These include information technology and communications, defence and space technology, pharmaceuticals and bio-technology. This rapid expansion of the Indian economy has resulted in gross domestic product (GDP) per capita increasing from US$1,378 in 1998 to US$2,777 in 2007 (in purchasing power parity [PPP] terms).5 Indian scholars have excelled in the areas of literature, physics, medicine, physiology, information technology, and bio-technology, among others. The nation has half-a-dozen Nobel Prize winners to its credit. Whilst one does not doubt Indias economic rise, can one also then conclude that India has the potential to become a knowledge superpower? I shall discuss the question of whether India is a knowledgebased economy, as that will allow us to ascertain if it can become a knowledge superpower. I shall examine the key knowledge-based sectors in India as well as the advantages India has in pushing forward its knowledge-based industries. I shall then compare India with other knowledge-based coun-
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tries. I shall also highlight the challenges facing India in this regard.
Def nition of a Knowledge-Based Economy

I think the first task of this paper is to define the term knowledgebased economy. What is a knowledge economy? It is basically an economy that creates, disseminates and uses knowledge to enhance its growth and development. A countrys success in the knowledgebased economy depends on the creation, acquisition, dissemination and application of knowledge. Knowledge creation depends on the intensity of research and development (R&D) conducted in a country, and the availability of human resources needed for R&D. Knowledge acquisition is reflected in intellectual content embedded in imports from other knowledgebased economies (or through multinational corporations [MNCs]). Linguistic skills will help to plug into the global knowledge network. Knowledge dissemination depends on the resources allocated to develop information infrastructure, basic information technology (IT) and linguistic skills to tap into the info-communication technology (ICT) network. Finally, knowledge application is reflected in an economys job market that demands and allows workers to apply knowledge extensively, and its ability to create new business models for generating, acquiring, diffusing and applying new ideas and processes. The basic difference between a traditional and knowledge-based economy is that the former depends on quantitative factors such as labour, raw materials, premises
and bulk transportation, among others, whereas the latter relies more on qualitative factors, namely, qualifications, R&D and good infrastructure. Resource-driven economies sometimes depend on a protectionist environment, whereas knowledge-based economies thrive in a friendly and open policy environment, and on innovation and qualified labour.
respectively.7 As a proportion of national GDP, the Indian technology sector revenue grew from 1.2 percent in FY1998 to an estimated 5.5 percent in FY2008. In 2007, there were more than 6,000 software exporting companies in the Software Technology Parks of India, spread over 21 cities, with a share of 73 percent of the exports. To reap the comparative advantages offered by the Indian software industry, about 250 of the Fortune 500 companies are now clients of Indian IT. As in December 2006, a total of 90 Indian companies have received the Software Engineering Institute, Capability Maturity Model certificate. This is higher than any other country in the world. India started by offering simple software solutions. It now is the favoured destination for high skilled, knowledge intensive activities. A majority of the Fortune 500 and Global 2000 corporations are sourcing IT-ITES from India. HCL and Wipro carry out outsourcing for innovation through MNCs like Boeing. IBM, Motorola, HewlettPackard, Cisco Systems and Google have set up R&D centres in Indian cities. General Electrics research centre in Bangalore is equal to its global research headquarters in New York. All the top 10 global fables design companies have operations in India. Fables designs are hardware devices implemented on semiconductor chip s. Having made an ineffaceable mark in the BPO business, India has now become an important Knowledge Process Outsourcing (KPO) destination. According to a recent report released by KPMG,8 India will continue to be the preferred location for the global KPO destination and the industry is projected to be worth between US$10 billion and US$17 billion by 2010. Howev39
Indias Key Knowledgebased Industries

The economic rise of India has seen Indian industries emerging as global players. I shall look at the development of several of the key knowledge-based industries in India.
Information and Communications Technology

The success story of Indias IT and IT-enabled industries (ITES) is well documented. Indias software industry grew at an average annual rate of approximately 50 percent between 1992-93 and 2000-01. The Indian IT-business process outsourcing (BPO) revenue aggregate is expected to grow by over 33 percent and reach US$64 billion by the end of FY2008. IT exports, (including hardware exports), are expected to cross US$40.8 billion in FY2008 as against US$31.9 billion in FY2007, a growth of 28 percent. The domestic IT market (including hardware) is estimated to reach 23.2 billion in FY2008 as against US$16.2 billion in FY2007, a growth of 43 percent. The direct employment in this sector is expected to reach nearly two million in FY2008, an increase of about 375,000 professionals over FY2007. The services exports, BPO exports and the domestic IT industries provide direct employment to 865,000, 704,000 and 427,000 professionals
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er, the same report reveals that the shortage of skilled workers, Rupee appreciation, and under resourced and inadequately empowered legal framework and compliance within KPO providers are costing the competitiveness in this sector.
Defence and Space Technology

Although India has been starved of imported nuclear technology for almost three decades now, it has developed a competitive advantage in thorium-led nuclear technology. It has the worlds second largest reserve of thorium just falling behind Australia. By producing the worlds first U233-fuelled prototype reactor, Kamini, India has not only entered into Stage Three of its Nuclear Power Programme, it could also become the largest supplier of radioactive thorium by 2011. Incidentally, Kamini, with 30 kilowatt capacity, is the only operating reactor in the world with U233 fuel.9 As the Indian Department of Atomic Energy progresses in the harnessing of fusion energy and in the development of thoriumbased Fast Breeder Reactors, it is believed that India may well develop the capabilities to be nuclear self-sufficient. This has made it the world leader in thorium technology. The technology that has been used to operate the Canadian reactor CIRUS and to develop the 900 Mega Watt Pressurized Heavy Water Reactors is Indian as well. India has come a long way in the development of nuclear technology. It began modestly with the commissioning of a Cirus 40 Mega Watt heavy-water-moderated research reactor from Canada in 1960.10 Now, India provides the services of its scientists for expert assignments to other countries through the auspices of the Inter-
national Atomic Energy Agency and through bilateral agreements for cooperation in the field of peaceful uses of atomic energy. This highlights Indias leading position in nuclear technology in the world.11 It also underlines Indias self-reliance as it has mastered the expertise covering the complete nuclear cycle from exploration and mining to power generation and waste management. In space technology, India too has developed advanced capabilities. Its seven communication satellites, the biggest civilian system in the Asia-Pacific region, now reach some of the remotest corners of the country, providing television coverage to 90 percent of the population. The system is also being used to extend remote healthcare services and education to the rural poor.12 For instance, it has already linked 69 hospitals in remote areas of India to 19 hospitals in Indias main cities. This allows a health worker in a rural location to transmit a patients medical information to a specialist in seconds and, as in many cases, a video consultation is sufficient for diagnosis. This reduces the need for the patient to travel long distances unless it is absolutely necessary. Indias space programme is a money-earner as the Indian Space Research Organisation (ISRO) sells infrared images from its remotesensing satellites to other countries, including the United States, where they are used for mapping.13 Although Indias initial few rocket launches ended tragically, its Polar Synchronous Launch Vehicles (PSLV) have been successful since September 1993. Three percent of the ISROs US$3.3 billion five-year budget is devoted to the planned moon mission. This features a reconfigured PSLV rocket which will lift the Chandrayan to 36,000 kilometres, after which the crafts own engines will take it to the moon.
The Chandrayan will create history by producing 3D maps of the moons surface at a resolution of between 5 and 10 metres.14 The Madras School of Economics estimates that the ISROs projects have increased Indias GDP by about three times the organisations budget. As India becomes a model for its space programme, which meets its societal demands for the needy in a cost effective manner, developing countries around the world seek the ISROs consultative assistance.
Pharmaceuticals
Today India is recognised as one of the leading global players in pharmaceuticals. It is internationally recognised as one of the lowest-cost-producers of drugs. India is the fourth largest producer of pharmaceutical in the world.15 The value of the pharmaceutical industrys output is reported to have grown more than ten-fold from Rs.50 billion in 1990 to Rs.650 billion in 2006-07.16 In 2005, there were 84 manufacturing units in India approved by the United States Food and Drug Administration (FDA) this was the largest number of FDA-approved manufacturing facilities in any country outside the United States. Indian companies are reported to be seeking more Abbreviated NEW Drug Approvals in the United States in specialised segments like anti-infectives, cardiovasculars and central nervous systems.17 In 2006-07, India exported drugs and pharmaceuticals worth US$1.3 billion. India exports pharmaceutical products to a large number of countries, including the United States, the United Kingdom, Germany, Russia and China. Several indicators suggest that this success is due to its excellent qualities. In 2005, the Indian pharmaceutical
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industry consisted of 300 large to moderate firms and approximately 5,000 smaller firms. Some of the key players in this field are Biocon, Dr.Reddys Laboratories, Ranbaxy and Piramal Pharmaceuticals. Leading pharmaceutical firms in India have been making higher allocations for R&D spending and trying to acquire patents abroad. In the case of Dr.Reddys Laboratories, R&D charges, as a proportion of sales revenue, increased from 0.6 percent in the three-year period ending in 1987 to 2.8 percent and 11 percent respectively in the three-year periods ending in 1994-95 and 2005-06. Ranbaxy made 698 patent filings in the first nine months of 2005, compared to 428 patent filings in the first nine months of 2004. Ranbaxy has set the target of becoming one of the top five generic drug makers in the world by 2012 and spends approximately seven percent of its global revenue on R&D. Multinational companies have started outsourcing clinical trials to India as the cost reduction involved is substantial. Given the need for skilled manpower in this sector, the Indian government has decided to set up six new National Institutes of Pharmaceutical Education and Research.18 The R&D expenditures at the aggregate levels has recorded a 40 percent increase from 2000-2006.19 But, in terms of innovation capabilities, even if firms develop new modules, the skills for advancing such modules to clinical trials and regulatory stages are limited. Hence, a major challenge for the Indian firms will be to focus on advanced research and to collaborate with developing markets.
knowledge-intensive sector in India. Within the biotechnology sector, the key opportunity segments are bio-pharmaceutical, bio-agriculture, bio-industry, bio-informatics and bio-services, namely, R&D, clinical trials and manufacturing on contract. According to the Journal of Commercial Biotechnology, the sector crossed the US$2 billion mark during 2006-2007. While this figure accounts for only roughly one percent share of the global biotechnology market, this sector has grown by over 35 percent annually over the last five years. It could reach to US$25 billion by 2015. As support for this sector, the Indian government increased the Department of Biotechnologys budget by four-fold from US$30 million to US$120 million between 1999 and 2005. Inspite of the increase in funds, fears have been expressed that the firms deal only with contract research, clinical trials and validation studies for MNCs and that adequate emphasis has not been given for the development of innovation skills. The Indian biotechnology sector today comprises over 325 companies.20 Many Indian biotechnology firms have achieved global reputation and have brought the cost of drugs and other life-saving medicines down significantly. For instance, Shantha Biotechnics of Hyderabad today supplies 40 percent of the United Nations Childrens Funds global Hepatitis B vaccine supplies.21 The biotechnology sector is set to provide the next wave of opportunities in India. In recognition of its huge potential, some analysts have compared the Indian biotechnology sector to a baby elephant which means that, when it matures, it will occupy much of Indias economic space.
Indias Ranking as a Knowledge-Based Economy

Looking at these industries, one can safely conclude that India has made significant progress in its knowledge-based sectors. But how does India compare with other knowledge-based economies such as Ireland and Israel, or emerging knowledge-based economies like China? I must confess that the data is rather limited for some variables but I shall try to present an overview based on available data. According to the World Banks Knowledge Economy Index (KEI)22 that takes into account the conduciveness of an economys environment for knowledge to be used effectively for economic development, India ranked 101st out of 140 countries in 2007.23 Ireland, Israel and China ranked 14th, 22nd and 75th respectively. The same source showed that, while China and other emerging economies have improved their position significantly, in terms of innovation, education and ICT, Indias ranking remained the same in 2007 when compared to the 1995 figures. I have some doubts on the reliability of this figure. But it is possible that India lags behind the other countries in terms of R&D and education. Indias position, in terms of the publication of technical journal articles, patent granted by the United States Patent and Trademark Office, gross tertiary enrolments, computer usage per thousand population, internet users per thousand people, and the number of telephone per thousand people, is still low when compared to other knowledge-based economies. According to the Switzerlandbased IMD World Competitiveness yearbook 2007,24 India is the 27th most-competitive economy
Biotechnology
Biotechnology is an emerging
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out of 55 countries in the survey based on economic performance, government efficiency, business efficiency and infrastructure. It also showed that R&D expenditure in India (as percentage of GDP) declined in recent years. In 1998, Indias R&D expenditure was 0.81 percent of its GDP but declined to 0.61 percent in 2005. Chinas R&D expenditure increased from 0.65 percent (US$6,656.52) in 1998 to 1.33 percent (US$36,910.23) of its GDP in 2005. The same source also reported that, in 2005, Singapore R&D expenditure was US$2,752.74 equivalent to 2.36 percent of the countrys GDP. Israels R&D expenditure was 4.53 percent (US$6,440.31) of its GDP in 2006. In 2005, Indias per capita R&D expenditure was US$4.41, whereas, Chinas and South Koreas per capita R&D expenditure were US$22.87 and US$1,537.57 respectively. The OECD Fact Book 2007 also painted a similar picture of Indias expenditure in R&D. However, in terms of availability of information technology skills, development and application of technology, the IMD World Competitiveness Center states that India ranks favourably vis--vis Israel and China, among others. The same source reports that science education in the Indian schools is being sufficiently emphasised when compared to Israel and China (See Table 1). In some areas, India is ahead of its peers. For instance, as mentioned earlier, in the pharmaceutical sector, India has the largest number of FDA-approved plants after the United States.
understandable, given that Indias liberalisation efforts, when compared to other knowledge-based economies, are a recent phenomenon. However, India has several key advantages which could work in its favour in the knowledgebased economy game. These are:a) Young population India enjoys the advantage of having a young population. In 2004, the proportion of population below 15 years of age was 32.5 percent in India, compared to 22 percent for China. It is estimated that, in 2020, an average person will only be 29 years old in India, compared to 37 years in China, 45 years in Western Europe, and 48 years in Japan. Therefore, it is argued, India possesses the potential to benefit from the demographic dividend many long years into the future. However, India will only be able to reap the benefits of its young populace if it is able to provide the education and skills needed to meet the demands of its high-technology industries. As will be discussed later, the education sector is a key challenge in Indias push to becoming a knowledge-based economy. b) Critical mass of English-speaking workers In 2001, Indias English speaking population was estimated to between 30 and 50 million, which is almost as large as the population of a medium-sized country.25 At present, it is estimated to beyond 70 million. Such linguistic skills are important to allow Indians to connect with the rest of the world and to benefit from the opportunities in the global market place. Singapore opted for English as the main language for two reasons. Firstly, it provided a level playing field for the different races to compete in. Secondly, it enabled the nation to plug directly into the science and
technology sector without going through a translation. India must use the English language for the same purpose. c) Large and fast growing domestic market Its relative domestic market size makes it one of the worlds largest. This is true regardless of the conversion factor one chooses to use. Using the new conversion factor, Indias GDP at PPP is estimated at US$3.19 trillion, making it the fifth largest economy in the world. At the nominal exchange rate (which means the value of a countrys currency in relation to other currencies without adjustment for the inflation rate), Indias GDP is projected be US$1.16 trillion in 2007-08. Indias per capita GDP at market prices (constant 1999-2000 prices) grew by at an average rate of 7.2 percent per annum during the last five years (2003-04 to 2007-08). At this rate, Indias average income would double in a decade. The growth rate of per capita consumption has also accelerated during the last five years to 5.1 percent as against the average growth rate of 2.6 percent in the 1990s.26 d) Large and impressive diaspora The Indian diaspora allows for invaluable knowledge linkages and networks globally. At the same time, the highly influential diaspora of Indian professionals and entrepreneurs have been instrumental in bringing high technology investments to Bangalore, Hyderabad and other Indian cities. The decision by the Indian government to allow for dual citizenship has provided further impetus to the diaspora to continue to stay rooted to India. India currently holds non-resident Indian (NRI) investments worth US$35 billion, with annual accretion of US$2-3 billion.27 Remittances form nearly three percent of Indias GDP and have almost doubled over the last
Indias Strategic Advantages

The available data does not rank India as impressively as some of the other knowledge-based economies in the world. This is perhaps
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five years. The World Bank estimates have placed India as the largest recipient of remittances in the world and have predicted that India would receive more than US$200 billion remittances over the next five years.28 e) Emerging financial sector In recent years, India has attained macroeconomic stability and has made significant strides in institutional developments, including having a well-functioning financial sector. Currently, the Indian financial sector is more efficient at capital allocation than many other Asian countries. Small and medium enterprises account for 45 percent of banks business loans in India, compared to 26 percent in China.29 India continues to attract foreign investments and presence in its banking sector due to its sheer potential alone. The total asset size of the Indian banking sector was US$270 billion in 2006 while total deposits amounted to US$220 billion. Revenues of the banking sector have grown at six percent (compound annual growth rate) in recent years to reach US$15 billion in 2006. This has resulted in commercial banks no longer simply catering to short- and medium-term financing requirements, but also joining national-level and state-level financial institutions to provide project financing.30 The deregulation of the banking industry has contributed to improved capital access as it has increased the presence of foreign banks in India. In accordance with the first phase of this deregulation, between March 2005 and March 2009, foreign banks may establish a presence by way of setting up a wholly-owned subsidiary (WOS) or conversion of existing branches into a WOS. This has prompted some of the worlds largest banks such as Citibank, ABN AMRO, HSBC, DBS and Standard Chartered Bank, among others, to have a significant presence in India.
Key Challenges
Whilst India enjoys significant advantages, it also faces several challenges which may impede or hinder it from becoming a knowledge superpower. I shall highlight the key challenges.
Education
Indias premier technical institutions, namely, the Indian Institutes of Technology (IITs) and the Indian Institutes of Management (IIM) have been the source of entrepreneurship in recent years. India has emerged as an important player in the world-wide ICT revolution on the basis of the substantial number of skilled professionals in software and hardware. Over the decades of planned development, India has built a fairly extensive system of higher education. This existing system is of varying quality. In March 2005, there were 343 institutes of higher education and 16,000 colleges. The total enrolment in higher education is estimated to be 9.3 million. However, Indias system of higher education suffers from several limitations.31 Firstly, the gross enrolment ratio in higher education is less than nine percent in India, compared to 15 percent in China and more than 20 percent in many developing countries such as Mexico, Malaysia, Thailand, Chile and Brazil. In the case of IT, enrolment is 40 to 50 percent more in developed countries.32 Secondly, the enrolment ratios vary across Indian states, with the southern and western states faring better than their eastern counterparts. Furthermore, the share of students enrolled in science was less than 20 percent in 2002-03 while the share of student enrolment in medicine and engineering/technology accounted for less than 12 percent of total student enrolment.
In the case of youth literacy, India lags substantially behind all the other BRIC (Brazil, Russia, India, and China) countries. Indias achievements are well below the average of all developing countries (See Table 2). In India, 93.4 percent of all elementary-school-age children (6-14 year olds) were enrolled in school in 2006. Enrolment, however, is only the first step. A child must complete eight years of basic schooling. However, based on the Planning Commission Report of 2006, the drop-out rate in primary schools for the country as a whole was around 31 percent in 2003-04 and it was much higher in many states. The picture is not very rosy for secondary education, with gross enrolment ratio in 2003-04 estimated to be only 39 percent. The problem in the education sector is further compounded the lack of proper teaching facilities and best-practices, especially in the rural areas. According to the Third International Mathematics and Science study, 9th and 11th grade students in India scored way below the international average.33 Some of the causes identified by education experts are a high teacher to pupil ratio, at 1:42 in some states and as high as 1:83 in others. There are also no standard teacher training processes in place, and accountability and benchmarking are almost absent. The outdated rote learning is also in practice, without sufficient conceptual understanding.34 Another challenge for the education sector is bridging the digital divide in the country. If India aspires to be a knowledge-based economy, it will have to ensure that most, if not all, of its people are equipped, prepared and ready to contribute to its development in this regard. At the moment, there is an urgent need to ensure affordable access to locally-relevant IT applications at a broad level. As it stands, less than
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two percent of the population in India owns a computer, only two percent of all schools have computers and about six percent of the total population is internet users.35 A key development in the Indian education sector in recent times is the emergence of private schools. The Planning Commission reported in 2006 that private aided and unaided schools accounted for 58 percent of the total number of secondary schools and 25 percent of the student population. The proportion of private schools has certainly gone up in recent years. However, these schools have largely benefitted the relatively betteroff sections of the Indian society. India needs to reduce this growing inequality in educational opportunity through state intervention and public investment in education. The Indian government has been taking steps to address the challenges of the education sector. The annual budget allocation for education has been increasing over the years. The government allocation for education grew from Rs.18,337 crore in FY2005-06 to Rs.28,674 crore in FY2007-08. This accounted for three percent and four percent of the budget in FY2005-06 and FY2007-08 respectively. Expenditure on education will increase by 20 percent over FY2007-08 to Rs.34,400 crore in FY2008-09, accounting for 4.5 percent of the budget.36 Also, in the Budget of 2008, the Indian Finance Minister announced the establishment of three Indian Institutes of Science Education and Research (IISERs) at Mohali, Pune and Kolkata while an IIT has started operations at Kanchipuram. At the same time, the government will to set up 16 central universities in each of the hitherto uncovered states; three IITs in Andhra Pradesh, Bihar and Rajasthan; two IISERs at Bhopal and Tiruva44
nanthapuram; and two Schools of Planning and Architecture at Bhopal and Vijayawada. It provided Rs.5 crore grant to Deccan College, Postgraduate and Research Institute, Pune while Rs.85 crore has been allocated for Innovation in Science Pursuit for Inspired Research which will include scholarships for young learners (10-17 years), scholarships for continuing science education (17-22 years) and opportunities for research careers (22-32 years). Also, Rs.100 crore has provided for establishing the National Knowledge Network.
Development.39 In sectors where 100 per cent foreign ownership is allowed under the automatic route, NRI Overseas Corporate Bodies (OCBs) have to get the Foreign Investment Promotion Boards permission to purchase even one share in an Indian company. And it takes a minimum of four to five weeks to get the approval of the Reserve Bank of India (RBI). The whole process for approval for a normal case for NRI OCBs can take between three to four months. In the interim period, the market conditions could change. It is estimated that investors setting up shop in India require up to 70 different approvals. The World Bank estimates that there are 47 national laws and 157 state regulations governing employment in India.40
Over-regulated and Cumbersome Bureaucracy

India has more than 17 million state and federal government employees. About 20,000-odd federal officers control the collection and disbursement of over US$71 billion federal revenue every year.37 Transparency International, a global watchdog body on corruption, ranked India 72nd out of the 179 countries in its corruption perception index in 2007, One recent study by the Center for Media Studies, New Delhi, on corruption in urban services revealed that nearly half of those who avail the services of the most frequentlyvisited public departments of the government in the country have had first hand experience of greasing palms at least once.38 At the same time, the Inspector Regime or Licence Raj has its inherent problems and, unfortunately, India has not done away with the old structures. A World Bank report ranks India 120th out of 178 countries in ease of doing business in 2006. The time to obtain a business licence in India ranges from 35 days in the financial hub, Mumbai, to 522 days in the eastern city of Ranchi. In contrast, a start-up takes five days in Singapore, and 17 days in the countries of the Organisation for Economic Co-operation and
Infrastructure ment
Develop-
This is an often-spoken subject in many forums. To develop a knowledge-based economy, the role of ICT, education and scientific infrastructure are necessary. However, equally critical is the need for supporting physical infrastructure such as railways, roads, ports, telecommunications and energy. A good infrastructure does not only enhance an economys productivity, it is also a crucial determinant in attracting investments into the country. India needs to develop of its infrastructure. It remains one of the lowest per capita energy consuming countries, only ahead of the African countries. Only half of the total households have access to electricity. The IMD World Competitiveness Online database shows that, based on survey data, India graded poorly in terms of the distribution infrastructure of goods and services, the maintenance and develop-
Wisdom Voyage
ment of infrastructure and energy infrastructure, among others (See Table 1). On education, scientific and technological infrastructure, India needs improvement in terms of R&D expenditure, enforcement of intellectual property rights, the number of computer and Internet users, and knowledge transfer between universities and companies, inter alia.
strategies in addressing the concern. The first is to increase the degree of appropriability of the return to knowledge by issuing patents and copyright protection. The second strategy for dealing with the appropriability problem entails direct government support. These two sets of issues are highly linked with an economys basic, scientific and information technology infrastructure. Cross-border cooperation in R&D is another way to enhance a countrys scientific research. Countries in consideration can share their expertise based on comparative advantages. India has such an agreement with Israel, known as India-Israel Cooperation in Science and Technology. It could explore more of such collaborations, especially with countries which have made great strides in knowledgebased industries. In such instances, the government needs to take the lead.
aspiring to be knowledge-based economies must ensure a stable political and economic environment so that foreign direct investment and foreign expertise come in with their capital and other intangible assets. At the same time, local companies and talents will find it conducive to apply their knowledge and flourish in India. In conclusion, India has progressed well since it initiated its liberalisation drive in the early 1990s. It has emerged to become an important global economic power and it will continue to witness good growth. Its key knowledge-based industries have also moved out of its borders to compete and collaborate with some of the best around the world. However, I would add that India faces several key challenges. These are, by no means, small but, at the same time, they are not insurmountable. They can be overcome but this would require a direct and more proactive approach from the Indian government and the large Indian conglomerates.
Role of Government in R&D

The state has an important role in transforming the economy from a traditional to a knowledge-based one, as the private sector may not always invest in areas like education, infrastructure and R&D, if there a mismatch between the firms revenue and cost. In this context, Nobel Laureate Economist Joseph Stiglitzs view is worth mentioning. Citing knowledge as a public good, Stiglitz expressed the view that the state must play some role in the provision of such goods.41 Otherwise they will be undersupplied. To him, governments have pursued two different
Conclusion
The growth of a knowledge-economy is highly dependant on a robust policy environment. Countries
Table 1: Comparisons: Israel, India and China in the K-economy

Israel Education University education meets the needs of a competitive economy (score 0-10), 2007 data Knowledge transfer between universities and companies (score 0-10), 2007 data Scientific Infrastructure Total Expenditure on R&D (% of GDP), 2005 data Total Expenditure on R&D per capita (US$ per capita), 2005 data Basic Research (score 0-10), 2007 data Science in school sufficiently emphasised (score 0-10), 2007 data Youth interest in science (score 0-10), 2007 data No. of patents granted to residents , 2004 data 4.53 905.81 7.08 5.33 6.10 N.A 0.61 4.41 5.30 6.63 6.73 695 1.41 28.08 6.56 5.98 5.94 11798 7.33 8.62 6.07 4.70 4.98 3.98 India China
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Israel No of patents securing abroad, 2005 data Intellectual property rights are adequately enforced (score 0-10), 2007 data Technological Infrastructure Communication technology meets business requirements, 2007 data No. of computers per 1,000 people, 2006 data No. of Internet users per 1,000 people, 2006 data Information technology skills (score 0-10), 2007 data Technological cooperation between companies, (score 0-10), 2007 data Development and application of technology, (score 0-10), 2007 data Funding for technological development, (score 0-10), 2007 data High-tech exports (% of manufactured exports), 2004 data Basic Infrastructure The distribution infrastructure of goods and services (score 0-10), 2007 data Maintenance and development of infrastructure (score 0-10), 2007 data Quality of air transportation Energy infrastructure (score 0-10), 2007 data Energy intensity (Commercial energy consumed for each dollar of GDP in kilojoules) Productivity & Efficiency Overall productivity, GDP per person employed, US$, 2006 data Productivity in services, GDP per person employed in services, 2006 data Productivity of companies is sufficiently supported by global strategies, (score 0-10), 2007 data Source: IMD World Competitiveness Yearbook, various years 73108.87 71105.44 6.15 6.65 5.59 6.67 6.05 7,094.46 9.08 606.72 637.67 9.28 7.79 8.05 7.74 18.82 1633 6.79
India 710 5.29
China 716 5.40
7.63 19.18 61.70 8.75 6.03 6.57 6.37 4.88 4.77 3.37 6.83 2.92 22,144.92
7.67 56.04 103.59 5.81 5.08 6.44 4.12 29.81 6.58 6.17 7.38 5.48 27,314.09
9462.01 20257.29 5.73
12772.32 14795.88 5.38
Key References
1. Basu. K. and Annemie Maertens,
The pattern and causes of economic growth in India Oxford Review of Economic Policy, Volume 23, Number 2, 2007, pp.143 167. Dahlman, C. and Utz, A. (2005); India and the Knowledge Economy; Leveraging Strengths and Opportunities: Overview; Finance and Private Sector Development Unit of the World Banks
3.
4. 5. 6.
2.
South Asia Region and The World Bank Institute, Washington, D.C. http://info.worldbank.org/etools/ docs/library/145261/India_KE_ Overview.pdf (Accessed on 2 April 2008). India as Knowledge Superpower, Planning Commission of India 2001. Outsourcing to India: Back Office to the World, The Economist, 5 May 2001. Kingdon Gandhi Geeta (2007). The progress of school education
7.
8.
in India, Oxford Review of Policy, Volume 23, Number 2, 2007, pp.168-195. Hashim, S.R., (2008), State of Higher Education in India, in R. Radhakrishna (Ed), India Development Report 2008, Oxford University Press, New Delhi. Kapur Dives and Pratap Bhanu Mehta (2004), Indian Higher Education Reform: From HalfBaked Socialism to Half-Baked Capitalism CID Working Paper No. 108, September 2004.
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A Move to ERP (Enterprise Resource Planning)

Pooja Rawat (Lecturer) Global School of Business This article highlights the move from a traditional approach to Enterprise Resource Planning (ERP). ERP is def ned as a Single Database which means integration of business covering logistics, human resource, and accounting. ERP is an integrated system that allows information to enter at a single point in the process and then update the information in the database which is accessible by other departments in the system. Once a data is entered into the system it is processed and stored immediately at a given point of time. ERP was in high demand from the MNCs, Private Sectors and Public Sectors. These systems are designed and developed by ERP Vendors which includes not only ERP functionalities but also Customer Relationship Management (CRM), Supply Chain Management (SCM) and business intelligence systems (BIS). ERP can be developed internally but due to some diff culty most of the vendors prefer to adopt product from ERP Vendors. Vendors offer their products in many modules which can be used alone or in combination to meet the organizations need. Consultants also play a vital role in ERP implementation; they are good at implementing all the phases of ERP. It has also been studied that a well selected ERP system which was successfully implemented and successfully working will pays in a relatively short period between 10 to 30 months approximately. The cost of ERP ranges from millions of dollar. It has been estimated that the best ERP packages custom tailored to a companys needs meets only 80% of the companys functional requirements. We consider ERP as a change management program as it establishes business process reengineering which brings radical changes in the organization. Thus ERP Systems promise benef ts that range from increased eff ciency to transformation of quality, productivity and prof tability. Traditional Approach
In the traditional approach, the organizations were divided into number of different units based on the functions they perform like we have a production department, purchasing department and finance department. All these departments have their own goals and objectives and they work in isolation. So the information that is created by the individual department is available only to the top management and not to the other departments. The result of this approach is that no department has the information what the other department is doing. Due to this reason sometimes there is a conflict between the departments as sales and marketing people may want more product to satisfy the needs of the customer while the production people may want to limit the product variety due to cut down the cost of production.
Modern Approach (ERP)

Whereas in the modern approach i.e. ERP approach the entire organization is considered as one system. All the employees from the different departments get access to the integrated data which in turn is used by the company for decision making and analysis. It is
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basically a software package that integrates the whole enterprise, covering all the internal and external processes. Since all the transactions are simultaneous the data in the database is up-to-date and readily available at any given time.
Evolution of ERP
In the mid 1970s Material requirement planning (MRP) became the fundamental concept of production management and control. At this stage BOM (Bills of material) is the mainstream which is the list of raw materials and sub assemblies needed to manufacture an end item. After this there was the emergence of MRP II which is the Manufacturing Resource Planning. MRP (Manufacturing Requirements Planning) II is the successor of MRP and is concerned with the coordination of the entire manufacturing production, including finance, materials, human relations, business planning, sales and operations planning, master production scheduling, capacity requirements planning and capacity planning.
increased from the last few years as they are showing tremendous improvement in the business. ERP is important to a company because it improves the way a company takes customer order and processes it into an invoice. ERP does not take the up front selling process rather it takes the customer order and provide a roadmap for automating the steps along the path to fulfill the customer order. When one department finishes the order it is automatically goes to the next department via the ERP system. To track the status of the order, only one needs to do is to log on to the ERP system.
for the organization. Thus, the company should do the preevaluation screening for all the packages. All packages are not equal; each has its own strengths and weaknesses. So the preevaluation screening should eliminate those packages that are not fit for the companys business processes.
The package should have functional fit with the organizations business practices. The package should be flexible to meet the changing needs of the organization. There should be high degree of integration among the components of the ERP system The implementation process should be quick and fast. The package customizable. should be
Benef ts of ERP
ERP affects almost all the organizations irrespective of their size, industry segment and nature of business. ERP provides business intelligence tools like decision support systems, executive information systems. ERP integrates all the business processes thereby improving customer service and the corporate image. It reduces the cycle time. Increased flexibility. Improved performance. supplier
Vendor should be able to provide regular updates.
Key persons involved in ERP implementation
ERP
ERP is the evolution of Manufacturing Requirements Planning (MRP) II. ERP uses multimodule application software for improving the performance of the internal business processes. It also tends to integrate with other system tools like Customer Relationship Management and Supply Chain Management.
(I) Vendors
Vendors are the people who developed the ERP packages. They are the people who use the innovative ideas to develop a package and invest huge amounts of time in research and development.
Better customer satisfaction.
ERP Selection Criteria

ERP package comes in all shapes and sizes. Hence, it is a good practice to specify the selection criteria as there are hundreds of ERP vendors all claiming to provide the solution that is ideal
Role of the vendors
Vendors are responsible for fixing any problems that may be encountered during implementation.
Why is ERP important for a company?

The need for ERP solutions has
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They provide initial training to the companys key users. The objective of the vendor training is to show how the system works not how it should be implemented.
(III) Employees
These are the people who will use the ERP software once it is implemented. With the implementation of the ERP system the job profiles will change, job responsibilities will go drastic transformation. Hence the organizations faced the employee resistance. Employees fear the loss of job as the new system will automate all the tasks. There is also fear of not understanding the new system, for this company should give thorough training programs that should give employees knowledge and confidence of using the new system.
due to company from its customers
Accounts payable: Payments made to suppliers and distributors.
(II) Consultants
Consultants are professionals who implement the ERP software developed by vendors. They use different techniques and methodologies for implementation and deal with the problems that crop during the implementation process. It has also been studied that a well selected ERP system which was successfully implemented and successfully working will pays in a relatively short period between 10 to 30 months approximately. It was also seen that the most expensive part of the ERP is the consultant charges i.e. it is 1.5 to 3 times of every rupee invested in the ERP software.
Steps of ERP implementation

1. Pre-evaluation
screening: There are hundreds of ERP vendors offering hundreds of ERP software. So it is better to limit the number of packages into less than 5. Pre-evaluation screening should eliminate those packages that are not suitable for the companys business processes. Evaluation: The different packages are evaluated in this phase as the package which you will select will decide the success or failure of the project. This is the most important phase of ERP implementation because this phase is do it right the first time. Once the package is selected and implementation starts it is not easy to switch over to the other package as it involves huge amount of investment.
Modules of ERP HR Module:

HR module streamlines the human resources. It maintains a complete employee database including name, contact information, salary break up, performance evaluation of all employees.
2. Package
Role of consultant
Consultants are responsible for administrating each and every phase of the implementation. Consultants should add value to the project by bringing the know-how about the package which is not included in the documentation. This knowhow comes from their practical experience as they have worked on many projects and have seen or done many mistakes, so they can avoid the phenomenon of re-inventing the wheel. Consultants should give sufficient amount of training to the people, so that the knowledge should stay in the organization once they will leave.
Payroll: Payroll is the sum of financial records of salaries, wages and bonuses. HR administration: It administrates the personnel management process like recruitment, training, vacation etc.
3. Project planning phase: In

this phase the details about how to go for implementation are decided. The project plan is developed. Roles and responsibilities are identified. Work is assigned to the team members and task allocation is done. It is in this phase decided when to begin and end the project.
Financial Module
Financial module gathers financial data from different financial departments, and generates financial reports. General Ledger: Ledger contains all of the financial accounts of a business. Accounts receivable: Payments
4. Gap Analysis: This stage helps

the company to identify any gaps that has to be bridged. In this stage the company prepares a complete model in
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which they illustrate where they are now and where they want to be headed.
5. Reengineering: BPR brings

dramatic improvements in the companys business processes. Reengineering is done so that the cost is reduced, service is improved and the customer gets higher value at a higher speed.
given the training on how to use the system. Jobs and responsibilities are assigned to the employees who are going to use the system.
3. Inadequate training: Lack of

user training and education will yield to implementation failure. Every employee who uses the ERP system will be given training on how to use the system.
11. Post implementation: This

is the most crucial stage of ERP implementation as the ERP vendors and consultants leave the company once the implementation is over but the training was given to the employees so that they can handle the problem which might crop up.
4. Poor
6. Customization: Customization
means modification of packaged software to meet individual needs.
package Selection: Selecting an ERP package from hundreds of vendors is the very difficult task. It should be do it at the first time since it involves a huge amount of initial investment and switching over is a heavy loss to the company.
7. Implementation
team training: In this phase the implementation team is given the training on how to implement the software. The training is given by the Consultants so that the company will become self sufficient in running the system and can handle various situations that may crop once the consultant will leave.
Challenges to successful ERP implementation

1. Resistance
to change: Implementation of ERP is a big change in itself and it is human nature to resist change. Implementation requires the team work, one person cannot alone do the implementation, and thus the cooperation of everyone is an absolute necessity. So, if the employees are not convinced about the importance of ERP, they will not be cooperative which results in failure of ERP. resources: Resource allocation is the most important in ERP implementation like money, people, software, hardware and so on.
Conclusion: Thus the ERP systems act as a single entity. The enterprise view is different from the traditional view where the organizations are divided into different units based on the functions they perform. The American Market Research (AMR) studies that the ERP industry is expected to grow at an annual rate of 40 percent in the near future. SAP is holding nearly 50 percent of the market in India.
8. Testing: ERP testing is a

procedure that usually occurs before a company fully implements ERP software.
References:
Jaiswal M., Vanapalli G., 2005, Enterprise Resource Planning, Macmillan Publishers India Ltd. Leon A., 2008, Enterprise Resource Planning, 2nd Edition, Tata McGraw Hill
9. Going live: This is the Going

live stage which means that the software is available to all the users.
2. Inadequate
10. End user training: In this

phase the end user will be
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Organizational Climate in Small Scale Industries: A Demographic Empirical Study in Delhi

Rajesh S Pyngavil & Dr M L Gupta Key Words: Organizational Climate, Small Scale Industries, Human Resources, Clusters, Demographic Factors Organizational climate is an indicator of whether those beliefs and expectations are being fulf lled. Basically organizational climate ref ects persons perception of the organization to which he belongs. It is a set of characteristics and factors that are perceived by the employees about their organizations which serve as a major force in inf uencing their behavior. These factors may include job description, organizational style, challenges and innovations, organizational values and culture The reserach paper gives a broad outline about the Organizational Climate prevailing in the Small Scale Industries in East Delhi. It discusses in brief the basic Organizational Climate in Small Scale Industries. A primary research was conducted in the region of East Delhi. The survey was carried out amongst employees of Small Scale Industries of different age groups, salary and experience. The survey results show that there is no signif cant impact of Demographic factors ( like age group, salary and experiense) on the Organizational Climate in Small Scale Industries in Delhi. The research also show that there is no signif cant difference between the Organizational Climate according to the clusters under study. The survey results that there is no signif cant impact of Demographic factors (age group, salary and experience) on the Organizational Climate in SSIs. The survey also reveals that there is no signif cant difference between Organizational Climate according to Cluster of SSI under study (Electrical based SSI, Plastic Based SSI and Metal Based SSI). Introduction
An organization, whether formal or in formal, large or small is composed of people human resource who come from different walk of life and who are different from one another in their psychological make-up. Human resource consists of the total knowledge, skills, creative abilities, talents and aptitudes of an organizations satisfied workforce, as well as the values and attitudes and beliefs of the individuals involved in it. The performance of human being and their behaviors when engaged on a particular job is influenced by
intangible psychological and social factors, such as family breeding, education, personal likes and dislikes, emotions, job conditions, the welfare facilities and privileges available to them while at work, recognition of their work., the wages or salaries they receive and above all employee satisfactions. The quantity and quality of human resources are modified by such environmental factors as education, training and development with the help of acquired knowledge and talents, a human being is capable of producing new ideas, develop-
ing and improving capital goods and modifying the available physical and financial resource in order to achieve greater productivity, satisfaction and the goals set by an organization. Capital national resources forging aid and international aid and play important than an efficient pool of well educated, well trained and highly developed personal through whose creative efforts the goals of an organization may be achieved. In this fact lies the importance of human resource. Organizational climate is an indicator of whether those beliefs and
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expectations are being fulfilled. Basically organizational climate reflects persons perception of the organization to which he belongs. It is a set of characteristics and factors that are perceived by the employees about their organizations which serve as a major force in influencing their behavior. These factors may include job description, organizational style, challenges and innovations, organizational values and culture and so on. Small scale industry is a term which applies to the small entrepreneurs who are engaged in manufacture and production on a micro scale. It mainly refers to agrobased rural industry which doesnt require huge capital influx and large infrastructure. These small scale industries also include the indigenous cottage industry and the handicrafts industry. The development of small scale industries is very important for a country like India which has mainly rural economy. These small scale industries which are mainly agrobased in nature would provide job for millions of Indians and would contribute largely to the overall growth of the Indian economy .The small scale industrial sector continues to remain an integral part of Indian economy with significant contribution to GDP, industrial production and employment generation in India. Small Scale Industries may sound small but actually plays a very important part in the overall growth of an economy. Small Scale Industries can be characterized by the unique feature of labor intensiveness. The total number of people employed in this industry has been calculated to be near about one crore and ninety lakhs in India, the main proponents of Small scale industries.
Small Scale Industries In India

Since the time of independence, the small-scale sector in India has been a major contributor to countrys Gross Domestic Product (GDP). This traditional sector in India is considered to have huge growth prospect with its wide range of products. With 40 percent share in total industrial output and 35 percent share in exports, the smallscale industrial sector in India is acting as Engine of Growth in the new millennium. The definition for small-scale industrial undertakings has changed over time. Initially they were classified into two categories- those using power with less than 50 employees and those not using power with the employee strength being more than 50 but less than 100. However the capital resources invested on plant and machinery buildings have been the primary criteria to differentiate the smallscale industries from the large and medium scale industries. An industrial unit can be categorized as a small- scale unit if it fulfils the capital investment limit fixed by the Government of India for the small-scale sector. As per the latest definition which is effective since December 21, 1999, for any industrial unit to be regarded as Small Scale Industrial unit the following condition is to be satisfied: Investment in fixed assets like plants and equipments either held on ownership terms on lease or on hire purchase should not be more than Rs 10 million. The traditional small-scale industries clearly differ from their modern counterparts in many respects. The traditional units are highly
labor consuming with their ageold machineries and conventional techniques of production resulting in poor productivity rate whereas the modern small-scale units are much more productive with less manpower and more sophisticated equipments. Khadi and handloom, sericulture, handicrafts, village industries, coir, Bell metal are some of the traditional smallscale industries in India. The modern small industries offer a wide range of products starting from simple items like hosiery products, garments, leather products, fishing hook etc to more sophisticated items like television sets, electronics control system, various engineering products especially as ancillaries to large industrial undertakings. Nowadays Indian small-scale industries (SSIs) are mostly modern small-scale industries. Modernization has widened the list of products offered by this industry. The items manufactured in modern Small-scale service & Business enterprises in India now include rubber products, plastic products, chemical products, glass and ceramics, mechanical engineering items, hardware, electrical items, transport equipment, electronic components and equipments, automobile parts, bicycle parts, instruments, sports goods, stationery items and clocks and watches. Since independence the Government of India has nurtured this sector with special care with the following aims: To develop this sector as a major source of employment To encourage decentralized industrial expansion To ensure equitable distribution of income. To mobilize capital investment and entrepreneurship skills Advantages Associated With
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Small Scale Industries This industry is especially specialized in the production of consumer commodities. Small scale industries can be characterized with the special feature of adopting the labor intensive approach for commodity production. As these industries lack capital, so they utilize the labor power for the production of goods. The main advantage of such a process lies in the absorption of the surplus amount of labor in the economy who were not being absorbed by the large and capital intensive industries. This, in turn, helps the system in scaling down the extent of unemployment as well as poverty. It has been empirically proved all over the world that Small Scale Industries are adapt in distributing national income in more efficient and equitable manner among the various participants in the process of good production than their medium or larger counterparts. Small Scale Industries help the economy in promoting balanced development of industries across all the regions of the economy. This industry helps the various sections of the society to hone their skills required for entrepreneurship. Small Scale Industries act as an essential medium for the efficient utilization of the skills as well as resources available locally.
employees mental health. Various factors with the individual and the organization determine the nature and degree of ones perception. These factors are organizational structure, leadership styles, performance standards, challenges and innovation and basic philosophy of the organization. The findings suggest that by improving emotional quotient and organizational climate enhances the mental health of employees to attain overall organizational effectiveness. Lahiri, Shikha and Saxena, Manjul (2006) conducted a study to develop a special instrument for studying the organizational climate of polytechnics/engineering colleges found out that there is high positive correlation (0.92) between leadership and overall climate. They also found a high correlation (0.96) between planning culture of the organization, work commitment and the over all climate. Another significant finding was work environment and leadership (0.85) and planning culture and work commitment (0.88) exhibit high positive correlation. Gupta, Smita and Agarwal, Manisha (2006) in their research study to examine the relationship between the organizations performance appraisal system and organizational commitment found out that to increase the organizational commitment of the members of an organization, enhance the effectiveness of the performance appraisal system. But the study also reveled that demographic variables (such as duration of service, salary, number of promotions, and age) has not significantly predicted organizational commitment. Srimannarayana M (2007) conducted a research study in a Dubai Bank with a sample size of 212 employees revealed that good (per-
ception) HRD climate (often call as organizational climate) is associated with age and position of the employees. Kundu K (2007) made an effort in his article to with an aim develop a conceptual framework of organizational climate. He revived significant research works in this area by eminent researchers. All the earlier studies on Organizational climate can be broadly classified under three principal approaches MMOAA (Multiple measurement-organizational attribute approach), PMOAA (Perceptual measurement-organizational attribute approach and PMIAA (Perceptual measurement-individual attribute approach). The first approach essentially emphasize on organizational model, taxonomy, context, and structure. The second approach, PMOAA considers OC as a set of attributes and delves into the question how the organization deals with its members perceptions. The third and the last approach (PMIAA) basically enquire into the individual perceptions on the organizational environment. The dimensions for Organizational Climate have been evolved from various researches under the three approaches. Basically the Climate can be divided into two parts: i) Organizational Climate - from organizational viewpoint and ii) Psychological Climate- from individual viewpoint. Finally the authored stated the concept of Collective Climate which share individual perceptions of work environment and also considers the influences like technology, demographics, etc. The strategic context of Collective Climate is found to be one of the most effective models for diagnosing Organizational Climate. Dangwal R C, et.al (2007) conducted a comparative study to find out various factors of organizational
Literature Review
Singh Sandeep, Punia B K and Behmani, Rakesh K (2006) did an inter-correlation analysis to find out the interrelationship between organizational health and
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climate that affect managerial effectiveness and job satisfaction in two multinational organizations in pharmaceutical sector. The findings of the study stated that enhanced and positive relationship of job satisfaction and managerial effectiveness with those factors compare to organizational climate and indicates that job satisfaction and managerial effectiveness is increased with demographic factors such as age, experience and salary. The study also found positive relationship between organizational climate and job satisfaction (0.702) and organizational climate and managerial effectiveness (0.611). Srivastav K Avinash (2007) made an attempt to study the relationship of achievement climate with role stress and coping strategy variables in selected departments of two large multi unit, multi location telecommunication manufacturing industries in the public and private sector with a total sample size of 453 respondents. The research indicated that individual and organizational resistance to change is stronger in the public sector organization. The study further stated that individuals with strong achievement needs react positively when they are responsible of challenging but achievable goals and when their innovative entrepreneurial behaviors are rightly rewarded. Thus individual need for achievement and organizational climate are significant determinants of individual performance in an organization. Vijayabanu C and Pillai Deepa (2009) attempted to identify certain fact ors that help creating good organizational climate. Their research objective was to develop a multilevel and multi dimensional model of improving organizational climate. They took a total of forty three sub variables based on five important climate variables were taken into consideration. The study
54
was conducted among a sample of 12 employees in an organization in Thanjavoor district of Tamil Nadu. Samples were collected from both executives and non executives. The major five important variables are leadership, empowerment, environment, performance and relationship. The study inferred that the factors like supportive and considerate leaders, confidence on their leaders, prompt information delivery by leaders, leaders knowledge about difficulties of the subordinates and leaders intention to maintain good relationship with subordinates facilities organizational effectiveness. So the leader factor forms the most important dimension of the organization climate and accounts for the greater percentage of variability. Hence more effort has to be taken to improve leadership for creating a conducive organizational climate. Srivastav, A. K. (2009) investigated the nature of organisational climate was by measuring six climate motives on 453 executives in a large Indian public sector industry using motivational analysis of organisational climate. The sample was partitioned into groups representing lower, middle, and higher age; junior, middle, and senior management levels; low, middle, and high qualification levels; and R&D, quality, production, and miscellaneous functions. Rank ordering the means of climate motives (for the total sample and in each partitioned group) revealed that Dependency was the dominant climate motive for the company as a whole and across all the groups. The backup climate was Affiliation for the company as a whole and for seven of the examined groups; and it was Control for the remaining six groups. Comparison with t-test on means were performed for each pair of groups under each type of grouping to reveal significant differences in the perception of climate across the
groups formed within the organisation. Demonstrating the heterogeneous nature of organisational climate, the study helps provide a better appreciation of differences in employee behaviour across the company. The results lead to formulating a contingency model to develop and manage employees for higher organisational effectiveness. Nirupama and Rana S (2010) conducted a study on 200 managers for assessing the relationship between management style and organizational climate in public sector organization. Two units were for the purpose of the study. The study reported that there is a significant correlation between management style and organizational climate on various dimensions. The various dimensions are of management style got studied are rescuing, normative, perspective, problem solving, task obsessive, bohemian, conformation, aggressive, resilient and sulking. The various dimensions of organizational climate such as results, rewards and interpersonal relations, organizational process, clarity of roles and altruistic behavior. Findings of the study stated that rescuing and prescriptive dimensions of management style were negatively related to results, rewards and interpersonal relations and organizational climate. Findings suggest that managers with rescuer tendencies develop proper rules and regulations are less concerned with results, rewards and interpersonal relations and procedures. Kathirvel N (2010) conducted a research study with special reference to engineering industries in Comibatore, Tamil Nadu to study the organizational climate using seven dimensions: environment, team work, management effectiveness, involvement, reward and recognition, competency and commitment. The study revealed that
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organizational climate may affect quality of service and employees commitment and involvement towards the organization. Biswas S (2010) made an attempt to study the relationship between psychological climate and turnover intentions and its impact on organizational effectiveness with respect to manufacturing and service sector organizations. The sample consists of 357 participants which comprises of senior level, middle level and junior level executives. The results established that psychological climate comprised of six factors, namely, supportive management, role clarity, contribution, recognition, self expression and challenge is statistically significant predictor of organizational effectiveness and that job satisfaction and job involvement are important mediators in transmitting their influence of the predictor variables to the criterion variables.
Climate in SSIs under study. H02: There is no significant difference between Organizational Climate according to Clustera of SSI under study.
Reserach Methodolgy And Design

The present study falls in decriptive design of reserach. And attempt to understand the impact of demographic features on organnizational climate. The reserach design and methodology is discussed below. Sample Size To reach the objectives of the study, data from 60 employees working with in Electrical based SSIs, Plastic based SSIs and Metal based SSIs in Delhi were collected with the help of a standardized questionnaire. The sampling adopted in this study is proportionate random sampling, where each respondent is chosen randomly and entirely by chance, such that each individual has the same probability of being chosen for the research purpose. Tool for Data Collection Both primary and secondary sources were used for the study. Various books, journals and magazines and reports were used to collect adequate information about the theoretical aspects. Primary data was collected by using Organizational Climate Scale developed by Sanjyot Pethe, Sushama Chaudhari & Upinder Dhar (2001) which contains 22 items have two opposite adjectives on a 7 point semantic differential scale and measure four factors such as as (1) Results, Rewards and Interpersonal Relations,
(2) Organizational Processes (3) Clarity of Roles and Sharing of Information and (4) Altruistic Behavior. Normal range is considered to perceive the level of organizational climate as favorable. The normal range (favorable) lies in 84-124. The high score can be considered to perceive the level of climate as highly favorable (125 & above) and low score (83 & below) denotes unfavorable organizational climate.
Data Analysis And Interpretation

Table 1 Cluster Details Cluster Details Particulars N o . % of age SSI 2 33.3 33.3 33.3 100
Metal Based SSIs Electrical SSIs Total
Plastic Based SSIs 2 Based 2 6
Objectives
To study organizational climate prevailing in SSI and the way in which that affect the employee in the organization. To study the impact of demographic factors (age group, salary and experience) on the Organizational Climate in SSIs . To find out any differences in organizational climate exists in the SSIs understudy To open new vistas to the reseaach.
Chart: 1 : Cluster Distribution
Hypotheses
H01: There is no significant impact of Demographic factors (age group, salary and experience) on the Organizational
For this Research three clusters of Small Scale Industries i.e Metal Based SSIs, Plastic Based SSIs and Electrical Based SSIs were studied. Two SSIs were studied under each cluster of SSI. It is found from the table that 33.33% of the respondents were from Metal Based SSIs, Plastic Based SSIs and Electrical Based SSIs.
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Table: 2: Age Details of the Respondents PARTICULARS METAL BASED SSI
working in the SSIs under study. `From the data, it can be interpreted that: % ELECTRI% PLASCAL BASED TIC SSI BASED SSI 25 45 30 0 100 6 11 3 0 20 30 55 15 0 100 7 11 2 0 20
(20-30) (30-40) (40-50) Above 50yrs TOTAL
5 9 6 0 20
Chart 2(a) : Age Group 20-30 Years
Chart 2(b) : Age Group 30-40 Years
Chart 2(c) Age Group 40-50 Years
It is found from the table that 30% of the respondents are between 20 to 30 years of age which infer that only 30% of employees working in SSI are young and enthusiastic, Majority (51.67) % of the respondents are between 30 to 40 years of age which represents that the employees working in SSI are experienced, 18.33% of the respondents are between 40 to 50 years of age, 0% of the respondents are coming under the age of 50 & above which infer that there is no old employees
Electrical and Plastic based SSI are hiring young and fresher employees more than the Metal based SSI as employees in the age group of (20-30) are more energetic as well as they are cost effective to their organization. All the three SSIs are concerned with hiring experienced and skillful labor as the maximum percentage of employees in these SSIs comes in the age group of (30-40). In Metal based SSI, 30% of the employees are in the age group of (40-50) which shows that Metal based Sis are more focused on retaining their experienced and talented employees. As the SSI pay very less salary to their employees so the employees after getting the experience move to the Large Scale Industries, so there is not a single employee in the age group of 50 yrs and above.
It is found from the table that 50% of the respondents have less than 5 years of experience which infer % TO- that half of the emTAL(%) ployees working in the SSI under study are fresher or inexperienced, 25% 35 30 of the respondents 55 51.67 have 5 to 10 years 10 18.33 of experience, 25% of the respondents 0 0 have 10 to 15 years 100 100 of experience, 0% of the respondents have more than 15 years of experience which infer that there is no employee who have more than 5 years of experience. From the data, it can be interpreted that: 55% of employees working in Electrical based SSI have less than 5 yrs of experience as this cluster of SSI is more focused in hiring young and fresher employees as they are more enthusiastic as well as cost effective to their organization. In Metal based SSI, 30% of the employee has experience in the range of (5-10) yrs which is higher than the other two cluster of SSI. As the work in Metal based SSI require more experienced and skillful labor. In Plastic based SSI, 30% of the employees have (10-15) yrs of experience which shows that Plastic based SSI are more focused on retaining their experienced and talented employees. As the SSI pay very less salary % Plastic Based SSI 9 5 6 0 20 % Total (%) 50 25 25 0 100
Table: 3: Experience Details of the Particulars Metal Based SSI 10 6 4 0 20 %
Experience Details of the Respondents Electrical Based SSI 11 4 5 0 20
Less than 5 yrs 5-10 yrs 10 15 yrs More than 15 Yrs TOTAL
50 30 20 0 100
55 20 25 0 100
45 25 30 0 100
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to their employees so the employees after getting the experience of about 15yrs move to the Large Scale Industries, so there is not a single employee having more than 15 yrs of experience. Table: 4: Salary Details of the Respondents
than the other two cluster of SSI under study. Only about one fourth of the employees working in the SSI understudy earn above 2,00,000 according to their education and experience in the same industry.
CHI Square Test For Hypothsis 1

(A) Chi Square Test for Demographic Factor- Age
LC <115.44 AGE GROUP (20-30) 0 16 2 18 MC 115.44126.80 HC >126.80 Total
Experience Details of the Respondents (30-40) 7 23 1 31 (40-50) 2 5 4 11 ElecPlasMetal 0 0 0 0 trical tic Total Above 50yrs Particulars Based % % % Based Based (%) Total 9 44 7 60 SSI SSI Ssi Less Than 8 40 6 30 7 35 35 CHI SQUARE value for demo1,00,000 graphic factor Age = 13.37113 1,00,0008 40 10 50 8 40 43.33 D.O.F = (n-1) = 59 2,00,000 Table Value = 43.773 As Above2,00,000 4 20 4 20 5 25 21.67 the Calculated Value of CHI SQUARE TEST for demographic Total 20 100 20 100 20 100 100 factor Age Group (13.37) is less
It is found from the table that 35% of the respondents have salary less than Rs1,00,000 i.e. more than one fourth of the respondents earn less than Rs1,00,000 because of less experience, 43.33% of the respondents Earn in between 1,00,0002,00,000 which infer that most of the respondents earn salary in between Rs1,00,000 and only 21.77% of the respondents Earn above 2,00,000 which is as per their experience. From the data, it can be interpreted that: 35% of employees working in SSIs understudy earn salary less than Rs1, 00,000 as employees working in SSI are inexperienced as well as illiterate. In Electrical based SSI, 50% of the employee earn in the range of (Rs1,00,000-Rs2,00,000) which is higher than the other two cluster of SSI. As the work in Electrical based SSI require more technical as well as skillful labor, so they earn higher
Hypothesis Testing
Null Hypothesis: H01: There is no significant impact of Demographic factors (age group, salary and experience) on the Organizational Climate in SSIs under study. Alternate Hypothesis: Ha1: There is a significant impact of Demographic factors (age group, salary and experience) on the Organizational Climate in SSIs under study. Null Hypothesis H02: There is no significant difference between Organizational Climate according to Clustera of SSI under study. Alternate Hypothesis Ha2: There is a significant difference between Organizational Climate according to Clusters of SSI under study.
than the Table Value (43.773), so the Null Hypothesis will be accepted. Hence, the survey result that there is no significant impact of Demographic factors (age group) on the Organizational Climate in SSIs under study. (B) CHI Square Test For Demographic Factor - Experience
LC <115.44 EXPERIENCE Less than 5 years 5-10 years 10 15 years More than 15 Years TOTAL 7 21 2 30 MC 115.44126.80 HC >126.80 Total
0 2
14 9
1 4
15 15
44
60
CHI SQUARE value for demographic factor Experience = 8.99
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D.OF = (n-1) = 59 Table Value = 43.773 As the Calculated Value of CHI SQUARE TEST for demographic factor Experience (8.99) is less than the Table Value (43.773), so the Null Hypothesis will be accepted. Hence, the survey result that there is no significant impact of Demographic factors (Experience) on the Organizational Climate in SSIs under study. (C) CHI Square Test For Demographic Factor - Salary
LC <115.44 SALARY Less than 1,00,000 1,00,0002,00,000 Above 2,00,000 TOTAL 2 17 2 21 MC 115.44126.80 HC >126.80 Total
the Organizational Climate in SSIs under study.
Group T Test For Hypothsis 2

Mean Value for Cluster 1 (Metal Based) = 120.1 Mean Value for Cluster 2 (Electrical Based) = 120.8 Mean Value for Cluster 3 (Plastic Based) = 122.45 Group t Test for Cluster 1 and Cluster 2 = 0.03415 Group t Test for Cluster 2 and Cluster 3 = 0.12204 Group t Test for Cluster 1 and Cluster 2 = 0.11743 Table Value for Group T Test = 2.09
5 2 9
20 7 44
1 4 7
26 13 60
CHI SQUARE value for demographic factor Salary = 7.1046 D.OF = (r-1)*(c-1) = 4 Table Value = 9.49 As the Calculated Value of CHI SQUARE TEST for demographic factor Salary (7.1046) is less than the Table Value (9.49), so the Null Hypothesis will be accepted. Hence, the survey result that there is no significant impact of Demographic factors (Salary) on the Organizational Climate in SSIs under study As the Calculated Value of CHI SQUARE TEST for the entire demographic factor studied in the research is less than the Table Value, so the Null Hypothesis will be accepted. Hence, the survey result that there is no significant impact of Demographic factors (age group, salary and experience) on
As the Calculated Value of Group t Test for different Cluster i.e. Metal based SSI, Electrical Based SSI and Plastic Based SSI (0.034, 0.122, and 0.117) is less than the Table Value (2.09), so the Null Hypothesis will be accepted. Hence, the survey result that there is no significant difference between Organizational Climate according to Cluster of SSI under study (Electrical based SSI, Plastic Based SSI and Metal Based SSI).
Findings of the Study

It is found from study that half of the respondents have less than 5 years of experience which infer that half of the employees working in the SSI under study are fresher or inexperienced, one-fourth of the respondents have 5 to 10 years of experience, one-fourth of the respondents have 10 to 15 years of experience, none of the respondents have more than 15 years of experience which infer that there is no employee who have more than 5 yars of experience. It is found from the Research that more than one-fourth of
the respondents are between 20 to 30 years of age which infer that more than one-fourth of employees working in SSI are young and enthusiastic, Majority of the respondents are between 30 to 40 years of age which represents that the employees working in SSI are experienced, few of the respondents are between 40 to 50 years of age, none of the respondents are coming under the age of 50 & above which infer that there is no old employees working in the SSIs under study. It is found from the table that more than one-fourth of the respondents have salary less than Rs1,00,000 i.e more than one fourth of the respondents earn less than Rs1,00,000 because of less expeirnce, most of the respondents Earn in between 1,00,000-2,00,000 which infer that most of the respondents earn salary in between Rs1,00,000 and only less than one-fourth of the respondents Earn above 2,00,000 which is as per their experience. The survey result that there is no significant impact of Demographic factors (age group, salary and experience) on the Organizational Climate in SSIs under study i.e. Electrical based SSI, Plastic Based SSI and Metal Based SSI [as the calculated value for chi square test (8.99) is less than the Table Value(43.773)]. Organizational climate is a set of characteristics and factors that are perceived by the employees about their organizations which serve as a major force in influencing their behavior. As the employees working in SSI are uneducated, so they have no control on the Management of their Organization. Hence, the demographic factors like age group, salary and experi-
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ence of employees have no significant impact on the Organizational Climate in SSIs understudy. The survey result that there is no significant difference between Organizational Climate according to Cluster of SSI under study i.e. Electrical based SSI, Plastic Based SSI and Metal Based SSI [as the calcuted value of Group T Test for different clusters os Ssi i.e Metal based SSI, Electrical Based SSI and Plastic Based SSI ( 0.034, 0.122, 0.117) is less than Table Value(2.09). Organizational Climate of any organization depends on the values, policies and mission of that Organization. As almost all SSIs in Delhi have almost similar mission i.e. - Promoting balanced development of industries across all the regions of the economy. - Distributing national income in more efficient and equitable manner among the various participants in the process of good production - Efficient utilization of the skills as well as resources available locally. So, all the clusters of SSI understudy share same Organizational Climate. Hence there is no significant difference in the Organizational Climate according to Cluster of SSI under study i.e. Electrical based SSI, Plastic Based SSI and Metal Based SSI.
Small Scale Industries can motivate their employees The Small Scale Industries should focus on motivating the employees so as to enhance their morale. The Small Scale Industries should focus on the health benefits as well as family welfare of their employees. The Small Scale Industries should give financial as well as non financial incentives to their employees according to their output to the organization.
5. Desai V (2005), Small Scale Industries And Entrepreneurs (5th ed.), India: Himalaya Publishing House,Pp48-75 6. Dangwal R C, et.al (2007), Multinational organizational climate and managerial effectiveness A comparative study in multinational pharmaceutical organizations, BVIMR Management Edge, Vol 1, No 1, pp 10-23 7. Dhar Upinder, Mishara Prashant and Srivastava D K (2002), Manual for Organizational Climate Scale, Vedant Publications, Lucknow 8. Fleishman, E. A. (1953), Leadership climate, human relations training, and supervisory Behaviour, Personnel Psychology, Vol. 6, pp. 205-222. 9. Giri, Vijay N and Kumar Pavan (2007), Organizational Commitment, Climate and Job Satisfaction: An Empirical Study, The Icfai Journal of Organizational Behavior, Vol 6, No 3, pp 7-18 10. Gupta, Smita (2007), Organizational commitment and climate for participation: An empirical study in private and public sector, Icfai Journal of Organizational Behavior, Vol 6, No 2, pp 14-21 11. Kathirvel N (2010), A study on organizational climate with special reference to engineering industries in Coimbatore, Journal of Management Studies, Vol 4, No 2, pp 27-39 12. Kundu K (2007), Development Of The Conceptual Framework of Organizational Climate, Vidyasagar University Journal of Commerce, 12 (1), pp 99-108 13. Singh Sandeep, Punia B K and Behmani, Rakesh K (2006), Emotional Competence and Organizational Climate in Relation to Anxiety Among the Supervisory Personnel: An Inter-Correlational Analysis, ICFAI Journal of Organizational Behaviour, Vol 5, No 3, pp74-83
Conclusion
The present study highlights the relevance of conducive organizational climate required in an organization with specific reference to small scale units. The study tried to explore the impact of demographic features on organizational climate in the selected units of the study. The data provided a description of relatively young, less educated and untrained workforce which received a moderate level of financial remuneration. The general picture emerging out of these findings indicate that overall a favorable climate exists in the Small Scale Industries.
Refrences
1. Aswathappa, K (2009), Human

Resource and Personnel Management (5th ed.), India: Tata Mcgraw-hill,Pp158-170 Balaraju, Thaduri (2004), Entrepreneurship and Small Scale Industries, India: Akansha Publishing House, Pp 158- 170. Biswas S (2010),Relationship Between Psychological Climate and Turnover Intentions and its Impact on Organizational Effectiveness: A Study in Indian Organizations, IIMB Management Review, 22 (3), pp 102-110 Cooper, DR (2003), Business Research Methods, India: Tata Mcgraw-hill,Pp518-566
2.
Recommendations
The Small Scale Industries can provide proper training to their employees in order to enhance their performance as well as their efficiency to perform the task. The Small Scale Industries should take some steps to retain their talented employees for a longer period of time. For retention of employees the
3.
4.
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The Era of Combative Advertising in India

Kushi Sharma (Sr. Lecturer) Amity School of Business Shaili Sharma (Lecturer) Amity School of Business Advertising is the promotion of a companys products and services carried out primarily to drive sales of the products and services but also to build a brand identity and communicate changes. There is nothing intrinsically good or intrinsically evil about advertising. It is a tool, an instrument: it can be used well, and it can be used badly. Over the years, comparative advertising has become popular with many marketers and is truly gaining prominence across almost all product genres. Comparative advertising is an advertisement in which a particular product, or service, specif cally mentions a competitor by name for the express purpose of showing why the competitor is inferior to the product naming it. Though the concept has advantages as well as disadvantages, this strategy is being adopted by the different f rms. Different people share different views when it comes to discussing the usefulness and underlying ethics concerning Combative Advertising or Comparative advertising, on the other hand, is one of the manifestations of competitive advertising and it can generate healthy competition if used properly.
KEY WORDS: Advertising, Comparative/Combative Advertising. Ethics, Competition, Brand, Sales
Advertising is a form of communication intended to persuade an audience (viewers, readers or listeners) to take some action. It includes the name of a product or service and how that product or service could benefit the consumer, to persuade potential customers to purchase or to consume that particular brand. It can also serve to communicate an idea to a mass amount of people in an attempt to convince them to take a certain action, such as encouraging environmental friendly behaviors. Modern advertising developed with the rise of mass production in the late 19th and early 20th centuries.
Advertising is the promotion of a companys products and services carried out primarily to drive sales of the products and services but also to build a brand identity and communicate changes or new product /services to the customers. Advertising has become an essential element of the corporate world and hence the companies allot a considerable amount of revenues as their advertising budget. There are several reasons for advertising some of which are as follows:
Creating and maintaining a brand identity or brand image. Communicating a change in the existing product line. Introduction of a new product or service. Increasing the buzz-value of the brand or the company.
Increasing the sales of the product/service
Thus, several reasons for advertising and similarly there exist various media which can be effectively used for advertising. Based on these criteria there can be several branches of advertising. Mentioned below are the various
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categories or types of advertising:
1. Print
Advertising Newspapers, Magazines, Brochures, Fliers Advertising Billboards, Kiosks, Tradeshows and Events advertising Television, Radio and the Internet Advertising Advertising in Movies Advertising Advertising Indirectly
2. Outdoor
3. Broadcast
Enormous human and material resources are devoted to advertising. Advertising is everywhere in todays world, No one now can escape the influence of advertising. Even people who are not themselves exposed to particular forms of advertising confront a society, a culture other people affected for good or ill by advertising messages and techniques of every sort.
person as intelligent and free then consumer attitudes and lifestyles can be created which are objectively improper and often damaging to his physical and spiritual health.
Harms of Advertising
Political
4. Covert
The Harm Advertising
Done
by
5. Surrogate
6. Public Service Advertising

Advertising for Social Causes
7. Celebrity Advertising
When you hear Neighbours envy, Owners Pride even today reminds you of ONIDA TV and its devil. That is the power of advertising. This hugely popular advertisement compaign went on to become the folklore in Indian advertising history. For that matter, even Hamara bajaj or I love you rasna, made history one with patriotic advertising and another with the sheer charm of Rasna girl. At present, list of hit ad compaigns include, Hutch with it becoming synonymous with the boy and the faithful dog following him, Airtel for the soothing A R Rehman music or for express yourself slogan, Raymond ad with slogan The Complete Man and Amuls ads with Taste of India and the most hilarious ad of Cloremint - Dobaara math poochna. These are only the samples and the list is pretty much longer than that. Anyway the liking of an ad is entirely an individual opinion.
There is nothing intrinsically good or intrinsically evil about advertising. It is a tool, an instrument: it can be used well, and it can be used badly. If it can have, and sometimes does have, beneficial results such as those just described, it also can, and often does, have a negative, harmful impact on individuals and society.
Political advertising can support and assist the working of the democratic process, but it also can obstruct it. This happens when, for example, the costs of advertising limit political competition to wealthy candidates or groups, or require that officeseekers compromise their integrity and independence by overdependence on special interests for funds.
Cultural Harms Advertising
of
Economic Harms Advertising
of
Advertising also can have a corrupting influence upon culture and cultural values. Communicators also can find themselves tempted to ignore the educational and social needs of certain segments of the audience the very young, the very old, the poor who do not match the demographic patterns (age, education, income, habits of buying and consuming, etc.) of the kinds of audiences advertisers want to reach. In this way the tone and indeed the level of moral responsibility of the communications media in general are lowered. All too often, advertising contributes to the invidious stereotyping of particular groups that places them at a disadvantage in relation to others. This often is true of the way advertising treats women
Advertising can betray its role as a source of information by misrepresentation and by withholding relevant facts. More often, though, advertising is used not simply to inform but to persuade and motivate to convince people to act in certain ways: buy certain products or services, patronize certain institutions, and the like. This is where particular abuses can occur. Sometimes advertisers speak of it as part of their task to create needs for products and services that is, to cause people to feel and act upon cravings for items and services they do not need. If ... a direct appeal is made to his instincts while ignoring in various ways the reality of the
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Moral and Religious Harms of Advertising

Advertising can also be vulgar and morally degrading. Frequently it deliberately appeals to such motives as envy, status seeking and lust. Today, too, some advertisers consciously seek to shock and titillate by exploiting content of a morbid, perverse, pornographic nature. We can identify several moral principles that are particularly relevant to advertising. We shall speak briefly of three: truthfulness, the dignity of the human person, and social responsibility.
and illogical media presentation gives them a panacea image for that symptom which is clearly not to be permitted at all by the IMA. According to ASCI, its Consumer Complaints Council heard as many as 32 complaints of false promises, double meaning, racism, unethical and bias in nature in advertisements of various companies.
The ecological issue is one. Advertising that fosters a lavish life style which wastes resources and despoils the environment offends against important ecological concerns. Advertising that reduces human progress to acquiring material goods and cultivating a lavish life style expresses a false, destructive vision of the human person harmful to individuals and society alike. When people fail to practice a rigorous respect for the moral, cultural and spiritual requirements, based on the dignity of the person and on the proper identity of each community, beginning with the family and religious societies, then even material abundance and the conveniences that technology makes available will prove unsatisfying and in the end contemptible.
The Dignity of the Human Person

There is an imperative requirement that advertising respect the human person, his right duty to make a responsible choice. Advertising can violate the dignity of the human person both through its content what is advertised, the manner in which it is advertised and through the impact it seeks to make upon its audience. This problem is especially acute where particularly vulnerable groups or classes of persons are concerned: children and young people, the elderly, the poor, the culturally disadvantaged. Much advertising directed at children apparently tries to exploit their credulity and suggestibility, in the hope that they will put pressure on their parents to buy products of no real benefit to them.
Truthfulness in Advertising
Even today, some advertising is simply and deliberately untrue. Generally speaking, though, the problem of truth in advertising is somewhat more subtle: it is not that advertising says what is overtly false, but that it can distort the truth by implying things that are not so or withholding relevant But it is a fundamental principle that advertising may not deliberately seek to deceive, whether it does that by what it says, by what it implies, or by what it fails to say. The proper exercise of the right to information demands that the content of what is communicated be true and, within the limits set by justice and charity. Is it prudent to give TV / newspaper/other media advertisements on use of certain allopathic medicines which have got (almost all) deleterious side effects. Some of the side effects like acute peptic(stomach) perforation after TAB SARIDON abuse may be life threatening. But unethical
Areas of Concern
Advertising ethics affects the practice of our lives and also the practice of business, in subtle and prominent ways. Indeed, ethics in ads concern us all in one way or the other. The areas under scrutiny of the critics are as follows: Types of ads for sex related products Instead of making people aware of the necessity of safe sex and the benefits of birth control condom ads continue to misguide the youth. Ads for health care and professional services The slimming centers that promise miraculous weight reduction; the cosmetic surgery clinics that assure permanent solution to beauty problems. Ads for vices with fatal effects Tobacco chewing ads, commercials
Advertising and Social Responsibility

Social responsibility is such a broad concept that we can note here only a few of the many issues and concerns relevant under this heading to the question of advertising.
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of alcoholic beverages that tempt the non-alcoholics to have a sip. Types of appeals Use of questionable appeals The ads that bank on fear and negative appeal like neighbors envy, jealousy, feud between daughter-in-law and mother-in-law etc. Stereotypical appeals Sexual or racial stereotyping. Advertisements that imply that a woman, whether in kitchen or in the boardroom, ought to look sensuous and inviting under any circumstances. The fairness creams stereotype the dusky women as socially less desired for marriage.
vulnerability of the children and adolescents create role models whom the kids are expected to emulate and, thus, shape their dreams and aspirations in an unbecoming way. Advertisers concern Voice/Tone of the ad Comparative ads that thrive on inflicting vitriolic attacks on their rivals; copying the idea in the ad world is another such menace.
Comparative Advertising the need of the hour

Comparative advertising is an advertisement in which a particular product, or service, specifically mentions a competitor by name for the express purpose of showing why the competitor is inferior to the product naming it. In this age of information overload when a new brand is born almost every day, more and more Companies are looking for ways to catch the customers attention by portraying their brand as a shade better than that of their competitors product. While some advertisers prefer to only talk about the superiority of their own brand in their advertising campaigns, others believe in taking a more direct approach of drawing comparisons with the market leader or the competition brand, thus positioning their product offering as a shade better. The aim is to trigger off a shift in the customers mindset, thereby converting them into loyal customers and increasing sales. This is the crux of Comparative Advertising. Over the years, comparative advertising has become popular with many marketers and is truly gaining prominence across almost all product genres.
Comparative advertising, also commonly referred to as Combative Advertising includes all those advertising campaigns that make use of direct, highly blatant and often humorous advertisements created with the goal of establishing a direct comparison between two competing brands of the same product range. The guiding force behind such advertising is to project the fact that the advertisers brand is far more superior and offers greater value for money as compared to the other brand A comparative advertisement usually showcases the competition brand in its ad to make a direct comparison. Advertising Standards Council of India, has this to say about comparative advertising in its Code of Conduct:
Larger effects society
on
the
Value formation Advertisements responsible for molding society, material wants. The ads displaying scantily clad female models commoditize women. And the deluge of ads that increase ones propensity of consumption makes one feel that possessing a certain commodity is essential to show that one belongs to the higher echelon of the society. Media content Information content of ads; the ads that suggest the use of preserved food items without a slightest mention of the fact that many of these preservatives have been proved to have carcinogenic effect. Use of deception The ads of brands that conceal their negative aspects. The ads of cosmetics that say nothing about the long-term effects of regular usage of their products; the ads of the educational institution that wrongly claim to give 100 percent placement to its students are examples of this type. Advertising targeting children and adolescents The ads that target the
Combative Advertising, over the years:

The comparison war between Pepsi & Coke is definitely one of the best examples of Combative Advertising. Other brands that have indulged in such blatant & often questioned advertising strategy include Horlicks & Complan The Horlicks Complan advertisement launched during the last quarter of the year 2008 has once again brought comparative advertising into the limelight. In this advertisement Horlicks, Glaxo Smithklines health drink, has directly compared the nutritional value with that of the Heinz Indias Health drink Complan . Horlicks directly claimed that its drink was more nutritional and priced low than its rival complan. To which complan responded and proved the superiority of its
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pricing. Complan in December 2008 launched an aggressive direct comparative advertisement targeting horlicks. In its ad, complan compared its attributes with horlicks and demanded an action from the customers to choose among the low-cost health drink and complete growth.
brand in their own advertising campaigns. Despite the conflicting views about whether or not a marketer should indulge in Comparative Advertising, Companies continue to spend time, efforts and their creative juices in devising combative advertisements that not just bring them in the limelight; they also sometimes land them in a tricky legal battle. Different countries have different laws in place when it comes to comparative advertising and these need to be followed.
Pepsodent Case
vs
Colgate
Rin & Tide

The recent Rin vs Tide ad is a classic example of comparative advertising that took the Indian advertising industry to a different level. HULs controversial ad claiming that Rin was far more superior than Tide on the whitening aspect was aired on televisions at the end of the month of February and it created a furor among the industrial fraternity, media and consumers as well. HUL claimed that the ad was in retaliation to P&Gs claim that the Tide Naturals brand had natural ingredients. Direct competitors out rightly lashing out at each other in this case do bring forth the evils arising out of cut-throat competition and unsuccessful price wars in an oligopolistic market structure.
Customer Relevance: What Comparative Advertising means to the Consumer

At the end of the day, all advertising efforts are projected towards one common cause to reach out to the target consumers. Whether or not combative advertising helps a brand is an entirely different issue. What needs to be seen is how such advertising affects the customers mindset and their buying behaviour? It is often seen that ads which draw direct comparisons between brands are not really taken seriously and only remain a means for short lived entertainment and nothing more. As long as such campaigns act as a stimulus for brands to improve their quality and offer the end customer better value for their money, who am I to complain? In a competitive environment, every representation of a product or service is about what others are not. These practices raise questions about truthfulness and fairness of representation of products and services.
Conf icting Views about Comparative Advertising

Different people share different views when it comes to discussing the usefulness and underlying ethics concerning Combative Advertising. While some believe that comparative advertising can help to showcase just how customers can benefit from switching over from one brand to another in terms of quality delivered and value for money offered, others think that there is no reason why a brand should feature their competitors
Hindustan Lever Ltd claimed in advertising its New Pepsodent that this particular toothpaste was 102% better than the leading one. Its TV advertisement showed saliva samples of two boys taken for testing hours after brushing. The ad suggested one boy had brushed with the New Pepsodent while the other one had used a leading toothpaste. Visually depicting the test of the two samples side by side, the slide with sample of the leading toothpaste showed a large number of germs while that with the New Pepsodent showed negligible germs. In the ad, the boys were asked the name of the toothpaste they had used. While one boy said Pepsodent, the response of the second boy was muted. However, the lip movement of the boy indicated Colgate. Also, while muting, the music played in the background resembled that of the jingle used in the Colgate advertisement. The market share of toothpaste for Colgate and Hindustan Lever was 59% and 27% respectively. The Commission was, thus, of the view that a reference to a leading and famous brand implied Colgate. But the Commission noted that due to the jingle played in the background resembling to the one of Colgate and due to the brands presence in India for over 50 years, the comparative product in the TV ad could be identified as Colgate. Thus, it became a case of comparative advertisement and a claim could be made of disparagement of Colgates products.
Godrej vs Vasmol Case

Godrej Ltd, who has products like Godrejs Hair Dye and Godrej Kesh Kala for dyeing hair, was
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aggrieved with the TV commercial of Vasmol Hair dye. The ad opened with a lady dyeing her hair with instant hair dye made by mixing hair dye... Comparative advertising, as the name suggests, is advertising of a product or service by comparing it with similar products or services (usually the competitors). One advantage of comparative advertising is that it improves the quality of information available to consumers, thus enabling them to make more informed decisions relating to a choice between competing products/services by demonstrating the merits of comparable products. However, there is an implicit danger in the practice. Once an entity addresses the merits and inadequacies of competing goods or services, it may be tempted to denigrate them or derive unfair advantages from such inaccurate comparisons. In such a scenario, commercial relationships get exposed to the constant threat of unfair practices. The Trademark Act, 1999, allows the use of a registered trademark by a person for the purposes of identifying products or services as those of the proprietor, provided the use is:
A case in point is Paras Pharmaceuticals Ltd versus Ranbaxy Laboratories Ltd and Two Others, where the dispute related to the television commercial of Volini pain reliever manufactured by Ranbaxy Laboratories. In the said ad/television commercial, a woman (presumably the mother) was shown flipping out a box of pain relievers that bore uncanny resemblance to the packaging of Moov, marketed by Paras Pharmaceuticals Ltd. Later in the commercial, another woman was shown coming to the rescue of the first woman (mom) and suggesting another remedy. She offered a pack of Volini gel to her saying, You need a true pain reliever. The Gujarat High Court held that the advertisement disparaged Paras Pharmaceuticals Ltds product. Another case in point is Eureka Forbes Ltd versus Pentair Water India Pvt Ltd. It was over an advertisement that claimed Water contains contaminants that are invisible to the naked eye and to your UV water purifier. The Court granted an order of injunction that restrained Pentair Water India from broadcasting that advertisement, or circulating or distributing any material defaming or maligning Eureka Forbes Aquaguard or UV Purifiers. The Court observed that since Eureka Forbes used UV technology in Aquaguard, the advertisement (though generic) mounted to disparaging the product sold by Eureka Forbes. Similarly, in the case of Dabur India Ltd versus Emami Ltd, the Delhi High Court ruled that even though there is no direct reference to a Dabur India Ltd product and just a passing reference is made to the entire class of Chyawanprash in a generic sense, disparagement is possible.
The Godrej Sara Lee Ltd versus Reckitt Benckiser Ltd case deals with a similar issue in context to Godrejs Hit. The product has two versionsone packaged in a red can meant for killing cockroaches, while the other comes in a black can and is meant for killing mosquitoes. Reckitt Benckisers product Mortein, in contrast, is meant for killing both cockroaches and mosquitoes. The company came out with an advertisement claiming that its single version product was good for both types of insects. In other words, there is really no need to use two different products for shooing away mosquitoes and cockroaches. The Delhi High Court ruled in favour of Reckitt Benckiser. As things stand, the current legislative position on comparative advertising is that a tradesman can declare his product the best in the world, even when the declaration happens to be untrue. In fact, with the objective of declaring his product the most superior in the world, he can compare the merits of his products with others, but therein ends his liberties. The advertiser cannot claim that his competitors goods are bad. In effect, self-praise is allowed; slander is not. In other words, defamation of competitors and their products is not permissible under Indian laws (Reckitt & Colman of India Ltd versus MP Ramachandran and Another). It is also held that direct reference to another products inferiority cannot be carried in an advertisement (Hindustan Lever versus Colgate Palmolive). At the same time, the courts have ruled that if a competitor makes the consumer aware of his mistaken perception about a product, the plaintiff cannot complain against
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In accordance with honest practices followed in industrial or commercial spheres; and does not take unfair advantage of or is detrimental to the distinctive character or reputation of the trademark.
Subject to reasonable restrictions imposed under Article 19(2) of the Constitution, an advertisement is considered to be commercial speech guaranteed under Article 19(1) (a) of the Constitution of India.
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such action. Thus, truth is strong defence against any assault or challenge regardless of whether any damage has been caused as a result of it (Reckitt Benckiser versus Naga Ltd and Others). In sum, comparative advertising is allowed only if it is done within certain permissible limits, along pre-defined parameters. Advertisers must in that case be cautious and careful before targeting their competitors products. The big drawback with comparative advertising however is that customers have become skeptical about claims made by a company about its competitors because in most cases, they do not present accurate information in such ads, thus making the whole comparative advertising questionable. Above all, companies that engage in comparative advertising must be careful not to misinform the public about a competitors product In June 2004, Bajaj Almond hair oil is advertised as superior to Coconut Oil as it contains 300% or times, more of Vitamin E. It could be factually correct because Coconut Oil contains hardly any Vitamin E. But the implications in that message is needless misguidance and mislead the public. If the product is that good, Bajaj being more than a hundred year old company, should have by now captured the First position and not be behind many other in hair oil market. For example, ground oil contains infinite times more Vitamin E than water. But it means nothing using facts to mislead / misguide is also wrong.
Maruti vs. Hyundai Ads

The Hyundai ad where it did a comparison of Maruti Suzukis Ritz, now with Maruti reacting to Hyundais ad by coming up with a comparative ad of A Star Vs i10 a few days back is an example of comparative advertising. Competitors reacting to each others ad seems to be a futile exercise, because the focus of these ads is not the consumer, but a competitor and all you are trying do is to counter whatever was said in the earlier ad . A waste of resources and energy, which does not help in anyway the decision making process of buying a car.
the market share erosion. HUL was facing a steady erosion in the market share in most of the categories. In the detergent category itself, the brand faced a market share fall of 2.5% in December 2009. With P&G starting a price war, HUL had to react and it did by cutting the price of Rin by 30% to Rs 50 per Kg. While P&G opened a war in the price front, HUL retaliated by opening two war fronts. One was the direct comparative ad and other through the court order asking P&G to modify Tide Naturals Ad and to admit that Tide Naturals is not Natural. Tide chose not to respond because further fuel to the fight can highlight the fact that Tide Naturals does not contain any Natural Ingredients which may negatively affect the brands standing in the consumers mind. So it is better to play the role of a poor victim at this point of time. P&G can celebrate because of the free advertisement it got for Tide Naturals because of the comparative ad of Rin. According to academic literature, Comparative ads are those ads which involves directly or indirectly naming competitors in an ad and comparing one or more attributes in an advertising medium There are two broad types of comparative ads. One is the Direct comparative ads which compares the competitor in more than one attribute. The second type is the Indirect comparative ad which projects the brand as the Leading Brand rather than comparing on certain attributes.
Rin Vs Tide
The comparative ad of Rin and Tide generated huge buzz in the market. The direct comparative campaign evoked mixed reaction across the media. That single controversial ad generated crores worth of buzz about the brands in question. There was a proxy war going on between Rin and Tide since December 2009. During December, P&G launched the low priced variant of Tide branded Tide Naturals. Tide Naturals was priced significantly lower to the Rin. Tide Naturals was launched at Rs 50 per Kg , Rs 10 for 200 gms and Rs 20 for400 gms. Rin was priced at Rs 70 per Kg at that time. The reduced price of the Tide variant was an immediate threat to Rin. Since Tide already has an established brand equity, Rin was bound to face the heat. Although HUL had another low priced brand Wheel priced at Rs 32/Kg, Tide was not in the same category of Wheel. Rin had to cut the price to resist
The comparative ads generally result in counter arguments which often create
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such a noise that it discounts the original argument/ information. Consumers tend to discount the claims by both the competing brand because of the arguments.
Comparative advertising strategy is more effective for smaller brands rather than established large brands. By challenging a larger brand through comparative advertisement the small brands tend to derive more acceptance and awareness than the larger brand. Comparative ads are found to be more effective for categories where consumers tend to use their analytical mind. Comparative ads tend to fail where consumers use imagery while evaluating the brands. For example, products like automobiles use comparative ads extensively and with effectiveness. There are also studies which show that male consumers are more attracted towards comparative ads compared to female consumers.
and Complan showed the competitors product in bad light when compared to the companys products. In September 2008, Heinz moved the Bombay High Court objecting to advertisements of Horlicks which highlighted the nutritional content and price gap between the two brands, and showed Horlicks as a better and more inexpensive health drink than Complan The advertisements talked about how their respective brand was better than the other and We do not wish, and certainly we do not expect, to see advertising eliminated from the contemporary world. Advertising is an important element in todays society, especially in the functioning of a market economy, which is becoming more and more widespread. we call upon advertising professionals and upon all those involved in the process of commissioning and disseminating advertising to eliminate its socially harmful aspects and observe high ethical standards in regard to truthfulness, human dignity and social responsibility. In this way, they will make a special and significant contribution to human progress and to the common good.
Comparative advertising, on the other hand, is one of the manifestations of competitive advertising. It drives sales by comparing the features or services of a brand with that of its closest competitor. It is most often seen in markets and categories that are price-sensitive or where a benefit/ attitudinal upper hand by brand is the key to winning consumer votes in a crowded me too category. Consumers today need instant, ready-to-consume information on products and services. Comparative advertising helps them make informed choices. Some advertisements are entirely and deliberately fallacious. Generally speaking though, the dilemma of truth in advertising is more subtle: it is not that advertising depicts what is clearly false, but that it can twist the truth by implying things that are not so or by withholding significant facts Here comes the significance of comparative advertising. If done ethically with honesty and fairness, it can be a positive beneficial force. On the surface, comparative advertising is both a practical and a social way of increasing awareness and sales. The ads if oriented towards providing the customers with trustworthy information thereby helping them to make informed decisions. The comparative ads do not just market the products, they also provide certain valuable information to the public using comparative advertising, consumers can be provided with the information that they might not know with just a regular ad as comparison helps to highlight features that the customer might have ignored. A 2-3 minute quick comparative ad can help to give the customers a clear picture about both the companies products. Such an ad can at the forefront
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Although Indian marketing world have seen lot of comparative ads, the current Rin Vs Tide is a rare case of direct comparative ad where the brand has taken the competitor brands name and challenging it head on. That is the main reason behind the media noise about the campaign.
The Power of Comparative Advertising.

In todays competitive market, advertisers resort to numerous ways, not all fair and ethical to survive. While the basic aim of advertising is to create awareness about a product to prospective consumers, advertisers sometimes resort to unethical means, make exaggerated claims and mislead the gullible public.
The Fight for the Indian Health Drink Market

In late 2008, a legal battle broke out between GlaxoSmithKline Consumer Healthcare (GSK) and Heinz India (Heinz) over the advertisements of their respective health drinks Horlicks
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reduce cost, encourage struggle for existence in the market by compelling both the companies to offer better products, lead to product innovations an most importantly help to thwart monopolistic practices. The comparative ads must follow certain guidelines that will enable them to counteract the competitors ads/ brands in a more effective manner.
should I buy this brand that I am not familiar with? and how can I trust this brand ; the chances of preferring the advertised brand increases many fold while decreasing that of competitors brand.
7. http://www.vatican.va/roman_
curia/pontifical_councils/ pccs/documents/rc_pc_pccs_ doc_22021997_ethics-in-ad_ en.html.
8. h t t p : / / h u b p a g e s . c o m / h u b /
advertisingtochildren.
References
1. Badvertising, Another shade
of Creative World Advertising Express, February 2010.
9. h t t p : / / b l o g . m o b i s s i m o . i n /
uploads/ambush_marketing_ kingfisher_airlines.jpg.
10. http://www.diamondvues.com/
pepsi-coke.jpg.
1. While
raising any claim against the competitor brand, the advertisers should ensure that they make true and factual claims.
2. Ethics in Advertising, Gimmick

or Reality Advertising Express, October 2009.
11. http://www.financialexpress.
com/.../comparative-advertisingin-india.
3. Comparative
2. The claims made in the ad

should be honest, consistent andd developed on the principles of fair competition i.e, they should not deceive customers.
Advertising, The Brands Smack Down Advertising Express, March 2009.
12. h t t p : / / w w w . i c m r i n d i a .
org/.../Complan-Horlicks Comparative%20AdvertisingEthics-Case%20Studies.htm.
4. Batra Rajeev, Aaker, David A

and Myere John G. Advertising Management, Fifth Edition, Pearson Education.
13. http://us.asiancorrespondent.
com/indianomics/tide-vs-rin-comparative-ads-new-leaf-inindian-advertising.
3. The claims or comparisons

made between the brands should be sustained WITH PROPER PROOFS and should be documented for future references.
5.
Belch and Belch, Advertising and Promotion, Sixth Edition, Tata McGraw Hill.
14. h t t p : / / w w w . l b h a t . c o m /
advertising/comparativeadvertising-the-debate-is-b
6. Advertising, Sales and Promotion

Management, S.A. Chunawalla, Himalaya Publications, Fourth Edition.
4. If comparative advertising
answers two basic questions of customers such as why
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Post Merger Investment Performance: An Empirical Investigation

Dr.Bibhu Prasad Sahoo (Head, Dept. of Business Economics) S.G.T.B Khalsa College, University of Delhi The Indian economy has been growing with a rapid pace and has been emerging at the top, be it Information Technology, Research & Development, pharmaceutical, infrastructure, energy, consumer retail, telecom, nancial services, media, and hospitality etc. It is second fastest growing economy in the world. Investors, big companies, industrial houses view Indian market in a growing and proliferating phase, whereby returns on capital and the shareholder returns are high. Both the inbound and outbound mergers and acquisitions have increased dramatically. Mergers or amalgamation, results in the combination of two or more companies into one, wherein the merging entities lose their identities. No fresh investment is made through this process. However, an exchange of shares takes place between the entities involved in such a process. Generally, the company that survives is the buyer which retains its identity and the seller company is extinguished. Mergers, acquisitions and takeovers have been a part of the business world for centuries. In todays dynamic economic environment, companies are often faced with decisions concerning these actions-after all; the job of management is to maximize shareholder value. Through mergers and acquisitions, a company can (at least in theory) develop a competitive advantage and ultimately increase shareholder value. This research is an attempt to nd the solution to these questions- I) Do mergers live up to the expectations built around them? ii) What impact do mergers have on the share prices of the acquirer company? iii) Do mergers result in a positive impact on the nancial performance of the acquirer company? iv) What is the impact of a merger on the supply chain of a company? Introduction
The process of mergers and acquisitions has gained substantial importance in todays corporate world. This process is extensively used for restructuring the business organizations. In India, the concept of mergers and acquisitions was initiated by the government bodies. Some well known financial organizations
also took the necessary initiatives to restructure the corporate sector of India by adopting the mergers and acquisitions policies. The Indian economic reform since 1991 has opened up a whole lot of challenges both in the domestic and international spheres. The increased competition in the global market has prompted the Indian companies to go for mergers and acquisitions as an important
strategic choice. The trends of mergers and acquisitions in India have changed over the years. The immediate effects of the mergers and acquisitions have also been diverse across the various sectors of the Indian economy. The termsMergers and Acquisitions may seem alike to a layman but in legal/ corporate terminology, they
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can be distinguished from each other: In simple terms, a merger involves the mutual decision of two companies to combine and become one entity; it can be seen as a decision made by two equals, whereas an acquisition or takeover on the other hand, is characterized by the purchase of a smaller company by a much larger one. This combination of unequals can produce the same benefits as a merger, but it does not necessarily have to be a mutual decision. Many mergers are in truth acquisitions. One business actually buys another and incorporates it into its own business model. Because of this misuse of the term merger, many statistics on mergers are presented for the combined mergers and acquisitions that are occurring. This gives a broader and more accurate view of the merger market
may sell related products or share marketing and distribution channels or production processes. Such kind of merger may be broadly classified into following:
Product-extension merger: Conglomerate mergers, which involves companies selling different but related products in the same market or sell non-competing products and use same marketing channels of production process. E.g. Phillip Morris-Kraft, PepsiCoPizza Hut, Proctor and Gamble and Clorox Market-extension merger: Conglomerate mergers wherein companies that sell the same products in different markets/ geographic markets. E.g. Morrison supermarkets and Safeway, Time WarnerTCI. Pure Conglomerate merger: Two companies which merge have no obvious relationship of any kind. E.g. BankCorp of America- Hughes Electronics.
by various extraneous factors such as human capital component and the leadership. Much of it depends on the companys leadership and the ability to retain people who are key to companies on going success. It is important, that both the parties should be clear in their mind. This motive will determine the risk profile of such MERGER AND ACQUISITION. Generally before the onset of any deal, due diligence is conducted so as to gauze the risks involved and the quantum of assets and liabilities that are acquired.
Motives for merger

The merger activities are primarily the result of following factors and strategies, which are classified under three heads: (a) Strategic motives, (b) Financial motives, and (c) Organisational motives.
Types of mergers
Mergers are classified into the following types: -Horizontal merger: Two companies that are in direct competition and share the same product lines and markets i.e. it results in the consolidation of firms that are direct rivals. E.g. Exxon and Mobil, Ford and Volvo, Volkswagen and Rolls Royce and Lamborghini -Vertical merger: A customer and company or a supplier and company i.e. merger of firms that have actual or potential buyerseller relationship. e.g. FordBendix, Time Warner-TBS. -Conglomerate merger: Generally a merger between companies which do not have any common business areas or no common relationship of any kind. Consolidated firm
Strategic motives
The strategic motives behind merger activities are as follows:
On a general analysis, it can be concluded that Horizontal mergers eliminate sellers and hence reshape the market structure i.e. they have direct impact on seller concentration whereas vertical and conglomerate mergers do not affect market structures e.g. the seller concentration directly. They do not have anticompetitive consequences. The circumstances and reasons for every merger are different and these circumstances impact the way the deal is dealt, approached, managed and executed. .However, the success of mergers depends on how well the deal makers can integrate two companies while maintaining dayto-day operations. Each deal has its own flips which are influenced
Expansion and growth: If allowed by the government, expansion and growth through merger is less time consuming and more cost effective. Dealing with the entry of MNCs: Merger or joint venture is a possible strategy for the survival with the arrival of MNCs. It may be difficult to beat the MNCs without strategically aligning with them. Economies of scale: The bigger is always thought to be better in the industrial era. Pooling of the resources definitely will bring about the economies of scale. These economies of scale may result in one or more of
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the critical functions, namely, production, marketing and finance. The combination of two or more companies will result in large volume of operations and it will result in economies of scale.
to control the price in a better manner with a consequent increase in profitability.
Synergy: If the resources of one company are capable of merging with the resources of another company effortlessly, resulting in higher productivity in both the units, it is a case of synergy. For example, if the technical manpower in one unit can exploit the modern machineries in another organisation, it will be fruitful for both the organisations. The concept of synergy can be explained symbolically as follows:
Backward/ Forward integration: Where supply of raw material is critical, acquiring a company producing the raw material will be an added advantage. This is a case of backward integration. Similarly, if the critical value additions are done in the subsequent stages, it may be profitable for an organisation to engage in merger activities resulting inforward integration. New product entry: Entering into a new product market is a time consuming effort. Companies with adequate resources will do well in new product market through mergers. New market entry: Advertisement and market promotion activities will be more cost effective if the organisation has presence in many places. Taking away a new market from a competitor will be a costly affair. Merger may provide this advantage. Surplus resource: To obtain additional mileage from an existing resource (be it funds, production capacity, marketing network, managerial talent) merger might offer good potential. Risk reduction: In order to reduce the risk of the shareholders of the companies involved, merger could be attempted. However, this motive has an in-built weakness in the argument. If the shareholder wants to reduce the risk of his portfolio, he can do so more efficiently as an individual.
Balancing product cycle: Combining with a complementary industry to compensate for the fluctuations in a product cycle might be a good strategy. If the main product is seasonal-say sugar-it will be beneficial to add another non-seasonal product, say ceramics, in the organisational fold. Arresting downward trend: If the trend in the industry is pointing a downward trend when projected for the next five years, it is prudent to take over the business belonging to a young and potential industry. Growth and diversification strategy: Many companies look for takeover or merger with a view to achieve growth, diversification and stability. Diversification implies to focus the attention on different unrelated business activities, which can successfully manage the product life cycles, brand images, trade cycles, change in economic policies, changes in consumer preferences, technological developments etc. Re-fashioning: Some companies resorted to merger as a strategy by entering into high profile business through acquisition route, by diversifying from traditional business activity to latest technology related businesses like information technology, print media.
If company A merges with company B, the value of merged entity called Company AB is expected to be greater than sum of the independent values of Company A and Company B.
Market Penetration: Traditionally a company might be catering to the middle-class and uppermiddle class segment. Introducing a product for other market segment will be easier by acquiring a company which has a good market share in the specified segment. Market Leadership: It is not uncommon for the leading player in a market to acquire the second or third player in the market to retain the market position. Merger may enable companies to avoid unhealthy competition in a situation where there are too many players aiming at a limited market. With the combined additional market share, a company can afford
Financial motives
The following financial motives may necessitate the merger activities:
Deployment of surplus funds:
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The cash rich companies always look around to takeover cash strapped companies with a view to deploy surplus funds in projects worth investing.
Revival of sick units: If a viable unit becomes sick, a healthy company may like to merge with it so as to reap the benefit of the hidden potentials of the sick unit. Asset stripping: If the market value of the shares is quoted below the true net worth of a company, it will be a target for acquisition. Undervaluation of Target Company: If the share price of Target Company is undervalued, the acquisition is justified. The efficiency of stock will bring in the equilibrium in share price over a period of time, after the acquisition. The acquirer will ultimately benefit from under pricing of current share value. Increasing EPS: If the bidding company has a lower EPS as compared to its target company, the bidder can increase its overall EPS proportionally more than it has, if the share exchange ratio is 1:1. The process of increase in EPS through acquisition is called boot-strapping.
The size of the combined enterprise satisfies the ego of the entrepreneurs and the senior managers.
Fund raising capacity The increase in fixed assets and current assets base will improve the fund raising capacity and more working capital finance can be sought from banks and financial institutions. The company can issue shares and other debt instruments to the public. Market capitalisation: The rise in income of the target company increases the earnings per share as well as market value of the share. This will result in increase of market capitalisation. Tax planning: The provisions of the corporate Income-tax might subsidise the merger activities and it may be possible to acquire a sick (with accumulated losses) but potential company economically. Creation of shareholder value: The merger transactions are resorted to create shareholder value and wealth by optimum utilisation of the resources of both companies. Operating economies: The combinations will affect savings in overheads and other operating costs and will help in increasing the profitability of the organisation. Tax benefits: A company which has accumulated losses and unabsorbed depreciation can carry forward and offset against future taxable profits and reduce tax liabilities in amalgamating company.
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Retention of managerial value: Human resources are considered essential and important. To assure growth to the senior management personnel in order to retain the management talent, it may be required to attempt merger. Removal of inefficient management: Merger is a quick remedy to replace inefficient management from an organisation which has, say, high product strength.
Review of existing literature:A general scanning of literature available in India from different published sources indicates that very few detailed studies, have been conducted in India in the field of mergers and acquisition, particularly in the area of post merger investment performance. However,many studies have been conducted abroad, particularly in the western developed countries. However, these are not very relevant in Indian context. More over, what ever literature is available, they mostly relate to traditional analysis of mergers and acquisitions in the corporate sector. Assuming that these studies have done relevance to the present study, they have been reviewed and included in the present article. The followings are some of the important empirical literature on mergers and acquisition conducted in the countries as well as abroad in the chronological order Weston and Mansingka (1980) studied the pre and post-merger performance
Organizational motives
Some of the organisational motives that cause merger are given below
Superior management: By combining together the managerial skills are also pooled together. This will enhance the stability and increase the growth rate of both the companies. Ego satisfaction: The money powers available with the top management of big corporate houses do prompt the managers to explore the possibilities of merger.
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of conglomerate firms, and found that their earnings rates significantly underperformed those in the control sample group, but after 10 years, there were no significant differences observed in performance between the two groups. Lubatkin (1983) concluded that Mergers and Acquisitions have not lived up to the expectations of the managers. More specifically, the research shows that the value of the acquiring firm does not benefit from an acquisition.Shrivastava (1986) found that one-third of all acquisition failures were because of integration problems.Chatterjee, Lubatkin, Schweiger & Weber (1992) suggests that cultural fit has a major effect on post-merger performance and that companies that allow multiculturalism and prevent too much control perform better than less permissive firms. Pawaskar examined the premerger and post-merger operating performance of 36 acquiring firms during the period 1992-95, using. Regression analysis. The study showed that there was increase in the post-merger profits compared to main competitors of the acquiring firms.Morck and Yeung (1992) studied 332 acquisitions by U.S. firms of foreign firms between 1978 and 1988. They found that the acquiring firms R&D intensity and advertising intensity, likely to characterize a differentiation strategy, were associated with positive changes in the acquiring firms valuation. Presumably, this effect would be heightened in cases where the target firms industry valued differentiation. Morosini (1998) said that the empirical evidence concerning the performance of cross-border Mergers and Acquisition, Joint Ventures and alliances so far presented suggests that, when handled effectively, a company can actually turn national cultural distance or initial deep-rooted
cultural resistances into lasting practical advantages. Brouthers, van Hastenburg, and Van Den Ven (1998) found that the managers of the acquiring firm were overwhelmingly satisfied with their acquisitions. Albert J. Viscio, John R. Harbison, Amy Asin and Richard P. Vitaro(1999) in their study Post-Merger Integration: What Makes Mergers Work?, concluded that no statistically significant factor could predict success or failure as defined by shareholder value creation relative to industry peers. The study found a high level of variability associated with potential returns. More startling, perhaps, the study produced the counterintuitive finding that purchase premium is not a predictor of success. Evelyn Bourke, Gillian Laidlaw and Ian Woods (2000) in their research titled Achieving Post-Merger Integration, undertook a study of predominately UK life insurance companies that had gone through some form of merger or acquisition during the past five years. They concluded that for the organisations most successful in achieving the anticipated benefits of the merger or acquisition had all placed a high value on project management and performance measurement. Hubbard (2001) in his work discusses four degrees of integration: total autonomy, restructuring followed by financial controls, integration of main systems, and full same time being responsive to the environmental changes. Harzing (2002), in a study of 287 subsidiaries belonging to 104 firms during 1995-1996, found that firms following a multidomestic strategy were more likely to use a cross-border acquisition than a greenfield entry. Oliver Wyman (2003) in his research, 2nd wave-post merger integration found that cost and improvement opportunities are often not fully realised during initial post-merger
integration efforts. Shimizu, Hitt, Vaidyanath, and Pisano (2004) reviewed 31 studies on crossborder mergers and acquisitions. They categorized these studies into three streams of research: crossborder Merger and acquisition as a mode of entry, cross-border Merger and acquisition as a dynamic learning process and finally as a value creating strategy. Duncan and Mtar (2006) examine in detail the successful acquisition of Ryder Transportation, located in the US, by FirstGroup, the United Kingdoms largest public transportation company. They found that the success of this cross-border deal was due to FirstGroups having ample previous acquisition experience, strategic fit between the two businesses, cultural fit, successful post-acquisition integration, and maintaining a focus on the core business. Grant Thornton (2006) found that Mergers & Acquisitions are a significant form of business strategy today for Indian Corporate.Benou, Gleason, and Madura (2007) in a recent and intriguing study found that high tech cross-border acquisitions do indeed create value if the deal has certain characteristics. Using a sample of 503 high-tech cross-border acquisitions, the authors found that the acquiring firm achieved positive valuation results when the target firm had high visibility as a result of media coverage and was approved of by a top investment bank. Colombo, Conca, Buongiorno, and Gnan(2007) study generated a very interested finding. They found that cross-border merger performance was strongly linked to the extent to which target firm assets were redeployed to the bidder. Hopkins, H Donald (2008) focussed on the importance of the cross- border merger and acquisition strategy and post merger integration.
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From an overview of the earlier studies carried out in India, it appears that, though quite a few studies have been conducted to address the issue of post-merger investment performance, not much attempt seems to have been made to examine the impact of merger on the logistic cost and share price movement with the NIFTY. It is for this reason that the present study is proposed to be undertaken.
Objectives of the study

The main objective of the study is to study the post-merger Investment performance of the merged entities
Research methodology
The sample population of the study consists of prominent Indian
companies which have undergone merger post liberalisation. For facilitating the study of the post merger investment performance of the companies, they have been divided into two groups viz. Group A consisting of Indian companies which have taken over a foreign company market index and Group B consisting of Indian Company which have merged with another Indian Company. The share price movements of these selected companies have been then compared with a major market index viz. S&P CNX NIFTY. The pre-merger and post-merger financial data of the companies has been collected from their websites. The stock price has been taken from the website of NSE.The books of different authors, research papers, newspapers, magazines and different websites have been consulted as a secondary source of information.
The researcher used the secondary data for the purpose of the present study. The sample population of the study consists of 20 prominent Indian companies which have acquired other companies post liberalisation. The sample has been divided into two groups. The period of the study is 9 year i.e. 2000-2009. The Indian political and economic scene witnessed market changes during this period. We have compared the data of financial years before and after the completion of merger. The data so collected is analyzed through the application of statistical techniques, using financial ratios viz. Price-Earnings Ratio (P/E Ratio) and various Profitability ratios, Leverage Ratios, Coverage Ratios and Pay out ratios. Table 1: Group A-An Indian company acquired a foreign company
S. No 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Acquirer Company Tata Steel HINDALCO ONGC Tata Motors Sterlite Suzlon GMR Tata Chemical Mahindra & Mahindra HCL
Acquired Company Corus Novelis Imperial Energy Jaguar, Landrover Asarco Re Power Intergen General Chemical,U.S. Jeco Holding, Schoneweiss Axon
Table 2: Group B-An Indian company merges with another Indian Company
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S.No 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Acquirer Company HDFC IDBI Bank RIL TECH MAHINDRA Mc Leod Russel India Oriental Bank of Commerce Jet Airways United Breweries Bank of Baroda ICICI
Acquired Company Centurion Bank of Punjab IDBI RPL SATYAM COMPUTERS Williamson Tea India Global Trust Bank Air Sahara Shaw Wallace South Gujrat Local Area Bank Bank of Madura
Table 3: Conclusion Table I-Master table showing company wise performance post the merger S. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19 20. Name of The Company Tata Steel Hindalco ONGC Tata Motors Sterlite Suzlon Energy GMR Infra Tata Chemical Mahindra & Mahindra HCL HDFC IDBI Bank Reliance Industries Mc Leod OBC Jet Airways Bank of Baroda ICICI Bank United Breweries Tech Mahindra Stock Price Movement Positive Positive Positive Positive Positive Negative Negative Positive Positive Positive Positive Positive Negative Positive Positive Positive Positive Positive NA Supply Chain Performance Material Cost Negative Negative Negative Negative Positive * Negative Negative Negative Positive Negative Positive Negative NA Selling Cost Positive Negative Positive Negative Negative * Negative Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Negative NA
*Data Not Available Table 4: Conclusion Table II-Master table showing company wise performance post the merger
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S. No.
Name of the company Tata Steel Hindal co. ONGC Tata Motor Sterlite Suzlon Energy GMR Infra Tata Chemical Mahindra & Mahindra HCL HDFC IDBI Bank Reliance Industries Mc Leod OBC Jet Airways Bank of Baroda ICICI Bank United Breweries Tech Mahindra
Reported Earning per share Negative Negative Negative Negative Positive * Positive Negative Negative
Dividend per share
Gross profit margin Negative Negative Negative Negative Positive * Negative Negative Negative
Net profit margin Negative Negative Negative Negative Positive * Negative Negative Negative
Debt to equity ratio Positive Negative Positive Positive Negative * Negative Negative Positive
Current ratio
Dividend payout ratio Positive Positive Positive Positive Negative * Positive Positive Positive
Financial charges coverage ratio Negative Negative Negative Negative Positive * Negative Negative Negative
1. 2. 3. 4. 5. 6. 7. 8. 9.
Positive Negative Negative Negative Negative * Positive Negative
Negative Positive Positive Negative Positive * Negative Positive Negative
10. 11. 12. 13. 14. 15. 16. 17. 18. 19 20.
Negative Positive Positive Positive Positive Positive Negative Positive Positive Negative NA
Negative Positive Positive Positive Positive Positive Negative Positive Positive Positive NA
Negative Negative Negative Negative Positive Negative Negative Positive Negative Negative NA
Negative Negative Negative Negative Positive Negative Negative Positive Negative Positive NA
Negative Positive Positive Positive Negative Positive Positive Positive Negative Negative NA
Negative Positive Positive Negative Negative Negative Positive Negative Positive Positive NA
Negative Positive Positive Positive Positive Positive Negative Negative Positive Positive NA
Negative Positive Negative Negative Positive Negative Negative Positive Negative Positive NA
*Data Not Available Table 5: Conclusion Table III-Summarised performance of the merged companies
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S. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20.
Name of the Company Tata Steel Hindalco ONGC Tata Motors Sterlite Suzlon GMR Tata Chemical Mahindra & Mahindra HCL HDFC IDBI Bank RIL Tech Mahindra Mc Leod Russel India Oriental Bank of Commerce Jet Airways Bank of Baroda ICICI United Breweries
Overall Rating 5/11 3/11 5/11 3/11 7/11 * 2/10 5/11 4/11 3/11 8/10 7/10 5/11 NA 9/11 6/10 3/9 8/10 6/10 6/11 f.
18 companies) have shown favourable Current ratio Post the merger. 15 out of the 18 companies have improvised their Dividend Payout ratio i.e. more than 80% success rate.
g. Only 5 of the 18 companies have shown a decline in their financial charges post the merger. The obvious reason for this is the huge financial expenditure when a merger takes place. Out of these 18 companies only 8 companies have shown a successful post merger performance (see Conclusion Table-III). Thus we see that Mergers have not exactly lived up to the hype and expectations around them.
Findings of the Study

After analyzing the data the researcher can conclude that: Share price movements have been favourable for almost every company after the merger (see Conclusion Table I). The possible reasons for the same can be the media and industry hype created around them along with the increase in investors faith in the merged companies. However, performance on basis of material cost has been grim. Selling cost performance has shown encouraging results. This shows an overall success rate of only 45%. A closer look at Table II reveals the following points: a. 50% companies (9 out of 18 companies) have shown favorable Reported EPS Post the merger.
Limitations of the Study

Data was not available for one company (Suzlon Energy) while in case of the second company (Tech Mahindra) no analysis could be done as the merger took place on 13th April, 2009 and the data for financial year 2009-10 is yet to be released. It is still too early to comment on the success/failure of the merger of GMR with Integration as it took place only in the last financial year and not much data is available to us, to arrive at a conclusion. Further research is required in the area of post merger supply chain performance as most of the studies till date have focussed only on the financial performance of the sample companies.
b. 10 out of the 18 companies have been able to increase the dividend per share after the merger. c. Only 3 companies out of the 18 for which data is available have shown an increase in Gross Profit margin while only 4 companies have shown increase in Net Profit margin.
d. 10 out of the 18 companies have been able to improve their Debt-Equity ratio after the merger. e. 50% companies (9 out of
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References
1. Lubatkin, M., (1983): Mergers
and Performance of the Acquiring Firm, Academy of Management Review, Vol. 8, No. 2, April, pp 218-225 Ruback R. S., (1992): Does Corporate Performance Improve After Mergers?, Journal of Financial Economics, Vol 31, pp 135- 175
7. Timothy A. Kruse, Hun Y.
2. HealyP.M., Palepu K. G., and
Park, Kwangwoo Park, and Kazunori Suzuki, (2003): Longterm Performance following Mergers of Japanese Companies: The Effect of Diversification and Affiliation, presented at American Finance Association meetings in Washington D.C, pp 1-40 Abstract, A study of corporate takeovers in India, submitted to University of Delhi, pp 1-11 understanding the merger wave in the Indian corporate sector a comparative perspective, working paper 355, February, CDS, Trivandrum, pp 1-44
Websites
14. http://www.answers.com/ 15. http://www.bseindia.com/ 16. http://www.eurojournals.com/ 17. http:// www.encyclopedia.com/ 18. http://www.mcx.com/ 19. http:// www.accenture.com/ 20. http://www.nsdl.com/ 21. http://www.nseindia.com/ 22. http://www.sebi.gov.in/ 23. http://www.ssrn.com/ 24. http://www.
internationalbusinessreport.com/ com/
8. Kaur Surjit (2002): PhD Thesis
3. Ghosh,
A., (2001): Does operating performance really improve following corporate acquisitions? Journal of Corporate Finance 7 pp 151-178. J.F., and S.K. Mansinghka, (1971): Tests of the Efficiency Performance of Conglomerate Firms, Journal of Finance, September, pp 919-936 Martynova, Sjoerd Oosting and Luc Renneboog, (2007): The long-term operating performance of European Acquisitions, International Mergers and Acquisitions Activity since 1990: Quantitative Analysis and Recent Research, G. Gregoriou and L. Renneboog (eds.), Massachusetts: Elsevier, pp 1-40. Doi (1983): The Performances of Merging Firms in Japanese Manufacturing Industry: 196475, The Journal of Industrial Economics, Vol. 31, No. 3, March, pp 257-266.
9. Beena P. L, (2004): Towards
4. Weston,
10. Pawaskar V. (2001): Effect
5. Marina
of Mergers on Corporate Performance in India, Vikalpa, Vol.26, No.1, January March, pp 19-32 Exploratory Study of Strategic Acquisition Factors Relating to Performance, Strategic Management Journal, Vol 6, pp 151-69. Mergers Miscarry, Harvard Business Review, Vol 45, pp 84101.
25. http://www.accessmylibrary. 26. http:// www.
11. Kusewitt John B, (1985): An
thehindubusinessline.com
12. John, Kitching (1967): Why Do
6. Katsuhiko Ikeda and Noriyuki
13. Agrawal, Anup and Jeffrey Jaffe,
The Post-merger Performance Puzzle, Advances in Mergers and Acquisitions, vol. 1, Elsevier, Amsterdam, Netherlands (2000), 7-41.
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Aligning Business Ethics to Corporate Competencies

Dr. Tanu Kashyap, IMS, NOIDA From time immemorial Indian believe in welfare state. Our ancient Indian history is full of illustrations of the benevolent kings like Vikramaditya, Asoka, Harshvardhan to name a few. There are ample examples of such kings who worked for the betterment of the masses as their children Business Ethics
Ethics and morality runs deep in the psyche of Indian minds. We are a race who had ethics in warfare and battles. There are description in our epics both in Ramayana and Mahabharata where the battle used to halt at sunset and the martyrs of either party were given due last rites. There used to be an unwritten ethical code that women and children will not be harmed. Similarly business ethics also has a deep base. The Sahukaras were not the blood suckers of the poor & down trodden. They did not mint money by rolling sub standard material commodity. There are various anecdotes spread over in a number of ancient Indian literatures that the King used to make his policies in consultations with the Khands or Guilds. These Guilds worked for the betterment of society. If we contrast this with our modern and contemporary would - we wsill find that we are not even quarters ethical as our predecessors. We study corporate management or business ethics but in reality we fall short of the yardstick of business ethics. The word Ethics has its origin in Greek word Ethos, it means character, norms, morals and ideals prevailing in a group and society Ethics may be referred to as standardized form of conduct or behavior, of an individual understood and accepted in a particular field. Ethics is a mass of moral principles or sets of values, about what conduct ought to be. They give us an idea what is right or wrong, true or false. It a world of competition, corruption, favouritism and nepotism in business government, politics and society are major by product of degradation of values and ethics. But at the same time there are excellent businesses organizations which are driven by value - based conduct and have demonstrated economic growth, profits and reputation of integrity. Leadership in these organizations has been successful in inculcating personal values and imparts business ethics to the organization. It is however ironical that we put on record that business ethics has come to our country barely a decade ago after the United States of America. But if we evaluate our contemporary scenario, we will find that there are three major concepts which have formulated the ethical thought process (a) Corporate Social Responsibility It has its origin in USA and government passed Anti trust act against monopolist practices so as to protect and prove the welfare of the state. (b) Business Ethics - which highlighted social values & societys concerns in the 1970s and forced corporate in USA to abstain in their policies which related consumer protection and environmental protection (c) Corporate governance Commenced in UK for improved accountability of directors to shareholders, need for more transparent auditing and increasingly responsibilities of independent directors, division or roles of chairman and managing directors for safeguarding interests of shareholders. Globally, Business Houses are working more closely together to establish standards of acceptable behavior. We are already seeing collaborated efforts by a range of organizations to establish goals and mandate minimum levels of ethical behaviors from the European Union, the North American Free Trade Agreement (NAFTA), the common Market of Southern Concern (MERCOSUR) and the World Trade Organization (WTO) to more recently, the council on Economic Priorities Social Accountability 8000 (SA 8000), the Ethical Trading Indenture and the US Appraisal Industry Partnership. Some companies will not do business with organizations that do not support and abide by their standards. The development
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of global codes of ethics such as the Crux Round Table highlights common ethical concerns for global forms. The Crux Round Table is a group of businesses, political leaders and concerned interest groups that design responsible behavior in the global community.
Conceptual Model Business Ethics
for
Madson in his book, Essentials of Business Ethics explains business ethics can broadly be divided into separate areas of business ethics
Managerial mischief that concerns illegal acts and unethical practices of managers, its causes and remedial measures to eradicate such practices. We can take the examples of (a) Fraud, kick backs, bribery, illegal disposal of hazardous material (b) Dumping of pesticides, which are banned in USA exported to other countries, by providing money or sexual favour to the buyers. The causes of such misconduct are individual monitory gain to commit illegalities and organizational pressure to succeed. We can say that desire to succeed at any cost leads to managerial mischief. Moral Problem can be classified in two categories micro level problems and macro level problems. Micro level problem deals with individual front line managers, while dealing in (a) Fairness in performance appraisal (b) Confidentiality of the company (c) Accepting gifts (d) Confronting expense accounting cheating (e) Handling the problems of the employees impartially.
The ethics begins with the individual and if the individual is truthful in his personal dealings then only one can expect him to resort to morality in the corporate competencies. Every worker is important to the company because each one is discharging his duties to the best of his ability. Managerial effectiveness cannot take place if the manager does not display ethical code of conduct. Macro level problems deal with top management. The classic examples in this category are (a) corporate social responsibility which enables the company to play a constructive role in upliftment of the society and to give back the society a conducive environment.(b) Laying ethical standards or code of conduct for the company personnel. If micro level of implementation of ethics is important for managerial effectiveness then macro level morality is paramount in leadership effectiveness. If a company wishes to earn good will of the society then following the path of morality and ethics is necessity of the hour. The benefits of business ethics are many folds. Knowledge of business ethics will help managers in highly responsible tone for the organization in individual judgments and decisions. It will provide conscientious managers with morally responsible approach to business. It helps managers to realize their social responsibility. Many organizations find it wise to go beyond their primary mission and take into account needs of the community. The study of business ethics inculcates high level of integrity in managers. In view of the aforesaid benefits, majority of business management institute
have a separate course on business ethics in India. Business ethics improve the skills of managers both in analyzing resolving moral dilemmas. The corporate world has realized that business cannot do without ethics and sound ethics pay off in the long run. 2Azim Premji, while referring to the growth of his business from 5 crores to Rs. 3,500 crores said that everything in Wipro has undergone changes except values and integrity He cautioned the emerging breed of entrepreneurs and business managers to desist from temptations of shortcuts and deadfall gains No wonder the emphasis on business ethics has an impact on the society. It helps maintain a moral cause in turbulent times. It also cultivates strong teamwork and productivity. Carrolls have four-part social responsibility model which clarifies distinction in various responsibilities economic, legal ethical and discretionary responsibity. Carrolls four-part model :
1. The model suggests that
business is basically an economic entity and primary responsibility in economic produce goods and services that society wants and the company sells them at profit. basic necessity and the firm must operate within the law of the land whether it is this country or overseas.
2. Legal responsibilities are also
3. Ethical responsibility refers to
the behavior by the firm that is expected by the society but not codified in a law for example, the passage of foreign corrupt Packets Act in 1977, it was not
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illegal in USA to bribe foreign nationals.
4. Discretionary Responsibility
is purely voluntary obligation that organization assumes eg providing philanthropic contribution to institution. Discretionary responsibility of today may become responsibility of tomorrow. Daycare facilities for children are moving from discretionary to an ethical responsibility.
In Hindu religion - values express wealth of character (divine nature) or dharma (Indian ethos) and ideas of integrity. Integrity in our scriptures is:-
1. Wholeness means soundness,

total perfection completeness and
2. Goodness covers value of

honesty morality, kindness fairness truthfulness and generosity. in the face of danger
There is no guarantee that a big corporate house will never witness of any sort if that happens then a company that has accumulated an enormous goodwill stands a better chance of coming out the crisis. The path of business ethics may be tough but it promises to see the company through in rough weather. Human values enhance reputation, goodwill and image of the organization. Good will and image building will take years of hard work but it will take no time in getting tarnished. The recent example is of Mr Ramalinga Rajus Satyam. The fraud was unearthed on Dec the 19th 20 08 when World Bank used a Statement confirming that it declared Satyam ineligible to resource direct contracts under its corporate procedure programme. It gave a major blow to booming Indian IT industry. Satyam and Maytas became synonyms of blemish and mistrust of millions of shareholders worldwide. Unethical means of accumulation of wealth proved fatal for the corporate across the globe There is no short cut in image building, Such practices may seem attractive and ways to mint easy money but may leave stigma for the corporate and eclipse the life span of a promising industry. There are live examples in Indian corporate which did not succumb to the alluring world of unethical dimensions but instead they restored to the thorny path of ethics and in the end they emerged as the winners in the end. They continue to enjoy the trust and faith of billions of customers world over. Tata Groups of Industries was not growing the rate they would want to but they did not follow the footsteps of Satyam and after a brief spell of loss; they are again registering profits. Ethics is all about clear consciousness
The need of the hour is value based managerial leadership. Satya Sai Baba saysSome say knowledge is power, other say, the above is not true. Character is power and wealth. Character is based on divine values. Divine values are based on wisdom Effectiveness in performance of managers and employees is a function of values and skills together. A good manager has both. There is a chart through which we can understand the role of values and ethos in managers. //// Every effort is to be made by top management to inculcate values. Values relate to internal domain of business, i.e. Interaction with employees, customers suppliers, creditors. Success of Japan is based on values, using spiritual education and practices e.g.- concentration, meditation, mind stilling exercises etc to neutralize evil effects of industrializing and to synthesize the human values into management organization. Japan has combined spiritualism and materialism and adopted value driven hotter approach in management and organization.
3. Courage telling the truth even 4. Self-discipline

self control following rules norm. inner mind to remain your self incorruptible clean from kickbacks
5. Living by inner trust and
In ancient scriptures Dharma is described to be ways of life (lawfulness or righteousness) and good conduct that shapes character, which beings happiness to self and others. Dharma is almost synonymous with integrity. It also includes
1. Spiritualism (divine spirit to

do right do good, be good) right action)
2. Righteousness
(godliness
3. Fearlessness (due to this

protection to you In nutshell a human value are essential to help in self development in helps in good interpersonal relations and reduces conflicts. If we apply the pragmatic value of business ethics in corporate competencies we will analyze that it not only enhances their long term goodwill but stands the company in good stead.
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and truth. Money matters to the growth of the company but ethics matters for the longevity of the company after all establishing a conopany is not the childs play. It takes a whole lot of effort, hard work, sweat and blood, sincere efforts. Loads of goodwill and endless faith of the costumers prepares the foundation for a company to start and to sustain that faith over the years is the most difficult phase for any company. Tough times do not continue forever but tough companies do and the vision of a still minded leader sees the company grow and ensures the success of the company and becomes the leader of the corporate fraternity. The others follow the suit and follow the path shown by the visionary leadership who believes in the
inherent virtues of ethics and demonstrates faith in time tested formulae of righteousness because money matters to them but as it is said that money cannot always buy goodwill and trust of billions of customers. It is easy to be successful but sustaining that success is demanding and attests for the leadership effectiveness. There is definitely an aligning of ethical approach to the completive corporate competencies. References
3. Sorab Sadri, Business Ethics,

McGraw Hills
4. Nan Demars, You want to do

what Simon and Schuster, USA. with a heart.
5. G. Anjaneya, Organization 6. Bardara Key Toffless Though

Choices Managers Talk Ethics
7. Carter McNamara, Complete

guide to Ethics Management St. Paul, Minesota, USA.
1. Joseph H. Boyelt and Jenmies J
Boyelth The Gura Guide to the knowledge economy 2001, USA, business ethics.
2. Peter Ponatley. The essence of
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A Research Paper on Traditional to Contemporary Management Practices

Shruti Gadia (Academics Head) Mumbai School of Business, Surat Anjumara Shaikh (Placement Executive) Mumbai School of Business, Surat Introduction
Considering changes in the economic growth, technological advancements, increase of competition, shift in consumers taste and preferences, government interference, imposition of heavy tax burden, and many more to name, major dilemma nowadays within each and every organization is whether to continue with the conventional management style or to adopt the new or modern management approach to sustain and compete against their rivals. Each and every organization has two major options: either to sustain with its Traditional Management Style or to adopt the new Modern Management Style. by Command and Conquer Management Style. Where managers relying on this approach are least apprehensive about the welfare and up gradation of their employees. Sometimes managers try to reach out for their employees but fail to touch the heart or even get the employees sympathy. Managers using the traditional style, majorly focus on the end results. They want to achieve that by hook or crook ignoring their employees wellbeing. The major pitfall of this style is that the employees are afraid of the top authority rather respecting them which in turn results to low efficiency, poor productivity and reliable unmotivated, undependable employees working around you. adopting the new management changes are restructuring their internal processes and management approaches around rapidly changing information and technology. This shift is favoring matrix organizational structures with fewer layers of management over the old inflexible multi layered vertical hierarchical organizations. The new management philosophy is also embracing innovation as a key ingredient of success and increased competitiveness. This entails developing the creative potential of the organization by promoting new ideas, harnessing peoples creativity and enthusiasm, tapping the innovative potential of the employees and encouraging the proliferation of autonomy and entrepreneurship. People are treated as the natural resource and capital asset of the organization and the most important source of sustainable competitive advantage. Traditional Management V/S Contemporary Management Style Traditional Management Style Contemporary Management Style The primary focus of management is to reduce direct cost of production. It mainly focuses on reducing indirect cost of the enterprise while improving competitiveness. Here employees are just a means of production. Whereas here the employees are treated as an asset of the company.
Traditional management
Traditional management paradigm was characterized by its inward focus with special attention devoted to cutting cost complying with rules and regulations respecting hierarchy and dividing labor into simple specialized jobs. It was narrowly focused on promotion production efficiency and combating ways. This was generally associated with a mechanistic orientation to structural design, emphasizing high specialization, rigid departmentalization, and clear chain of command, narrow spans of control, centralization and high formalization. Traditional management paradigm can even be characterized
Contemporary Management
Management in the 21st Century has accordingly taken a new direction. It emphasized on the ability to cope with constant change and not stability, focus on networks and not hierarchies, built on shifting partnerships and alliances and not self sufficiency and finally believes in technological advances and not bricks and mortars. New organizations are networks of intricately woven webs that are based on virtual integration rather than vertical integration, interdependence rather than independence, and mass customization rather than mass production. Organizations
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The operations of an enterprise characterized and analyzed as stable. Flexible and agile operations and continuous improvements. Managers are regarded as decision makers and labor as passive followers of instructions. Managers are regarded as facilitators and labors as knowledge workers / intellectual capital. World market divided on a national basis, with national firms dominant in domestic market. Global world markets and greater attention to international economic and political structures. employees and the employer. This argument has been elaborated with the example of BATA Footwears Private Limited where employing new modern management practices have become a regular practice. Therefore in this current scenario it is quite important for a company to study the need of adopting the modern management style or continue with the traditional one. BATA Shoe Organization was established on August 24, 1894 in Zin, Czechoslovakia by Thomas Bata, and included his brother Antonin and sister Anna. Although this business was new, the BATA name had been part of a tradition of shoe making for 8 generations, spanning 300 years. It was one of the first modern day shoe manufacturers, a team of snitchers and shoemakers creating footwear not just for the local town, but also for the distant retail merchants. The BATA enterprise revolutionalized the treatment of employees and labor conditions. Thomas consistently maintained a human focus, creating opportunities for development and advancement, and added compensation for employees based on achievements. By 1905, Thomas had taken a new enterprise to 2200 pairs of shoes per day, produced by 250 employees utilizing resourceful imaginations, skilled hands and modern machinery to keep up with demand. Under this manufacturing system productivity was greater than even before. BATA shoes were excellent quality and available in more styles than had been offered before. Demand grew rapidly in the early 1900s. Despite material and man power shortages, Cartel and outbreak of World War 1 the company received a contract to produce boots for the Hungarian Army. From the waste of these items, company produce shoes which can be sold to the lower classes. From the profits earned, it was inc\vested in new machinery as well as in opening of new retail shops. So as to make a strong position and take the advantage of economic growth. At the end of World War 1, there was a big economic slump across the globe which led to significant unemployment.
Objectives
Keeping the Traditional and Contemporary Management Styles in mind, following are the major objectives of this study.
Research Methodology Problem of the Study

Lack of new initiatives by the managers of the organization is the hallmark in todays scenario. Issues of adopting to new practices by the management has led to obstructing the organizational development, specifically in cases of the market place where competition is increasing at a huge pace in various sectors like retailing, BPOs, entertainment industry, insurance, etc. Therefore it has been a humble effort to find out whether following innovative approaches to management leads to an obstacle in organizations growth or still a company can survive in a successful manner following the old traditional approach.
Whether to continue with the Traditional Approach or to adopt the Contemporary Management Style. The best style for an organization to sustain among the competitors. Effective management style with respect to total customer satisfaction.
Research Design
To achieve the foregoing objective an Empirical research including a Case Study has been adopted wherein the different strategies adopted by BATA Footwears Private Limited has been analyzed.
Source of Data
Secondary Data; Journal, Articles of newspaper, Magazine, Books and Websites.
Relevance of study
This study is significant given the competitive environment in which organizations are working day hard and night to survive in the market and occupy a greater market share. This study is more appropriate in the booming sectors such as retail, telecom, hospitality, footwear industries and many more to name where adoption of conventional practices of management is more visual by the
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Appropriateness of Traditional or Modern Management Stlye With The Help of An Example Bata Footwears History of BATA
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Due to devaluation in currency there was a drop in demand for product, cut back in productions, heavy unemployment, newer technological advancements, etc. Despite of all these pitfalls, Tomas BATA did not throw up his hands in spite he shocked everyone by announcing a price cut to half in BATA shoes. BATA convinced his workers to cut cost of the shoes and work at peak efficiency in order to halve the price of the shoes. Workers ignored their union leadership and accepted a 40% reduction in wages. BATA included individual profit centers and incentive payments to both management and workers to spur productivity. The company launched a national advertisement campaign which led to heavy customers demand for inexpensive shoes which in turn forced the company to increase production. This not increased the workers productivity but also led to new hiring of employees. Tomas BATA continued to innovate and improve on productivity through the introduction of an assembly line approach. The employees faith in Tomas BATA was also a reward for the company as well as for the employees. The employees were rewarded by having their salaries doubled and also had a feeling of working for the largest shoe maker in the world. BATA established operation is new markets, such as Singapore in 1930. The company, which in 1931 adopted a joint stock company form, also established subsidiary and shoe factories in many European countries. dynamics the competitors had started eating BATAs share and undercutting BATAs prices. Thus BATA was thinking of shifting its focus towards higher premium end of the market. profit affected due to increased in input cost.
Company has been in existence for more than 7 decades. Thus faces a challenge in switching to new product technology. Sales and distribution cost also increased because most of the shops are owned by company itself and staff employee High value added footwears did not find acceptance in the market which led to a drop in sales volume. Because of which the company was forced to sell 2 million shoes at a discount of 50 % at a loss of 41 crore. Conflict of management with Majdoor Union was a major weakness of the company With the evolving market and changing trends BATA had a tough time competing with its local competitors and Chinese imports. Due to this, company decided to enter the premium segment of the market where they could survive because they felt that the Chinese products could never enter the premium segments.
Behavior of the Customers

BATAs target customers were highly price sensitive, demanding value for money, looking for utilitarian needs to be met, not conscious about shoe lasting for ages. BATA was regarded as a store where usually entire families visit together because of the companys various offerings.
Strategies Adopted by Bata
BATA has segmented its retail outlet into discount outlets and higher and once. Company aimed at better products, fatter margin, reengineering collection by doubling the design teams, refreshing range regularly and outsourcing parts to improve margins Using the cash flowing from higher margins to expand large format stores. Company believed in Logistics and demand based production Focusing on collection of old outstanding dues. Training the front line sales force.
Strategies Used by Bata to Overcome the Tribulations

BATA was always been considered as a manufacturing oriented company which concentrated on producing footwear and sell them in the market. Now a new challenge in front of BATA was to change its image of production oriented compact to affordable, market driven, fashion conscious, lifestyle brand. Thus BATA wanted to reposition its brand.
Target Customers
Traditionally BATA had targeted the middle strata of the society. Precisely, they focused more on the lower middle and middle classes. But due to changing market
Major Problems Faced by Bata
Due to increase in cost of raw material sale went up by 21 crore, at the same time cost increased by 68 crore. So the
The company adopted restructuring measures to improve distribution logistics, reduced cost, strengthening its merchandise, and marketing
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along with launching new products. in the Contemporary style the performance appraisal is done on a 360 degree basis.
The main strategy continuous innovation
was
Revamping its stores; more store space, closing unviable stores and reaching out rural markets through dealer networks. Entering newer and newer segments contemporary range, men, ladies, sports, children, family as a whole, industrial sector like defense, automobile, petroleum, construction, agriculture, metal, etc. BATA also entered the franchisee format to unveil large format stores. Company also introduced a new range of sport shoes which was highly compatible to branded sport shoes. BATA also tried to win its employees trust to bring an end to the Majdoor Union system.
The Traditional style is bit conservative as here the employees fear to talk and share their ideas with their managers which is a loss for the company as new ideas are not generated whereas the modern style follows an open work culture where employees feels themselves as an asset for the organization. Traditional style seems to be stagnant in nature whereas the Modern approach is ongoing or flexible in nature.
By the joint efforts of the employees and the Company, its operations were widely spread among different nations of the World. Customers play a major role in the success or downfall of any organization and at the same time customer satisfaction occupies an important role for a company. Thus to fulfill customers demand, BATA expanded itself with the new retail and discount formats. Company believed in outsourcing so as to maintain the opportunity costs. Front line staff training had been incorporated as a part of sustaining among the competitors. Initially the company faced the problem of increased in sales and distribution costs because of one man show, but after realizing this drawback, it switched over to franchisee options. BATA footwears were always known for its longevity, but after apprehending the customers tastes and preferences, company decided to enter the stylish shoes segment.
From the view point of the Example: BATA
BATA mutinized the condition of its labors by including new compensation structure based on their performance. In 1905, in order to fulfill the customers demand more effectively and sustain in the tough competition, BATA switched over to modern technologies. To make the employees feel themselves as a part and parcel of the organization, BATA focused more on welcoming employees innovative ideas and putting the same into action so as to achieve the effective results. After the World War I, BATA encouraged and motivated its employees for a price cut in the shoes manufactured, reduction in the wages of the labors, which led to an aggression among the Union leaders but by the hard efforts of BATA and the unity among the employees, the system of Union Leadership system came to an end thereby accepting the demands of the company.
Findings
From the view point of the Topic:
In Traditional Style, a system of delegation of legitimate power through written authority is followed whereas power is central to a managers ability to act in Contemporary Style. In Traditional Style, the managers opt to work in their own department and tasks assigned to them, whereas in the Modern approach suggests to streamline various operations into one and achieve the target as a whole. In the Traditional Style the employees performance appraisal is done according to a pre designed format whereas
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Conclusion
A major contribution of this study is the provision of an approach for the management of the organizations to assess the awareness of contemporary management practices and measure their perceived importance. To understand this more precisely we have taken BATA as an example to see the factors which forced the organization to shift towards the contemporary management style. Every organization is in a dilemma whether to choose the
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traditional management style or the contemporary one. But every organization must keep many factors like: customers tastes and preferences, competition, changing trends, technology up gradation, etc in mind while choosing any of the style. From the study we can conclude that the Traditional style is narrow in approach where the employees are not treated as a part of the organization and are just a means of production whereas the Contemporary style is broad in nature where the employees are treated as an asset for the organization. In todays rapid moving scenario organizations going with the Contemporary approach are able to beat the competition in a more effective manner.
References
Books Referred:
4. Fleet David Van and Peterson
Tim O. (1994), Contemporary Management, Houghton Muflin Company, Third Edition. to traditional management theory, foresight, Vol. 6 Iss: 6, pp.338 - 348
1. C.R Kothari (2005), Research
Design, Research Methodology, Pg. 34 36.
5. Ed Weymes, (2004) A challenge
Websites Visited:
1. Adam
Smiths Contribution, Henry Fayol, Maro Weber (2001), Contemporary Management Practices, Human Relations Movement. Changing Role of Management Entrepreneurial Organization, October 15th, part 3. v/s Modern October 13. Management,
Articles Referred:
1. Times of India, Bata trying to

reposition its image, June 6, 2003. Choices.
2. (2009),
2. Business Strategy Bata: Strategic
3. Emar Mabasa (2009), Traditional
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Economic Meltdown, the time for strengthening SMEs through Liberal and Timely Bank Advances
K. Prabhakar Rajkumar (Lecturer) Periyar University, Salem 11, Tamil Nadu
Now, the Indian economy is passing through a crisis or testing time, in the wake of World Economic Recession. At this time of global economic slowdown, the country cannot underestimate or belittle the importance and role of Small and Medium Enterprises (SMEs) in its efforts to safeguard the economy from the ill-effects of the crisis. The big industries and services sectors of the country are facing the adverse impact of recession leading to loss of foreign markets, unemployment and fall in domestic consumption and hence a temporary recourse may be found in the SMEs for the promotion of national interest and safeguarding the national goals of development. Actually the country is experiencing the damage caused to its economy by the onslaught of the world economic crisis. According to the official data released by the Commerce Ministry, the slowdown and recession in the US and the Year European Union has led to a fall of 27.7 per cent in exports for the ninth month in a row in June 2009. The official data states further that during the month of June 2009, imports of the country dropped by 29.3 per cent, reflecting slowdown in the domestic consumption. But our Finance Minister and other ministers heading the economic ministries have expressed their confidence that the Indian economy will be able to withstand the adverse effects of world economic recession. But the truth is that the world economic slowdown has affected our economy to a considerable extent. As big industries and services sectors have slowed down their activities, our SMEs can be expected and asked to play their role in a big way so that the country will be able to maintain the targeted 8 per cent economic growth. Table -1 Growth of Small Scale Sector (Units in lakhs) % of growth compared to previous year 4.07 4.07 4.07 4.07 4.07 4.07 4.07 4.07 4.08 For the overall economic development of a nation, industrial growth, particularly development of SMEs is an important factor, because, the contribution of SMEs is more for the prosperity of the nation through job creation and economic growth. In India, SMEs play a vital role in the economic development of the country. In overall industrial output and export, small industries have contributed to 40 and 45 per cent respectively and have accounted for 35 per cent of indirect export and manufacturing over 8000 value-added products. In India, nearly 3 million SMEs are there and 28.28 million people are employed in them. Even though, the SMEs are experiencing various barriers, the non-availability of timely finance from bankers is pointed out as the main bottleneck to the growth of SMEs. Borrowing loan from the banks is much more difficult for SMEs but on a reverse side it is much easier for big companies Like MNCs, said Ashok Lav, Managing Director of Aster Softtech India during a conversation with SME Times. Borrowing loan will become much more difficult for the SMEs with the augmentative interest rates said Sanjay Nayar, Chief Executive Officer, Citi India. He justified the current trend in his interview to the business daily Business Standard, Its a difficult time for banks both at home and abroad. However, he acknowledged that SMEs will not be able to borrow at current high interest rates. The poor historical performance of SMEs loan portfolio has created the risk perception to a great extent among the bankers. Banks are much more hooked up to support the SMEs, with all the
Total SSI
1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
97.15 101.1 105.21 109.49 113.95 118.59 123.42 128.44 133.68
Source: Economic Survey, Annual Report 2008-09
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banking facilities; especially public sector banks are more aggressive in lending a helping hand to SMEs and SSIs. The PSU banks in December-2007 advanced a total of Rs 46,144 crore, of which Rs 6,536 (around 14%) went to the SMEs. On the other hand, the private banks total advances in December-2007 was Rs 26,874 crore, of which, just Rs 923 crore went to the SMEs. This accounts for a mere 3.45% of the total advances. Table -2 Production of Small Scale Industries in India (At current price and constant price) (Rs.Crore) Year 1990-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Production (current price) 233760 261297 282270 314850 364547 429796 497886 585112 695126 Avg. growth rate (constant price) 11.07 11.78 8.03 11.54 15.78 17.90 15.83 17.53 18.80 Production (Current price) 170379.2 184401.4 195613 306771 336344 372938 418884 471663 532979 Avg. growth rate (constant price) 8.16 8.23 6.06 8.68 9.64 10.88 12.32 12.60 13.00
Source: Economic Survey, Annual Report 2008-09 During the period from 1992 to 1996, loan to SMEs sector reduced from 13 per cent to 11 per cent of total credit provided by bankers. It further reduced to 8 per cent, 6 per cent and 5 per cent, during 2000, 2003 and 2004 respectively. During 2005 the loan disbursement to the SMEs sector was at 5 per cent and it reduced to 4 per cent during 2006. During 2007, out of total credit provided by the banks merely 4 per cent went to SMEs sector. The SMEs share in non-food credit declined from 15.1 per cent in end March 1991 to 6.5 per cent in 2007. SMEs credits in the form of advances to priority sector reduced to 17.9 per cent on 31 March 2006 as compared to 43.6 per cent on 31 March 1998. But the loan under the heads housing, personal, credit cards and consumer durables increased to 22.3 per cent of total credit in 2007 as against 6.4 per cent in 1990. According to CRISIL rating, as on March 2008, the bad debts of the Indian Banks were Rs 55 thousand crore, out of which 56 per cent was of corporate sector and SMEs share was only 10 per cent. During 2011, the debt figure is expected to double, says Mr. Tarun Pattia, Director, Finance Department, CRISIL. Table 3 Generation of Employment opportunities in SSI (Lakh person) Year 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Employment 229.10 238.73 249.33 260.21 271.42 282.57 299.85 312.52 322.28 % of growth 3.88 4.21 4.44 4.36 4.31 4.11 4.44 4.23 3.12
Source: Directorate of Industries and Commerce, Chennai.
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Table -4 Export performance of SSI (Rs.Crore) Year 1990-91 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Table 5 Fixed Investment Performance of SSI Year 1990-91 1999-00 2003-04 2004-05 2005-06 2006-07 Source: Economic Survey, Annual Report 2008-09 Table -6 Comparison of SSI sector with the overall industrial sector Year 2002-03 2004-05 2005-06 2006-07 2007-08 Source: Southern Economist, Vol 48, No. 20, pp 16 Table-7 Contribution of Small Scale industry in Gross Domestic Product Year 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Source: Economic Survey, Annual Report 2008-09 Total Industrial Production 39.74 39.71 39.12 38.89 38.74 38.62 38.56 38.57 GDP 5.86 6.04 5.77 5.91 5.79 5.84 5.83 5.94 Growth rate 8.68 10.88 12.32 12.60 13.00 Growth rate 5.70 8.40 8.10 11.5 8.00 Export 9664 48979 54200 69797 71244 86013 97644 124417 150242 177600 (Rs.Crore) Fixed Investment 93555 139982 170219 178699 188113 213219 % of growth 3.32 4.87 4.98 5.27 8.68 % of growth 10.21 10.66 28.78 2.07 20.73 13.52 27.42 20.76 24.54
Source: Directorate of Industries and Commerce, Chennai.
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Source: http://www.dsir.gov.in/ reports/ExpTechTNKL/Abs%20 new/SME_TN.htm It is more important that the bankers should realise their importance and responsibility in providing their valuable contribution of required financial support to SMEs sector and for the overall development of entrepreneurs. Hence, the bankers should change their perception and attitude that they are on the safer side if they issue loan to big concerns which have healthy financial status. The risk-averse bankers should evaluate not only the loan repayment capacity of SMEs but also analyze the involvement of the entrepreneurs in business. In foreign countries, bankers provide business loan one and half per cent more than the amount they collect from the public as deposit, but in India generally bankers are not giving business loan for an amount exceeding 75 per cent of deposits they collect as deposits. When the bankers are ready to give their full financial support to SMEs, the SMEs not only overcome from their financial barrier but also the money circulation which leads to increase in the purchasing power in general. At the same time the SMEs should understand that the loan disbursed to them by banks is the deposit from the public and therefore, the bankers have certain responsibility and accountability to the public. When there is a proper understanding between the SMEs and bankers there is no possibility of failure of SMEs in India and can prevail over the global competitiveness in technological innovation aspects. Therefore, it is time that in order to hail out the Indian economy from the temporary ill-effects of global economic crisis all commercial banks in the country, if necessary through legislation, impose legal obligations must be asked to focus their attention on SMEs by providing the required financial assistance without much restrictions and procedural formalities so that the SMEs can play an effective role to make up for the temporary slowdown of contribution by the big industries to the economy of the country.
References:
1. Access Finance, Providing better
Access to finance for SMEs in India, Dec -2007, issue no 2, pp 6. 7.9 % in first quarter, Aug-30, 2008, Tiruchirapalli edition, pp 19. role, Sep-30, 2008, Tiruchirapalli edition, pp 11. doubt if banks will follow RBI advice? www.financial Expree. com/news, 4 June 2009. to be doubled: PM, Aug-29, 2009, Tiruchirapalli edition, pp 6. 48, Number 20, February 15, 2010
2. The Hindu, GDP Growth dips to
3. The Hindu, What is the banks
4. The Financial Express, SMEs
5. The Hindu, Credit flow to MSMEs
6. 6. Southern Economist, Volume
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Stress Management in the Workplace

Mr. Alok Satsangi (Phd. Research Scholar, Singhania University) Stress is a regular part of life and any job. Everybody deals with stress sooner or later, and most of us deal with it every day. Without stress, workers cannot meet deadlines; strive to meet satisfaction of the clients which is required for the job. Meeting the demands of a job makes the work interesting and satisfying and often allows people to develop their skills and achieve promotion. Insecurity about the job and the massive social pressures to provide more productivity at work is growing rapidly. People regularly experience stress-causing situations in the workplace. They react to these events with tension. Job stress is the harmful physical and emotional responses that occur when the requirements of the job do not match the capabilities, resources, or needs of the employee. Job stress can lead to poor health and even injury. It has been found that most illness is related to unrelieved stress. If you are experiencing stress symptoms, you have gone beyond your optimal stress level; you need to reduce the stress in your life and improve your ability to manage it. One should never let stress accumulate otherwise the result can be fatal.
INTRODUCTION
Workplace stress can be caused by several factors, some of which may include: unsupportive working environment, high demands of the job, or poor organizational communication. In the workplace, stress can usually cross from normal to excessive. Excessive stress can activate physical and emotional reactions that can be detrimental to employees and business alike. Some jobs especially those that include physical strength like firefighting or those involve in maintaining justice are very stressful. Other jobs like teaching or social work that are physiologically demanding can also be stressful. Frequent personnel turnover, poor chances of promotion, lack of preparation for technological changes can also become the stress factor for the employees. Work stress factors may include: too much workload, dull or worthless tasks, lengthy hours of
work and small pay, unreasonable performance demands and rare rest breaks. However the physical environment of the workplace like noise and overcrowding, poor air quality, health and safety risks can also cause stress to the workers. Supervisors that are distant and uncommunicative are walking stressors. Meager performance from subordinates can also cause stress to supervisors. Staff members also create their own stress by developing office politics, competition, bullying or harassment.
What is Job Stress?

Job stress can be defined as the harmful physical and emotional responses that occur when the requirements of the job do not match the capabilities, resources, or needs of the worker. Job stress can lead to poor health and even injury. The concept of job stress is often confused with challenge, but these
concepts are not the same. Challenge energizes us psychologically and physically, and it motivates us to learn new skills and master our jobs. When a challenge is met, we feel relaxed and satisfied. Thus, challenge is an important ingredient for healthy and productive work. The importance of challenge in our work lives is probably what people are referring to when they say a little bit of stress is good for you. But for David and Theresa, the situation is different-the challenge has turned into job demands that cannot be met, relaxation has turned to exhaustion, and a sense of satisfaction has turned into feelings of stress. In short, the stage is set for illness, injury, and job failure
NIOSCH approach to Job Stress

On the basis of experience and research, NIOSH favors the view that
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working conditions play a primary role in causing job stress. However, the role of individual factors is not ignored. According to the NIOSH view, exposure to stressful working conditions (called job stressors) can have a direct influence on worker safety and health. But as shown below, individual and other situational factors can intervene to strengthen or weaken this influence. Theresas need to care for her ill mother is an increasingly common example of an individual or situational factor that may intensify the effects of stressful working conditions. NIOSH Model of Job Stress
Environmental Conditions: Unpleasant or dangerous physical conditions such as crowding, noise, air pollution, or ergonomic problems
2.
Health Risks due to Stress in the Workplace

A link between workplace stress and physical or emotional problems exist. Early signs of job stress include: sleep disturbances, stomach problems, and trouble in concentration, irritability, headache, low morale, and poor affairs with family members and friends. These signs are simple to distinguish, but without proper management, they can develop into severe health risks like cardiovascular disease, musculoskeletal conditions and psychological disorders. The nature of work is changing at whirlwind speed. Perhaps now more than ever before, job stress poses a threat to the health of workers and, in turn, to the health organizations.
Enjoy The Good Things In Life And Be Positive Every situation has both pros and cons. List them both, put them away and take a second look tomorrow. Sleeping on a situation can sometimes changes disadvantages to advantages. Sometimes you can forget to enjoy the good things in life if you let stressful events build up. Remember that life offers more things other than work. Reserve some time to actually recognize the good things in your life. Everything in this world exists in a balance. Negative can never occur without the positive. Learn to find good in your stressful situation and try to change every negative events into positive. Time Management Being disorganized is one of the common causes of job stress. Time management is the key to organize your work at home and at the workplace, thus lessening the stress you may feel. Prioritizing the most important job and writing down you duties and activities everyday is the proper way of managing you time. Keeping a diary or journal, where you can list down your objectives, can help you assess which duty must be done first and the estimated time you can accomplish each activity. Everyday pick the most important task you need to complete and finish it. That way, you are more likely to finish all your tasks for the day, and provide you the feeling of accomplishment and greater sense of control. Learn to Delegate Learn to delegate to lessen your work. Sometimes, there are days where you think you have too many things to do but have so little time. During these days, make a list of the
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Job conditions that may lead to Stress Steps in Managing your The Design of Task: Heavy work Stress load, infrequent rest breaks, long
work hours and shift work, hectic and routine task that have little inherent meaning, do not utilize workers skills and provide little sense of control. The Management Style : Lack of participation by workers in decision making, poor communication in the organization, lack of familyfriendly policies. Interpersonal Relationships: Poor social environment and lack of support or help from coworkers and supervisors. Work Roles : Conflicting and uncertain Job expectations, too much responsibility and too many hat to wear. Career Concerns: Job insecurity and lack of opportunity of growth, advancement or promotion; rapid changes for which workers are unprepared.
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Breathing And Relaxing Oxygen is very important to the body. Taking a deep breath adds oxygen to the system, which can help you relax. Learning how to breathe can help you maintain your selfcontrol in a stressful situation. You can start by taking a deep breath. Stand up and stretch. Always remember that the opposite of stress is relaxation. Take a short walk, get a glass a glass of water and do something that can change your focus. Try smiling and take a short moment focusing on something else other than your problem. By the time you get back to your problem, it would not seem nearly as undefeatable.
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things that you can delegate to co-workers. By delegating, you can surely avoid stress from building up. In the workplace, learn to say no when you find yourself in the situation where you cannot handle anymore task than you already have. There are others who cannot fully assert their own capabilities and ends up being more stressed out than others who know their limitations. 5. Know Yourself and Your Limitations To manage stress effectively, it is very important to know yourself and your limitations. If you are in a working environment, do not just accept workloads if you think you cannot manage them easily. By recognizing your limitations, you can evade situations that can usually lead to the piling of work. Sometimes, learning to say No can spare you from stress build up. Most situations can be out of control. Always be positive and refrain from blaming yourself. If you continuously beat yourself with guilt, not only will you not be able to manage your stress but worsen the situation. Meditation of Mind and body Meditation is a great way to reduce the tension that builds up in your mind while under the influence of stress. Originally part of the pagan religion, stress is now being incorporated by many professionals as a healthy resort to stress and problems. Try to find a quiet place in your mind or in your office. You may sit down or lie down. Focus on each and every single area of your body and commanding them to relax with your mind. Try to visualize an object or phrase a question in your mind. Focus on it as long as necessary. Fleeting
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thoughts and scenes will flash through but pay them no heed. After a while, your mind will stop projecting images and you will feel like as if youre floating in total nothingness. You will feel refreshed after meditation and you will be ready to face stress in the face. 7. Physical Exercise One personal stress management technique that can dispel stress is to find an outlet for your mental and emotional burdens. Physical exercise is a highly recommended approach in dealing with stress. Since the mind and the body are connected, keeping it healthy will have a profound influence in your state of mind. Doing at least 4 times of physical exercise a week can improve your cardiovascular functions and strengthen your heart. This will help you avoid effects of stress like stroke, high-blood pressure, muscle pains, and so on. Asking for help People who unsuccessfully use and resort in drugs and alcohol to avoid facing their problems usually find themselves in a rehabilitation program. A major stress management tip is asking for help from friends, family or workmates. You are never alone and there are always people around you willing to lend a helping hand. There are professionals and self-help books that can aid you in relieving stress by giving you useful advice.
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of stress-related problems that are quick to develop and are commonly seen in these studies. These early signs of stress are usually easy to recognize. Nonetheless, evidence is rapidly accumulating to suggest that stress plays an important role in several types of chronic health problems - especially cardiovascular disease, musculoskeletal disorders, and psychological disorders. Management and employers can reduce stress at work by providing stress management programs and training for workers and improvement in the working conditions. There are programs that are intended to aid employees with personal problems that may be disturbing their job performance. Creating a healthy working environment can create a lasting stress relief of the workers. Not all stress is bad. Stress can start change, aid you in focusing the task at hand, and in some cases can even save your life. Although a buildup of stress can result in major risks. Do not let stress accumulate otherwise the result can be fatal. Insufficient stress acts as a depressant and may leave us feeling bored or dejected; on the other hand, excessive stress may leave us feeling tied up in knots. What we need to do is find the optimal level of stress which will motivate us but not overwhelm us.
References
1. Mason John L., Guide to Stress 2.
Conclusion In the past 20 years, many studies have looked at the relationship between stress and a variety of ailments. Mood and sleep disturbances, upset stomach and headache, and disturbed relationships with family and friends are examples
3.
4.
Reduction Peace Press,1980 pp 35-42 Charlesworth, Edward A., Stress management : a comprehensive guide to wellness, Ballantine Books, 2004 pp. 81-87 Goliszek Andrew, 60 Second Stress Management : The Quickest Way to Relax and Ease Anxiety November 1992, 81-87 Krucoff Carol, Smart Ways to Beat Stress: Readers Digest, January 1999, 50 - 55
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The Life of Poet Kamala Das A Management Lesson

Ms Rita Sachdev (PhD. Research Scholar, Singhania University) , (Director) NIILM School of Business, New Delhi Recognized as one of India's foremost poets, Kamala Das was born on March 31, 1934 in Malabar in Kerala (Dwivedi 297). Her love of poetry began at an early age through the influence of her great uncle, Nalapat Narayan Menon, a prominent writer. Das remembers watching him "work from morning till night" and thinking that he had "a blissful life" (Warrior interview). Das was also deeply affected by the poetry of her mother, Nalapat Balamani Amma, and the sacred writings kept by the matriarchal community of Nayars (IndiaWorld). She was privately educated until the age of 15 when she was married to K. Madhava Das (IndiaWorld). She was 16 when her first son was born and says that she "was mature enough to be a mother only when my third child was born" (Warrior interview). Her husband often played a fatherly role for both Das and her sons. Because of the great age difference between Kamala and her husband, he often encouraged her to associate with people of her own age. Das says that he was always "very understanding" (Warrior interview).
Never before had any woman in India dared to describe so distinctly about the physicality or longing of a woman as Kamala Das. as a child she was deeply sensitive and was known to write simple but sentimental poetry about her broken dolls. Her real name was Madhavi Kutty Nair. The reluctance to Her revelation has made the whole use her real name may be seen in Indian society dazed and awesome. the context of her unorthodox and It is because of her forceful expres- revolutionary poetry as a defiance sion of the problems of women by of her orthodox upbringing and a citing her own story that she came yearning for a new and freer idento be accepted as the most daring tity. and controversial poet. Kamala Das was married at the Born at Punnayarklam in the young age of fifteen to a man quite coastal region of Malabar, Kerela, older than her. By her own confesKamala Das (1934-2009) got her sion she was not ready for married education from convent school in life at that age and no one in her Calcutta but was mostly educated family prepared her for the enat home by an Anglo Indian tutor counter that she faced on the wedand a Malayalam teacher. Though ding night. In her autobiography, her family was educated but was My Story she had openly criticized very orthodox and conservative and always associate this encounwith lot of restriction especially on ter with violence that left a deep women. Her childhood was commark on her psyche. Contrary to pletely dominated and she was her husband who was liberal attrained in the traditional rituals titude towards her and he treated and the art of decorations, things marriage as an exercise in sexual that every girl in a conservative companionship as against to the family was expected to learn. Even feeling of Kamala Das, as she takes
this encounter, was a betrayal of the very concept of marriage which she believed, a mental and spiritual companionship. In search of real love Kamala Das entered into one after another extra marital relationship but love kept eluding her. Kamala Das shows her true selfhood successfully by portraying her true identity at the cost of discarding conventional beliefs and practices. She exposes herself by emptying all feelings and secrecies. In doing so, she also gives vent to her unceasing search for genuine love and experimentation which she thinks must be explored to the fullest extent. She has not only made her personality bare but also has contributed, a sizeable magnitude, to the growth of Indian poetry in English. Kamala Das displays the capacity to determine her own destiny in the overwhelmingly patriarchal framework, and this is one of the essential tenets of all types of femi95
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nism- both liberal and radical. Her writings constitute both an act of protest and self determination . Though her creative writing did generate hostility among the relatives, and sometimes even among friends, she went on it doggedly sustained by the feeling that it was through her writing that she could achieve her true being. She exercises in this a free and moral choice and faces the consequences of this choice which again is an important feminine principle. No doubt, she felt betrayed, disappointed, sad and lonely at her situation, but she did not get bogged down.
poetic endeavors. While this has been criticized one must keep in mind that most women poets of this era wrote autobiographical works or drew heavily from their personal experiences. One of the main reasons behind this was the politically and socially turbulent times they lived in. A lot was happening in the social front in the Kamala Das refused to fit into any country. While men had the privischeme devised by the categorizlege of observing and taking part ers. The frank and confessional in these happenings women obquality of her is her main strength, served them from within the safe though in the absence of a mature and restricted position of their self-restraint on can notice in it a households. Very limited informadash of callous exhibitionism, par- tion filtered through to them and ticularly when she has to flaunt her even educated, privileged women Kamala Das work carry a heavy flamboyant lust in order to rehad very little exposure to the real pessimism and a note of disillutrieve her undermined dignity. world. Women empowerment and sionment. At the same time, her education was still in their infantile poems are notable for their intense The bitter irony and anguish of stages and women such as Kamala feminine sensibility, touching ima woman who finds herself tied Das had grown up within a limagery and bold subject matter. down to a meaningless routine of ited surrounding where informahousehold activities can be seen in tion of the outside was filtered on In an age where women empower- many of Kamala Das poems. One to them through books or through ment and liberation were still uncan see how she struggles to assert male agencies. Since such women, heard of, the poet shows immense her individuality and her own exeven though their mental faculties courage by being unconventionalistence. are highly developed, spend most ly frank in her confessions and deof their formative years in isolasires. In a conservative social setFrom the beginning, she demontion within the household, it is but up, it is assumed that a woman has strates a continuity of theme and natural that their writing should no physical need for love. Thereexpression concerning her feminist contain their own feelings, experifore, Kamala Das shows immense ideals. She speaks out her heart ences, fears and desires. courage in bringing her plight, as both as a woman and as a poet. well as the plight of many Indian She struggles to cope with probHer work can be considered radiwomen of her time, to the forefront lems and dilemmas. She does not cal and feminist in the sense that through her poems. It must be kept attempt to intellectualize rather she tries to assert her individualin mind; however, that she speaks she makes a discovery of human ity and her right to have desires for herself alone and there seems to existence and narrates her experiand needs. She does not wish to be no deliberation in her poems to ences vividly and passionately. give up her feminine identity but, consciously address the plight of She tries to reject masks and roles; on the contrary, wishes that her others through her work. Yet her and refuses to accept the limitation admirers may be more sensitive poetry and themes in that particu- on her biology too. towards it. Her poetry, although lar light may be said to have a wid- When there is no sense of meaning- autobiographical, does not fail to er significance since the poet herful participation in the social life address the predicament of milself is motivated and influenced by and the individual is condemned lions of Indian women during her factors outside her consciousness. to lead a purposeless existence time. Married to older men as soon with no challenging responsibilias they gain puberty, most women Her poetry has a special force and ties to shoulder, she is likely to be spend a lifetime doing little more appeal that ring deep to ones sen- daunted by a sense of hollowness than satiating the lust of their hussibility. The force is primarily beand futility. bands and taking care of the chilcause of the honesty and frankness dren and the household. While with which she asserts her right to All of Kamala Dass works are physical freedom is enjoyed by exist as an individual with a disautobiographical. She draws on the male, the women lead a life of tinctive identity. She tries to be on her own experiences to fuel her subjugation and deprivation. It is
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her authentic self even if this involves breaking the mould of traditional ethics and propriety. Her voices, a vehement protest against the senseless restrictions which compel a sensitive and intelligent woman, to lead a lifeless kind of existence broadly indicated in her writings.
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a must to remember, that Kamala Das can be considered a feminist only where the society is prejudiced. To put it simply she is indignant and defies norms only because the male-dominated society wishes to overpower and deprive a woman of her needs and desires. But in isolation, she is neither a feminist nor is her thoughts very radical. Beneath her ruthless frankness and unconventional approach lies a simple, almost tender, feminine thought the right be loved by a man for what she is and not what she is expected to be. One has to admit that the desire to be loved unconditionally is universal. The poet, who is now married, recalls her grandmothers house where she had received great love and care. This memory is significant because her conjugal life is bereft of love. The grandmothers house is situated far away from her present home. She has pleasant memories of the house since she received an intense amount of love there. However, the death of her grandmother changed everything for the young poet. Devoid of her grandmother the house became dark and cold. The books in her house which she could not read as a child lost their fascination and charm. The death of her grandmother marked the death of her love as well. And this left a feeling of loneliness and despair in the poet. Yet the memory of being loved is in itself a memory of warmth and happiness. Therefore, even though her grandmother lies dead and the house is deserted, she would like to revisit it in order to revive a portion of her past. She wishes to look through the blind windows and listen to the cold, frozen air of the old house. On her return she wishes to bring back an armful of the darkness that prevails inside the house and leave it behind the door of her present house so that
it may give her company in her despair.
are modified by the constant pressure of masculine standards. Economically women are most highly What she wishes to convey is that exploited group; they are also the the loneliness and desolation of an most physically determined as inempty house is better than the emo- ferior. This is of course, their positionless marriage that she is now tion within each race or class. But living, in the sense that the darkwith the rise of feminism, woman ness of the house at least offers her began to discern and discover valmemories of a better, warmer past. ues of life and rhythms of vitality of their own, without submitting Kamala Das poetry does have an to their criticism of any task masauthenticity and force to the exter. For the first time, they had tent that she honestly brings out an opportunity to be themselves. the triviality and shallowness of Therefore, despite the variation in the life she has been pushed into the biological set-up women must to live as a middle class woman. be given an avenue to stand upon Nonetheless, it is also to observe and be treated at par with menfolk. that the positive human substance of the experiences of such an indiKamala Das, who tries to create an vidual is bound to remain limited identity of her own self by breakso long as he/she does not boldly ing down the existing social power repudiate the senseless curb imstructures and create a place for posed on him/her by the situation. herself in the world of masculine It is the fact that her poems are hierarchies. She could thereby astinged with the elements of both sert her emotion boldly; she writes the external and internal world, with force to alter her existing marand her response to the external ginalized position and accepts her world is sharper in particular than rightful role as a significant part of her inner restlessness. society. It is important to understand that love as a tonic is sadly inadequate so long as the individuals role in the social environ does not alter. The life of Kamala Das, as penned by herself in her woks, shows a search of man-woman relationship which should guarantee both love and security to a woman. When she speaks of love outside marriage, she does not advocate for the kind of infidelity woman should possess nor does she insist to commit adultery; she simply has the curiosity to explore love to the utmost possible level. Woman in the present world seem to search for some kind of identity amidst all the existing problems trying to suppress them. Under the patriarchal structure, womans manner, ideas and their very souls In the last few lines, the poet directly addresses her husband and tells him that though he has kept her in this loveless state there was indeed a time and a place where she was loved and was proud of herself. But that time is long gone. Although once she was rich in love she is now little better than a beggar who begs at the doors of strangers for love in small change. There is a similarity in the present plight of the poet and that of her grandmothers house. The house that is now frozen and silent was once a bustling house full of activity. Thanks to her grandmothers presence the house flourished with love and care and its inhabitants were happy. However, after the death of the grandmother, the house has refused to be reconciled to its loss. It is now in a state of neglect and loveless ness, like the
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poet herself who is trapped in a loveless marriage. Thus, the house seems to symbolize the present state of the poet herself. The poem is seeped in nostalgia and a yearning for the past. The poet uses the happiness of the past to compare her present condition which is bereft of any love. The poet yearns for the past and tries to cling on to its last vestiges. Even the darkness of her Grandmothers desolate house brings her more warmth than the company of her husband. We also observe that Kamala Das successfully shows that her true selfhood and insists on being herself in the midst of all kinds of pressures, mounted on her by the embedded patriarchal values. She discarded altogether, the weakening and constricting conventional taboos which she thinks deteriorate against her essential self and thus breaks open her own cocoon and comes out from it to have a better glimpse of the world around her.
expertise of languages, the poet distinguishes between love and lust by simply concentrating on the intimate but emotionless act of physical union between the poet and her husband. The poet and her husband are together in their intimate moment. The husbands cheeks are sun tanned and his mouth is as repulsive as a dark cavern. His teeth are uneven and appear to her as the stalactites that often grow on the roof of caves. The husband has placed his hand on her knee as if to manifest his claim on her body with a physical movement. But despite the fact that both of them have staunchly made up their minds to turn their thoughts towards love, their resolve keeps floundering. Their minds wander away from love and it appears to her that their plight is like two people wandering on some lane. The two people, instead of concentrating on the journey, are more bent towards tripping over puddles of desire. By describing their predicament in such a manner the poet expresses the sporadic manner in which their desires appear and disappear. The desire is not laced with love and therefore the poet uses the term puddles which is suggestive of filth and is usually avoided.
to attempt normalcy by faking a flamboyant lust so that she may appear to be normal. The use of the term freak seems to suggest that most women live and thrive in the same position that she lives in but do not find anything wrong with it. It is only her who finds this state abnormal and intolerable. Therefore, in order to restore herself to an illusion of normalcy, she makes a show of desire which she does not feel. Love, respectability and freedom are some of the indispensable passions that go along with life; and these are the desire s which almost every individual runs after. However, they cannot come so easily to a person especially to the womenfolk. Woman must work har for the attainment of these passions. Freedom will afford them a chance to improve their lot. The effect of a handful people will be ineffective, a mass movement is what is required.
The title of the poem is significant in many ways. Firstly, the word has been used in the plural form, imThe man-woman relationship, plying that she herself may not be which is a favorite theme of the the only freak in the relationship. poet, has been explored in the Freak is an unusual happening in poem yet again. In the poem, she nature. The word freak is used to directly addresses her husband describe a person who is a misfit in telling him that although he has the social set-up; someone who has deprived her of love, she had once The nimble fingers of her husband a quirk, a deformity, a background experienced love and care from her travel through her body but gives or a certain behavioral pattern that grandmother and that had made arise to no other feelings apart makes him stand out in as well as her proud of herself. Although a from a transient desire for physical outside the society. The act of love wifes home is said to be with her love making. She rues the lack of making that both the poet and her husband, Kamala Das makes it love during the intimate moment. companion indulge in is bereft of clear that the warmth that is associ- She likens their hearts to empty cis- its principal ingredient- love. It is ated with a home was to be found terns which wait for true love but in fact a tragic mockery of the very only with her grandmother. Thus on not being able to find it, fills itact of love making in which both she refutes the traditional idea that self with coils of bitter silence. The she and her husband indulge in. a woman must find contentment in silence is as venomous as a snake Both of them are aware of the lack the company of her husband. and fills the poets heart with lone- of love but her husband is unable to liness. rise above his animal lust. His wife The Freaks is the first love poem is like his mirror image, although that Kamala Das wrote. The title The poem uses the word freak to he satiates her physical desires, of the poem suggests its complexdescribe herself since she alone her spiritual needs remained unity and layered meanings. With an finds her plight unnatural and tries answered as she aspires for a bond
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that is deeper and more meaningful than the act of sex. Thus they are mismatched and both end up as freaks in their own way.
of men, in the context of the poem, is an illusion and only a manifestation of a mans need to be seen as the superior sex. The woman is forced to admit herself as the Secondly, the poet, by using the In the last few lines, however, the weaker, more delicate sex as it plural form may be referring to the poet changes the tone of her poem. is the only manner in which she mismatched desires of her mind She says that a womans constant may retain the companionship of and body. Her body accepts and need for love will make it difficult the man, her lover. Yet, it is also lets in what she actually loathes for her to live her life once she is a poem of paradoxes. The poet, (evident in her description of the bereft of the companionship of her while clearly protesting against the repulsive description of her comlover. She will pine for him and male ego also seems to admit that panions features) while her heart her state will be like that of living a woman plays her part in boostis coiled up in silent resignation of without a life. The memories of ing her lovers pride in his potency what she cannot acquire- a spiriher union with her lover will haunt and masculine strength. Her drab tual union with her companion. her and although she will continue and destitute state is a result of the Thus, both her mind and body are living her life, it will be one where game of egos which both, she and like freaks attached to one another her senses will keep recalling the her lover engage in. It is a tragic and although they are both travel- last vestiges of his presences. Thus, condition where a woman is forced ing different paths. the memories of her intimacy with to succumb to the demands of her her lover will alter the woman in lovers egotism and offer her rather The poem also deals with the break such a manner that she will not be transient physical charms only to down of communication between able to liver her life fully again and be left alone and bereft of his comthe poet and her companion, preher life will become drab and des- panionship in the end. sumably her husband. While the titute. poet gives in to the animal desires Although the poem begins on an of her husband she herself is unThe poem is a protest against the innocent note declaring the variable to satiate her need for spiritual humiliations that a woman faces in ous ways by which a woman may love and belonging. The tragedy, the light of a mans ego. A mans win a man in love, the poem is by however, is that she is unable to ego is boosted by his supposed no means a very simple one. The communicate this need to her hus- strength and superiority against a beginning of the poem is almost band as there is no bridge of comwomans frailty. A woman is phys- obscene in its suggestion of the munication between them. Each ically weaker than a man but emo- various ways in which a woman is cocooned in his/her respective tionally, she has the ability to bear can make herself more desirable to shell, he in the instant gratification and tolerate pain. A man, however, a man, yet the ending lines of the of his lust and she, in her abode of exults in the apparent physical fra- poem negates these suggestions by bitter silence. gility of a woman. His machismo stating, almost with a tone of conis accentuated when held in confession, that true companionship In her first love poem itself, Katrast against a womans delicate cannot be won with physical union mala Das explores the difference disposition and he is aroused by alone; that mere lust is ineffectual between love and lust. Through the womans physical dependence and even tragic, where true love her poem, the poet tries to address upon him. Thus, Das asserts that is concerned. The poem is, in fact, the lack of communications in inif a woman exhibits and bestows a commentary on the manner in timate relationships. By indulging her feminine gifts on a man it is which a woman is victimized and in a sexual act without the necesnot difficult to win him in love as even humiliated by the demands sary emotions both her husband her femininity, when contrasted to of the male ego to be aroused and and herself enact a pantomime of his masculine strength, will place satiated. A woman, in a male cenlove making. The transience and him in a more dominant position. tric set-up, is a performer who perhollowness is explored not by con- However, according to the poet, a forms the art of love so that she may trasting it with love, but by describ- mans need is often concerned with successfully satiate the appetite of ing the machinelike movements of the physical aspect alone. And her lover. If she fails, she must face lust such as the movement of her therefore he will seek the company desertion and isolation. If she wins, companions nimble fingers that of the woman only when the need she is objectified as a means to even arouse only lazy pangs of sexual arises as a fish comes up for air. more gratification. Thus, she lives desire in her. Lust is described as The poem is a protest against the an imprisoned existence where a murky puddle. The poet laments mindset of such men. The strength her life is validated by her abilMarch 2011 Vol. I Issue 1
the lack of love and describes her heart as an empty cistern filled with coils of silence which burden her heart.
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ity to please her husband, lover or companion. A woman, thus, ends up observing and knowing herself through the eyes of those that she wishes to please. In the poem, the poet, by asking the woman to act in certain ways is merely repeating what the womans lover may desire her to do. A woman may be shy, instinctively. But for her lovers pleasure she must forgo that shyness and don the masculine mantles of physical frankness and candor. The poet is merely addressing the realm of a males fantasies, she asks the woman to execute these fantasies as no man can resist a situation when his fantasies are played out for real. But the hazard of executing a males fantasy is that the woman herself will always become a part of his fantasies and never be a part of his reality. He will seek her out when he needs to be further gratified like a fish comes up for air. There will doubtlessly be a need for her in his life but it will be restricted to the physical aspect alone. Unknown to him, the woman will suffer since it was only to gain his love that she, perhaps not very willingly, discarded her womanly inhibitions to please and gratify him and win his companionship. Das poetry originates more from the absence of love than its presence. Her unhappy conjugal life and her inability to find love made her seek love in the arms of other men. But in that too she failed. In her poems she criticizes the men in her life for being unable to rise above their animal desires. Her husbands inability to love her and his sadistic relish in watching her despair for love greatly traumatized the poet. Her lovers too, exhibit an indifference and cynicism towards the very concept of love. Their attitude to love has been summed up by Das in her poem, The Sunshine Cat in the lines, I do not love. I cannot love; It is not in my nature to love. Thus the ab100
sence of love is a constant theme in her poetry which, no doubt, reflects her own views regarding life. The Sunshine Cat explores the hapless state of the woman who is left cold and half-dead due to the lustful, self-centeredness of her male companions. In The Sunshine Cat, like in most of her poetry, Kamala Das again explores the condition of a woman whose relentless search for love leads her to a life of despair and destruction. The woman in question, presumably the poet herself since most of her works are startlingly autobiographical, gradually degenerates into a mere shadow of her self in her quest for love. The streak of sunshine that streams in through the creak of the door becomes a reflection of herself as she wanes and ebbs away in neglect and indifference. In winter when the streak of sunshine becomes a hair thin line, she to a half-dead, cold shadow of her previous self. The poet uses the word cat for the streak of sunshine to denote its silent, feline nature. The streak of sunshine represents her waning youth, vitality and vivacity. It is a kind of alienation of the self that the poet here delves into. It is as if the remnants of the poets vivacity and vitality detaches and gets externally manifested in the streak of sunlight that sits at her door. As she herself gradually ebbs away, so does the streak of sunshine. Winter finds both the sunshine cat and the poet almost dead. Destruction and annihilation of the self is one of the underlying features of confessional poetry. The confessional poetry seeks to resolve their conflicts and traumas through an understanding of death and its aftermath. Death and sometimes suicide, is a way of asserting or rather confessing that the mysteries and anxieties of life are greater than the capacity of
one person to overcome. Suicide, especially, is a means of protesting against these unfathomable conflicts of life. While Kamala Das expresses a wish for self annihilation, her capacity to delve into the spiritual nature of things and her desperation to come to a balance with self, saves her from taking this extreme measure. The poetry of Kamala Das is spontaneous, straightforward and simple. She paves the way for the reader to approach to the new fields of feelings and emotions in an earnest manner what she presents before the reader is a synthesis of rare and contrasting thoughts of lonely minds. She perceives the world as one perceives it in a dream. Though she believes that she has not attained the emotional maturity to sublime poetry, yet, her heart flows in words abounding in sensual rhythms and soulful laments. The experience she concretizes is hers and it could also be anybody elses. We also find in her writing an alert and inquisitive approach to life. She draws inspiration from the simple, the sad and gorgeous events in everyday life. In her poetry an alert and inquisitive approach to life is clearly seen..
References
1. http://www.rediff.com/style/das.
htm.
2. Dwivedi, 3.
4. 5. 6.
A.N. Indo-Anglian Poetry. Allahabad: Kitab Mahal, 1979. Raveedran, P.P. Text as History, History as Text: A Reading of Kamala Das Anamalai Poems. Journal of Commonwealth Literature 29n2 (1994): 47-54. Ravi Database Consultants. India World Poetry. Online. Internet. Available: http://www.indiaworld.co.in/ open/rec/poetry/mother1.html Interview with Rediff
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Paradigm Shift from Traditional to Contemporary Management Practices: In Quest of Sustainability

Nabanita Choudhury (Lecturer) Bangalore School of Business (Kolkata Campus) I would like to pen down my understanding about the phenomenal shift that is observed in macro-management from agriculture to international business. In my opinion this shift from traditional to contemporary management practices occurs due to the change which is naturally a byproduct of time. In other words it is the quest of sustainability that gives rise to such change. In my paper I have dealth with two cases that propel this shift in macro-management. The rst is directed towards agriculture wherein the redistribution of ownership right of land is given to poor and marginal farmers a move towards sustainability .The second deals with the detailed case study on Nike the footwear giant and a major player in the international business market .I have tried to analyze from every corner the strategies adopted by this global giant to retain and establish its place in the global market. The shift in strategies adopted by Nike and cause for the shift has been critically analyzed. Redistribution of Land to Small and Marginal Farmers :A Shift Towards achieving Sustainable development in Agriculture
Economic growth is defined as an increase in economys output in terms of goods and services that determine the income of a country. However growth in terms of mean income alone does not guarantee the full range of satisfaction. of human needs and aspirations. Hence the emphasis is on the term economic development. It broadly refers to the well being of the society as a whole that gets reflected in the expanded set of opportunities available to the present generation .It is not just an increase in mean income but equal distribution of income catering to the welfare of all sections of society in terms of increasing access to food, clean water, housing and improved standards of health and education. However this concept of economic development is not complete and does not take into account the environmental impact of the activities. Hence the question of sustainable development emerges. Surely the shift from economic development to sustainable development is a phenomenal shift that arises due to the necessity of sustainance. Sustainable development in agriculture is a much known term. The misdistribution of basic resources such as land and water within the farming population is a reflection of the distorted distribution of political power .Issues of ownership; access and distribution of basic resources are thus a vital part in the discussion of sustainable agriculture. Countries of the southern Hemisphere especially of Latin America and Africa are adverse hit by the misdistribution of resources. This inequality is prevalent in Peru, El Salvador, Brazil and Philippines and many other countries .It is observed that the richest 10% of the population owns at least 70% of all land worldwide. The existing structural inequality is also evident in the FAO report that estimates 168million rural household possessing marginal or no land at all. The bulk of the people whose position is at the bottom of the socio economic pyramid suffer the greatest inequality in terms of insecurity in livelihood and inadequacy of food supply If any step towards this erosion of socio economic inequality is to be taken then sustainable development must address this marginalization of the rural population .This can be done by redistribution of land among the marginal poor. Agriculture in India is not only an occupation it is the way of life. More than 70% of the population
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lives in her villages. A significant share of Gross Domestic Product lies in agriculture and is the principal driving force of rural growth. According to the data released for the year 2006 2007 the countrys GDP showed an impressive growth trend of 9.2 % with agricultural sector contributing 18.5% industry 26.4% and service sector 55.1%.Though the share of agriculture in GDP is declining in recent years yet that does not undermine the necessity for rural development hence much emphasis is required in equal agricultural development. Fair and equal distribution of national income to all sections of the population reduces economic and social inequality. This is the basic ideology of Socialism. Land Reforms refers to the reform of ownership pattern of land i.e. redistribution of land for benefiting small farmers and agricultural laborers. Its essence lies in restructing the entire property relation in the countryside. In comprehensive sense includes a variety of other things such as abolition of intermediaries, ceiling and consolidation of land holdings, rent regulation, farm credit system, and improvement in tenancy reforms, cooperative organization and agricultural education. In case of expansion of livelihood opportunities and empowering the rural poor Land Reforms has gone a long way. The two key components of these measures are the provision of security to share cropping tenants through a process of registration popularly known as Operation Barga and the acquisition of the ceiling surplus lands as well as other lands vested with the government and their distribution among the landless laborers and poor peasants. Its principal objective is to enhance agricultural productivity and reducing inequality. This significantly inherent potential of diminishing pov-
erty and inequality promoting thereby growth and development has its embryo in Land reforms. Higher income and greater food security can be ensured. Freedom from oppression leads to improvement of heath and well being and banishment of chronic poverty. Studies revealed that the income of the poor who receive land as a result of redistribution is expected to pull them above poverty line. The per capita income level and income share of the middle group increases by more than half due to such redistribution at the expense of the rural top class who suffers one third in their income shares. It has also been seen that if only 5% of the farmland in India is redistributed in the above fashion with assured access to irrigation there is a massive reduction in the rural poverty line by 30%.The Farm Management Studies Data reflected that the highest record for production growth and employment generation per hectare is obtained from the land of the small farmers. Hence there lies the urgency of laying greater emphasis on Land Reforms to eradicate inequality. It is a productive move and not charity. Thus a paradigm shift is observed throughout the globe in the distribution of land holding. The effectiveness of the participatory approach and of local action in general identifies the lessons that are learned for implementing sustainable development at the local level for all concerned countries. Action at the local level is a necessary step and cannot be effectively implemented until concerted efforts to create legal and institutional policies to provide adequate security rights and entitlement to the poor. The fundamental of sustainable development is to expand the choice base and option of opportunities to the poor and create legal policy framework through
which potential policy formulation blossoms into reality and the poor is provided with secure access to financial ,material, intellectual and other types of resources. This can be given separately as Value addition The picture prior to Redistribution of Land holdings in Indian context The best description of a Zamindar is portrayed by Mulk Raj Anand in his famous short story A Pair of Mustachios The tiger mustache is usually associated with such ranks of feudal gentry. The uncanny several pointed mustache worn by the unbending ,unchanging survivals who at present have nothing left but the pride in their greatness and few mementoes of past glory, scrolls of honor granted by the former emperors, a few gold trinkets, heirlooms and bits of land. Yet the boast of blue blood relit their dwindled existence illuminating them with the remembrance of their authoritative forefathers. Zamindars were the designation certified to the landlords of colonial India well-known for their trustworthiness to the British superiors. Vast acres of land covering several villages and its adjacent were under the possession of a single Zamindar .Vested with the duty of preparing the details of the revenue assessment; collecting taxes from the peasants and remitting them to the state authorities they are considered the lord of their land. Deriving their strength and power from the loyalty to the imperial authority these superior landed interests lived in majestic spacious mansions mostly built of stone and teak wood opening into large cen-
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tral courtyard well furnished with amenities which their poor peasant subjects feared to dream of. Such pictures do not exist to-day. A structural shift is observed and this is due to the implementation of Land Reforms Before delving inside the second case of Nike I would like to give a brief introduction of what product life cycle hypothesis is. A product passes through several phases during its life time .When the product is innovated costs are high because the costs include research and development expenditure. When the new product is introduced usually it is high in demand. After a period of time the product becomes standardized and produced by many firms eventually the product may come to the end of its life cycle .Then the product will gradually disappear from the market giving rise to other better alternatives. The diagram given below represents the different stages of a products life starting from its birth till the point ii is extinct in the existing market. The below diagram is given in all text books and is well known to students and teachers. Much like the normal life style of human beings a product also shows the same trajectory. At the juncture of this point the analysis of my second case starts. What should be the alternative strategy action employed by a company of global repute to retain its place in the international market when it finds that its demand in the existing market is on the verge of satiation?. This extinction is prevented by certain alternative policy measures. I have tried to give a general view taking the example of the change of behavior of Nike as an example to clarify my point.
Source: Marketing Management by Philip Kotler, Armstrong, Koshy and Keller The emergence of Multinational Corporation is best understood in this context where the world can broadly be divided into three set of countries namely the innovating countries, low cost middle income countries and the underdeveloped countries. The product is innovated in Innovating Countries. The initial phase of expansion is followed by standardization of technology. Many imitating firms will imitate the technology and the product.
and golf champion Tiger woods .the psychological effect of celebrity endorsement became very transparent. As they share a wider purview of exposure Nike being associated with them reached to every household and became a household name globally. Market surveys formed the most important tool of this footwear giant in analyzing the changing needs and demands of the consumers. The surveys gave a Clear indication that the customer preferred different products for different purposes. For example they preferred different pairs of shoes for playing basketball, running and jogging. Besides survey reports showed a fast growing potential of a segment of womens fitness. This can be harnessed and a large market concerning the womens segment can be captured easily. The market penetration is said to be successful and due to its popularity it was believed that an expected growth rate of 75% by market insiders. Since 1980s Nikes highest selling product is basket ball shoes. 30to 40% of Nikes US Revenue in 2005 came from the sales of basket ball shoes. But the very next year witnessed the drastic fall of the sales of basketball shoes. The sales of Air Jordan the highest selling brand of basket ball shoes fell by 16% in the US market. Sensing impending disaster Nike shifted its focus to other developing countries like India, China and Russia. Why is this strategic shift undertaken by the footwear giant from US to other parts of the globe is a question that was frequently asked by market insiders. Surely it is a move for sustaining its business and as already discussed when a product gets saturated in one particular country in other to retain its print in the global market
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Does the Strategic Shift of Nike the Footwear Giant raises questions of Sustainability?
Late 1950 have witnessed the idea of laying the foundation stone of this shoe company and this idea was generated in the mind of Phil Knight and his coach Bill Bowerman.Nike in order to increase sales volume and position itself as a global brand gave thrust on three factors such as product design, advertisement and celebrity endorsement. Celebrity endorsement was one of the popular drive of this footwear giant who roped in famous footwear personalities like the Tennis superstar John Mcroe and basket ball player like Michael Jordan in 70s and 80s respectively. The nineties witnessed roping in of tennis heartthrob Andre Aggasi
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a shift to certain potential market is observed. Nike is no exception to the above rule and hence followed the same path as laid down by other predecessors of International business. In early 2007, Nike announced to divide the brand into six categories - soccer, basketball, running, mens training, womens fitness and sports culture. Earlier, the brand was divided into three broad categories sports footwear, apparel and equipment. Increasing competition in the US market prompted the company to adopt the customer-defined category strategy. By dividing the brand further, Nike tried to focus more on the individual customers. Why is this diversification carried out by Nike was the question that haunted its business partners? The main focus was on the product. Nike concentrated on producing a good quality product, be it footwear, apparel or equipment and then sold it with the help of an effective marketing strategy. However, in its new strategy consumer was the focal point. Nike tried to find out the changing needs and demands of the consumers by conducting several market research surveys. The result of these surveys pointed out that one customer may like to use more than one Nike product to serve different purpose. For example, they can use different pair of shoes for playing basketball and running or jogging. Besides, some of the new segments like womens fitness were growing fast. Seeing this, Nike decided to explore potential markets. The company decided to leverage the brand vigor by extending its product range to satisfy the varied needs and demands of the customers. Nike by this time was much well recognized in the global market and its market penetration successful. Ac104
cording to the company insiders the new categories were expected to contribute over 75% towards the brands growth. To ensure success for its market penetration, Nike restructured its organizational structure to support rapid growth of the newly formed divisions. Each one was to be headed by a vice president who reported to Nikes Vice President for global brand and category management. The division head was made responsible for the growth of that particular division. Each division would formulate its own marketing strategy and budget. According to the company insiders this would enhance the focus on a particular category and thus improve the overall sales.
the brand awareness further Nike can endorse an upcoming Chinese basketball player whom the young generation admire and consider as role model. Similiarly, Nike was able to gain 15% market share by the end of 2006 in India . In India, Nike associated it with the Indian cricket team by signing an agreement with the Board of Control for Cricket in India (BCCI) to sponsor official cricket merchandise such as replica team T shirts and jerseys, kit bags etc. As cricket is enthusiastically watched nationwide, this move will certainly promote the Nike brand.
Nikes performance in the emerging markets of the other world

The sports footwear market in the third world countries was in its growing stage.The second quarter of the financial year 2006, witnessed an increase of Nikes sales in China by 30%.By the end of the third quarter of the financial year 2006 Nikes revenue in the Asia Pacific region grew by 11% to $589.9 million compared to $532.3 million12 in the previous year During the same period, footwear revenue increased by 12%, apparel by 9% and equipment by 8% in that region. Nike expected China to become its second largest market in the near future. In China, the basketball market was proliferating whereas in India the cricket market was strong. The popularity of basketball in China has been increasing. Nike, a globally acclaimed brand of basketball shoes can definitely leverage its brand strength in China. As Nike is already an established brand name the Chinese consumerswould recalls the brand easily and prefers Nike products over its competitors. To increase
Retail Strategy of Nike

Nikes retail business was based on the traditional company-wholesaler-retailer-end customer structure. In addition, it used to sell its products directly to the customers through company owned retail outlets (Niketown), factory outlets and the e-commerce division. However, in 2006, the company felt that the retail stores that were selling Nike products lacked in differentiating the brand Nike and were doing little to make the consumers buying experience special. Sales from some of Nikes major retailers, namely Foot Locker and Finish Line, decreased during the second half of 2006. Nike doesnt really have a choice, the stores (100 new company owned retail stores) not only can help showcase Nike products, but theywill also show retailers how its done17, remarked an analyst. Also, heightened competition in the US and European market compelled Nike to give its stores a fresh look. As consumers have a much greater buying power than before due to
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increased competition, focus on shopping experience has become a matter of prime importance and has been considered as a critical success factor for the organizations. Consumers have never held as much power as they do today, and clearly the power has shifted to consumers18, remarked Parker. Out of the 100 new stores, 50 stores were to be located in the US. The rest were to be located in UK, Japan, China, Russia, India and Brazil.
contemporary. Redistribution of land in the first case leads to equity and helps the rural population to survive. The question is for sustaining in business as is the case of Nike. Both the cases are designed in the light to discuss this shift that conforms to the theme.
4.
References
1.
2.
Conclusion
In both the above cases I have tried to show a shift of management strategy from the traditional to the 3.
International Business Competing in the Global Market Place by Charles WL Hill and Arun K Jain Cultural Consequence: Comparing Values, Behavior, Institution and Organization Across Nations Sage Publication ,2nd Edition April 15 2001 Sustainable development: economics and environment in the Third World David William
5.
Pearce, Edward Barbier, Anil Markandya,First printed by Edward Elgar Publishing Limited Alleyne Sonia, The celebrity sell: advertisers use black celebrity endorsers to pump up sales - Special Report, http://findarticles.com/p/articles/mi_m1365/ is_2_33/ai_91040607/pg_2, September 2002 Nike Inc. Company Profile, http://biz.yahoo.com/ic/14/14254. html Holmes Stanley, Can Nike Do It? http://www.businessweek. com/bwdaily/dnflash/content/ feb2007/db20070206_233170. htm, February 7th 2007
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Research on Operational Strategies for SSI in Chemical Sector

Dr. Vandana Mathur (Programme Coordinator) Amity Business School The Operational Strategies of a Small Scale Industry denes its business operations. It includes plans for ordering, storing, selling, and producing. A service company describes how its services are offered and performed. Essentially, the objective of this section is to walk the reader through the process of daily business operations. The operations strategies generally includes responsibilities for handling specic tasks, physical setup for the business, inventory details, manufacturing details, pricing details, safety precautions, outsourcing to subcontractors or freelancers. The key to the operations section of your business plan, however, is not only to explain how you will do business but to explain your strategies and how they best facilitate the type of business you plan to do. Your reasoning behind the operations plan is as important, if not more so, than the actual description of how business will be conducted. Nowadays every company is trying to spread their wings in the global and domestic markets, for this they are using various business strategies, be it marketing or manufacturing. There are many manufacturing innovation process like TQM, TPM, QFD, JIT etc and optimization strategy which combines Asset Utilization and Process Optimization. Although this strategy is applicable, the approach is discussed here with respect to polymer sheet manufacturing operations. This study has the purpose of testing the importance of consistency between manufacturing strategies and practices and the Asset Utilization model demonstrates the efcient equipment utilization along with identication of improvement opportunities so that better business performances can be achieved. The overall strategy of predictive model development is to synthesize a model based on existing data both qualitatively and quantitatively, to identify the main effect of variables affecting the principal efciency constraints identied by AU and process optimization framework and calculations employed to rene this model using the designed experiments to facilitate the development of a proactive optimization strategy for eliminating the constraints. A brief of the taguchi method and an empirical test has been conducted & compared on the data sets of 3 different countries and gap analysis is also noted. Introduction
Chemical industry is one of the oldest industries in India. It not only plays a crucial role in meeting the daily needs of the common man, but also contributes significantly towards industrial and economic growth of the nation A basic and first level definition of manufacturing excellence is making product to customer specification in the most cost effective manner with efficient use of resources (equipment and people) and delivering to the customer on time. Numerous articles and books have been published on manufacturing excellence, which typically encompasses many three letter manufacturing innovation approaches such as BPR (Business Process Reengineering), TQM (Total Quality Management), TPM (Total Productive Maintenance), QFD (Quality Function Deployment), CAM (Computer Aided Manufacturing), CAD (Computer Aided Drafting), JIT (Just In Time). In order to be more competitive and profitable almost all companies are using these strategies nowadays. Manufacturing strategies consists of two elements, the manufacturing task and the pattern of choices. First
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deals with competitive priorities such as quality, cost, flexibility etc, while second is considered with manufacturing structure and infrastructure that company makes to achieve manufacturing tasks. There have been many theoretical and empirical researches to investigate relationship between manufacturing strategies, practices and performances. This is to see whether a consistency-performance relationship can be generalized. Consistency measures along with other strategy and implementation measures are then compared to investigate which measures are more effective to differentiate high & low performance ones. Strategically important activities should be given more importance and under allocation of manufacturing resource should be avoided to achieve a more balanced and cost effective use of them. . Five basic objectives manufacturing excellence are: of Chemical Industry is an important constituent of the Indian economy. Its size is estimated at around US$ 35 billion approx., which is equivalent to about 3% of Indias GDP. The total investment in Indian Chemical Sector is approx. US$ 60 billion and total employment generated is about 1 million. The Indian Chemical sector accounts for 13-14% of total exports and 8-9% of total imports of the country. In terms of volume, it is 12th largest in the world and 3rd largest in Asia. Currently, per capita consumption of products of chemical industry in India is about 1/10th of the world average. Over the last decade, the Indian Chemical industry has evolved from being a basic chemical producer to becoming an innovative industry. With investments in R&D, the industry is registering significant growth in the knowledge sector comprising of specialty chemicals, fine chemicals and pharmaceuticals. The Indian Chemical Market Segment wise is as under: Segment Basic Chemicals Specialty Chemicals High End / Knowledge Segment Total Market Value (billion US$) 20 9 6 greater customer orientation. Even though India enjoys an abundant supply of basic raw materials, it will have to build upon technical services and marketing capabilities to face global competition and increase its share of exports. As the Indian economy was a protected economy till the early nineties, very little large-scale R&D was undertaken by the Chemical industry to create intellectual property. The Industry would, therefore, have to make large investments in R&D to successfully counter competition from the international chemical industry. India has a number of scientific institutions and the countrys strength lies in its large pool of highly trained scientific manpower. India also produces a large number of fine and specialty chemicals, which have very specific uses and are essential for increasing industrial production. These find wide usage as food additives and pigments, polymer additives, antioxidants in the rubber industry, etc.
match throughout demand----make only what is needed reduce inventory maintain high quality throughout the operation reduce lead times reduce operating expenses
Literature Review
The year 1998 has been a year of grievance for the Indian chemical industries. Throughout the year, representatives of the Indian units have been complaining about the product dumping from abroad, falling demand from the Indian consumers, lack of understanding of the bankers and the financial institutions and above all the critical attitude of the environmentalists towards their problems. One thing that is clearly evident is that considerable over-capacity in the chemical industry has been built up in the global arena. The frantic bid of the multinational companies to create capacities in South East Asia and China have been only due to their expectations that the massive fresh demand would arise for the various chemical and petrochemical products only in the
Indian Chemical Industry Scenario

Chemical Industry is one of the oldest industries in India, which contributes significantly towards industrial and economic growth of the nation. It is highly science based and provides valuable chemicals for various end products such as textiles, paper, paints and varnishes, leather etc., which are required in almost all walks of life. The Indian Chemical Industry forms the backbone of the industrial and agricultural development of India and provides building blocks for downstream industries.
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The Indian Chemical Industry comprises both small and largescale units. The fiscal concessions granted to small sector in mideighties led to establishment of large number of units in the Small Scale Industries (SSI) sector. Currently, the Indian Chemical industry is in the midst of a major restructuring and consolidation phase. With the shift in emphasis on product innovation, branch building and environmental friendliness, this industry is increasingly moving towards
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Asian regions in the coming years. The multinational companies, by creating additional capacities in these regions, have sought to meet such projected increases in demand. A careful Introspection by the Indian units would lead them to the conclusion that the country has to make a careful choice of the products to manufacture and take buy or make decision with regard to several of them. There is no need to produce everything on earth. Obviously, the focus has to be made on specific sectors such as agro based projects, mineral based projects, pharmaceuticals and those projects, where economic capacity would not be large and India may have some technological strength. quoted by N.S. Venkataraman for Chemical Business; Feb99, Vol. 13 Issue 2, p11 Some farsighted companies with vision, however, have wisely recast their organizational structures with combinations of tailor-made strategies and have continued to grow and prosper. They have identified their strengths, overcome their weaknesses, grabbed the opportunities opened up by the new policy framework and met potential threats head-on. A few of the noteworthy strategies that have yielded positive results are listed below: integrated operations from crude oil refining to industrial polymers and textiles.
10. Cost-effective
3. Enterprise resource planning
(ERP). Hindustan Lever, Vam Organic Chemicals. joint ventures for technology upgradation, export promotion and strong brand image.--Clariant ColourChem. Business Units (SBUs) in place of traditional operating divisions for focused growth and competitiveness.-Hindustan Lever, Clariant Colour-Chem, Vam Organic Chemicals. redesigning of manpower structure with emphasis on accountability and performance based rewards; judicious pruning of deadwood and fat through attractive VRS; career path planning supported by relevant training.--Hindustan Lever, Clariant Colour-Chem. 9000, ISO 14000 certification and TQM for international recognition and export promotion...-Hindustan Lever, Vam Organic Chemicals. for technology absorption and improvement, process development, cost reduction, market research etc.-Hindustan Lever, Clariant Colour-Chem, Vam Organic Chemicals. with focus on monitoring of variable costs and fixed costs throughout the company and a dynamic pricing strategy for improving profitability.-Hindustan Lever, Reliance Industries, Vam Organic Chemicals, Grasim..
4. Synergistic
process automation and computerized corporate functions for real-time monitoring of organizational performance.-All successful companies. Quoted by U.B. Rao, Prashant Consultancy Services, Mumbai; Chemical Business; Nov99, Vol. 13 Issue 11, p8
OBJECTIVES
1. To
test the importance of consistency between manufacturing strategies and practices in achieving better business performances in a Small Scale Industry.
5. Strategic
2. To match throughout demand 3. To produce and maintain

high quality throughout the operation. times of operation of SSI.
6. Drastic
4. To reduce inventory and lead
Research Methodology
Research Tool
The data was collected through personal interviews using a structured Questionnaire, Scale Reliability method, GAP analysis, Discriminant analysis
7. Quality focus through ISO
8. Centralized R & D set-up
Sampling Design
Polymer sheet manufacturing companies in Kanpur
1. Acquisitions,
mergers, demergers and strategic alliances in line with core competencies of the company. Notable examples are Hindustan Lever, Reliance Industries, Grasim, Indian Rayon, Vam Organic Chemicals, Clariant ColourChem. and forward integration. Reliance Industries are a striking example of
Primary Research
We took the data in the form of questionnaire get in filled by the existing and new clients and many of the organizations who do use the services but are being served by other companies.
9. Easily understandable MIS
2. Backward
Questionnaire Design
We designed the questionnaire
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based on the results of the feedback we received on the first day of survey analysis. Industry is highly capital intensive, cost of finance in India is very high; interest rates are 14% - 15% p.a. as compared to 2% to 6% prevailing in developed countries. of backward areas. However, this has created locational disadvantages, such as extra transport cost for raw materials as well as finished products. Cost of raw materials and catalysts in India is also high as compared to international levels.
DATA ANALYSIS
SWOT Analysis of RESEARCH ON OPERATIONAL STRATEGIES FOR SSI IN CHEMICAL SECTOR The Task Force carried out a SWOT analysis of the Industry. This analysis comprised evaluation of individual Sub-sectors also. The summary observations of the Task Force based on this analysis are given below:
Strengths
A diversified manufacturing base having a capacity to produce quality chemicals from World class plants. Vibrant downstream industries in different segments. Competitive Core Industries essential for the development of chemical industries. Capability to produce World class end products. Strong presence in the export market in sub segments such as Dyes, Pharma and agrochemicals. Large domestic market. Major raw material component sources within the country. Good R&D base and quality human resources
Infrastructure: India ranked 55th in infrastructure development in the global competitiveness report 1999. Infrastructure facilities are not of world class. Transport and communications are complex resulting in delays and slow movement of goods. Inadequate port facilities result in high demurrage costs. For example turn around time for Vessels is an average of eight days in India as against one or two days in Singapore. Scale of production: Due to earlier policy of import substitution and industrial licensing, Chemical plants in India were built to cater to the domestic requirements. The per-capita consumption in India is less as compared to other countries and hence plant sizes are not comparable to World scale operations. Major Competitors abroad enjoy economies of scale advantage. Technology: In the days of sheltered economy, upgradation of technology was not critical. Bulk of the Pharmaceutical Industry has grown by concentrating on processes modification rather than basic research. Investment in R&D with a view to generating intellectual property is absent. A change of mind set is needed to invest in R&D to be able to sell value added product and compete in developed countries. Cost Disadvantages: Industrialization was spread throughout the country to redress regional imbalances as also for the development
Multiplicity of Taxes: Indian exporters at present are placed at a considerable disadvantage vis-a-vis their foreign competitors on account of multiple levies (various taxes and duties like sales tax, turnover tax, Octroi, service tax, electricity duty and cross subsidies, etc.). Value Added Tax (VAT) must replace multiple taxes to create a level playing field. Labour Laws: Labour & Industrial relation laws at present do not allow flexibility in deployment of labour. This discourages modernization and investment in technological changes and eventually leads to industrial sickness thus adversely affecting workers as well.
Opportunities
A decade of economic reforms has tested the resilience of the Indian Chemical Industry. Individual enterprises have realized their weaknesses and are gearing up to face the new challenges. Success stories in dyes and Agrochemicals have boosted the confidence to take on global competition squarely. On WTO front, India should seek greater market access. The markets in the developed countries are opening up and India can take advantage of this. The signing of the IPR protocol gives an opportunity to create Intellectual capital by investment in as well as R&D collaboration with national
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Weaknesses
Cost of Power: Very high cost of power, unreliability of supply and frequent interruption. Transmission and distribution losses are very high. Cost of Finance: Chemical
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laboratories. A large number of products are going off Patent. India can pursue the possibility of producing these on a more economic scale as compared to other countries. an opportunity to generate significant value addition. This however would require substituting their exports in raw form by manufacturing higher value derivatives. users would buy their requirements from the most competitive source. Unless the Indian industry acquires competitiveness, it may face extinction.
In certain categories of chemicals, we do have advantage for exports (Dyes, Pharma, Agrochemicals). By creating strategic alliances with countries like Russia and CIS countries. With the know how available in the country, there is a tremendous potential to grow and increase exports in dyestuff and Agrochemical market. India has the capacity for major value addition being close to Middle East. This is a cheap and abundant source for Petrochemicals feedstock. Availability in abundance of raw materials for Titanium Dioxide (TiO2) and Agro based products like castor oil offer Machine C D F G H I M O Availability (%) 78 95 64 95 81 93 86 97
Threats
As per the WTO agreements, peak customs duty has been brought down. Quantitative restrictions for imports have been removed already. Most of the chemicals are now in the Open General List (OGL) of imports. As a result imports of chemicals, intermediates and end products are freely allowed in the country. Even at these reduced levels of import duty tariff levels in India for most chemicals are significantly higher than other countries manufacturing the chemicals. There would certainly be pressure on the Government to reduce these tariffs levels. In case these levels are reduced competition in the Indian Chemical Industry would become more intense. The Run time efficiency (%) 96 99 95 98 96 98 97 99
Au Analysis For A Set Of Polymer Machines

The AU calculations were performed for a set of eight polymer machines within the sheet manufacturing operations using nine consecutive months of process data. The datas are shown in the table. Most of the down time was caused by unscheduled maintenances and scheduled maintenances activities. There was little idle time across the set of polymer machines evaluated. Run time efficiency values approached 100%, ranging from polymer 95 to 99%. High values for this parameter were expected, because this is a continuous operation with a large number of dedicated machines and minimal product changes.
Run speed Yield (%) efficiency (%) 75 88 74 84 91 85 85 79 68 80 69 85 72 79 81 85
Asset utilization (%) 38 66 31 66 51 61 57 64
The run speed efficiency values ranged from 74 to 91%. A major root cause of running at lower speeds was the occurrence of quality problems at the higher operating speeds. Yield values ranged from 68 to 85%. Time spent running any product that does not meet customer quality satisfaction affects this metrics. The resulting AU numbers ranged from 31 to 66%. This shows a difference in utilization of approximately
35%across the machine evaluated, examining the root causes of quality losses further pinpointed specific yield improvement opportunities by quantifying the types of waste and reject generated across the machines.
quantifying the types of waste and reject generated across the machines.
Findings
The root cause of quality losses pinpoints specific yield improvement opportunities by
Higher the congruence between the strategic orientation and manufacturing practices a company has, the higher its profit to sales ratio. Industry difference may have a higher effect on inventory turnovers than the gap variable.
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Conclusions
This study was conducted for the purpose of empirically testing the importance of consistency between manufacturing strategies and practices in achieving better business performances. An empirical test was conducted on the data sets from varied manufacturing potential and competitive companies. The AU model demonstrates that efficient equipment utilization can be assessed and serves as the principle identification metric by which improvement activities can be focused on areas where the greatest benefit to the operation can be accomplished. The Process optimization framework, made up of three parallel activities and a designed experiment, established the process-product relationship. This framework also served to quantify the effect of process conditions on product attributes and selected key process parameters for the verification strategy. One of the most significant results from the parallel activities in this work was the development of a prediction model, from pre-existing data that capably established the relationship between process conditions and qualitative product attribute data Most importantly, because of this manufacturing optimization strategy, the polymer sheet manufacturing operation can be said to be a process based on quantifiable science instead of a process that is based as an art. From the capacity gained through the AU process for the polymer sheet manufacturing operations we could infer that, Polymer sheet capacity gain provides two opportunities for the polymer operations. First, if additional capacity is needed, a capacity increase can be realized without additional capital expenditures. Second, if there is no need for
additional capacity, the overall number of machines in operation can be reduced, providing savings in environmental and operating costs. This manufacturing operation could be applied to other manufacturing operations, which are set up as continuous, batch, and job match operations. Taguchi Methods is a system of cost-driven quality engineering that emphasizes the effective application of engineering strategies rather than advanced statistical techniques. It includes both upstream and shop-floor quality engineering. Upstream methods efficiently use small-scale experiments to reduce variability and find cost-effective, robust designs for large-scale production and the marketplace. Shop-floor techniques provide cost-based, real-time methods for monitoring and maintaining quality in production. Taguchi Methods allow a company to rapidly and accurately acquire technical information to design and produce low-cost, highly reliable products and process. Taguchi Methods require a new way of thinking about product development. These methods differ from others in that the methods for dealing with quality problems center on the design stage of product development, and express quality and cost improvement in monetary terms. Here we have also learned from this study is that the gap variable indicating inconsistency between manufacturing strategy and implementation practices play an important role than the strategy or implementation variable in discriminating superior and inferior performance groups. From the data obtained from D H Polymers & J S Polymers, the gap variables of flexibility, quality and cost show more important
contribution for discriminating between business performance groups. But none of these gap variables succeeds to outperform other strategy or implementation variables in discriminating between performances of Bajaj Polyset Pvt. Ltd. whose discriminating coefficients higher than the other two companies. From these we can find that the overall discriminating power of the proposed gap variables can be considered to be significant based on this finding.
Recommendations
A manufacturing optimization strategy with a unique combination of tools has been presented and is comprised of an AU model and a Process optimization framework using multivariate statistical analysis. The AU model demonstrates that efficient equipment utilization can be assessed and serves as the principle identification metric by which improvement activities can be focused on areas where the greatest benefit to the operation can be accomplished. The Process optimization framework, made up of three parallel activities and a designed experiment, established the processproduct relationship. This framework also served to quantify the effect of process conditions on product attributes and selected key process parameters for the verification strategy. One of the most significant results from the parallel activities in this work was the development of a prediction model, from pre-existing data that capably established the relationship between process conditions and qualitative product attribute data.
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Fourier analysis was employed for the quantitative evaluation of thickness profile and dramatically improved the diagnostic utility of thickness profile for data monitoring. Most importantly, because of this manufacturing optimization strategy, the polymer sheet manufacturing operation can be said to be a process based on quantifiable science instead of a process that is based as an art.
2. McAdam,
Rodne; OHare, Cormace; An improved BPR approach for offline enabling processes: A case study on a maintaining process within the chemical industry, Business Process Management Journal, Vol. 4 No. 3, 1998, pp. 226-240 Services, Mumbai; Corporate reengineering strategies in Indian chemical industries Chemical Business; Nov99, Vol. 13 Issue 11, p8 Manufacturing strategy, environmental uncertainty and performance: A path synthetic model
5. Utterback, James; Kerkhoff, Jonell;
Eager, Thomas.W; A Systematic Strategy for Optimizing Manufacturing Operations Production and operations management, vol.7, spring 1998
3. Rao U.B.; Prashant Consultancy
References
1. Miller, J.C.; Roth, A.V.; A
taxonomy of manufacturing strategies, Management Science
4. Swamidass, P.; Newell, W.;
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Retrospective Analysis of the Role of Organized Retail in Making India Emerging Super Power
Dr. Parul Khanna (MBA, Ph.D Assoc. Prof. & Dean R&D) Institute of Management & Technology,Faridabad Mr. Lalitya Srivastava (MBA, Research Scholar) Singhania University, Rajasthan We take a peek into the organized retail sector of India. It started making its presence felt nearly a decade after the rst lot of entrepreneurs set up shop. A brief introduction and evolution shows how the organized retailing changed its gears over the period from Pop-Mom stores to chain stores across the length and breadth of India. The market size and related details gives a statistical view of increasing market in a few major areas of retailing. The major market players who enlivened the present caricature of retail sector are presented briey along with statistics. The changing scenarios of Indian consumers give a proof to the potential opportunity in the retailing arena. SWOT and its subheads take you to the crux of analysis into retail industry. Out of which we formulated the future prospects. One major lifesaver of the Indian retailing is the advertising and promotional strategies; which comes out with innovative ways to win consumers over and keep them permanently happy. FDI in retail has been contentious issue and may face resistance, given the perceived political scenario. FDI will be a dening moment for Indian retail and how government policies effect the retail industry is given briey to the end. This article focuses on the potential of Retail sector in India and its contribution in making India the next super power. Introduction
The word Retailing refers to any activity that involves the direct sale to an individual customer or end user. Retailing has been the most active and attractive sector of the last decade. While the retailing industry itself has been present through out the history in our country, it is only the recent past that has witnessed so much dynamism. Retailing arena today is very different. Its the latest bandwagon that has been witnessing hordes of players leaping onto it. While international retail store chains have caught the fancy of many travelers abroad, the action was missing from the Indian business scene, at least till recently. The emergence of organized retailing in India has more to do with the increasing purchasing power of buyers, specially post liberalization, increase in product variety, and the increasing economics of scale, with the aid of modern supply and distribution management solutions. environments entering the market directly to ensure exclusive visibility for their products. 3) Professional chain stores coming up to meet the need of the manufacturers who do not fall into either of the above categories. 4) Attractiveness, accessibility and affordability seem to be the key offerings of the retailing chain. 5) In our presentation, we shall be restricting ourselves to the Organized Retailing Sector. 6) Organized retailing mainly comprises of Malls, Branded Stores, Specialty Stores, Departmental Stores, and Discount Stores etc.
Factors responsible for retail revolution:
The current retailing revolution has been provided impetus from multiple sources. These revolutionaries include many: 1) Conventional stores upgrading themselves to modern retailing. 2) Companies in competitive
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Evolution
In India the retail market is as old as in the global context. However, the concept organized retailing is comparatively new. Retailing has been one of the prominent driving forces in business in India. Traditionally it has been dominated to a large extent by the unorganized sector. But the growth of the organized sector has been steadily increasing especially after liberalization of the Indian economy. The process started with the establishment of the Shoppers Stop outlet at Andheri, Mumbai in 1991.Then, other organized retailing stores like Kids Kemp, Crossroads, RPGs Music world, Pyramids, Reliance, Big Bazaar, etc followed the trend.
in Indias retail market. The latest entry is that of supermarket giant from South Africa, tied up with mall developer Nirmal Lifestyle in Mulund.
Retail segments Growth:
Food retailing has shown very rapid growth compared to other sectors. This sector has doubled during the last two years and is expected to grow to more than 30 percent in the next five years. No major national players have emerged in this industry yet and south still remains home to three of the largest players in the industry Food world, subhiksha and Margin free. Apparel retailing takes a major share of Pie. This will be driven by more sales through multi-brand outlets (MBOs) and popularity of private labels. One shop selling also saves time. Consumer durable is still in fragmented state. However, large format stores are appealing to people. In the south, organized retail has a strong foothold. Vijay Sales and Akbarallys are the main players in Mumbai. A new trend has been sale of BigBazaar. Shoppers Stop too has added consumer durables to its portfolio in certain outlets. Raymond the clothing major has announced a proposed investment of Rs15 crores in a venture that will undertake consumer durables retailing. These developments may mark the beginning of a new era in consumer durables retailing but only time will tell if organized retail can capture a larger share of the durable retailing market. Manufacturer retailer stores form the largest category followed by chain stores. Single large stores will continue to be the key players though their growth rates may not be as high.
the right mix of its strengths and the opportunities in the market place. The globalization, liberalization, FDI, changing values and life styles, increased disposable income and other factors in Indian business environment have made it the right hit for the retail industry to grow to its peaks with an effort to make it the largest contributor in GDP of India. Thus to know the industry better, The SWOT is better understood as below.
Strengths:
1. 2. 3. 4. 5. 6. 7. 8. 9.
Market Dynamics
The change that organized retail has brought about is evident from how it has transformed the neighborhood grocery or kirana store. Gone are the dust-coated shelves and cluttered displays and in place are neat rows of the latest products and spruced up appearance and attentive staff. Organized retail accounts for merely 2% of total retail market. The pace of development is, of course, still below the desired level but the phased growth has been strong enough to ensure that retail does not go the way some of the other sunrise industries did following over-investment. While big retailers like Shoppers Stop, Pantaloon, Subhishka, Food World do get some preferential treatment from large suppliers the relationship between the tow is tense to say the least. Retailers need to get the customer to spend more at their outlets before they can turn the tables on manufacturers. With mere 2% share there is precious little that organized retailing can do to get better terms from manufacturers. International retailers too have evinced interest
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Eliminates links in the purchasing chain (direct manufacturer-retailer-customer chain). Technology driven (hence less error prone) Consultative selling Presence of big industry houses (Tatas, Rahejas etc.) which can absorb loses. Consumer service. Variety of products under one roof. Authentic products with Guarantee (some cases) Pleasant shopping ambience. Research driven plus competent manpower.
Weaknesses:
1. 2. 3. 4. 5.
Lowest per capita space in the world with 2 sq.ft/1000 (congestion) Prices more as compared to specialized shops (in India). Reluctance of people (Middle and lower class) Non-availability of huge land spaces at prime slots (especially in the metros) High overhead and labor costs.
Opportunities:
1. 2. 3. 4. 5.
Indian Retail Industry:
The strategic fit that the retail industry in India is looking at is
Lifestyle changes or status consciousness (NRS Survey) Ready availability of real estate in smaller towns. Improved sourcing options. Increasing time pressure for Indian woman. Focus on more quality, variety
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6. 7. 8. 9.
and easy availability under one roof. Increase in disposable income (NRS Survey) Feel and touch shopping. No foreign competition. Increasing media exposure to brand.
there is an increasing pressure on time with very little time available for leisure. So under these circumstances people are preferring the convenience of one stop shopping. They are also seeking speed and efficiency in processing, as a result. Being more aware, consumers are on the lookout for more information, better quality, hygiene and as well as increased customer service. These changes in consumer behavior also augur well for the retail industry.
Threats:
1. 2. 3. 4. 5. 6.
Roadside bargains. Other retail outlets (organized and unorganized) Personal and homely attention at smaller Shops Availability of credit at other retail (unorganized) outlets. Competition from unorganized sector. Government policies.
Consumer Specic Factors:
urban and based on models emulated from the US. What is missing is a clear connection to Indian realities. There is a huge untapped potential in the rural market for retailing. Indias rural market stated as a percentage of world population is 12.2 percent. Rural households in India form about 72 percent of the total households- a huge market. Even the current consumption of certain durables and non- durables by rural customers is more than that of urban consumers. Also literacy rates in villages have increased considerably, thus bringing about a shift in consumer tastes. The Hariyali Kisan Bazar (HKB), initiated by the Delhi-based DCM Shriram Consolidated Ltd, is one model catering to retailing in rural areas. It is located at a place close to Shahjahanpur, 167km from Lucknow. It is a retail store that specifically caters to rural people. It has targeted the farmers supplying sugarcane to the sugar mill next door as the main customer. In addition to providing functional products, it also provides farmers with certain other value added services like computerized transactions, touch-screen info kiosk, technical advisory services. Thus, whoever would follow their footsteps and go for retailing in the rural areas stand to gain a lot. The time to shift the gears and accelerate the pace of retail development has arrived and it is up to retailers and potential investors to get their show on the roads. Some retailers are doing this and have massive expansion plans in place.
Factors for Growth of Retailing Sector
Organized retailing is spreading and making its present felt in different parts of the country. Several growth drivers are responsible for this boom of retail industry. There has been an increase in the presence of MNCs. The industrial boom has led to the emergence of new residential areas with aggregation of professionals as well as rapid increase in the number of double-income households and growth of the rich/upper middle class with increased purchasing power. This has been combined with the increasing need for touch and feel shopping, especially for the large migrant population. All these factors have together acted favorably in nurturing the industry. One of the main influences in the growth of retail industry is the consumer pull. In fact this seems to be the most important driving factor behind the sustenance of the industry. With the increase in double-income households, working women,
Consumer response to supermarkets has been moderate because most do not have access to transportation to a supermarket and are still in the habit of buying fresh produce daily from local stores. This is mostly due to the proximity to homes and personal service of local stores. Self-serve supermarkets are a more recent phenomenon in India. These self-service stores stock a wide range of groceries, snacks, processed foods, confectionery items, and cleaning and personal care products. Many shoppers also have the perception that prices are higher at supermarkets because they are large, brightly lit, and air-conditioned. Higher-income consumers focus more on convenience and quality. In urban India, families are experiencing growth in income and dearth of time. More and more women are also turning to corporate jobs, which is adding to the family income but making lifestyles extremely busy. Rising incomes has led to increasing demand for better quality products while lack of time has led a demand for convenience and service.
Conclusion:
Rural Market Potential:
Indian retailing is currently largely
The task lying ahead of Indian retail is an onerous one. After grappling against the wild tides of the past decade, a few perseverant players have evolved into mature players and are confident of the
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way ahead. Plenty of opportunity exists and the formidable task is to tap this opportunity, in a unique country like India. The huge potential is being tapped in terms of customer walk into your store and buy products, customer experience and potential in terms of rural market existing untapped. The retail industry in India is witnessing a high level of organized business activity CRM, supply chain management, visual merchandising & customer loyalty programs are now buzzwords in the industry. With the current scenario of the organized retail industry in terms of acceptance by the customer and thus resulting in the high growth rates and incredibly increasing market share, Retail industry in India seems to be next big thing in Indian economy and contribute for making India the next super power in the years to come.
References:
13. Part VI Consumer Markets & 14. Hari Sud,Indias Economic Leap
Forward - Helped by Consumption Driven Middle Marketing
1. Books 2. Retail Management, A strategic 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.
approach, 10th edition, Barry Berman & Joel R Evan Kothari.C.R, Research Methodology, New Age (P) Limited, Second Edition, 2004. Pillai & Bagavathi, Marketing management, New Delhi, sultan Chand & Sons, 1999. David Gilbert, Retail Marketing Management, Prentice Hall, Second Edition, 2003. Retail Management, Swapna & Pradhan, Text and Cases. Journals Arjun Swarup,India`s Retail Revolution, Blog Globaleconomydeosmatter, March, 2007. Arpita Mukerjee, FDI in retail Sector: India , Academic foundation, 2005 Charles M Edwars,Roselle A Brown,Retail Advertizing and Sales Promotion,1959. E-Business,Hosted E-commerce Building Competitive Advantage for the Online Retailer, ET Govt to scan Bharti, WalMart deal: Nath. The Economic Times, November 28 ,2006
Websites:
15. * www.thehindubusinessline.com 16. *www.researchandmarkets.com/ 17. 18. 19. 20. 21. 22. 23. 24.
reports/236028/Indian retail industry strategies trends http://www.crm2day.com/ content/t6_librarynews_1 http://www.articlesbase.com/ small-business-articles/guidelines-for-retail-business * http://www.fibre2fashion.com/ industry-article/4/327/businessintelligence-solution * http://www.globalshiksha.com/ retail+business+intelligence/ search * http://www.indiaretailing.com * http://www.tsmg.com/download/article/TSMG_Tata_Review-June_2006.pdf * http://cs.stanford.edu/people/ thathoo/retail.pdf * http://www.indiaretailing.com/ retail-report.asp
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Strategic Corporate Social Responsibility Innovative Marketing Tool for Competitive Advantage
Dr. Parul Khanna (MBA, Ph.D Assoc. Prof. & Dean R&D) Institute of Management & Technology,Faridabad Ms. Chhavi Mathur (Research Scholar) Singhania University, Rajasthan In last few years there has been a sea change in the nature of the triangular relationship between companies, the state and society. Companies are under increasing pressure from society to take their social responsibility. Given the irrefutable, clear and direct relationship between the social performance of a corporation and its reputation, sales, brand and indeed overall value and as this correlation gets stronger as both the size of the business and the value of the brand increase, organisations large and small are scrambling to both understand Corporate Social Responsibility (CSR) and implement programmes to improve their environmental, social and ethical performance. CSR is the point of convergence of various initiatives aimed at ensuring socio-economic development of the community which would be livelihood oriented as a whole in a credible and sustainable manner. A number of factors are driving the increased adoption of CSR practices in the corporate sector. For many companies, being a good corporate citizen is a vital aspect of their identity, values and vision. Market forces are also propelling many rms to go beyond compliance; as a result CSR is emerging as a hard commercial factor, linked directly to prots and brand value. Business today needs a stable social environment that provides a predictable climate for investment and trade. CSR is the means by which business contributes to that stability. By establishing and maintaining a corporate agenda which recognises social priorities and is tailored to meet them, business displays its human face to consumers, communities and opinion leaders. The key focus of the research paper is to appreciate the application of fundamental Marketing principles on CSR practices. This means rigorously focusing on priorities, allocating nances for treating CSR strategically as an investment from which tangible and intangible returns are expected. Key Words: Corporate Social Responsibility, Strategic Approach, Competitive Advantage, Marketing Management Introduction:
Today, we live in an age in which companies, businesses and society are more connected and interactive than ever before in the past. Corporations are more aware of their role towards the society. They are responsible bodies that feel a sense duty towards commonwealth and the environment that comes with a growing realisation that they, as an integral part of this society themselves, can contribute to its upliftment and empower of the entire country in turn. And consumers and citizens campaigns can make all the difference. This is the foundation thought behind the golden handshake between tripartite companies, society and nation;
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Corporate Social Responsibility or CSR. In one of the recent natural disasters to hit India, Tsunami, the devastation and misery caused by the sudden, massive inundations of the Indian Ocean touched all. The devastation was huge and millions of people around the world spontaneously made huge donations in order to make immediate relief possible. Not only did private individuals put their hands into their pockets, but also many corporations and governments made donations on a very large scale. What was remarkable is how quickly so much aid has been made available. This was the fund that brought tsunami affected areas back on their feet. That was Corporate Social Responsibility in action. In so many other ways one gets to see CSR in practice---environment friendly projects, constructing schools, encouraging education--- just some of the ways that organizations are giving back to the community, a part of their profits in a manner that the community benefits. In comparison to individual efforts and even just government effort is not enough to bring changes at a pace that it is actually needed. Fortunately, with the popularity of CSR, more and more companies now perform in non-financial arenas such as human rights, business ethics, environmental policies, corporate contributions, community development, corporate governance, and workplace issues. Now, social and environmental performances are considered side by side with financial performance. From local economic development concerns to international human rights policies, companies are being held accountable for their actions and their impact. Companies are also more transparent in disclosing and communicating their policies and practices as these impact employees, communities, and the environ118
ment. Making profits is about what you do whereas CSR is about what you are. If one accepts that CSR is becoming an essential ingredient of any successful business, it stands to reason that in future all stable and sustainable businesses will have developed strategies for managing their social impact and will have incorporated such thinking into every level and aspect of their business. However, even if one is armed with a complete understanding of what CSR is and truly intends to improve CSR in their own organisation, the practical application of a lasting and effective corporate citizenship programme is a significant undertaking that will, by definition, affect all of an organisations internal and external stakeholders. Additionally, as societys expectations of the corporation steadily increase, to be taken seriously, companies must be able to show that their CSR strategy is more than good PR.
What is CSR?
In recent years, the corporate sector has grown in economic and social importance in the developed world as state economic control has shrunk. Companies have become larger and more international thereby raising new questions over their accountability and societal concerns over corporate activities are now wider in scope and more in evidence. Consequently, in a world where power has shifted from the public to the private sector, the expectations which society has in relation to the environmental, social, and ethical responsibilities of companies have risen. CSR has quickly moved from a domain typically associated with anti-corporate non-governmental organisations (NGOs) and activist campaigners into a mainstream business issue which is now a crit-
ical determinant of trust in companies. With this development, CSR itself (also referred to as corporate citizenship) has naturally taken on a number of different meanings. Although these definitions are similar, when attempting to identify the essential components of a successful programme for improving corporate social responsibility it is important to explore the similarities and differences among the definitions used. To that end, some of the more common and generally accepted definitions of CSR are as follows: Corporate Social Responsibility is the term used to refer to a whole range of obligations towards society that business organisations are expected to acknowledge and to reflect in their actions. These include things such as fair treatment of employees, customers, suppliers; respect for human rights; being good corporate citizens of the community in which they operate; and conservation of the natural environment; Corporate social responsibility refers to the overall relationship of the corporation with all of its stakeholders. These include customers, employees, communities, owners/investors, government, suppliers and competitors. CSR is described as how business takes account of its economic, social and environmental impacts in the way it operates maximizing the benefits and minimizing the downsides. In other words, it is about taking responsibility for the impact of our business on all those who are affected by it. According to World Business Council for Sustainable Development (WBCSD), CSR is the continuing commitment by the business to behave ethically and to contribute to economic development while improving
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the quality of life of the workforce and their families as well as local community and society at large In its broadest categories, CSR typically includes issues related to business ethics, community investment, environment, governance, human rights, the marketplace and the workplace, because all organisations have an impact on the society and the environment through their operations, products or services, and through their interactions with key stakeholder groups including employees, customers/ clients, suppliers, investors and the local community among others. This is demonstrated in the figure 1.
improves quality of life for all. Effective corporate responsibility requires a good level of commitment from the entire organisation and especially the top management who can ensure that not is CSR practiced but also practiced well.
tool. This limits the benefits that could be achieved through focusing on opportunity rather than risk. Socially responsible business is not about restricting business growth; its about creating new opportunities, the better way of doing business. According to a world Economic Forum Survey of CEOs and leaders (Voice of Leaders survey), corporate brand reputation outranks financial performance as the most important measure of success. Companies with public commitment to ethics perform better on 3 out 4 financial measures. On an average, CSR-oriented companies also have 18% higher profits. If corporations of innovation and competitive advantage consider CSR using the same frameworks that guide their core business choices, they would discover that CSR returns can be potent source of innovation and competitive advantages. The task is to apply business principles and practices to make CSR sharper, smarter and focused on what really matters. The corporate sector is sated with examples of companies where CSR practices have not only established them as credible enterprise but also brought them business benefits in terms of cost savings, reducing risk, increasing revenues, building reputation, developing human capital improving access to capital among others. A greater need for CSR in India has brought companies who initiate and participate in CSR activities into the limelight and increased public expectations of them, according to the Nielsen India Corporate Image Monitor 2008, a study designed to measure peoples perceptions of the image and reputation of Indias leading companies. Public expectations of Corporations are on the increase as stakeholders see the significant impact
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Importance of Corporate Social Responsibility
Every business needs to recognise the impact of its operations on the world. The way they do business dictates the footprint they leave behind. If they take the time to maximise the benefits and minimise the downsides then they can help to create a better world. Corporate social responsibility in business isnt just a do-gooders charter or latest example of regulatory overdrive. It is about creating sustainable businesses through the best possible relationships with their communities and stakeholders. The expectations of the traditional stakeholders shareholders, customers, and employees are increasing and so, too, is the list of groups wanting to know how an organisation is run. As a result, more and more companies are working harder not only to make a positive impact on society and the environment through their operations, products or services, but also to demonstrate it to these groups. A comprehensive set of policies, practices and programmes incorporated throughout a business can increase productivity, contribute to competitiveness, improve staff recruitment and retention rates and create a more positive corporate image. Unfortunately, many companies only use the responsible business approach as a risk management
Figure 1: Areas of Corporate Social Responsibility CSR involves addressing the legal, ethical, commercial and other expectations society has for business, and making decisions that fairly balance the claims of all key stakeholders. Effective CSR aims at achieving commercial success in ways that honor ethical values and respect people, communities, and the natural environment. Simply put it means what you do, how you do it, and when and what you say. Corporate Social Responsibility is increasingly becoming an important aspect of corporate behavior. Corporate contribution to society, environment and business when guided by enlightened self-interest
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they are having in various spheres, be it education, health infrastructure, environment conservation, etc. The publics confidence in organizations undertaking socially beneficial projects is greater than their confidence in other channels that try to bring about positive social change, said Vatsala Pant, Associate Director, Consumer Research, The Nielsen Company. CSR is an effective way of building goodwill for a company. More than 50 percent of respondents felt that Corporates are honest towards their CSR activities. But the motive behind these activities is seen to be many, ranging from economic and tax benefits (47%), to enhance corporate reputation (45%), or to build a competitive advantage (30%), etc. 28 percent of respondents thought that Charity, either directly or via NGOs is the best way to demonstrate social responsibility. Other ways of engaging in socially uplifting activities considered beneficial by stakeholders is a written CSR policy (24%), actively involving employees in CSR activities (20%), and community work and providing employment to needy groups (both 12%). There is however a skeptical onethird of stakeholders who believes that CSR is publicity stunt for most Corporates. It is interesting to note that seven out of ten members of the general public are willing to pay a premium for products and services to enable a company to fulfill its CSR commitments. Considering the impact of CSR activities on a companys reputation, organizations will have to plot a developmental path for CSR integrating it with the rest of the business, continued Pant.
tions, along with their shareholderwealth maximisation goal. Nearly all leading corporates in India are involved in corporate social responsibility (CSR) programmes in areas like education, health, livelihood creation, skill development, and empowerment of weaker sections of the society. Notable efforts have come from the Tata Group, Infosys, Bharti Enterprises, ITC Welcome group, Indian Oil Corporation among others. The 2010 list of Forbes Asias 48 Heroes of Philanthropy contains four Indians. The 2009 list also featured four Indians. India has been named among the top ten Asian countries paying increasing importance towards corporate social responsibility (CSR) disclosure norms. India was ranked fourth in the list, according to social enterprise CSR Asias Asian Sustainability Ranking (ASR), released in October 2009. According to a study undertaken by an industry body in June 2009, which studied the CSR activities of 300 corporate houses, corporate India has spread its CSR activities across 20 states and Union territories, with Maharashtra gaining the most from them. About 36 per cent of the CSR activities are concentrated in the state, followed by about 12 per cent in Gujarat, 10 per cent in Delhi and 9 per cent in Tamil Nadu. The companies have on an aggregate, identified 26 different themes for their CSR initiatives. Of these 26 schemes, community welfare tops the list, followed by education, the environment, health, as well as rural development. Further, according to a study by financial paper, The Economic Times, donations by listed companies grew 8 per cent during the fiscal ended March 2009. The study of disclosures made by companies
showed that 760 companies donated US$ 170 million in FY09, up from US$ 156 million in the yearago period. As many as 108 companies donated over US$ 216,199, up 20 per cent over the previous year. Although corporate India is involved in CSR activities, the central government is working on a framework for quantifying the CSR initiatives of companies to promote them further. According to Minister for Corporate Affairs, Mr Salman Khurshid, one of the ways to attract companies towards CSR work is to develop a system of CSR credits, similar to the system of carbon credits which are given to companies for green initiatives. Moreover, in 2009, the government made it mandatory for all public sector oil companies to spend 2 per cent of their net profits on corporate social responsibility. Besides the private sector, the government is also ensuring that the public sector companies participate actively in CSR initiatives. The Department of Public Enterprises (DPE) has prepared guidelines for central public sector enterprises to take up important corporate social responsibility projects to be funded by 2-5 per cent of the companys net profits. As per the guidelines, companies with net profit of less than US$ 22.5 million will earmark 3-5 per cent of profit for CSR, companies with net profit of between US$ 22.5 million - US$ 112.5 million, will utilise 2-3 per cent for CSR activities and companies with net profit of over US$ 112.5 million will spend 0.5-2 per cent of net profits for CSR. India Inc has joined hands to finetune all its activities falling under CSR. For this, it has set up a global platform to showcase all the work done by Indian firms. ConfederaMarch 2011 Vol. 1 Issue 1
CSR in India
Indian companies are now expected to discharge their stakeholder responsibilities and societal obliga-
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tion of Indian Industry (CII) and the TVS Group collaborated to form the CII-TVS Centre of Excellence for Responsive Corporate Citizenship in 2007. It provides consultancy services and technical assistance on social development and CSR. According to a National Geographic survey which studied 17,000 consumers in 17 countries, Indians are the most eco-friendly consumers in the world. India topped the Consumer Greendex, where consumers were asked about energy use and conservation, transportation choices, food sources, the relative use of green products versus traditional products, attitudes towards the environment and sustainability and knowledge of environmental issues. Reliance Industries and two Tata Group firmsTata Motors and Tata Steelare the countrys most admired companies for their corporate social responsibility initiatives, according to a Nielsen survey released in May 2009. As part of its Corporate Service Corps (CSC) programme, IBM has joined hands with the Tribal Development Department of Gujarat for a development project aimed at upliftment of tribals in the Sasan area of Gir forest. The financial services sector is going green in a steady manner. With an eye on preserving energy, companies have started easing the carbon footprint in their offices. The year 2009 witnessed initiatives includ-
ing application of renewable energy technologies, moving to paperless operations and recognition of environmental standards. Efforts by companies such as HSBC India, Max New York Life and Standard Chartered Bank have ensured that the green movement has kept its momentum by asking their customers to shift to estatements and e-receipts. State-owned Navratna company, Coal India Ltd (CIL) will invest US$ 67.5 million in 201011 on social and environmental causes. Public sector aluminium company NALCO has contributed US$ 3.23 million for development work in Orissas Koraput district as part of its Corporate Social Responsibility (CSR).
References:
1. mportance of Outcomes , Mea-
2.
3. 4.
5.
6.
7. CSR is increasingly becoming an 8.
Conclusion
important aspect of corporate behaviour. Corporates contribution to society, environment and business when guided by enlighted self-interest improves quality of life for all. Effective CSR requires a good level of commitment from the entire organisation and especially the top management who can ensure that not only is CSR practiced but also that it is practiced well. CSR is perceived as an important tool for survival and it plays significant role for the business to have strategic advantage over others. Therefore, CSR may be the deciding factor in future, as it reflects a companys goal, vision, mission, culture and the strategies.
9. 10.
surement of Corporate Social responsibility programmes Case Nokia, Reeta Talvitie- Siren (2009) White Paper- Externalities Management- Strategic Approach to Improving Corporate Social responsibility, Hewitt Roberts (2004) Green Paper- Commission of European Communities (2001) CSR as determinant of Market Success, Sandeep K. Krishnan, Rakesh Baluchand, IIM Ahemdabad Perceptions of CSR in India- An Empirical Study, Mahavir Narwal and tejinder Sharma, Kurukshetra University Prabandhan: Indian Journal of Management, Volume 3, Number 8, August 2010. www.karmayog.com http://www.ibef.org/india/CSR. aspx www.csrindia.info www.google.co.in
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Role of Tourism Industry in making India an Emerging Superpower

Ms. Alka Kaul (MBA, Research Scholar) Singhania University, Rajasthan Dr. Parul Khanna (MBA, Ph.D, Research Supervisor) Singhania University, Rajasthan Introduction:
istries/agencies, the State GovThe Republic of India is considered ernments/ union Territories and as one of the possible emerging su- the representatives of the private sector. Concerted efforts are beperpowers of the world. This poing made to promote new forms of tential is attributed due to several indicators, the primary ones being tourism such as rural, cruise, medical and eco-tourism. The Ministry its demographic trends and a rapof Tourism is the nodal agency for idly expanding economy. the development and promotion of tourism in India and maintains the Tourism is the largest service inIncredible India campaign. dustry in India, with a contribution of 6.23% to the national GDP and 8.78% of the total employment According to World Travel and in India. India witnesses more than Tourism Council, India will be a tourism hotspot from 20092018, 5 million annual foreign tourist having the highest 10-year growth arrivals and 562 million domespotential. The Travel & Tourtic tourism visits. The tourism inism Competitiveness Report 2007 dustry in India generated about ranked tourism in India 6th in US$100 billion in 2008 and that is terms of price competitiveness and expected to increase to US$275.5 39th in terms of safety and security. billion by 2018 at a 9.4% annual indian grand prix to boost tourism growth rate. In the year 2009, 5.11 from the year 2011.Despite shortmillion foreign tourists visited Inand medium-term setbacks, such dia. Majority of foreign tourists come from USA and UK and Tamil as shortage of hotel rooms, tourism Nadu, Maharashtra, Delhi and revenues are expected to surge by 42% from 2007 to 2017. Tourism in Uttar Pradesh were the top four India need to be understood in the states to receive inbound tourists. Domestic tourism in the same year global context of competing deswas massive at 650 million. Andhra tinations. It may be thought of as multiple Indias with a multitude Pradesh, Uttar Pradesh and Tamil of competing destinations Goa, Nadu received the big share of these visitors. Ministry of Tourism Rajasthan, Kerela, Assam, Kashmir under the India umbrella. Indias is the nodal agency to formulate 5000 years of history, its length, national policies and programmes breadth and the variety of geofor the development and promographic features make its tourism tion of tourism. In the process, the Ministry consults and collaborates basket large and varied. It preswith other stakeholders in the sec- ents heritage and cultural tourism tor including various Central Min- along with medical, business and sports tourism. India has a growing medical tourism sector.
Hotel Industry
The hotel industry is dependent on tourism and travel industries, and together they constitute the hospitality industry. The demand variation in the hotel industry depends on various factors like the economy, socio-political conditions, government regulations, business cycle, weather and seasonal changes, festivals etc. The hotel service is a perishable service with a fixed or limited supply. It is characterized by high investment and low variable costs. The market for the hotel industry can be geographically segmented as tourist spots and commercial centers. On the other hand, based on customers, the market can be segmented as premium segment, leisure segment and budget segment. The exposure of the Indian customer to international service standards has made him more discerning and demanding. Todays customers expect more value added services from the service provider. To meet the global standards and customer expectations, service providers in the hotel industry have to adopt technological developments. They also have to be customer-oriented in their approach if they have to withstand the com-
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petition in the market, which has further increased with the entry of global players. Marketers have to adopt the marketing mix elements to suit their marketing needs. For example, the product should carry more augmented services to differentiate itself from other service packages in the market. Pricing, promotion, place, process, people and physical evidence, all have to be handled with discretion and innovativeness. The recent trends in the hotel industry owing to the technological developments and the changing demographics have had a major impact on the way hoteliers conduct their business. The Indian hotel industry has also come of age and is ready to set new standards in customer service.
hospitality industry are:
Growth Drivers
The fortunes of the hospitality industry are closely linked to the tourism industry and hence tourism is one of the most important growth drivers. In addition, all factors that aid growth in the tourism industry also apply to the hospitality industry. The Indian hospitality industry has recorded healthy growth in recent years owing to a number of factors:
High seasonality
The Indian hotel industry normally experiences high demand during OctoberApril, followed which the monsoon months entail low demand. Usually the December and March quarters bring in 60% of the years turnover for Indias hoteliers. However, this trend is seeing a change over the recent few years. Hotels have introduced various offerings to improve performance (occupancy) during the lean months. These include targeting the conferencing segment and offering lucrative packages during the lean period.
Increased tourist movement

Increased FTAs and tourist movement within the country has aided growth in the hospitality industry. Healthy corporate profits and higher disposable incomes with easier access to finance have driven the rise in leisure and business tourism, thus having a positive impact on the hospitality industry. Economic growth India is one of the fastest growing economies in the world. It recorded healthy growth in the past few years, at more than 9% each during 2006-2008. Despite the global economic slowdown, the Indian economy clocked growth of 6.7% and 7.4% in 2009 and 2010 respectively. Attractiveness of India has encouraged foreign players to set up their operational facilities in the country. Domestic industries have also made heavy investments to expand their facilities through greenfield and brownfield projects.
Labour Intensive
Quality of manpower is important in the hospitality industry. The inThe Indian hospitality industry has dustry provides employment to skilled, semi-skilled, and unskilled emerged as one of the key industries driving growth of the services labour directly and indirectly. In India, the average employee-tosector in India. It has evolved into room ratio at 1.6 (2008-09), is much an industry that is sensitive to the higher than that for hotels across needs and desires of people. The the world. The ratio stands at 1.7 fortunes of the hospitality industry have always been linked to the for five-star hotels and at 1.9 and 1.6 for the four-star and three-star prospects of the tourism industry categories respectively. Hotel ownand tourism is the foremost deers in India tend to over-spec mand driver of the industry. The Indian hospitality industry has re- their hotels, leading to higher manpower requirement. With the entry corded healthy growth fuelled by robust inflow of foreign tourists as of branded international hotels in well as increased tourist movement the Indian industry across different categories, Indian hotel companies within the country and it has become one of the leading players in need to become more manpower efficient and reconsider their staffthe global industry. Foreign touring requirements. ist arrivals (FTAs) into the country increased steadily from 2002 to 2008. FTAs dipped in 2009, due Fragmented to the global economic slowdown; The Indian hotel industry is highly however, the impact on the Indian fragmented with a large number industry was much lower than that of small and unorganised players on the global counterparts. FTAs accounting for a lions share. The are expected to increase in 2012. major players in the organised segOn the other hand, domestic tourment include The Taj, Oberoi, ITC ist movement within the country Hotels, and East India Hotels. The was the highest in 2009. fragmented nature of the Indian hospitality industry is reflected in the Herfindahl Index of ConcentraIndustry characteristics tion, which was at 0.062 in FY07. Major characteristics of the Indian
Facts and Figures and Trends of Indian Hospitality industry:

Tourism is presently the most important civil industry in the world. The hospitality industry is second only to the global oil industry in terms of turnover, and is, by far, the largest employer around the world. Ten percent of the worlds work force is in the tourism
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industry, and 10 percent of the worlds GNP comes from tourism. Foreign tourist arrivals to India increased from 5.13 million in FY09 to 5.5 million in FY10, thereby resulting in a increase of 7% YoY. . Foreign Tourists Arrivals (FTAs) during the period January-October 2010 were 4.32 million with a growth rate of 9.9 per cent. The World Tourism Organisation has predicted that India will receive 25 million tourists by 2015. According to the latest Tourism Satellite Accounting (TSA) research, released by the World Travel and Tourism Council (WTTC), the demand for travel and tourism in India is expected to grow by 8.2 % between 2010 and 2019. This will place India at the third position in the world. Indias travel and tourism sector is expected to be the second largest employer in the world. Capital investment in Indias travel and tourism sector is expected to grow at 8.8 % between 2010 and 2019. The report forecasts India to get more capital investment in the travel and tourism sector and is projected to become the fifth fastest growing business travel destination from 2010 through 2020. According to the Tourism Satellite Accounting (TSA) research, released by World Travel and Tourism Council (WTTC) and its strategic partner Oxford Economics in March 2010: The contribution of travel and tourism to Gross Domestic Product (GDP) is expected to increase from 8.6 per cent (US$ 117.9 billion) in 2010 to 9.0 per cent (US$ 330.1 billion) by 2020. Export earnings from international visitors and tourism goods are expected to increase
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from US$ 11.1 billion in 2010 to US$ 33.6 billion in 2020. Travel and tourism investment was at US$ 34.7 billion or 7.2 per cent of total investment in 2010. By 2020, this should reach US$ 109.3 billion or 7.7 per cent of total investment. The World Travel and Trade Council, figures indicate that the Indian tourism demand is expected to grow at 8.8% from 2007-2016. According to the World Travel and Tourism Council, revenue from foreigners traveling to India is expected to grow to US424 billion by 2015. Indians traveling in India as well as abroad are expected to spend US$63 billion by 2015. As per the Travel and Tourism Competitiveness Report 2009 by the World Economic Forum, India is ranked 11th in the Asia Pacific region and 62nd overall, moving up three places on the list of the worlds attractive destinations. It is ranked the 14th best tourist destination for its natural resources and 24th for its cultural resources, with many World Heritage sites, both natural and cultural, rich fauna, and strong creative industries in the country. India also bagged 37th rank for its air transport network. The India travel and tourism industry ranked 5th in the long-term (10-year) growth and is expected to be the second largest employer in the world by 2019. To encourage the tourism sector, the government in recent times, has taken some measures which will benefit the sector. In FY09, Rs.5.2 bn for development of tourism infrastructure was allocated. This figure is higher by Rs.970 m as compared what was allocated in the previous year. However, it is only 1% of the total government spending. RBI has allowed ECB upto US$ 100 m
in January 2009, which would help in raising funds. The Centre and States are also working out a PPP (Public-PrivatePartnership) model to increase hotel capacity. The hotel and tourism industrys contribution to the Indian economy by way of foreign direct investments (FDI) inflows were pegged at US$ 2.17 billion from April 2000 to September 2010, according to the Department of Industrial Policy and Promotion (DIPP). The whos who of the world of international fund companies - Blackstone, Morgan Stanley, Walton Street Capital, Starwood Capital, Merrill Lynch, Westbridge Capital, Lehman Brother are looking to invest in the hospitality sector. Around 500 million domestic tourists are projected to travel across India by 2010 compared to around 325 million in 2006 and growing at over 10% annually. Indias hospitality sector is expected to see an estimated investment of US$11.41 billion in the next two years, and around 40 international hotel brands making their presence in the country by 2011, according to a report by Ma Foi Management Consultants. Moreover, the sector is expected to provide over 400,000 jobs. In India, the industry supports 48 million jobs, directly or indirectly or 8.27 per cent of total employment and accounts for 5.83 percent of the GDP, according to Department of Tourism estimates. According to an HVS International report average employee to room ratio is 1:8 in Indian hotels across all markets and drops to 1:5 for three star category of hotels. The report also states that the hotel sector would need a fresh workforce of atleast 94,000 by 2011.
Wisdom Voyage
In the FHRAIs memorandum presented to the government recently, it is said that atleast 1,50,000 additional rooms are required to meet the target of 5 million foreign tourist arrivals. This entails an investment to the tune of over Rs.15,000 crore. Currently there are 1,05,000 hotel rooms in the three to five-star category in India. The annual growth rate of hotel rooms in India is 6%. Nearly 11 per cent of the hotel demand in the country is from long stay guests. To set up a 5-star deluxe hotel with 250-300 rooms will cost approximately Rs.300 crore, excluding the land cost. As per estimates by hospitality consultancy HVS International, around 150 hotel projects are in the works across the country, which are likely to add around 53,000 rooms over the next five years. There are about 1,285 approved budget hotels across the country with about 51,000 rooms apart from guesthouses, dharamshalas and devasthans in the unapproved sector. The footprints of the IT and ITES in Tier 2 cities like Indore, Jaipur, Agra, et al, have played a role in driving the demand for budget hotels in these cities. The tourism ministry has proposed a cash subsidy of Rs.2 lakh per room for one-star category and Rs.3 lakh per room for two and three star category hotels to facilitate their growth. According to Federation of Hotel and Restaurant Association of India (FHRAI), the country is short of 65,000 budget category rooms. Average Room Rate (ARR) of hotels in India is increasing at the rate of over 20%- almost equal to that of hotels in developed countries such as Europe and the US. The growth in
ARRs is a direct fallout of the shortage of five-star accomodation in India and high demand generated by the booming economy. This shortage has stimulated investments in the hotel industry. Most of the five-star hotels are witnessing an average room occupancy rate of over 80%. For every room constructed, 3-5 jobs are created. The World Travel and Tourism Council has estimated that by 2011, tourism can support 25 million jobs (1 in every 15) in India through 8% annual growth. For every rupee that goes into building a hotel, three more are spent on furnishing it. More than 27000 items go into a hotel including building material, chandeliers, glassware, furnishings, energy saving devices etc., and at present 90% of hotel accessories are indigenously produced in India. So the domestic accessories sector stands a good chance in the near future. The average duration of stay of a foreign tourist in India is one of the highest in the world. On an average, it exceeds 27 days in the case of non-package tourist & is 14 days in the case of package tourist. Wedding tourism is growing almost 100% on a year-on-year basis. Generally, the ratio of foreigners to Indians in an NRI wedding is 7:3. On an average, an NRI wedding organised in India costs Rs.50 lakh. On an average, 50-150 rooms are booked in a star category hotel. Cruise shipping is growing globally at the rate of 12-15% annually. In India the cruise market is in excess of 1,25,000 guests annually and will grow at over 10% annually. 22 Institutes of Hotel Management being operated as Centres of Excellence for provid-
ing hospitality manpower. The government plans to set up four Indian Institutes of Hotel Management in Uttaranchal, Jharkhand, Chattisgarh and Haryana. To provide training in the area of tourism, the tourism ministry will also start 400 training programmes. Estimates indicate a need for about 15,000 more trained persons in the star category hotels, which includes about 2,700 managers, 2,500 supervisors and about 1,000 staff. Online travel industry is growing at a CAGR of 125%. Generating revenues of around $300500 million, the size of this industry is around 2% of the entire travel industry, which is estimated to be $42 billion.
International Recognition: Indias booming tourism sector has not only witnessed international investments but also achieved international accolades with its increasing appeal as the leading global tourist destination. The government has been instrumental in making tourism a priority sector. Its efforts have borne fruits with a series of international recognition and awards. India has been elected to head the UN World Tourism Organisation (UNWTO), the highest policy making world tourism body represented by 150 countries. The worlds leading travel and tourism journal, Conde Nast Traveller, has ranked India as the numero uno travel destination in the world. India was adjudged Asias leading destination at the regional World Travel Awards (WTA). Indias Taj Mahal continues to figure in the Seven Wonders of the World. Bangalore-based Leela Palace Kempinski was voted the fa-
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vourite business hotel in the world in a Readers Choice Awards by Conde Nast Traveller in 2007. India bagged the Worlds leading Destination Marketing Award for the Incredible India campaign.
Conclusion:
India is one of the fastest growing economies in the world. It recorded healthy growth in the past few years, at more than 9% each during 2006-2008. Despite the global economic slowdown, the Indian economy clocked growth of 6.7% and 7.4% in 2009 and 2010 respectively. Tourism is the largest service industry in India, with a contribution of 6.23% to the national GDP and 8.78% of the total employment in India. Overall Service Sector in India today accounts for more than half of Indias GDP. This fact marks a watershed in the evolution of the Indian economy and takes it closer to the fundamentals of a developed economy. Services or the tertiary sector of the economy covers a wide gamut of activities like trading, banking & finance, infotainment, real estate, transportation, security, management & technical consultancy among several others. To unlock
the huge potential in this sector, the government has taken further initiatives for the development of this sector. The above given facts and figures of the industry show that show that the Indian economy inclines in a big way on its tourism sector. The tourism sector has helped boost the Indian economy in its own way and contributed towards its path towards emerging as a growing superpower.
9. Kotler, p. And Armstrong, g.

(1998), principles of marketing, 5th ed., prentice-hall, Englewood cliffs, NJ. 10. Laurel scanlan and Janelle mcphail (2000) forming service relationships with hotel business travelers: the critical attributes to improve customer retention journal of hospitality & tourism research, vol. 24, no. 4 pp.491-513 11. Lawler, e. E., iii, mohrman, s. A., & Ledford, g. E. 1992. Employee involvement and total quality management. San Francisco: jossey-bass. 12. Macintosh, g. & lockshin, l.s.(1998), ``retail relationships and store loyalty: a multilevel perspective, international journal of research in marketing, vol.14, pp.487-98 13. Mills, p. K., chase, r. B., & Margulies, n. (1983). Motivating the client/employee system as a service production strategy. Academy of management review, 8: 301-310. 14. Parasuraman, a., Zeithaml, v.a. and Berry, l.l. (1985), a conceptual model of service quality and its implications for further research, journal of marketing, vol. 49, pp. 41-50.
References
1. 1. http://en.wikipedia.org/wiki/ 2. 3. 4. 5. 6. 7. 8.
User:Effer/India_as_an_emerging_superpower 2. http://www.tradechakra.com/ indian-economy/gdp.html 3. http://hbr.org/2008/07/putting-the-service-profit-chain-towork/ar/1 4. history of world hotel industry http://hospitalityindia.com/hospitality-industry-in-india.htm 5. http://www.hotelmule.com/ management/html/54/n-2554-6. html 6. http://www.iloveindia.com/ economy-of-india/hotel-industry. html. 7. http://www.dnb.co.in/Travel_Tourism/Indian_Hospitality_ Industry.asp
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Prof.

March 2011 Vol. I Issue 1

FROM THE EDITORS DESK

March 2011 Vol. 1 Issue 1

March 2011 Vol. I Issue 1

Application of Six Sigma in Supply Chain Integration A Case of Drydock

March 2011 Vol. I Issue I

1. Fleet repairs (minor and

2. Routine docking (underwater

Supply Chain Management

March 2011 Vol. I Issue 1

balancing, quality checks and maintenance scheduling.

3. 3. Location: Selection of site

supplier supplier supplier supplier

Retailer Manufac turer Stockiest Distributor Customer

Information flow (1)

5. 5. Information: Information 4. 4. Transportation: Logistics

March 2011 Vol. I Issue I

March 2011 Vol. I Issue 1

2. Clear goals, objectives and

Figure 2(a): Basic Ecommerce

Figure 2(b): B2B Network

March 2011 Vol. I Issue I

The organization of XML based transaction processing framework

priority in rationing, logistical requirement, expectations of

Six Sigma is a kind of standardization in TQM (Total Quality Management) activity.

March 2011 Vol. I Issue 1

4. Extra amount of work is done

5. No criteria for analyzing

1. Develop metrics for drydock

2. Benchmark drydock projects

1. Incomplete crew report on

March 2011 Vol. I Issue I

work linked to original specification items

6. Sigma Level calculations 7. Potential savings analysis

March 2011 Vol. I Issue 1

3. Frank G. Goethals, Important

4. Bidyut Biman Sarkar and

5. Chen, F., Drezner, Z. Ryan,

6. V.M. Rao Tummala, Cheryl

March 2011 Vol. I Issue I

FDI - Fuel in Indias Global Economic Growth Engine

March 2011 Vol. 1 Issue 1

Recent nancial scandals as we have seen in Satyam,

What FDI Provides {Advantage / Benef ts of FDI}:

March 2011 Vol. 1 Issue I

FDI And The Development

Foreign Direct Investment (FDI) in India

March 2011 Vol. 1 Issue 1

1. Through Joint ventures and

2. Through capital markets via

3. Through the route of foreign

4. Through private placement or

3. Railway Transport 4. Coal and Ignite 5. Mining of Iron, Manganese,

FDI Flow to India from 1991-2010 (In US $ milli on)

3000 0 2500 0 2000 0 1500 0

March 2011 Vol. 1 Issue I

FDI EQUITY INFLOWS DURING FINANCIAL YEAR 2009-10

FDI Inflow in 2009-2010 (In US $ mn)

SHARE OF TOP INVESTING COUNTRIES FDI EQUITY INFLOWS

TOTAL FDI INFLOWS

March 2011 Vol. 1 Issue 1

12,000 10,000 8,000 6,000 4,000 2,000 0