Professional Documents
Culture Documents
DECLARATION
We hereby declare that the project work entitled (Title of the project) is an
authentic record of our own work carried out as requirements of Capstone Project
(Part-I) for the award of degree of MBA in Operations( Programme Name ) from
Lovely Professional University, Phagwara, under the guidance of (Mr. Mandeep
Singh Hayer), during August to December, 2012).
Project Group Number: 1
Name of Student 1: Akshi Prashar
Registration Number: 10803262
Name of Student 2: Payal Mahajan
Registration Number: 11111158
Name of Student 3: Faheem Ahmad
Registration Number: 10802635
Name of Student 4: Bhisham Lohra
Registration Number: 11113062
Name of Student 5: Sourabh Gond
Registration Number: 10801109
(Signature of Student 1)
(Signature of Student 2)
(Signature of Student 3)
(Signature of Student 4)
(Signature of Student 5)
CERTIFICATE
This is to certify that the declaration statement made by this group of students is
correct to the best of my knowledge and belief. The Capstone Project Proposal
based on the technology / tool learnt is fit for the submission and partial fulfillment
of the conditions for the award of MBA in Operations from Lovely Professional
University, Phagwara.
Name : Mandeep Singh Hayer
U.ID : 12358
Designation : Assistant Professor
INDEX
1.
2.
3.
4.
5.
6.
Introduction
Objectives
Review of literature
Research methodology
Appendix
Bibliography
ACKNOWLEDGEMENT
A journey is easier when you travel together. This project report is the result of two
months of work whereby, we accompanied and supported by many people. We
would like to extend our gratitude to Mr. Mandeep Singh Hayer who kindly
accepted to guide us in the project. We are thankful to him for spending his
valuable hours to review and analyze our project at every stage and suggested
necessary changes. We feel our self extremely fortunate to have had the
opportunity of associating our self with him. His constant encouragement and
positive words were greatly instrumental in making this work a success.
For most, we would like to thank God for His grace and blessings. Last but not the
least I would like to thanks my parents and family members for their affection and
inspiration all the time.
Akshi Prashar
Payal Mahajan
Faheem Ahmad
Bhisham Lohra
Sourabh Gond
Introduction:
Foreign direct investment (FDI) is direct investment into production in a country
by a company in another country, either by buying a company in the target country
or by expanding operations of an existing business in that country. Foreign direct
investment is done for many reasons including to take advantage of cheaper wages,
and/or for special investment privileges such as tax exemptions offered by the
country as an incentive to gain tariff-free access to the markets of the country or
facilitations our labor laws, all these factors collectively dont make India low
cost. So do you want India to become a center where we allow foreign
companies to come in and set up these large chains which eventually instead of
selling domestic products outsourcing internationally the cheapest sources and
selling those products. Please remember the domestic retail normally sources
domestically, international retail sources internationally because the source
from the cheapest sources.
Even if big retail companies help the farmers in resurrecting their economy,
what plan does the government has for millions of middlemen who are part of
the business process chain that ensures manufactured products reach end users.
We engage millions of uneducated and semi educated people of various stages
of retail business spread across towns and cities but we are afraid that Tesco and
Wal-Mart will only engage smart and educated work force in small strength,
comparatively.
Summary of the political debate on FDI:
Government is taking decision in good faith. Few persons and lobbies controlling
the rates of food commodities in India. And bringing more competition in market
will bring better prices for buyers as well as sellers of commodities. Parties
protesting against FDIs in retail have choice to not to allow FDIs in the states they
are ruling. Government should make a regulatory body for commodity trade as we
have for cellular services.
Objectives of project
FDI in India
com
paris
ion
of
price
s
FDI in setting-up
Agri suppy chain
FDI in retail
FDI in India
Source: world investment report, IHAS Global Insight, CIA, DIPP, Ministry of Finance, World
economic Forum, Media Reports, Booz & Company analysis, April 2009
FDI in Retail
Source:
Source:
Mukherjee, Director, India Ratings and Research, a unit of Fitch Ratings, believes
that the real benefit of retail FDI is limited. While the measures may benefit the
sector and the economy in the long run, India Ratings believes that the near term
impact is limited. India Ratings also says that it expects Indian retailers to reorganize business operations along geographical lines in order to take advantage of
the new rules
Source: Booz & Company and AMCHAM Survey: DIPP, Global Insight; Booz & company analysis
Farmers, consumers will benefit from policy reforms: The bold policy moves
made by the government are in the interest of farmers, manufacturers, consumers,
everybody. I feel that India is back on the move said Rajan Mittal. Large
investments will pour in and huge employment opportunities can be expected.
Rajan Mittal, Vice-Chairman and Managing Director of Bharti Enterprises, speaks
exclusively to NDTV on how the policy measures unleashed by the government
would plan out.
Source: Booz & Company and AMCHAM Survey: DIPP, Global Insight; Booz & company analysis
Review of Literature
transmission
diversify the incomes of small-scale farmers in the long-run. The paper places
particular emphasis on the issues that may need to be addressed through research
and development undertaken by the international, regional and national research
communities. Research and Development is required to support and guide public
and private policy interventions to improve the access of small-scale farmers to
HVA markets. However, to achieve poverty reduction the international research
community must also go beyond the usual technical solutions in research and
development to fully incorporate policy and interventions that effects the required
changes. They need to beware of what failed previously with traditional
commodities such as over dependence, oversupply and declining prices in real
terms and not focus solely on supermarkets as a panacea for agricultural sector and
product market problems. Supermarkets may not be the most profitable outlet for
all small farmers, especially where the upgrading of traditional markets is both
viable and easily accessible to small-scale farmers.
12. Retail-farm price margins growing rapidly in Finland
The share of the wholesale and retail trade in the consumer price of food has
increased rapidly in Finland over the past five years. At the same time, a declining
share of the consumer food euro is allocated to farmers, according to marketing
margin calculations from MTT Agrifood Research Finland.
Marketing margin calculations by MTT indicate the share of the retail price going
to each sector along the supply chain: farmer, processing and trade (=marketing
margin) as well as government taxes. The new figures for the period 1999-2004
reveal considerable growth in both unit and percentage marketing margins for
many basic food products. Farmers in Finland, in turn, have been receiving an
increasingly lower proportion of the retail price of food. The farmer's share in the
price of minced meat, for example, has declined from 33.6 per cent in 1999 to just
over 23 per cent in 2004. The farmer's share for pork chops have declined from
19.4 per cent to less than 15 per cent over the past five years.
Rising marketing margins and a declining share for the farmer have come during a
period of considerable change in the structure of both the retail and wholesale
sectors. The concentration of the retail sector, with fewer outlets and the growth of
the large supermarket chains, has been particularly rapid in Finland. The two
leading retail chains of food and daily goods increased their market share from 55
per cent in 1990 to nearly 80 per cent by 2005. The increased concentration of
retail power means that large retail outlets now exert significantly more control
over others in the food supply chain.
13. Intertemporal pricing efficiency in agricultural markets: The case of
slaughter hogs in West Germany
It is generally believed that the structure, degree of organization and centralization
of many agricultural markets is such as to warrant the provision of price
information services by public bodies. However, if a case for information services
is to be founded on pricing efficiency grounds it has first to be shown that prices do
not reflect available information.
In this paper, the hypothesis that prices reflect available information is tested for
three important markets for slaughter hogs in West Germany. Results from
statistical tests performed on the weekly price series did not lead to rejection of the
hypothesis. Therefore it is concluded that since pricing efficiency prevails in these
markets, the case for government agencies in providing information on prices is
weakened.
Marketing cost has been identified as the major constraint in the wholesale
marketing channel and bringing down the costs, particularly the commission
charges as demonstrated in the co-operative channel, will help in reducing the
price-spread and increasing the producers margin. The need for specialized
transport vehicles for perishable commodities has been highlighted.
16. Cold storage chain
Agriculture in Azerbaijan provides 39.3% of all employment or 2.3
million workers (as compared to approximately 1% or 58,000
workers from oil) but only 6% of GDP or 4.5 billion USD (2008).
Azerbaijans major cash crops are grapes, cotton, tobacco, citrus
fruits, and vegetables and all of these but cotton and tobacco are
dependent upon an effective cold chain if they are to be
economically viable and sustainable. The UN Food and Agriculture
Organization estimates that approximately 40% of the value of
these crops (or over US$2 billion) is currently lost due to the lack
of adequate cold chain facilities. Accordingly, improvements in
the countrys cold chain segment of major cash crops such as
fruits and vegetables will have a very significant monetary
impact. For this reason, PSCEP selected the cold chain segment of
the value chain of many agricultural products as a cross-cutting
independent sub-sector. Of course, it is not accurate to speak of
cold chain and warehousing as one segment of the value chains.
As describe below, in practice effective cold chain operations run
from immediate post-harvest handling to consumers. The analysis
and recommendations herein presented are based on extensive
visits with 19 cold chain operators, discussions with numerous
Research methodology:
Data collection:
Data from retailers, farmers, distributors, shopkeepers from
different states.
Opinions of retailers, farmers and shopkeepers
Political data from media and newspapers
Voice of the people
Data analysis:
Comparison of prices of vegetables within and outside states
Debates
Surveys
Appendix:
Bibliography
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http://www.ndtv.com/video/player/news/obama-s-fdi-remark-draws-sharpcriticism-from-government-opposition/239536
Lars Fek., 1999, Understanding modern cold chain. Food Packers, 52 (1) : 5962.
Mane Rahul Rajaram., 2000 a & b, Business Performance analysis of agrobased
industries in Belgaum district of Karnataka- A case of starch
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Marketing
Strategies with Implications for Producers. Agric. and Resource Econ. Rev, 23
(4):45-56.
Marjatta Sihvonen., (2005), Retail - farm price margins growing rapidly
MTT Agric. Food
Research, Finland.
Helen M.F. White., (2000) Buyer- supplier relationships in the UK fresh
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Horne Burg, B. and Hubner, S., 1994, Waste potato quality judged by
Consumers. Kartoffelbau. 45 (3) : 135-137
Sanjeev Gupta and Rolf, A.E., Mueller., 1982 Inter temporal pricing
efficiency in agricultural markets: The case of slaughter hogs in West
Germany. Research paper in Institute of World Economics. Kiel.
Singh, M. K., 1992, Economics of production and marketing of vegetable : A
case study in potato block of Jabalpur district. Agric. Mktg. 40 (2) : 18-20.
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Somayajulu.G. and Venkataramana.V., 2002, Issues and challenges for
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