SWOT Analysis

Strengths The company has a strong hold in hospitality with big players in business as its clients. The company provides end to end, turnkey solutions to its clients in the area of IT and communication Infrastructure. The company is based in Gurgaon considered to be a hub of IT services in the NCR region and there are many new hotel chains coming up in Delhi and NCR which can be easily catered to. The company is a strategic partner with big players in original equipment manufacturing such as DELL, HP, Nortel, Microsoft, Avaya etc providing us the best and the most competitive price for the customers.

Weaknesses The company currently has business of around 20 crores in a year which is less as compared to the amount of potential available in the market. The small size of the company can be a constraint in bagging high value orders from clients.

Opportunities The company can target public sector units such as NICSI and ITDC which have a lot of demand for services in hospitality and IT infrastructure & Services. There has been a trend over recent years for European and North American companies to base some or all of their operation in India. This is called an offshore service. Essentially there is a seamless link between domestic operations and services hosted in India. Hence the company can also target this option also for its growth purpose. Big players in IT such as Infosys and TCS have been very aggressive in expanding their business through which they can take up the larger share of big market and leave the smaller share for other players. Hence this can also be an option to look forward to by the firm. There are new hotel chains coming up in the Delhi/NCR along with rest of the country which can also be kept track of if the company wants to expand.

Threats In the Indian markets slowly the margin or profit on traditional business such as laptop or desktops has reduced significantly which the company has to take into consideration going forward. There are new players in the market coming up every day at an increasing pace which can also take way considerable market from existing players. The competition from existing players is intense which also has to be kept in mind. The suppliers may also create a problem for the company by increasing their prices or by deteriorating their services. With cloud computing aggressively pacing in the markets, companies offering IT infrastructure business can receive a severe dent in their business.

PEST Analysis
Political Indian government is friendly to the business related to IT services and has in fact promoted information technology by giving the business tax benefits etc. Several e-governance projects have been initiated by the government of India which is bound to increase the demand for IT infrastructure and services. For the promotion of Software exports from the country, the Software Technology Parks of India was set up 1991 as an Autonomous Society under the Department of Information Technology. The SEZ Scheme offers similar benefits to SEZ units as compared to those under STPI in respect of indirect taxes, with some minor differences in operational details.

Economic The Indian Information Technology- Information Technology-Enabled Services (IT-ITES) industry has continued to perform its role as the most consistent growth driver for the economy. Service, software exports and BPO remain the mainstay of the sector. Over the last five years, the IT & ITES industry has grown at a remarkable pace. Consider some of the significant indicators for these remarkable achievements. The IT/ITES exports have grown to a staggering US$ 46.3 billion in 2008-09, the IT sector currently employing 2.2 million professionals directly and another 8 million people indirectly accounts for over 5% of GDP, a majority of the Fortune 500 and Global 2000 corporations are sourcing IT/ITES

from India and it is the premier destination for the global sourcing of IT/ITES accounting for 55% of the global market in offshore IT services and garnering 35% of the ITES/BPO market.

Social The Indian IT-BPO sector including the domestic and exports segments continue to grow from strength to strength, witnessing high levels of activity both onshore as well as offshore. The companies continue to move up the value-chain to offer higher end research and analytics services to their clients. The Department of IT is coordinating strategic activities, promoting skill development programmes, enhancing infrastructure capabilities and supporting R&D for Indias leadership position in IT and IT-Enabled services.

Technological Information Technology has made possible information access at gigabit speeds. It has created a level playing field among nations and has made positive impact on the lives of millions Internet has made revolutionary changes with possibilities of e-filing Income Tax returns or applying for passports online or railway e-ticketing.

Objectives and Strategies To develop a system and solution that is able to improve all their Sales, Inventory, Purchasing, Customer Information Management (CRM), Basic Accounting Management; Profits & Loss etc. and most of all the Management Report so as to ensure the efficiency of their business running ahead. Develop a system that analyses clients personality and proposes the appropriate equipments.

Upgrade companys existing website to make it more informative and interactive, hence more
useful to existing and potential clients. Strengthen companys marketing approach and branding.

MANAGING FINANCES Effective management of finances is critical for small businesses. A company which successfully manages its finances may be able to succeed even when business conditions are not always optimal. Managing your finances involves the understanding of how to raise and borrow money and how to manage assets and liabilities, including cash, receivables, and investments, short and long-term obligations. Good record keeping, smart budgeting and sound accounting go a long way in building a strong business. Spending responsibly and gaining financial control of your company is important. If you've gotten credit for your business, be it a credit card, loan, lease, etc it should be managed carefully. There are several steps to building a good credit history

Budget income and expenses Use credit responsibly Manage your financial ratios

Financial institutions often consider how well you manage each of these areas when they decide whether or not to give you credit. Sources of credit Business credit cards

Credit cards are a popular source of credit for small businesses. A quick and simple form of finance - one that we are all familiar with, they must nevertheless be used with care to protect the financial well being of your business. It is a good idea to use a separate business credit card (as opposed to your personal one) as it lets you identify business expenditure, collect quarterly and annual statements for tax reporting, and access business-sized credit limits. Many business credit cards also provide additional benefits such as reward programmes where points can be redeemed for travel and other items your company may need.

Credit from the bank Borrowing from a bank is a great business finance option. When you apply for credit, banks look for a number of things including a sound financial history, a successful business track record, well-maintained records and a healthy credit bureau file. Before applying for finance, it's important to have your financial statements - both personal and business, in order. Having the required information on hand can streamline your finance application. Do not make numerous applications to different lending institutions as this can affect your credit rating. Instead, shop around to find lenders whose terms suit your business best, then limit your applications to just one or two of these. Some products provided by banks to Small or Medium Enterprises are: Term Loans that addresses the demands of business expansion and the upgrading of existing facilities which otherwise can put considerable pressure on the finances of a company Treasury products such as Spot and Forward Covers, derivatives such as Currency Swaps, Interest Rate Swaps, Forward Rate Agreements and Options. Working Capital, depending on the nature of requirements and business operations, through which, you can avail overdraft facilities, refinance, purchase order/ invoice discounting or Channel Finance. A range of Trade products, which span Exports, Imports, Guarantees and Domestic Bills. Cash Management systems that provide efficient payment & collection mechanisms Value added services such as salary accounts for employees, Visa Travel Money and IPO collection services

Lease financing Small businesses don't always have the financial resources to buy the equipment they need. Even if they did, it might not be the best use of business capital. A better alternative may be equipment leasing, which can be cheaper - and easier on your cash flow. In a finance lease, for example, lender buys the asset, and then leases it back to you for an agreed period. So, instead of paying large amounts to purchase equipment, you pay a far smaller monthly lease fee. This frees up cash for use in other areas of business, such as the regular upgrading of equipment, for instance, which helps you keep pace with advancements in technology.

Trade finance Trade Credit can be procured from Business Suppliers with fixed repayment terms like 30, 60 or even 90 ninety interest-free days in which you can generate revenue from the supplies. This is a great deal for all businesses, so it is worth protecting your credit reputation among your suppliers. Some suppliers may modify their payment terms, so this is well worth exploring.

The five Cs of Good Credit - How do you measure up? Credit analysts often speak about the five C's of credit - five qualities that over time have proven to be good indicators of a borrower's ability to repay debt Credit History - Do you and your company pay bills on time? A strong record of paying your debts on time tells lenders you are able to handle future credit. In addition to payment history, lenders look at things like how long you've been in business and your reputation within the community. All of these help lenders understand the type of borrower you're likely to be. Capacity - What is your capacity to repay debt? Your business and personal incomes and your general financial position provide valuable clues as to your ability to pay back a loan or handle debt. Collateral - Are you offering any collateral as security? Collateral provides recourse for the lender in case you don't pay back the loan. When you're just starting out in business, providing collateral may make it easier for you to obtain a loan.

 Capital (Cash & Assets) - How well is your business capitalized? Loosely translated, this is the status value of your business's cash and assets, used by lenders to assess your overall financial strength and determine how easily you can repay any loan. Character - J.P. Morgan once said there was only one thing he looked for in a borrower: Character. Today, lenders still prize character, which is evaluated using a variety of measures like reviews of your payment history on loans, or checking your credit record for judgments or delinquencies.

Unlock your debtors Trade debtors are a valuable source of business finance. Also known as 'receivables', debtors are customers of your business to whom you have extended credit. But they can also be a source of funding called 'factoring' (when you 'sell' your receivable to a lender called a 'factor'). A factor accepts your debtors as collateral and then lends you a certain percentage of their value. The factor pays you in advance for these invoices; letting you generate cash sooner than if you would collect the money on your own. Factoring can also let you save on costs associated with late payments and chasing up bad debts. Of course, the advantages of factoring come at cost. You won't receive the full value of your debtors, and there may be other associated fees. In addition to this, most factors require that you turn over all of your receivables to them - even those who pay on time. This could adversely affect your customer relations, so it is a matter that needs some thought. For instance by using a factor, you may not be able to give preferred customers extended payment terms in order to encourage future loyalty.

Friends and Family Friends and family have always been a potential, convenient and inexpensive source of start-up capital. The advantage is that friends and family don't usually look for the same level of documentation or track record that conventional lenders ask for. But on the other hand, emotional connections may complicate financial transactions, and friends or family involved may want to have a say in how the business is run. And if the business fails or you cannot meet repayments, there may be personal as well as financial consequences. So it is worth seeking legal advice and having any terms you agree upon drawn up as a written contract.

Managing excess capital

As your business grows, you may begin to build up capital that you don't need for day-to-day operations. How well you manage this excess cash has a significant impact on your ability to obtain credit for business expansions or other needs. For example, if a potential creditor is able to determine that you have a good track record in cash management, the creditor may be more likely to extend you the additional credit you need to grow your business or guard against cyclical downturns. Understanding how best to manage excess capital, therefore, becomes an important business decision. Should you leave the money in the bank, invest it in securities, or explore other investment strategies? Before making a decision, it is good to seek the advice of an investment expert.

The first step - Figure out how much to invest Most experts recommend keeping a sizable percentage of your business assets in cash or cash equivalents, such as money market funds. At a minimum, many advisors recommend that you have sufficient cash on hand to meet your expected obligations for approximately the next three months.

The next step - Understand where to invest Working with your financial advisor, you may consider investing in longer-term assets that offer varying degrees of liquidity. As a general rule, the greater the potential for reward, the greater the level of risk. As a business owner, your greatest opportunities may lie in investing in your own business. Accordingly, you may want to invest your excess capital in liquid, comparatively low-risk investments that will enable you, when the time comes, to tap this capital for your business.

Liquid Investments Your bank advisor can provide you with information about ways to invest your cash in liquid investments. These include savings and money market accounts, and Certificates of Deposit (CDs). Many brokerage firms also offer some type of cash management system. Other Investment options Your financial advisor may also offer information about other alternatives to consider, including short-term government securities such as Treasury Bills (T-bills), long term government and private debt securities, mutual funds, stocks and probably some more complex financial investments such as options and derivatives.

Borrow responsibly Credit can be the lifeblood of a small business but it can also be a cause of business failure if credit is used unwisely. Here are some tips for effectively using and managing credit in your business.

Keep good records It is vital to keep track of what you owe - whether credit cards, bank loans, mortgages, etc. Good records help make sure that you don't take on more debt than you can comfortably repay. Never mix personal and business expenses The best way to separate business and personal expenses is to get a credit card and credit lines that are only used for business purposes. This will also make things easier at tax time. Don't overextend

Keep careful tabs on your business debts - especially high interest credit card debt. Make sure that your debt stays within manageable levels relative to your overall assets and cash. Budget carefully

Careful use of credit requires accurate budgeting. Taking on more debt usually means paying higher monthly repayments, and proper budgeting will help you anticipate and plan your monthly payments. Monitor rates

Be careful to shop around for credit cards, loans and other debt facilities to get the lowest possible interest rates. This reduces the cost of credit and helps keep your payments within manageable limits. Always make payments on time

Late payments not only damage your credit rating, they also put you in default on some types of loans. This will limit your choice of lenders in the future, potentially causing your cost of borrowing to soar. To avoid these problems, always make payments on time.

MANAGING HUMAN RESOURCES

A human resource strategy can help us decide when to hire, train and even change the face of our business. A human resource strategy is an essential component of an overall business strategy. Develop policies and procedures to ensure every employee in the business is treated fairly. This means understanding the techniques and requirements for effective hiring, promotion and dismissal. A human resource plan helps us identify what types of people are needed to execute the operating plan, and the operating plan requires clear business goals. These goals should be measurable focusing on sales, profits, quality, and turnaround times. Once your goals are set, we should analyze our human resource needs i.e. technical skills and people skills. Next estimate costs of salary, benefits and training. Can we afford it? If not, we may need to rethink our whole strategy, or maybe our goals. Trying to do too much with too little will inevitably give us problems down the road. Small businesses can quickly outgrow their human resources, so we should review our plan every 12 to 18 months to ensure we still have the right capabilities. It is also important to groom promising individuals to manage growth opportunities or unexpected departures in the future.

A couple of tips for success include:

Plan for turnover; begin training people for the future. Balance short-term labour fluctuations with part-timers. Utilize local agencies to assist with your employment needs. Use co-op or summer students, this is also a good potential recruitment source. Hire the retired. When selecting employees, remember: ATTITUDE, ATTITUDE, ATTITUDE. Anything can be learned with a positive attitude. It is the best indication that the right person is in the right job.

RECRUITMENT HIRING
A review of responsibilities can make the hiring process easier. Recruitment based on key responsibilities will encourage the qualified and discourage the unqualified. We should encourage existing employees to refer prospective employees to our attention. Referrals often make good employees because the applicant knows about the hiring company from the referring employee and comes to the job interview with realistic expectations.

There are a number of suggestions for employees and their hiring: Local and national advertising i.e. newspapers, job banks Unsolicited applicants (walk-ins), referrals from other staff, and other business associates. Technical people largely based on the customer sites should be given a formal training of how to handle the customers better. If required they should also be trained into sales work subject to their potential. MBAs probably laterals shall be hired into the marketing sales roles and they should be given independent charge of different verticals in the company.

IMPROVING EMPLOYEE SATISFACTION

We should try to make the environment and culture a fun place to work. We should focus on individual growth and learning for our staff. We should measure staff on their personal objectives, as well as trying to correlate them into the companys business objectives. Encourage everyones participation in establishing the companys goals. Identify the companys vision, set goals and targets. By setting the bar high enough, people will generally deliver. Keep connected with your employees.

CREATING A COMPENSATION PACKAGE

Compensation is not just about salary anymore. Many companies have compensation reward strategies that link salary, bonuses, profit sharing, non-cash benefits and perks for everyone from senior management to backroom staff.

Three basic factors can drive successful reward strategies: Compensation: Salary must be competitive in relation to local market conditions, but you do not necessarily have to pay top dollar. Perks: Do whatever you can to sweeten your basic compensation package with perks and non-cash benefits. Healthy, Happy Environment: Employers should never underestimate the value of an enjoyable environment. When workers are connected socially, it encourages them to stay.

A HEALTHY ENVIRONMENT FOR GROWTH

Leadership is about creating an environment where other people can succeed. One thing we should consider within our company is to test the leadership temperature. We should empower people, give them information, train them and then allow them to make mistakes. As the employer, we are also the motivator. We should keep people happy and make sure we are giving them everything they need in order to do their job well. Finally, it is important for employers to come up with ways of saying thank you. We are not going to go anywhere unless we have the support of our staff, therefore we should always be looking for creative ways of showing thanks for their efforts.

PERFORMANCE APPRAISALS One important way that you can improve employee satisfaction is by establishing a performance appraisal schedule. Employee appraisals help to motivate and encourage the employee. These appraisals, when combined with positive coaching, will improve the likelihood that your employees will continually develop and take on increasingly challenging roles.

A regular annual performance appraisal will:

 Check that the needs of the employee and company are being met. Confirm the employee understands the company expectations. Increase the employees knowledge of his or her personal strengths. Provide an opportunity to discuss areas for improvement. Foster a spirit of co-operation and teamwork.

There are many different methods that can be used to evaluate performance. Why not try: Peer Reviews create a sense of teamwork and an understanding of the role different positions have in achieving a common goal. Self Evaluations are more common in workplaces where individuals are self-directed and have their own specific goals to achieve. Upward Appraisals are used to evaluate management strategies by having lower-level staff assess their supervisors coaching and motivating techniques

HEALTH AND SAFETY

Employers have the major responsibility for health and safety in the workplace. They have an obligation to: Take every precaution reasonable for the protection of the worker. Provide equipment, materials, and protective devices, maintained in good condition Carry out prescribed procedures. Provide information, instruction and supervision to workers to protect their health and safety. Acquaint workers with hazards in the workplace and handling, storage, use, disposal and transportation of chemicals, etc. Develop and post an occupational health and safety policy. Ensure that safe work procedures are developed and implemented for all jobs.

Workers also have specific duties under the Act. They must: Work in compliance with the Act and regulations Use and/or wear protective equipment where required. Report defects or absences of equipment where required. Report defects or absences of equipment; and