Corporate Learnings

Business Strategies

2009-03-12T07:19:00.000-07:00

Business Strategies
Business Strategy focus on improving the competitive position of the company or business unit’s products/ services within the specific industry or market segment that the company/ SBU serves.
Business strategy can be:
Ø Competitive
Ø Cooperative

Porter’s Competitive Strategies: Competitive strategies raise following questions:
Ø Competitive Advantage (Generic strategies): Should we compete on basis of low cost or differentiation (quality/ services).
Ø Competitive scope: Should we compete on most sought after share of market (entire) or niche.

A tactic is a specific operating plan detailing how a strategy is to be implemented in terms of :

Ø Timing tactics- When to compete
v First Movers (Pioneer)
v Late Movers (Laggards)

Ø Market location tactics- Where to compete
v Offensive Tactics: Takes place in established competitors market location. It can take place in following forms:
• Frontal assault: e.g. Nirma Vs HUL
• Flanking maneuver: e.g. Cyrix (math’s coprocessor) Vs Intel
• Bypass attack: e.g. Fruit drinks Vs Soft drinks
• Encirclement: e.g. Microsoft Vs Netscape
• Guerrilla Warfare: e.g. Ganga Vs Bisleri
v Defensive Tactics: Takes place in firm’s own market current market location as a defense against possible attack of a rival. According to Porter, defensive tactics deliberately reduce short term profitability to ensure long term profitability.

• Raise structural barriers: offer full line; enter agreement with suppliers; encourage government to raise barriers

• Increase expected retaliation: Defend territory by drastic cut in prices, sales discount, coupons; new versions

• Lower inducement for attack: Reduce challenger’s expectation of future sales/ profits.

Cooperative strategies are applied to gain competitive advantage within an industry by working with other firms. The two general types of cooperative strategies are :
Ø Collusion: It is an active cooperation of firms within an industry to reduce output and raise prices in order to get around the normal economic law of supply and demand. Collusion can be:
• Explicit: Archer Daniels Midland (lysine)-US, Japan, S. Korea
• Tacit:

Ø Strategic Alliances: It is a partnership of two or more corporation/ SBUs to achieve strategically significant objectives that are mutually beneficial. Corporations form alliances for :
ü Obtaining technology/ manufacturing capabilities: Intel-HP-Pentium micro processor
ü Obtaining access to specific markets:P&G
ü Reducing financial/ political risks: IOC-Ceylon Petroleum Corporation
ü Achieve/ insure competitive advantage: GM-Toyota

Strategic alliances can range from:
• Mutual service consortia (weak & distant): IBM- Toshiba- Siemen-Computer chips
• JV/ Licensing arrangement:
• Value Chain partnership (strong & close)

STRATEGY FORMULATION

2009-03-09T06:16:00.000-07:00

STRATEGY FORMULATION

Characteristics of Mission:

It should be:
Ø Motivating.eg. Dow Chemicals
Ø Feasible (high but realistic) eg. NASA
Ø Precise (neither too narrow nor too broad)
Ø Distinctive (differentiate from competitors)

Mission statements are formulated through:
Ø Vision created by leaders in light of national priorities
Ø Entrepreneur’s corporate philosophy
Ø Top management

ESSENTIAL COMPONENTS OF AN IDEAL MISSION STATEMENT

CUSTOMERS
We believe our first responsibility is to the doctors, nurses, and patients, to mothers and all others who use our products and services. (Johnson & Johnson)

PRODUCTS OR SERVICES
Standard Oil Company is in the business to find and produce crude oil, natural gas, and natural gas liquids; to manufacture high quality products useful to the society from these raw materials; and to distribute and market those products and to provide dependable related services to the consuming public at reasonable prices. (Standard Oil Company)

MARKETS
We are dedicated to the total success of Corning Glass Works as a worldwide competitor. (Corning Glass Works)

TECHNOLOGY
Control Data is in the business of applying micro electronics and computer technology in two general areas: computer related hardware; and computing enhancing services, which include computation, information, education and finance. (Control Data)

CONCERN FOR SURVIVAL, GROWTH AND PROFITABILITY
In this respect, the company will conduct its operations prudently, and will provide the profits and growth which will assure Hoover’s ultimate success. (Hoover Universal)

PHILOSOPHY
It’s all part of the Mary Kay Philosophy- a philosophy based on the golden rule. A spirit of sharing and caring where people give cheerfully of their time, knowledge, and experience. (Mary Kay Cosmetics)

SELF CONCEPT

Crown Zellerbach is committed to leapfrogging competition within 1,000 days by unleashing the constructive and creative abilities and energies of each of its employees. (Crown Zellerbach)

CONCERN FOR PUBLIC IMAGE
To contribute to the world’s obligation for the protection of the environment. (Dow Chemicals)

CONCERN FOR EMPLOYEES
To recruit, develop, motivate, reward and retain personnel of exceptional ability, character and dedication by providing good working conditions, superior leadership, compensation on the basis of performance, an attractive benefit program, opportunity for growth and a high degree of employment security. (The Wachovia Corporation)

Strategic management

2009-03-08T04:59:00.000-07:00

Definition:
Ø According to Fred R David,” Strategic management is the art and science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objectives”.

Ø According to Wheelen & Hunger,” Strategic Management is the set of managerial decisions and actions that determine the long run performance of a corporation. It includes environmental scanning, strategic formulation, strategy implementation, evaluation and control.”

Key attributes of strategic management
Ø Analysis & Diagnosis- environment for O/T; S/W
Ø Choice- generating alternative solutions
Ø Implementation- building structure, team
Ø Evaluation- reviewing results and future possibilities.
e.g. Maytag Corporation: To improve the quality of home life by designing, building, marketing, and servicing the best appliances in the world.

Ø Mission: It is the reason or the purpose for the organization’s existence. It tells what the company is providing to the society. It can be narrow or broad. A well conceived mission statement defines the unique purpose that sets a company apart from other firms.
e.g. Google: Organize the world's information and make it universally accessible and useful.

v Mission Vs Vision: Inspiring statement of what the organization intends to become in future.
e.g.Microsoft: To enable people and businesses throughout the world to realize their full potentials.
"Vision without action is a daydream. Action without vision is a nightmare."
– Japanese proverb

Ø Objectives:They are the intended end result of the planned activity. They state what is to be accomplished by when and should be qualified, if possible. They are the closed ended statements that are quite specific (SMART).
e.g. To achieve 10% annual growth in earnings per share for the next 3 years.
v Objectives Vs Goals: While objectives are the closed ended statements that are quite specific, goals are open ended attributes that are general. Goals are general intentions; objectives are precise.
e.g. To be a market leader in premium-car segment.

Ø Strategies: The word derives from the Greek word stratēgos, which derives from two words: stratos (army) and ago (for leading). A strategy of a corporation forms a comprehensive master plan stating how the corporation will achieve its missions and objectives. It is a plan an organization formulates to maximize competitive advantage or to minimize competitive disadvantage.
e.g .Corporate strategies, business strategies, functional strategies

Ø Policy: A policy is a broad guideline for decision-making that links the formulation of strategy with its implementation. Policy statements indicates the specific regulations, requirements, or modifications to organizational behavior to support strategy and facilitate achievement of objectives.
e.g. Intel: cannibalize your product line with better products before a competitor does it to you.
e.g. GE: GE must be number one or two wherever it competes
e.g. promotion policy,

Ø Programs: A program is the statement of the activities or steps needed to accomplish a single – use plan. It makes strategy action oriented.
e.g. R&D program for continuous growth strategy
e.g. T&D (HMM) program to improve ASK in employees.
e.g. Cost Cutting Program to achieve Low cost strategy

Ø Budgets: A budget is the statement of corporation’s programs in monetary terms (rupee). Used in planning and control, a budget lists the detailed cost of each program.

Ø Procedures: Procedure, sometime termed Standard Operating Procedure (SOP), are a system of sequential steps or techniques that describe in detail how a particular task or job is to be done.
e.g. Under cost cutting program

Ø Performance: It is the end result of an activity. In organizations it is normally stated in terms of competitive advantage and above average returns.

Project Management

2009-02-22T04:56:00.000-08:00

What is a Project ?
A project is a problem scheduled for solution. - J. M. Juran
A project is a temporary endeavour undertaken to create a unique product, service or result.
Project management is the process of:
Planning,
Organizing,
Managing task and resources
To accomplish a defined objective, within constraints on:
• Time,
• Resources
• Cost.
What is the Project Triangle?
Time
Money
Scope
Scope
• Most projects have a specific finish date( time), budget (money), and Scope.
• Trio of time, money and scope is called as the Project Triangle.
• If we adjust any one of these elements, the other two are affected. While all three elements are important, typically one will have the most influence on our project.

Quality in project triangle
• What does quality have to do with the project triangle
• Any changes we make to any of the three sides of the triangle is likely to affect quality. Quality is not a factor of the triangle; it is a result of what we do with time, money, and scope

Project Quality Standards- Objectives
• Achieving all project goals
• Prevent costly mistakes,
• Provide the resources needed to complete the project successfully,
• Meet project schedule objectives,
• Improve productivity and meet customer requirements.
• Failure to set and meet quality standards can result in a loss of customers, money, and trust

CIP Quality Standard
• Wartsila O&M CIP Project Quality standard applied are :
• 3E (Values)
• Energy
• Excitement
• Excellence
• Project deliverables which satisfy customer needs.

Benefit/Cost Analysis
• Compares financial benefit to the company with costs of implementing the project
• Cost Elements for analysis:
• Cost to produce the product/service
• Cost of marketing
• Cost of operational support
• Demand Projections/ projected Revenue:
• Over chosen period (as per Co. norms)

Scoring Models
• Weighted Scoring Model:
• A Benefit Measurement Technique.
• Criteria on the scoring model to be decided by Project Selection Committee
• Profit potential
• Marketability
• Ease to produce/ support
• Each criteria assigned a weightage depending on the importance of the criteria to the project sponsor/Entrepreneur.
• More important criteria carry a higher weight.

Cash Flow Analysis Techniques
• Payback Period
• Discounted Cash flows
• Net Present Value
• Internal Rate of Return

Entrepreneurial Venture

2009-02-16T01:00:00.000-08:00

Creating Entrepreneurial Venture
Business Planning Process
Environmental Analysis - Search and Scanning
Identifying problems and opportunities
Defining Business Idea

The Entrepreneurial Process

Involves finding, evaluating and developing an opportunity by overcoming the forces that resist creating some thing new.

• Phases in venture creation:
• Identification and evaluation of opportunity
• Development of business plan
• Determination of required resources
• Management of the enterprise

Identification and evaluation of opportunity phase:
o The process by which an entrepreneur comes up with an opportunity for business venture.
o Requires skill, foresight and ingenuity
o Keeping in view competencies, capabilities and resources while identifying the idea.
Identification and evaluation of opportunity phase:
o Opportunity Assessment
o Creation and length of opportunity
o Real and perceived value of opportunity
o Risk and returns of opportunity
o Opportunity versus personal skills and goals
o Competitive environment

Sources of identification of an opportunity:
• Observation
• Market Characteristics
• Conversion of waste in to wealth
• Adoption of technology
• Socio-economic changes
• Trade fairs
• Trade and professional journals
• Publications of government departments

Observation
Ø Most important sources of getting a business idea
Ø Non availability of particular articles may develop an industrial unit
Ø Market Characteristics
Ø Unfulfilled demands
Ø Demand for fast food etc.. growing every day
Ø Demand of festival gifts both social and corporate on the rise

Ø Socio-economic changes:
Ø Changes in socio economic status of people
Ø Preferences for branded products, beauty parlors, cell phones etc.
Ø Trade fairs:
Ø Visiting industrial and trade fairs
Ø Trade and professional journals
Ø Publications of government departments
Ø Technological survey reports

Evaluation of a business opportunity:
Major Criteria for Evaluation
Ø Compatibility with promoter
Ø Compatibility with Availability of financial and human resources with the entrepreneur.
Ø Government Regulations
Ø Project to follow government norms (rules and regulations)
Ø Market
Ø Assured market for product and services
Ø Raw Material
Ø Risk:
Factors to be evaluated
Ø Market stability in economic cycle
Ø Technological risk
Ø Competition from imports
Ø Legislation and controls
Ø Seasonal demands
Ø Predictability of demand

VENTURE CAPITAL

2009-02-13T00:04:00.000-08:00

Meaning and definition

The term venture capital comprises of two words- ‘venture’ and ‘capital’. The venture means a course of proceeding, the output of which is uncertain but which is accompanied by the risk of danger of loss. The capital means resources to start the enterprise.

Thus, venture capital implies committing capital resources to the enterprise that has risk and adventure i.e funds made available for financing of new business ventures.

Venture capital is also called seed capital or start up capital.

It is money invested by professionals who invest and manage young rapidly growing companies that have the potential to develop into significant economic contributors.

Characteristics of venture capital

1.Supports entrepreneurs by financial assistance

2.Provide management skill

3.Investments are generally in equity shares

4.Investor’s return is different from that of ordinary share holders

5.It is a chain joining investors and entrepreneurs

6.Venture capital is invested for new technological development

7.Investors are involved in management of the enterprise

8.High risk

9.Long – term investment

Stages/Steps Of Venture Capital Funding

1. Early stage

2. Expansion financing stage

3. Maximum financing stage

Types of Venture Capital

Equity participation
Conditional loans
Income notes
Participating debentures
Venture leasing

Problems of Venture Capital financing

Requirement of an experienced management team
Requirement of an average rate of return on investment
Longer payback period
Uncertainty regarding the success of the product in the market
Questions regarding the infrastructure details of production like plant location, accessibility, relationship with suppliers and creditors, transportation facilities, labour availability etc.
The category of potential customers and the packaging and pricing details of the product
The size of the market
Major competitors and their market share
Skills and Training required and the cost of training
Financial considerations like return capital employed (ROCE),cost of project, the Internal Rate of Return (IRR) of the project, total amount of funds required, ratio of owners investment (personnel funds of the entrepreneur), borrowed capital, mortgage loans etc. in the capital employed.

Entrepreneurship

2009-02-12T04:51:00.000-08:00

“Entrepreneurship is the process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, psychic, and social risks and receiving the resulting rewards of monetary and personal satisfaction and independence.”

§Entrepreneurship involves the creation process:

The creation has to be something new of value to the entrepreneur and the customers/stake holders for whom it is developed.
This audience (customer/stake holders) can be,
The market of organizational buyers for business innovation
The hospital’s management for an ERP system
Prospective student of a management school for a new course
The constituency of a new service provided by a nonprofit agency

§Receiving the rewards of Entrepreneurship :

Independence, being your own boss
Monetary rewards in terms of profits from business
Indicator of success in life, (for most of the people)
Great amount of personal satisfaction for own creation

vEntrepreneurial decision process:

Having a creative idea (many)
Bringing that idea to market (very less in number)
Creation of a new venture (few)
Deciding to become entrepreneur by leaving present activity
A movement from present life style to forming a new enterprise

§Change from present life style: requiring energy and courage.

Start business in familiar areas
Start business in Familiar Marketing environment, to fulfill customers wants and needs
Incentive to overcome inertia to and leave a present life style
Initiated by personal dislocation or disruption (retirement, retrenchment, lay off, business closure etc.)
Lack of satisfaction in job, person having a dream pursuing higher education
Forming new enterprise desirable and possible

§Desirability of New Venture formation:

Result of an individual’s
Culture
Family
Teachers
Peers

Retail strategy

2009-02-08T22:09:00.000-08:00

Definition:
“A clear and definite plan that the retailer outlines to tap the market and build a long-term relationship with the customer”

A retail strategy is the fundamental to the existence to the existence of the retail organization. It helps definite the organization, its purpose and how the retailer will face various challenges in the environment and market place.

The definition of retail strategy enables other areas with in the organization to determine their strategies. Primary among these are:

Ø STORE LOCATION
Ø MERCHANDISING
Ø PRICING
Ø MARKETING

Steps in retailing strategy:

Ø Establish mission
Ø Analyze situation
Ø Identify options
Ø Set objective
Ø Obtain and allocate resources
Ø Develop implementation plan
Ø Monitor progress and control

Steps 1: Defining the mission or the purpose of the organization

The mission statement is a statement of the long term purpose of the organization. It describes what retailer wishes to accomplish in the markets in which it chooses to complete. Mission statement normally includes:

v Product and services that will be offered
v Customers who will be served
v Geographic areas that the organization chooses to operate in
v Manner in which the firm intends to compete in its chosen market

Example:
Wal-mart- “To give ordinary folk the chance to buy the same thing as rich people”
McDonald- “Quality, service, convenience and value”

Step 2: Conduct a situation analysis

The retail strategy needs to look inwards and understand what its strengths and weaknesses are and look outwards and analyze the opportunites and threats, which may arise in the environment. Over the years, many management experts have developed various models for conducting a situation analysis. These include PEST analysis, SWOT analysis and the BCG matrix.

Step 3: Identifying options/ strategic alternatives:
The retailer needs to consider the various alternatives available the various to him for tapping a particular market.

The alternatives available to the retailer are:
v Market penetration
v Market development
v Retail form development
v Diversification

Step 4: Set Objectives:

The purpose of setting objectives is to give direction and set standards for the measurement of measurement of performance.
Objectives may set keeping these two areas in mind. Examples include:
Set volume targets
Market share targets
Retail expansion targets
Profitability to be achieved
Liquidity
Return on Investment

Step 5: Obtain and allocate the resources needed to compete

The resources that a retailer needs are human are human as well as financial. Financial resources take care of the monetary aspects of the business like shop rent, salaries and payments of merchandise. Human resources are just as vital to the success of a retail operation are as financial resources and physical facilities. The human resources paln must be consistent with the overall strategy of the retail organization.

Step 6: Develop the strategic plan:
Here, retailer determines the strategy by which he will achieve the objectives set forth.
The target market is defined and the retail mix that will serve the audience finalized.
The target market is that segment of the consumer market that the retail organization decides to serve. There is no definite or best way for deciding upon and selecting the target market in which to compete.

In order to be successful in segmenting the market, the retailer must ensure that it is:
v Measurable: is the segment measurable and identifiable?
v Accessible- will focusing marketing efforts on a particular market segment have a positive impact on eliciting the desired responses?
v Economically viable
v Stable

Step 7: Implementing the strategy, Evaluate and Control
The Key to success of any strategy lies in its implementation. To implement a firm’s desired positioning effectively, every aspect of the store must be focused on the target market. Merchandising must have empathy for it; and customer service must be designed with the target customer in mind.
Once a strategy is implemented, managers need feed back on the performance of the new strategy. The effectiveness of the long- term competitive strategy of the firm must be evaluated periodically. Such and evaluation covers all elements of the plan. This type of evaluation guarantees with overall competitive strategy of the business.

McDonald

2009-02-08T06:24:00.000-08:00

McDonald's Restaurants
Streamlined Salary System
Sopra Group's award winning work with McDonald's UK MIS team and the Payroll department to support and enhance the existing payroll solution has provided a more time-efficient and cost-effective system.With an average of 45,000 staff being paid every fortnight, it is essential to maintain a robust and flexible payroll system that continues to ensure payment in a correct and timely fashion. The enhanced payroll system has transformed a previously labour intensive process into a highly efficient and robust key business system saving the payroll department two days each fortnight.

Background

Since the first restaurant was opened in 1955 in the United States, McDonald's has grown to become a household name, with a total of 30,000 restaurants worldwide serving an estimated 46 million customers every day. In the UK alone the company now has 1250 restaurants nationwide, employing around 45,000 hourly-paid staff.A further 3500 staff are involved in restaurant management and Head Office duties, and approximately 25,000 more are employed by one of the 450 franchisees around the country. Despite its massive penetration in the UK fast food market, McDonald's continues to grow at a rapid rate and around 60 new restaurants.

Situation

As the business continues to grow rapidly, so too does the role for IT. Staffed by 17 permanent employees, the MIS team must juggle priorities to ensure that it continues to meet the demands of the business and to deliver an optimum service to its customers.Faced with the challenge of limited resource and an increasing workload, McDonald's has chosen to focus the in-house team on essential areas such as business analysis and project management.McDonald's has long since adopted the approach of establishing business relationships with specialist organisations that can provide quality based, complementary and cost effective services.With in excess of 20 different supplier relationships however, it was recognised that there was a need to consolidate and focus on two or three partnerships with organisations that could develop an in-depth understanding of the business and deliver real value.Sopra Group was chosen to partner with McDonald's to identify areas where Applications Management could deliver the greatest benefits in terms of cost, efficiency and effectiveness. Initially, the top priority was identified as the AS/400 payroll application "Payplan".

Solution

Taking over the development and support of Payplan required a partner with experience and the ability to learn quickly. Based on recommendations and track record, McDonald's invited three companies to tender, including Sopra Group.Steve Tiley, Head of MIS at McDonald's, said: "Our primary objective was to migrate all Payplan support issues away from key staff within MIS and instead encourage customers to deal directly with our chosen partner. Part of our review process, therefore, involved a thorough assessment of the support desk facilities provided by the three organisations. We also took a close look at the development teams of each and approached several reference sites before finally choosing Sopra Group."After the in-depth evaluation, Sopra Group was selected – a choice that continues to pay dividends for McDonald's and the MIS department in particular. Having successfully enhanced and supported Payplan since 1998, Sopra Group was invited to provide support and development services for a number of other applications at McDonald's.Jon Clayton, Senior Account Manager at Sopra Group, spoke about the implementation of the support service: "It was clear from the outset that the McDonald's team had a strong picture of what they required and we worked closely with them to ensure that their needs were met. We spent time gaining an understanding of their business and technical requirements and worked as a unit to help develop a workable solution."Tracey Bolden, Project Manager at McDonald's commented: "Our current internal resources are limited. It was therefore essential that we worked with a team that understood our business requirements and could work with us to provide a robust service and ongoing support. Sopra Group consultants have been invaluable in providing expertise and support and as a result they have truly become part of our team.

Key Benefits

McDonald's now receives a quality service, clearly defined in a service level agreement, which offers a number of significant benefits, including:
A quantifiable value for money service.
Significant system and process enhancements. For example, previously all payslips were printed in-house on a fortnightly basis, collated manually and distributed to all employees. System enhancements have enabled data to be sent directly to an external agency for printing and distribution, transforming a previously labour intensive job into a manageable task saving the payroll department two days each fortnight. A scalable, flexible resource-pool with a greater breadth and depth of skills.
An ability for the MIS team to focus on core business areas whilst delivering more benefits to the business.

The Future

Based on the success of the work to date, it is anticipated that a number of other areas will be identified where Application Management services will deliver considerable benefits to the McDonald's business. The Sopra Group team will continue to work collaboratively with the McDonald's MIS Team and their customers, providing a consistency of approach and common working practices, regardless of the project, to ensure MIS continues to meet and exceed its customers' expectations.

Why Entrepreneur Fail?

2009-02-02T20:52:00.000-08:00

Seven Perils of Entrepreneurship
If you’ve been out of work for a while, or are just plain tired of the work you’ve been doing for years, you may be thinking of starting a business. If so, get ready to embark on an exciting, rarely dull, often nerve wracking journey.To call it “perilous” may be stretching things since perilous is defined as “dangerous”. However, peril means “exposure to risk or harm,” and starting a business can certainly be risky and is definitely challenging.
Since writing challenges down seems to make them easier, let’s look at the obstacles you’re about to face.
1. Time Mis-Management—This is one of those issues that create problems for many of us who start new business ventures. Either you spend all of your time working, or you can’t quite keep yourself on a schedule.
Many businesses fail within the first year because the owner couldn’t get a handle on work time vs. “the rest of life” time. Rule number one: you can’t spend every waking minute on your business. You still need to have a life. Otherwise you’ll burn out.
2. Organizational Skills—If you’ve got them, you’ve just passed a major hurdle. Beingdisorganized not only means wasting time as you dig around trying to find something, but it also makes focus difficult. Which leads to peril number 3.
3. Focus (or Rather “Lack Of”)—One of my friends decided to close his business and focus on consulting. Seemed like a good idea. He knew his field and had a lot of hands-on experience. He also had a fully equipped home office and no kids or spouses around for distraction.Unfortunately, the idea was better than the venture. Why? He couldn’t focus without the structure of an office environment. Working at home seemed like some sort of part-time job. Instead of being at his desk every morning at a certain time, he’d find other things to do. Lunch hours often turned into taking the afternoon off. It was a “sort of” business—not a serious one.4. 4. Fear of Failure—Failure and entrepreneurship go hand-in-hand. If you’re not fully aware that your business could fail—or if you’re terrified of failure—go to work for someone else. Because if you’re not willing to take risks, you shouldn’tbe in business for yourself.
Risk means stretching, taking chances, trying new tactics, making mistakes and learning how to work through them.Do some reading about successful entrepreneurs. You’ll find that most have had failures along the way—either companies that didn’t succeed or ideas that failed. Didn’t stop them from starting again. Call it gumption.
5. Lack of Marketing—Most new businesses simply don’t have large marketing budgets. However, that’s no excuse for not marketing. Because if you’re not getting your name out there, someone else will…only it will be their name, not yours.There are a host of inexpensive marketing tools. Networking is my number one favorite for new businesses (and old). The cost is minimal. Your investment is in time. Find some.
Join networking groups, chambers of commerce, or industry organizations. Attend events where you’ll meet new people. Craft a thirty second “elevator speech” about your company (benefit-focused). Carry your business cards—always! Talk to people when you’re out. I’ve picked up business by chatting with people at social events. You never know who might be a potential customer…or who might know someone who might be.
Other cost-effective marketing tools include direct mail (very targeted), direct email, e-newsletters, a Web site (takes the place of a printed brochure) and public relations. It’s not necessary to have an advertising campaign. It is necessary to do something!
6. Not Staying on Top of Your Game—Technology has radically changed the way we do business. Information is disseminated immediately via the Internet. You need to be able to make decisions quickly. The same technology that makes our lives easier also requires that we work harder.Stay current on what’s going on in your particular industry. Find some industry leaders and read their newsletters and books.7. Forgetting to Have Fun—Perils aside, as an entrepreneur, you control your destiny. You’re not at the mercy of a company downsizing and eliminating your job. And if you lose an account here or there (it happens), you can go out and get more. You can be as busy as you choose to be.So enjoy what you’re doing. Get up in the morning knowing that you’re (hopefully) doing what makes you happy. And, have fun.

Economic forecasting

2009-02-02T08:41:00.000-08:00

To understand the direction of movement of the economy it is must for an analyst to forecast the economy.
The fortunes of specific industry and the firm depends on the how the economic outlook looks like in the future.
short term- intermediate term and long term.
The forecasting will be more relevant if it is done in:
o Short term- upto one year
o Intermediate term- one to three year.
o Long term- above three years.
The central theme of forecasting is to forecast national income, because it summarizes the receipts and expenditures of all segments of the economy, be the Government, business or the households.

Some of the techniques of short term forecasting are:

Anticipatory Surveys
This is very simple method through which investors form their opinions about the future state of the economy.
This is a survey of expert opinions of those prominent in Government, business, trade and industry or academia.

Barometric or indicator approach
In this approach , various types of indicators are studied to find out how the economy is likely perform in the near future.
These indicators are classified as :
o Leading indicator
o Roughly coincidental indicator
o Lagging indicator.

Leading indicator:
These are the indicators which leads economic activity in terms of their outcome.
These are those variables that reach their highpoints as well as low points in advance of the economic activity.
Some of leading indicators are:
o Average weekly hours of manufacturing production workers.
o Contracts and orders for plant and machinery.
o Money Supply
o Average weekly unemployment claims.
o Index of stock prices.
o Change in sensitive material prices
o Change in manufacturer’s unfilled orders (durable goods)

Roughly coincidental indicator:
These are the indicators that reach their peaks and troughs at approximately the same time as the economy.
Some of them are:
o Index of industrial production
o Manufacturing and trade sales.
o Employees on non- agricultural payrolls.
o Personal incomes.

Lagging Indicators:
These are the variables that lag behind in their consequences vis-à-vis the economy. These reach their turning points after economy has already reached its own.
Some of these are:
o Ratio of manufacturing and trade inventories to sales.
o Commercial and industrial loans outstanding.
o Change in consumer price index etc.

Indicator approach is quite useful in suggesting the direction of a change in the aggregate economic activity.
However it tells nothing about the magnitude of the change.

Money and stock prices
It is widely recognized that money supply in the economy plays an important and crucial part in the investment decision making .

The rate of change in the money supply in the economy affects the corporate profits, GNP, interest rates and stock prices.

Accordingly it argued that total money supply and its rate of change play an important in influencing the stock prices.

FOREX MARKET

2009-01-26T09:48:00.000-08:00

Each country has its own currency. Whenever one currency is exchanged with another it is a foreign exchange or Forex transaction.
The foreign exchange market has experienced many changes since its inception. For many years the United States and its allies participated in a system under the Bretton woods Agreement.
The foreign exchange rates were tied to the amount of gold reserves belonging to the nation.
However in the summer of 1971, President Nixon took the United States off the gold standard. After this many countries followed and there was no relation between the gold reserves and the exchange rates. Floating exchange rates materialized.
Today supply and demand for a particular currency or its relative value is the driving factor in determining exchange rates. The fall of communism and the dramatic growth of the Asian and Latin American economies have decreased obstacles and increased opportunities for investors in foreign exchange. Increasing trade and foreign investment have made the economies of all nations more and more interrelated. Economic figures are regularly reported around the world.

Inflation, unemployment levels, unexpected news, such as natural disasters or political instability, alters the desirability of holding a particular currency. This influences the international supply and demand for that currency. The U.S. dollar, therefore, fluctuates constantly against currencies of the rest of the world.

Forex investments are investments in a currency other than that of your own country. If you have U.S. dollars your investment is in dollars. If you have British Pounds your investment is in Pounds.
You desire to visit a foreign country. You know the approximate amount of money you will spend. You have the option of either taking your own currency to that country or exchanging the same when you visit that country.
You also have the option of exchanging the currency in your own country and keeping the currency of the foreign country with you well before you visit that country. e.g. You are to visit Japan but you are at present in New York. You can change the U.S. dollars into Japanese Yen before you leave. This is a foreign exchange investment.
You would do it if you think the Yen is going to become stronger. i.e. In future you will get less yen for dollars.

Forex investments are trading in future by options.
An option gives you the right, but not an obligation, to buy or sell a specific amount or foreign exchange at a specified price within a specified period.
Options are either call or put, Calls give the holder the right to buy the foreign currency or Forex at a specified price. Puts give the right to sell Forex at a specified price.
Depending on the actual market price when you exercise the option you will gain / lose the difference between the specified price and the market price.

Placement Case Study: Marjory

2008-10-06T08:53:00.000-07:00

Marjory is hard of hearing and relies quite heavily on it being possible for her to lip read. She did not declare her impairment when she registered for her MSc in Electrical Engineering and managed to pass the first two years of her course. She is aware that there is a placement in the third year but does not know much about the detail.

In the second semester of the third year Marjory is allocated a placement in a large factory where they design and manufacture electrical components. She frequently misinterprets instructions, particularly if these are given when she is looking at the computer. The placement provider raises concerns with the university about the poor performance of the student and is doubtful about giving her experience on the factory floor, which is usually regarded as an important element of the placement.

As placement organiser for the Department of Electrical Engineering,

Q1 How would you respond – to the provider, and to the student?

Q2 If what the student was unable to do appeared to compromise health and safety and/or competence standards what action might you take?

Q3 How might you minimise the possibility of this kind of difficulty occurring?

Placement Case Study: Daniel

2008-10-06T08:50:00.000-07:00

Daniel is in his second year of a Social Work course. He is partially sighted and uses a computer with appropriate access packages, including a scanner, screen reading software and magnification software. He can read text which is minimum point 20, Ariel or Verdana font. He has needed a sighted guide for orientation in new environments, such as the start of a semester when he is unfamiliar with the locations to classes, and routes involved.

Prior to the second year placement the department provides details of the placement, and the University’s placement organiser invites students to indicate whether they have any needs associated with it. Daniel approaches his tutor and informs him that twice in the last three months he has had a seizure, and that there are ongoing medical investigations. But he makes it clear that he does not wish this information to be passed on to anyone, including the placement provider, the Disability Service and the Professional Body.

Q1 As his University tutor how would you respond to this request for confidentiality?

If Daniel becomes willing to share the information about his impairments:

Q2 As placement organiser for the University, how might you set about obtaining a suitable placement for Daniel?

Q3 How might you deal with a refusal by a placement provider to accept Daniel on a placement?

Subsequent medical evidence suggest that a part time placement restricted to afternoons would be likely to avoid the possibility of seizures occurring while on placement. Neither the university’s regulations nor the professional body’s requirements allow for such a possibility.

Q4 What action might you, as placement organiser for the University, take?

Placement Case Study – Sarah

2008-10-06T08:49:00.000-07:00

Sarah is a student on a B.Ed course of teacher training. She has a diagnosis of bipolar depression and has in the past experienced mood changes, usually gradual but occasionally rapid and dramatic. She describes the depressed cycle as characterised by:

· difficulty in concentration and making decisions
· feelings of profound hopelessness and pessimism
· insomnia and early-morning awakening and fatigue
· loss of interest in things which at other times are enjoyable.

The manic phase she would describe as involving:

· a marked increase in energy
· severe insomnia
· grandiose ideas
· disconnected and racing thoughts
· often inappropriate elation.

Having achieved well at school, Sarah was thereafter subject to prolonged periods in hospital, and it is only within the past 3 years that she has found herself able to consider higher education.

At the start of her course, Sarah, who is now in her second year, chose not to disclose her mental health history, as she feared that this might disqualify her from admission. However, she subsequently (half way through her first year) sought the assistance of the University’s Disability Service, and gave that Service documentary information about her difficulties. At that time, she described herself as ‘reasonably stable on medication’. She asked the University’s Disability Adviser to keep the information confidential.

Q1 Are there grounds for any particular concerns in relation to Sarah’s 3rd year placement?

Q2 What, if any, information should the University’s Disability Adviser pass on about this student?

Q3 Where does/should responsibility lie for risk assessments, occupational health assessments, or any other type of checks, in respect of disabled students on placements, bearing in mind that some disabled students may not disclose to anyone that they are disabled?

Placement Case Study - Martin

2008-10-06T08:44:00.000-07:00

Martin is in the third year of a degree course leading to a qualification in Podiatry. When Martin became a student, he disclosed that he was dyslexic, and various arrangements were put in place by the institution to support him in his study: he received equipment through the Disabled Student Allowance scheme; additional time and the use of a scribe was provided for written exams; reports and essays were checked by a proof-reader prior to submission; lecturing and tutorial staff have routinely, in advance of teaching, made copies of overheads and other materials available on the University Intranet. The Disability Service in the institution holds a copy of Martin’s dyslexia assessment.

Immediately prior to the second year placement, which is in a geriatric hospital setting, Martin discloses to his tutor that he has become increasingly depressed over the last few months, and that he has experienced recurrent bouts of anxiety and panic. His GP has prescribed medication which has taken the edge off, but not disposed of, the worst symptoms. Martin says that he does not want any information about his mental health to be relayed to the placement provider, or to any of the other teaching staff. Nor does he want information about his dyslexia to be passed on to the placement provider. He prefers to attempt the placement without support.

Q1 If you were his tutor having this discussion with Martin, what view would you take of what you have been told, and how would you proceed thereafter?

At an early stage in the placement it becomes clear to Martin that he is having difficulty with the demands represented by seeing patients at regular intervals. In the time available, he is having real difficulty in reading and comprehending a patient’s notes, which are made available to him as the patient arrives at the clinic. He is also having difficulty in concentrating on the patient because of his concern about taking adequate notes, as supervisors will wish to see these.

Q2 What are the possible forms of support which might alleviate Martin’s difficulties?

Q3 Are any of these in potential conflict with academic or other professional standards?

Q4 Would any system or arrangements have made it possible for the likely difficulties to be anticipated?

Towards the end of the placement, the placement clinician contacts the University, and expresses concerns about Martin’s interactions with patients. She comments that Martin has been abrupt with, to the point of being rude to, a patient; that his apparent anxiety has been commented on by a number of clinicians, who are concerned about the effect on patients; that on another occasion, a patient was in tears after a session with Martin, and said that he was a most unpleasant young man.

Martin fails the placement. He does not wish to appeal this decision, but does wish to re-take the placement, as the course regulations would permit. However, some staff express concerns about allowing him to undertake a repeat placement because of the concerns raised by the placement clinician.

Q5 Is there justification for NOT allowing Martin to undertake the repeat placement? If you think so, what would constitute such justification?

Case of Mohan

2008-09-30T09:28:00.000-07:00

I am a Supervisor in this work- shop which assembles control panels. Krishna , a worker in the shop inspects panels for quality checks after assembly. The quality checker reported to me that Krishna inspects two or three panels at a time and claims double or triple set-up time. I feel this is cheating. I have told him about this several times.
Few days ago when it was brought to my notice again, I became wild and wanted to settle the issue. I called the union on the issue, which Krishna did not like.
I knew that union would certainly defend the worker even though they are wrong. But I wanted to make it clear to both Krishna as well as to union that I would not tolerate the practice any more and if he continues further, I would recommend to have Krishna penalized or fired.
He thinks he is a great singer. I have come to know that he works with some local music band in the city after works.
I don’t mind, but when his outside interest starts affecting his efficiency at work, I have to control him. That is why I keep monitoring his work closely.
I know Krishna since long and believe he can do a good job. But in recent months his attitude towards me as well as to work has changed. He instigates others to leave the work and join him for washing hands few minutes before the lunch siren.
I also think he is harboring some ill feeling against me. Reason, I do not know. I feel he purposely creates trouble at the work place.
I have told him several times to mend his ways. But he does not seem to bother. I think Krishna is mentally deficient as no amount of counseling brings him to senses.
He has asked me for a transfer. But I did not respond because I was damn angry at that time. Otherwise I would have agreed for his transfer.
I think it would be good to talk to him again. There may be something bothering him in his personal life. I shall give him a chance to think through.
I shall make one more attempt to counsel him. If he improves, it is well and good, otherwise I shall ask my Boss for his dismissal.

Case of Krishna

2008-09-30T09:23:00.000-07:00

I am a worker in this workshop. My job is to inspect control panels assembled in the workshop.
According to existing practice, I am allowed a certain ‘Set-Up’ time to take the panels from the rack, carry them over to the test bench, place them properly in position and then inspect them for quality checks.
For the sake of convenience and to save time, I sometime manage to carry two or three panels at a time and carry out inspection together. In the past also we have done that.
Mr. Mohan, the Supervisor feels this is improper and amounts to cheating the company. Once or twice he came to the test bench and told me about this.
One day he called union representative to intervene. In presence of the union, he charged me about following a dishonest practice and threatened to take action against me.
I maintained that inspecting more than one panel at a time was not wrong as per approved procedure. Union representative also argued that according to the contract, employees are entitled to use methods to save time and speed-up process as long as quality standards are not sacrificed. On being confronted Mohan had to back out.
Ever since then Mohan is cut-up with me and is bent upon making my life miserable. One day he even called me ‘Bastered’.
I have noticed he has become like this after his promotion as Supervisor. Earlier he was also a worker like me. After his promotion he has lost his friendly touch and is not able to manage shop floor workers like me. Further after his marriage he has changed a lot. I don’t know, if there is any connection with the change.
I also notice that he is partial to thefemale employees working in my group. He acts more decently to them than to male emp.
My fellow workers enjoy my singing at work. But my learned supervisor feels I am disturbing others and hamper productivity. I don’t care , because singing is my second source of income after the work.
Occasionally when I leave a little early for washing my hand before lunch, some other workers also accompany me to washroom. Mohan feels I am instigating them to do so.
He thinks I am the trouble creator at the shop floor and therefore keeps watching me with suspicion all the time.
I feel very uncomfortable here and therefore asked him for my transfer. But he is not responding.
As long as I am forced to continue here, I am also going to behave like this.

Case Study on IR

2008-09-19T20:05:00.000-07:00

A few years ago, I had an opportunity to interview an undergraduate stenographer, then employed as P.A. to a Technical Director. His ambition was to become a company Secretary in a reputed organization. His salary expectation was around Rs. 20,000per month at age of 35 years.
I found during the discussion that:
1. His financial position was average.
2. He was staying with his married brother who had three children & only two rooms.
3. He had his parents, who were regularly sent financial assistance; and
4. his work of typing & attending to the Director was exhausting him.
On the other side:
1. He was very hard working,
2. His office timings were such that he could not take advantage of evening college facilities.
3. He had a senior officer who was not only enlightened, but also encouraging.

Within two years he graduated with economics & commerce followed by a law degree in another three years. He purposely specialized in general subjects like Economics Accounts & law, so that he could take up an administrative job as he was not satisfied with his secretarial work. He found that he did not have enough opportunities in the organization to come up in life as a successful man. He reluctantly left the organization took up the post of an Assistant in the Pharmaceutical Company, where he is now a manager.

Questions to discuss:
1.What was wrong with the steno or the organization?
2. Suggest the best possible the company could have done?

Apple competitor LG Lotus

2008-09-13T21:20:00.000-07:00

As we know apple launched 3G i phone in India. Similarly Nokia launched N96 and Lotus by LG. By these hot news we can say that before 3G market, everyone is eager to get on the top with this 3G technology in India launched in September.

LG has announced Lotus by few days earlier. It is designed by Christian Siriano. When the business strategy was formed for this product,
Ehtisham Rabbani who is vice president of product strategy & marketing for LG Mobile Phones said in Indian words "Fashion is so important because it helps convey individual personalities. Similarly, we believe mobile phones have the same ability and have become a fashion accessory within their own right. We are very excited to partner with Christian Siriano and look forward to seeing his unique accessory inspired by the LG Lotus on the runway at Fashion Week. " These are the business talk but I am now going to tell you the features and technology background for this newly launched product.

Key pad is awesome buddy and so much looks like laptop keypad, 2 megapixel camera , nice camcorder, Bluetooth stereo, a microSD memory slot with capacity of up to 12 GB and music player with external controls.

Christian Siriano words for this design are “The scarf I designed for the new LG Lotus is fabulous. It has a pocket for another accessory I can’t live or work without — my phone! I designed the scarf’s little pocket for the Lotus’ square shape. I love it! You should too.”

This beautiful model is available in two colors, namely textured purple and satin black. Well, according to business talks this model will hit the market by October.

E-Book on Marketing Management

2008-09-09T22:07:00.000-07:00

The Marketing Concept
The marketing concept, based on central tenets crystallized in the mid-1950s, challenges
the three business orientations we just discussed.18 The marketing concept
holds that the key to achieving organizational goals consists of the company being
more effective than its competitors in creating, delivering, and communicating customer
value to its chosen target markets.
Theodore Levitt of Harvard drew a perceptive contrast between the selling and marketing
concepts: “Selling focuses on the needs of the seller; marketing on the needs of the
buyer. Selling is preoccupied with the seller’s need to convert his product into cash; marketing
with the idea of satisfying the needs of the customer by means of the product and
the whole cluster of things associated with creating, delivering and finally consuming it.”19
The marketing concept rests on four pillars: target market, customer needs, integrated
marketing, and profitability. The selling concept takes an inside-out perspective. It
starts with the factory, focuses on existing products, and calls for heavy selling and promoting
to produce profitable sales. The marketing concept takes an outside-in perspective.
It starts with a well-defined market, focuses on customer needs, coordinates
activities that affect customers, and produces profits by satisfying customers.
Target Market
Companies do best when they choose their target market(s) carefully and prepare tailored
marketing programs. For example, when cosmetics giant Estee Lauder recognized
the increased buying power of minority groups, its Prescriptives subsidiary launched an
“All Skins” line offering 115 foundation shades for different skin tones. Prescriptives
credits All Skins for a 45 percent sales increase since this product line was launched.
Customer Needs
A company can carefully define its target market yet fail to correctly understand the
customers’ needs. Clearly, understanding customer needs and wants is not always simple.
Some customers have needs of which they are not fully conscious; some cannot
articulate these needs or use words that require some interpretation. We can distinguish
among five types of needs: (1) stated needs, (2) real needs, (3) unstated needs,
(4) delight needs, and (5) secret needs.
Responding only to the stated need may shortchange the customer. For example,
if a customer enters a hardware store and asks for a sealant to seal glass window
panes, she is stating a solution, not a need. If the salesperson suggests that tape would
provide a better solution, the customer may appreciate that the salesperson met her
need and not her stated solution.
A distinction needs to be drawn between responsive marketing, anticipative marketing,
and creative marketing. A responsive marketer finds a stated need and fills it, while an
anticipative marketer looks ahead to the needs that customers may have in the near
future. In contrast, a creative marketer discovers and produces solutions that customers
did not ask for, but to which they enthusiastically respond. Sony exemplifies a creative
marketer because it has introduced many successful new products that customers never
asked for or even thought were possible: Walkmans, VCRs, and so on. Sony goes beyond
customer-led marketing: It is a market-driving firm, not just a market-driven firm. Akio
Morita, its founder, proclaimed that he doesn’t serve markets; he creates markets
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Sales and Distribution of Financial Product

2008-09-09T21:29:00.000-07:00

A Project Report on the Topic “Sales and Distribution of Financial Product”

Private sector is one of the fastest growing sectors in the country. After the Liberalization the Private industry still holds vast opportunities for young and experienced professionals. On the life insurance side public sector life insurance Corporation of India is, of course, the largest player with a history of over 50 years. After Privatization, the PSU has been making efforts to improve efficiency and customer services. Among the private life insurance player Reliance life insurance is the key player.
Reliance money - Anil Dhirubhai Ambani Group offers most dynamic web based trading environment to its customers .The Reliance Money stock trading websites uses special security features 'Security Token', which makes you online trading experience more secure without complexity. Reliance ADG provide the vast opportunities to the new aspirants of the business administration. The financial Sector is full of competition even if there are a lot of opportunities to the job in Reliance Money and It is the platform to go on the highest peak in the life of any coming one. Reliance Money is a single window that provide the multisystem facilities of the financial Products. There are many companies in the market which are providing the financial product like insurance, demat account services, mutual funds, general insurance, Portfolio management services(PMS), wealth management, gold coins, Money changing , Money Transfer, and the others.
Hence Reliance Money provide many financial product on the single window. Reliance money deals with the product and Investment options are available in...
Equity (Stock) Trading
Derivatives Trading Special feature is available first time to track your positions online, in real time.
Forex Trading
Commodity Trading
IPO's
Mutual Funds
Insurance

This project has been a great learning experience for me, at the same time it gave me enough scope to implement my analytical ability.
The first part gives an insight about the Demat Account, Life Insurance, General Insurance and mutual funds and theirs various aspects. It is purely based on whatever I learned at Reliance Money. One can have a brief knowledge about mutual funds and all its basics through the project. Other than that the real servings come when one moves ahead. Some of the most interesting questions regarding these products have been covered. Some of them are:
· Why has it become one of the largest financial intermediaries?
· How investors do chose between funds and these products?
Most popular stocks among fund managers, most lucrative sectors for fund managers, a special report on Systematic Investment Plan, does fund performance persists and the topping of all the servings in the form of portfolio analysis tool and its application.
All the topics have been covered in a very systematic way. The language has been kept simple so that even a layman could understand.
All the quarries of the customer asked by them, had been solved with the support of the seniors in the organization. The problems of the customer were being recorded for the purpose of the research and development.

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INCOME EXEMPT FROM TAX

2008-09-06T05:36:00.000-07:00

INCOME EXEMPT FROM TAX
Income Exempt from tax under sec10:
1.Agricultural Income [Sec 10(1)]

2.Receipts by a member from Hindu undivided family [Sec 10(2)]

3.Share of profits from Partnership firm [Sec 10 (2A)]

4.Leave Travel concession in India [Sec10 (5)]

5.Gratuity [Sec10 (10)]

6.Commuted Pension and Leave salary [Sec10 ((10A),(10AA)]

7.Retenchment compensation [Sec10 (10B)]

8.Compensation at the time of voluntary retirement [Sec 10(10C)]

9.Payment/Bonus under Life Insurance Policy [Sec10 (10D)]

10.Payment from Provident fund [Sec10 (11), (12)]

11.Payment from approved superannuation fund [Sec 10(13)]

12. House Rent Allowance [Sec 10(13A)]

13.Educational scholarship [Sec10 (16)]

14.Daily allowance of members of parliament [Sec 10(17)

15.Awards [Sec10 (17A)]

CLUBBING OF INCOME

2008-09-06T05:20:00.000-07:00

CLUBBING OF INCOME

As a general rule an assessee is taxed in respect of his own income.

In some cases, however, the Income Tax Act deviates from this principle and the assessee is taxed in respect of income, which belongs to some other persons.

These cases are as follows:

Transfer of income without transfer of asset- when income there from is regarded as that of transferor [Sec 60]

Sec 60 is applicable if the following conditions are satisfied.
1. The taxpayer owns an asset.

2. The ownership of asset is not transferred by him

3. The income from the asset is transferred to any person.

4. The above transfer may be revocable or not.

If the above conditions are satisfied
The income from the asset would be taxable in the hands of the transferor.

Example: X owns 4000 debentures of A Ltd. of Rs.100 each carrying 14% interest per annum.

On April 1, 2004 he transfers interest income to his friend Y without transferring the ownership of these debentures.

Although during 2004 –05 interest of Rs 56,000 is received by Y, it is taxable in the hands of X as he has transferred income without transferring ownership of asset.
REVOCABLE TRANSFER OF ASSET- WHEN INCOME THEREFROM IS REGRDED AS THAT OF TRANSERFOR.
Under Sec 61, if an asset is transferred under “revocable transfer”, income from such asset is taxable in the hands of the transferor.
The transfer for this purpose includes any settlement, trust, agreement or arrangement.

WHEN AN INDIVIDUAL IS ASSESSABLE IN RESPECT OF INCOME OF SPOUSE [SEC 64 (1)(ii)]
The sec 64(1)(ii) is applicable if the following conditions are satisfied.
1.Taxpayer is an individual.

2.He/she has substantial interest in a concern.

3.Spouse of the taxpayer (i.e., husband or wife of the taxpayer) is employed in the above-mentioned concern.

4.Spouse is employed in the concern without any technical or professional knowledge or experience.
If above conditions are satisfied, then the salary income of the spouse will be taxable in the hands of the taxpayer.
Example: X has substantial interest in A Ltd. and Mrs. X is employed by A Ltd, without any technical or professional qualification to justify the remuneration.

In this case the salary income of Mrs. X shall
be taxable in the hands of X

WHEN AN INDIVIDUAL IS ASSESSABLE IN RESPECT OF INCOME FROM ASSETS TRANSFERRED TO SPOUSE [SEC 64(1)(iv)]
The following conditions should be satisfied:

1.The taxpayer is an individual.

2. He/she has transferred an asset (other than house
property)

3.The asset is transferred to his /her spouse.

4.The transfer is direct or indirect

5.The asset transferred otherwise than

(a) for adequate consideration, or

(b) in connection with an agreement to
live apart.

6. The asset may be held by the transferee- spouse in
the same form or in different form.

If the above conditions are satisfied, any income from such asset shall be deemed to be the income of the taxpayer who has transferred the asset.

Example: X transfers 100 debentures of IFCI to his wife
without any consideration.

Interest income from these debentures will be
included in the income of X.

AN INDIVIDUAL IS ASSESSABLE IN RESPECT OF INCOME FROM ASSETS TRANSFERRED TO SON’S WIFE [SEC64(1)(vi)]

AN INDIVIDUAL IS ASSESSABLE IN RESPECT OF INCOME FROM ASSETS TRANSFERRED TO A PERSON FOR THE BENEFIT OF SPOUSE [SEC64 (1)(vii)]

AN INDIVIDUAL IS ASSESSABLE IN RESPECT OF INCOME FROM ASSETS TRANSFERRED TO A PERSON FOR THE BENEFIT OF SON’S WIFE [SEC 64(1)(viii)]

WHEN AN INDIVIDUAL IS ASSESSABLE IN RESPECT OF INCOME OF HIS MINOR CHILD [SEC64 (1A)]
All income, which arises or accrues to the minor child, shall be clubbed in the income of the parent.
Clubbing in the hands of father or mother:

The income of minor will be included in the income of that parent whose income [excluding the income includible under sec 64(1A)] is greater.

Where however, the marriage of the parents does not subsist, the income of the minor will be included in the income of that parent who maintains the minor child in the relevant previous year.
When clubbing is not attracted:
In the cases given below, clubbing provisions of sec 64(1A)
are not applicable –
1. Income of minor child (from all sources) suffering
from any disability of the nature specified under sec
80U.

2. Income of minor child on account of any manual
work.

3. Income of minor child on account of any activity
involving application of his skill, talent or specialized
knowledge and experience.

Exemption under sec 10(32):
In case the income of an individual includes the income of the minor child in terms of sec 64(1A), such individual is entitled to exemption of Rs.1500 or the income so included, whichever is less in respect of each minor child.

IPO AND THEIR SUCCESS AND GROWTH

2008-09-05T22:31:00.000-07:00

IPO AND THEIR SUCCESS AND GROWTH
When a business entity needs money the general course of action that it follows is that it goes to the bank. However banks may not be ready to provide huge finance for a long time especially if the returns are not fixed. The best way to raise money is through offer of shares. The securities which the companies issue for the first time to the public and other financial institutions either after incorporation or on conversion from private to public company is called “INITIAL PUBLIC OFFER” or “IPO”. Raising equity gives boost to economical development of the country.

Raising money through IPO is a very complex process. It requires analysis and implementation of various commercial laws applicable to IPO-Prospectus. These laws are Companies Act, Income Tax Act, FEMA, Securities Contract Act and SEBI Guidelines on“Disclosure and Investor Protection Therefore to understand this complex subject, I decided to undertake studies by this Project Report.

Apart of this I analysis the growth of the recent IPO in the indian market and response of the people. I also analysis that what benefit company and investor can get throug an IPO.

Objective Of The Study
The The basic objective of my study on IPO is mainly as under-

 To analyze IPO and their growth and success in India.

 To study and incorporate the legal requirements of an IPO SEBI Norms and Guidelines

 To study Various aspects of IPO like cost, Involvement of intermediaries, pricing of an IPO.

 To study benefit of IPO to company
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PPT on HP

2008-09-05T22:09:00.000-07:00

TYPE ……………......Public
FOUNDED ………….Palo Alto, California (1939)
HEADQUARTERS....Palo Alto, California,USA
INDUSTRY…………..Computer systems
.…………Computer peripherals
………….Computer software
………….Consulting
…………..I T services
PEOPLE……..……….Bill Hewlett, Cofounder
……….David Packard, Cofounder
……….Mark v Hurd,Chairman CEO and President
COUNTRIES ………...More than 170

RANKING…………...No. 14 (FORTUNE 500, 2007)

REVENUE …………………..$ 104.3 billion USD (2007)
NET INCOME……..................$ 7.3 billion USD (2007)
EMPLOYEES………...............156000 (2007)
SLOGAN………………......…Invent
GOAL………………. …….....To be the world's leading IT company
CORPORATE OBJECTIVES...Customer loyalty
…Profit
…Market leadership
…Growth
…Employee commitment
…Leadership capability
…Global citizenship
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Income Tax

2008-08-28T01:56:00.000-07:00

COMPUTATION OF INCOME UNDER THE HEAD “SALARIES”.

WHAT IS “SALARY”?

Relationship between payer and payee-
The relationship between payer and payee should be
of an employer and employee, or master or servant.
Only then the amount received will be treated as salary.

Employer may be:
· An individual, firm,
· Association of persons,
· Company, and corporation,
· Central Government,
· State Government,
· Public body or a local authority.

Employer may be operating in India or abroad. The employee may be full time or part time.

The important point is that payment received by an individual from a person other than his employer cannot be termed as salary and

consequently such income is not chargeable to tax under the head “Salaries”.

Salaries and wages not conceptually different.

SALARIES UNDER SEC 17(1)

Under Sec17 (1) salary is defined to include the following:

(a) Wages;

(b) Any annuity or pension;

(c) Any gratuity;

(d) or in addition to any salary or wages;

(e) Any advance of salary;

(f) Any payment received by an employee in respect of any period of leave not availed by him,

(g) The portion of the annual accretion in any previous year to the balance at the credit of an employee participating in a recognized provident fund to the extent it is taxable.

(h) Transferred balance in the recognized provident fund to the extent it is taxable

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MANAGERIAL STYLE

2008-08-27T05:21:00.000-07:00

MANAGERIAL STYLE

DEDICATED INDICATORS
• Determined
• Aggressive
• Confident
• Busy-Driving
• Sets Tasks- Fixes responsibilities
• Demands performance
• Independent – Ambitious
• Uses rewards & punishment for control
• Workaholic
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Organizational Structure

2008-08-27T05:03:00.000-07:00

What Determines Organizational Structure?

À To what degree are tasks subdivided into separate jobs?
Á On what basis will jobs be grouped together?
Â To whom do individuals and groups report?
Ã How many individuals can a manager efficiently and effectively direct?
Ä Where does decision-making authority lie?
Å To what degree will there be rules and regulations to direct employees and managers?
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CRM in insurance companies (WHY)

2008-08-27T03:51:00.000-07:00

CRM in insurance companies(WHY)

The insurance industry has been booming in India and companies are going overboard to get and retain customers.CRM has proved to be an effective tool for better customer relationships for the insurance companies.The aspects where insurance companies have been able to apply CRM.

•Appointing insurance advisers.
•In order to extend the reach of the company,
1.Advertise on mass media.
2.Internet websites to establish contact with potential customers.
3.Through these websites a suitable insurance products are offered to the prospect for investment

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HRM OUTSOURCING

2008-08-27T03:44:00.000-07:00

HRM OUTSOURCING
As we know that one of the biggest impacts to the HR profession is HR outsourcing business… it is also one of the biggest areas of opportunity.
Outsourcing of HR function is to be the part of an integrated business strategy.
The key factor for the senior management team and HR professionals to identify the core HR processes, and the non-core processes that can be outsourced. It is increasingly being recognized that human resources are a source of competitive advantage for organizations, particularly in the information and knowledge sectors.
Various stakeholders in the organization such as the line managers, CEOs and employees have urged the HR department to play the role of a strategic partner. The core aspects of HR function related to transformation consist of attracting and retaining talent, building people capability in the organization, developing a leadership pipeline and creating a learning organization.
HR Outsourcing is the outsourcing of one or more HR processes to a third party provider. Total HR Outsourcing (HR BPO) is the outsourcing of a majority of HR processes.

Present scenario of HRM outsourcing
HR Outsourcing today is a $32.7B business and growing at a rate of more than 25% per year… and projected to grow at that rate through 2008. It is a faster growing business than HR Consulting.

YES, HR- outsourcing is accepting in INDIA in some of the companies that I have mentioned below:
The HR outsourcing business opportunity is large and India is likely to garner a larger and larger piece of this pie in the future. India, with its intrinsic advantages such as low cost, ready pool of English speaking manpower and geographic positioning, is emerging as a viable destination for HR outsourcing companies to set up their businesses.
But still here people are not very clear about what exactly is manpower outsourcing all about, and issues like quality and trust needs to be addressed properly. Experts say the basic reasons hampering the growth of HR outsourcing in India are confidentiality and cost factors. Moreover, the fear of losing jobs, losing control over confidential data, ethics and quality of outsourcing vendors, security breaches and overall confidence in the vendors deters many organizations. The biggest problem - and this is why the HR outsourcing industry in India is on the back foot - is the government and the industry's failure to tackle issues like data security and data privacy. This is where Indian HR outsourcing companies face a major handicap. The Indian government is still grappling with drafting a data protection law designed to quell growing privacy concerns from their offshore clients.

Companies under HR-Outsourcing:

· XENSA
· Jaisons Technologies
· Pinnac Infotech Services
· SwarajComm Technologies Pvt Ltd
QBmedia

Summer Training Project on HDFC

2008-08-27T03:26:00.000-07:00

This project report bears the imprint of those who had rendered their wholehearted support and encouragement without whose help this effort of mine would be in vain. I express my deep sense of gratitude and sincere thanks to my project guide Mr. Amit Kumar Singh and Ms.Shikhy Khanna for his directions, suggestion and information provided which were of utmost importance for the successful completion of the project. I am also thankful to Pro. Balraj Singh for his proper guidance.
At last, I also thank the employees of National HDFC Bank for assisting me in the timely completion of project.

Distribution Network
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 761 branches spread over 327 cities across India. All branches are linked on an online real-time basis. Customers in over 120 locations are also serviced through Telephone Banking. The Bank's expansion plans take into account the need to have a presence in all major industrial and commercial centres where its corporate customers are located as well as the need to build a strong retail customer base for both deposits and loan products. Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in the centers where the NSE/BSE have a strong and active member base.
The Bank also has a network of about over 1977-networked ATMs across these cities. Moreover, all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders can access HDFC BANK’s ATM network

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What is a Product?

2008-08-25T01:50:00.000-07:00

A product concept is the idea of a product as conceived by the user. Definition of Product concepts will often be driven by user’s needs and by the user defined usage scenario. It represents the idea of a product based on the user viewpoint. The basic relationships are showed in the simplified Express G.

Product Mix Decisions
Ø A firm may lengthen or widen its product mix
Ø A Company may decide to add variations that will attract new users
Ø A product may be pruned or altered, and new product may extend the product life cycle
Ø Line extension: introduction of a new product that is closely related to other products in the firm’s existing line
Product has a life cycle is to assert four things:
Ø Products have a limited life.
Ø Product sales pass through distinct stages,each posing different challenges,opportunities,and problems to the seller.
Ø Profits rise and fall at different stages of the product life cycle.
Ø Products require different marketing,financial,manufacturing,purchasing,and human resource strategies in each life-cycle stage (For More)

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Case study on Financial Management

2008-08-21T23:53:00.000-07:00

Case study:
Mr. A who is working in government department at the post of clerk? His monthly income is Rs. 10,000 and he is saving Rs 2000 per month. Now, he want to invest these 2000 Rs in some activities but he is confused that where should I invest?
He has many options like:
Insurance
Fixed deposit
Real Estates
Mutual funds
Shares

He took the advice from relative, office mate’s etc. Finally, he decided to invest in mutual funds. He went to karvy office and understood the concepts of Mutual funds.
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Mergers and Acquisitions

2008-08-13T03:19:00.002-07:00

The phrase mergers and acquisitions (abbreviated M&A) refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling and combining of different companies that can aid, finance, or help a growing company in a given industry grow rapidly without having to create another business entity.Merger is a tool used by companies for the purpose of expanding their operations often aiming at an increase of their long term profitability. There are 15 different types of actions that a company can take when deciding to move forward using M&A. Usually mergers occur in a consensual (occurring by mutual consent) setting where executives from the target company help those from the purchaser in a due diligence process to ensure that the deal is beneficial to both parties. Acquisitions can also happen through a hostile takeover by purchasing the majority of outstanding shares of a company in the open market against the wishes of the target's board. In the United States, business laws vary from state to state whereby some companies have limited protection against hostile takeovers. One form of protection against a hostile takeover is the shareholder rights plan, otherwise known as the "poison pill".Historically, mergers have often failed to add significantly to the value of the acquiring firm's shares. Corporate mergers may be aimed at reducing market competition, cutting costs (for example, laying off employees, operating at a more technologically efficient scale, etc.), reducing taxes, removing management, "empire building" by the acquiring managers, or other purposes which may or may not be consistent with public policy or public welfare. Thus they can be heavily regulated, for example, in the U.S. requiring approval by both the Federal Trade Commission and the Department of Justice.

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PPT on HUMAN RESOURCE MANAGEMENT

2008-08-13T03:03:00.000-07:00

HUMAN RESOURCE MANAGEMENT
The objective of the research is to find out the reasons responsible for voluntary employee attrition in Easy Bill Ltd. For the period of April 2007- April 2008 and suggest major areas where work should be done to reduce it.

FINDINGS:
•At 44 % annually there is a very high attrition rate in Easy Bill Ltd. which is much more than the sector average for services sector.
•When considered grade wise there is highest attrition at the middle level followed by the junior level
•More than three fourth of the employees left the their jobs within two years of joining the organization in the specific period contrary to the general tendency of shifting jobs within2-4 years of joining an organization
•Telephonic interviews conducted with the former employees revealed that salary package was the main reason for leaving the organization though the analysis of the graphs revealed that the employees were satisfied with the salaries/perks given
•Expectations like higher position and better or more reputed company were also sighted by a large number of respondents which means their professional expectations were not fulfilled.

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Summer Training Project on PEPSICO.

2008-08-08T22:31:00.000-07:00

"TO STUDY AND ANALYZE THE MARKET OF PLASTIC BOTTELS AND GLASS IN FORTHCOMING DAYS"

I have completed this project on “TO STUDY AND ANALYZE THE MARKET OF PLASTIC BOTTELS AND GLASS IN FORTHCOMING DAYZ , as practical training targeting towards acquiring total knowledge of company working in the SALES department.

The objective of having a summer project is to have an opportunity to learn various Sales & Marketing practices which are actually practiced by top managers and executives.

I choose VARUN BEVERAGES , Greator Noida, which is one of the franchise of a big soft drinks company that is PEPSI CO..

This report includes first hand study of MARKETING AND SALES to acquire vivid knowledge??????????????????????

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Summer Training Project on Motherson Sumi Systems Ltd. (MSSL)

2008-08-08T22:06:00.000-07:00

Motherson Sumi Systems Ltd. (MSSL) is the flagship company of Sumi Motherson Group. The wiring harness division of MSSL is the largest manufacturer of wiring harnesses in India, Serving the entire cross-section of the automotive industry. The main objective for carrying out the study is:

· To find out the effectiveness of the recruitment process at MSSL on the basis of the data available for the last six months
· To find out the areas where the recruitment process is lacking using different tools of management
· To give recommendations to correct the recruitment process as per the findings

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?????????????????? (for more)

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Summer Training Project on PEPSICO.

2008-08-04T04:15:00.000-07:00

"TO STUDY AND ANALYSE PRE SALE ORDER BOOKING SYSTEM"
In summers with rise in mercury level the demand for cold drink springs up to quench the thirst of millions of people. As competition is on its apex between two major cold drink giants’ PepsiCo and coca cola they are trying to catch every customer with their wide range of products and making these available everywhere. For this distribution system is main area of focus.
This project deals with PepsiCo new distribution technique called Pre sale order booking system. As Pepsi got a wide range products and no. of SKU is increasing day by day. Main objective of this scheme is making Pepsi range available everywhere. It is important to select right retailer and build good relation with them to ensure availability of products in retail shops, which is a very important aspect of this business. Retailers and PSR are very important part of this system. For this reason the project was assigned to me, titled as TO STUDY AND ANALYSE PRE SALE ORDER BOOKING SYSTEM. For that I prepared a questionnaire for retailer to collect relevant information..........................????????????????????

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Summer Training Project on MUTUAL FUNDS

2008-08-01T03:05:00.000-07:00

"DESCRIPTIVE STUDY OF MUTUAL FUNDS AND STUDY OF INVESTORS PERCEPTION ABOUT INVESTMENT IN MUTUAL FUNDS"

“Expression of feelings by words makes them less significant when it comes to make statement of gratitude”
It gives me pleasure to express my most profound regards and sense of great indebtedness and sincere gratitude to my Company Guide Mr. Tarun Singh (Regional Manager, MAHINDRA Finance ltd. Gurgaon).
I would also like to thank my co employees who gave guidance and support during the completion of the project.
Investment in share markets are influenced by the analysis & reasoning which help in predicting the market to some extent. Over the past years a number of technical & theories for analysis have evolved, these combined with modern technology guides the investor. The big players in the market, like Foreign Institutional Investors, Mutual Funds, etc. have the expertise for various analytical tools & make use of them.......................................................................

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SUMMER TRAINING PROJECTS

2008-08-01T02:32:00.000-07:00

THIS PROJECT IS BASED ON "Distribution channel of JAY PEE "

A project of this nature calls for intellectual nourishment, professional help and encouragement from quarters. I would like to express my gratitude to Mr. Sunny Gaur, in-charge for granting me permission to granting me permission to my training in plant.
Journey of my summer training thus far has been made possible with the support and encouragement by INMANTEC & JAY PEE CEMENT LIMITED.Special thanks to Mr. Pankaj gupta who is the Executive Director of my collage & Mr. A.K.Antony he is senior journal manager of training and development deportment ............................................................

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