Green marketing: definition The holistic management for identifying, anticipatingand satisfying the requirements of customers and societyin

a profitable and sustainable way (Peattie, 1995)Requirements: Production Process compatible with the Environment Compatible with companys goals Satisfy the customers need Need to find a balance between these requirements 6 7. Green marketing: HistoryLate 1980s: Green marketing beginning 1987: sustainable development concept (United nations) 1992 & 1993: green marketing reference books by Ken Peattie then Jacquelyn Ottman The holistic nature of green also suggests that besidessuppliers and retailers new stakeholders be enlisted Environmental issues should be balanced withprimary customer needs 7 8. Green marketing: why? Growing concern worlwide about the environment protection. Consumers are becoming more conscious that their consumption impact the environment Manufacturers have recognized environmental concerns as a source of competitive advantage. 8 9. Green marketing: Eco labelsEco-labels identify environmentally-friendly productsand services.Eco-label criteria guarantee that a given product or serviceis fit for use, and will have a reduced environmental impactthroughout its life cycle.France: Worldwide: EU: 9 10. Green marketing: examplesFollowing the 4PsMarketing tool 10 11. Green marketing: examples Innovation and eco-concept A small hybrid concept car Toyota FT-CH. 11 12. Green marketing: examples 12 Tesco believes that retailers can play a13. Green marketing: examples Lead the way by dramatically reducingpositive role in tackling climate change its own carbon footprint. 13 Tom promoted14. Green marketing: examples Tom : Project Holiday (2008) They would giveits project holiday campaign to sell 30000 pairs of shoes the same number to kids in Ethopia Unprecedented awareness for their cause without paid media. 14 15. 2/ Greenwashing 15 16. What is green washing?Disinformation disseminated by an organization so as topresent an environmentally responsible public image.Green washing, a term derivedfrom the term whitewashing 16 17. Why green washing? People are becoming more and more aware of the dangers People are looking for environmentally friendly products Corporations turn green washing to make themselves look more environmentally friendly 17 18. Green washing: whats wrong? It is misleading. Change their image Green washing could result in consumer and regulator complacency 18 19. Green washing: firms examples General Motors Falsely promoted its cars as environmentally friendly. Ads with GM SUVs in natural habitats as if they were as natural as the surrounding trees. 19 20. Conclusion Educate your customers and give them an opportunity to participate. Be authentic Dont use green washingMarketing can reallybe green! 20

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Electronic Press Kit

For businesses with regular media contact, an electronic press kit puts a big dent into paper usage. Press kits typically include a company history, product brochures, biographies of the company executives, photos and press clips. Companies often send a press kit to every media outlet in the area. A business could convert all of the documents and images into electronic files and offer the kit as a downloadable folder on its website. The electronic press kit requires no paper and no postage. The website could even indicate that the electronic press kit is part of an ongoing effort to reduce the business' environmental impact.

Green Packaging
Packaging that cannot biodegrade takes up enormous amounts of space in landfills. A business that manufactures and packages products can convert to eco-friendly packaging. Converting to biodegradable packaging provides customers with a visible symbol of the company's commitment to "going green." The business can also leverage the eco-friendly packaging as part of its advertising program to help draw in new environmentally conscious customers.

Electric/Hybrid Vehicles
Small-business owners often serve as the most visible representative of the business itself. In effect, their public personas function as marketing for the business. If a small business owner tries to rebrand the business as green, but drives a fuel inefficient truck or SUV, the green marketing effort seems deceptive. Switching over to an electric or hybrid vehicle serves as another visible reminder that the business pursues a green policy.

Public Declaration
A very simple type of green marketing is to make a public announcement, through a press release for example, that the business will pursue green policies. The announcement should include details about the specific changes the business will make and on what time frame. If the changes go off as planned and, particularly, if they reap benefits like reduced costs, follow public declarations about the change can help to solidify the public perception of the business as green.

E-Newsletters
Many businesses offer monthly newsletters to their customers. A business can cut paper waste and printing costs, while providing equal or greater levels of content, by shifting over to e-newsletters. In this case, the newsletter itself serves as marketing for the business and the delivery method functions as an easy way to go green.

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Determine the method of inventory tracking you wish to employ at your business. There are several proven methods you can utilize for your small business, or devise your own version that works best for you.

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Visual control is a one of the simplest inventory techniques in you examine your inventory items visually, assess what you have on hand and decide whether to order more. Depending on the size of your business, you may find no need for official inventory documentation, especially if dealing with topdollar items that you only keep a few in stock or items that are your slowest-moving products. Tickler control is a method in which you count a small section of your inventory physically each day so that by the end of a week or other regular period of time, your entire inventory is assessed. Click sheets enable you and your employees to record items you sell, distribute or otherwise use as you remove them from the inventory. Keep a tick sheet on a clip board where your inventory is stocked, then refer to this sheet when reordering. Stub control allows you to retain a piece of the price ticket when the item is sold for use later (such as the close of business each day) to record that the item was sold. This is especially helpful for businesses handling consignment merchandise; the price tag portion the clerk retains may include the consignor's ID as well as the price and item description.

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Advance to a point-of-sale inventory management method once your business size grows big enough to need a more sophisticated form of inventory control. Point-of-sale inventory control is handled, as the name suggests, at the point of sale, meaning that the cash register or computer you use for check-out at your business keeps count of your inventory and allows you to run reports at the end of the business day, the month, the sales report period or any other designated time frame.

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Consider using an outside inventory management agency if you are a large retailer or need a good inventory count for year-end or for the end of a big sale season. The agency will count your full stock, write the reorder and even removed unwanted merchandise to send back to the manufacturer per a predetermined arrangement with your company.

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Arrange to have some "safety stock" to get you through shortages from unexpected events. For instance, if you carry items that are primarily cold weather items, carry more of specific items needed in case of big winter weather events. This safety (or buffer) stock will prevent shortages that could occur between when you place an order and when you receive it.

5. 5
Discover through your inventory control what your annual cost of ordering and stocking every item you carry is in order to set the order quantity and to determine each item's reorder points (the minimum level of each item you reach before more stock is ordered). This will be valuable information for tax calculations and for planning operating expenses each year.

Taking an Inventory Pulse Check 1) Are you able to break down your operating inventory into the three major categories when reporting levelssafety, replenishment and excess or obsolete stock? This breakdown makes it easier to make sound decisions about appropriate levels for each of these three areas. It helps determine the minimum safety stock needed to provide an insurance policy against supply chain problems either from manufacturing glitches or distribution uncertainties so that customers get what they ordered. It's useful for pinpointing the amount of inventory required to replenish deliveries every two weeks. And it helps companies find ways to avoid a backlog of excess or obsolete inventory. 2) Is your company using the most effective method to calculate your safety stock levels?

Are you using statistical formulas that incorporate the accuracy of sales forecasts, required production lead times, manufacturing schedule adherence and service-level data for each SKU?

Or are you using a simple rule of thumb such as "all products made in factory ABC need 15 days of safety stock." The problem with the rule-of-thumb approach is that typically it's based on products with the most uncertain delivery histories. Efficient operations use a standard statistical formula that looks at historical data for individual products. 3) Do you recalculate safety stock levels on a regular basis to ensure they are up to date? Supply-savvy operations update their calculations about every three to six months to ensure that decisions are based on the most accurate information. 4) Who decides key inventory-related policy such as striking the right balance between customer service and cost-effective product inventory levels? Many decisions about inventory levels are strategically important. So instead of relying solely on the supply organization to decide, executives need to have a major say in the fundamental issues that impact inventory managementeverything from determining the right breadth and complexity of product offerings to optimal plant and distribution footprints. 5) Who determines the optimal frequency for producing or ordering products?

A cross-functional team or Only production planning or sourcing managers? Several factors impact effective inventory planning. For example, marketing campaigns can play a role alongside sourcing. So a cross-functional team should set production and ordering schedules. Production alone determines lot sizes, usually based solely on minimizing production costs. By weighing all factors and using a sales and operations planning process (S&OP), cross-functional teams often reduce the company's replenishment stock by 50 percent and ensure that the right products are available for big promotions. 6) How do you determine the frequency for ordering and inventory production if it's not set solely by factories or the supply organization? Ideally, there are two factors: companies should consider calculations that minimize the overall cost such as inventory and changeover costs. They also should base frequency on negotiations between the different parties involved and factor in upcoming events such as promotions and uncertainties like bad weather. 7) Is the optimal order or production frequency calculated on a regular basis as part of a continuous improvement process? Once you've reduced inventories, you'll have to put new processes in place to lower them even more over time. We use an analytical tool that highlights the biggest levers for continually reducing inventory. For example,

instead of working to improve sales forecast accuracy from 70 percent to just 75 percent, establishing a team that's focused on reducing lead times from Asian suppliers may have more impact. 8) Do you have regular visibility into excess and obsolete stock, and is it linked to targeted action plans to sell off or reduce this inventory? Typically, excess and obsolete stock stems from ineffective sales forecasting, planning or using a business model that fails to factor in product complexity and life cycles correctly. Inventory leaders establish processes to determine why excesses are being created and then develop a plan of action to sell it off. In some instances, the fear of the write-off has led to a large buildup over time of obsolete inventory. 9) Do you perform root-cause analyses on excess and obsolete stock and know how they are linked to action plans that curb more excesses from being created? Companies with efficient inventory management create two task forces with linked action plans. The first task force identifies the root causes and determines ways to reduce the creation of new excess and obsolete stock. The second focuses on ways to sell off the stock more effectively. It provides the sales team with a list of top excess or obsolete products to push to ensure that they're discounting specified excess products. 10) Do you apply the above practices to all parts of your inventory (finished goods, raw material, works in process and spare parts) and in all organizational entities? One of the most common mistakes made by supply organizations is looking at only a small subset of all inventorythe finished goods sitting in major warehouseseven though raw materials, works in process, spare parts and even goods in retail stores can make up 50 percent of the total. As a result, they miss potential savings. An organizational map of all inventories will help better prioritize ways to reduce inventories. And all the inventory techniques we've discussed apply. After answering all 10 questions, right or wrong, the diagnosis of your inventory health sets your company up for significant opportunities to improve expense and asset effectiveness and creates potential for capturing missed top-line sales. Often ignored, inventory pulse checks can be a huge lever to improve the financial health of a company.

Taming the Inventory Beast

Focusing on the factors that affect your inventory rather than solely on the inventory itself
By Dale Billet CPIM, CIRM, CSCP Director, Performance Improvement Consulting McGladrey Inventory is a very difficult area to manage for most companies. In fact, many businesses are purchasing, producing and warehousing too much inventory. These high inventory levels mask other problems and can delay improvements in operations. Typically, the multiple causes for poor inventory management are not well understood and the lines of responsibility are blurred. Inventory Responsibility Who should be responsible for inventory? Often times, the Materials Management or Purchasing areas are held responsible for maintaining levels. After all, these groups purchased and scheduled the inventory to be produced, yet they typically do not have the tools to address the causes that lead to high inventory levels.

In other organizations, inventory management is a shared responsibility. When levels become too high or obsolete inventory becomes a problem, the mandate to everyone is to "reduce inventory." With a focus on inventory, some early reduction may occur but when the spotlight is no longer on reduction, the inventory tends to climb back to previous levels because the causes have not been addressed. When everyone is responsible for something, then typically, no one is responsible for it and no lasting solutions are achieved. Impact, Symptoms and Causes of High Inventory How you view inventory often determines the practices you employ to manage it. Listed below are some of the common views of inventory that are often encountered in most companies:

Asset (because it is listed on the left side of the balance sheet) Insurance for demand fluctuations Insurance for production problems (scrap, incorrect bills of material, shortages, on the floor engineering changes) Waste

The impact of inventory is due to multiple cost factors. Frequently, many companies view inventory costs as simply the cost of borrowing money to finance the inventory. The true costs are significantly higher and include the following:

Holding costs (cost of capital, warehousing, lost items, theft, damage, insurance, physical inventory counting) Obsolescence Opportunity costs (missed sales)

When all costs are considered, most companies find that inventory costs are in the 25 percent to 35 percent per year range. A company can very quickly perform a self assessment to determine the potential for improvement with inventory management. Listed below are common symptoms that indicate inventory management is a weak area:

High number of slow-moving items along with production shortages Frequent overnight shipments The perpetual quantities on the computer are always wrong Large year-end write-offs Congested plant floors Responsibility for inventory is unclear

If you have a number of these symptoms, the most effective approach is to identify the causes rather than focus on these symptoms. Among the typical causes of excess inventory are:

The customers demand finished goods on hand Suppliers are unreliable Extra inventory is purchased or manufactured as a scrap allowance Customer orders are released earlier than needed The MRP system is unreliable Inventory is manufactured to absorb burden

Manufacturing is measured on utilization of equipment Purchasing is measured on price reductions or production shortages

To improve inventory management you should review some basics. Inventory is not an asset (despite what your accountant tells you), it is waste. There is a high correlation between companies with high profitability and high inventory turns (i.e. less inventory). The business strategies of your company will affect your inventory levels. If you are highly innovative and have a strategy of offering many options to your customers, you will typically need to carry more inventory than a company that competes on price and attempts to minimize product cost. Inventory Measurements A key measurement of your effectiveness with managing inventory is turnover. Inventory turnover measures the number of times inventory is sold within a year. Inventory turnover = Cost of Goods Sold/Average Inventory on Hand The inventory turnover must be segregated by class (Raw, WIP, Finished Goods) because an aggregate figure can hide where the true problem lies. Poor inventory turnover for finished goods is the most damaging because labor and machine time are already invested and teardown and rebuild is often a temptation. Improving inventory turns can produce significant annual cost savings (calculated by dollars of inventory reduced times annual carrying cost) and a one-time improvement in cash flow. Benchmarking yourself against your competitors can identify if you have low inventory turnover for your industry. If you are below the midpoint for your industry type, you need to address the causes of the low turnover. A 10-Step Inventory Improvement Action Plan Now that you have identified inventory as an area needing improvement, how do you determine what steps to take to improve your inventory management? Listed below are major steps to identifying the causes of poor inventory management and implementing corrective actions. 1. Identify company strategies that affect inventory - The strategies may be written or unwritten but an evaluation of how the strategies affect inventory is a good starting point. 2. Review and modify forecasting strategies - Do you have a forecast accuracy feedback process? Who is responsible for forecasting? Are you only forecasting independent demand items? 3. Review sourcing, ordering and releasing of purchased inventory - How is Purchasing measured? If the primary measurements are cost reduction and shortages, you will need to add other metrics (such as inventory turns) that the balance these metrics and measure the inventory management responsibilities of Purchasing. 4. Review scheduling and the order change processes - Is the schedule changed in the short term to add more orders without rescheduling the orders already in the schedule? Are change orders to units already on the production line implemented without consideration of the inventory that is no longer needed? 5. Review and measure data accuracy (bills of material, inventory balances, etc.) - If the data that supports the decisions on inventory to purchased, scheduled and shipped is inaccurate, the result will be excess and obsolete inventory along with production shortages. 6. Review and analyze receiving, storage and inventory process flows and practices - Are there gaps and disconnects in the processes that support inventory processes? Are there controls in place to monitor the accuracy of transactions in the processes? Are storage areas well lit and orderly and are responsibilities for inventory transactions clearly understood. 7. Provide tools, information and physical systems - It is critical for those responsible for inventory management to have adequate information (computer reports, on-line access, etc.) and physical systems (racking, labeling, bar coding) to be

successful. If this area is not adequate, employees will become frustrated and ineffective in achieving the improvements needed. 8. Develop and implement a cycle counting program - To maintain the level of accuracy needed to support effective inventory management, a structured cycle counting program with emphasis on measuring accuracy, identifying causes of inaccuracy and implementing corrective actions is needed. 9. Set policies and procedures - Each person involved with inventory management must have clearly defined and documented procedures for inventory processing tasks 10. Assign ongoing responsibility and performance measurements in each area - "Tell me how you measure me and I will tell you how I will act" is a common clich but it applies to inventory management. A balanced set of performance metrics with clear lines of responsibility is vital to effective inventory management. Final Thought Inventory management is not really about the inventory but rather the management of company strategies, processes and practices that result in inventory. Focus on the factors that affect the inventory rather than solely on the inventory itself and your business will be more successful.

CORPORATE GOVERNANCE 2. THE CAT MOUSE RACE 3. THE BULL BEAR RACE 14. Corporate governance is all about promoting corporate fairness, transparency and accountability. 15. If corporate governance is not followed 16. Dream Is Not What You See In SleepIs The Thing Which Does Not Let You Sleep. 17. THE CAUSE Society 18. THE BIGGEST IT SCAMSTER. 19. T he biggest corporate scam in India has come from one of the most respected businessmen. Satyam founder Byrraju Ramalinga Raju resigned as its chairman after admitting to cooking up the account books. His efforts to fill the "fictitious assets with real ones" through Maytas acquisition failed, after which he decided to confess the crime. With a fraud involving about Rs 8,000 crore (Rs 80 billion), Satyam is heading for more trouble in the days ahead. O n Wednesday, India's fourth largest IT company lost a staggering Rs 10,000 crore (Rs 100 billion) in market capitalisation as investors reacted sharply and dumped shares, pushing down the scrip by 78 per cent to Rs 39.95 on the Bombay Stock Exchange. The NYSE-listed firm could also face regulator action in the US. 20. "I am now prepared to subject myself to the laws of the land and face consequences thereof," Raju said in a letter to SEBI and the Board of Directors, while giving details of how the profits were inflated over the years and his failed attempts to "fill the fictitious assets with real ones." Raju said the company's balance sheet as of September 30 carries "inflated (non-existent) cash and bank

balances of Rs 5,040 crore (Rs 50.40 billion) as against Rs 5,361 crore (Rs 53.61 billion) reflected in the books." 21. INTRODUCTION TO THE BIG BULL OF THE TRADING FLOOR. 22. THE PIED PIPER OF STOCK MARKET. 23. HARSHAD MEHTA : THE SCAMSTER. 24. H e was known as the 'Big Bull'. However, his bull run did not last too long. He triggered a rise in the Bombay Stock Exchange in the year 1992 by trading in shares at a premium across many segments. Taking advantages of the loopholes in the banking system, Harshad and his associates triggered a securities scam diverting funds to the tune of Rs 4000 crore (Rs 40 billion) from the banks to stockbrokers between April 1991 to May 1992. 25. Harshad Mehta worked with the New India Assurance Company before he moved ahead to try his luck in the stock markets. Mehta soon mastered the tricks of the trade and set out on dangerous game plan. Mehta has siphoned off huge sums of money from several banks and millions of investors were conned in the process. His scam was exposed, the markets crashed and he was arrested and banned for life from trading in the stock markets. 26. He was later charged with 72 criminal offences. A Special Court also sentenced Sudhir Mehta, Harshad Mehta's brother, and six others, including four bank officials, to rigorous imprisonment (RI) ranging from 1 year to 10 years on the charge of duping State Bank of India to the tune of Rs 600 crore (Rs 6 billion) in connection with the securities scam that rocked the financial markets in 1992. He died in 2002 with many litigations still pending against him. 27. THE FOLLOWER OF THE BIG BULL 28. Ketan Parekh followed Harshad Mehta's footsteps to swindle crores of rupees from banks. A chartered accountant he used to run a family business, NH Securities.Ketan however had bigger plans in mind. He targetted smaller exchanges like the Allahabad Stock Exchange and the Calcutta Stock Exchange, and bought shares in fictitious names. 29. His dealings revolved around shares of ten companies like Himachal Futuristic, Global Tele-Systems, SSI Ltd, DSQ Software, Zee Telefilms, Silverline, Pentamedia Graphics and Satyam Computer (K-10 scrips). Ketan borrowed Rs 250 crore from Global Trust Bank to fuel his ambitions. Ketan alongwith his associates also managed to get Rs 1,000 crore from the Madhavpura Mercantile Co-operative Bank. According to RBI regulations, a broker is allowed a loan of only Rs 15 crore (Rs 150 million). There was evidence of price rigging in the scrips of Global Trust Bank, Zee Telefilms, HFCL, Lupin Laboratories, Aftek Infosys and Padmini Polymer. 30. ONE MORE STOCK MARKET SCAMC.R.Bhansali. 31. T he Bhansali scam resulted in a loss of over Rs 1,200 crore (Rs 12 billion). He first launched the finance company CRB Capital Markets, followed by CRB Mutual Fund and CRB Share Custodial Services. He ruled like a financial wizard 1992 to 1996 collecting money from the public through fixed deposits, bonds and debentures. The money was transferred to companies that never existed. CRB Capital Markets raised a whopping Rs 176 crore in three years. In 1994 CRB Mutual Funds raised Rs 230 crore and Rs 180 crore came via fixed deposits. Bhansali also succeeded to to raise about Rs 900 crore from the markets.

32. However, his good days did not last long, after 1995 he received several jolts. Bhansali tried borrowing more money from the market. This led to a financial crisis. It became difficult for Bhansali to sustain himself. The Reserve Bank of India (RBI) refused banking status to CRB and he was in the dock. SBI was one of the banks to be hit by his huge defaults. 33. THE COBBLERS SCAMSOHIN DAYA. 34. SohinDaya, son of a former Sheriff of Mumbai, was the main accused in the multicrore shoes scam. Daya of Dawood Shoes, RafiqueTejani of Metro Shoes, and KishoreSignapurkarof Milano Shoes were arrested for creating several leather cooperative societies which did not exist. They availed loans of crores of rupees on behalf of these fictitious societies 35. The scam was exposed in 1995. The accused created a fictitious cooperative society of cobblers to take advantage of government loans through various schemes.Officials of the Maharashtra State Finance Corporation, Citibank, Bank of Oman, Dena Development Credit Bank, Saraswat Co-operative Bank, and Bank of Bahrain and Kuwait were also charge sheeted. 36. DINESH DALMIAS STOCK SCAM. 37. DineshDalmiawas the managing director of DSQ Software Limited when the Central Bureau of Investigation arrested him for his involvement in a stocks scam of Rs 595 crore (Rs 5.95 billion). Dalmia's group included DSQ Holdings Ltd, Hulda Properties and Trades Ltd, and Powerflow Holding and Trading Pvt Ltd. Dalmia resorted to illegal ways to make money through the partly paid shares of DSQ Software Ltd, in the name of New Vision Investment Ltd, UK, and unallotted shares in the name of DineshDalmia Technology Trust.Investigation showed that 1.30 crore (13 million) shares of DSQ Software Ltd had not been listed on any stock exchange. 38. THE FAKE STAMP RACKET. 39. H e paid for his own education at SarvodayaVidyalaya by selling fruits and vegetables on trains.He is today famous (or infamous) for being he man behind one of The Telgi case is another big scam that rocked India. The fake stamp racket involving Abdul KarimTelgiwas exposed in 2000. The loss is estimated to be Rs 171.33 crore (Rs 1.71 billion), it was initially pegged to be Rs 30,000 crore (Rs 300 bilion), which was later clarified by the CBI as an exaggerated figure. 40. In 1994, Abdul KarimTelgiacquired a stamp paper license from the Indian government and began printing fake stamp papers. Telgi bribed to get into the government security press in Nashikand bought special machines to print fake stamp papers. Telgi's networked spread across 13 states involving 176 offices, 1,000 employees and 123 bank accounts in 18 cities. 41. THE MONEY MARKET FRAUD. 42. VirendraRastogichief executive of RBG Resources was charged with for deceiving banks worldwide of an estimated $1 billion. He was also involved in the duty-drawback scam to the tune of Rs 43 crore (Rs 430 milion) in India. The CBI said that five companies, whose directors were the four Rastogi brothers -- Subash, Virender, Ravinde and Narinder -- exported bicycle parts during 1995-96 to Russia and Hong Kong by heavily over invoicing the value of goods for claiming excessduty draw back from customs. 43. THE UTI SCAM.

44. Former UTI chairman P S Subramanyam and two executive directors -- M M Kapur and S K Basu -- and a stockbroker Rakesh G Mehta, were arrested in connection with the 'UTI scam'. UTI had purchased 40,000 shares of Cyberspace On September 25, 2000, for about Rs 3.33 crore (Rs 33.3 million) from Rakesh Mehta when there were no buyers for the scrip. The market price was around Rs 830. The CBI said it was the conspiracy of these four people which resulted in the loss of Rs 32 crore (Rs 320 million). 45. Subramanyam, Kapur and Basu had changed their stance on an investment advice of the equities research cell of UTI. The promoter of Cyberspace Infosys, Arvind Johari was arrested in connection with the case. The officals were paid Rs 50 lakh (Rs 5 million) by Cyberspace to promote its shares. He also received Rs 1.18 crore (Rs 11.8 million) from the company through a circuitous route for possible rigging the Cyberspace counter. 46. SANJAY AGARWALS FINANCE PORTAL. 47. H ome Trade had created waves with celebrity endorsements. But Sanjay Agarwal's finance portal was just a veil to cover up his shady deals. He swindled a whopping Rs 600 crore (Rs 6 billion) from more than 25 cooperative banks. The government securities (gilt) scam of 2001 was exposed when the Reserve Bank of India checked the acounts of some cooperative banks following unusual activities in the gilt market. 48. Co-operative banks and brokers acted in collusion in abid to make easy money at the cost of the hard earned savings of millions of Indians. In this case, even the Public Provident Fund (PPF) was affected. A sum of about Rs 92 crore (Rs 920 million) was missing from the Seamen's Provident Fund. Sanjay Agarwal, Ketan Sheth (a broker), Nandkishore Trivedi and Baluchan Rai (a Hong Kong-based Non-Resident Indian) were behind the Home Trade scam. 49. Gilt funds, as they are conveniently called, are mutual fund schemes floated by asset management companies with exclusive investments in government securities. The schemes are also referred to as mutual funds dedicated exclusively to investments in government securities. Government securities mean and include central government dated securities, state government securities and treasury bills. The gilt funds provide to the investors the safety of investments made in government securities and better returns than direct investments in these securities through investing in a variety of government securities yielding varying rate of returns gilt funds, however, do run the risk.. The first gilt fund in India was set up in December 1998. . 50. The Biggest Risk In Life Is Not Taking One.- Tag Line of the Movie Gafla

Olympus in Focus: Japanese Camera-Maker Faces Serious Governance Criticism In 2011 Olympus found itself at the center of the largest corporate governance scandal in Japans recent history. In October, 2011 I wrote an article explaining that the companys British CEO, Michael Woodford, had been summarily fired by the companys board, allegedly after he raised questions about massive advisory fees Olympus made in connection to a recent deal.
Gross Domestic Product or GDP represents the economic health of a country. It presents a sum of a country's production which consists of all purchases of goods and services produced by a country and services used by individuals, firms, foreigners and the governing bodies.

Calculation of GDP comprises of several components. Importance of GDP

GDP consists of consumer spending, Investment expenditure, government spending and net exports hence it portrays an all inclusive picture of an economy because of which it provides an insight to investors which highlights the trend of the economy by comparing GDP levels as an index

GDP is used as an indicator for most governments and economic decision-makers for planning and policy formulation In case of GDP, each component is given the weight of its relative price. In market economics it clicks as prices reflect both marginal cost of the producer and marginal utility for the consumer, i.e. people sell at a price that others are willing to pay

GDP helps the investors to manage their portfolios by providing them with guidance about the state of the economy Calculation of GDP provides with the general health of the economy. A negative GDP growth portrays bad signals for the economy. Economists analyse GDP to find out whether the economy is in recession, depression or boom

Gross Domestic Product is good measure for an economy and with improvement in research and quality of data, statisticians and governments are trying to find out measures to strengthen GDP and make it a comprehensive indicator of national income. The GDP of a country can be calculated in the below mentioned rates

Expenditure approach, Income approach Value-added approach

Following is a simple way to calculate the GDP. GDP = consumption + investment + government spending) + (exportsimports) and the formula is GDP = C + I + G + (X-M) where C= I= G= exports. spending investment government by by spending consumers, businesses, and

(X-M)= net exports, that is, the value of exports minus imports. Net exports may be negative i.e. imports are more than

Components of Financial System. 1. Money. 2. Banking and Financial Institutions. 3. Financial Instruments. 4. Financial Markets. 5. Central Banks. 9. Money:- Money is defined as anything that is generally accepted in payment for goods and services or in the repayment of debt. Monetary theory ties changes in the money supply to changes in aggregate economic activity and the price level. 10. Money and Recession The periodic but irregular upward and downward movement of aggregate output produced in the economy is referred to as the business cycle. Sustained (persistent) downward movements in the business cycle are referred to as recessions. Sustained (persistent) upward movements in the business cycle are referred to as expansions.

11. Recessions (unemployment) and booms or expansion (inflation) affect all of us Evidence from business cycle fluctuations in many countries indicates that recessions may be caused by steep declines in the growth rate of money. 12. Money and Inflation The aggregate price level is the average price of goods and services in an economy Inflation is a continual rise in the price level. It affects all economic players. There is a strong positive association between inflation and growth rate of money over long periods of time. A sharp increase in the growth of the money supply is likely followed by an increase in the inflation rate. 13. Countries that experience very high rates of inflation have rapidly growing money supplies. 14. Banking and Financial Institutions:- Financial Intermediaries are institutions that channel funds from individuals with surplus funds to those desiring funds but have shortage of it. Among other services, they allow individuals to earn a decent return on their money while at the same time avoiding risk; e.g., banks, insurance companies, finance companies, investment banks, mutual funds, brokerage houses, 15. Banks are financial institutions that accept deposits and make loans. Banks make the monetary system a lot more efficient by reducing our need to carry a lot of cash. Innovations in banking like debit cards, direct deposit, and automatic bill-paying reduce that inconvenience even further, and also reduce such bank-related inconveniences of time spent standing in line at the bank, writing checks, or visiting the ATM. 16. Financial Instruments:- Securities is a name that commonly refers to financial instruments that are traded on financial markets. A security (financial instrument) is a formal obligation that entitles one party to receive payments and/or a share of assets from another party; e.g., loans, stocks, bonds. Even an ordinary bank loan is a financial instrument. 17. Financial Markets:- Financial markets are mechanisms that allows people to easily buy and sell (trade) financial securities (such as stocks and bonds), commodities (such as precious metals or agricultural goods), and other fungible items of value at low transaction costs and at prices that reflect; e.g., Bahrain Stock Exchange, New York Stock Exchange, U.S. Treasurys online auction site for its bonds. 18. Financial markets such as stock market and bond market are essential to promote greater economic efficiency by channeling funds from who do not have productive use of fund (savers) to those who do (investors). While well-functioning financial markets promote growth, poorly performing financial markets can be the cause of poverty. Thus, activities in financial markets may increase activities in financial markets affect business cycle. 19. A financial market is a market in which financial assets (securities) can be purchased or sold Financial markets facilitate financing and investing by households, firms, and government agencies Participants that provide funds are called surplus units e.g., households Participants that enter markets to obtain funds are deficit units e.g., the government 20. Types of Financial Markets:- Money and Capital Market. Primary and Secondary Market. Debt Market. 21. The Bond Market and Interest Rates A bond is a debt security that promises to make specified rate of interest payments periodically for a specified period of time, with principal to be repaid when the bond matures. An interest rate is the cost of borrowing or

the price paid for the rental of borrowed funds. Everything else held constant, a decline in interest rates will cause consumption and investment to increase; 22. An increase in interest rates might encourage consumers to save more because more can be earned in interest income but discourage investors from taking loans. Thus, consumption and investment would decrease. The bond markets are important because they are the markets where interest rates are determined 23. The Stock Market A stock (a common stock) represents a share of ownership of a corporation, or a claim on a firms earnings/assets. Stocks are part of wealth, and changes in their value affect peoples willingness to spend. Changes in stock prices affect a firms ability to raise funds, and thus their investment. The stock market is important because it is the most widely followed financial market nowadays. 24. A rising stock market index due to higher share prices increases peoples wealth and as a result may increase their willingness to spend. When stock prices fall an individuals wealth may decrease and their willingness to spend may decrease. Changes in stock prices affect firms decisions to sell stock to finance investment spending. Fear of a major recession causes stock prices to fall, everything else held constant, which in turn causes 25. The Foreign Exchange Market The foreign exchange market is where funds are converted from one currency into another. The foreign exchange rate is the price of one currency in terms of another currency. The foreign exchange market determines the foreign exchange rate. 26. Euro Bond Market:- The Eurobond market is made up of investors, banks, borrowers, and trading agents that buy, sell, and transfer Eurobonds. Eurobonds are a special kind of bond issued by European governments and companies, but often denominated in non-European currencies such as dollars and yen. They are also issued by international bodies such as the World Bank. The creation of the unified European currency, the euro, has stimulated strong interest in euro-denominated bonds as well; 27. Eurobonds are unique and complex instruments of relatively recent origin. They debuted in 1963, but didnt gain international significance until the early 1980s. Since then, they have become a large and active component of international finance. Similar to foreign bonds, but with important differences, Eurobonds became popular with issuers and investors because they could offer certain tax shelters and anonymity to their buyers. They could also offer borrowers favorable interest rates and international exchange rates. 28. Conventional foreign bonds are much simpler than Eurobonds; generally, foreign bonds are simply issued by a company in one country for purchase in another. Usually a foreign bond is denominated in the currency of the intended market. For example, if a Dutch company wished to raise funds through debt to investors in the United States, it would issue foreign bonds (dollar-denominated) in the United States. By contrast, Eurobonds usually are denominated in a currency other than the issuers, but they are intended for the broader international markets. An example would be a French company issuing a dollar- denominated Eurobond that might be purchased in the United Kingdom, Germany, Canada, and the 29. Like many bonds, Eurobonds are usually fixed- rate, interest-bearing notes, although many are also offered with floating rates and other variations. Most pay an annual coupon and have maturities of three to seven years. They are also usually unsecured, meaning that if the issuer were to go bankrupt, Eurobond holders would normally not have the first claim to the defunct issuers assets.

30. Forward Markets:- An informal agreement traded through a broker- dealer network to buy and sell specified assets, typically currency, at a specified price. A cash market transaction in which delivery of the commodity is deferred until after the contract has been made. Although the delivery is made in the future, the price is determined on the initial trade date. 31. In finance, a forward contract is a non- standardized contract between two parties to buy or sell an asset at a specified future time at a price agreed upon today an agreement between two parties in which one party agrees to buy currency from the other party at a later date at an exchange rate agreed upon today. 32. A special type of foreign currency transaction. Forward contracts are agreements between two parties to exchange two designated currencies at a specific time in the future. These contracts always take place on a date after the date that the spot contract settles, and are used to protect the buyer from fluctuations in currency prices. 33. The forward market is the informal over-the- counter financial market by which contracts for future delivery are entered into. Standardized forward contracts are called futures contracts and traded on a futures exchange 34. Forward Foreign Exchange Contract Definition: An agreement to exchange one currency for another, where The exchange rate is fixed on the day of the contract, but The actual exchange takes place on a pre-determined date in the future 35. In a forward market for foreign exchange, transactions which take place at a future dates are covered. In a forward market there are parties which demand or supply a given currency at some future point of time. Forward transactions also known as future contacts take place due to two reasons. Firstly, to minimize risk of loss due to adverse change in exchange rate and secondly to make profit. First is called hedging and second is called speculation. 36. Futures Market:- In finance, a futures contract is a standardized contract between two parties to buy or sell a specified asset of standardized quantity and quality for a price agreed upon today with delivery and payment occurring at a specified future date, the delivery date. A currency future, also FX future or foreign exchange future, is a futures contract to exchange one currency for another at a specified date in the future at a price (exchange rate) that is fixed on the purchase date 37. A contractual agreement, generally made on the trading floor of a futures exchange, to buy or sell a particular commodity or financial instrument at a pre-determined price in the future. Futures contracts detail the quality and quantity of the underlying asset; they are standardized to facilitate trading on a futures exchange. Some futures contracts may call for physical delivery of the asset, while others are settled in cash. 38. A futures contract is between two parties with an intermediary involved, the futures exchange. The contract requires one of the parties to agree to make delivery of a commodity or financial asset and the other party to take or accept delivery of the same commodity or financial asset. 39. Foreign exchange future market refers to a type of financial derivative in which two parties enter into a contract to buy/sell a particular currency at a pre-determined price on a specific future date A foreign exchange future market is marked to market thus making it a portfolio of forward contracts that are adjusted daily for cash settlements. This in fact mitigates the credit risk to a very large extent.

40. These are carried out through the clearing house of the exchange. The margin payments accrue to the exchange and the exchange ensures the proper functioning of the contract. A foreign exchange future market contract rarely results in a delivery. It is used by parties as it is a highly liquid way of hedging and speculating and efficient transactions can be fixed up without delay.

Six Sigma at many organizations simply means a measure of quality that strives for near perfection. Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects (driving toward six standard deviations between the mean and the nearest specification limit) in any process from manufacturing to transactional and from product to service. Benefits of Six Sigma
Those organisations that implement Six Sigma correctly achieve significant benefits that contribute to competitive advantage and to changing the culture in an organisation from reactive problem solving to proactive problem prevention. Specifically the proven benefits include: For the organisation

Bottom line cost savings (5%-20% of turnover per annum) Improved quality of product or service as perceived by the customer (internal and external customers) Reduction in process cycle times Development of staff skills Common language throughout the organisation World class standard

For the individual

Improved knowledge and skills Ability to use a wide range of tools and techniques A status that is recognised world wide

Advantages :

(1) Six Sigma is driven by the customer and thus aims to achieve maximum customer satisfaction and minimizing the defects. It targets the customer delight and new innovative ways to exceed the customer expectations.

(2) Implementation of Six Sigma methodology leads to rise of profitability and reduction in costs. Thus improvements achieved are directly related to financial results. (3) Six Sigma is successfully implemented in virtually every business category including return on sales, return on investment, employment growth and stock value growth. (4) Six Sigma targets Variation in the processes and focuses on the process improvement rather than final outcome. (5) Six Sigma is prospective methodology as compared to other quality programs as it focuses on prevention on defects rather than fixing it. (6) It is attentive to the entire business processes and training is integral to the management system where the top down approach ensures that every good thing is capitalized and every bad thing is quickly removed.
Disadvantages

(1) Applicability of Six Sigma is being argued among the Six Sigma critics. They opined that the quality standards should be according to specific task and measuring 3.4 defects per million as standard leads to more time spent in areas which are less profitable. (2) Six Sigma gives emphasis on the rigidity of the process which basically contradicts the innovation and kills the creativity. The innovative approach implies deviations in production, the redundancy, the unusual solutions, insufficient study which are opposite to Six Sigma principles. (3) People argue that Six Sigma is a bit gimmicky and simply a rebranding of the continues improvement techniques and tools as practiced by Toyota. It thus promotes outsourcing of improvement projects with lack of accountability. (4) Six Sigma implementation constantly require skilled man force. Thus control and employee dedication are hard to accomplish if its not implemented regularly. (5) While converting the theoretical concepts into practical applications there are lot to real time barriers which needs to be resolved.

KEY STEPS IN DEVELOPING A COMPENSATION STRATEGY Developing compensation strategies is

manager is the generic decision model:
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asimple process. One familiar to any

. Analyze compensation implications

Establish objectives Compare actual conditions with objectives to identify gaps Develop actions to close gaps

Follow through. Figure 2 shows this model applied to developing compensation strategies. It involves (1) analyzing the compensation implications of the organization.s business strategy. external environment. and internal human resources conditions; (2) establishing the desired strategic compensation position involving the five strategic choices discussed above; (3) detennining any gap between the implications derived from the analysis and the desired strategic position; (4) designing compensation programs to. close the gap and to translate the compensation strategy into practice; and (5) following through. These steps are

explained below in greater detail.

(Insert Figure 2 here)

Analyzing Compensation Implications The changing forces of the external environment through which organizations must navigate were examined in the previous chapter. Here. we only re-emphasize that they are crucial to developing compensation strategies. Perhaps a major issue is whether these
10

environmental forces allow any room for managers to adopt different

compensation policies in support of their business strategies. Legislation on

health benefits, pensions, and deferred contributions have reduced the viable choices for executive and manager compensation. Yet, we do know that finns pursue different options in responding to changes accompanying advances in technology, changing population demographics, and shifting regulatory concerns. Again, managers charged with developing compensation strategies must innovate compensation strategies that offer competitive advantages within the changing pressures that operate in the external environment. Business strategies' implication for compensation reside in the work force's performance and the sustainable labor costs associated with its successful implementation. For example, the decision to enter a new market requires a work force that is willing to take risks, put in long hours, and quickly solve problems not previously encountered. At the same time, especially for new ventures, cash flow is often restricted. A compensation strategy that attracts and motivates the necessary work force while dealing with cash limitations-all else

being equal--will increase the new venture's chances of success.

Proponents of compensation strategy development maintain that different

business strategies vary in their work-force performance requirements and sustainable labor costs, and, thus, in the compensation strategies that best
support them.
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Developing a Strategic Position Two related levels of business strategy need

to be considered when developing compensation strategy: the corporate unit and the business unit. Compensation strategy is most directly related to the business unit's strategy, but, as depicted in Figure 3, both the corporate and human resource strategies also influence compensation strategy development. (Insert Figure 3 here)

Business unit strategies are designed to answer the question, "How should we compete in this particular product or service market?" Many
approaches exist, but most classify business unit strategic types in terms of tWo

predominant strategies. One is labelled "Growth," the other, "Maintenance." The discussion of both these strategies is ideal in the sense that actually very few organizations completely exhibit the patterns to be described. However,
these tWo types do serve to guide the development of compensation strategies under different business strategies.

Managers pursuing a Growth strategy make high investments and take significant financial risks to expand their market shares. The ideal organization design allows for maximum flexibility in dealing with new markets and technologies. Division of labor is product or service-centered with little job or
functional specialization. Decisionmaking is decentralized; there are few formal

controls such as budget, inventory, or even human resource programs.

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Hierarchies, supervision, and work rules are minimal. Information flows freely and informally throughout the organization. Performance criteria focus on

market outcomes, such as expanding sales and market share. A Maintenance strategy emphasizes maintaining current market shares while minimizing costs and improving customer satisfaction. Here, the ideal organization design exploits the organization's past learning and success in dealing with a particular market and technology. The division of labor is
functional with relatively high job specialization. Decisionmaking is more centralized, and more formal control, hierarchy, supervision, and work rules exist here than in the Growth strategy. Information flows through wellestablished communication channels and is more restricted. Performance criteria focus on cost savings, quality, and customer satisfaction. The strategic compensation decisions thought to best support the Growth

and Maintenance strategies are shown in Figure 4 and are derived from studies of compensation sttategy in Growth and Maintenance organizations. The logic underlying these results is readily apparent when considering the performance and labor cost implications associated with each sttategy. The Growth sttategy, for example, requires heavy investments in marketing and development without the benefits of high cash income--at least over the short term. This means that dollars are not available for high base salaries and benefits, but significant

performance and ownership incentives can be offered. In order to realize incentive potential, employees must be willing to take risks, work long hours,
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creatively solve problems, and focus on the market outcomes critical to Growth strategy success. (Insert Figure 4 here) Compensation plays a dominant, lead role in the overall human resources strategy. It serves to signal the climate of risk and reward. Incentives tied to the organization level and market outcomes with high, annual payout potential

help attract and direct the types of employees needed. Internal structures and administrative decisions that allow maximum flexibility are also consistent with
the organizational design and administrative style thought ideal for Growth strategy success.

One study of the relationship between human resource strategies and

business unit strategies showed that units successfully pursuing Growth were more likely to emphasize the importance of compensation programs than those

pursuing Maintenance strategies. While the results of one study are not determining, they suggest that when making choices about developing a compensation strategy for several business units, those pursuing Growth strategies should take precedence because pay appears to playa more dominant role.
Research also confIrms that the internal structures and administration of pay are related to the cultures and management styles used throughout the
14

organization. It follows that any shift toward either a Growth and Maintenance

strategy must be supported by similar changes in the organization itself. A compensation strategy at odds with the organizational culture is futile. Designing a Compensation Strategy to Close Any Gap The compensation
systems of most organizations will not look exactly like either of the

Maintenance or Growth profiles. The Maintenance and Growth profiles shown in Figure 4 really serve as polar guideposts for managing strategic change and development. A simple example illustrates how these profiles can be used to
guide strategy development. The current compensation system prof11e shown in Figure 5 comes from

a unit whose market orientation, structure, and administrative style place it closest to a Maintenance type. The unit's business strategy is to continue its current market orientation: maintenance of market share. It also anticipates,
however, that increased levels of market competition mean that minimizing costs

and increasing quality and customer service are no longer enough. Internal
structure, administrative style, work force perfonnance, and labor costs all need

to be more flexible in order to accommodate changes in market demand. Flexibility of the order recommended to support a Growth strategy is not desired. The Maintenance unit just wants a little more flexibility and maybe some correction of past problems: redundant jobs and employees, lackluster perfonnance standards, and overspecialization of jobs.

15

In order to develop a compensation strategy that promises more flexibility, the compensation profile of the Growth type offers a guide. Figure
5 shows the unit's current compensation profile, the ideal Growth profile, and the recommended compensation strategy. The recommended strategy infuses a little more risk into the system and

potentially lowers labor costs. The pay system role in the total human
resources strategy shifts to the role of a change agent. The shift toward a

Growth strategy requires a competitive position more sensitive to market

pressures and less to internal traditions and norms. A higher proportion of

incentives in total compensation is proposed; there is less guarantee that these incentives will be paid. A profit sharing plan ties about 10 percent of potential pay increases to unit performance, and, if realized, this amount will not be added to base salary. Also, more information will be shared with employees. In particular, the profit sharing plan calls for employee education in basic financial concepts, employeis markets, and the like.
(Insert Figure 5 here)

Following Through Implementation of these strategic changes is tricky. Compensation changes cannot take place overnight, but most can be accomplished within time framework associated with shifts most business unit strategies. The key is to identify which' changes should happen first in order
16

to ensure that success. ja !J~b3eq1Sent.For the recommended strategy in Figure 5, the profit sharing program might have enough visible impact in year two to carry internal support for reductions in job levels, changes in the merit plan, and increased emphasis on external market pressures.

Accessible. Accessibility is the main requirement of information system because all authorized users have to access the system first to do their works. The system must be designed accessibly so the employees can do the jobs through desktop/gadget, software, and internet network easily. Accurate. Of course, information system must be accurate in calculating and showing the information because a business may even get loss if there is any inaccurate data or calculation. Wrong data or information in an information system will impact the result and even make worse because managers surely tend to make wrong decision. Simple. Using information system is intended to simplify business works. Thus, it must be designed and created simply to allow all authorized users access the system to manipulate data easily because theyll get confused to do their works if they use a complex system. Flexible. Its essential to have a flexible information system that can be used by all divisions in a company to see valuable and important information. For example, people in production division need to see outgoing products in sales database so they can keep producing timely and estimate the products amount to be produced.

Secure. Only authorized users are able to input and manipulate data so there must be username and password required for them to access the information. Information system that has good security will keep all data including customers data, cash flow, etc.

Last but not least, apart from creating good information systems based on some characteristics above, IT people are also highly responsible for monitoring how the end users use the systems. Does it work very well? Do all users can access the system? Is it able to be accessed 24/7? Its a must for IT people to monitor like Citrix monitoring because it must work very well to allow certain employees access the application anytime and anywhere virtually. Some systems share common characteristics, including:[citation needed]

A system has structure, it contains parts (or components) that are directly or indirectly related to each other; A system has behavior, it contains processes that transform inputs into outputs (material, energy or data); A system has interconnectivity: the parts and processes are connected by structural and/or behavioral relationships. A system's structure and behavior may be decomposed via subsystems and sub-processes to elementary parts and process steps.

system is made of individual parts that work together as a whole - a system is usually connected to one or more systems - if one part of a system is missing or damaged, the system will not function well or may not function at all

Promotion through the Product life cycle. Click here if you want Edward to read this bit.

As products move through the four stages of the product lifecycle different promotional strategies should be employed at these stages to ensure the healthy success and life of the product . Stages and promotion strategies employed.

Introduction When a product is new the organisations objective will be to inform the target audience of its entry. Television, radio, magazine, coupons etc may be used to push the product through the introduction stage of the lifecycle. Push and Pull Strategies will be used at this crucial stage. Growth As the product becomes accepted by the target market the organisation at this stage of the lifecycle the organisation works on the strategy of further increasing brand awareness to encourage loyalty. Maturity At this stage with increased competition the organisation take persuasive tactics to encourage the consumers to purchase their product over their rivals. Any differential advantage will be clearly communicated to the target audience to inform of their benefit over their competitors. Decline As the product reaches the decline stage the organisation will use the strategy of reminding people of the product to slow the inevitable

Internet Promotion

The development of the world wide web has changed the business environment forever. Dot com fever has taken the industry and stock markets by storm. The e-commerce revolution promises to deliver a more efficient way of conducting business. Shoppers can now purchase from the comfort of their home 24 hours a day 7 days a week. Owning a website is a now a crucial ingredient to the marketing mix strategy of an organisation. Consumers can now obtain instant information on products or services to aid them in their crucial purchase decision. Sony Japan took pre-orders of their popular Playstaion 2 console over the net, which topped a 1 million after a few days, European football stars are now issuing press releases over the web with the sites registered under their own names. Hit rates are phenomenal. Advertisers have now moved their money over to the internet as customers are on average spending more time online then watching TV. Popular ways to advertise seem to be with banners and pop ups. To learn more about internet marketing please click on theory and scroll down.