aikca-2011 fynl
TRANSCRIPT
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Acharya's Bangalore B-school 1
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Acharya's Bangalore B-school 2
E-magazine 2011-2012Acharya Business Club.VOLUME-1
A.I.K.C.A(ABBS Integrated Knowledge creation & Accumulation)2011
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Contents
First job ? Keep +ve image.
Motivation.
Create any change without
any change.
Foreign investment.
Retail industry in India.
India in 2020.
Gold or Silver ?
FEATURES
THE IMPACT OF MONETARY
POLICY
Prof. Nila.Chotai
MICRO ATMsFINANCIAL
EXCLUSION TO INCLUSION.
Prof. M.Muthu Gopalakrishnan
GREEN CONSUMERISM
Prof. Priya vinod
ABBS COLLEGE e-MAGAZINE
Acharya's Bangalore B-schoo
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Acharya's Bangalore B-school 4
This academic year we have just le
ehind has been another year of commendable achievements for thollege. I congratulate everyone who has contributed in different way
o make the first e-magazine from ABBS named - A.I.K.C.A possible
We go on, and enter another years in our lives, as individuals, as a
stitution.
Let us try to have the best plans an
reams for the year, both for those who are leaving the college thear, and those who continue here. let us make good use of a
pportunities we have, constantly reviewing everything we do, an
eciding to do better.
My best wishes
Poornima Reddy
irectorAdministration.
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Dear netizans,
t is nice to know that India is emerging big in IT,
elecommunication and other service sectors. There are more
han 800 million mobile telephone users in India! Worlds second
argest density of mobile phones! There are more than 100
million Internet users in India. India is emerging. We are lucky to
e in India at this point of time, when great things areappening. Let us all join hands and make it better. We shall keep
he Indian flag flying high among the comity of nations.
ABBS is leader in management education segment. Leaders in
ducation sector, as in any other segment, have to have great
ision. It is easy for followers. They have to just follow theeaders. We being leaders have created innovative methods o
earning and dissemination every semester. Let be our in house
ournal- AMBER (a peer reviewed and focused journal), ou
eaching methods (including OBT, live projects) or our incubation
f companies in the campus, we have proved to the world that
we are class apart. Our strength is our students. Hats off to themhey have added another feather on our cap. This time through
-magazine- AIKCA. I wish that, this magazine would open up
ew avenue for knowledge creation, dissemination, discussion
nd debate. All the best to the first edition of AIKCA.
Dr.H.R.Venkatesha
Director
DIRECTORS MESSAGE
Acharya's Bangalore B-school5
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EDITORS MESSAGE
Acharya's Bangalore B-school 6
TECHNOLOGY is the order o
he day . ABBS is second to none in taking advantage of the same i
CADEMICS as well as other activities. It gives me lot of pleasure t
ssociate with the youngsters part of the ABBS Business Club t
ome out with a E- magazine. In todays world, it is not on
mportant to indulge in new activities but also share the knowledg
ith others in similar fields. This forum of E-magazine undoubted
ill help in showcasing the talents of our young students. We should
ver a period of time , keep a track on the number of viewers whicked and read our E- magazine .
We should encourage all the students to contribute some article
ther than a few people writing again and again. We should als
ncourage students and faculty members to write on topics and area
hich are relatively unheard of . We should also benchmark wit
ome of the best E-magazines. Quality with the use of Technologan certainly take this E-magazine to greater heights in the future.
wish all the youngsters and this E-magazine a grand success.
rof L.R.S. Mani.
ditor
EDITORS MESSAGE
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Education isn't just about learning within
the four walls of a room. Learning is by doing it and experiencing
it- that's certainly more enriching.
We, at ABBS, are proud to have ABBS Business Club for our
students. ABC is an integral part of department of ManagementStudies at ABBS. It exists to provide students with an
opportunity to continue their education outside the classrooms.
Choosing to be involved is a great way to enhance social,
interpersonal, problem solving and many other important life
skills. ABC gives a platform for leadership development
opportunities, developing artistic expression and creativity of
the young minds, community building efforts, promotes
coordination and cooperation among students.
"Work Hard, Play Hard" experience an enriching, vibrant and
active campus life through the activities organised by the club.
Prof. Puneeta Goel
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EDITORS NOTE
STAFF EDITORS
Prof L.R.S Mani.
Prof Puneeta Goel.
STUDENT EDITORJerry John
CO- EDITORS
Apoorva Asthana
Vineeth.R
COMMITTEE MEMBERS
Ginu.M.koshy
Sachin.N
Rinnoy Raghav
Narayanan.V.S
Rahul vijayan
Jithin Raj
Arun Mohan
Alex Puthur
LAYOUT
Faisal A V
Ashok Antony Prakash
Jishnu Sai.M
Siraj R
Acharya's Bangalore B-schoo
8
An E-Magazine alias electronic magazine i
by and large understood as a customary
publication on some particular topidisseminated in digital form, chiefly via the
World-Wide Web, by electronic mail o
floppy/CD/DVD disks. It is generally an
electronic counterpart to a print subscription
or the lone publishing method. It is a nove
venture in the realms of erudition and
technology. Acharyas Bangalore B-School iproducing an e-magazine
AIKCA 2011. (Acharya's Integrated
Knowledge creation & Accumulation)
It is my utmost pleasure to be the editor o
the e-magazine. I was crammed with anxiety
and stress, but I knew the novelty of thecreation and enjoyed throttling it to the full
When I look backI feel that being the edito
of the e-magazine was the most noteworthy
thing I did in Acharya, if not in my life. I am
overwhelmed with gratitude for all who
trusted the job on me; and gave me an
opportunity of a lifetime. I cannot forget thesupport I received from the management
our Director, Dr.H.R. Venketesha, teachers
friends and above all the Omnipotent.
Dear allI give you AIKCA.
Thank you.....
ABOUT A.I.K.C.A - 2011
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Over the past decade
Acharyas Bangalore B-
school (ABBS) has been
educating young minds in
management, health
science, biotechnology and
commerce. ABBS has been
ranked as 5th best emerging
B- school of India by
Business Barons in their
October 2009 issue. [Dainik
Bhaskar group] a leading
publishing house, has
ranked ABBS as the 21th
best B- school in India
(Carrier 360) & 3rd top B-
School, in Bangalore.
Business India, in their best
B-school survey in October 2011
ranked ABBS as A+ category
B-school. MBA program offered
by ABBS is affiliated to Bangalore
University and recognized by
AICTE, New Delhi. The group also
offers autonomous PGDM
programs approved by AICTE.
Acharya is one of the few finest
B- Schools in India that has taken
an initiative in creating newknowledge and disseminating it
through conferences, seminars
and workshops.
Sreelath
HR manage
charya's Bangalore B-school
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You have the power
to make me feel unique and
intelligent
when I feel I can no longer
live up to my expectations
You have the powerto give me courage and hope
when I am disillusioned, and
no longer
have the strength to believe in
my convictions.
YOU My colleagues- My Friends
Have given directions to my
thoughts
Have restored my faith in
mankind
Have given me reason and
hope
To endure, to feel and above
all to live
Acharya's Bangalore B-schoo
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MICRO ATMs FINANCIAL
EXCLUSION TO
INCLUSION
Prof.M.Muthu Gopalakrishnan
Tremendous progress hasalready been made by banks
towards financial inclusion.
However, it is estimated that a
large number of urban and
rural poor still lack access to a
basic bank account which is an
important first step towards
financial inclusion. It has now
become a national priority to
rapidly accelerate progress
toward financial inclusion and
ensure safe, secure, sound,
efficient access to basicfinancial services for all
residents. Kofi Annan, Former
UN Secretary-General stated
that most poor people in the
world still lack access to
sustainable financial services;the great challenge before us
is to address the constraints
that exclude people from ful
participation in the financia
sector. Together, we can and
must build inclusive financia
sectors that help people
improve their lives
According to the World Bank
today, more than 50 percen
of humanity is financially
excluded and over one billion
people live below the poverty
line of US$1.25 a day (2007)Inclusive growth or overal
growth or social inclusion is
the attracting economic
problem now. Thus the
Developing Nations aim at -
Financial Inclusion
Social Inclusion
Inclusive Growth
Sustainable growth
This paper aims a
discussing the financiainclusion through the
micro ATMs which is the
fundamental to achieve al
other objectives stated
above.
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inancial inclusion
The delivery of financial services
at affordable costs to sections
of disadvantaged and low
income segments of society.As banking services are in the
nature of public good, it is
essential that availability of
banking and payment services
to the entire population
without discrimination.Financial Inclusion is about
creating financial systems that
support all people, so they can
create their own wealth and
better manage their funds. To
succeed, it is the key that
financial services are delivered
via a secure, convenient,
reliable and affordable
channel which provides:
o Easy access to products such
as no-frills accounts, micro-
insurance, governmentbenefits
o A timely way to make
repayments for micro-loans or
micro-credit
o The ability to make small
savings
Though financial inclusion is the
prime objective of public
policy, the term "financial
inclusion" has gained
importance since the early2000s, and is a result of
findings about financial
exclusion and its direct
correlation to poverty.
March towards FinancialInclusion
Nationalization of
Commercial Banks (1969
& 1980)
Establishment of RRBs
(1975) Branch Expansion
Micro Finance
Micro Insurance
Self Help Groups
The statistics stated above in
this paper shows the
actual picture of the
financial inclusion in India
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o the above efforts have not given
the desired result and there are
so many people stay outside the
financial system which results in
financial exclusion and needs
attention to devise some method
for reaching the financialinclusion.
Back ground for Micro ATMs
As stated in introduction, it has now
become a national priority to
rapidly accelerate progresstoward financial inclusion and
ensure safe, secure, sound,
efficient access to basic financial
services for all residents. Towards
this end, a UID-enabled
micropayments system is being
conceived, which will be basedon networks of agents managed
by banks. These agents will
perform financial transactions
using micro ATMs. A variety of
financial services can be offered
once a UID-enabled
micropayments platform is
available throughout the country.
Several last mile collection
problems can be solved with the
micropayment device; for
example, interest payments for
micro-finance loans, premiums
for micro-insurance policies,
contributions to micro pensions
accounts, investments in micro-
mutual funds. Likewise, payouts
can be made through the same
infrastructure as well. A
committee consisting of IBA,
(Indian Banks Association),UIDAI, (Unique Identification
Authority of India), NPCI,
(National Payments Corporation
of India), IDRBT, (Institute for
Development and Research in
Banking Technology), RBI
(Reserve Bank of India) and
various banks was created to
define the specifications and use
cases of this device. The micro
ATM device was originally
described at a high level in a
vision document by UIDAI titled
From Exclusion to Inclusion with
Micropayments. It is meant to
be a device that is used by a
million Business Correspondents
to deliver basic banking services
at the last mile.
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First Job? Keep a Positive Image
Jerry John
MBA, PGDM
(3rd semester)
For studies based on academic aptitud
tudents may opt for engineering, medicine, finance o
dministration. Those who do not have the capability and aptitud
will discontinue studies at the graduate level or below and may g
nto family business or small jobs or be self-employed. Student
aving a good academic performance, aptitude and capability ma
lan their careers in line with corporate sectors and accordingly finis
tudies with post-graduation. If one wants to go purely in to academ
hen he may go for a doctorate degree also. A few may pursu
ourses like animation, short term computer courses and courses lik
Nursing, Education etc.
After you finish your studies, and school and college is way behin
ou, you realize that there is far more to life and success than jusrades. So you will find that those who were the top graders i
ollege sometimes do poorly in the work world and those wh
erhaps scraped through are the ones who shine.
n the real world of work the great emphasis at the entry point an
he lower rungs is on technical skills. As one goes higher up th
adder, one needs to go beyond technical skills which are given. Yoeed to have a large dose of human skills in addition. And then ther
re those very few perhaps 15 percent of the population in th
ompany, who would have developed conceptual skills. This is th
bility to look at the whole picture to have a helicopter view. To se
ow one decision will affect not just him or his department but th
whole company and then perhaps the whole industry. These are theople who make it to the top.Acharya's Bangalore B-schoo
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hey finally become president and CEOs of companies. Of cours
here may be some exceptions. There are those who get there b
uile, deceit, fraud or influence or by climbing on the backs of other
with spiked shoes. But these are still the exceptions.
herefore, young people must know even before they venture into th
work world that there are six basic principles of business etiquett
which have been enunciated by management experts as th
oundation for good human relations in corporations and in societ
hese six key etiquette rules will improve your business etiquett
uotient and help you to get ahead in whatever job you do or aspir
o. These rules benefit people at all levels from administrativ
ssistant to manager to vice president to CEO. And in all sizes o
ompanies, whether it is a corporation of 50,000 employees to
usiness of your own which you run from your house. And these rule
pply beyond the corporate world also, to professionals like doctor
awyers and self employed entrepreneurs. And what are the s
rinciples?
e on time be punctual by sensibly scheduling appointments. Its thttle things that add up. Show respect for other peoples time an
heir own pre-occupations.
e discreet So that you are sensitive to the impact that informatio
might have on those working with it, as well as what the competito
might do if they find out.
e courteous, pleasant and positive and this is irrespective of thressures on you or your company. Spread joy and cheer to lighten u
he environment.
e concerned about others, not just your self peoples caree
nded, stalled or reversed because they lacked that concern fo
thers.
charya's Bangalore B-school
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Acharya's Bangalore B-school 17
THE IMPACT OF MONETARY POLICY.
Prof. Nila.Chotai
Economic activity generally follows a cycle increase
ctivity in terms of output and employment, followed by decreased activit
ountercyclical policies act to promote or support growth and employmen
hen the activity is at low ebb and vice versa. The objective is to achievalanced and sustained economic activity over time, preventing advers
atures like high inflation, and fiscal and current account deficits. Therefor
olicies also follow a cycle, a tightening phase followed by an easing phase.
dia, the current operating procedures of monetary policy using the thre
ajor instruments of policy, namely, repo rate, reverse repo rate and the cas
serve ratio, were initiated since early 2001.
will be interesting to see how the policy cycles have behaved since then.e consider increases in one or more rates of the above three majo
struments as a tightening phase and decreases in rates as an easing phas
nce April 2001, the periods fall into four phases, two phases each of easin
nd tightening.
ASING AND TIGHTENING PHASES
he first period Phase I runs from April 2001 to August 2004, an easing
hase; Phase II from September 2004 to September 2008, a tightening phase;
hase III from October 2008 to January 2010, an easing phase; and the Phase
from February 2010 till date which is a tightening phase. As monetary policy
ms at maintaining price stability and supporting growth, an easing phase
presents larger emphasis on growth and a tightening phase represents
eater focus on containing inflation.
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Acharya's Bangalore B-school 18
he intensity of easing or tightening can be gauged by the extent of th
crease in rates in a given cycle, as also from the duration of the cycle (se
raph). In phase I, CRR was reduced from 8 per cent to 4.5 per cent, the rep
te from 8.75 per cent to 6.0 per cent, and the reverse repo rate from 6.75 pe
ent to 4.50 per cent. For the sake of brevity, if we combine the rate change
to a single figure, it is revealed that the combined decrease in rates was 85asis points in Phase I.
n a similar basis, Phase II witnessed a combined increase of 900 basis point
atching the first phase. Phase III coinciding with the crisis resolution phas
w a combined decrease of as much as 1100 basis points, all rates touchin
eir historical lows. In phase IV, since February 2010, a continuing tightenin
hase, the combined increase has so far been 450 basis points.
What about the duration of the cycles? Phase I lasted for 41 months, II for 4onths. The easing phase III lasted only for 17 months, but that is because th
covery from the impact of the global crisis was faster, and inflationar
essures surfaced quickly. Based on the earlier evidence, it seems that th
urrent phase of tightening may last for at least another year. But it may go o
r longer, depending upon the vulnerability of Indian economy to domest
nd global destabilizing factors. The current phase has the added risks of hig
flation, widening current account deficit and fiscal deficit. Any extraordinariccommodative monetary policy, supportive of the growth momentum ma
nd up in very high inflation with unsustainable external sector balances.
UTPUT, INFLATION RESPONSES
surprising result is that no particular relationship could be establishe
etween the policy rates, money supply and inflation based on consumer pric
dex (CPI). The average monthly year-on-year CPI inflation seemed to hav
ccelerated in a secular fashion from 3.9 per cent in phase I to 5.9 per cent ihase II and to 11 per cent and 12 per cent in subsequent phases (see Table
kewise, M3 growth showed no particular relationship.
he output response was also the response of inflation based on wholesa
rice index (WPI), seemed to have performed as expected to easing an
ghtening cycles, but with a lag.
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Acharya's Bangalore B-school 19
he easing first phase caused the quarterly average year-on-year growth rat
pick up significantly from 4.9 per cent to 9.0 per cent in the second phase
e tightening during the second phase had caused the average rate of growt
decline to 7.6 per cent in the third phase; and the easing in third phase ha
ontributed to the higher growth rate in phase IV at about 9.0 per cent tate. Similarly, the easing phase I pushed the WPI inflation rate to 5.8 per cen
phase II from 4.4 per cent, but the tightening phase in phase II was followe
y low WPI inflation of 3.8 per cent. The easing phase of III has now bee
llowed by an average WPI inflation of 9.7 per cent, thus far in the st
nning in phase IV.
OLICY IMPLICATION
hough these inferences are very crude and subject to more rigorous tests, on
n broadly conclude that while monetary easing and tightening seem to hav
mpacted growth and WPI inflation with a lag, any containment of CP
flation, which is more amenable to supply and external shocks, wou
quire enduring supply responses of wage goods and improvements i
stribution.
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Acharya's Bangalore B-school 21
CREATE A CHANGE WITHOUT ANY CHANGE
Roshni choubey
MBA (1st semester)
me is something, which always goes on changing but within certain
mits. This poem reveals human behavior correspondent to time and
mes natural phenomenon.
ere, Time is addressing to people and saying that
am kinetic
etaining my potential,am magnetic
ersisting to functional
warded!
stonished!
o what.?
will run with same velocity,hatever the reaction may be.
erceptions have dividends,
-one, certainly wet accidents.
am not destined to rush,
either i made to be hush,
o competition with anyone,ne-dimensional and canon.
am frequent with same interval,
as never gone any formulation, any renewal.
till
ariation has its own pare with range.
ust.
reate a change without any change.
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Acharya's Bangalore B-school 22
GREEN CONSUMERISM
Prof. Priya Vinod
The consumer movement is an important potential influence o
he marketing of almost any product. It is now widely accepted tha
ocieties, economies and the businesses within them need to find
ore sustainable path for future development. Achieving this wi
volve saying some very new things about marketing and perhapediscovering some of the fundamental truths. Marketing ha
ontributed to the recently happened environmental crisis, because o
s central role as a driving force behind the unsustainable growth i
onsumption or what could be termed over consumption. Marketin
s it will become, by contrast, will become part of the solution. Th
ill require the marketing of new, more sustainable produceroducts, companies, new life styles, new values and new idea
reen consumerism means a great deal more than simply changin
ver from earth-bashing product to a slightly more environmental
ensitive one. It means questioning both, the nature and volume o
onsumption. Green Consumerism creates a balance between th
xpectations of consumer behavior and businesses profit motivesithin the orbit of environmental protection. The concept of gree
onsumers also focus on businesses, and their survivability as the
espond quickly to demands of consumers for products and service
hat are also environmental friendly. This article deals with the gree
roducts, responding to the green consumer, the future of gree
onsumerism and its implications.
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Acharya's Bangalore B-school 23
REEN CONSUMERISM/SOCIALLY CONSCIOUS CONSUMERISM
reen Consumerism can be described as the use of individua
onsumer power to promote less environmentally damagin
onsumption, while satisfying customer needs. It means makin
onsumption decisions based on environmental concerns. Its with
reat deal between the nature and volume of consumption.
McDonough(1994) examines what green means within the contex
f advertising, and concludes that for different people green wi
elate to one or more of the components .
he term Green Marketing does not have a universally consisten
eaning .But in certain countries like UK it has become very populaso.
HARACTERISTICS OF A GREEN PRODUCT
green product should not
Endanger the health of people or animals
Involve the unnecessary use of cruelty of animalsDamage the environment at any stage of its life, includin
anufacture, use, and disposal.
Consume a disproportionate amount of energy and other resource
uring manufacture, use, or disposal.
Cause unnecessary waste, either as a result of excessive packagin
r a short useful life.Use materials derived from threatened species or environments.
YPES OF CONSUMERS IN GREEN
Grey Consumer
Economical Consumer
Doubtful and Confused
Green Consumer
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Acharya's Bangalore B-school 24
OMPETITIVE ADVANTAGE OF CONSUMERS IN GREEN
firm offering green products can derive competitive advantag
ther from having a cost advantage or from having a value advantag
r even a combination of two. Cost advantage means that firms ca
roduce and distribute a lower cost than their competitors. Valu
dvantage means that the firm is able to offer a product, whicherceived to provide differentiated benefits to customers it ha
reater added value.
ESPONSE OF A COMPANY TO GREEN
hese days companies are incorporating an environmental ethic int
heir operation. The main reason behind this change is the growin
ublic awareness of the environmental degradation that has resulte
s a consequence of the growth in population and natural resourc
onsumption throughout the world. The response of a company t
reen consumers within its market will depend on a number o
ctors. The main four E-factors are
Easy- makes it easy for customers to be green
Empower customers provide them with solutionsEnlist the support of the customers
Establish credibility with all the stakeholders of the business t
uard against any form of backlash.
UTURE RELATED ISSUES IN GREEN
Globalization : Transboundary effect and free trade have bot
advantages(efficiency,profits,opportunities,demand)and
disadvantages ( unemployment , footloose companies ,weake
controls , unfair trade , small scale loses out ) etc.
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Acharya's Bangalore B-school 25
ealth: A sentry life style combined with healthy impacts o
nvironmental pollution and emissions, use and abuse of pesticide
nti- biotic etc.
Population and Consumption: Population increase, agin
opulations, consumption patterns living beyond means etc.
Energy: Every source of energy has an environmental impac
nergy efficiency is not just technology, but also cutting back
Water: Water use is increasing at twice the rate of populatio
crease. Much can be done at the individual level.
Chemicals: Use of pesticides and hazardous chemicals. Ozon
epleting chemicals, hormone disrupting chemicals have long term
ffects on human health and well being
Genetic engineering: Includes many ethical and moral issuecluding misinformation. Not that genetic engineering is bad- but th
onsumer should given the choice
Natural World: Considerable pressures put on the natural world du
o population increases and rise in consumption. Human consume
0% of all plant growth.
Ethics: The treatment of other people issues of gender, childrennimal welfare, ethics of cloning, fertility etc.
0. Fair trade: Need to look into working conditions (Child; labour, low
ages. long hours, lack of safety, mass production v/s craft industries
ONCLUSION
he consumer movement is an important potential influence on th
arketing of almost any product. Consumerism stresses the need tet ever more consumption out of a given amount of money, whil
he green movement stresses the need to reduce consumption. Eve
he basic principles of consumerism have been amended t
ccommodate environmental issues. Green consumerism an
nvironmental marketing is likely to evolve in three phases namely
ubstitution, systematization, and social change, during which it wi
prout, grow and finally blossom.
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Acharya's Bangalore B-school 26
FORGIEN INVESTMENTAshok Antony Prakash.
MBA (1st semester)
Union Cabinet approves
1% FDI in multi-brand retail
It has been almost Five
onths since a committee of
ecretaries chaired by Cabinet
ecretary Ajit Kumar Seth Cleared
Proposal to allow 51% FDI in
ulti-brand retail in the last weekf July. The government already
ermits 51% FDI in single-brand
etail and 100% FDI in the whole
ale cash and carry segment. Until
he first week of August, sources
the commerce ministry wereonfident that the commerce
inistry were confident that the
government would implement th
new policy by the month end.
Then the government was hit by
the storm called Anna Hazare.
Commerce and industry Minister
Anand Sharma was circumspect
When speaking on the issue in the
Rajya Sabha during the monsoon
session. Policy formulation is a
calibrated exercise, he said and
assured Parliament that an early
and appropriate decision would be
taken. The Department ofIndustrial and Planning, a
constituent unit of the Ministry of
Commerce and Industry
responsible for framing FDI policy,
had commissioned think-tank
Indian Council for Research onInternational Economic Relation to
do an extensive study on the
impact of organized retail. The
Report was submitted to the
department three years ago in
2008. The study was clear thatorganized retail would be of
greater benefit to both consumers
and farmers. The Latter would get
a better price for their produce.
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Acharya's Bangalore B-school 27
Consumers would benefit from
ower prices as the
cascading commissions of
ntermediates would be
liminated. The report was frank
n acknowledging
that there would be an adverse
mpact on Kirana
stores that were in the vicinity of
he new big retailers. However the
tudy did not see any adverse
mpact on overall employment in
he economy.
After that a lengthy list of
onditionality's was put
orward at the Committee of
ecretaries. The foreign
nvestors would be required to
nvest at least $ 100million. 50% of that investment
would have to be
committed to building back-end-
upply chain.FDI in
retail would only be permitted in
ities with apopulation of over 1 million
people. At least 30% of
goods would have to be sourced
rom local producers.
At least 30% of sales would have
o be small tradersat the whole sale level. The
onditions on sourcing
from local suppliers could also fa
foul of Indias
WTO commitments. The
condition on backend
investment is restricted to those
retail chains that
will sell agricultural produce
What about those that
sell electronics? The $ 100 million
minimum
investment will also require a
domestic Partner to
invest just under that amount in a
51-49 joint ventures. That would
work out to a significant sum of R
400 crore. Existing Big Indian reta
firms, many of which continue to
struggle to make profits, may look
at this opportunity to tie up withforeign Partners.
Now since the cabinet has
approved 51% FDI in
multi-brand retail and raised
single-brand retail from
51% up to 100%;The Foreign retagiants like Teso,
Wal-Mart and Carrefour would
like to get the taste of the $450-
billion retail Indian Market.
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Positive Work Behavior - The Need at the Time of Threa
DILIP ISRANI
MBA (1st semester)
Economic recession, global slowdown, abrupt and painful caree
erminations, salary cuts... This stark, dismal scenario
nfortunately, not a figment of imagination or a phantom of fear.
as something very real and tangible, feared and faced by many
rofessional in the recent past. The euphoria of having landed in goo
bs with five digit salaries and innumerable perks and a feeling of
ave it all", once, not so long ago, belonged to many professionalonservative economists and HR people did warn of the danger of th
urst of the 'bubble of joy' in the field of international jo
pportunities, but this warning went in vain. Tragedy struck, and how
uphoric people now are full of 'termination' and 'redundancy' woes.
he painstaking process of grooming oneself to become successful i
terviews did yield fruit in the form of good jobs all over the globallage. But then, having had to face the deadly blows of 'termination
r 'redundancy', the painful process of regaining a job and sustainin
ne's self in the profession by retaining the job has become a grea
hallenge. This 'job sustenance' is of great significance, for this is no
he pain of not having a job where, in such cases the 'hope' an
robability of 'finding a good job' has a spark to it , ready to becomames of success - but the challenge of holding on to what is alread
possession one's 'success' and 'achievement'. There is also th
oming threat of losing face, losing confidence, losing a marriage
sing friends; losing a house the list can go on. We cannot forge
asily, the tragedies of such distressed youngsters resorting t
esperate face-saving measures. Questions like, "Will I be dumped?
Will I be next?" "Will my salary be cut?""Won't they spare me?"28
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When the persons who joined along with me have been retained
hy have I been dumped?" "Why me?" "What is it that the other
ave done that I have not done?" plagued the minds of many, in th
ecent past.
ow, the atmosphere is sanguine; fresh starts are in the offing; the jo
cenario looks promising. The questions that should now be in th
inds of job seekers both fresh and experienced are slight
fferent from those that they sought answers for, a couple of year
efore: "How can I retain my present job?" "What can I do, to clim
urther up the ladder?" "How do I become indispensable?" "How can
ecome a successful professional?
Well. The scene may appear tough and challenging, strong anhwarting. But salvation is not as futile or as unattainable as
ppears. The way out of this quagmire is, maybe, to do a bit o
trospection, analyze one's achievements and failures, find out one
rengths and weaknesses, learn about the lurking or eviden
hallenges that will accost one in the scenario and equip onese
ccordingly, to face these challenges and surface successfully. In thMarket, Jobs are there, but what makes others feel uncomfortable
hat they are becoming conscious while seeing the rejection of th
mployees by the employers for their bad performance at the job, bu
hey should make themselves in such a positive attitude towards jo
nd keep learning continuously so as to become successful and serv
he organization. Such introspection will definitely reveal that at thoot of success, lies 'Positive Work Behavior'. 'Positive work behavio
not an isolated term. It is an umbrella, which has under it,
ethora of behavioral requisites, each one of which is a majo
ontributor to success stories in any field of work. Once the spirit o
his positive work behavior is savored and abided by, sustenance i
ny given field can well be assured. The essence or the ABC's of
Acharya's Bangalore B-schoo
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ositive Work Behavior are listed below:
Act: Don't just be a talker. Be a performer.
Be bold: Try what others simply won't do. This sets you apart from
hem.
Choose confidence and calmness as your constant companions.
Dare to do things differently and become a winner.
Employ skills that will prompt you to take up and meet challenging
asks.
eel that every moment is to be fruitfully spent.
Guide your juniors along the right path. You'll become much sought
fter at work.
Handle situations with empathy and concern.
ntertwine integrity, impeccability and involvement. They are your
reatest virtues
udge judiciously, whether to be or not to be.
Kill ego and 'I'm holier than thou' attitude. This will endear you to all
earn to manage time and stress, for these two can otherwise kill.
Never say 'No' to responsibility and never take 'No' for an answer.
Orient yourself towards your project, your organization and your
oal.
Prioritize your work. Have a work plan and complete work as per the
chedule'
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Acharya's Bangalore B-school 31
Reason out difference of opinion and be ready to adjust.
Say 'No' to office politics and low quality work.
Think, Live and Work TEAM. Team work and time bound operations
re assets.
Use time fruitfully and effectivelyValue people be humane and show people that you really care.
Win people over with your ideas and readiness to help.
Xenophobia is a big 'No'. Embrace new and foreign things with an
pen mind!
Yoke together intent, action and good sense.
Zeal, enthusiasm and passion for your work will make you an assetmong your peers.
When such behavioral attributes form part of one's Positive Wor
ehavior, he or she becomes an asset to any organization. Any numbe
f such attributes that can make one indispensable in the work plac
an be added to mean Positive Work Behavior. Adhering to th
ctates of Positive Work Behavior will make sure that N
rganization can think of carrying on without YOU!
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WORK SHOP BY FELTON
LEAN
UDAAN DIGNITARIES AT CLUB INDUCTION
ROY HEFFERNAM GIVING BADGES TO
CLUB EXECUTIVES
PETER INGRAM
INAUGRATING THE ABC
CLUB
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Retail industry in Indiawhere are we heading???
Kumari Nisha
MBA (1st semester)
The Indian Retail Industry is the largest among all the industrie
ccounting for over 10 per cent of the country GDP and around 8 pe
ent of the employment. The Retail Industry in India has come fort
s one of the most dynamic and fast paced industries with severa
layers entering the market. The total concept and idea of shoppinas undergone an attention drawing change in terms of format an
onsumer buying behavior, ushering in a revolution in shopping i
ndia. Modern retailing has entered into the Retail market in India a
s observed in the form of bustling shopping centers, multi-storie
malls and the huge complexes that offer shopping, entertainment an
ood all under one roof. A large young working population witmedian age of 24 years, nuclear families in urban areas, along wit
ncreasing working women population and emerging opportunities i
he services sector are going to be the key factors in the growth of th
rganized Retail sector in India. In India the vast middle class and it
lmost untapped retail industry are the key attractive forces for globa
etail giants wanting to enter into newer markets, which in turn wielp the India Retail Industry to grow faster.
HE INDIAN RETAIL SCENE.
ndia is the country having the most unorganized retail marke
raditionally it is a familys livelihood, with their shop in the front an
ouse at the back, while they run the retail business. More than 99%
etailers function in less than 500 square feet of shopping space.Acharya's Bangalore B-school 33
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lobal retail consultants KSA Techno park have estimated tha
rganized retailing in India is expected to touch Rs 35,000 crore in th
ear 2005-06. The Indian retail sector is estimated at around R
00,000 crore, of which the organized sector accounts for a mere 2 pe
ent indicating a huge potential market opportunity that is lying i
ont.
urchasing power of Indian urban consumer is growing and branded
erchandise in categories like Apparels, Cosmetics, Shoes, Watches,
everages, Food and even Jewellery, are slowly becoming lifestyle
roducts that are widely accepted by the urban Indian consumer.
dian retailers need to advantage of this growth and aiming to grow,
versify and introduce new formats have to pay more attention tohe brand building process.
here is no doubt that the Indian retail scene is booming. A number o
rge corporate houses, with beauty and health stores, supermarkets,
elf-service music stores, new age book stores, every-day-low-price
ores, computers and peripherals stores, office equipment stores and
ome/building construction stores. Today the organized players havettacked every retail category. The Indian retail scene has witnessed
oo many players in too short a time, crowding several categories
ithout looking at their core competencies, or having a well thought
ut branding strategy.
TRATEGIES, TRENDS AND OPPORTUNITIES
etailing in India is gradually inching its way toward becoming theext boom industry. The whole concept of shopping has altered in
erms of format and consumer buying behavior, ushering in a
evolution in shopping in India. Modern retail has entered India as
een in sprawling shopping centre's, multi-storied malls and huge
omplexes offer shopping, entertainment and food all under one roof
he Indian retailing sector is at an inflexion point where the growth o
rganized retailing and growth in the consumption by the Indian
opulation is going to take a higher growth trajectory.'
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he Indian population is witnessing a significant change in its
emographics. A large young working population with median age of
4 years, nuclear families in urban areas, along with increasing
orkingwomen population and emerging opportunities in the service
ector are going to be the key growth drivers of the organized retail
ector in India.
ROWTH OF RETAIL SECTOR IN INDIA
etail and real estate are the two booming sectors of India in the
resent times. And if industry experts are to be believed, the
rospects of both the sectors are mutually dependent on each other.
etail, one of Indias largest industries, has presently emerged as one
f the most dynamic and fast paced industries of our times witheveral players entering the market. Accounting for over 10 per cent o
he country GDP and around eight per cent of the employment
etailing in India is gradually inching its way toward becoming the nex
oom industry.
HALLENGES & OPPORTUNITIES
etailing has seen such a transformation over the past decade that itsery definition has undergone a sea change. No longer can a
anufacturer rely on sales to take place by ensuring mere availability
f his product. Today, retailing is about so much more than mere
erchandising. As the Indian consumers evolve they expect more and
ore at each and every time when they step into a store. Retail today
as changed from selling a product or a service to selling a hope, anspiration and above all an experience that a consumer would like to
epeat. Retailing in India is currently estimated to be a US$ 200 billion
dustry, of which organized retailing makes up a paltry 3 percent or
S$ 6.4 billion For retail industry in India, things have never looked
etter and brighter. Challenges to the manufacturers and service
roviders would abound when market power shifts to organized
etail.
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ONCLUSION
he retail sector has played a phenomenal role throughout the world
increasing productivity of consumer goods and services. It is also
he second largest industry in US in terms of numbers of employees
nd establishments. There is no denying the fact that most of the
eveloped economies are very much relying on their retail sector as a
comotive of growth. The India Retail Industry is the largest among
l the industries, accounting for over 10 per cent of the countrys GD
nd around 8 per cent of the employment. The Retail Industry in India
as come forth as one of the most dynamic and fast paced industries
ith several players entering the market. But all of them have not yet
asted success because of the heavy initial investments that areequired to break even with other companies and compete with them
he India Retail Industry is gradually inching its way towards becomin
he next boom industry.
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Acharya's Bangalore B-school 38
INDIA IN 2020...
Vineeth.R. & Sachin.N
MBA (1st semester)
INDIA will be a developed country? I want to live in a
eveloped INDIA. I am quite sure that, there are millions, in our
ountry having the same aspiration as mine.
r.A.P.J. Abdul kalam, in his one of speeches elaborates the concept o
INDIA-VISION 2020,which the whole country is waiting for.
Transforming the nation into a developed country, certain areas in
ombination have been identified based on Indias core competence,
atural resources and talented man power for integrated action to
ouble the growth rate of GDP and realize the vision of developed
dia.
That sectors that helps in growth of India are:
MANUFACTURING SECTOR: India stands to gain enormously byoupling of computers and manufacturing process. Mass production
or masses became the bases of new business strategies.
In 2010,in engineering industries ,60% of machine tools produces
ill be CNC ( Computer and Numerically Controlled)
By 2020, 80% of machine tools produced will be CNC.
By 2020, India will be leading producer or exporter of casting andorging and will be self sufficient in advanced machine tools and
oilers.
NFORMATION-TECHNOLOGY SECTOR: The Indian IT industry account
or 5.19% of countrys GDP.
On 2010-2011, annual revenues from IT, BPO sector is estimated to
ave grown over US $ 54.33 billion. Indias outsourcing industry isxpected to increase is to US $225 billion by 2020.
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Acharya's Bangalore B-school 39
EALTH CARE SECTOR: The Indian health care sector is to reach US $
20 billion by year 2020, there by contributing an expected GDP of 8%
y 2012 from 5.5 %in 2009. The Indian health care industry will reach
he market value of US $ 280 billion by 2022.
Among the worlds 10 richest people, four are Indians. On
he other side, 17 million Indian children work as laborers.
dias economy is galloping around 7% GDP growth. But also, 2
illion children die before their first birthday due to lack of
mmunization and medical facilities!
till, we have a dream . Dream of a developed India before the year020. A nation progress depends upon how its people think
specially the youths. Our population 1.21 billion people are, not a
urden, but they are our resources for this national transformation.
Let the young minds blossom
ull of thoughts.. thoughts of prosperity.
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MOTIVATION: A WAY TO RECOGNISE EMPLOYEESS EFFORT.
MALVIKA SINGH
MBA (1st semester )
Throughout ones career, recognition in workplac
nd in life is very important. We want recognition, we thrive on it an
makes us feel good. Yet most of us do not give or receive enough o
. Most of the employers or employees at various levels in differen
dustries have agreed that the most important things employee
anted are recognition. They want to be appreciated, applauded anecognized for the contributions they make in the company. Yet sad
ecognition is something most employees feel they don't receive - a
ast not often enough. Employee recognition is not just a nice thin
o do for people. Employee recognition is a communication tool tha
einforces and rewards the most important outcomes people creat
or business. Leaders know that the secret to success is being able traw out and encourage employees to be their best. Recognizing th
rengths and contributions of those around us and taking the time t
t them know how important they are is critical to organizationa
uccess. Human beings live and grow with praise. Most employees sa
hat they would love more money but what they want most is to b
ppreciated and recognized. Yet it is not happening in the workplaceWhy are we hesitant to give recognition? Why do we keep the positiv
hings to ourselves? Why do we believe recognition is someone else
b? The answer is very interesting; the following things preven
eaders to recognize their Employees
) Its scary. Giving recognition and praise is risky.
Employees might get a big head and stop working so hard. Th
pposite is actually true - employees will work harder when the
now they are appreciated. Acharya's Bangalore B-schoo40
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We don't have time. I know we are all busy but that's no excuse
e must make the time.
We don't know how to do it. There are thousands of resource
vailable. Google "employee recognition" and we will find lots o
formation to help us recognize the people we work with.
It is not our job. Recognition is management's job. Whil
anagement needs to recognize their employees but we all can mak
difference by recognizing and letting our co-workers know how
uch we appreciate them. Recognition is everyone's job!
We are not good with people. But we can learn - we all can. Atten
seminar, read a book and practice.
They will come to expect praise if we give it too often. We caraise people too often if we always keep it real. Fake praise o
ecognition will never work.
We don't see anything to recognize. Watch, listen and as
uestions. The best way to recognize others is to be a good observe
ll employees have some merits for which they can be recognized for
It is hard. Yes it can be hard and it takes time. Yet the rewards wiutweigh whatever time and effort it takes.
0) We should get it first. The best way to begin the cycle o
ecognition is to be the one to give it. Recognition is contagious - an
may just come back to us! Recognition takes time and commitmen
ecognition is a life long journey both in our professional and persona
ves. The better we are at recognizing others - the more excellence'll have in business and in life. As our day goes by, let's watch an
sten for ways to recognize our fellow employees & friends. Look fo
ays we can applaud, appreciate or affirm them. Take the job o
ecognition seriously and go make someone's day. Sometimes
mple ' thank you ' is just the encouragement someone needs. And a
ther times its just a 'smile'. Whatever it is - let's do something t
ecognize someone today.charya's Bangalore B-school
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Updated Technology increases Profitability of Business
Siraj R & Rinnoy .R
MBA, PGDM (1st sem)
Time and again, history has taught us that
he technologically superior win be it nations, civilizations,
dividuals or companies. The radio industry was booming till the
arly 1990s. But the mobile phone changed it all. Now, the radio
dustry is limited to only a few companies which are able to sell
n the content they offer, rather than the technology. It is alsopplicable for all types of machinery say mechanical, electrical,
ructural, and mining and many other inter-engineering
echnologies. Let us take the example of Automobiles. The engine
esign is modified several times over past few decades that
utomobiles from fuel guzzlers and comfort are now high speed,
omfort and give mileage as much as 25 kmpl. In elecricals the sizf the motors is reducing giving more feasibility of usage. In
ddition there could be seen major technological improvements i
eneration, transmission and distribution. The digital meters we
ee at our homes is a recent one in India. All these aim at more
fficiency, lesser space occupation and durability.
Structural engineering is improving
ontinuously and as a result you find improved roads, long
ridges, taller buildings etc. Again all are aimed at lesser cost,
more load bearing, more traffic lanes and if its a building then
more space to work for or live in. Mining is aimed at more output
hrough sophisticated machinery, safety factor and many othermprovements.
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The mobile is the perfect example of a
echnology which led a disruptive change among many industries
ompanies tried to win against this technology rather than among
hem. The businesses around digital camera, personal computer,
MP3 player, calculator all underwent a disruptive change. Many,
ke camera makers, forayed into digital medium with highesolution as their forte. Others like the digital and wrist watch
dustry were severely impacted with the advent of mobile
hone. Similarly, the snail mail industry and along with its mascot
he erstwhile ubiquitous postman lost his job, all thanks to email
nd the internet. Interestingly, it is in war time that nations invest
eavily in technologies to defeat each other. The most importantechnological innovation in present times dates their origin to the
old war era between the US and the Soviet Union. The ARPANET
ame into existence as an internal communication network for the
S department of defense, which was the first form of internet.
The worlds first search engine,
mailing technologies and instant messaging were also firstvented for the ARPANET (Advanced Research Projects Agency
etwork). Similarly, todays GPS (Global Positioning System) also
ates its origins to the US DoD. Google is an apt example of how a
echnological superiority can help overpower existing leadership.
oogle was a very late entrant in the search engine technology in
998. Many popular web search engines were already launchedke Infoseek, Webcrawler and Lycos in 1994, Altavista and Excite
1995 and AskJeeves in 1996. But Google captured the market in
st 4-5 years of it being launched, based upon the superior
gorithms and search technology. Similarly, the Apple iPod has
een able to capture the worldwide portable media player marke
ver other players like Zen, Samsung, based on superior soundnd storage quality. Acharya's Bangalore B-schoo
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Most technology companies, however, keep in mind the invention
f the integrated circuit in 1958, the number of transistors that
an be placed inexpensively on an integrated circuit has increased
xponentially, doubling approximately every two years. This led to
he advent of efficient, faster but cheaper computer chips,memory cards, hard drives, mobile phones, computers, basically
ny piece of electronic equipment you can imagine today. It has
ontinued in the last century and is expected to hold true for quit
ome time now. It will affect everything from wireless networks
nd undersea cable traffic to the amount of songs and videos you
an store on your handheld. Technology also forces existingaders to change their business strategy. For instance, the mobil
hone operators all over the world are shifting to IP technology
ecause of its disruptive nature. While operators themselves have
ecome ISPs, in India they are opposing the opening up of the
omestic internet telephony as it will drop the prices of call rates
rastically.
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Acharya's Bangalore B-school 45
Levis launches Green Jeans
-Vaishali Agarwal
Priyanka Agarwal
PGDM - I Sem.
We are already aware of Ethical value
fLevis. Long back it started the practice of arranging for educatio
cilities for poor children. It has come up with a new idea of GREE
EANS. Though theyre not the first "green jeans" to go on the marke
ut Levi's says its new eco jeans are the first fully sustainable denimom a major brand.
he trousers, which went on sale 2nd November, 2011 in 20 Levi
ores across the UK, are made with completely organic materials on
roduction line that uses sustainable production processes.
t's not only organic fabric but the other components are als
rganic; the finish we use is totally organic too," said Geert Peeterhe vice-president of product management. "The whole process o
ow the jeans are made is also organic."
he jeans are made with 100% organic cotton denim, have a coconu
hell button on the waistband and non-galvanised metal fly button
he indigo finish has been produced from potato starch, mimos
ower and Marseille soap. They are produced in a dedicated area ohe Levi's factory in Hungary, on machinery that has been special
eaned to comply with the certification process.
he process of designing the jeans and putting the processes in plac
o make them took six months from when Levi's came up with th
ea in May. You Nguyen, the senior vice-president of Levi's product i
urope, said it was a result of "zeitgeist research".
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Acharya's Bangalore B-school 46
We found more and more consumers were making product choice
ased on the environmental and social impact," he said. "They wer
etting interested in apparel made using sustainable productio
ethods, but they still wanted style and quality - it was no longe
ther/or.
While some environmentalists welcome the development of mor
reen goods, others argue that taking some of the guilt out o
hopping allows people to continue consuming at an unsustainabl
vel with a clear conscience.
Switching to organic cotton and reducing carbon emissions a
anufacturing will hopefully become the norm for the fashio
dustry," said Jessa Latona, the spokeswoman for the Centre folternative Technology which promotes sustainable living.
However, rather than running to the shops tomorrow and buying
ew pair of jeans, consumers could create their own eco wardrobe b
ecycling and reusing old clothes - getting creative with last season
ans rather than throwing them out.
This would be tackling the waste problem at source, by simpeducing what you buy in the first place.
Consumers have the power to change things - shops an
anufacturers are just meeting the demand from shoppers."
y coincidence, tomorrow is the annual Buy Nothing Day in the UK
hen consumers are encouraged to spend some quality time wit
heir family rather than hitting the high street.he campaign's website said the day "exposes the environmental an
thical consequences of consumerism".
ven with green jeans in the shops, for some, the mos
nvironmentally sound thing to do is to not go shopping.
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Proper use of Reports and Procedures
Pooja Singh & Faizal A.V
MBA,PGDM (1st semester)
Management by self-control requiresomplete rethinking concerning use of reports, procedures and
orms. Reports and procedures are necessary tools. But few tools
an be so easily misused, and few can do as much damage. For
eports and procedures, when misused, cease to be tools and
ecome malignant masters. There are three common misuses of
eports and procedures. The first is all too common belief thatrocedures are instruments of morality. They are not; their
rinciple is exclusively that of economy. They never decide what
hould be done, only how it might be done most expeditiously.
roblems of right conduct can never be procedural zed (surely) th
most horrible word in the bureaucrat conversely; right conduct
an never be established by procedure .he second misuse is to consider procedures a substitute for
udgment. Procedures can work only where judgment is no longer
equired, that is in the repetitive situation for whose handling the
dgment has already been supplied and tested. Our civilization
uffers from a superstitious belief in the magical effect of printed
orms. And the superstition is most dangerous when it leads usto trying to handle the exceptional, non-routine situation by
rocedure. In fact, it is the test of a good procedure that it quickly
entifies the situations that even in the most routine of
rocesses, do not fit the pattern but require special handling and
ecision based on judgment. But the most common misuse of
eports and procedures is as an instrument of control from above
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This is particularly true of those that aim
t supplying information to higher management, the forms of
veryday business life. The common case of the plant manager
ho has to fill out twenty forms to supply accountants, engineers
r staff people in central office with information he himself doesot need is only of thousands of examples. As a result his
ttention is directed away from his own job. The things he is asked
bout or required to do for control purposes , come to appear to
m as reflections of what the company wants of him, become to
m the essence of his job; while resenting them, he tends to put
ffort into these things rather than into his own job. Eventually,s boss, too, is misdirected, if not hypnotized, by the procedure.
A large insurance company, a few
ears ago, started a big program for the improvement of
management. To this end it built up a strong central-office
rganization concerned with such things as renewal ratios, claimettlement costs, sales methods, etc. This organization did
xcellent work at top management learned a lot about running an
surance company. But actual performance has been going down
ver since. For the managers in the field spend more and more
me filing out reports, less and less doing their work. Worse still,
hey soon learned to subordinate performance to a good showingot only did performance go to pieces, spirit suffered even more.
op management and its staff experts came to be viewed by the
eld managers as enemies to be out smarted or at least kept as fa
way as possible. Similar stories exist ad infinitum in every
dustry and in companies of every size. But, above all it is the
esult of the misuse of procedures as control.
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One of the leading company presidents
ells the following story on himself. Fifteen years ago he bought
or his company a small independent plant in Los Angeles. The
ant had been making a profit of $250,000 a year; and it was
urchased on that basis. When going through the plant with thewner who stayed on as plant manager, the president asked: How
o you determine your pricing? Thats easy the former owner
nswered we just quote ten cents per thousand less than your
ompany does. The next question was, how do you control your
osts? Thats easy was the answer; we know what we pay for raw
materials and labor and what production we ought to get for themoney. The final question was how you control overheads. We
ont bother about it was the answer. The president they can
ertainly save a lot of money here by introducing thorough
ontrols. But a year later the profit of the plant was down to
125,000; sales had remained the same and prices had remained
he same; but the introduction of complex procedures had eatenp half the profit.
Reports and procedures should be kept
o a minimum and used only when they save time and labor. They
hould be as simple as possible. With the advent of system
omputerization to certain extent rationalization is inculcated
hereby unnecessary reports and procedures are automaticallyontrolled.
'
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ETHICAL VALUES FOR BUSINESS SUCCESS
Alex Puthur & Arun Mohan
MBA (1st semester)
Ethics is based on a set of moral and ethica
alues. These values must be absolute - that is, you must take them
eriously enough to override any human rationalization, weaknes
go, or personal faults. When all else fails, you will always look bac
o these core values to guide you. Unfortunately, life is not that eas
nd there is always disagreement about what values should reig
upreme. Luckily, in the world of business ethics, your employer help
ou. In a nutshell, their values are your values (in the context oork). Your freedom to choose your own ethical values is somewha
mited. Considering the rash of corporate scandals these days, th
hought of following the corporation's values might not be to
omforting. Problem: Whose or what values can you trust? Loo
ehind successful, honest businesses and you will see a set of value
hat have stood the test of time. Think about how these values arommunicated in your organization and what you can do to suppo
hem.
onesty. The old adage, "honesty is the best policy" is true toda
ore than ever. It's not just lip service. Employee manuals from mos
candalized corporations are likely to contain slogans touting it
ommitment to honesty. Claiming to be honest in an employeanual is pass. You're either honest or not. Even if you haven't go
aught yet, most people know who is and who isn't.
tegrity. Integrity connotes strength and stability. It means taking th
gh road by practicing the highest ethical standards. Demonstratin
tegrity shows completeness and soundness in your character and i
our organization.
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esponsibility. Blaming others, claiming victimhood, or passing th
uck may solve short-term crises, but refusal to take responsibilit
rodes respect and cohesion in an organization. Ethical people tak
esponsibility for their actions. Likewise, actions show the ability to b
esponsible both in the little and big things.
uality. Quality should be more than making the best product, bu
hould extend to every aspect of your work. A person who recognize
uality and strives for it daily has a profound sense of self-respec
ride in accomplishment, and attentiveness that affects everything
rom your memos to your presentations, everything you touch shoul
ommunicate professionalism and quality.
rust. There's no free ride. Trust is hard to earn and even harder to ge
ack after you've lost it. Everyone who comes in contact with you o
our company must have trust and confidence in how you d
usiness.
espect. Respect is more than a feeling, but a demonstration oonour, value, and reverence for something or someone. We respec
he laws, the people we work with, the company and its assets, an
urselves.
eamwork. Two or more employees together make a team. It is
usiness necessity to work openly and supportively in teams whetheormal or informal.
eadership. How many hardworking, honest employees have bee
inted and led astray by corporate leadership failings? Managers an
xecutives should uphold the ethical standards for the entir
rganization. A leader is out front providing an example that other
ill follow.
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orporate Citizenship. A foundational principle for every company
hould be to provide a safe workplace, to protect the environment,
nd to become good citizens in the community. Shareholder Value.
Without profitability, there is no company. Every employee should
nderstand how he or she fits into the profitability picture. Everyone'
ommon goal should be to build a strong, profitable company that wi
st.
he real test of these values comes from the resulting action. It takes
oncerted, company-wide effort, beyond inserting these words in an
mployee manual, to make it happen. First, management must lead
y example. Good ethics should be most noticeable at the top. Every
mployee must be accountable to the same rules. Second, a corporat
alues or ethics initiative must be "sold" and "marketed" aggressivelyhroughout a company. Every forum and medium should be used to
pread the good message. Of course, it will only be credible if the
ompany is practicing what it preaches. Third, training must be
rovided to get everyone on the same page. It's easy to ignore a
otivational speech or pass by a poster, but spending time learning
bout the issues will have a lasting impact. Fourth, both you and theompany must be in it for the long haul. The ethics fervour should
xtend to the next generation of employees. The longer it lasts, the
ore ingrained the principles will become. Despite failings of some,
here is plenty of room at the table for good ethics and profitable
usiness to reside. Together they can lay the cornerstone for a secure
nd prosperous society. These ten values you can put in the employeeanual and mean it.
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Gold or Silver : Which is the best investment now, Details, Different
ays of investment in Gold & Silver, Interesting facts, Right time to se
them
GINU M KOSHY
MBA (3rd semester)
Should an investor buy more gold or silver?
ccording to a research concluded earlier this year, precious metals
ere the best performing assets for the second consecutive year and
so for the fourth time in the last five years. Investors enjoyed a 42%
eturn by investing in precious metals in 2010. Silver performed much
etter than other precious metals in the market in 2010 with prices
sing by an astounding 80% which is two and half times the rice inrice of gold (29%). Along with being deemed a safe investment, the
elatively low supply of the metal as compared to the high demand
as also contributed to the steady increase in price. In the first two
onths of 2011, silvers price has increased at a steady 9.3%.Judging
y the present market scenario, investing in precious metals will be a
ery wise decision. Currently it seems like silver is as good or even aetter bet than gold for investment.
What are the parameters one should consider before investing in gold
r silver?
ne of the main reasons investors prefer investing in these two meta
the stability witnessed in the market. Liquefaction is also an easy
rocess for gold or silver bars and coins. Do note that purity of theineral is of utmost priority and should be given its due importance.
nother important factor governing the decision on whether to inves
gold or silver is the price. Though the variation in the price of gold
r silver is not as unpredictable as that of shares and equities, there
ill is a noticeable difference on a daily basis.
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However, when you are investing a large sum of money
hen this small difference can make a lot of difference. Hence, one
hould study the market carefully and invest when the price is
elatively low. Choosing the right vendor is also very important. If
arefully observed then the price variations with wholesalers, retailer
nd commercial banks can be clearly noted. In this manner one can
atch out for the purest gold available at a comparatively low price.
or a regular investor, it makes sense to invest at regular intervals.
his way one can take advantage of the market volatility. Investing in
oth gold and silver makes sense for a regular investor as he can
versify and can have a steady return irrespective of market
uctuations.ifferent forms of investing in gold and silver
ther than dealing with shares and certificates, there are a number o
ays in which one can invest in gold or silver. A few have been listed
ere:
ar: One of the most traditional ways, dealing with bars is very simple
oo.oins: This sort of investment depends on the weight of the gold or
lver coins.
ccounts: Swiss banks provide a Gold-account option which aids in
ansactions involving the precious metal.
old Exchange Trade Funds: This method helps gold transactions
hrough the stock exchange.pread betting: This involves predicting the rise and fall in the price of
old or silver before investing in it.
vesting with mining companies: This is just like investing in the stoc
xchange. The only difference is that here one deals with shares from
ining companies.
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When is the right time to sell gold or silver?
With the current financial slump, people are selling their
old and silver as a means to make some extra cash. With the price of
he two precious metals having reached an all-time high, it would
robably be wise to hold on to it and see how far the prices soar and
hen cash in at the opportune moment. There are two factors that
overn the decision of the timing of a transaction involving gold or
lver, the value of the US Dollar at that moment and the investors
nancial situation. Usually, the price of gold is inversely proportional
o that of the US dollar. However, most investors dont have pure gold
ing around in large quantities. So unless you are investing orpeculating on a really large amount of gold or silver, the drop in the
S Dollars value will not matter.
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FOREIGN EXCHANGE MARKET IS DIFFERENT FROM THE STOCK
MARKETNishad Mohan
MBA, PGDM (3rd sem)
he Foreign Exchange Market is also known as the FX market, and the
orex Market. Trading that takes place between two countries withfferent currencies is the basis for the FX market and the background
f the trading in this market. The Forex market is over thirty years old
stablished in the early 1970's. The Forex Market is one that is not
ased on any one business or investing in any one business, but the
ading and selling of currencies.
he difference between the Stock Market and the Forex market is the
ast trading that occurs on the Forex Market. There is millions and
illions that are traded daily on the Forex Market, almost two trillion
ollars is traded daily. The amount is much higher than the money
aded on the daily Stock Market of any country. The Forex Market is
ne that involves governments, banks, financial institutions and those
milar types of institutions from other countries.
What is traded, bought and sold on the Forex Market is something
hat can easily be liquidated, meaning it can be turned back to cash
st, or often times it is actually going to be cash. From one currency
o another, the availability of cash in the Forex Market is something
hat can happen fast for any investor from any country. The differenc
etween the Stock Market and the Forex Market is that the ForexMarket is global, worldwide. The Stock Market is something that take
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he Stock Market is based on businesses and products that are within
country, and the Forex Market takes that a step further to include
ny country.
he Stock Market has set business hours. Generally, this is going to
ollow the business day, and will be closed on banking holidays andeekends. The Forex Market is one that is open generally twenty fou
ours a day because the vast number of countries that are involved in
orex trading, buying and selling are located in so many different
mes zones. As one market is opening, another countries market is
osing. This is the continual method of how the Forex market trading
ccurs.
he Stock Market in any country is going to be based on only that
ountries currency, say for example the Japanese yen, and the
panese stock market, or the United States stock market and the
ollar. However, in the Forex Market, you are involved with many
ypes of countries, and many currencies. You will find references to a
ariety of currencies, and this is a big difference between the StockMarket and the Forex Market.
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Employee Stress and Performance
Narayanan V.S. & Rahul Vijyan
MBA (1st semester)
reating a high performance organization is a popular theme in th
aining and development field. To survive in these competitive time
ompanies can't afford anything less. Creating a high performanc
rganization requires understanding what factors influenc
erformance. One of the most significant factors is stress.
tress, Threat, and "Numbing Out"
When animals, including human beings, are exposed to potentially lifhreatening situations; their bodies release endorphins, which ar
ature's pain-killer. This makes sense from a survival perspective.
ou are being attacked by a predator and are injured, you don't wan
o be focusing your attention on how much you hurt. This respons
oesn't just happen in response to tangible, visible threat; it is als
iggered by potential threat. Thus, if we feel threatened or fearfuur body releases endorphins. This sets the stage for seriou
tellectual and interpersonal consequences; because endorphins du
oth our ability to think and our ability to feel. Effective decision
aking and interpersonal skills require both.
mplications for the Workplace
workplaces where people are constantly afraid and insecuremployees are at risk of "numbing out" to protect them. We see it i
he blank faces of clerks, the lack of enthusiasm by front line worker
nd in the remarkably insensitive ways managers and employees trea
ach other. The very mechanism which allows a person to survive a
motionally painful environment also makes it difficult for them t
espond sensitively and empathetically to others.
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he organizational conflict and customer service consequences of th
re obviously very costly. This numbing process affects far more tha
he interpersonal realm of organizational performance. It affects a
spects of decision-making, innovation, and safety. With their thinkin
mpaired, people are at greater risk of causing serious mistakes an
ccidents. They are also obviously less likely to make wise decision
nd create process improvements.
tress and the Loss of Creativity. Creative and innovative thought ar
at the heart of the learning organization. An organization's ability t
novate is perhaps the most important source of competitiv
dvantage. Organizations who know how to stimulate and leverag
novative thought are able to respond more rapidly and resourcefull
o market changes and customer requirements than their slower, lesnovative competitors. Divergent thinking is the ability to se
onnections between very distantly related ideas and context. It is a
mportant component of "thinking outside the box." When people ar
ressed, they are able to perceive obvious connections an
ssociations between ideas. When people are in a positive emotiona
ate, their ability to make more distant, novel connections anssociations increases. Thus, stress compromises, at the mos
undamental neurological level, one of the foundational skills o
reativity and innovation.
ncontrollable Stress and the Dumping down Proces
esearch by Dr. James Pennebaker of Southern Methodist Universit
ave demonstrated a very serious consequence of uncontrollablress on thought processes. In an experiment performed by D
ennebaker, subjects wrote about whatever was going on in the
ind - their "stream of consciousness." One group was subjected to
ud noise in the middle of the exercise and told there was nothin
hey could do about it; they had to "grin and bear it.
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he other group was subjected to the same loud noise in the middle
f the exercise, but they were told they could have the noise stopped
they chose. The results were both fascinating and disturbing in thei
mplications for organizational performance. The group that had no
ontrol demonstrated a significant deterioration in their thought
rocess during and after the noise. Their thinking became
nemotional, unimaginative, and dull. It was as if they became
emporarily dumb in order to endure the stressful situation. Even
ore interesting was the other group's response. "Although they wer
old they could stop the noise if they needed to, not one person
hoose to do so? Therefore, they experienced the same amount of
npleasant noise as the group which wasn't given that option. Despiteing subjected to the same amount of noxious noise, their thought
rocess remained unaffected.
hey engaged in deep, reflective, creative thought. Thus, it wasn't the
egative external situation, but the perceived lack of control, which
esulted in a diminished thinking capacity. The operative term here is
erceived. This study and others like it show that even if a person'serception is wrong - if in fact they really don't have control, the effec
the same as if they truly had control. It's the perception, the belief
hat matters. Closely linked to this sense of perceived control is
redictability. As long as a person (or lab rat for that matter) knows
hen the next painful situation will occur, they do not suffer the same
nd of psychological and physiological harm as those who don't knowwhen the other shoe will drop." Simply knowing creates a feeling,
ven if ill-founded, of control.
mplications for The Workplace
ne obvious implication of this research is that employee intellectual
unctioning can be very powerfully influenced by their environment.
workplaces where employees feel helpless and disempowered, the
re less likely to think in intelligent, creative ways.
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nother important implication, and this is borne out by oth