DRM21 : 2.1.

HUMAN RESOURCE MANAGEMENT

1. Briefly explain the employee Selection Process with any real world example.
How Google Hires: THE CORE
- Looking for the next Noogler - someone whos good for the role good for !oogle and good
at lots of things.
- "hings mo#e at internet speed. $e look for people who are great at lots of things lo#e %ig
challenges and welcome %ig changes.
- "hey do not ha#e too many specialists in one partic&lar area.
- "hey look for people who are good for !oogle'and not (&st for right now %&t for the long
term.
- "he path to getting hired &s&ally in#ol#es a first con#ersation with a recr&iter a phone
inter#iew and an onsite inter#iew at one of o&r offices.
The Interview ro!ess:
- !oogle looks for smart team-oriented people who can get things done.
- !oogle looks for ) things when they inter#iew a candidate. "he ) parameters are as follows:
"1# $e%&ershi:
!oogle wants to know how the prospect %eha#es in different sit&ations in order to mo%ili*e a
team. "his might %e %y asserting a leadership role at work or with an organi*ation or %y
helping a team s&cceed when yo& werent officially appointed as the leader.
"2# Role'Rel%te& (nowle&ge:
!oogle looks for people who ha#e a #ariety of strengths and passions not (&st isolated skill
sets. "hey also want to make s&re that the prospects ha#e the experience and the %ackgro&nd
that will set them &p for s&ccess in roles. +or engineering candidates in partic&lar theyll %e
looking to check o&t the coding skills and technical areas of expertise.
")# How *o+ Thin,:
!oogle is less concerned a%o&t grades and transcripts and more interested in how the propects
think. "heyre likely to ask some role-related ,&estions that pro#ide insight into how the
prospects sol#e pro%lems.
"-# Google.ness:
!oogle wants to know what makes the prospect what he-she what he c&rrently is. "hey also
want to make s&re as to ggogle is a place a prospect will thri#e so thayll %e looking for signs
aro&nd the prospects comfort with am%ig&ity their %ias to action and their colla%orati#e
nat&re.
/ee&0%!, 1ro2 2+ltile googlers:
- .t !oogle one works on tons of pro(ects with different gro&ps of !ooglers across many
teams and time *ones. "o gi#e a sense of what working in google is really like some of the
inter#iewers co&ld %e potential teammates %&t some inter#iewers will %e with other teams.
"his helps to see how one might colla%orate and fit in at !oogle o#erall.
In&een&ent !o22ittees o1 Googlers hels ens+re hiring 1or the long ter2:
- .n independent committee of !ooglers re#iews feed%ack from all of the inter#iewers. "his
committee is responsi%le for ens&ring the hiring process is fair and that google is holding tr&e
to /good for !oogle0 standards as it grows.
The 0otto2 line
!oogle %elie#es that if they hire great people and in#ol#e them intensi#ely in the hiring process theyll get
more great people. 1#er the past co&ple of years they#e spent a lot of time making the hiring process as
efficient as possi%le - red&cing time-to-hire and increasing comm&nications to candidates. $hile in#ol#ing
!ooglers in process does take longer %&t they %elie#e its worth it. "heir early !ooglers identified these
principles more than ten years ago and its what allows them to hold tr&e to who they are as they grow.
"hese core principles are tr&e across !oogle %&t when it comes to specifics there are some pieces of
process that look a little different across teams.
.t !oogle they dont (&st accept difference - they cele%rate it they s&pport it and they thri#e on it for the
%enefit of their employees their prod&cts and their comm&nity. !oogle is pro&d to %e an e,&al opport&nity
workplace and is an affirmati#e action employer.
2. 3isc&ss the Stat&tory and non- stat&tory %enefits pro#ided for employees in an organi*ation with which
yo& are familiar4
. general high le#el o#er#iew of common stat&tory and non-stat&tory %enefits pro#ided for employee
welfare in .xis Bank are as follows:
St%t+tor. 3el1%re S!he2es
"he stat&tory welfare schemes incl&de the following pro#isions:
Drin,ing 3%ter: .t all the working places safe hygienic drinking water sho&ld %e pro#ided.
/%!ilities 1or sitting: 5n e#ery organi*ation especially factories s&ita%le seating arrangements are
to %e pro#ided.
/irst %i& %li%n!es: +irst aid appliances are to %e pro#ided and sho&ld %e readily assessa%le so
that in case of any minor accident initial medication can %e pro#ided to the needed employee.
$%trines %n& Urin%ls: . s&fficient n&m%er of latrines and &rinals are to %e pro#ided in the office
and factory premises and are also to %e maintained in a neat and clean condition.
C%nteen 1%!ilities: 6afeteria or canteens are to %e pro#ided %y the employer so as to pro#ide
hygienic and n&tritio&s food to the employees.
Sittoons: 5n e#ery work place s&ch as ware ho&ses store places in the dock area and office
premises spittoons are to %e pro#ided in con#enient places and same are to %e maintained in a
hygienic condition.
$ighting: Proper and s&fficient lights are to %e pro#ided for employees so that they can work
safely d&ring the night shifts.
3%shing l%!es: .de,&ate washing places s&ch as %athrooms wash %asins with tap and tap on
the stand pipe are pro#ided in the port area in the #icinity of the work places.
Ch%nging roo2s: .de,&ate changing rooms are to %e pro#ided for workers to change their cloth
in the factory area and office premises. .de,&ate lockers are also pro#ided to the workers to keep
their clothes and %elongings.
Rest roo2s: .de,&ate n&m%ers of restrooms are pro#ided to the workers with pro#isions of water
s&pply wash %asins toilets %athrooms etc.
Non St%t+tor. S!he2es
7any non stat&tory welfare schemes may incl&de the following schemes:
4erson%l He%lth C%re "Reg+l%r 2e&i!%l !he!,'+s#: Some of the companies pro#ide the facility
for extensi#e health check-&p
/le5i'ti2e: "he main o%(ecti#e of the flextime policy is to pro#ide opport&nity to employees to
work with flexi%le working sched&les. +lexi%le work sched&les are initiated %y employees and
appro#ed %y management to meet %&siness commitments while s&pporting employee personal life
needs
E2lo.ee Assist%n!e 4rogr%2s: 8ario&s assistant programs are arranged like external
co&nseling ser#ice so that employees or mem%ers of their immediate family can get co&nseling on
#ario&s matters.
H%r%ss2ent 4oli!.: "o protect an employee from harassments of any kind g&idelines are
pro#ided for proper action and also for protecting the aggrie#ed employee.
M%ternit. 6 A&otion $e%ve: 9mployees can a#ail maternity or adoption lea#es. Paternity lea#e
policies ha#e also %een introd&ced %y #ario&s companies.
Me&i'!l%i2 Ins+r%n!e S!he2e: "his ins&rance scheme pro#ides ade,&ate ins&rance co#erage of
employees for expenses related to hospitali*ation d&e to illness disease or in(&ry or pregnancy.
DRM22 : 2.2. MAR(ETING MANAGEMENT
1. 9xplain the different stages of Prod&ct Life 6ycle and strategies to %e followed for each stage.
1#er 2:::: new offerings incl&ding con#enience foods health and %ea&ty aids electronics a&tomo%iles
pharmace&tical prod&cts hotels resta&rants and so on enter the marketplace each year. +or example in
2::; almost 1):: food prod&cts making a /whole grain claim0 were introd&ced. 1ther recent new prod&ct
introd&ctions incl&de many technological prod&cts s&ch as Nintendos $i-+i iPods and digital #ideo
recorders <38=s>? many new personal care prod&cts s&ch as new fragrances of shampoo and conditioner
and new fla#ors of toothpaste? and new con#enience foods s&ch as fro*en meals /1:: calorie pack0 snacks
and cereal %ars.
1nce a prod&ct is created and introd&ced in the marketplace the offering m&st %e managed effecti#ely for
the c&stomer to recei#e #al&e from it. 1nly if this is done will the prod&cts prod&cer achie#e its profit
o%(ecti#es and %e a%le to s&stain the offering in the marketplace. "he process in#ol#es making many
complex decisions especially if the prod&ct is %eing introd&ced in glo%al markets. Before introd&cing
prod&cts in glo%al markets an organi*ation m&st e#al&ate and &nderstand factors in the external
en#ironment incl&ding laws and reg&lations the economy and stage of economic de#elopment the
competitors and s&%stit&tes c&lt&ral #al&es and market needs. 6ompanies also need expertise to
s&ccessf&lly la&nch prod&cts in foreign markets. !i#en many possi%le constraints in international markets
companies might initially introd&ce a prod&ct in limited areas a%road. 1ther organi*ations s&ch as 6oca-
6ola decide to compete in markets worldwide.
"he ro&+!t li1e !.!le "4$C# incl&des the stages the prod&ct goes thro&gh after de#elopment from
introd&ction to the end of the prod&ct. @&st as children go thro&gh different phases in life <toddler
elementary school adolescent yo&ng ad&lt and so on> prod&cts and ser#ices also age and go thro&gh
different stages. "he PL6 is a %eneficial tool that helps marketers manage the stages of a prod&cts
acceptance and s&ccess in the marketplace %eginning with the prod&cts introd&ction its growth in market
share mat&rity and possi%le decline in market share. 1ther tools s&ch as the Boston 6ons&lting !ro&p
matrix and the !eneral 9lectric approach may also %e &sed to manage and make decisions a%o&t what to do
with prod&cts. +or example when a market is no longer growing %&t the prod&ct is doing well <cash cow in
the B6! approach> the company may decide to &se the money from the cash cow to in#est in other
prod&cts they ha#e rather than contin&ing to in#est in the prod&ct in a no-growth market.
"he prod&ct life cycle can #ary for different prod&cts and different prod&ct categories.ALife 6ycleA
ill&strates an example of the prod&ct life cycle showing how a prod&ct can mo#e thro&gh fo&r stages.
Bowe#er not all prod&cts go thro&gh all stages and the length of a stage #aries. +or example some
prod&cts ne#er experience market share growth and are withdrawn from the market.
1ther prod&cts stay in one stage longer than others. +or example in 1CC2 Pepsi6o introd&ced a prod&ct
called 6lear Pepsi which went from introd&ction to decline #ery rapidly. By contrast 3iet 6oke entered
the growth market soon after its introd&ction in the early 1CD:s and then entered <and remains in> the
mat&re stage of the prod&ct life cycle. New comp&ter prod&cts and software and #ideo games often ha#e
limited life cycles whereas prod&ct categories s&ch as diamonds and d&ra%le goods <kitchen appliances>
generally ha#e longer life cycles. Bow a prod&ct is promoted priced distri%&ted or modified can also #ary
thro&gho&t its life cycle. Lets now look at the #ario&s prod&ct life cycle stages and what characteri*es
each.
The Intro&+!tion St%ge
"he first stage in a prod&cts life cycle is the intro&+!tion st%ge. "he introd&ction stage is the same as
commerciali*ation or the last stage of the new prod&ct de#elopment process. 7arketing costs are typically
higher in this stage than in other stages. .s an analogy think a%o&t the amo&nt of f&el a plane needs for
takeoff relati#e to the amo&nt it needs while in the air. @&st as an airplane needs more f&el for takeoff a
new prod&ct or ser#ice needs more f&nds for introd&ction into the marketplace. 6omm&nication
<promotion> is needed to generate awareness of the prod&ct and pers&ade cons&mers to try it and
placement alternati#es and s&pply chains are needed to deli#er the prod&ct to the c&stomers. Profits are
often low in the introd&ctory stage d&e to the research and de#elopment costs and the marketing costs
necessary to la&nch the prod&ct.
"he length of the introd&ctory stage #aries for different prod&cts. Bowe#er %y law in the Enited States a
company is only allowed to &se the la%el /new0 on a prod&cts package for six months. .n organi*ations
o%(ecti#es d&ring the introd&ctory stage often in#ol#e ed&cating potential c&stomers a%o&t its #al&e and
%enefits creating awareness and getting potential c&stomers to try the prod&ct or ser#ice. !etting prod&cts
and ser#ices partic&larly m&ltinational %rands accepted in foreign markets can take e#en longer.
6onse,&ently companies introd&cing prod&cts and ser#ices a%road generally m&st ha#e the financial
reso&rces to make a long-term <longer than one year> commitment to their s&ccess.
"he specific promotional strategies a company &ses to la&nch a prod&ct #ary depending on the type of
prod&ct and the n&m%er of competitors it faces in the market. +irms that man&fact&re prod&cts s&ch as
cereals snacks toothpastes soap and shampoos often &se mass marketing techni,&es s&ch as tele#ision
commercials and 5nternet campaigns and promotional programs s&ch as co&pons and sampling to reach
cons&mers. "o reach wholesalers and retailers s&ch as $almart "arget and grocery stores firms &tili*e
personal selling. 7any firms promote to c&stomers retailers and wholesalers. Sometimes other more
targeted ad#ertising strategies are employed s&ch as %ill%oards and transit signs <signs on %&ses taxis
s&%ways and so on>. +or more technical or expensi#e prod&cts s&ch as comp&ters or plasma tele#isions
many firms &tili*e personal selling informational promotions and in-store demonstrations so cons&mers
can see how the prod&cts work.
Many new convenient snack packages, such as jelly snacks and packages of different sizes, are available in
China and the United States.
3&ring introd&ction an organi*ation m&st ha#e eno&gh distri%&tion o&tlets <places where the prod&ct is
sold or the ser#ice is a#aila%le> to get the prod&ct or ser#ice to the c&stomers. "he prod&ct ,&antities m&st
also %e a#aila%le to meet demand. +or example 5B7s "hinkPad was a %ig hit when it was first introd&ced
%&t the demand for it was so great that 5B7 wasnt a%le to prod&ce eno&gh of the prod&ct. 6ooperation
from a companys s&pply chain mem%ers'its man&fact&rers wholesalers and so forth'helps ens&re that
s&pply meets demand and that #al&e is added thro&gho&t the process.
$hen yo& were growing &p yo& may remem%er eating =ice Frispies "reats cereal a #ery pop&lar prod&ct.
"he prod&ct was so pop&lar that Felloggs co&ld not keep &p with initial demand and placed ads to
cons&mers apologi*ing for the pro%lem. $hen demand is higher than s&pply the door opens for
competitors to enter the market which is what happened when the microwa#e was introd&ced. 7ost people
own a microwa#e and prices ha#e dropped significantly since .mana introd&ced the first microwa#e at a
price of almost GH::. .s cons&mers in the Enited States initially saw and heard a%o&t the prod&ct sales
increased from forty tho&sand &nits to o#er a million &nits in only a few years. Sales in @apan increased
e#en more rapidly d&e to a lower price. .s a res&lt of the high demand in %oth co&ntries many competitors
entered the market and prices dropped.
Prod&ct pricing strategies in the introd&ctory stage can #ary depending on the type of prod&ct competing
prod&cts the extra #al&e the prod&ct pro#ides cons&mers #ers&s existing offerings and the costs of
de#eloping and prod&cing the prod&ct. 1rgani*ations want cons&mers to percei#e that a new offering is
%etter or more desira%le than existing prod&cts. "wo strategies that are widely &sed in the introd&ctory
stage are penetration pricing and skimming.
. enetr%tion ri!ing str%teg. in#ol#es &sing a low initial price to enco&rage many c&stomers to try a
prod&ct. "he organi*ation hopes to sell a high #ol&me in order to generate s&%stantial re#en&es. New
#arieties of cereals fragrances of shampoo scents of detergents and snack foods are often introd&ced at
low initial prices. Seldom does a company &tili*e a high price strategy with a prod&ct s&ch as this. "he low
initial price of the prod&ct is often com%ined with ad#ertising co&pons samples or other special incenti#es
to increase awareness of the prod&ct and get cons&mers to try it.
. company &ses a s,i22ing ri!ing str%teg. which in#ol#es setting a high initial price for a prod&ct to
more ,&ickly reco&p the in#estment related to its de#elopment and marketing. "he skimming strategy
attracts the top or high end of the market. !enerally this market consists of c&stomers who are not as price
sensiti#e or who are early adopters of prod&cts. +irms that prod&ce electronic prod&cts s&ch as 38=s
plasma tele#isions and digital cameras set their prices high in the introd&ctory stage. Bowe#er the high
price m&st %e consistent with the nat&re of the prod&ct as well as the other marketing strategies %eing &sed
to promote it. +or example engaging in more personal selling to c&stomers r&nning ads targeting specific
gro&ps of c&stomers and placing the prod&ct in a limited n&m%er of distri%&tion o&tlets are likely to %e
strategies firms &se in con(&nction with a skimming approach.
The Growth St%ge
5f a prod&ct is accepted %y the marketplace it enters the growth stage of the prod&ct life cycle. "he growth
st%ge is characteri*ed %y increasing sales more competitors and higher profits. Enfort&nately for the firm
the growth stage attracts competitors who enter the market #ery ,&ickly. +or example when 3iet 6oke
experienced great s&ccess Pepsi soon entered with 3iet Pepsi. Io&ll notice that %oth 6oca-6ola and Pepsi
ha#e similar competiti#e offerings in the %e#erage ind&stry incl&ding their own %rands of %ottled water
(&ice and sports drinks. .s additional c&stomers %egin to %&y the prod&ct man&fact&rers m&st ens&re that
the prod&ct remains a#aila%le to c&stomers or r&n the risk of them %&ying competitors offerings. +or
example the prod&cers of #ideo game systems s&ch as Nintendos $i-+i co&ld not keep &p with cons&mer
demand when the prod&ct was first la&nched. 6onse,&ently some cons&mers p&rchased competing game
systems s&ch as 7icrosofts J%ox.
Deand for the !intendo "i#$i increased sharply after the product%s introduction.
. company sometimes increases its promotional spending on a prod&ct d&ring its growth stage. Bowe#er
instead of enco&raging cons&mers to try the prod&ct the promotions often foc&s on the specific %enefits the
prod&ct offers and its #al&e relati#e to competiti#e offerings. 5n other words altho&gh the company m&st
still inform and ed&cate c&stomers it m&st co&nter the competition. 9mphasi*ing the ad#antages of the
prod&cts %rand name can help a company maintain its sales in the face of competition. .ltho&gh different
organi*ations prod&ce personal comp&ters a highly recogni*ed %rand s&ch as 5B7 strengthens a firms
ad#antage when competitors enter the market. New offerings that &tili*e the same s&ccessf&l %rand name as
a companys already existing offerings which is what Black K 3ecker does with some of its prod&cts can
gi#e a company a competiti#e ad#antage. 6ompanies typically %egin to make a profit d&ring the growth
stage %eca&se more &nits are %eing sold and more re#en&e is generated.
"he n&m%er of distri%&tion o&tlets <stores and dealers> &tili*ed to sell the prod&ct can also increase d&ring
the growth stage as a company tries to reach as m&ch of the marketplace as possi%le. 9xpanding a prod&cts
distri%&tion and increasing its prod&ction to ens&re its a#aila%ility at different o&tlets &s&ally res&lts in a
prod&cts costs remaining high d&ring the growth stage. "he price of the prod&ct itself typically remains at
a%o&t the same le#el d&ring the growth stage altho&gh some companies red&ce their prices slightly to
attract additional %&yers and meet the competitors prices. 6ompanies hope %y increasing their sales they
also impro#e their profits.
The M%t+rit. St%ge
.fter many competitors enter the market and the n&m%er of potential new c&stomers declines the sales of a
prod&ct typically %egin to le#el off. "his indicates that a prod&ct has entered the 2%t+rit. st%ge of its life
cycle. 7ost cons&mer prod&cts are in the mat&re stage of their life cycle? their %&yers are repeat p&rchasers
#ers&s new c&stomers. 5ntense competition ca&ses profits to fall &ntil only the strongest players remain. "he
mat&rity stage lasts longer than other stages. L&aker 1ats and 5#ory Soap are prod&cts in the mat&rity stage
'they ha#e %een on the market for o#er one h&ndred years.
!i#en the competiti#e en#ironment in the mat&rity stage many prod&cts are promoted hea#ily to
cons&mers %y stronger competitors. "he strategies &sed to promote the prod&cts often foc&s on #al&e and
%enefits that gi#e the offering a competiti#e ad#antage. "he promotions aimed at a companys distri%&tors
may also increase d&ring the mat&re stage. 6ompanies may decrease the price of mat&re prod&cts to
co&nter the competition. Bowe#er they m&st %e caref&l not to get into /price wars0 with their competitors
and destroy all the profit potential of their markets threatening a firms s&r#i#al. 5ntel and .d#anced 7icro
3e#ices <.73> ha#e engaged in se#eral price wars with regard to their microprocessors. Likewise
Sams&ng added feat&res and lowered the price on its 5nstinct mo%ile phone engaging in a price war with
.pples iPhone. $ith the weakened economy many online retailers engaged in price wars d&ring the 2::D
holiday season %y c&tting prices on their prod&cts and shipping costs. .ltho&gh large organi*ations s&ch as
.ma*on.com can a%sor% shipping costs price wars often h&rt smaller retailers. 7any retailers learned from
their mistakes and ordered less in#entory for the 2::C holiday season.
6ompanies are challenged to de#elop strategies to extend the mat&rity stage of their prod&cts so they
remain competiti#e. 7any firms do so %y modifying their target markets their offerings or their marketing
strategies. Next we look at each of these strategies.
7odifying the target market helps a company attract different c&stomers %y seeking new &sers going after
different market segments or finding new &ses for a prod&ct in order to attract additional c&stomers.
+inancial instit&tions and a&tomo%ile dealers reali*ed that women ha#e increased %&ying power and now
market to them. $ith the growth in the n&m%er of online shoppers more organi*ations sell their prod&cts
and ser#ices thro&gh the 5nternet. 9ntering new markets pro#ides companies an opport&nity to extend the
prod&ct life cycles of their different offerings.
7any companies enter different geographic markets or international markets as a strategy to get new &sers.
. prod&ct that might %e in the mat&re stage in one co&ntry might %e in the introd&ctory stage in another
market. +or example when the E.S. market %ecame sat&rated 7c3onalds %egan opening resta&rants in
foreign markets. 6ell phones were #ery pop&lar in .sia %efore they were introd&ced in the Enited States.
7any cell phones in .sia are %eing &sed to scan co&pons and to charge p&rchases. Bowe#er the market in
the Enited States might not %e ready for that type of technology.
7odifying the prod&ct s&ch as changing its packaging si*e fla#ors colors or ,&ality can also extend the
prod&cts mat&rity stage. "he 1:: 6alorie Packs created %y Na%isco pro#ide an example of how a company
changed the packaging and si*e to pro#ide con#enience and one-h&ndred-calorie portions for cons&mers.
$hile the sales of many packaged foods fell the sales of the 1:: 6alorie Packs increased to o#er G2::
million prompting Na%isco to repackage more prod&cts. Fraft +oods extended the mat&re stage of different
crackers s&ch as $heat "hins and "risc&its %y creating different fla#ors. .ltho&gh not pop&lar with
cons&mers many companies &ownsi7e <or decrease> the package si*es of their prod&cts or the amo&nt of
the prod&ct in the packages to sa#e money and keep prices from rising too m&ch.
6ar man&fact&rers modify their #ehicles slightly each year to offer new styles and new safety feat&res.
9#ery three to fi#e years a&tomo%ile man&fact&rers do more extensi#e modifications. 6hanging the
package or adding #ariations or feat&res are common ways to extend the mat&re stage of the life cycle.
Pepsi recently changed the design and packaging of its soft drinks and "ropicana (&ice prod&cts. Bowe#er
cons&mers tho&ght the new (&ice package looked like a less expensi#e %rand which made the ,&ality of the
prod&ct look poorer. .s a res&lt Pepsi res&med the &se of the original "ropicana carton. Pepsis redesigned
soda cans also recei#ed negati#e cons&mer re#iews.
$hen introd&cing prod&cts to international markets firms m&st decide if the prod&ct can %e st%n&%r&i7e&
<kept the same> or how m&ch if any %&%t%tion or changing of the prod&ct to meet the needs of the local
c&lt&re is necessary. .ltho&gh it is m&ch less expensi#e to standardi*e prod&cts and promotional strategies
c&lt&ral and en#ironmental differences &s&ally re,&ire some adaptation. Prod&ct colors and packages as
well as prod&ct names m&st often %e changed %eca&se of c&lt&ral differences. +or example in many .sian
and 9&ropean co&ntries 6oca-6olas diet drinks are called /light0 not diet. !9 makes smaller appliances
s&ch as washers and dryers for the @apanese market. By&ndai 7otor 6ompany had to impro#e the ,&ality
of its a&tomo%iles in order to compete in the E.S. market. 6ompanies m&st also examine the external
en#ironment in foreign markets since the reg&lations competition and economic conditions #ary as well as
the c&lt&res.
&n 'urope, diet drinks are called (light,) not diet. *his Coca#Cola product is available in +erany.
.
Some companies modify the marketing strategy for one or more marketing #aria%les of their prod&cts. +or
example many coffee shops and fast-food resta&rants s&ch as 7c3onalds now offer specialty coffee that
competes with Star%&cks. .s a res&lt Star%&cks managers a decided it was time to change the companys
strategy. 1#er the years Star%&cks had added l&nch offerings and mo#ed away from grinding coffee in the
stores to pro#ide faster ser#ice for its c&stomers. Bowe#er c&stomers missed the coffee shop atmosphere
and the aroma of freshly %rewed coffee and didnt like the smell of all the l&nch items.
.s a res&lt of falling market share Star%&cks former 691 and fo&nder Boward Sch&lt* ret&rned to the
company. Sch&lt* hired cons&ltants to determine how to modify the firms offering and extend the mat&rity
stage of their life cycle. S&%se,&ently Star%&cks changed the atmosphere of many of its stores %ack to that
of traditional coffee shops modified its l&nch offerings in many stores and res&med grinding coffee in
stores to pro#ide the aroma c&stomers missed. "he company also modified some of its offerings to pro#ide
health-conscio&s cons&mers lower-calorie alternati#es. .fter the E.S. economy weakened in 2::C
Star%&cks anno&nced it wo&ld %egin selling instant coffee for a%o&t a dollar a c&p to appeal to c&stomers
who were str&ggling financially %&t still wanted a special c&p of coffee. "he firm also changed its
comm&nication with c&stomers %y &tili*ing more interacti#e media s&ch as %logs.
*he oldest operating McDonald%s is in California.

$hereas Star%&cks might ha#e o#erexpanded 7c3onalds plans to add fo&rteen tho&sand coffee %ars to
selected stores. 5n addition to the coffee %ars many 7c3onalds stores are remodeling their interiors to
feat&re flat screen tele#isions recessed lighting and wireless 5nternet access. 1ther 7c3onalds resta&rants
kept their original design which c&stomers still like.
The De!line St%ge
$hen sales decrease and contin&e to drop to lower le#els the prod&ct has entered the &e!line st%ge of the
prod&ct life cycle. 5n the decline stage changes in cons&mer preferences technological ad#ances and
alternati#es that satisfy the same need can lead to a decrease in demand for a prod&ct. Bow many of yo&r
fellow st&dents do yo& think ha#e &sed a typewriter adding machine or slide r&le4 6omp&ters replaced the
typewriter and calc&lators replaced adding machines and the slide r&le. .sk yo&r parents a%o&t eight-track
tapes which were pop&lar %efore cassette tapes which were pop&lar %efore 63s. Some prod&cts decline
slowly. 1thers go thro&gh a rapid le#el of decline. 7any fads and fashions for yo&ng people tend to ha#e
#ery short life cycles and go /o&t of style0 #ery ,&ickly. <5f yo&#e e#er asked yo&r parents to %orrow
clothes from the 1CC:s yo& may %e am&sed at how m&ch the styles ha#e changed.> Similarly many
st&dents dont ha#e landline phones or 86= players and cannot %elie#e that people still &se the /o&tdated0
de#ices. Similarly payphones are rapidly %ecoming o%solete. "echnical prod&cts s&ch as digital cameras
cell phones and #ideo games that appeal to yo&ng people often ha#e limited life cycles. 6ompanies m&st
decide what strategies to take when their prod&cts enter the decline stage. "o sa#e money some companies
try to red&ce their promotional expendit&res on these prod&cts and the n&m%er of distri%&tion o&tlets in
which they are sold. "hey might implement price c&ts to get c&stomers to %&y the prod&ct. H%rvesting the
prod&ct entails grad&ally red&cing all costs spent on it incl&ding in#estments made in the prod&ct and
marketing costs. By red&cing these costs the company hopes that the profits from the prod&ct will increase
&ntil their in#entory r&ns o&t. .nother option for the company is &ivesting <dropping or deleting> the
prod&ct from its offerings. "he company might choose to sell the %rand to another firm or simply red&ce
the price drastically in order to get rid of all remaining in#entory. 5f a company decides to keep the prod&ct
it may lose money or make money if competitors drop o&t. 7any companies decide the %est strategy is to
modify the prod&ct in the mat&rity stage to a#oid entering the decline stage.
(E* TA(EA3A*
"he prod&ct life cycle helps a company &nderstand the stages <introd&ction growth mat&rity and decline>
a prod&ct or ser#ice may go thro&gh once it is la&nched in the marketplace. "he n&m%er and length of
stages can #ary. $hen a prod&ct is la&nched or commerciali*ed it enters the introd&ction stage. 6ompanies
m&st try to generate awareness of the prod&ct and enco&rage cons&mers to try it. 3&ring the growth stage
companies m&st demonstrate the prod&cts %enefits and #al&e to pers&ade c&stomers to %&y it #ers&s
competing prod&cts. Some prod&cts ne#er experience growth. "he ma(ority of prod&cts are in the mat&re
stage. 5n the mat&re stage sales le#el off and the market typically has many competitors. 6ompanies
modify the target market the offering or the marketing mix in order to extend the mat&re stage and keep
from going into decline. 5f a prod&ct goes into decline a company m&st decide whether to keep the prod&ct
har#est and red&ce the spending on it &ntil the entire in#entory is sold or di#est and get rid of the prod&ct.
2. 3isc&ss the concept of c&stomer =elationship 7anagement - Bighlight its importance in the glo%ali*ed
scenario.
9#ery %&siness &nit emphasi*es on sp&rting a long term relationship with c&stomers to n&rt&re its sta%ility
in todays %looming market. 6&stomers expectations are now not only limited to get %est prod&cts and
ser#ices they also need a face-to-face %&siness in which they want to recei#e exactly what they demand
and in a ,&ick time
6&stomer =elationship 7anagement is an &pright concept or strategy to solidify relations with c&stomers
and at the same time red&cing cost and enhancing prod&cti#ity and profita%ility in %&siness. .n ideal 6=7
system is a centrali*ed collection all data so&rces &nder an organi*ation and pro#ides an atomistic real time
#ision of c&stomer information. . 6=7 system is #ast and significant %&t it %e can implemented for small
%&siness as well as large enterprises also as the main goal is to assist the c&stomers efficiently.
Es&ally an organi*ation consists of #ario&s departments which predominantly ha#e access to c&stomers
information either directly or indirectly. . 6=7 system piles &p this information centrally examines it and
then makes it addressa%le within all the departments. Lets take an example of an international call center
which &ses a 6=7 tool called Mxy* and is integrated with a phone and a comp&ter system or laptop. Now
this system a&tomatically percei#es which c&stomer is calling. Before the exec&ti#e attends the phone the
6=7 system %rings forth the c&stomer details on the comp&ter or laptop screen and also indicates what the
opport&nity of deals is with that partic&lar c&stomer what the c&stomer had already p&rchased or ordered in
past and what is the pro%a%ility of %&ying in f&t&re. Not only this it can also highlight what all prod&cts
%est s&it this c&stomer. +or finance department it may show the information regarding the c&rrent %alance
and for acco&nting department it may pop o&t the information regarding the recent p&rchases %y the
c&stomer. .ll these pieces of data are stored in the 6=7 data%ase and are a#aila%le as and when it is
needed. .ccording to this example 6=7 system pro#ides a well defined platform for all %&siness &nits to
interact with their clients and f&lfill all their needs and demands #ery effecti#ely and to %&ild long-term
relationship.
$angling this kind of relationship with c&stomers is not easy to manage and it depends on how the
systematically and flexi%ly a 6=7 system is implemented or integrated. B&t once its accomplished it
ser#es the %est way in dealing with c&stomers. 5n t&rn c&stomers feels gratit&de of self-satisfaction and
loyalty which res&lts in %etter %onding with s&pplier and hence increasing the %&siness
. 6=7 system is not only &sed to deal with the existing c&stomers %&t is also &sef&l in ac,&iring new
c&stomers. "he process first starts with identifying a c&stomer and maintaining all the corresponding details
into the 6=7 system which is also called an M1pport&nity of B&siness. "he Sales and +ield representati#es
then try getting %&siness o&t of these c&stomers %y sophistically following &p with them and con#erting
them into a winning deal
6&stomer =elationship 7anagement strategies ha#e gi#en a new o&tlook to all the s&ppliers and c&stomers
to keep the %&siness going &nder an estima%le relationship %y f&lfilling m&t&al needs of %&ying and selling
6&stomer =elationship management is the strongest and the most efficient approach in maintaining and
creating relationships with c&stomers. 6&stomer relationship management is not only p&re %&siness %&t also
ideate strong personal %onding within people. 3e#elopment of this type of %onding dri#es the %&siness to
new le#els of s&ccess.
1nce this personal and emotional linkage is %&ilt it is #ery easy for any organi*ation to identify the act&al
needs of c&stomer and help them to ser#e them in a %etter way. 5t is a %elief that more the sophisticated
strategies in#ol#ed in implementing the c&stomer relationship management the more strong and fr&itf&l is
the %&siness. 7ost of the organi*ations ha#e dedicated world class tools for maintaining 6=7 systems into
their workplace. Some of the efficient tools &sed in most of the renowned organi*ation are BatchBook
Salesforce B&**stream S&gar 6=7 etc.
Looking at some %roader perspecti#es gi#en as %elow we can easily determine why a 6=7 System is
always important for an organi*ation 5N "B9 !L1B.L5S93 S69N.=51.
. 6=7 system consists of a historical #iew and analysis of all the ac,&ired or to %e ac,&ired c&stomers.
"his helps in red&ced searching and correlating c&stomers and to foresee c&stomer needs effecti#ely and
increase %&siness
6=7 contains each and e#ery %it of details of a c&stomer hence it is #ery easy for track a c&stomer
accordingly and can %e &sed to determine which c&stomer can %e profita%le and which not
5n 6=7 system c&stomers are gro&ped according to different aspects according to the type of %&siness
they do or according to physical location and are allocated to different c&stomer managers often called as
acco&nt managers. "his helps in foc&sing and concentrating on each and e#ery c&stomer separately
. 6=7 system is not only &sed to deal with the existing c&stomers %&t is also &sef&l in ac,&iring new
c&stomers. "he process first starts with identifying a c&stomer and maintaining all the corresponding details
into the 6=7 system which is also called an M1pport&nity of B&siness. "he Sales and +ield representati#es
then try getting %&siness o&t of these c&stomers %y sophistically following &p with them and con#erting
them into a winning deal. .ll this is #ery easily and efficiently done %y an integrated 6=7 system
"he strongest aspect of 6&stomer =elationship 7anagement is that it is #ery cost-effecti#e. "he ad#antage
of decently implemented 6=7 system is that there is #ery less need of paper and man&al work which
re,&ires lesser staff to manage and lesser reso&rces to deal with. "he technologies &sed in implementing a
6=7 system are also #ery cheap and smooth as compared to the traditional way of %&siness
.ll the details in 6=7 system is kept centrali*ed which is a#aila%le anytime on fingertips. "his red&ces the
process time and increases prod&cti#ity.
9fficiently dealing with all the c&stomers and pro#iding them what they act&ally need increases the
c&stomer satisfaction. "his increases the chance of getting more %&siness which &ltimately enhances
t&rno#er and profit.
5f the c&stomer is satisfied they will always %e loyal to yo& and will remain in %&siness fore#er res&lting in
increasing c&stomer %ase and &ltimately enhancing net growth of %&siness.
5n todays commercial world practice of dealing with existing c&stomers and thri#ing %&siness %y getting
more c&stomers into loop is predominant and is mere a dilemma. 5nstalling a 6=7 system can definitely
impro#e the sit&ation and help in challenging the new ways of marketing and %&siness in an efficient
manner. Bence in the era of %&siness e#ery organi*ation sho&ld %e recommended to ha#e a f&ll-fledged
6=7 system to cope &p with all the %&siness needs.
DRM2): 2.). /INANCIA$ MANAGEMENT
1. 9xamine the techni,&es a#aila%le to meas&re risk in capital %&dgeting decisions.
C%it%l 8+&geting
6apital %&dgeting is defined as the process of planning for pro(ects on assets with cash flows of a period
greater than one year.
"hese pro(ects can %e classified as:
- =eplacement decisions to maintain the %&siness
- 9xisting prod&ct or market expansion
- New prod&cts and ser#ices
- =eg&latory safety and en#ironmental
- 1ther incl&ding pet pro(ects or diffic&lt to e#al&ate pro(ects
.dditionally pro(ects can also %e classified as 2+t+%ll. e5!l+sive or in&een&ent:
' 7&t&ally excl&si#e pro(ects indicate there is only one pro(ect among all possi%le pro(ects that can %e
accepted.
' 5ndependent pro(ects are potential pro(ects that are &nrelated and any com%ination of those pro(ects can
%e accepted.
The I2ort%n!e o1 C%it%l 8+&geting
6apital %&dgeting is important for many reasons:
- Since pro(ects appro#ed #ia capital %&dgeting are long term the firm %ecomes tied to the pro(ect and loses
some of its flexi%ility d&ring that period.
- $hen making the decision to p&rchase an asset managers need to forecast the re#en&e o#er the life of
that asset.
- Lastly gi#en the length of the pro(ects capital-%&dgeting decisions &ltimately define the strategic plan of
the company.
Ris,
=isk is the potential that a chosen action or acti#ity <incl&ding the choice of inaction> will lead to a loss <an
&ndesira%le o&tcome>. "he notion implies that a choice ha#ing an infl&ence on the o&tcome exists <or
existed>. Potential losses themsel#es may also %e called Arisks. A
"here are n&mero&s kinds of risks to %e taken into acco&nt when considering capital %&dgeting incl&ding:
corporate risk
international risk <incl&ding c&rrency risk>
ind&stry-specific risk
market risk
stand-alone risk
pro(ect-specific risk
competiti#e risk
Coror%te /in%n!e ' Ris,'An%l.sis Te!hni9+es
5t is important to keep in mind that when a company analy*es a potential pro(ect it is forecasting potential
not act&al cash flows for a pro(ect. .s we all know forecasts are %ased on ass&mptions that may %e
incorrect. 5t is therefore important for a company to perform a sensiti#ity analysis on its ass&mptions to get
a %etter sense of the o#erall risk of the pro(ect the company is a%o&t to take.
"here are three risk-analysis techni,&es that sho&ld %e known for the exam:
1. Sensitivit. An%l.sis
Sensiti#ity analysis is simply the method for determining how sensiti#e o&r NP8 analysis is to changes in
o&r #aria%le ass&mptions. "o %egin a sensiti#ity analysis we m&st first come &p with a %ase-case scenario.
"his is typically the NP8 &sing ass&mptions we %elie#e are most acc&rate. +rom there we can change
#ario&s ass&mptions we had initially made %ased on other potential ass&mptions. NP8 is then recalc&lated
and the sensiti#ity of the NP8 %ased on the change in ass&mptions is determined. 3epending on o&r
confidence in o&r ass&mptions we can determine how potentially risky a pro(ect can %e.
2. S!en%rio An%l.sis
Scenario analysis takes sensiti#ity analysis a step f&rther. =ather than (&st looking at the sensiti#ity of o&r
NP8 analysis to changes in o&r #aria%le ass&mptions scenario analysis also looks at the pro%a%ility
distri%&tion of the #aria%les. Like sensiti#ity analysis scenario analysis starts with the constr&ction of a
%ase case scenario. +rom there other scenarios are considered known as the A%est-case scenarioA and the
Aworst-case scenarioA. Pro%a%ilities are assigned to the scenarios and comp&ted to arri#e at an expected
#al&e. !i#en its simplicity scenario analysis is one the most fre,&ently &sed risk-analysis techni,&es.
N. Monte C%rlo Si2+l%tion
7onte 6arlo sim&lation is considered to %e the A%estA method of sensiti#ity analysis. 5t comes &p with
infinite calc&lations <expected #al&es> gi#en a n&m%er of constraints. 6onstraints are added and the system
generates random #aria%les of inp&ts. +rom there NP8 is calc&lated. =ather than generating (&st a few
iterations the sim&lation repeats the process n&mero&s times. +rom the n&mero&s res&lts the expected
#al&e is then calc&lated.
Bence 3ifferent %&siness and market risks m&st %e taken into acco&nt when planning o&t the process of
capital %&dgeting.
2. 3isc&ss the present stat&s of 5ndian +inancial System
Intro&+!tion:
9conomic growth and de#elopment of any co&ntry depends &pon a well-knit financial system. +inancial
system comprises a set of s&%-systems of financial instit&tions financial markets financial instr&ments and
ser#ices which help in the formation of capital. "h&s a financial system pro#ides a mechanism %y which
sa#ings are transformed into in#estments and it can %e said that financial system play an significant role in
economic growth of the co&ntry %y mo%ili*ing s&rpl&s f&nds and &tili*ing them effecti#ely for prod&cti#e
p&rpose.
"he financial system is characteri*ed %y the presence of integrated organi*ed and reg&lated financial
markets and instit&tions that meet the short term and long term financial needs of %oth the ho&sehold and
corporate sector. Both financial markets and financial instit&tions play an important role in the financial
system %y rendering #ario&s financial ser#ices to the comm&nity. "hey operate in close com%ination with
each other.
/in%n!i%l S.ste2:
"he word AsystemA in the term Afinancial systemA implies a set of complex and closely connected or
interlined instit&tions agents practices markets transactions claims and lia%ilities in the economy. "he
financial system is concerned a%o&t money credit and finance-the three terms are intimately related yet are
somewhat different from each other. 5ndian financial system consists of financial market financial
instr&ments and financial intermediation
Role; /+n!tions o1 /in%n!i%l S.ste2:
. financial system performs the following f&nctions:
O 5t ser#es as a link %etween sa#ers and in#estors. 5t helps in &tili*ing the mo%ili*ed sa#ings of scattered
sa#ers in more efficient and effecti#e manner. 5t channelises flow of sa#ing into prod&cti#e in#estment.
O 5t assists in the selection of the pro(ects to %e financed and also re#iews the performance of s&ch pro(ects
periodically.
O 5t pro#ides payment mechanism for exchange of goods and ser#ices.
O 5t pro#ides a mechanism for the transfer of reso&rces across geographic %o&ndaries.
O 5t pro#ides a mechanism for managing and controlling the risk in#ol#ed in mo%ili*ing sa#ings and
allocating credit.
O 5t promotes the process of capital formation %y %ringing together the s&pply of sa#ing and the demand for
in#esti%le f&nds.
O 5t helps in lowering the cost of transaction and increase ret&rns. =ed&ce cost moti#es people to sa#e more.
O 5t pro#ides yo& detailed information to the operators- players in the market s&ch as indi#id&als %&siness
ho&ses !o#ernments etc.
Co2onents; Constit+ents o1 In&i%n /in%n!i%l s.ste2:
"he following are the fo&r main components of 5ndian +inancial system
1. +inancial instit&tions
2. +inancial 7arkets
N. +inancial 5nstr&ments-.ssets-Sec&rities
). +inancial Ser#ices.
/in%n!i%l instit+tions:
+inancial instit&tions are the intermediaries who facilitates smooth f&nctioning of the financial system %y
making in#estors and %orrowers meet. "hey mo%ili*e sa#ings of the s&rpl&s &nits and allocate them in
prod&cti#e acti#ities promising a %etter rate of ret&rn. +inancial instit&tions also pro#ide ser#ices to entities
seeking ad#ises on #ario&s iss&es ranging from restr&ct&ring to di#ersification plans. "hey pro#ide whole
range of ser#ices to the entities who want to raise f&nds from the markets elsewhere. +inancial instit&tions
act as financial intermediaries %eca&se they act as middlemen %etween sa#ers and %orrowers. $ere these
financial instit&tions may %e of Banking or Non-Banking instit&tions.
/in%n!i%l M%r,ets:
+inance is a prere,&isite for modern %&siness and financial instit&tions play a #ital role in economic system.
5tPs thro&gh financial markets the financial system of an economy works. "he main f&nctions of financial
markets are:
1. to facilitate creation and allocation of credit and li,&idity?
2. to ser#e as intermediaries for mo%ili*ation of sa#ings?
N. to assist process of %alanced economic growth?
). to pro#ide financial con#enience
/in%n!i%l Instr+2ents
.nother important constit&ent of financial system is financial instr&ments. "hey represent a claim against
the f&t&re income and wealth of others. 5t will %e a claim against a person or an instit&tions for the
payment of the some of the money at a specified f&t&re date.
/in%n!i%l Servi!es:
9fficiency of emerging financial system largely depends &pon the ,&ality and #ariety of financial ser#ices
pro#ided %y financial intermediaries. "he term financial ser#ices can %e defined as Aacti#ites %enefits and
satisfaction connected with sale of money that offers to &sers and c&stomers financial related #al&eA.
4re're1or2s 4h%se
Entil the early 1CC:s the role of the financial system in 5ndia was primarily restricted to the f&nction of
channelling reso&rces from the s&rpl&s to deficit sectors. $hereas the financial system performed this role
reasona%ly well its operations came to %e marked %y some serio&s deficiencies o#er the years. "he %anking
sector s&ffered from lack of competition low capital %ase low Prod&cti#ity and high intermediation cost.
.fter the nationali*ation of large %anks in 1C;C and 1CD: the !o#ernment-owned %anks dominated the
%anking sector. "he role of technology was minimal and the ,&ality of ser#ice was not gi#en ade,&ate
importance. Banks also did not follow proper risk management systems and the pr&dential standards were
weak. .ll these res&lted in poor asset ,&ality and low profita%ility. .mong non-%anking financial
intermediaries de#elopment finance instit&tions <3+5s> operated in an o#er-protected en#ironment with
most of the f&nding coming from ass&red so&rces at concessional terms. 5n the ins&rance sector there was
little competition. "he m&t&al f&nd ind&stry also s&ffered from lack of competition and was dominated for
long %y one instit&tion #i*. the Enit "r&st of 5ndia. Non-%anking financial companies <NB+6s> grew
rapidly %&t there was no reg&lation of their asset side. +inancial markets were characteri*ed %y control
o#er pricing of financial assets %arriers to entry high transaction costs and restrictions on mo#ement of
f&nds-participants %etween the market segments. "his apart from inhi%iting the de#elopment of the markets
also affected their efficiency.
/in%n!i%l Se!tor Re1or2s in In&i%
5t was in this %ackdrop that wide-ranging financial sector reforms in 5ndia were introd&ced as an integral
part of the economic reforms initiated in the early 1CC:s with a #iew to impro#ing the macroeconomic
performance of the economy. "he reforms in the financial sector foc&sed on creating efficient and sta%le
financial instit&tions and markets. "he approach to financial sector reforms in 5ndia was one of grad&al and
non-disr&pti#e progress thro&gh a cons&ltati#e process. "he =eser#e Bank has %een consistently working
towards setting an ena%ling reg&latory framework with prompt and effecti#e s&per#ision de#elopment of
technological and instit&tional infrastr&ct&re as well as changing the interface with the market participants
thro&gh a cons&ltati#e process. Persistent efforts ha#e %een made towards adoption of international
%enchmarks as appropriate to 5ndian conditions. $hile certain changes in the legal infrastr&ct&re are yet to
%e effected the de#elopments so far ha#e %ro&ght the 5ndian financial system closer to glo%al standards.
"he reform of the interest regime constit&tes an integral part of the financial sector reform. $ith the onset
of financial sector reforms the interest rate regime has %een largely dereg&lated with a #iew towards %etter
price disco#ery and efficient reso&rce allocation. 5nitially steps were taken to de#elop the domestic money
market and freeing of the money market rates. "he interest rates offered on !o#ernment sec&rities were
progressi#ely raised so that the !o#ernment %orrowing co&ld %e carried o&t at market-related rates. 5n
respect of %anks a ma(or effort was &ndertaken to simplify the administered str&ct&re of interest rates.
Banks now ha#e s&fficient flexi%ility to decide their deposit and lending rate str&ct&res and manage their
assets and lia%ilities accordingly. .t present apart from sa#ings acco&nt and N=9 deposit on the deposit
side and export credit and small loans on the lending side all other interest rates are dereg&lated. 5ndian
%anking system operated for a long time with high reser#e re,&irements %oth in the form of 6ash =eser#e
=atio <6==> and Stat&tory Li,&idity =atio <SL=>. "his was a conse,&ence of the high fiscal deficit and a
high degree of monetisation of fiscal deficit. "he efforts in the recent period ha#e %een to lower %oth the
6== and SL=. "he stat&tory minim&m of 2N per cent for SL= has already %een reached and while the
=eser#e Bank contin&es to p&rs&e its medi&m-term o%(ecti#e of red&cing the 6== to the stat&tory
minim&m le#el of ) per cent.
.s part of the reforms programme d&e attention has %een gi#en to di#ersification of ownership leading to
greater market acco&nta%ility and impro#ed efficiency. 5nitially there was inf&sion of capital %y the
!o#ernment in p&%lic sector %anks which was followed %y expanding the capital %ase with e,&ity
participation %y the pri#ate in#estors. "his was followed %y a red&ction in the !o#ernment shareholding in
p&%lic sector %anks to H1 per cent. 6onse,&ently the share of the p&%lic sector %anks in the aggregate
assets of the %anking sector has come down from C: per cent in 1CC1 to aro&nd QH per cent in2::). $ith a
#iew to enhancing efficiency and prod&cti#ity thro&gh competition g&idelines were laid down for
esta%lishment of new %anks in the pri#ate sector and the foreign %anks ha#e %een allowed more li%eral
entry. Since 1CCN twel#e new pri#ate sector %anks ha#e %een set &p. .s a ma(or step towards enhancing
competition in the %anking sector foreign direct in#estment in the pri#ate sector %anks is now allowed &p
to Q) per cent s&%(ect to conformity with the g&idelines iss&ed from time to time.
6oncl&sion: "he 5ndian financial system has &ndergone str&ct&ral transformation o#er the past decade. "he
financial sector has ac,&ired strength efficiency and sta%ility %y the com%ined effect of competition
reg&latory meas&res and policy en#ironment. $hile competition consolidation and con#ergence ha#e
%een recogni*ed as the key dri#ers of the %anking sector in the coming years
DRM2- : 2.-. O4ERATIONS MANAGEMENT
1. 3escri%e the different types of man&fact&ring systems with s&ita%le examples
. man&fact&ring system is an approach to making prod&cts that is %ased &pon se#eral factors. "hese
incl&de how m&ch of the prod&ct is needed how ,&ickly the prod&ct m&st %e prod&ced and how
&ni,&e the prod&ct m&st %e to ens&re s&fficient sales. 7an&fact&ring systems incl&de c&stom
assem%ly flexi%le intermittent reconfig&ra%le (&st-in-time and lean man&fact&ring systems.
6&stom man&fact&ring is the original form of prod&ction. 5t is the making of &ni,&e items one at a
time %y employing the skills of a single craftsman. 6raftsmen might work alongside one another %&t
they do not work together as a team %eca&se one person completes the man&fact&re of an indi#id&al
item.
"his is in contrast with an assem%ly man&fact&ring system in which each worker contri%&tes one or
more actions that are re,&ired in the man&fact&ring process. "his action might %e repeated e#ery few
seconds or for longer inter#als depending on the complexity of the task. "his also is referred to as a
mass-prod&ction man&fact&ring system and it typically #al&es speed and &niformity. "he draw%acks
to mass-prod&ction man&fact&ring systems are the diffic&lty of ass&ring the correct s&pply of prod&cts
in real time and %eing &na%le to pro#ide c&stomi*ed prod&ct offerings.
+lexi%le man&fact&ring proposes a sol&tion to prod&cing too m&ch or too little of the prod&ct. "his
method also ena%les a man&fact&rer to respond to cons&mer demand for c&stomi*ed prod&cts. 5t is
more expensi#e to tool a flexi%le man&fact&ring system.
5ntermittent man&fact&ring in which the same item is made repeatedly might employ a reconfig&ra%le
man&fact&ring system. "his is so that different items can %e mass-prod&ced one type of item at a time.
"here is a trade-off with flexi%le man&fact&ring systems. "he red&ndancy of f&nctions in tooling
systems adds costs in exchange for flexi%ility so the initial capital o&tlay might %e higher.
"he goal of (&st-in-time prod&ction is to eliminate in#entory. 6arrying more in#entory than is needed
adds to o#erhead costs. +or example prod&cing too many of a partic&lar model of a&tomo%ile res&lts
in &nsold #ehicles depreciating on the car sellers lot. "he storage of &nsold items also can %e costly in
terms of space and money. 6on#ersely r&nning o&t of in#entory ad#ersely affects sales %eca&se
c&stomers will go to a competitor if a partic&lar item is not a#aila%le when the c&stomer is ready to
%&y.
Lean man&fact&ring is often employed in tandem with (&st-in-time prod&ction methods. .ltho&gh it is
a man&fact&ring system lean man&fact&ring is act&ally a strategy that foc&ses on eliminating
&nnecessary or wastef&l elements of the man&fact&ring process and achie#ing maxim&m efficiency.
"his strategy can %e &sed in tandem with other man&fact&ring systems to #arying degrees depending
&pon the system.
The t.es o1 2%n+1%!t+ring s.ste2s %re %s 1ollows:
"he types of prod&ction system are gro&ped &nder two categories #i*.
1. 5ntermittent prod&ction system and
2. 6ontin&o&s prod&ction system.
Inter2ittent ro&+!tion s.ste2
5ntermittent means something that starts <initiates> and stops <halts> at irreg&lar <&nfixed> inter#als <time
gaps>.5n the intermittent prod&ction system goods are prod&ced %ased on c&stomerPs orders. "hese goods
are prod&ced on a small scale. "he flow of prod&ction is intermittent <irreg&lar>. 5n other words the flow of
prod&ction is not contin&o&s. 5n this system large #arieties of prod&cts are prod&ced. "hese prod&cts are of
different si*es. "he design of these prod&cts goes on changing. 5t keeps changing according to the design
and si*e of the prod&ct. "herefore this system is #ery flexi%le.
+ollowing are examples on the intermittent prod&ction system. Please refer a%o#e chart while reading
examples gi#en %elow.
1. "he work of a goldsmith is p&rely %ased on the fre,&ency of his c&stomerPs orders. "he goldsmith
makes goods <ornaments> on a small-scale %asis as per his c&stomerPs re,&irements. Bere ornaments
are not done on a contin&o&s %asis.
2. Similarly the work of a tailor is also %ased on the n&m%er of orders he gets from his c&stomers. "he
clothes are stitched for e#ery c&stomer independently %y the tailor as per onePs meas&rement and si*e.
!oods <stitched clothes> are made on a limited scale and is proportional to the n&m%er of orders
recei#ed from c&stomers. Bere stitching is not done on a contin&o&s %asis.
"he characteristics of an intermittent prod&ction system are listed as follows:
1. "he flow of prod&ction is not contin&o&s. 5t is intermittent.
2. $ide #arieties of prod&cts are prod&ced.
N. "he #ol&me of prod&ction is small.
). !eneral p&rpose machines are &sed. "hese machines can %e &sed to prod&ce different types of
prod&cts.
H. "he se,&ence of operation goes on changing as per the design of the prod&ct.
;. "he ,&antity si*e shape design etc. of the prod&ct depends on the c&stomerPs orders.
4ro<e!t ro&+!tion 1lows
Bere in pro(ect prod&ction flows company accepts a single complex order or contract. "he order m&st %e
completed within a gi#en period of time and at an estimated cost.
9xamples of pro(ect prod&ction flows mainly incl&de constr&ction of airports dams roads %&ildings
ship%&ilding etc
6haracteristics:
1. "he re,&irement of reso&rces is not same <it #aries>. !enerally the reso&rce re,&irement at the
%eginning is low. "hen in mid of prod&ction the re,&irement increases. +inally it slows down when
the pro(ect is near its completion phase.
2. 7any agencies are in#ol#ed in the pro(ect. 9ach agency performs speciali*ed (o%s. Bere
coordination %etween agencies is important %eca&se all (o%s are interrelated.
N. 3elays take place in completion of pro(ects d&e to its complexity and massi#eness.
). .s ro&ting and sched&ling changes with fresh orders proper inspection is re,&ired at each stage of
prod&ction.
=o00ing ro&+!tion 1lows
Bere in (o%%ing prod&ction flows company accepts a contract to prod&ce either one or few &nits of a
prod&ct strictly as per specifications gi#en %y the c&stomer. "he prod&ct is prod&ced within a gi#en period
and at a fixed cost. "his cost is fixed at the time of signing the contract.
9xamples of s&ch (o%%ing prod&ction flows incl&de ser#ices gi#en %y repair shops tailoring shops
man&fact&rer of special machine tools etc
6haracteristics:
1. "he prod&ction of items takes place in small lots. Sometimes only one prod&ct is prod&ced at one time.
2. "he items are man&fact&red strictly as per c&stomerPs specifications.
N. Bighly skilled la%o&r is re,&ired to perform speciali*ed (o%s.
). "here is disproportionate man&fact&ring cycle time. +or e.g. the time needed to design the prod&ct may
%e more than the man&fact&ring time.
8%t!h ro&+!tion 1lows
5n %atch prod&ction flows the prod&ction sched&le is decided according to specific orders or are %ased on
the demand forecasts. Bere the prod&ction of items takes place in lots or %atches. . prod&ct is di#ided into
different (o%s. .ll (o%s of one %atch of prod&ction m&st %e completed %efore starting the next %atch of
prod&ction.
9xamples of %atch prod&ction flows incl&de man&fact&ring of dr&gs and pharmace&ticals medi&m and
hea#y machineries etc.
6haracteristics:
1. "he prod&cts are made and kept in stock &ntil their demand arises in the market.
2. !eneral p&rpose machines and handling e,&ipments which can do many different (o%s ,&ickly are
installed. "his is %eca&se large #arieties of items are to %e prod&ced.
N. "here is a possi%ility of large work-in-progress d&e to many reasons.
). "here is a need for detailed prod&ction planning and control.
Contin+o+s ro&+!tion s.ste2
6ontin&o&s means something that operates constantly witho&t any irreg&larities or fre,&ent halts.
5n the contin&o&s prod&ction system goods are prod&ced constantly as per demand forecast. !oods are
prod&ced on a large scale for stocking and selling. "hey are not prod&ced on c&stomerPs orders. Bere the
inp&ts and o&tp&ts are standardi*ed along with the prod&ction process and se,&ence.
+ollowing are examples on the contin&o&s prod&ction system. Please refer a%o#e chart while reading
examples gi#en %elow.
1. "he prod&ction system of a food ind&stry is p&rely %ased on the demand forecast. Bere a large-scale
prod&ction of food takes place. 5t is also a contin&o&s prod&ction.
2. Similarly the prod&ction and processing system of a f&el ind&stry is also p&rely %ased on demand
forecast. 6r&de oil and other raw so&rces are processed contin&o&sly on a large scale to yield &sa%le
form of f&el and compensate glo%al energy demand.
"he characteristics of a contin&o&s prod&ction system are listed as follows:
1. "he flow of prod&ction is contin&o&s. 5t is not intermittent.
2. "he prod&cts are standardi*ed.
N. "he prod&cts are prod&ced on predetermined ,&ality standards.
). "he prod&cts are prod&ced in anticipation of demand.
H. Standardi*ed ro&ting sheets and sched&les are prepared.
"he types of contin&o&s prod&ction system incl&de:
1. 7ass prod&ction flows and
2. Process prod&ction flows.
M%ss ro&+!tion 1lows
Bere company prod&ces different types of prod&cts on a large-scale and stock them in wareho&ses &ntil
they are demanded in the market.
"he goods are prod&ced either with the help of a single operation or &ses a series of operations.
9.g. of mass prod&ction is the prod&ction of toothpastes soaps pens etc.
6haracteristics:
1. "here is a contin&o&s flow of prod&ction. Bowe#er this depends on the demand in the market.
2. Bere there is limited work-in-progress.
N. S&per#ision is easy %eca&se only few instr&ctions are necessary.
). "he material handling is done mostly %y machines i.e. con#eyors and a&tomatic transfer machines.
H. "he flow of materials is contin&o&s. "here is little or no ,&e&ing at any stage of prod&ction.
4ro!ess ro&+!tion 1lows
Bere a single prod&ct is prod&ced and stocked in wareho&ses &ntil it is demanded in the market. "he
flexi%ility of these plants is almost *ero %eca&se only one prod&ct can %e prod&ced.
9xamples of these plants incl&de steel cement paper s&gar etc.
6haracteristics:
1. "here is a highly mechani*ed system for handling materials. 6on#eyors and a&tomatic transfer
machines are &sed to mo#e the materials from one stage to another.
2. Low-skilled la%o&r and skilled technicians are re,&ired.
N. "here is #ery less work-in-progress %eca&se material flow is contin&o&s.
). "he prod&ction planning and sched&ling can %e decided well in ad#ance.
H. "he f&ll prod&ction system is designed to prod&ce only one specific type of item.
3rite Notes on "i# M%teri%l Re9+ire2ent 4l%nning "ii# C%%!it. Re9+ire2ent 4l%nning
7aterial re,&irements planning <7=P> is a comp&ter-%ased in#entory management system designed to assist
prod&ction managers in sched&ling and placing orders for items of dependent demand. 3ependent demand
items are components of finished goods's&ch as raw materials component parts and s&%assem%lies'for
which the amo&nt of in#entory needed depends on the le#el of prod&ction of the final prod&ct. +or example in
a plant that man&fact&red %icycles dependent demand in#entory items might incl&de al&min&m tires seats
and %ike chains.
"he first 7=P systems of in#entory management e#ol#ed in the 1C):s and 1CH:s. "hey &sed mainframe
comp&ters to explode information from a %ill of materials for a certain finished prod&ct into a prod&ction and
p&rchasing plan for components. Before long 7=P was expanded to incl&de information feed%ack loops so
that prod&ction personnel co&ld change and &pdate the inp&ts into the system as needed. "he next generation
of 7=P known as man&fact&ring reso&rces planning or 7=P 55 also incorporated marketing finance
acco&nting engineering and h&man reso&rces aspects into the planning process. . related concept that
expands on 7=P is enterprise reso&rces planning <9=P> which &ses comp&ter technology to link the #ario&s
f&nctional areas across an entire %&siness enterprise.
7=P works %ackward from a prod&ction plan for finished goods to de#elop re,&irements for components and
raw materials. 7=P %egins with a sched&le for finished goods that is con#erted into a sched&le of
re,&irements for the s&%assem%lies the component parts and the raw materials needed to prod&ce the final
prod&ct within the esta%lished sched&le. 7=P is designed to answer three ,&estions: what is needed4 how
uch is needed4 and when is it needed4A
7=P %reaks down in#entory re,&irements into planning periods so that prod&ction can %e completed in a
timely manner while in#entory le#els'and related carrying costs'are kept to a minim&m. 5mplemented and
&sed properly it can help prod&ction managers plan for capacity needs and allocate prod&ction time. B&t
7=P systems can %e time cons&ming and costly to implement which may p&t them o&t of range for some
small %&sinesses. 5n addition the information that comes o&t of an 7=P system is only as good as the
information that goes into it. 6ompanies m&st maintain c&rrent and acc&rate %ills of materials part n&m%ers
and in#entory records if they are to reali*e the potential %enefits of 7=P.
MR4 IN4UTS
"he information inp&t into 7=P systems comes from three main so&rces: a %ill of materials a master
sched&le and an in#entory records file. "he %ill of materials is a listing of all the raw materials component
parts s&%assem%lies and assem%lies re,&ired to prod&ce one &nit of a specific finished prod&ct. 9ach
different prod&ct made %y a gi#en man&fact&rer will ha#e its own separate %ill of materials. "he %ill of
materials is arranged in a hierarchy so that managers can see what materials are needed to complete each
le#el of prod&ction. 7=P &ses the %ill of materials to determine the ,&antity of each component that is needed
to prod&ce a certain n&m%er of finished prod&cts. +rom this ,&antity the system s&%tracts the ,&antity of that
item already in in#entory to determine order re,&irements.
"he master sched&le o&tlines the anticipated prod&ction acti#ities of the plant. 3e#eloped &sing %oth internal
forecasts and external orders it states the ,&antity of each prod&ct that will %e man&fact&red and the time
frame in which they will %e needed. "he master sched&le separates the planning hori*on into time A%&cketsA
which are &s&ally calendar weeks. "he sched&le m&st co#er a time frame long eno&gh to prod&ce the final
prod&ct. "his total prod&ction time is e,&al to the s&m of the lead times of all the related fa%rication and
assem%ly operations. 5t is important to note that master sched&les are often generated according to demand
and witho&t regard to capacity. .n 7=P system cannot tell in ad#ance if a sched&le is not feasi%le so
managers may ha#e to r&n se#eral possi%ilities thro&gh the system %efore they find one that works.
"he in#entory records file pro#ides an acco&nting of how m&ch in#entory is already on hand or on order and
th&s sho&ld %e s&%tracted from the material re,&irements. "he in#entory records file is &sed to track
information on the stat&s of each item %y time period. "his incl&des gross re,&irements sched&led receipts
and the expected amo&nt on hand. 5t incl&des other details for each item as well like the s&pplier the lead-
time and the lot si*e.
MR4 4ROCESSING
Esing information c&lled from the %ill of materials master sched&le and in#entory records file an 7=P
system determines the net re,&irements for raw materials component parts and s&%assem%lies for each
period on the planning hori*on. 7=P processing first determines gross material re,&irements then s&%tracts
o&t the in#entory on hand and adds %ack in the safety stock in order to comp&te the net re,&irements.
"he main o&tp&ts from 7=P incl&de three primary reports and three secondary reports. "he primary reports
consist of: planned order sched&les which o&tline the ,&antity and timing of f&t&re material orders? order
releases which a&thori*e orders to %e made? and changes to planned orders which might incl&de
cancellations or re#isions of the ,&antity or time frame. "he secondary reports generated %y 7=P incl&de:
performance control reports which are &sed to track pro%lems like missed deli#ery dates and stock o&ts in
order to e#al&ate system performance? planning reports which can %e &sed in forecasting f&t&re in#entory
re,&irements? and exception reports which call managersP attention to ma(or pro%lems like late orders or
excessi#e scrap rates.
.ltho&gh working %ackward from the prod&ction plan for a finished prod&ct to determine the re,&irements for
components may seem like a simple process it can act&ally %e extremely complicated especially when some
raw materials or parts are &sed in a n&m%er of different prod&cts. +re,&ent changes in prod&ct design order
,&antities or prod&ction sched&le also complicate matters. "he importance of comp&ter power is e#ident
when one considers the n&m%er of materials sched&les that m&st %e tracked.
8ENE/ITS AND DRA38AC(S O/ MR4
7=P systems offer a n&m%er of potential %enefits to man&fact&ring firms. Some of the main %enefits incl&de
helping prod&ction managers to minimi*e in#entory le#els and the associated carrying costs track material
re,&irements determine the most economical lot si*es for orders comp&te ,&antities needed as safety stock
allocate prod&ction time among #ario&s prod&cts and plan for f&t&re capacity needs. "he information
generated %y 7=P systems is &sef&l in other areas as well. "here is a large range of people in a man&fact&ring
company that may find the &se of information pro#ided %y an 7=P system #ery helpf&l. Prod&ction planners
are o%#io&s &sers of 7=P as are prod&ction managers who m&st %alance workloads across departments and
make decisions a%o&t sched&ling work. Plant foremen responsi%le for iss&ing work orders and maintaining
prod&ction sched&les also rely hea#ily on 7=P o&tp&t. 1ther &sers incl&de c&stomer ser#ice representati#es
who need to %e a%le to pro#ide pro(ected deli#ery dates p&rchasing managers and in#entory managers.
7=P systems also ha#e se#eral potential draw%acks. +irst 7=P relies &pon acc&rate inp&t information. 5f a
small %&siness has not maintained good in#entory records or has not &pdated its %ills of materials with all
rele#ant changes it may enco&nter serio&s pro%lems with the o&tp&ts of its 7=P system. "he pro%lems co&ld
range from missing parts and excessi#e order ,&antities to sched&le delays and missed deli#ery dates. .t a
minim&m an 7=P system m&st ha#e an acc&rate master prod&ction sched&le good lead-time estimates and
c&rrent in#entory records in order to f&nction effecti#ely and prod&ce &sef&l information.
.nother potential draw%ack associated with 7=P is that the systems can %e diffic&lt time cons&ming and
costly to implement. 7any %&sinesses enco&nter resistance from employees when they try to implement
7=P. +or example employees who once got %y with sloppy record keeping may resent the discipline 7=P
re,&ires. 1r departments that %ecame acc&stomed to hoarding parts in case of in#entory shortages might find
it diffic&lt to tr&st the system and let go of that ha%it.
"he key to making 7=P implementation work is to pro#ide training and ed&cation for all affected employees.
5t is important early on to identify the key personnel whose power %ase will %e affected %y a new 7=P
system. "hese people m&st %e among the first to %e con#inced of the merits of the new system so that they
may %&y into the plan. Fey personnel m&st %e con#inced that they personally will %e %etter ser#ed %y the new
system than %y any alternate system. 1ne way to impro#e employee acceptance of 7=P systems is to ad(&st
reward systems to reflect prod&ction and in#entory management goals.
C%%!it. re9+ire2ent l%nning is the process of determining the prod&ction capacity needed %y an
organi*ation to meet changing demands for its prod&cts. 5n the context of capacity planning design
capacity is the maxim&m amo&nt of work that an organi*ation is capa%le of completing in a gi#en period.
9ffecti#e capacity is the maxim&m amo&nt of work that an organi*ation is capa%le of completing in a gi#en
period d&e to constraints s&ch as ,&ality pro%lems delays material handling etc. "he phrase is also &sed in
%&siness comp&ting as a synonym for capacity management.
. discrepancy %etween the capacity of an organi*ation and the demands of its c&stomers res&lts in
inefficiency either in &nder-&tili*ed reso&rces or &nf&lfilled c&stomers. "he goal of capacity planning is to
minimi*e this discrepancy. 3emand for an organi*ationPs capacity #aries %ased on changes in prod&ction
o&tp&t s&ch as increasing or decreasing the prod&ction ,&antity of an existing prod&ct or prod&cing new
prod&cts. Better &tili*ation of existing capacity can %e accomplished thro&gh impro#ements in o#erall
e,&ipment effecti#eness <199>. 6apacity can %e increased thro&gh introd&cing new techni,&es e,&ipment
and materials increasing the n&m%er of workers or machines increasing the n&m%er of shifts or ac,&iring
additional prod&ction facilities.
6apacity is calc&lated as <n&m%er of machines or workers> R <n&m%er of shifts> R <&tili*ation> R
<efficiency>.
"he %road classes of capacity planning are lead strategy lag strategy match strategy and ad(&stment
strategy.
$e%& str%teg. is adding capacity in anticipation of an increase in demand. Lead strategy is
an aggressi#e strategy with the goal of l&ring c&stomers away from the companyPs competitors %y
impro#ing the ser#ice le#el and red&cing leadtime. 5t is also a strategy aimed at
red&cing stocko&t costs. . large capacity does not necessarily imply highin#entory le#els %&t it can
imply in higher cycle stock costs. 9xcess capacity can also %e rented to other companies.
$%g str%teg. refers to adding capacity only after the organi*ation is r&nning at f&ll capacity or %eyond
d&e to increase in demand <North 6arolina State Eni#ersity 2::;>. "his is a more conser#ati#e
strategy. 5t decreases the risk of waste %&t it may res&lt in the loss of possi%le c&stomers either %y
stocko&t or low ser#ice le#els.
M%t!h str%teg. is adding capacity in small amo&nts in response to changing demand in the market.
"his is a more moderate strategy.
A&<+st2ent str%teg. is adding or red&cing capacity in small or large amo&nts d&e to cons&merPs
demand or d&e to ma(or changes to prod&ct or system architect&re.
C%%!it.
5n the context of systems engineering capacity planning

is &sed d&ring system design and system
performance monitoring.
6apacity planning is long-term decision that esta%lishes a firmPs o#erall le#el of reso&rces. 5t extends o#er
time hori*on long eno&gh to o%tain reso&rces. 6apacity decisions affect the prod&ction lead time c&stomer
responsi#eness operating cost and company a%ility to compete. 5nade,&ate capacity planning can lead to
the loss of the c&stomer and %&siness. 9xcess capacity can drain the companyPs reso&rces and pre#ent
in#estments into more l&crati#e #ent&res. "he ,&estion of when capacity sho&ld %e increased and %y how
m&ch are the critical decisions.
C%%!it. > %v%il%0le or re9+ire&?
+rom a sched&ling perspecti#e it is #ery easy to determine how m&ch capacity <or time> will %e re,&ired to
man&fact&re a ,&antity of parts. Simply m&ltiply the standard cycle time %y the n&m%er of parts and di#ide
%y the part or process 199 S.
5f prod&ction is sched&led to prod&ce H:: pieces of prod&ct . on a machine ha#ing a cycle time of N:
seconds and the 199 for the process is DHS then the time to prod&ce the parts wo&ld %e calc&lated as
follows:
<H:: parts R N: seconds> - DHS T 1Q;)Q.1 seconds "he 199 index makes it easy to determine whether we
ha#e ample capacity to r&n the re,&ired prod&ction. 5n this example ).2 ho&rs at standard #ers&s ).C ho&rs
%ased on the 199 index.
By repeating this process for all the parts that r&n thro&gh a gi#en machine it is possi%le to determine the
total capacity re,&ired to r&n prod&ction.
C%%!it. %v%il%0le
$hen considering new work for a piece of e,&ipment or machinery knowing how m&ch capacity is
a#aila%le to r&n the work will e#ent&ally %ecome part of the o#erall process. "ypically an ann&al forecast
is &sed to determine how many ho&rs per year are re,&ired. 5t is also possi%le that seasonal infl&ences exist
within the machine re,&irements so a ,&arterly or e#en monthly capacity report may %e re,&ired.
"o calc&late the total capacity a#aila%le the #ol&me is ad(&sted according to the period %eing considered.
"he a#aila%le capacity is difference %etween the re,&ired capacity and planned operating capacity.
DRM2@ : 2.@. DECISION SU44ORT S*STEM
1. 9xplain the applications of 3SS in a %&siness organi*ation.
. decision s&pport system <3SS> is a comp&ter-%ased information system that s&pports %&siness or
organi*ational decision-making acti#ities. 3SSs ser#e the management operations and planning le#els of
an organi*ation and help to make decisions which may %e rapidly changing and not easily specified in
ad#ance.
3SSs incl&de knowledge-%ased systems. . properly designed 3SS is an interacti#e software-%ased system
intended to help decision makers compile &sef&l information from a com%ination of raw data doc&ments
personal knowledge or %&siness models to identify and sol#e pro%lems and make decisions.
"ypical information that a decision s&pport application might gather and present are:
in#entories of information assets <incl&ding legacy and relational data so&rces c&%es data wareho&ses
and data marts>
comparati#e sales fig&res %etween one period and the next
Pro(ected re#en&e fig&res %ased on prod&ct sales ass&mptions.
T%5ono2.
.s with the definition there is no &ni#ersally-accepted taxonomy of 3SS either. 3ifferent a&thors propose
different classifications. Esing the relationship with the &ser as the criterion Baettenschwiler differentiates
Passi#e 3SS
.cti#e 3SS
6ooperati#e 3SS
. passi#e 3SS is a system that aids the process of decision making %&t that cannot %ring o&t explicit
decision s&ggestions or sol&tions.
.n acti#e 3SS can %ring o&t s&ch decision s&ggestions or sol&tions.
. cooperati#e 3SS allows the decision maker <or its ad#isor> to modify complete or refine the decision
s&ggestions pro#ided %y the system %efore sending them %ack to the system for #alidation.
.nother taxonomy for 3SS has %een created %y 3aniel Power. Esing the mode of assistance as the
criterion Power differentiates comm&nication-dri#en 3SS data-dri#en 3SS doc&ment-dri#en 3SS
knowledge-dri#en 3SS and model-dri#en 3SS.
. comm&nication-dri#en 3SS s&pports more than one person working on a shared task? examples
incl&de integrated tools like 7icrosoftPs Net7eeting or !roo#e
. data-dri#en 3SS or data-oriented 3SS emphasi*es access to and manip&lation of a time series of
internal company data and sometimes external data.
. doc&ment-dri#en 3SS manages retrie#es and manip&lates &nstr&ct&red information in a #ariety of
electronic formats.
. knowledge-dri#en 3SS pro#ides speciali*ed pro%lem-sol#ing expertise stored as facts r&les
proced&res or in similar str&ct&res.
. model-dri#en 3SS emphasi*es access to and manip&lation of a statistical financial optimi*ation or
sim&lation model. 7odel-dri#en 3SS &se data and parameters pro#ided %y &sers to assist decision
makers in analy*ing a sit&ation? they are not necessarily data-intensi#e. 3icodess is an example of an
open so&rce model-dri#en 3SS generator.
Co2onents o1 DSS
"hree f&ndamental components of 3SS architect&re are:
1. "he data%ase <or knowledge %ase>
2. "he model <i.e. the decision context and &ser criteria>
N. "he &ser interface
"he &sers themsel#es are also important components of the architect&re.
3SS components may %e classified as:
1. 5np&ts: +actors n&m%ers and characteristics to analy*e
2. Eser Fnowledge and 9xpertise: 5np&ts re,&iring man&al analysis %y the &ser
N. 1&tp&ts: "ransformed data from which 3SS AdecisionsA are generated
). 3ecisions: =es&lts generated %y the 3SS %ased on &ser criteria
Ali!%tion
.s mentioned a%o#e there are theoretical possi%ilities of %&ilding s&ch systems in any knowledge domain.
U 1ne example is the clinical decision s&pport system for medical diagnosis. 1ther examples incl&de a %ank
loan officer #erifying the credit of a loan applicant or an engineering firm that has %ids on se#eral pro(ects
and wants to know if they can %e competiti#e with their costs.
U 3SS is extensi#ely &sed in %&siness and management. 9xec&ti#e dash%oard and other %&siness
performance software allow faster decision making identification of negati#e trends and %etter allocation
of %&siness reso&rces.
U . growing area of 3SS application concepts principles and techni,&es is in agric&lt&ral prod&ction
marketing for s&staina%le de#elopment. +or example the 3SS.") package de#eloped thro&gh financial
s&pport of ES.53 d&ring the D:Ps and C:Ps has allowed rapid assessment of se#eral agric&lt&ral prod&ction
systems aro&nd the world to facilitate decision-making at the farm and policy le#els. "here are howe#er
many constraints to the s&ccessf&l adoption on 3SS in agric&lt&re.
U 3SS are also pre#alent in forest management where the long planning time frame demands specific
re,&irements. .ll aspects of +orest management from log transportation har#est sched&ling to
s&staina%ility and ecosystem protection ha#e %een addressed %y modern 3SSs. . comprehensi#e list and
disc&ssion of all a#aila%le systems in forest management is %eing compiled &nder the 61S" action +orsys
U . specific example concerns the 6anadian National =ailway system which tests its e,&ipment on a
reg&lar %asis &sing a decision s&pport system. . pro%lem faced %y any railroad is worn-o&t or defecti#e
rails which can res&lt in h&ndreds of derailments per year. Ender a 3SS 6N managed to decrease the
incidence of derailments at the same time other companies were experiencing an increase.
Benefits
5mpro#es personal efficiency
Speed &p the process of decision making
5ncreases organi*ational control
9nco&rages exploration and disco#ery on the part of the decision maker
Speeds &p pro%lem sol#ing in an organi*ation
+acilitates interpersonal comm&nication
Promotes learning or training
!enerates new e#idence in s&pport of a decision
6reates a competiti#e ad#antage o#er competition
=e#eals new approaches to thinking a%o&t the pro%lem space
Belps a&tomate managerial processes
2. AD%t%0%se M%n%ge2ent S.ste2 A!t %s % DSS &evelo2ent toolB > Co22ent.
.s one of the oldest components associated with comp&ters the data%ase management system or 3B7S
is a comp&ter software program that is designed as the means of managing all data%ases that are c&rrently
installed on a system hard dri#e or network. 3ifferent types of data%ase management systems exist with
some of them designed for the o#ersight and proper control of data%ases that are config&red for specific
p&rposes.
.s the tool that is employed in the %road practice of managing data%ases the 3B7S is marketed in many
forms. Some of the more pop&lar examples of these sol&tions incl&de 7icrosoft .ccess +ile7aker 3B2
and 1racle. .ll these prod&cts pro#ide for the creation of a series of rights or pri#ileges that can %e
associated with a specific &ser. "his means that it is possi%le to designate one or more data%ase
administrators who may control each f&nction as well as pro#ide other &sers with #ario&s le#els of
administration rights. "his flexi%ility makes the task of &sing 3B7S methods to o#ersee a system
something that can %e centrally controlled or allocated to se#eral different people.
"here are fo&r essential elements that are fo&nd with (&st a%o&t e#ery example of 3B7S c&rrently on the
market. "he first is the implementation of a modeling lang&age that ser#es to define the lang&age of each
data%ase that is hosted #ia the system. "here are se#eral approaches c&rrently in &se with hierarchical
network relational and o%(ect examples. 9ssentially the modeling lang&age ens&res the a%ility of the
data%ases to comm&nicate with the 3B7S and th&s operate on the system.
Second data str&ct&res also are administered %y the 3B7S. 9xamples of data that are organi*ed %y this
f&nction are indi#id&al profiles or records files fields and their definitions and o%(ects s&ch as #is&al
media. 3ata str&ct&res are what allows these systems to interact with the data witho&t ca&sing damage to
the integrity of the data itself.
. third component of 3B7S software is the data ,&ery lang&age. "his element is in#ol#ed in maintaining
the sec&rity of the data%ase %y monitoring the &se of login data the assignment of access rights and
pri#ileges and the definition of the criteria that m&st %e employed to add data to the system. "he data ,&ery
lang&age works with the data str&ct&res to make s&re it is harder to inp&t irrele#ant data into any of the
data%ases in &se on the system.
Last a mechanism that allows for transactions is an essential %asic for any 3B7S. "his helps to allow
m&ltiple and conc&rrent access to the data%ase %y m&ltiple &sers pre#ents the manip&lation of one record
%y two &sers at the same time and pre#enting the creation of d&plicate records.
DRM2C : 2.C. INTERNATIONA$ 8USINESS MANAGEMENT
1. E5l%in INCO Ter2s
Lang&age is one of the most complex and important tools of 5nternational "rade. .s in any complex and
sophisticated %&siness small changes in wording can ha#e a ma(or impact on all aspects of a %&siness
agreement.
$ord definitions often differ from ind&stry to ind&stry. "his is especially tr&e of !lo%al "rade. $here s&ch
f&ndamental phrases as Adeli#eryA can ha#e a far different meaning in the %&siness than in the rest of the
world.
+or %&siness terminology to %e effecti#e phrases m&st mean the same thing thro&gho&t the ind&stry. "hat
is why the 5nternational 6ham%er of 6ommerce created A5N61"9=7SA in 1CN;. INCOTERMS are
designed to create a %ridge %etween different mem%ers of the ind&stry %y acting as a &niform lang&age
they can &se.
9ach INCOTERM refers to a type of agreement for the p&rchase and shipping of goods internationally.
"here are 11 different terms each of which helps &sers deal with different sit&ations in#ol#ing the
mo#ement of goods. +or example the term +6. is often &sed with shipments in#ol#ing =o-=o or
container transport.
INCOTERMS also deal with the doc&mentation re,&ired for glo%al trade specifying which parties are
responsi%le for which doc&ments. 3etermining the paperwork re,&ired to mo#e a shipment is an important
(o% since re,&irements #ary so m&ch %etween co&ntries. "wo items howe#er are standard: the
commercial in#oice and the packing list.
INCOTERMS were created primarily for people inside the world of glo%al trade. 1&tsiders fre,&ently find
them diffic&lt to &nderstand. Seemingly common words s&ch as Aresponsi%ilityA and Adeli#eryA ha#e
different meanings in glo%al trade than they do in other sit&ations.
5n glo%al trade Adeli#eryA refers to the seller f&lfilling the o%ligation of the terms of sale or to completing a
contract&al o%ligation. A3eli#eryA can occ&r while the merchandise is on a #essel on the high seas and the
parties in#ol#ed are tho&sands of miles from the goods. 5n the end howe#er the terms wind &p %oiling
down to a few %asic specifics
5t is essential for shippers to know the exact stat&s of their shipments in terms of ownership and
responsi%ility. 5t is also #ital for sellers K %&yers to arrange ins&rance on their goods while the goods are in
their AlegalA possession. Lack of ins&rance can res&lt in wasted time laws&its and %roken relationships.
INCOTERMS can th&s ha#e a direct financial impact on a companyPs %&siness. $hat is important is not
the acronyms %&t the %&siness res&lts. 1ften companies like to %e in control of their freight. "hat %eing the
case sellers of goods might choose to sell 65+ which gi#es them a good grasp of shipments mo#ing o&t of
their co&ntry and %&yers may prefer to p&rchase +1B which gi#es them a tighter hold on goods mo#ing
into their co&ntry.
5n this glossary wePll tell yo& what terms s&ch as 65+ and +1B mean and their impact on the trade process.
5n addition since we reali*e that most international %&yers and sellers do not handle goods themsel#es %&t
work thro&gh c&stoms %rokers and freight forwarders wePll disc&ss how %oth fit into the terms &nder
disc&ssion.
INCOTERMS are most fre,&ently listed %y category. "erms %eginning with + refer to shipments where
the primary cost of shipping is not paid for %y the seller. "erms %eginning with 6 deal with shipments
where the seller pays for shipping. 9-terms occ&r when a sellerPs responsi%ilities are f&lfilled when goods
are ready to depart from their facilities. 3 terms co#er shipments where the shipper-sellerPs responsi%ility
ends when the goods arri#e at some specific point. Beca&se shipments are mo#ing into a co&ntry 3 terms
&s&ally in#ol#e the ser#ices of a c&stoms %roker and a freight forwarder. 5n addition 3 terms also deal with
the pier or docking charges fo&nd at #irt&ally all ports and determining who is responsi%le for each charge.
=ecently the 566 changed %asic aspects of the definitions of a n&m%er of 5N61"9=7S %&yers and sellers
sho&ld %e aware of this. "erms that ha#e changed ha#e a star alongside them.
ED3 "ED'3or,s#
1ne of the simplest and most %asic shipment arrangements places the minim&m responsi%ility on the seller
with greater responsi%ility on the %&yer. 5n an 9J-$orks transaction goods are %asically made a#aila%le
for pick&p at the shipper-sellerPs factory or wareho&se and Adeli#eryA is accomplished when the
merchandise is released to the consigneePs freight forwarder. "he %&yer is responsi%le for making
arrangements with their forwarder for ins&rance export clearance and handling all other paperwork.
/O8 "/ree On 8o%r&#
1ne of the most commonly &sed-and mis&sed-terms +1B means that the shipper-seller &ses his freight
forwarder to mo#e the merchandise to the port or designated point of origin. "ho&gh fre,&ently &sed to
descri%e inland mo#ement of cargo +1B specifically refers to ocean or inland waterway transportation of
goods. A3eli#eryA is accomplished when the shipper-seller releases the goods to the %&yerPs forwarder. "he
%&yerPs responsi%ility for ins&rance and transportation %egins at the same moment.
/CA "/ree C%rrier#
5n this type of transaction the seller is responsi%le for arranging transportation %&t he is acting at the risk
and the expense of the %&yer. $here in +1B the freight forwarder or carrier is the choice of the %&yer in
+6. the seller chooses and works with the freight forwarder or the carrier. A3eli#eryA is accomplished at a
predetermined port or destination point and the %&yer is responsi%le for 5ns&rance.
/AS "/ree Alongsi&e Shi#
5n these transactions the %&yer %ears all the transportation costs and the risk of loss of goods. +.S re,&ires
the shipper-seller to clear goods for export which is a re#ersal from past practices. 6ompanies selling on
these terms will ordinarily &se their freight forwarder to clear the goods for export. A3eli#eryA is
accomplished when the goods are t&rned o#er to the B&yers +orwarder for ins&rance and transportation.
C/R "Cost %n& /reight#
"his term formerly known as 6N+ <6K+> defines two distinct and separate responsi%ilities-one is dealing
with the act&al cost of merchandise A6A and the other A+A refers to the freight charges to a predetermined
destination point. 5t is the shipper-sellerPs responsi%ility to get goods from their door to the port of
destination. A3eli#eryA is accomplished at this time. 5t is the %&yerPs responsi%ility to co#er ins&rance from
the port of origin or port of shipment to %&yerPs door. !i#en that the shipper is responsi%le for
transportation the shipper also chooses the forwarder.
CI/ "CostE Ins+r%n!e %n& /reight#
"his arrangement similar to 6+= %&t instead of the %&yer ins&ring the goods for the maritime phase of the
#oyage the shipper-seller will ins&re the merchandise. 5n this arrangement the seller &s&ally chooses the
forwarder. A3eli#eryA as a%o#e is accomplished at the port of destination.
C4T "C%rri%ge 4%i& To#
5n 6P" transactions the shipper-seller has the same o%ligations fo&nd with 65+ with the addition that the
seller has to %&y cargo ins&rance naming the %&yer as the ins&red while the goods are in transit.
CI4 "C%rri%ge %n& Ins+r%n!e 4%i& To#
"his term is primarily &sed for m&ltimodal transport. Beca&se it relies on the carrierPs ins&rance the
shipper-seller is only re,&ired to p&rchase minim&m co#erage. $hen this partic&lar agreement is in force
+reight +orwarders often act in effect as carriers. "he %&yerPs ins&rance is effecti#e when the goods are
t&rned o#er to the +orwarder.
DAT "Delivere& At Ter2in%l#
"his term is &sed for any type of shipments. "he shipper-seller pays for carriage to the terminal except for
costs related to import clearance and ass&mes all risks &p to the point that the goods are &nloaded at the
terminal.
DA4 "Delivere& At 4l%!e#
3.P term is &sed for any type of shipments. "he shipper-seller pays for carriage to the named place except
for costs related to import clearance and ass&mes all risks prior to the point that the goods are ready for
&nloading %y the %&yer.
DD4 "Delivere& D+t. 4%i&#
33P term tend to %e &sed in intermodal or co&rier-type shipments. $here%y the shipper-seller is
responsi%le for dealing with all the tasks in#ol#ed in mo#ing goods from the man&fact&ring plant to the
%&yer-consigneePs door. 5t is the shipper-sellerPs responsi%ility to ins&re the goods and a%sor% all costs and
risks incl&ding the payment of d&ty and fees.
2. Dis!+ss Intern%tion%l $%0or str%teg. in the resent &%. !onte5t
5ntrod&ction
=e,&ire the esta%lishment of a separate inspection system for agric&lt&re. "he !o#ernment of Bangladesh
indicated that ratification is not &nder consideration in #iew of the impractica%ility of carrying o&t la%o&r
inspections in the co&ntry.
"he !o#ernments of 6am%odia 6anada and 6ape 8erde stated that they do not en#isage ratification of the
6on#ention for the time %eing. Bowe#er the !o#ernment of 6ape 8erde indicated the need for technical
assistance.
9mployment Policy
9mployment Policy 6on#ention 1C;) <No. 122>
"he !o#ernment of Swit*erland confirmed that it had s&%mitted the 6on#ention to Parliament for
ratification. "he State 6o&ncil appro#ed ratification on N: 7ay 2:12 and the National 6o&ncil will disc&ss
the matter at its next session. "he !o#ernment of 7a&riti&s indicated that ratification of the 6on#ention
will %e deferred &ntil after the adoption of the National 9mployment Policy and the esta%lishment of the
rele#ant monitoring mechanisms. "he !o#ernments of Bahrain Botswana 6ape 8erde !am%ia 7alaysia
and Samoa indicated that there are prospects for the ratification of the 6on#ention. "he !o#ernments of
Fenya F&wait and So&th .frica indicated that ratification of the 6on#ention is not &nder consideration at
this stage. "he !o#ernments of Bangladesh 9ritrea !am%ia Fenya 7alaysia and Samoa re,&ested
technical assistance.
"ripartite cons&ltation
"ripartite 6ons&ltation <5nternational La%o&r Standards> 6on#ention 1CQ; <No. 1))>
"he !o#ernments of 6ape 8erde 6&%a !am%ia 7yanmar Pap&a New !&inea Samoa E*%ekistan and
Enited .ra% 9mirates indicated that there are prospects for the ratification of the 6on#ention. "echnical
assistance was re,&ested %y the !o#ernments of Bahrain 9ritrea !am%ia Pap&a New !&inea Samoa and
S&dan.
6oncl&sion
"he 1ffice will follow &p on re,&ests made for technical assistance.
"he standards strategy adopted %y the !o#erning Body in 2::H co#ers fo&r components:
<1> standards policy? <2> the s&per#isory system? <N> standards and technical cooperation? and <)>
information and comm&nication on the standards system.
5n No#em%er 2::Q the !o#erning Body appro#ed an interim plan of action for the implementation of the
standards strategy.
"his paper pro#ides an &pdate on the progress made since No#em%er 2:11 in the implementation of the
standards strategy.
3e#eloping keeping &p to date and promoting 5L1 standards +ollow-&p to the action plan <2::;V11> to
achie#e rapid and widespread ratification and effecti#e implementation of the 7aritime La%o&r
6on#ention 2::;
5n Septem%er 2::; the 1ffice started to implement a fi#e-year <2::;V11> action plan to achie#e rapid and
widespread ratification and effecti#e implementation of the 7aritime La%o&r 6on#ention 2::; <7L6
2::;>.
5t was aimed at achie#ing %oth widespread ratification and effecti#e implementation of the 6on#ention.
"he approach adopted has pro#ed to %e #ery s&ccessf&l in making the first of these o%(ecti#es achie#a%le:
the essential precondition for widespread ratification was met in .&g&st 2:12 with the registration of the
N:th ratification %y mem%er States with a total share of at least NN per cent of the world gross tonnage of
ships.
"he 7L6 2::; will enter into force on 2: .&g&st 2:1N and will apply to nearly ;: per cent of the
worlds fleet and to the seafarers working on %oard ship. "his is a remarka%le o&tcome partic&larly since
this is the first international la%o&r standard to incl&de re,&irements for flag States on working and li#ing
conditions on %oard ship. "he n&m%er of ratifications has increased dramatically o#er the last 12 months as
mem%er States ha#e completed their national tripartite cons&ltations and the legal work necessary to ena%le
the ratification of this comprehensi#e 6on#ention. "he glo%al nat&re of the sector means that widespread
ratification partic&larly %y key port States and co&ntries from which the worlds seafaring force is drawn
is essential to ens&re that the 6on#ention meets the twin goals of decent work for seafarers and a le#el
playing field for shipowners. $hile there are some regions with comparati#ely few ratifications it is
expected that a n&m%er of ratifications will %e deposited in the next 12 months partic&larly from mem%er
States in 9&rope .sia and the Pacific and the .mericas.
"he second o%(ecti#e of the action plan ens&ring effecti#e implementation has %een the foc&s of extensi#e
efforts o#er the fi#e years of the action plan and partic&larly o#er the past 12 months. "his reflects the
importance that the 6on#ention attaches to compliance and enforcement at the ship%oard le#el. "here was a
need identified in 2::; to foc&s on capacity %&ilding in the maritime la%o&r inspection systems of flag and
port States well in ad#ance of entry into force in order to address the immense workload of inspection and
certification which was estimated in 2::; to %e of at least ):::: ships %efore the initial entry into force
of the 6on#ention. "he 1ffice has de#eloped an array of training co&rses and workshops that are mainly
deli#ered thro&gh the 5L1 5nternational "raining 6entre in "&rin <the "&rin 6entre>.
Participants often drawn from the ind&stry and from go#ernments ha#e s&%se,&ently pro#ided training at
the national or organi*ational le#el.
"he 1ffice has also r&n workshops in cooperation with international seafarers and shipowners
organi*ations to ens&re that capacity is also %&ilt in the sector. 5n addition the 1ffice has responded to
re,&ests from mem%er States for assistance in de#eloping their capacity to carry o&t the legal work needed
to mo#e towards the ratification of the 7L6 2::;.
"his has in#ol#ed de#eloping model national pro#isions com%ined with legal implementation workshops at
the "&rin 6entre to help %&ild national legal capacity. "here is a growing demand for these workshops
partic&larly at the national and regional le#els with many more planned for 2:1N.
5n addition to these 5L1-sponsored acti#ities there has %een extensi#e acti#ity in the maritime ind&stry in
all regions regarding the promotion and implementation of the 7L6 2::;. "hese acti#ities ha#e ranged
from de#eloping training co&rses and online or #ideo mod&les to detailed man&als for inspections and
checklists for flag State inspections related to the certification of 7L6 2::; compliance. "here has also
%een acti#ity in the marine ins&rance sector to meet the re,&irements of the 7L6 2::;. 7oreo#er
regional organi*ations are now de#eloping training workshops for inspectors. with comparati#ely few
ratifications it is expected that a n&m%er of ratifications will %e deposited in the next 12 months
partic&larly from mem%er States in 9&rope .sia and the Pacific and the .mericas.
"he second o%(ecti#e of the action plan ens&ring effecti#e implementation has %een the foc&s of extensi#e
efforts o#er the fi#e years of the action plan and partic&larly o#er the past 12 months. "his reflects the
importance that the 6on#ention attaches to compliance and enforcement at the ship%oard le#el. "here was a
need identified in 2::; to foc&s on capacity %&ilding in the maritime la%o&r inspection systems of flag and
port States well in ad#ance of entry into force in order to address the immense workload of inspection and
certification which was estimated in 2::; to %e of at least ):::: ships %efore the initial entry into force
of the 6on#ention. "he 1ffice has de#eloped an array of training co&rses and workshops that are mainly
deli#ered thro&gh the 5L1 5nternational "raining 6entre
.frica.
"hro&gh two pro(ects f&nded %y Sweden and the 9&ropean Enion <9E> training and g&idance materials
ha#e %een prepared on the de#elopment of national 1SB programmes and on cond&cting a&dits on the
implementation of the 5L1 !&idelines on occ&pational safety and health management systems <5L1V1SB
2::1>. . workshop for selected .frican co&ntries on impro#ing safety and health in mining held in the
Enited =ep&%lic of "an*ania <7ay 2:12> was attended %y !o#ernment $orker and 9mployer participants
from Botswana 9thiopia !hana Fenya 7alawi Nami%ia So&th .frica Enited =ep&%lic of "an*ania
Eganda Wam%ia and Wim%a%we. "raining of trainer workshops &sing the $ork 5mpro#ements in Small
9nterprises <$5S9> methodology were held in Senegal and the Enited =ep&%lic of "an*ania.
.merica
"he "&rin 6entre pro#ided training on risk assessment in 9l Sal#ador. "he "rade Enion 6onfederation of
the .mericas <"E6.> identified 1SB as a strategic priority at its second congress <Bra*il .pril 2:12>.
.sia.
"he 5L1 has promoted 6on#ention No. 1DQ thro&gh the 5L1-@apan m&lti-%ilateral programme the
5L1-Forea Partnership Programme and the .S9.NV1SB Network <.S9.NV1SBN9"> which ha#e
enco&raged the ratification and application of the
6on#ention.
.ra% States. Bahrain organi*ed the +irst National 1cc&pational Safety and Bealth 6onference <7ay 2:12>.
"he 5L1 ga#e a presentation on a pre#entati#e safety and health c&lt&re and pro#ided an analysis of the
2:12 comments of the 6ommittee of 9xperts on the .pplication of 6on#entions and =ecommendations
<69.6=> on the application of 6on#ention No. 1HH in Bahrain.
"he 1ffice thro&gh .6"-97P contin&ed to raise awareness among employers organi*ations of the
importance of 1SB and to help them pro#ide 1SB-related ser#ices for their mem%ers. 6apacity-%&ilding
acti#ities were carried o&t in .rgentina .rmenia Bangladesh Pl&rinational State of Boli#ia 6roatia
9c&ador !eorgia B&ngary 5ndia Fenya 7ontenegro Parag&ay =omania Saint L&cia Slo#enia and
"a(ikistan.
"hro&gh .6"=.8 the 1ffice has &ndertaken or contri%&ted to #ario&s training acti#ities in the area of
1SB in .l%ania .rgentina Bosnia and Ber*ego#ina Botswana Bra*il 6hile 6olom%ia 6osta =ica 9l
Sal#ador !hana !&atemala Fenya 7alawi 7a&riti&s 7exico =ep&%lic of 7oldo#a Nami%ia
Parag&ay Per& Seychelles So&th .frica "he former I&gosla# =ep&%lic of 7acedonia Er&g&ay
Boli#arian =ep&%lic of 8ene*&ela Wam%ia and Wim%a%we.
S&pport sho&ld %e strengthened in co&ntries interested in ratifying and applying the key 1SB instr&ments
and re,&iring technical assistance for the de#elopment of their 1SB legislation policies profiles and
programmes. 5n .sia with the s&pport of .S9.NV1SBN9" more .S9.N co&ntries may ratify
6on#ention No. 1DQ. 5n .frica mem%er States are making progress in the design and implementation of
1SB profiles policies and legislation in cons&ltation with the social partners and with 5L1 s&pport. 5n the
.mericas more efforts are needed to assist in the adoption of national 1SB policies. 5n the .ra% States
recent de#elopments in the ela%oration and &pdating of 1SB policies and profiles are pa#ing the way for
new 1SB acti#ities for which technical assistance sho&ld %e increased. "he 1SB acti#ities of workers and
employers organi*ations sho&ld also %e gi#en f&rther s&pport.
.ction plan <2:11V1;> to impro#e the conditions of work of fishers thro&gh the widespread ratification and
effecti#e implementation of the $ork in +ishing 6on#ention 2::Q <No. 1DD> and the effect gi#en to the
$ork in +ishing =ecommendation 2::Q <No. 1CC>
.s 6on#ention No. 1DD has recei#ed #ery few ratifications assistance has %een pro#ided for national
legislati#e gap analyses to foster %est practices and the de facto implementation of the 6on#ention.
"ripartite national seminars workshops and training co&rses ha#e %een held and the 6on#ention has %een
incorporated into the 3ecent $ork 6o&ntry Programmes <3$6Ps> of some co&ntries.
5n order to implement the next phase of the pro(ect which consists of an online reporting system fi#e
mem%er States ha#e #ol&nteered to &se the pilot system for the 2:12 reporting exercise. 1nce the system
has pro#ed to %e &sef&l and relia%le it will %e extended to more mem%er States.
DRM2F : 2.F. STRATEGIC MANAGEMENT
1. Est%0lish in &et%il the +se o1 S3OT in the %n%l.sis o1 Intern%l str%tegi! %ssess2ent.
. S$1" analysis is commonly &sed in marketing and %&siness in general as a method of identifying
opposition for a new #ent&re or strategy. Short for Strengths $eaknesses 1pport&nities and "hreats this
allows professionals to identify all of the positi#e and negati#e elements that may affect any new proposed
actions.
A"his analysis leads to %&siness awareness and is the cornerstone of any s&ccessf&l strategic planA said
Bonnie "aylor #ice president of strategic marketing at 66S 5nno#ations. A5t is impossi%le to acc&rately
map o&t a small %&sinessPs f&t&re witho&t first e#al&ating it from all angles which incl&des an exha&sti#e
look at all internal and external reso&rces and threats. . S$1" accomplishes this in fo&r straight-forward
steps that e#en rookie %&siness owners can &nderstand and em%race.A
Niki Pfieffer fo&nder of Niki Pfieffer 3esigns noted that many small %&siness owners donPt know how to
properly &se a S$1" analysis to g&ide their %&siness.
A5t is a%o&t le#eraging yo&r strengths o&tso&rcing and partnering where yo& are weak foc&sing on
opport&nities and %eing aware of threatsA she said.
"he p&rpose of a S$1" analysis
"he S$1" analysis ena%les companies to identify the positi#e and negati#e infl&encing factors inside and
o&tside of a company or organi*ation. Besides %&sinesses other organi*ations in areas s&ch as
comm&nity health and de#elopment and ed&cation ha#e fo&nd m&ch &se in its g&iding principles. "he key
role of S$1" is to help de#elop a f&ll awareness of all factors that may affect strategic planning
and decision making a goal that can %e applied to most any aspect of ind&stry.
S$1" is meant to act primarily as an assessment techni,&e tho&gh its lengthy record of s&ccess among
many %&sinesses makes it an in#al&a%le tool in pro(ect management.
A. good S$1" analysis ser#es as a dash%oard to yo&r prod&ct or ser#ices and when done correctly can
help yo& to na#igate and implement a so&nd strategy for yo&r %&siness regardless of company si*e or
sectorA said 8ipe 3esai fo&nder and 691 of B3J Bydration 7ix. A$e contin&e to re#isit o&rs e#ery year
to keep it &pdated d&e to constant shifts in market trends. 5tPs a crisp and simple way to comm&nicate the
most important aspects of o&r %rand.A
$hen to &se S$1"
S$1" is meant to %e &sed d&ring the proposal stage of strategic planning. 5t acts as a prec&rsor to any sort
of company action which makes it appropriate for the following moments:
9xploring a#en&es for new initiati#es
7aking decisions a%o&t exec&tion strategies for a new policy
5dentifying possi%le areas for change in a program
=efining and redirecting efforts mid-plan
"he S$1" analysis is an excellent tool in organi*ing information and presenting sol&tions identifying
road%locks and emphasi*ing opport&nities.
APerforming a S$1" analysis is a great way to impro#e %&siness operations and decision makingA said
.ndrew Schrage fo&nder and 691 of 7oney 6rashers. A5t allowed me to identify the key areas where my
organi*ation was performing at a high le#el as well as areas that needed work. Some small %&siness
owners make the mistake of thinking a%o&t these sorts of things informally %&t %y taking the time to p&t
together a formali*ed S$1" analysis yo& can come &p with ways to %etter capitali*e on yo&r companyPs
strengths and impro#e or eliminate weaknesses.A
$hile the %&siness owner sho&ld certainly %e in#ol#ed in creating a S$1" analysis it co&ld %e m&ch more
helpf&l to incl&de other team mem%ers in the process.
A1&r management team does a S$1" analysis ,&arterlyA said Shawn $alsh president and 691 of
Paradigm 6omp&ter 6ons&lting. A"he collecti#e knowledge remo#es %lind spots that if left &ndisco#ered
co&ld %e detrimental to o&r %&siness of o&r relationship with o&r clients.A
Brandon 3&dley director of marketing and operations at "he B&sBank also said that colla%orati#e S$1"
analyses gi#e employees a greater sense of &nderstanding and in#ol#ement in the company.
"he elements of a S$1" analysis
. S$1" analysis foc&ses entirely on the fo&r elements incl&ded in the acronym allowing companies to
identify the forces infl&encing a strategy action or initiati#e. Fnowing these positi#e and negati#e
impacting elements can help companies more effecti#ely comm&nicate what elements of a plan need to %e
recogni*ed.
$hen drafting a S$1" analysis indi#id&als typically create a ta%le split &p into fo&r col&mns so as to list
each impacting element side-%y-side for comparison. Strengths and weaknesses wont typically match
listed opport&nities and threats tho&gh some correlation sho&ld exist since theyre tied together in some
way.
=oyce Leather !ifts marketing director Billy Ba&er noted that pairing external threats with internal
weaknesses can highlight the most serio&s iss&es faced %y a company.
A1nce yo&P#e identified yo&r risks yo& can then decide whether it is most appropriate to eliminate the
internal weakness %y assigning company reso&rces to fix the pro%lems or red&ce the external threat %y
a%andoning the threatened area of %&siness and meeting it after strengthening yo&r %&sinessA Ba&er said.
Intern%l 1%!tors
"he first two letters in the acronym Strengths and $eaknesses refer to internal factors which means the
reso&rces and experience readily a#aila%le to yo&. 9xamples of areas typically considered incl&de:
+inancial reso&rces s&ch as f&nding so&rces of income and in#estment opport&nities.
Physical reso&rces s&ch as yo&r companys location facilities and e,&ipment.
B&man reso&rces s&ch as employees #ol&nteers and target a&diences.
6&rrent processes s&ch as employee programs department hierarchies and software systems.
$hen it comes to listing strengths and weaknesses indi#id&als sho&ldnt try to s&garcoat or gla*e o#er
inherent weaknesses or strengths. 5dentifying factors %oth good and %ad is important in creating a thoro&gh
S$1" analysis.
AEsing the S$1" analysis has more than once sa#ed me from myself keeping me from taking on
pro(ects that wo&ld likely ha#e %een too m&ch for my small companyA said "om .tkins fo&nder of
L&arry Bo&se.
7itchell $eiss %&siness professor at the Eni#ersity of Bartford recommended f&lly analy*ing yo&r
strengths and weaknesses first.
A6ompanies canPt hope to take ad#antage of or control the external factors &ntil the internals ha#e %een
o%(ecti#ely assessedA he said.
S$1" .nalysis "emplate
Bere is a S$1" .nalysis template with some examples filled in:
Strengths 3e%,nesses
Political s&pport
+&nding a#aila%le
7arket experience
Strong leadership
Pro(ect is #ery complex
Likely to %e costly
7ay ha#e en#ironmental
impact
Staff reso&rces are already
stretched
Oort+nities Thre%ts
Pro(ect may impro#e local
economy
$ill impro#e safety
9n#ironmental constraints
"ime delays
1pposition to change
Pro(ect will %oost companyPs
p&%lic image
"he S$1" analysis is a simple al%eit comprehensi#e strategy in identifying not only the weaknesses and
threats of a plan %&t also the strengths and opport&nities a#aila%le thro&gh it. $hile an excellent
%rainstorming tool the fo&r-cornered analysis prompts entities to examine and exec&te strategies in a more
%alanced way. Bowe#er it is not the only factor in de#eloping a %&siness strategy.
2. E5l%in with the hel o1 e5%2lesE the 1or2s o1 &iversi1i!%tion.
3i#ersification is a method of risk management that in#ol#es the change and implementation of different
in#estments stated in a specific portfolio. "his is practices %eca&se of the rationale that a portfolio
containing a #ariety of in#estments can yield higher profits and ser#e as a lower risk to the independent
in#estments in the same portfolio. 5t is only thro&gh in#esting more sec&rely that the %enefits of
di#ersification may %e f&lly reaped. 5n#estment thro&gh foreign sec&rities may also reap %enefits %eca&se of
the decreased correlation %etween local in#estments.
"he concentric di#ersifications specify that there exists similarities %etween the ind&stries in terms of the
technological standpoint. 5t is thro&gh this that the firm may compare and apply its technological know how
to an ad#antage. "his is thro&gh a caref&l change or alteration in the marketing strategy performed %y the
%&siness. "his strategy aims to increase the market #al&e of a partic&lar prod&ct and therefore gain a higher
profit.
"he hori*ontal di#ersification tackles prod&cts or ser#ices that are in a sense not related technologically to
certain prod&cts %&t still pi,&e the interest of c&rrent c&stomers. "his strategy is more effecti#e is the
c&rrent clientele is loyal to the existing prod&cts or ser#ices and if the new additions are well priced and
ade,&ately promoted. "he newest additions are marketed in the same way that the pre#io&s ones were
which may ca&se insta%ility. "his is %eca&se the strategy increases the new prod&cts dependence on an
existing one. "his integration normally occ&rs when a new %&siness is introd&ced howe#er &nrelated to the
existing.
6onglomerate or lateral di#ersification is where the company or %&siness promotes prod&cts or ser#ices
with no relation commercially or technologically to the existing prod&cts or ser#ices howe#er still interest
a n&m%er of c&stomers. "his type of di#ersification is &ni,&e to the c&rrent %&siness and may pro#e ,&ite
risky. Bowe#er it may also pro#e #ery s&ccessf&l since it independently aims to impro#e on the profit the
company acc&m&lates with regards to the new prod&ct or ser#ice.
.t times there are certain defensi#e actions that may promote to the risk of contraction within the market
or that the c&rrent prod&ct market seems to ha#e no more growth opport&nities. "his m&st also %e
considered %efore initiating a certain type of di#ersification strategy. .nother factor is the o&tcome of the
chosen di#ersification strategy. "he expected res&lt is expected to generate a profita%ility growth that will
complement the ongoing acti#ities within the company.
DRM1G : 1.G. RESEARCH METHODO$OG*
1. E5l%in the ro0le2s to 0e en!o+ntere& 0. rese%r!hers in In&i%
4ro0le2s en!o+ntere& 0. rese%r!hers in In&i% %n& Re2e&i%l 2e%s+res 1or ro2oting %n& i2roving
the 9+%lit. o1 To+ris2 %n& Hotel rese%r!h in In&i%
"o&rism as an academic field and a research area is a recent phenomenon. =esearchers in 5ndia partic&larly
engaged in empirical research are facing se#eral pro%lems:
1. "he lack of a scientific training in the methodology of research is a great impediment for researchers in
o&r co&ntry. "here is pa&city of competent researchers especially in to&rism and hospitality where the
research primarily is %eha#ior %ased and spans across cross c&lt&ral %o&ndaries there%y making it all
the more important and imperati#e that researcher is competent and ed&cated eno&gh to &nderstand the
intricacies and n&ances of this type of research. 7any researchers take a leap witho&t knowing
research methods. 7ost of the work which goes in the name of research is not methodologically
so&nd. =esearch to many researchers and e#en to their g&ides is mostly a scissor and paste (o% witho&t
any insight shed on the collated materials. "he conse,&ences are o%#io&s #i* the research res&lts
,&ite often do not reflect the reality or realities. "h&s a systematic st&dy of research methodology is
an &rgent necessity. Before &ndertaking research pro(ects researchers sho&ld %e well e,&ipped with all
the methodological aspects. .s s&ch efforts sho&ld %e made to pro#ide short-d&ration intensi#e co&rse
for meeting this re,&irement.
2. "here is ins&fficient interaction %etween the &ni#ersity research departments on one side and %&siness
esta%lishments go#ernment departments and research instit&tions on the other hand. . great deal of
primary data of non-confidential nat&re remain &nto&ched %y the researchers for want of proper
contacts. 9fforts sho&ld %e made to de#elop satisfactory liaison among all concerned for %etter and
realistic researchers. "here is a need for de#eloping some mechanics of a &ni#ersity- ind&stry
interaction programme so that academics can get ideas from practitioners on what needs to %e
researched and practitioners can apply the research done %y the academics.
N. 7ost of the %&siness &nits in o&r co&ntry do not ha#e the confidence that the material s&pplied %y them
to researchers will not %e mis&sed and as s&ch they are often rel&ctant in s&pplying the needed
information to researchers. "he concept of secrecy seems to %e sacrosanct to %&siness organi*ations in
the co&ntry so m&ch so that it pro#es an impermea%le %arrier to researchers. "h&s there is need for
generating the confidence that the information o%tained from a %&siness &nit will not %e mis&sed.
). =esearch st&dies o#erlapping one another are &ndertaken ,&ite often for want of ade,&ate information.
"his res&lts in d&plication and fritters away reso&rces. "his pro%lem can %e sol#ed %y proper
compilation and re#ision at reg&lar inter#als of a list of s&%(ects on which and the places where the
research is going on. 3&e attention sho&ld %e gi#en toward identification of research pro%lems in
#ario&s disciplines of applied science which are of immediate concern to the ind&stries.
H. "here does not exist a code of cond&ct for researchers and inter-&ni#ersity and interdepartmental
ri#alries are also ,&ite common. Bence there is need for de#eloping a code of cond&ct for researchers
which if adhered sincerely can win o#er this pro%lem.
;. 7any researchers in o&r co&ntry also face the diffic&lty of ade,&ate and timely secretarial assistance.
"his ca&ses &nnecessary delays in completion of research st&dies. .ll possi%le efforts %e made in this
direction so that efficient secretarial assistance is made a#aila%le to researchers and that too well in
time. Eni#ersity !rants 6ommission m&st play a dynamic role in sol#ing this diffic&lty.
Q. Li%rary management and f&nctioning is not satisfactory at many places and m&ch of the time and
energy of researchers are spent on tracing o&t the %ooks (o&rnals reports etc. rather than in tracing
o&t rele#ant material from them.
D. "here is also the pro%lem that many of o&r li%raries are not a%le to get copies of old and new
.cts-r&les reports and other go#ernmental p&%lications in time. "his pro%lem is felt more in li%raries
which are away in places from3elhi and other state capitals. "h&s efforts sho&ld %e made for the
reg&lar and speedy s&pply of all go#ernmental p&%lications to reach o&r li%raries. 5nternet has eased the
way research (o&rnals reports and a%stracts were read and &sed earlier making this pro%lem sol#ed to a
#ery great extent. "h&s researcher sho&ld %e well #ersed with all that it takes to sort the %est and most
&sef&l information there%y making the whole process efficient for red&cing time effort and money
spent on it.
C. "here is also the diffic&lty of timely a#aila%ility of p&%lished data from #ario&s go#ernment and other
agencies doing this (o% in o&r co&ntry. =esearcher also faces the pro%lem on acco&nt of the fact that
the p&%lished data #ary ,&ite significantly %eca&se of differences in co#erage %y the concerning
agencies.
1:. "here may at times take place the pro%lem of concept&ali*ation and also pro%lems relating to the
process of data collection and related things.
11. "here is one pro%lem &ni,&e to to&rism and hospitality research st&dies in 5ndia and that is of its
si*e. 5ndia is a #ast co&ntry with all the di#ersities and demographic differences like no other and that
pose a great diffic&lty while researching %eca&se it %ecomes practically impossi%le to incl&de e#eryone
in its p&r#iew gi#en all its differences. 6hoosing a sample %ecomes the %iggest challenge. Bence
in 5ndia to&rism st&dies are more region and area specific #ery &nlike other co&ntries where the st&dies
are &ndertaken on national le#els.
2. E5l%in the !ontents o1 % rese%r!h reort in &et%il.
6ontents o1 Rese%r!h Reort
"he researcher m&st keep in mind that his research report m&st contain following aspects:
1. P&rpose of st&dy
2. Significance of his st&dy or statement of the pro%lem
N. =e#iew of literat&re
). 7ethodology
H. 5nterpretation of data
;. 6oncl&sions and s&ggestions
Q. Bi%liography
D. .ppendices
"hese can %e disc&ssed in detail as &nder:
"1# 4+rose o1 st+&.:
=esearch is one direction oriented st&dy. Be sho&ld disc&ss the pro%lem of his st&dy. Be m&st gi#e
%ackgro&nd of the pro%lem. Be m&st lay down his hypothesis of the st&dy. Bypothesis is the statement
indicating the nat&re of the pro%lem. Be sho&ld %e a%le to collect data analy*e it and pro#e the hypothesis.
"he importance of the pro%lem for the ad#ancement of knowledge or remo#ed of some e#il may also %e
explained. Be m&st &se re#iew of literat&re or the data from secondary so&rce for explaining the statement
of the pro%lems.
"2# Signi1i!%n!e o1 st+&.:
=esearch is re-search and hence the researcher may highlight the earlier research in new manner or
esta%lish new theory. Be m&st refer earlier research work and disting&ish his own research from earlier
work. Be m&st explain how his research is different and how his research topic is different and how his
research topic is important. 5n a statement of his pro%lem he m&st %e a%le to explain in %rief the historical
acco&nt of the topic and way in which he can make and attempt. 5n his st&dy to cond&ct the research on his
topic.
")# Review o1 $iter%t+re:
=esearch is a contin&o&s process. Be cannot a#oid earlier research work. Be m&st start with earlier work.
Be sho&ld note down all s&ch research work p&%lished in %ooks (o&rnals or &np&%lished thesis. Be will
get g&idelines for his research from taking a re#iew of literat&re. Be sho&ld collect information in respect
of earlier research work. Be sho&ld enlist them in the gi#en %elow:
1. .&thor-researcher
2. "itle of research -Name of %ook
N. P&%lisher
). Iear of p&%lication
H. 1%(ecti#es of his st&dy
;. 6oncl&sion-s&ggestions
"hen he can compare this information with his st&dy to show separate identity of his st&dy. Be m&st %e
honest to point o&t similarities and differences of his st&dy from earlier research work.
"-# Metho&olog.:
5t is related to collection of data. "here are two so&rces for collecting data? primary and secondary. Primary
data is original and collected in field work either thro&gh ,&estionnaire inter#iews. "he secondary
datarelied on li%rary work. S&ch primary data are collected %y sampling method. "he proced&re for
selecting the sample m&st %e mentioned. "he methodology m&st gi#e #ario&s aspects of the pro%lem that
are st&died for #alid generali*ation a%o&t the phenomena. "he scales of meas&rement m&st %e explained
along with different concepts &sed in the st&dy.
$hile cond&cting a research %ased on field work the proced&ral things like definition of &ni#erse
preparation of so&rce list m&st %e gi#en. $e &se case st&dy method historical research etc. Be m&st make
it clear as to which method is &sed in his research work. $hen ,&estionnaire is prepared a copy of it m&st
%e gi#en in appendix.
"@# Interret%tion o1 &%t%:
7ainly the data collected from primary so&rce need to %e interpreted in systematic manner.
"heta%&lation m&st %e completed to draw concl&sions. .ll the ,&estions are not &sef&l for report writing.
1ne has to select them or cl&% them according to hypothesis or o%(ecti#es of st&dy.
"C# Con!l+sions;s+ggestions:
3ata analysis forms the cr&x of the research pro%lem. "he information collected in field work is &sef&l to
draw concl&sions of st&dy. 5n relation with the o%(ecti#es of st&dy the analysis of data may lead the
researcher to pin point his s&ggestions. "his is the most important part of st&dy. "he concl&sions m&st %e
%ased on logical and statistical reasoning. "he report sho&ld contain not only the generali*ation of inference
%&t also the %asis on which the inferences are drawn. .ll sorts of proofs n&merical and logical m&st %e
gi#en in s&pport of any theory that has %een ad#anced. Be sho&ld point o&t the limitations of his st&dy.
"F# 8i0liogr%h.:
"he list of references m&st %e arranged in alpha%etical order and %e presented in appendix. "he %ooks
sho&ld %e gi#en in first section and articles are in second section and research pro(ects in the third. "he
pattern of %i%liography is considered con#enient and satisfactory from the point of #iew of reader.
"G# Aen&i!es:
"he general information in ta%&lar form which is not directly &sed in the analysis of data %&t which is
&sef&l to &nderstand the %ackgro&nd of st&dy can %e gi#en in appendix.
Layo&t of the =esearch =eport
"here is scientific method for the l%.o+t o1 rese%r!h reort. "he l%.o+t o1 rese%r!h reort means as to
what the research report sho&ld contain. "he contents of the research report are noted %elow:
1. Preliminary Page
2. 7ain "ext
N. 9nd 7atter
"1# 4reli2in%r. 4%ges:
"hese m&st %e title of the research topic and data. "here m&st %e preface of foreword to the research work.
5t sho&ld %e followed %y ta%le of contents. "he list of ta%les maps sho&ld %e gi#en.
"2# M%in Te5t:
5t pro#ides the complete o+tline o1 rese%r!h reort along with all details. "he title page is reported in the
main text. 3etails of text are gi#en contin&o&sly as di#ided in different chapters.
a> 5ntrod&ction
%> Statement of the pro%lem
c> "he analysis of data
d> "he implications drawn from the res&lts
e> "he s&mmary
<a> Intro&+!tion:
5ts p&rpose is to introd&ce the research topic to readers. 5t m&st co#er statement of the research pro%lem
hypotheses o%(ecti#es of st&dy re#iew of literat&re and the methodology to co#er primary and secondary
data limitations of st&dy and chapter scheme. Some may gi#e in %rief in the first chapter the introd&ction
of the research pro(ect highlighting the importance of st&dy. "his is followed %y research methodology in
separate chapter.
"he methodology sho&ld point o&t the method of st&dy the research design and method of data collection.
<%> St%te2ent o1 the ro0le2:
"his is cr&x of his research. 5t highlights main theme of his st&dy. 5t m&st %e in nontechnical lang&age. 5t
sho&ld %e in simple manner so ordinary reader may follow it. "he social research m&st %e made a#aila%le to
common man. "he research in agric&lt&ral pro%lems m&st %e easy for farmers to read it.
<c> An%l.sis o1 &%t%:
3ata so collected sho&ld %e presented in systematic manner and with its help concl&sions can %e drawn.
"his helps to test the hypothesis. 3ata analysis m&st %e made to confirm the o%(ecti#es of the st&dy.
<d> I2li!%tions o1 D%t%:
"he res&lts %ased on the analysis of data m&st %e #alid. "his is the main %ody of research. 5t contains
statistical s&mmaries and analysis of data. "here sho&ld %e logical se,&ence in the analysis of data. "he
primary data may lead to esta%lish the res&lts. Be m&st ha#e separate chapter on concl&sions and
recommendations. "he concl&sions m&st %e %ased on data analysis. "he concl&sions m&st %e s&ch which
may lead to generali*ation and its applica%ility in similar circ&mstances. "he conditions of research work
limiting its scope for generali*ation m&st %e made clear %y the researcher.
<e> S+22%r.:
"his is concl&si#e part of st&dy. 5t makes the reader to &nderstand %y reading s&mmary the knowledge of
the research work. "his is also a synopsis of st&dy.
")# En& M%tter:
5t co#ers rele#ant appendices co#ering general information the concepts and %i%liography. "he index may
also %e added to the report.