People’s Management Journal Issue 1- January 2009

Advisory Board: • Mr. Arun Gurtoo, Director A,R&D People’s Group

• Prof. P K Mishra, Dean, Faculty Of Management BU

• Mr. Gurnam Arora, Jt. MD Kohinoor Foods.

• Mr Ashok Sharma, Vice President, Godrej Industries.

• Rashmi Bharadwaj, Director, DE NOVO Consultancy

• Prof. (Colonel) A. Balasubramanian, President, Shri Balaji Society,Pune

Editor:

• Dr. U K Neogi

Director, PIMR

Editorial Board:

• Dr. Asma Rizwan Cordinator

Asst. Professor, PIMR

• Shweta Mittal Member

Lecturer, PIMR

• Gunjan Varshney Member

Lecturer, PIMR

CONTENTS MANAGEMENT ARTICLES

COMPLETENCE MAPPING: AN INNOVATIVE MANAGEMENT PRACTICE TOOL Smita Nigam, Poonam Pandey, Dhruv Kumar Pandey GLOBAL BRAND MANAGEMENT: ISSUES AND CHALLENGES Manoj Mehrotra, Satish Kumar, Soumendu Bhattacharya

MANAGEMENT STYLES IN INDIA AND ITS RELEVANCE Dr. M A Burghate, Aparna Samudra

FORECASTING HR IN THE KNOWLEDGE ERA Dr. Kanchan Bhatia THE ART OF BODY LANGUAGE Dr.Asma Rizwan

RESEARCH PAPER

A STUDY OF PRE AND POST-LISTING VOLATITY OF AMERICAN DEPOSITORY RECEIPTS: EVIDENCE FROM INDIA Anindita Chakraborty, Navita Nathani, Dr. Umesh Holani CHINA’S ENTRY INTO WTO & ITS IMPACT ON INDIA Dr. U.K. Neogi

CASE STUDIES

PITCHING TO THE RIGHT CUSTOMERS- THE CARREFOUR WAY Dr. U. K. Neogi ANALYTICAL STUDY ON T-20 By MBA I Semester Students, PIMR Under the guidance of Dr. U.K. Neogi MARKETING MIX OF DABUR HAIR OIL By MBA Students, PIMR Under the guidance of Mrs. Shweta Mittal MANAGEMENT OF STRATEGIES FOR GLOBAL BUSINESS. By Govind B Dave

CADBURYS, BACK TO BASICS By PIMR students

CHINA’S ENTRY INTO WTO & ITS IMPACT ON INDIA

By Dr. U. K. Neogi, Director, People’s Institute of Management & Research

COMPETENCE MAPPING: AN INNOVATIVE MANAGEMENT PRACTICE TOOL

By- Smita Nigam, Poonam Pandey, Dhruv Kumar Pandey

Lecturer, ITS, Ghaziabad

ABSTRACT

The management of innovation is focused on systematic processes that organizations use to develop new and improved products, services and business processes. It involves harnessing the creative ideas of an organization’s employees and utilizing them to bring a steady pipeline of profitable new innovations to the marketplace quickly and efficiently. Sustained innovation comes from developing a collective sense of purpose; from unleashing the creativity of people throughout the organization and from teaching them how to recognize unconventional opportunities. As it has been discussed in the paper an innovative approach needs to be taken towards all organizational practices. The goal is always to have the correct competence needed to help the company reach its goals and its most important challenges. Competence mapping is one such innovative practice that is widely being used by organizations today. Competence mapping is about assessing the value of human capital and it’s development. Care needs to be taken to ensure the involvement of the entire organization. The need to map and monitor the competence is perceived by most organizations as a tool to add value to their key resource areas. To cater to this need the paper also discusses two comprehensive models for competence mapping. The process of competence mapping should be aimed at providing an integrated tool both at individual and organizational level. From the organization’s viewpoint, competence development is always a question of obtaining new competence, developing new competence and phase out old.

INTRODUCTION

Innovation is the introduction of new ideas, goals, services and practices which are intended to be useful. The

driving force of any innovation is often the courage and energy to better the world. An essential element for

innovation is it’s application in a commercially successful way. The challenge for the company is to bring to

the market a stream of new and improved, added value, products and services that enable the business to

achieve higher margins and thus profits to reinvest in the business. Thus it is often seen that successful

exploitation of new ideas incorporating new technologies, designs and best practice enables the businesses to

compete effectively in the global environment.

Keeping in mind, the complexities involved in the evolution of an innovative business practice, care must be

taken for the competency required for the same in terms of organization, process and people. A human mind is

a tool that innovates. Therefore for an innovative business practice to flourish effectively an appropriate

competency mapping of the workforce is required. Large or small companies and organisations, invest much effort

on “human capital” and its development. They know that internal competences are able to impress a distinctive feature on

the company, and that the knowledge of their human resources represents the primary wealth of the organisation. They

therefore develop and implement tools and methods to manage, transfer and capitalise competence, and to define

standards for their evaluation and validation.

COMPETENCE DEFINED

Competence combines three aspects – knowledge, know-how, attitudes and resources. “Competence is the

combination of relevant resources that an individual mobilizes to reach a particular result.”

According to Le Boterf’s paradigm any analysis of competence has to be contextualized to the typology of

product, service and organization.

COMPETENCE MAPPING

Competence mapping is to make a connection between what the company needs and what the worker can

perform and eventually detect a gap. One assumption that must be present to uncover this gap is that current

status of the competence can be documented. The company also has to define what is needed now and in the

future.

To map the competence of a company or an institution is not easy, and below we will take a closer look to

competence mapping and related items.

NEED FOR COMPETENCE MAPPING

The companies and institutions experience a gap ("the competence gap") between the existing knowledge in the

organisation and the needed knowledge. This gap has come into being because the market is demanding and

only companies/institutions that adapt to these higher demands will survive.

These demands deal with quality, price, time of delivery etc. That means workers have to learn new skills, both

regarding to the product or the service produced and to the marketing and transport of the product. It must be

ensured that the worker and the company as a whole has the correct knowledge to fulfill these tasks. Therefore

we have to map the competence and compare this existing competence with the wanted competence, the

competence that is needed to make a better product and thereby to survive in a competitive market.

One more important aspect of "competence mapping" is that the mapping process initiates other processes in

the company/institution which are very important. Since the mapping process can be quite extensive each

worker will be more active in relation to the company's goal and strategic plans of the company.

PEOPLE IDENTIFYING COMPETENCIES

Competencies can be identified by one of more of the following category of people: Experts, HR Specialists,

Job analysts, Psychologists, Industrial Engineers etc. in consultation with: Line Managers, Current & Past Role

holders, Supervising Seniors, Reporting and Reviewing Officers, Internal Customers, Subordinates of the role

holders and Other role set members of the role (those who have expectations from the role holder and who

interact with h him/her).

MODEL ONE FOR COMPETENCE MAPPING

Several methods have been created for mapping competence. The methods use different perspectives in the

mapping process from looking at each individual to looking at the whole company. Following is one such

simple method which can be used in the organization for competence mapping.

Step 1.

Form a workgroup of 8-15 persons who represent important functions in the company both from the

management level and from the workers level. This process involves 4 meetings and the whole process lasts 4-

6 months.

Step 2.

Decide if information should be collected from customers and workers in the company. Create procedure for

personal interviews with customers and workers to gather information to check if the company fulfils core

demands from the customer and changes in demand if any.

Step 3.

Decide the core areas that need to be discussed to prepare the company for the fulfillment of the future

strategies.

This will result in an overview of necessary competence elements and each element is assessed on a scale from

good to poor taking into consideration what is important and what is not so important.

Step 4.

Discuss which competence areas that should be analysed further.

Following four aspects are evaluated in order to develop action plans for how the area should be improved or

be developed further.

· Problem insight - Why is improvement or better utilisation of the competence important?

· The type of knowledge base - Silent/explicit, individual/collective

· Organisational conditions for learning, positive and negative relations

· Important methods for learning in the chosen process

The analysis of each competence area ends up in practical action plans. These plans deals with better utilisation

of existing competence and if upgrading of competence is necessary in any area.

Step 5.

The purpose of this step is to be sure of the continuation of the competence process. Provide feedback to the

company as to how the process has effected the competence work generally and how the identified initiatives

have been adapted into the company.

about what one should do and how one should do it.

Model one for competence mapping

MODEL TWO FOR COMPETENCE MAPPING

This is a very simple method which can be done in 8 easy steps.

1. Organising the work of mapping.

ORGANIZATION

DETERMINATION

OF OBJECTIVE

DESIGNING OF

STRATEGY

ANALYSIS OF EXISTING CORE

COMPETENCY

FORMATION OF

WORKGROUP

DETERMINATION OF REQUIRED

COMPETENCY

GAP ANALYSIS

ACTION PLAN

IMPLEMENTATION

EVALUATION AND

FEEDBACK

• Analysing the current stategy

• Analyzing the competitors

• Analyzing the customer buying behavior

• Analyzing the strategy for retention of customers

• Analyzing the trends in business

• Analyzing the current research & development facilities

2. Mapping of critical competence areas.

• Analysing future competence of the workforce required

• Analyzing the gap between current and future competence demand

• Analyzing the current skills

• Analyzing the development rate of workers

• Analyzing the future challenges for workers

3. Mapping current competence.

• Analyse each workers job content and current demands to skills.

• Analyse person/ task table

• Analyse availability of resourses

4.Gap analysis between current status and critical competence areas

5. The company must regularly clarify what the workers wants and what their ambition are related to

the company's need

• Accomplish appraisal interview once a year.

• Provide new and applied competence to each worker as soon as possible.

• Train workers in order to help teaching other workers

6. A priority list is prepared for the next step and compared with the required

7. Establishment of procedures for systematic and continually supervising.

8 To find out to what extent do the company make sure that increased competence really contributes to

a better day to day management of the company?

Thus although competence mapping is not a very easy job but a focused and a streamlined approach can create

wonders for the company if well implemented. But at the same time competence mapping must involve the

employees at all the levels and the mapping must be related to goals and strategies of the company.

PROBLEMS WITH COMPETENCY MAPPING

Competence mapping should focus more on what the organisations as a whole can manage than looking at the

formal knowledge that each individual worker has.

But it must be taken care that each individual has the wanted formal knowledge, the necessary skills and

know-how to do a god job for the company. The problem is that it is here the gap comes true, it's between what

we can measure and what we know about each individual on one side and what is needed by the company on

the other side.

The problem is the silent competence, because it is here the competence gap most often is uncovered. Silent

knowledge is visible when the individual performs a task, preferably a task relevant for the new challenges the

company is meeting. Otherwise silent knowledge is not visible.

COMPETENCE DEVELOPMENT

The development of the competence must be connected to the company's goal and strategic planning. Core

issues to be addressed include the following:

• Identification of the core competence of the organization.

• Task planning by the company for competence development.

From the organization’s viewpoint, competence development is always a question of obtaining new

competence, developing new competence and phase out old, not needed competence. The goal is always to

have the correct competence needed to help the company reaching its goals and its most important challenges.

Competence for the individual is important in the companies' view because the company is depended on the

individual competence. But competence is also important for the individual as such because a positive attitude

from the worker is a very important condition for a good work and an experience of mastering the work.

New competence enables the worker to meet new challenges and to solve new tasks.

The need to map and valorise and monitor the competence is perceived by most organisations as it can

represent the added value that gives a distinctive features of the organisation.

The most interesting competence is the competence that produces substantial competition power but that

competence is quite difficult to map because it is silent, implicit and very often collective. The silent

competence pops up only when it is needed. When mapping competence it's crucial to choose one or more

views for how to look at competence. The question is what aspects of competence one should try to map

keeping in mind the following four aspects

· The Individual perspective –

competence that each individual in the company has and how these findings fits together with the company's

goals and strategy.

· The business perspective –

competence required to reach the internal and the external goals. The new goals which are possible through the

new competence that has been obtained

· The changing world perspective

need for identification for a change in a way that initiates a process for change .Learning environment headed

for change be designed. Preparation for a good mixture of formal learning processes and informal learning

through practice at work by balancing the collective and individual learning.

. Collaboration, learning in network –

The concept of creating learning material in collaboration is used very often nowadays. The concept

strengthens the issue that the work-force themselves should contribute to produce the learning material, and

thereby learning more.

CONCLUSION

Competence mapping has its own importance which cannot be ignored by the company at any cost if it wants

to gain competitive advantage in business. It helps to create a sound and focused organization with enough

competencies to boast about. Competency mapping is important and is an essential exercise. Every well

managed firm should: have well defined roles and list of competencies required to perform each role

effectively. A lot is going on in recent times on the issue of competency mapping. A lot of resources are being

spent and consultants are invited to do the job of competency mapping. Increased manpower costs, need for

ensuring that competent people man critical positions, the need to be competitive and recognition of the

strategic advantages of having good human resources have compelled firms to be more competency driven. In

good organisations competency mapping existed already. Traditionally HR Directors and their top management

have always paid attention to competencies and incorporated them mostly in their appraisal systems. For

example when L&T, LIC or NDDB, NOCIL, HLL, Bharat Petroleum etc. revised their Performance appraisal

systems they focussed on the assessment of competencies. Role analysis was done and role directories prepared

by the Indian Oil Corporation in mid eighties.

Thus it is evident that competency mapping serves as an important and an innovative management tool

designed to give competitive advantage to a company in terms of people process and organization.

REFERENCES:

Books:

Zwell Michael, Creating a culture of Competence.

Spencer Lyle M. , Competence at work: Model for superior performance.

Sanghi Seema, The handbook of competency mapping.

Articles

Rao T.V., Art and Science of competency mapping.

Websites

www.innovationsource.com www.innovationtools.com www.promokompetens.net

Global Brand Management: Issues and Challenges

By - Manoj Mehrotra, Asstt. Prof, Satish Kumar, Lecturer Soumendu Bhattacharya, Lecturers

I.T.S, Ghaziabad

Abstract It is a commonplace knowledge that the world is becoming more international. We talk of global village, and follow events in countries we have not even heard of a few years ago. The debate about global brands and standardisation has generated considerable heat, if not always much light.The idea of a global brand as one that is identical in every respect in every country is a myth. Instead a global brand can be loosely defined as one that:

• Is basically the same product or services everywhere, with only minor variations(Coca Cola);

• Has the same brand essence, identity and value(McDonald and Sony);

• Uses the same strategic principles and positoning(Gillete);

• Employes the same marketing mix as far as possible(Avon cosmetics). Conditions for Global Brand:

1. Sustainable Competitive Advantage: The firm must be absolutely clear that the brand has some differentiating advantage over the competition it is likely to meet in all its markets.

2. Some Economies of Scale: Costs do not necessarily fall steadily at the same rate as volume increases. There are likely to be some steps where costs rise steeply in the short term as the production is raised to a new level. It must be clear that when the planned or desired level of international sales is reached , costs will be at a level that allows the company to compete with rivals

3. A segment of viable size must exists in each target country: Segment in each market must be big enough to support the brand.

4. The organisation to to implement Globalisation: Going from a multicountry to a global operation is impossible without radical changes in the organisation.

INTRODUCTION

There has been much talk about geographical markets converging and the creation of a 'global market.'

Information and the media have made us all global citizens. This presents an organization with the opportunity

to broaden market scope by internationalizing product and service marketing in order to reap the benefits of

economies of scale.

However there are many complex factors that can affect an international marketing strategy. These include the

nature of the product (for example consumer durable products being more suited to standardization than non-

durables), features of a particular market and even organizational history.

Why Go Global?

Going global is highly attractive. It represents a perception of excellence but it comes with a challenging set of

obligations that many do not anticipate or plan for. It is daunting to achieve a competitively relevant presence

in all strategic global markets with an identical set of core values. Companies must harness the coherence and

scale of a global brand as well as the closeness of a local brand if they wish to succeed. Often referred to as the

70/30 principle, this rule of thumb states that 70% of the brand must remain absolutely consistent, with 30%

reflecting flexibility market-to-market. It has been stated that companies do not choose to go global but that the

market forces them to do so. There are many brands that have attempted to be successful outside of their home

borders and end up being neither truly global nor appropriately local. The decision to take a brand global (or to

several markets from its market of origin) is driven by fundamental strategic opprtunities.

• Size and attractiveness of market

• Commoditization in market of origin

• Displace competitors

• Achieve economies of scale

• Protect current margins

• Capture share of mind

• Drive innovation

However, each of these opportunities has considerable brand implications that require attention prior to setting

out to conquer the world. Market, culture, buyer behavior, current brand loyalties and many other dimensions

may be only considered tangentially, if at all.

The risks of taking a brand global must be carefully weighed or the damage to the brand can be irrevocable.

These risks include, but are not limited to:

• Erroneously assuming the brand communicates the same meaning market-to-market, resulting in message

confusion;

• Over-standardizing or over-simplifying the brand and its management, resulting in a culture of discouraged

innovation at the local level;

• Use of the wrong communications channels, resulting in inappropriate spending and ineffective impact;

• Underestimating the investment in spending and time for a market to become aware of the brand, try it, and

adopt it;

• Not investing in internal brand alignment to ensure that regional employees understand the brand values and

benefits and are able and willing to communicate and deliver consistently;

• Failing to modulate performance metrics based on local variables

Assuming the business strategy calls for going global and the analysis provides support for the strategy, the

company must ask whether it has the culture, organization and processes that lend themselves to developing a

truly global brand.

Catalysts of product standardization

The development of the Internet and satellite television has paved the way for cross-boundary advertising and

promotion. But authors such as Mead have also recognized that a basic similarity in tastes between countries is

an important factor. Significant commonalities exist in Japanese, American and European lifestyle patterns and

consumer demands. It is often argued that increasing travel and electronic communications will lead to the

harmonization of such tastes and preferences.

This seems to indicate that the creation of a global strategy will meet considerable local obstacles.

Arguments in favour of Standardised Global Strategy for Branding :

The main argument in favour of globalisation centre on the view that the world is not only getting smaller

pschologically, but that is also getting more similar.

1. Markets are becoming the same: A world culture is developing, formed by global communications,

travel, films, TV and the activities of multinational firms. In the three areas that make up the so called

‘triad’ – USA, Europe and South Asia- this is arguably true to an extent. It is most true of younger

people, and in many markets the taste of under-30’s are probably very similer at least in developed

countries.

2. There is a segment in every market that is the same: All markets are very cleary not identical,

because there are huge variations in economic development, wealth and culture. It is idle to argue that,

even within a region, all countries are the same. It means that there is a segment within each market that

will essentially be similar to the segment found everywhere else. Thus there will be segment that

responds to Gucci, Dunhill and Rolex in every country. The size of segment will considerably vary, but

it will exists.

3. Global economies of Scale give unanswerable competitive advantage: Theodre Lewitt, one of the

fiercest proponents of global branding, argued that economies of scale could actually overcome loval

market preferences. If a manufacturer ignored current differences in consumer preferences and offerered

a common product at an unbeatable price, consumers would trade off ideal preferences for value. For

example, there have traditionally been differences in what European countries demand in a washing

machine: some want automatic, others do not, some prefer front loading and others top loading, and so

on. Lewitt argued that making a single, standardised model on a European scale would offer such a

value for money that consumers would abandon their traditional views and buy it anyway.

There are also possible savings in marketing costs such as advertising. What the marketing people must

do is to ensure that costs savings- in whatever area-do not damage the brand.

4. There is only one right idea: A more conceptual view is that, for any one brand at any particular time,

there is only one correct strategy. The definition of the brand essence and identity, the target segment,

the positioning, the principles of the mix and targetting have one best solution. Once that is found, it

shoukd be applied in every country with changes only where they are absolutely unavoidable-because

of legislation, for instance.

Arguments Against Standardised Global Strategy for Branding:

Those who oppose global branding base their arguments on fundamental marketing principles: it is the job of

marketing people to be sensitive to their customers and consumers, and only they-in the local country-really

understand them.

1. Markets are actually different: Even within a region such as Western Europe, there are significant

differences between countries. Pasta is seen as old-fashioned in Italy but rather trendy in many other

countries.

2. Local markets have different histories in every country: The development of particular product

markets will have different histories in every country. They may be converging- usually because of the

actions of the major multinationals- but their current situations may still vary widely.

3. Brands designed internationally are the lowest common denominator: If a company tries to take all

thsese differences into account, it will end up with a compromise- the brand that offends noone but

delight no one either.

4. A global brand simply may not be optimal or feasible when there are fundamental differences

across markets. Consider the following contexts where a global brand would make little sense:

• Different market share positions.

• Different brand images.

• Preempted positions.

• Different customer motivations.

• Different customer responses to executions and symbols

5. The brand may not able to find a strategy to support a global brand even assuming one exists. They

might lack the people, the information, the creativity, or the executional skills and therefore end up settling

for the mediocre. Finding a superior strategy in one country is challenging enough without imposing a

constraint that it be used throughout the world as well.

Global brand leadership, not global brands

Global brand strategy is often misdirected. The priority should be developing not global brands but rather

global brand leadership- that is, strong brands all markets, backed by effective, proactive global brand

management. Global brand management should utilize the people, systems, culture, and structure of an

organization to allocate brand –building resources globally, create synergies, and develop a global brand

strategy that will coordinate and leverage country brand strategies.

Brand –building resource allocation too often succumbs to a classic decentralization trap in which large-

market countries receive the bulk of the attention, while the organization starves small markets that may

represent big opportunities. Effective global brand management will recognize and invest in opportunities

from a global perspective

Synergies are possible through sharing research methods, brand building investment costs, customer

insights, best practices, brand strategy development process, brand management models and vocabulary,

positioning concepts, and executional efforts. One challenge of global brand management is to realize those

synergies.

Virtually all-multinational firms should engage in active global brand management. Having unconnected

local brand strategies without direction or management will inevitably lead to global mediocrity and

vulnerability. Pockets of success, often driven by the occasional brilliant manager, will be isolated and

random- hardly a recipe for global brand leadership.

Types of Product: It is impossible to generalize across the huge range of product markets. There are however

some classification that may help.

Culture Bound and Culture Free

Products are said to be culture bound if their use is intricately tied up with some aspects of the country’s

culture. Examples of products that are free of such associations are consumer electronics. We use a VCR in

same way regardless of our nationality and background.

Food on the other hand, is thought to be intimately bound up with local culture, and indeed at first sight local

markets for food do vary hugely.

High

Economies of Scale

Low

VCR

Food

High Low

Culture Grounding

If the culture variable is combined with the availability of economies of scale, as in this figure, we see that food

has low economies of scale and is culture bound; it is therefore difficult to establish global food brands. VCRs,

however do enjoy economies of scale and is culture-bound, so global brands are feasible.

What Principles Govern and Guide Global Brands?

Self-examination at the company level is required to ensure the critical success factors are in place that will

take the brand to other markets. Interbrand has identified a consistent set of principles shared by successful

global brands.

Recognition

Well-performing brands enjoy strong awareness among consumers and opinion leaders. These brands lead their

industry or industries. Think BMW. Car aficionados, reviewers and loyal customers laud it with equal

enthusiasm. It has come to symbolize performance in engineering and design while signifying that the owner

has “arrived” on a personal and professional level. This type of recognition represents the nexus of perception

and reality, enabling brands to rapidly establish credibility in new markets.

Consistency

These brands achieve a high degree of consistency in visual, verbal, sonic and tactile identity across

geographies. They deliver a consistent customer experience worldwide, often supported by an integrated global

marketing effort. McDonald’s is a tremendous example of a brand that has returned to its roots by shedding

distracting acquisitions, simplifying their core offer, and adhering to a shared message globally. At the same

time, McDonald’s appropriately modifies its approaches for greater regional relevance. Restaurants in France

are more “café-like” in appearance and the menu is tailored to the local culture. Espresso is in quick supply and

the chairs are neither molded plastic nor bolted to the floor.

Emotion

A brand is not a brand unless it competes along emotional dimensions. It must symbolize a promise that people

believe can be delivered and one they desire to be part of. Through emotion, brands can achieve the loyalty of

consumers by tapping into human values and aspirations that cut across cultural differences. Nike has appealed

to the athlete in all, regardless of true physical ability, allowing for a focused, yet mass-market offer. This has

elevated the discussion beyond tangible aspects of the shoe or apparel to what the customer feels when wearing

and performing in Nike gear. Successful global brands achieve a high degree of consistency in visual, verbal,

sonic and tactile identity across geographies. They deliver a consistent customer experience worldwide, often

supported by an integrated global marketing effort.

Uniqueness

Great brands represent great ideas. These brands express a unique position to all internal and external

audiences. They effectively use all elements in the communications mix to position within and across

international markets. Apple has creatively addressed its marketing mix while consistently ensuring that its

people embody its most ownable and beneficial brand attribute – innovation.The company has once again come

to represent leading edge technology solutions that become a part of day-to-day life. Apple is embedded

tangibly and emotionally in their customers’ habits and practices.

Adaptability

Global brands must respect local needs, wants and tastes. These brands adapt to the local marketplace while

fulfilling a global mission. HSBC has invested in that very message by conveying its excellence in financial

services with its deep knowledge of local custom and practice. In essence, it is communicating a “glocal”

advantage.

Management

The organization’s senior leadership must champion the brand, ideally with the CEO leading the initiative. A

leader’s continual articulation of the brand philosophy and the brand’s view of the world is meant to give the

business strategy a recognizable face. The commitment is crucial, allowing for a unique positioning that

transcends local idiosyncrasies and appeals to a universal aspect of human nature and experience. This is a

major step in ensuring that the corporate culture will put the brand at the heart of everything it does. The

preceding list is by no means complete.

There are many other factors that must be considered, including superior products, processes and people, a

strong track record of being customer-centric in the country of origin, uncompromised ethical practices, and

continual focus on creativity and innovation.

Is there such a thing as “Glocal”?

Successful global brands take the globally appealing brand message, such as “premium”

and “elite” for Chanel, and apply it in local circumstances. This is achieved by translating the message in a

locally relevant way. If the brand has more than one distinguishing feature, the message can be tailored to the

local audience. For example, Mercedes plays up their prestigious brand positioning in the Chinese market while

they concentrate on their reputation for quality in Germany. This “glocal” quality can only be achieved by

giving local managers the power to interpret and express the message. It is important to note that global brands

do not have to be nationless, as long as the core characteristic has international appeal. In fact country of origin

can easily form a core brand identity that is easily recognizable around the world.

How are Global Brands Managed?

Successful global brands operate from clear principles already discussed. Yet these principlesrequire active

management. There are several management traits that are employed by leading global brands.

Seek Out Insights

Outstanding brands identify customer insights. When these insights appeal across cultures they assist in a

brand’s adoption globally. Once these insights are in place, the brand must ensure that customer perceptions of

it are consistent throughout the world. Hyundai sells two-thirds of its cars outside of Korea, has a multinational

product portfolio, a worldwide slogan and fairly consistent advertising. Despite all this, it is not a truly “global”

brand because the Hyundai name carries very different associations in each market. On the other hand, over

60% of Mercedes Benz’s sales are in Europe, yet the brand’s associations with prestige and quality are global.

Integrate Local Intelligence

Brand guidelines are tremendous tools for ensuring consistency. However, they have been known to

impede innovation and diminish relevance. Brands are dynamic – never static – so managing them must

integrate new thought. In the case of global brands, to assume that one message can appeal uniformly to

all audiences with equal relevance is unrealistic. Well managed global brands select local markets for

intelligence related to the “next big thing” to ensure relevance locally and to counter competitor’s moves.

The Team

Global brands demand a global brand management team. This regional and international organization is in

place to maintain brand leadership. Companies with large brand portfolios tend to have separate managers for

each brand. Regardless, global brand managers must have the authority and resources necessary to implement

key decisions based on performance measurement. The brand management team reports to a senior executive

officer of the company and ideally, the CEO has direct involvement in brand decisions. Global brand

management teams implement processes to create, review and improve brand performance. This frequently

takes the form of a wider brand management council that can include representatives of business units and

agency partners.

Investment

Intangible assets, including brand, now comprise the majority of the value of a company.

These assets require capital investment like any other. Progressive companies and enlightened management

recognize the need for appropriate communications spending. However, CEO and CFOs are not signing any

blank checks – they are demanding objective and quantifiable measurement of return to substantiate any

investment.

Measurement Systems

In order to sustain a global brand’s long-term position, there must be consistent and widespread brand equity

measurement. This will not only help brand development by highlighting and demonstrating best practice but it

will also provide the brand management team with a means of monitoring global consistency. This equity

measurement should include top-of-mind awareness, overall opinion (preference, satisfaction, loyalty,

recommendation), brand image attributes, perceptions of product/service performance, and brand valuation to

determine the financial contribution of brand to the balance sheet.

A Common Global Brand Planning Process Model

A common brand planning process is the cornerstone for creating synergy and leverage across the global

marketplace. Without it, the organization will remain splintered and fragmented.

The model proposed provides the structural foundation for a brand planning process and associated

template.

There are however, some basic elements (shown in Figure) that need to be addressed – a strategic analysis ,

a brand strategy, a specification of brand- building programs, and a description of the goals and measures.

More particularly, the following dimensions should be considered for each element:

Strategic Analysis

• Customer analysis- what are the key segments? What are the customer motivations? What emotional and self-

expressive benefits are being delivered within the product class? What are the customer sweet spot, the central

elements of life and self- concept to which the brand could connect? What trends are unmet needs that the

brand might address?

Figure

•

•

•

•

•

•

•

•

• Competitor Analysis- who are the target customers? How do they position themselves? What are

their brand- building programs, and how effective are they? Is any one breaking out the clutter?

How?

• Brand analysis- what is the brand image? What are the positives and negatives? What are the

strategic initiatives? What assumptions can be made about the organization is willing and able to

do?

Brand Strategy

• Role in Portfolio

• Segmentation

• Brand Identity

• Value proposition

Brand Building Programs

• Brand Position

• Advertising

• Sponsorship

• Internal

Communication

Strategic Analysis

• Customers

• Competitors

• Brand

Goals and Measurement

• Sales/Profit Goals

• Brand Equity Goals

• Measurement

Plan

Global Brand-Planning

System

Brand Strategy

• How does the brand strategy link to the brand portfolio? Should it play a role, such as being a

silver-bullet brand or strategic brand?

• Who are the primary and secondary segments targeted by the brand?

• What is the brand identity? The brand personality? The symbol?

• What is the core identity? The brand essence?

• How the brand to be differentiated?

• What are the proof points and existing programs that support the brand promise?

• What is the value- proposition?

• What functional, emotional and /or self-expressive benefits are to be delivered?

Brand- Building Programs

• What is the brand position , the goal of current brand- building efforts?

• What the strategic initiatives?

• What are the action plans and supporting programs in different areas?

• Channels

• Advertising

• Sponsorship

• What are the internal brand communication programs?

Goals and Measurement

• What are the sales and profit goals?

• What are the distribution goals?

• What are the brand equity goals?

• How will the brand building be measured?

• Sales and profit

• Distribution

• Customer loyalty

• Awareness

• Perceived quality

• Associations( including personality and emotional benefits)

The future?

In terms of the future development of standardized approaches, an important driver has been identified as the

quest for economies of scale in marketing. But factors such as distribution systems, culture and legislation are

likely to be obstacles littering the path.

But is a standardized approach optimal in that the benefits reaped from economies of scale, for example,

significantly outweigh the higher revenues that might follow from an approach that is more adaptive to local

conditions?

Implications

We have seen that there is an assumption that the world is becoming homogenized, yet national and sub-

regional cultures do exist. This makes global branding a tough challenge and one that is handled differently

from organization to organization. Some companies pursue strategies based upon the identification of common

elements among countries, whilst others find it more profitable to adapt and adjust according to specific

conditions in various markets.

References:

Brand Leadership by David A. Aaker, The Free Press

Branding: A Practical Guide to Planning Your Strategy by Geoffrey Randall, Crest Publishing House.

Marketing Management, !2e, By Philip Kotler, Kevin Lane Keller, Pearson/Prentice Hall.

International Marketing: Analysis and Strategy, By Sak Onkvisit, John J Shaw, Pearson/Prentice Hall.

Kevin Lane Keller, Branding Shortcuts, Marketing Management, Sept/Oct, 05

MANAGEMENT STYLES IN INDIA AND ITS RELEVANCE

BY- Dr. M A Burghate, Asst. Professor, Prof. Aparna Samudra, Lecturer, Dr. Panjabrao Deshmukh Institute of Management Technology and Research,Nagpur

ABSTRACT

The future has never been so terrific for most of the Indian Industry. As aptly put by Thomas L. Friedman “The world has become flat”. The Indian companies are accessing new markets, new technology and above all new ways of managing business. The Indian organizations have realized the need for change in the management style. The focus has shifted to essentials of and hard headed business realism. However, the underlying fact remains that the success of an organization depends on the skill of the people who inhabit it. The old value system of representative democracy has been replaced by participative democracy. Further the separation of ownership and management has led to the management style of Management by Walking Around and Management by Consensus. There is an end of authority as a tool of management in business. The need for corporate governance, which gives importance to accountability and transparency, has encouraged large number of organizations to have an Open Door Policy. We must never forget that the culture of a country plays an important role in the management of any organisation. An Indian worker perhaps looks at a system without ruthless management practices and inhuman work pressure even if the job security is a little less. Instead of the system (especially in PSUs) giving them near 100 per cent job security, it could give them some fear of job security, since Indians culturally like to take life easy and tend to become complacent. The human touch in managing has been increased by making them feel that the company cares for them through regular training programmes, family welfare schemes, etc, which involves them directly or indirectly into various decision making processes. The organisations today are giving due importance to the development of preferred personal expertise of the employees. The crux of the matter is that in the current scenario, Indian companies have started thinking sincerely about their people and developed ''Indian-friendly management'' practices and have realized that to do business globally means to act locally.

INTRODUCTION

The future has never been so terrific for most of the Indian Industry. As aptly put by Thomas L.Friedman “The

world has become flat”. The Indian companies are accessing new markets, new technology and above all new

ways of managing business. The Indian organizations have realized the need for change in the management

style. The focus has shifted to essentials of business and hardheaded business realism. The ways of doing

business have changed in the recent milieu. The organizations have realized that if they want to grow and

flourish in global business world, they better learn how to change and align themselves with it.

The management styles are defined by Brewster as – “A set of proposals and actions, which establishes the

organization’s approach to its employees and acts as a reference point for management.” The broad

factors influencing management style of an organisation can be enumerated as:

• Competition

• Market activity

• Organic growth or acquisition & merger

• Financial markets

• Leadership

• Size

• Ownership

Various theories have been propounded on management styles but no one theory can hold true forever.

International environments are changing rapidly. Nothing is permanent, and the cause of yesterday's success

may be the cause of tomorrow's failure. Today's leaders must assume the responsibility for creating new models

of management systems because many of the assumptions on which management practice were based are now

becoming obsolete. The dynamic business environment and convergence of a global economy has neccessiated

the need for adopting management startegies which suit the need of the hour.

THE PAST

Indian business history has been long and eventful.The Indians have been famous for their business styles since

18th century. Infact it was the Indian business riches which attracted the British, French and Portugals to do

business in India. Having a closer look, the Indian goverenment stand on business has changed over a period of

time and hence, a change in the management styles .The period for the study can be divided into pre 1991 and

post 1991.

The first Prime Minister of our country, Pt.Jawahar Lal Nehru had a socialist attitude and hence India saw a

huge empire of the Public Sector in India and a protected trade policy. Taking a look at the Indira Gandhi's

declaration of a state of emergency in 1975, it can be argued that the government initially was hostile to

business and sought to straightjacket it under the rubric of "big is bad." The laws of the land gave protection to

the labour class and restrictive powers to business.

Another important feature of Indian business has been the family ownership of business. Large Indian business

houses like Reliance, Birla Group, RPG, SRF are owned by big and influential families.This family system

strongly influenced the Indian management styles. As it is well known, that the head of the family enjoys the

unquestioned obedience from all the family members.Also culturally, seniority in age is respected in India.The

head of the family controls and supports all the juniors. There is very less participative decision making in the

families. The same value system is reflected in the way the business was managed in India. “Paternalism” is

part of Indian management. Traits like familiarity, sense of security, respect for seniority, forms of

authoritarianism, obedience of authority are all apart of paternalism.

Such charateristics of business environment in India led to management styles which were more directing and

authoritative in nature. The participation of the employees was minimal and the decisions were taken by the

managers /owners. The Managers used to tell people what to do, how to do it and when the task is to be

completed. Managers assigned roles and responsibilities, set standards and defined expectations. There was an

authoratitive style of management not only in the public sector but also in the private arena of business.

The year 1991, carries huge significance for the Indian economy. This was the year when the reforms in the

Indian economy were introduced. The reforms were mainly aimed at liberalisation and globalisation of the

economy. As well quoted by Tarun Das, mentor of CII “ 1991 was the year when our Berlin Wall fell.”

Trade controls were abolished and foreign investment was welcomed. The competition was introduced in the

well protected Indian industry. Apart from this the legislation was made more industry friendly.The frog that

was born in a well and lived most of its life in the well and had a worldview that consisted of the well , after

1991 was communicating with the other frogs in the well.

For some Indian companies it was the time of crisis. Industry had to now refocus its attention to new ways of

managing business and the autocratic and laid back attitude which they enjoyed during the socialist philosophy

gave way to hard headed business realism. Although painful, this crisis provided opportunity for developing

efficiencies through establishing new benchmarks. The new world of work today is dependent on the strategic

vision and the edge it provides to the organisation.

INADEQUACIES OF THE TRADITIONAL MANAGEMENT STYLE

Indian management was and to a certain extent is still marred by a few weaknesses in their management styles.

Some of the prominent weaknesses are:

A. Planning: By and large, planning in Indian organisation is short term.This was largely due to a

turbulent past, especially in the government and public sector organisations. Because of the instability

in the political scenario, the concentration is on the short term goals. In case of family owned

organisations there is stability within a generation but when the generation changes there is a major

upheaval and sometimes division of the organisations. The latest one being in case of Reliance

Industries Ltd. , which witnessed a bitter and unusually public falling out between the two Ambani

brothers -- Mukesh and Anil -- over control of the Reliance conglomerate built by their father,

Dhirubhai. Other shareholders watched as the two finally broke up the business empire, which had

previously been India's largest business group. All these factors influence the planning, as planning is

not independent from the personality of the leader.

B. Delegation: Although as a policy matter, decision making authority and responsibilities are delegated,

but in reality everything remains centralised. Delegation is not based on formal structures to facilitate

smoother functioning but more emphasis is put on control. In practice, it is the control that is actually

exercised on the name of monitoring and coordination. As a result of frequent and constant interference

in this form, there is a reluctance to accept responsibity at lower levels.

C. Manpower mangement: This is the most interfered management process. Although there is manpower

policy, it is not followed because of inteference from bureaucrats or politicians or other influenced

groups. The organisations, especially the government organisations donot have the freedom to hire and

fire people. There is no planned approach to training of employees, at all levels. Appraisal is very

selectively used and at times very subjective. The policy regarding promotion is at times very ambigous.

D. Employees Praticipation: Participation of employees is on the papers but actually it is not

implemented. The employees are seen as a necessity for production, but the need to involve them in

decision making is ignored. Communication in the organisations is not democratic. Information is

treated as a closely guraded resource, not to be shared or passed on. It is used as a tool to control and

retain power.

THE PRESENT

The success of an organization depends on the skill of the people who inhabit it. Crisis promotes learning and

that is what India is going through. Established companies are learning to compete with start-ups both in old

industries and in new, especially technology-based sectors. This competition, combined with such forces as

globalization, has created a need for continuous evolution in management strategy.

Whereas large monopolistic companies ruled the old Indian economy, the new terrain is a more dynamic one,

in which Indian companies are realizing the importance of efficiency and collaboration. There is an increased

emphasis on efficiency and focus on global competitiveness. The old value system is being replaced by a

productive work culture. In this context, to our mind comes the name of the best managed company in India

namely, Infosys Technologies Limited. It has been judged as the best managed company due to its

management strategies like people focus, addressing the challenge of inducting and orienting a large number of

employees into the Infosys way and knowledge sharing.

THE CHANGING MANGEMENT STYLE

The flattening of the world has ushered in new stars in the sky for managing the business. The companies today

have different set of values on which the business operates. The organization structures have changed and

companies today clearly define vision for operation. The change in the management style can be explained in

the following points:

� A shift from representative democracy to participative democracy:

The exercise of authority as a tool of management in business is increasingly becoming self-limiting. The

organizations have now adopted a more participative management style, where the stress is on the discussing

style of management rather than the directing style. In corporations, which follow a Japanese style of

management, especially in manufacturing, there is a sense of unity, which has been fostered beyond the

demarcation between employers and employees. This is "participatory management," unifying the efforts of

employers and employees who share the same management ideals. Techniques of Kaizen and Six sigma are a

result of successful employee participation to improve the overall performance of the unit.

Managers using the discussion style take time to discuss relevant business issues. People present ideas, ask

questions, listen and provide feedback, challenge assumptions and coach as needed. It's important to make sure

ideas are fully discussed and debated. Managers often perform the role of facilitator, making sure the

discussion stays on track and everyone has a chance to contribute. This style of management is most common

in BPOs, where the team leaders discuss with their teams about the targets to be achieved and ways of

achieving them.

The practice of Management by Walking Around and Open Door Policy founded by Hewlett – Packard is

one of the most relevant management policies in the globalised world. The managers should be aware that what

is happening in their area of operation. Managers walk around the company, getting a 'feel' for people and

operations; stopping to talk and to listen. This ensures that the management is aware of the opinion of the

people. It not only helps in improving organization but also delivers a sense on belongingness to the employees.

The Open Door Policy gives the right to the employees to voice their opinion about issues or

misunderstandings amongst various levels of organizations.

‘Management by Consensus’ as adopted long ago by JRD Tata is still relevant in todays global world. He

said that 'When a number of persons are involved I am definitely a consensus man,' adding further: 'but that

does not mean that I do not disagree or that I do not express my views. Basically it is a question of having to

deal with individual men heading different enterprises. You have to adapt yourself to their ways and deal

accordingly and draw out the best in each man. If I have any merit it is getting on with individuals according to

their ways and characteristics. In fifty years I have dealt with a hundred top directors and I have got on with

all of them. At times it involves suppressing yourself. It is painful but necessary. To be a leader you have got to

lead human beings with affection.'

To cut the long story short, this approach gives reference to listening to all the stakeholders involved and then

taking the optimum solution to achieve the given goals and objectives.

Apart from these direct management styles, many organizations are now adopting indirect ways of involving

employees in the management and inculcate a sense of belongingness in the organization. ESOPs (Employee

Stock Options) are one of the most innovative and widely used tools to make employees owners in the

organizations. A share in the company motivates the employees to perform better and the spirit of teamwork is

cultivated.

� Core values and vision of is to be clearly defined

In the global business scenario, the values on which the organization is operating and the vision needs to clearly

defined. A vision statement discusses the “why” of an organization. Values are those basis on organization is

based. The power of well thought vision creates a competitive edge. It looks to a desirable future, and sells this

to stakeholders who will support the organization in its effort. The stakeholders are all those with whom the

organization deals with. The pride that declared values generates creates heroic perspectives for individual and

group performance.

A byproduct of value and vision statements are the generation of corporate image which carries significant

weight in the current business world. Companies like Wal-Mart while sourcing their raw materials from India

make sure that no child labour is used in the entire production process. A clearly defined vision and value

statement not only gives greater acceptability in the society but also provides a foresight and direction to the

employees as what is expected from them. Vision creates stake holding, and is essential tool for stakeholder

support. Most of the organizations today define the vision as it provides a high degree of integrity to survive

environmental changes and continue to inspire people within to extend effort.

A good example of core value statement can be as given by 3M. The vision statement of the company is as

discussed below:

• Innovation: “Thou shalt not kill a new product idea.”

• Absolute integrity

• Respect for individual initiative and personal growth

• Tolerance for honest mistakes

• Product reliability

• Our real business is solving problems.

The global business practice today requires the justification of the operation of the business organization in the

society.

� Changing HR practices

Changes in the contemporary global economy highlight many of the emerging challenges facing human

resource management (HRM). Vast macrosocietal changes increasingly bind countries into interdependent

nations in which goods, capital, and people move freely. Between these communities, however, there remains a

patchwork of cultural barriers. To remain successful in this new global age, organisations must commit

themselves to transnationalism. They must also internalize strategies that are likely to succeed in global

competition. Implementing successful global strategies requires careful attention to the paradoxes created in the

management of human resources.

We must never forget that culture of any country plays an impotant role in success of Human Relation

Management. Culture refers to the collective programming of the mind, which distinguishes the

members of one group or category of people from another.

An Indian worker is perhaps looking at a system without ruthless management practices and inhuman work

pressure even if the job security is a little less. Instead of the system (especially in PSUs) giving them near 100

per cent job security, it could give them some fear of job security, since Indians culturally like to take life easy

and tend to become complacent. The human touch in managing could be increased by making them feel that the

company cares for them through regular training programmes, family welfare schemes, etc, which involve them

directly or indirectly into various decision making processes. In fact, professional studies could be made a part

of on-the-job training.

The ability to cope with cultural relativity is the key requirement for global managers to succeed today and

tomorrow. Familiar aspects of organizational life such as organizational structure, leadership styles, motivation

patterns, training and development models, and the very important concept of human resource management, are

culturally relative and, therefore, need to be considered when national boundaries are crossed. To facilitate such

cross-cultural adaptation, what is required is more recruitment of managers from different areas, acculturation

through carefully planned career moves, and cultural awareness training.

Companies like NIIT Ltd., GE are increasingly becoming aware of the needs of the employees. They give due

importance to the personal life of the employees by celebrating their birthdays, providing crèches for the

mother of young ones and giving the opportunities to the employees to study further.

� Flattening of the organizations:

In the organisation structure of the future we certainly see flatter organisations. Flattening in the typical brick-

and-mortar company was driven by cost whereas in the high-tech world, flattening is driven by the need for

greater speed and mobility. We are seeing the CEO getting down talking to people down at the shop floor that’s

because those people in the shop floors are the ones who are creating the wealth for the company. They may be

creating more wealth than the two layers of management that sit between them and the CEO. That creates a

challenge for Indian organizations where career progress has been measured by hierarchical levels. These levels

provide opportunities for career progression, but are concurrently the natural enemy of high-tech, fast-moving

organisations.

Companies such as GE have spent the past 20 years looking at flattening and it’s one of the reasons why it is so

successful. It has constantly been reorganizing its work and its way of thinking to get rid of the old,

bureaucratic ways of doing things so what stays behind is the valuable work for which the marketplace will

pay. Today, some of the old smokestack companies are doing it. For the high-tech companies this is absolutely

necessary, otherwise they can’t get these smart young people to come and

Work for them and maximise their personal earnings while they create value for their

Companies. Thus, companies have a mandate to create jobs that are both meaningful

and scarce. That is a major challenge for all companies including those in India.

� Designing meaningful jobs:

An essential part of an individual’s sense of worth, and consequently his/her commitment to the task he/she is

expected to perform, is the belief in meaningful work. The management in current scenario should emphasise

on skill variety, task identity, task significance, autonomy and feedback. Relevant importance should be laid on

the fact that people are multidimensional with varied skills and interests. It is no more the money, which

attracts the employees but the challenges at the work place along with adequate authority and responsibility,

that gives an impetus to work more innovatively and he jest for work.

The organizations should stress on the fact that employees today want to pursue a job that gives them long term

earning potential. The employees are given work, which is more meaningful and productive so that their

contribution in the organization can be seen. The companies should put the work force in challenging

environment and positions so that they can add value to the company.

� Growing importance to Corporate Governance:

As global business interest in India keeps growing, so does the expectation that Indian companies must play --

and be seen to play -- by rules that are clear to international investors. Demands have long been heard for

greater transparency in the way Indian companies do business.

Corporate Governance highlights on three main issues namely transparency, accountability and integrity.

Indian companies need to develop a new focus on employee issues, corporate social responsibility and ethics—

and meet or exceed acceptable standards to compete globally. The organizations are finding that a significant

proportion of their efforts are being channeled in the direction of compliance and coordination with differing

complex ethical and governance standards across the globe. In a nutshell, corporate governance is the key issue

in today’s global world.

The issue of corporate governance involves around greater transparency in ways of doing business. The

compliance set by SEBI to have independent directors on board and forming a code of conduct with corporate

disclosures and setting up of audit committees is a step towards the issue of accountability and transparency in

business. The independent directors will not only serve as link between the organization and its stakeholders

but also act as a watchdog to see the ethical working of the organization.

There is a kind of emergent world standard of governance. While there are national peculiarities, such as

combining the chairman and CEO functions in one person in the U.S., there is a basic notion worldwide for

good transparency; reliable reporting of financials and risks, and boards that have the independence and

strength of purpose to be able to do all this. The Indian organizations particularly, family owned business need

to have a closer look at the issue of corporate governance. The separation of ownership and management needs

to be done, as their companies' share performance is dependent on their empowering the board. If not, their

companies' value won't grow.

Companies like Godrej Industries and Infosys Technologies have adopted the concept of corporate governance

long back which has helped them to create a good impression not only on India but also globally. Developing

strong governance standards means helping directors appreciate what board practices "make for good

governance and great performance.”

CONCLUSION

The Indian Manager in the 21st century has inculcated a natural instinct to give up staticism and choose

dynamism. The management has to be proactive rather than reactive. He has to believe in a thinking based on a

set of cultural and organizational values and not in transacting business based on impulses emanating

instantaneously. The yardstick of measuring performance is not a bundle of rules and procedures but a

combination of outputs, results and performance. The context of business has to be global but work with those

management styles that work locally. The Indian management has to learn that having a true global perspective

means more than just having a physical presence in order countries. Indian CEOs must create and communicate

a version that is knowledge-led and shared by all employees, not just by the CEO and the top management.

Globalization implies accepting that cultural diversity in management composition and management style that

contributes to the competitive advantage of the global agency.To survive in the 21st century, agencies must

adapt a global mindset and transform leadership to be globally competitive. Organisations and their leaders

must learn to manage such transformations or they will inevitably lose their competitive edge. Global leaders,

therefore, must have the capacity to turn threats or stumbling blocks into opportunities; to motivate people to

excel, not just to survive; to accelerate innovations in competitions; and to operate globally through cross-

cultural problem solving and team building

REFERENCES:

1. Surviving tomorrow by Rajiv Shaw, Vikas Publishing House Pvt.Ltd., New Delhi 2. The World Is Flat by Thomas Friedman 3. Contemporary Issues in Modern Management edited by S. Sikidar & A.K.Pramanik

FORECASTING HR IN THE KNOWLEDGE ERA

By- Dr kanchan Bhatia Astt Prof. People’s Institute of Management & Research, Bhoapl

Abstract

Knowledge has become increasingly relevant for organizations because of the shift from an industrial economy based on assembly lines and hierarchical control to global decentralized, information-driven economy. The vital importance of knowledge in business has always been recognized but, up until now, organizations haven't felt able to manage it because they understood neither the problems and the opportunities nor the strategies and solutions. This picture is gradually changing as models, methods, tools and techniques for effective knowledge management are becoming available and as organizations realize the importance of knowledge and thinking to their capacity to adapt to the changing world. Human Resource has a pivotal role to play in the Knowledge Management movement. This paper mainly emphasis on the concept and importance of knowledge management and how then do HR processes and practices impact the knowledge sharing in a firm and how to create a knowledge sharing culture in HR.

Introduction

A superficial knowledge is not enough. It must be a knowledge capable of analyzing a situation quickly and making an immediate decision." - Cavett Robert

HR has a pivotal role to play in the Knowledge Management movement. Key HR processes -- Corporate Education, Performance Management and nurturing (sharing, doing and caring) culture, have a very significant role in the development of the knowledge-based enterprise.

Talent management, which is the domain of HR and knowledge management are closely interrelated. While Talent Management focuses at individual level -- recruitment, training, skill and competency development and career planning of an individual, knowledge management focuses on people at collective level, how to leverage the collective knowledge of the enterprise, through Mentoring and knowledge sharing and collaborative team working.

The belief that the people working for a firm are one of its main assets and one of the decisive factors in determining its results is one that leaves little room for argument. There is no question regarding the fact that workers' qualities, attitudes and behavior in the workplace go a long way to accounting for a company's success or lack of it. While this type of resource is one over which companies do not have complete control, there do exist certain instruments to enable them to exert their influence on the quality and performance of the human capital on which they rely. Knowledge Management should be developed into a key competency of the people. Before discussing the knowledge management in HR we will focus on actually what is knowledge management.

Knowledge management is a conscious strategy for moving the right knowledge to the right people at the right time to assist sharing and enabling the information to be translated into action to improve the organizational performance." (O'Dell & Gray1997) Knowledge management is an approach to discovering, capturing, and reusing both tacit (in people’s heads) and explicit (digital or paper based) knowledge as well as the cultural and technological means of enabling the Knowledge management process to be successful.”

The Importance of Knowledge Management

Most companies are focused on producing a product or service for customers. However, one of the most significant keys to value-creation comes from placing emphasis on producing knowledge. The production of knowledge needs to be a major part of the overall production strategy.

One of the biggest challenges behind knowledge management is the dissemination of knowledge. People with the highest knowledge have the potential for high levels of value creation. But this knowledge can only create value if it's placed in the hands of those who must execute on it. Knowledge is usually difficult to access – it leaves when the knowledge professional resigns.

“The only irreplaceable capital an organization possesses is the knowledge and ability of its people. The productivity of that capital depends on how effectively people share their competence with those who can use it.” – Andrew Carnegie

Therefore, knowledge management is often about managing relationships within the organization. Collaborative tools (intranets, balanced scorecards, data warehouses, customer relations management, expert systems, etc.) are often used to establish these relationships. Some companies have developed knowledge maps, identifying what must be shared, where can we find it, what information is needed to support an activity, etc. Knowledge maps codify information so that it becomes real knowledge; i.e. from data to intelligence.

For example, AT&T's knowledge management system provides instant access for customer service representatives, allowing them to solve a customer's problem in a matter of minutes. Employees can lookup a knowledge expert from the Yellow Page Directory of knowledge experts.

Every organization should strive to have six capabilities working together:

1. Produce: Apply the right combination of knowledge and systems so that you produce a knowledge based environment.

2. Respond: Constantly monitor and respond to the marketplace through an empowered workforce within a decentralized structure.

3. Anticipate: Become pro-active by anticipating events and issues based on this new decentralized knowledge based system.

4. Attract: Attract people who have a thirst for knowledge, people who clearly demonstrate that they love to learn and share their knowledge opening with others. These so-called knowledge professionals are one of the most significant components of your intellectual capital.

5. Create: Provide a strong learning environment for the thirsty knowledge worker. Allow everyone to learn through experiences with customers, competition, etc.

6. Secure long-term commitments from knowledge professionals. These people are key drivers behind your organization. If they leave, there goes the Knowledge professionals will become the dominant

force behind the new economy, not unlike the farmer was once the key player behind the agricultural age. By the year 2010, one-third of the workforce will be comprised of knowledge

professionals. It is incumbent upon all organizations to embrace this need for managing knowledge.

Knowledge Management has been recognized as an essential component of a proactively managed organization. The key concepts include converting data, organizational insight, experience and expertise into reusable and useful knowledge that is distributed and shared with the people who need it. Knowledge Management addresses business challenges and enhances customer responsiveness by creating and delivering innovative products or services; managing or enhancing relationships with existing and new customers, partners and suppliers; and administering or improving more efficient and effective work practices and processes. Effective solutions are aligned with the organization's business strategy and result in enhanced individual and organizational performance. Several factors that contribute to the importance of managing knowledge are referenced below:

Competitive Advantage - Knowledge can be an organization's most competitive advantage. Wealth results when an organization uses its knowledge to create customer value by addressing business problems. "A firm's competitive advantage depends more than anything on its knowledge, or to be slightly more specific, on what it knows - - how it uses what it knows - and how fast it can know something new

Technology - Because of the tremendous advances in technology, enormous amounts of information can be disseminated to people regardless of their geographic location or time zone. The speed of transmission and frequency in which this information is received requires an adaptable, skilled and educated workforce. From a

knowledge management perspective, the complexities associated with these technological changes will cause us to think differently about the manner in which people learn whether it is inside or outside of the classroom. "A firm's competitive advantage depends more than anything on its knowledge, or to be slightly more specific,

on what it knows -- how it uses what it knows - and how fast it can know something new

Organizational Change - Due to organizational changes, restructuring, mergers and acquisitions, companies have lost some of their valued history and cultural norms. An organization's ability to create, acquire, process, maintain and retain old and new knowledge in the face of complexity, uncertainty and rapid change is critical.

Enhanced Decision-Making - Learning from and applying past experiences can accelerate the completion of future work and enhance the decision-making process.

Workforce Demographics - An aging workforce, coupled with retiring baby boomers and the loss of intellectual capital or institutional memory are creating a new sense of urgency for organizations. Although predicting employee separations is at times challenging, knowledge transfer is vital to sustaining critical business functions. While many employees may continue employment beyond retirement eligibility, these

employees will inevitably leave the workforce.

Knowledge management is concerned with the exploitation and development of the knowledge assets of an organisation with a view to furthering the organisation’s objectives. The knowledge to be managed includes both explicit, documented knowledge, and tacit, subjective knowledge. Management entails all of those processes associated with the identification, sharing and creation of knowledge. This requires systems for the creation and maintenance of knowledge repositories, and to cultivate and facilitate the sharing of knowledge and organisational learning.

Figure 1: knowledge management processes (Adapted from Armistead, 1999)

., Figure 1 above explores knowledge management from the perspective of operational process, that is, the basic input-output transformation process. At the input end, we have a combination of knowledge of customer’s

needs and expectations, knowledge of raw materials and resources to be used, knowledge of products and services to be delivered as well as data information or knowledge. The process clearly indicates that knowledge

management takes information, knowledge and people as its basic inputs, and applied knowledge and intellectual capital as its desired outputs.

Categorization of knowledge management approaches

The term "knowledge management" is now in widespread use. There are, of course, many ways to slice up the multi-faceted world of knowledge management. However, it’s often useful to categorize them.

It has been identified two "tracks" ,

o Management of Information. To researchers in this track, according to knowledge = Objects that can be identified and handled in information systems."

o Management of People. For researchers and practitioners in this field, knowledge consists of "… processes, a complex set of dynamic skills, know-how, etc., that is constantly changing."

Why we need knowledge management now:

o Marketplaces are increasingly competitive and the rate of innovation is rising. o Reductions in staffing create a need to replace informal knowledge with formal methods. o Competitive pressures reduce the size of the work force that holds valuable business knowledge. o The amount of time available to experience and acquire knowledge has diminished. o Early retirements and increasing mobility of the work force lead to loss of knowledge. o There is a need to manage increasing complexity as small operating companies are trans-

national sourcing operations. o Changes in strategic direction may result in the loss of knowledge in a specific area. o Most of our work is information based. o Organizations compete on the basis of knowledge. o Products and services are increasingly complex, endowing them with a significant information

component. o The need for life-long learning is an inescapable reality

How then do HR processes and practices impact the knowledge sharing in a firm?

Let us briefly examine some of the HR processes and practices that should be aligned to strengthen knowledge management.

At the stage of induction of new executives into the organization, coaching and mentoring systems are meant to transfer knowledge, exposure during training to variety of functions, units and geographical locations helps knowledge awareness / transfer.

Employees will benefit from "Mentorship," not only during the initial months but also for a long time after that. The role of the mentor in the later period would be to challenge the executive to look beyond the obvious, look for past learning and base decisions on a more informed platform.

Job rotations: Well-planned job (role) rotations across geographical locations and businesses in a firm help not only people development, but also provide an important vehicle for transfer of knowledge and best practices, even though an organization cannot obviously depend on this as the main source of knowledge transfer.

Networked organization: A networked organization with people playing multiple roles, being part of multiple teams -- a vertical team (Business / category) as well a horizontal team (function / knowledge domain), is the way forward to effectively "leverage collective knowledge" of an enterprise. HR should play a key role in developing such a networked organization, through sponsorship and or facilitation of knowledge communities

(teams), cutting across formal organizations.

Training: Learning and knowledge are inter-linked. Knowledge strategies should encompass learning initiatives and knowledge initiatives need to converge with training initiatives. A Company's training program needs to focus on functional and business specific skill development programs as well as competency development focused programs.

Knowledge management cannot be practiced without a clear focus on "learning" within the organization. An example of this is the "Bulab learning center" in Buckman Laboratories, an oft-quoted exemplar practitioner of KM. They set up this learning center to provide employees greater access to training and education and an ability to drive their own development. Rather than the student going to a class, this learning center delivers the classroom to the student -- anytime / anywhere in the world. Apart from offering internal training courses, the

learning center also offers courses for credit from multiple Universities around the world, for degree programs ranging to Ph.D. level. All the courses offered are free to the student, if he completes it successfully.

E- Learning. It is online learning. It is made available through company web sites (Intranets), and even through CD-ROMs. It allows the learner to enroll into courses or programs of their choice and acquire knowledge at their own pace at the place of their choice. Corporate online universities, exclusive learning space to induct managers or develop future leaders, on going programs for sales personnel and induction into new products and services are some of the e-learning offerings, some of the companies are making available to their employees to develop themselves. E-Learning provides the benefit of convenience -- allows the learner to do the learning at his or her pace, flexibility -- Learner does not have to sacrifice a training program because of its clash with customer or personal visit, and ease of learning.

IBM has about 2500 on-line courses on offer to meet the different employee needs. At Buckman Laboratories, all the employees are connected to their Global IT network. They have therefore chosen to deliver the classroom to their employees over the Intranet rather than require them to travel to a classroom.

Even in cases where the employees are called upon to participate in training in classrooms, they have an interesting approach to distance learning. The introductory material that would be normally presented at the plenary class room sessions is provided through distance learning packages via CD-ROM or Intranets. This ensures that every one can go through it in his or her own speed. Physical classroom meetings are used to really interact with each other, the teacher and the material.

By delivering the class room to the student instead of sending the student to the class room, Buckman could significantly reduce the training costs per hour per employee, through savings in out of service cost, travel cost, cost of classroom, housing cost while taking the course and the cost of the professor or content. The Learning Center is currently capable of handling a wide variety of the courses -- internal training, courses for credit from some of the universities.

The training and skill profile of the employee is regularly updated, based on the successful completion (examination) of the on-line courses.

HLL put a lot of emphasis on continuous training (both internal in HLL, at the Global Training Centers as well as external training) to develop the capability of their employees and help them realize their potential The company training programs --- like creative workshops, team excellence workshops, process improvement workouts, forums for best practice sharing and Knowledge Management workshops strongly support capability building in the areas of knowledge creation / capture (Innovation) and knowledge sharing.

Many of the businesses in Unilever have set up global learning centers (HPC Marketing academy, the ice cream academy, world tea academy etc.) to develop training programs tailored to the skill requirements of the respective businesses. The mission of these academies is to help build within Unilever superior business specific capabilities necessary to deliver sustained competitive advantage and increased profitable growth.

Another very useful role HR could play is to capture stories of successes and failures in the company, archive them in the company-training center for reference for future. This would not only support learning but could prevent repeat of same mistakes.

Culture change: Leveraging collective knowledge is possible only when people value building on each other's ideas and sharing their insights. Much of this shaped by the culture of the organization. In some cultures, where knowledge is seen as power, knowledge sharing may be seen to be in conflict with the individual's personal interests (individual excellence / competitive advantage). Therefore, institutionalization of Knowledge Management requires HR to focus on managing the culture change / mindset of the people to strengthen collaborative team working and knowledge sharing.

How to create a knowledge sharing culture in HR

"People do not do what you tell them, but what you measure them for." HR needs to institute a system of rewards and recognition, training and performance development practices -- activities that reinforce the discipline of sharing, documenting knowledge and reuse of others' ideas with pride to achieve business goals.

People in business most often behave in a way that increases their career opportunities, or recognizes their achievement. Most organizations reward individual effort or task achievement. They reward something done in a crisis, but most incentive programs do not reward avoiding a crisis. The best KM practitioners reward

employees for learning, sharing and collaborating.

Some of the steps HR could implement are:

Institute Team awards to recognize and reward excellent collaborative team effort, which has strongly contributed to business results. Ensure high visibility for teams which have excelled in knowledge capture / sharing to deliver business excellence. Many companies have found such team awards very useful in building up the enthusiasm and commitment to collaborative team working and knowledge sharing in the initial years, even though after a while, they might have discontinued these once they moved beyond the need for such awards, once the knowledge sharing is embedded into the culture. I have illustrated below a few examples.

• Xerox : By including knowledge sharing as a dimension for its prestigious president's award, leadership at Xerox has demonstrated those senior management values and rewards knowledge-sharing behavior. Also, at Xerox, the worldwide Customer Services organization created a " Eureka Hall of Fame" for technicians who author solutions that resolve the greatest number of problems. It also created a " Validator's Hall of Fame" for the second level engineers who test the solutions submitted by the technicians for validity. Hall of Fame members receive cash awards and recognition.

• Hewlett Packard Consulting: Senior management made explicit the desired behavior of employees, in their "vision" statement: "Our consultants feel and act as if they have the knowledge of the entire organization at their fingertips when they consult with customers. We will recognize those consultants that share and those that leverage other's knowledge and experience as most valuable members of the HP team."

Leadership commitment is further evidenced by the Knowledge Masters Award, which recognized excellence in knowledge creation and use. This prestigious award recognized employees whose knowledge mastery best exemplified the culture of balancing innovation with reuse; and contributed to significant and measurable business impact. The nominations for these awards were accompanied by written stories of why the individuals were being nominated. The stories not only reflected the growing understanding for the concepts and application of knowledge management but also provided stories that demonstrated the business value of knowledge sharing.

• Unilever's Path to Growth awards recognize outstanding achievements in meeting the Company's strategic goals. There are three award categories, embracing broader employee and business achievements. The three categories recognize:

• Measurable significant growth in either revenue or margin • Big ideas with demonstrable potential for future growth in either revenue or margin, and • "Enterprise culture in action" - single-minded passion for winning, liberating rigor and connected

creativity.

This award is for collaborative team effort to create and share knowledge to innovate and win! The "enterprise culture in action" award could be entered by every one from employees in HR or Research to those in manufacturing, distribution or in the Corporate Center. The winner of this award could be anywhere in the business. As long as their behavior or venture could be applied in other parts of the business with significant benefit, it need not be a large-scale initiative. It could, for example, be a new way of approaching a process or system that has been in place for a number of years.

Some of the steps that HR could take to this end are:

Performance Development Planning (PDP). In HLL, PDP incorporates "knowledge - Development & Sharing” as one of the key competencies to be monitored and developed. Some of the key competencies linked to knowledge development and sharing are

• Learning from experience (actively searching for others ideas, willingness to discuss failures and openness to feedback)

• Developing others (commitment to share insights, help others shine, focus on future)

• Team commitment (promoting cooperation and trust, open and active participation in team projects, task forces, communities of practice / Networks, upholding team's ideas and proposals).

• Develop a mechanism to communicate effectively what knowledge-related behavior is expected from the employees. Identify knowledge as a key competence and recognize and rewards those who develop and excel in this competence.

• Share with all employees, success stories of collaborative effort and knowledge sharing, through House Magazine, workshops etc.

• Make KM part of the Company training modules.

• Hold visible knowledge sharing events like " Knowledge Fairs." Such events will energize the whole organization -- where high visibility is provided for excellent contributions to knowledge capture creation and sharing.

Conclusion

Transformation into knowledge driven organization is essentially a people related issue. In today’s changing scenario, knowledge Management is essential to make the organization innovative and productive.

HR has a key role to play in nurturing and strengthening knowledge management through "learning initiatives" and "culture change initiatives." HR is best placed to play the role of an effective facilitator, and give positive reinforcements for Knowledge Management through organizing visible knowledge sharing events and strengthening skill and competency development of employees. HR should put in place specific processes and structures for KM and the necessary monitoring systems. The role of HR professionals in the organization should be really to take up the challenge to create and manage knowledge.

References :

Armistead, C. (1999). Knowledge Management and Process Performance. Journal of Knowledge Management, 3 (2), ( pp. 143-154) Albert, S. and Bradley, K. (1997): Managing Knowledge: Experts, Agencies and Organizations, Cambridge University Press, Cambridge University Press, Cambridge, 1997. Davenport, T. H., DeLong, D. W. and Beers, M. C. (1998). Successful Knowledge Management Projects. Sloan Management Review, 39 (2), (pp. 43-57) Kleiman, Lawrence S. Human Resource Management: A Tool for Competitive Advantage. Cincinnati, OH: South-Western College Publishing, 2000. K. Asahwathappa, Human Resource Management, 4th ed., Tata McGrawHills,New Delhi,2005 Mejia Gomez, and Cardy Robert, Managing Human Resources, Pearson Education, New Delhi, 2001. Mathis, Robert L., and John H. Jackson. Human Resource Management. 11th ed. Mason, OH: Thomson/South-Western, 2006 Pattanayak Biswajeet HRM PHI. Werther W.B and Davis Keith, Human Resource Management/personnel Management Newyork: Tata McGrawHills

The Art of Body Language By- Dr.Asma Rizwan Asst.Professor (Business Communications)

People’s Institute of Management & Research

Abstract

Body language is the non-verbal movements we make as a part of how we communicate, from waving hands to

involuntary twitching of facial muscles. Body language is an easier way of expressing feelings than spoken

language. Experts believe that nearly 90% of our communication is non-verbal. So the (digital) spoken

language is limited, which is why we need the (more analogue) body language so much in our communication.

Almost all verbal communication is digital and practically all body language is analogue. Spoken language and

body language go mostly hand in hand.

Ever since Charles Darwin’s The expression of the emotions in Man and Animals was published in 1872, the art

of body language has developed into a full fledged science. Modern researchers around the world have since

validated many of Darwin’s ideas and observations. In the seventeenth century Francis Bacon wrote in one of

his essays that

‘As the tongue speaketh to the ear, so the hand speaketh to the eye’, thereby recognizing the value of gesture or

body language as a medium of communication. Many poets have utilized body language as an important tool in

their poetry especially in interpreting romantic gestures. This famous quote of William Shakespeare

demonstrates this fact.

Fie, fie upon her!

There’s language in her eye, her cheek, her lip,

Nay, her foot speaks; her wanton spirits look out

At every joint and motive of her body.

Body language is the quiet, secret and the most powerful language of all.

According to experts, non-verbal language communicates much more than what we really mean, while words

themselves contribute a mere 7%. It is a language without words and perhaps the loudest display in a non-

verbal communication. We have all heard the saying that “what you say is not as important as how you say it.”

One’s voice, its quality and tone, as well as the syllabic stress and other voice characteristics, is probably the

most important form of nonverbal communication. Words are not everything though, especially in the work

force today. Facial expressions, the movements of the hands and body, and the way we dress all convey

information about us. Today's workplace is an extremely competitive environment. Making the right

impression in today’s society is very important in reaching an ideal level of success. Well, many people

overlook this crucial communication tool called the nonverbal communication.

“Sixty-five to ninety percent of every conversation is interpreted through body language,” says Ray

Birdswhistell, author of many books on body language (Warfield) and the pioneer in the field of non-verbal

field of communication. Few people realise that up to 60% of the information that we convey to others is

nonverbal. Hand gestures, facial expressions, eye contact, tone of voice, body posture and all types of

mannerisms convey a message, a mood, or an emotion (Nonverbal Communication). According to, Professor

Ray Birdswhistell, ‘more human communication took place by the use of gestures, postures, position and

distance than by any other way’. Communication would fall flat without the aid of body language. No matter

where we look, non-verbal communication is at the heart of every message conveyed or received whether in

face-to-face encounters, or telephonic conversations. Its importance can be judged from the very fact that

kinesics experts sit and watch the arrivals of heads of state and other dignitaries at the airport or important

venues to interpret their body language like a live commentator watching a cricket match in a cricket stadium.

As we see that right from the posture of President Bush or the handshake of President Musharraf, the experts of

body language spell out the outcome of a summit talks or treaties much before the press gets the official text. In

the present day scenario of globalization the art of body language has gained enough importance to teach it as a

full subject to the college students. Non-verbal communication plays a hugely significant role in inter-personal

relationships and Image Consultants worldwide are minting money teaching them to corporate heads. Every

body wants to master this art or learn the ‘etiquettes’, which in French translates as 'label'. Surely nothing

'labels' us so effectively in the eyes and minds of our friends, acquaintances and business associates as the way

we conduct ourselves - the manners, gestures, style and courtesy we display in our daily lives.

Thus we speak two ‘languages’: one using words, the other body movements. Each is powerful and

eloquent in its own way. Each has a separate dictionary and script, and plays a very specific role in shaping our

personality, then why don’t we pay enough importance to teaching of body language in the classrooms? Or do

we really need to 'teach' them in the classroom? For me the answer is yes. Although we do use and interpret all

these factors in our first language communications, I believe that they aren't necessarily automatically

transferable to the language we are learning. It could prove to be an important tool in the hands of our students

for their future

Features of non verbal communication

The main components of non-verbal communication are:

• Kinesics (body language) Body motions such as shrugs, foot tapping, drumming fingers, eye

movements such as winking, facial expressions, and gestures

• Proxemics (proximity) Use of space to signal privacy or attraction

• Haptics Touch

• Oculesics Eye contact

• Chronemics Use of time, waiting, pausing

• Olfactics Smell

• Vocalics Tone of voice, timbre, volume, speed

• paralanguage Grunting, mmm, er, ah, uh-huh, mumbling

• Silence Pausing, waiting, secrecy

• Posture Position of the body, stance

• Adornment Clothing, jewellery, hairstyle

• Locomotion Walking, running, staggering, limping

Eye contact can have a very significant influence when you are interacting with them. ‘The eyes of men

converse as much as their tongues, with the advantage that the ocular dialect needs no dictionary, but is

understood the world over,’ said Emerson. They are the windows of our souls and mirror of our heart.

• It plays an important role in connecting immediately and in establishing rapport with people. Avoiding

eye contact is associated with being dishonest

• Eye contact also plays an important role in turn taking during conversation. Among a group of people, a

speaker will often make eye contact with the person he or she wants a response from.

• People who know each other well can communicate mutual understanding with a single look.

• Eye contact is also a way of communicating attraction, the commonest form being ‘winking’

Facial expression is one of the most obvious and flexible forms of communication and can easily convey

mood, attitude, understanding, confusion and a whole range of other things.

Proximity is the study of space or spatial relationships and is quiet a fascinating area of body language. It is

also something that can be easily misinterpreted as it varies culture to culture. The amount of space a person

needs is determined by his personality. For example introverts needs more elbow space than extroverts.

Posture can communicate a number of things. Your posture can convey a whole range of attitudes, from

interest or the lack of it, to degrees of respect or subordination.

Gesture is the visible bodily action by which meaning is represented. They are often used in conjunction

with verbal messages. Each gesture is like a word in a language. Hence it is important not to isolate gestures

from their context and verbal communication.

• Different finger, thumb or hand gestures can convey a range of meanings in different cultures, from

insults to approval or even attraction.

• Many good speakers or storytellers use hand gestures to illustrate their stories.

• It can also form part of punctuation with head nods and hand movements, which relate to the stress,

rhythm and tempo of their sentences.

• Self-touching is associated with hostility and suspicion.

Of the above, body language (particularly facial expressions and gestures), eye contact, proximity and posture

are probably those, which learners most need to be aware of in terms of conveying meaning, avoiding

misunderstandings and fitting in with the target culture. In terms of skills development, non-verbal clues should

not be underestimated when developing both the listening and speaking skills. Like grammatical structures,

non-verbal communication has form, function and meaning, all of which may vary from language to language.

Why it should be taught in the classrooms?

Non-verbal communication (body language, paralinguistic) has been a focus of attention for some time in areas

such as the refinement of presentation skills, developing social skills, and even as a realistic alternative to the

lie-detector test. Relatively little attention, however, has been given in language teaching to non-verbal

communication as a complement to spoken language, though recent trends in neuro linguistic programming

regarding mirroring and parallel body language have filtered into current research and practice. Since it is said

that as little as ten percent of communication takes place verbally, and that facial expressions, gestures and

posture form part of our culture and language, it seems reasonable that we should at least raise learners'

awareness of non-verbal communication in order to improve their use of natural language, increase confidence

and fluency and help to avoid inter-cultural misunderstandings.

So, if nonverbal communication is so important, why shouldn’t there be a course in college to teach students

these critical nonverbal cues? Imagine, for instance, the edge a job candidate would have by knowing how to

make a good first impression and how to portray a stronger self-image. Consider the advantages to a teacher, a

lawyer, or psychologist in knowing how to spot suspected abuse or how to interpret what their students or

clients are saying without words. From handshaking, to eye contact, to conscious or unconscious gestures, the

unspoken language of nonverbal communication often imparts more information than the words that are

actually said. Either being intentional or unintentional, nonverbal communication is passed along through

wordless messages. The key word here is unintentional. Most nonverbal communication is done without

knowledge or through habit. Learning the powerful nonverbal gestures and movements would enhance not only

the self-confidence of the students but also the ways that others respond to them. Lending further support to the

importance of incorporating a nonverbal communication course into a college curriculum is that we now live in

a global economy that crosses cultural boundaries.

Conclusion

Nonverbal behavior is like culture and is passed down from one generation to the next. Different cultures view

dress, body movements, facial expression, eye contact, touch, smell, space and time differently. The college

graduate who recognises these cultural differences is definitely going to have an edge in practically any chosen

field. The international differences in gestures and nonverbal cues are critical to recognize in many situations,

especially when out of one’s own country.

It is extremely interesting to read some of the words and their descriptions in the Nonverbal Dictionary of

Gestures, Signs, and Body Language Cues. A whole New World of insight is opened to those who have an

understanding and grasp of the terms, meanings, and interpretations in this work. The fact that biologists,

anthropologists, linguists, psychiatrists, and others who have studied human communication have extensively

researched the dictionary’s items further supports the need to study nonverbal communication in all majors

(Givens).

Though body language have myriads of nuances that require careful interpretation, it is relatively easier to learn

than other languages because its vocabulary is rather limited. Moreover we do not have to sit down with books

in order to study it as in case of verbal language. We can start learning it by watching people in our free time in

train or bus or by watching TV. This language can be taught as an interesting subject in our curriculum to help

students to master this art. Just as in learning of any other language, body language too requires motivation and

basic competence to master skills. Learning this skill will sharpen our perception in many ways and make

relationship more smooth and constructive. An awareness of the way in which we behave will help us

transform our negative behaviours into positive. The old age adage “actions speak louder than words “ holds

true in this case; it implies that non-verbal behaviours often predominated when it is a matter of influencing

people. College students are always interested in the social aspects of nonverbal communication. In their

personal relationships with the opposite sex or even the same sex, nonverbal communication gives off all sorts

of cues. It will help them to differentiate that ‘winking is not merely a lowering of the lid while holding the

other relatively immobile (Birdwhistell) but an act of flirtation. After extensive research it is difficult not to see

the importance of having insight into nonverbal cues in coaching, in teaching, in law enforcement, and in

international business. Its importance should not be underestimated and left to chance learning. It should be

taught as part of the curriculum in all college majors.

As the global village continues to shrink and cultures collide, it is essential for all of us to become more

sensitive, more aware, and more observant to the myriad motions, gestures, and body language that surround us

each day. And as many of us cross over cultural borders, it would be fitting for us to respect, learn, and

understand more about the effective, yet powerful "silent language".

Source- Published works of body language experts Ray Birdwhistell, Desmond Morris, Allan Pease, and

others.

A STUDY OF PRE AND POST-LISTING VOLATILITY OF AMERICAN

DEPOSITORY RECEIPTS: EVDENCE FROM INDIA

By- Anindita Chakraborty, Lecturer, Navita Nathani, Lecturer Prestige Institute of Management, Gwalior Dr. Umesh Holani, Dean, Institute of Commerce & Management, Jiwaji University, Gwalior

Abstract The globalization of the world's growing capital markets are the result of growing demand for equities,

corporate activities, privatization, advancing technology and economic growth. With the growing economy of

India, financial markets have also accelerated in the past decade in the race of globalisation. Numerous Indian

firms have raised capital by issuing and listing their Depositary Receipts (DRs) on the foreign markets.

Depositary receipts gained popularity in the 1990s. After a slowdown in 2001/2002, years 2003 and 2004

brought a renewed progress of the DR markets. Also Indian companies are gradually becoming aware of the

advantages of DR offerings. This paper empirically examines the impact of international listing on the volatility

of the Indian stocks which are dually listed. To quantify the effects of a ADR issue on the respective actual

shares in the local market, we have considered nine companies which are listed through ADRs in the NYSE

during the period of January 2000 to December 2007. The result of the study shows that creation of a DR

program has a positive impact on the respective actual shares’ value in the post-listing period. The F-test result

also shows that, except three companies ADR listing has no change on the volatility of underlying stock in the

local market. It means that listing in NYSE (New York Stock Exchange) has a positive impact on the volatility

and the volatility decreases after listing in NYSE.

Keywords: ADRs, international cross-listing, volatility

INTRODUCTION

With the financial sector reforms initiated in 1991, Indian stock market has since joined the liberalisation

process. The foreigners were allowed to invest in the Indian capital market under specific guidelines from the

Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI). The inflow of foreign

funds with entry of foreign institutional investors (FII) has transformed the style of functioning of the Indian

capital market. Indian companies were also allowed to issue Depository Receipts (DRs) and Euro-convertible

bonds to the foreigners for raising capital from foreign capital market. Hence began the journey of Indian

companies going abroad with their offering to foreigners to raise the capital for their businesses. The DR’s are

denominated in any freely convertible currency and may be listed on any international stock exchange. As of

30th June 2001 there were 72 Indian companies which have issued and listed their 85 DR programmes on the

foreign markets. Many other Indian companies are planning or are in the process of listing their DR

programmes in the near future.

Cross-border listings or dual-listings or international listings provide a way for companies to tap the

opportunities of a changing global capital environment. Publicly-held companies undertake listings on overseas

exchanges for a variety of reasons. A company may choose to cross-border list to boost its status as a truly

global player, raise debt or equity, increase trading volume, improve shareholder relations, enhance its visibility

among overseas investors and consumers, tap into retail and institutional funds and benefit from changing

global attitudes toward equity investing.

At the beginning only a one-way fungibility of DR’s was allowed, which means investors who bought DR’s

were allowed to convert the same into Indian shares after a hold-up of 45 days from the closing date of the

issue. Once converted, the same were not allowed to be reconverted into DR’s. However the government has

changed the above rule recently and allowed a two-way fungibility of the DR’s, consequent to which a re-

conversion is now allowed of converted DR’s into equity shares.

By listing on an International Stock Exchange a company can enhance its global status. Cross-border listing can

attract media interest in the host country, thereby improving brand awareness and corporate image. This can be

a valuable asset for companies in the consumer products sector and other groups that depend on product or

service recognition and visibility, possibly leading to spill-over benefits for product or service-market sales.

The diversification of a company's shareholder base spreads their financial risk in the same way that

diversifying a portfolio can spread investment risk. This can alter the volatility and liquidity levels of a stock.

For most companies this is a positive development. Thus the DR program includes:

� AMERICAN DEPOSITORY RECEIPT (ADR)

An American Depository Receipt is a certificate issued by a bank in the United States representing a certain

amount of shares of a foreign company on a foreign exchange. They can be traded on American exchanges just

as a domestic stock can be; they make foreign investment much easier for the Americans.

� GLOBAL DEPOSITORY RECEIPT (GDR)

It is a bank certificate issued in more than one country for shares in a foreign company. The shares trade as

domestic shares, but are offered for sale globally through the various bank branches.

� EURO CONVERTIBLE BONDS

Euro convertible bonds are securities, usually bonds that can be converted into equity shares and are

denominated in Euros.

REVIEW OF LITERATURE

Domowitz, Glen and Madhavan (1998) proposed a model in order to account for differential effects on

volatility resulting from the individual stock’s market and they have taken a sample of Mexican ADRs. The

model shows that the effects of simultaneous listing of stocks in more than one market cannot be predicted to

be uniform, and that they depend, on the quality of inter-market information linkages. The effects can be

attributed to benefits of increased inter-market competition and the costs of order flow migration, both

associated with market fragmentation. Costa et al (2000) examined the seven Brazilian public corporations that

were listed through ADRs in US and found that the volatility of the underlying stocks was reduced after the

beginning of ADR trading. Pasquariello, Yuan and Zhu (2005) explored the relationship between the

likelihood and clustering of ADR issuance activity and past and future currency returns. The results depicts that

the non-U.S. companies shows economically and statistically significant timing ability in the corresponding

exchange rate markets over and above the timing ability in local and U.S. stock markets. They found the effect

of the exchange rate on market valuations in the issuing currency is more important and make them more

selective in choosing the timing of an ADR issue.

Admati and Pfleiderer (1988) predicted that returns are more volatile when trading is larger, because both

informed and liquidity traders prefer to trade when volume is large. Katerina (2005) showed that creation of a

DR program had a positive impact on the underlying shares’ price and regarding liquidity an average daily

multiple for all the stocks reached very high level, which represents an average increase in the daily trading

volume. Further the DR and underlying share’s prices were perfectly correlated; hence there were no profitable

arbitrage able which shows there was perfect markets integration. He said that a DR issue lowers cost of capital

to the company, for the reason of enhanced liquidity and reduced the risk exposure. The lower cost of capital

implies higher shareholder value, which is reflected in the DR price.In the study of French and Roll (1986) it

was found that volatility is higher during trading hours. On an equivalent hourly basis it was found that

volatility during trading hours on the NYSE is far greater than during weekend non-trading hours and conclude

that the greater variance during trading time is due to the arrival of private information rather than public

information. The further studies done by Oldfield and Rogalski (1980) and Stoll and Whaley (1990) also

support this fact. While Houston and Ryngaert (1992) showed that during the weekend the pattern of volume

is affected and volatility during the week is also get affected but that the total volume and volatility over the

week remains constant.

Bayar & Onder (2005) analyzed that the changes in the volatility and liquidity of French stocks are examined

before and after they were cross listed on the German electronic market and found mixed results. It was also

found that for many stocks volatility increases and liquidity declines after cross listing. Chelley-Steeley (2003)

studied the behavior of returns of securities listed on both the Paris Bourse and SEAQ-International in London

and found that prices in London adjust to changes in their fundamental value more slowly than Paris prices

despite the arbitrage between the two markets. Chan at el. (1996) examined the effect of public information on

the volatility and found that the daily volatility of European stocks are more than American matching stocks to

accrue before the end of the European business day. They said that public information affect volatility and

investors are more willing to trade at the open market when competing exchange is open. The reasons may be

opening prices are less noisy or trading is cheaper because of competition. Their findings also revealed that the

daily volatility of European stocks accrues during the early morning than for American stocks with similar

daily volume and volatility. Bid-ask spreads are also larger in the morning for foreign stocks relative to later in

the day because there is more uncertainty about demand.

Foester and Karolyi (1999) revealed that the volatility of the firms’ share prices in their local markets declined

significantly after cross-listing. While in the study of Barclay et al (1990) it was found that there no effect on

the level of return variances of 16 US stocks listed on Tokyo Stock Exchange. But in case of the study done by

Kumar.... on the Indian stocks it was revealed that there was no significant impact of foreign listings on the

securities listed through DR programs in the major foreign stock exchanges on the volatility of the underlying

domestic shares of the foreign listed Indian firms. Newton et al (1998) studied Brazilian ADRs and suggested

that ADR listings reduced the volatility of the underlying domestic stocks. Karolyi (2002) showed the cross-

listing from emerging markets does not have a favourable impact on the development of the emerging capital

markets. He further evidence that the process of international market integration through international cross-

listings is more complex with unexpected negative side effects related to the quality of the home market.

Reese and Weisbach (2002) examined the relationship between cross-listing, shareholder protection, and

subsequent equity offering and they found that firms from countries with weak shareholder protection are

willing to cross-list and hence give up some private benefits of control because of stringent U.S. securities laws

as they need to raise equity capital. Hargis and Ramanlal (1998) conclude that international cross-listings

have a positive effect on home market trading volume. Sanvicente, A. Z. (2001) showed that ADR listing does

not cause order flow migration but there has been eventual declines in the volume traded in the domestic

market which were compensated by trading in the ADR market, meaning that there has been migration to the

latter market, or are more than compensated by new trading in the ADR market. Ting and McInish (2002)

showed that trading in Malaysia is significantly lower on Singaporean holidays than on days that are not

Singaporean holidays during the period of study. He further tested the order flow diversion hypothesis and

found that after the termination of trading of Malaysian shares in Singapore, trading volume increased

significantly in Singapore, but not in Malaysia.

OBJECTIVES OF THE STUDY

1. To evaluate the volatility of security listed through ADRs.

2. To open new vistas for further research.

RESEARCH METHODOLOGY

The main purpose of the study is to examine the impact of the international listings of Indian securities on the

volatility of underlying stock in the domestic market due to their listing in the New York Stock Exchange. The

study was descriptive in the nature and the total population includes the securities listed through Indian ADRs.

Hence the Indian ADRs are the sampling elements and the sampling frame of the study was from 2000-2007.

The quota sampling technique was used to analyze the data. The sample size includes nine Indian ADRs which

are listed in New York Stock Exchange (NYSE). The event-study methodology was used for analyzing the

impact of international listing on the volatility of the sample stock. The stock price volatilities after listing were

compared with their volatilities prior to the international listings. Daily prices of individual ADR-listed

securities for an event window of 100 days before and after listing were taken from the official website of NSE

and BSE. The pre-listing period starts 100 days before the listing day to 1 day before the listing and the post-

listing period is from 1 day after the listing to 100 days after the listing. Data was analyzed through standard

deviation and F-test.

Ho= There is no significant difference in volatility of particular stock at Pre-Listing & Post-Listing period.

RESULTS AND DISCUSSIONS

The volatility of the stocks which means the relative rate at which the price of a security moves up and down is

shown in table 1. The table reports about the standard deviation before and after listing of the individual stocks.

While the F-test was applied to determine whether there is a significant difference between the pre-listing and

post-listing volatility of the individual securities.

Table 1: Comparison of Volatility based on Standard Deviation of individual Stocks before and after

listings

Stock

Name

Standard Deviation F-test

(5%

significance) Pre-

Listing

Post-

listing

ICICI BANK LTD 5.574858 3.413863 2.666708

VSNL LTD 5.735158 8.221488 2.054992

WIPRO 5.01998 4.680511 1.150271

DR. REDDY LTD 2.592294 2.930159 1.277656

HDFC BANK LTD 2.465002 2.091897 1.388526

SATYAM

COMPUTER LTD

5.674544 4.851607 1.368015

TATA MOTORS LTD 2.867651 3.245168 1.280625

PATNI COMPUTER

LTD

2.361242 2.025538 1.35894

STERLITE

INDUSTRIES LTD

2.659836 3.831426859 2.074969

The result on the basis of standard deviation shows that three companies namely, VSNL Dr. Reddy and Sterlite

Industries Ltd. are more volatile after listing. While from the sample, six companies are less volatile after their

listing in the international stock exchange. For the given values of F, the values of ICICI Bank Ltd. (2.666708),

VSNL (2.054992) and Sterlite Industries Ltd. (2.074969) are more than the Standard value, 1.39, at 5% level of

significance, so the null hypothesis in that case is not accepted. This shows that there is significant difference in

the post and pre listing volatility on these stocks while the combined effect is not significant. The results of the

study are similar to the study of Newton et al (1998), Rodrigues et al (1999), Costa et al (2000) and Kumar

(2006) which indicates that the volatility of the underlying domestic stock have been reduced due to

international listings.

CONCLUSION

The globalisation of the Indian capital market has changed the present scenario of the capital market and it is

reflected in the best international practices followed by the stock exchanges of India. This integration of the

capital market is also beneficial for the companies as most fund managers consider there is institutional interest

in international listing. The international listings help a company to target new shareholders for fresh capital.

Though, all cross-border listings are not beneficial in institutional interest as there always the possibility that a

share placement might affect liquidity and share price in the domestic market. The proposed study concluded

that international listings have differential effects on the volatility of underlying stocks in the domestic market.

The study also revealed that volatility has been declined for the sampling elements that were listed through

Depository Receipts Program in the NYSE during 2000-2007. Although international listing has widened the

market for both the companies and the investors but it has differential effects for the companies also.

REFERENCES:

1. Admati, Anat R., and Paul Pfleiderer (1988). A Theory of Intraday Trading Patterns: Volume and Price

Variability. Review of Financial Studies, 1, 3-40.

2. Asli, Bayar & Zeynep Onder (2005). Liquidity and Price Volatility of Cross-Listed French Stocks. Applied

Financial Economics, 15, 1079-1094.

3. Barclay, M.J., R.H. Litzenberger and J.B. Warner (1990). Private information, trading volume, and stock-

return variances. Review of Financial Studies, 3, 223-253.

4. Chan, K.C., Wai-Ming Fong, Bong-Chan Kho and Rene M. Stulz (1996). Information, trading and stock

returns: Lessons from dually-listed securities. Journal of Banking & Finance, 20, 1161 – 1187.

5. Chelley-Steeley, Patricia, (2003). The Trading Mechanism, Cross-Listed Stocks: A Comparison of the

Paris Bourse and SEAQ-International, Journal of International Financial Markets, Institutions and Money,

13(4), 401-417.

6. Costa, N.D. Jr., R.P. Leal, C.F. Lemme & P. Lambranho (1997). The Impact of Cross-Listings: An Event

Study of Brazilian ADRs. Tenth World Productivity Congress World Confederation Of Productivity

Science, School Of Industrial Engineering, Universidad Del Mar.

7. Domowitz, Ian, Jack Glen, and Ananth Madhavan (1998). International Cross-Listing and Order Flow

Migration: Evidence from an Emerging Market. Journal of Finance, 2001-2027.

8. Foerster, S.R. & G.A. Karolyi (1999). The Effects of Market Segmentation and Investor Recognition on

Asset Prices: Evidence from Foreign Stocks Listing in the United States. Journal of Finance, 54, 981-242.

9. French, K.R. and Roll, R., (1986). Stock Return Variances: The Arrival of Information and the Reaction of

Traders. Journal of Financial Economics, 17, 5-26.

10. Hargis, K., and P. Ramanlal (1998). When does internationalization enhance the development of domestic

stock markets? Journal of Financial Intermediation, 7, 263-292.

11. Houston, J.F. and Ryngaert, M.D., (1992). The Links between Trading Time and Market Volatility.

Journal of Financial Research, 15, 91-100.

12. Karolyi, G. Andrew (2002). The Role of ADRs in the Development and Integration of Emerging Equity

Markets. Working Paper. Ohio State University.

13. Kumar, Manoj (2006). The Impact of Indian Overseas Listings on the Volatility of the Underlying Shares.

Retrieved from http://ssrn.com/abstract=951657 on May 20,2008.

14. Oldfield, G. and Rogalski, R.J., (1980). A Theory of Common Stock Returns over Trading and Non-

Trading Periods. Journal of Finance, 35, 729-751.

15. Newton, C.A.C. Jr., P.C.R. Leal, F.L. Celso & P.L.P Lambranh (1998). The market impact of cross-listing:

the case of Brazilian ADRs. Emerging Markets Quaterly, 2, 39-45.

16. Pasquariello, Paolo, Yuan, Kathy and Qiaoqiao Zhu (2005). Currency Market Timing and International

Capital Structure: Evidence from ADR Issuances. Retrieved from

www.ccfr.org.cn/cicf2005/paper/20050201110616.PDF on April 31, 2008.

17. Reese, William A. and Michael S. Weisbach (2002). Protection of minority shareholder interests, cross-

listings in the United States, and subsequent equity offerings. Journal of Financial Economics, 66, 65-104.

18. Sanvicente, Antonio Zoratto (2001).The market for ADRs and the quality of the Brazilian stock market.

Retrieved from http://ideas.repec.org/p/ibm/finlab/flwp_42.html on May 22, 2008.

19. Stoll, H.R. and Whaley, R.E., (1990). Stock Market Structure and Volatility. Review of Financial Studies,

3, 37-71.

20. Ting Lau, Sie; McInish, Thomas H. (2002). Cross-listings and home market trading volume: the case of

Malaysia and Singapore. Journal of Financial Research, 25(4), 477-484.

ANNEXURE

Table 1: List of Indian ADRs listed on New York stock exchange

S. No. Companies/Securities Listing Date

1 ICICI Bank Ltd. 28 Mar 2000 (IPO)

2 VSNL 15 Aug 2000 (ADR)

3 Wipro 19 Oct 2000 (IPO) (ADR)

4 Dr. Reddy Ltd. 11 Apr 2001 (IPO) (ADR)

5 HDFC 20 Jul 2001 (IPO)

6 Satyam Computer Services Ltd. 15 May 2001 (IPO) (ADR)

7 Tata Motors Ltd. 27 Sep 2004

8 Patni Computer Ltd. 08 Dec 2005 (IPO)

9 Sterlite Industries Ltd. 19 Jun 2007 (IPO)

MANAGEMENT OF STRATEGIES FOR GLOBAL BUSINESS

By- Govind B Dave Sr.Lecturer Anand Institute Of Management

INTRODUCTION

Brands sell. Brands endure. Brands are strategic assets. Brand building, as companies know it today has

long been acknowledged as the key to wealth creation. The proliferation of consumer goods in the last two

decades has led to the development of branding as the essential definitive tool for competitive differentiation.

Technology has never really played a great role in the success of commercial enterprise branding until very recently. It is because technology is so freely available that products parity is easily achievable. In today’s emerging competition, size no longer matters and location is not the mantra of retailing. Standing out from the crowd is an even bigger challenge than before as more and more players’ crowd onto a more level playing field.

The key to standing out from the crowd is still the development of a powerful brand image, but the

nature of branding has itself been forced to change. What is emerging from this metamorphosis is a new kind of

brand experience of the consumer, offering hi-tech and hi-touch brand interaction.

WHAT IS A BRAND?

Many companies have learned to their sorrow that brand is not just trademark, product, logo, symbol or

name, but it is a name of marketable product to which relevant and unique set of associations and benefits, both

functional and emotional are attached. The crores of rupees companies spend on corporate identify projects are

often wasted because there is no brand strategy behind them. Thus, consumers experience the same dull and

irritating service, mediocre or sub-quality products and a less-than-satisfactory customer experience. Similarly,

having a good name does not guarantee success, as companies like HLL and P&G discovered by their

experience. Many other companies have placed their faith in the advertising rupee, hoping that mass

communication will do the trick. There are still many that do not realize that all of these elements are necessary

but not sufficient to produce a great brand.

One of the most useful comments on the difference between mere products and brands is attributed to

Stephen king, who said: “A product is something that’s made in a factory, a brand is something bought by

consumers. A product can be copied by a competitor, a brand is unique. A product can be quickly outdated; a

successful brand properly managed, can be timeless.”

Brands provide:

• A choice

• A means of simplifying the decisions

• Quality assurance

• Risk avoidance

• Self expression

o Social status

o Success

o Aspiration

o Love and Friendship

o Personality

BRAND EQUITY

• Brand Equity is the combination of ad-awareness, ad-viewer ship, image or perceived quality and

association of symbol in consumer’s mind.

• The brand’s in life line is the brand equity. If a brand generates sharp and highly focused association in

consumer’s mind, then it has got equities. The equity is not built just by advertising but combination of

ad, product and distribution.

• It is the totality of the brand’s perception, including the relative quality of the products and services,

financial performance, customer loyalty, satisfaction and overall esteem towards the brand. Brand

equity relates to how the customers, employees and all the stakeholders feel about a brand.

The brand equity can be studied under three approaches like cost based, price based and consumer based.

Cost Based

• Historical cost

• Replacement cost

• Market value

• Discounted cash flow

• Brand contribution

• Inter-brand method

Price Based

• Price premium

• Equalization price

• In different price

Consumer Based

• Brand knowledge

• Attitude rating

• Blind test

BRAND LOYALTY

Loyalty is at the heart of equity and is one of the important brand assets. Brand loyalty is a conscious or

unconscious decision expressed through intention or behavior to repurchase a brand continually. When the

consumer buys with respect to products features, price and convenience, with little concern to the brand there is

likely little equity. But, if the consumers prefer the brand even at the face of competitors with superior features

and offers, then brand is said to have high brand equity. Loyalty reflects the consumer’s attitude towards the

brand, especially when there is a change, either in price or product features. As the brand loyalty increases, the

vulnerability of the customer base to competitive action gets reduced.

Each level of brand loyalty provides different equity to the brand. Marketers adopt various strategies

and programs at different levels with the objective of creating trusted loyal customers.

LOYALTY REDEFINED

In the relationship world, when we speak of loyalty we are ultimately speaking of commitment.

Although it is tempting to define loyalty as simply repurchase, marketers often have little power over the

variables and constraints directly controlling how customers pass through the purchase environment. In

addition, repurchase is only one of several outcomes that can be described as loyal behaviors; some refer to

sales volume and share, and some to profitability.

A Dave Aaker states in his recent Planning Review article “Managing the Most Important Asset: Brand

Equity,” strong brands certainly have loyal customer. But are such brands fully taking advantage of the benefits

these customers offer? From customers perspectives, loyalty is an intuitively adopted strategy, to maximize the

value of their consuming skills and win the cost/utility game (reduce risk, increase information processing

effectiveness, and gain tangible frequent-user benefits).

WHY BRAND LOYALTY?

Brand Loyalty and its Strategic Importance

NEED FOR BUILDING BRAND LOYALTY

Brand Loyalty

Reduced Marketing Costs

Trade Leverage

Attracting New Customers

Time to Respond to

Competitive Threats

PRICE SENSITIVE

HABITUAL

SATISFIED

FRIENDLY

COMMITTED

LEVELS OF BRAND

BRAND LOYALTY

BRAND PREFERENCE

BRAND

ACCEPTIBILITY

BRAND

• Modern customer considers himself as an individual with a unique set of characteristics and resent

being seen just as a part of the universe.

• Tremendous sense of freedom and choice has become more unpredictable in their tastes, preferences

and needs

• New age customer is empowered with the knowledge of his options. Customers have more information,

more choices, as a result higher expectations

• Phenomenal changes in demographic, psychographic, geographic aspects, and change in the attitude

lead to high level of involvement and expectation from products and services.

• Customers now want companies to provide something beyond high-quality products and reliable

service. They want more of human dimensions in transactions.

Consumers Will Pay Premium Prices for Better Products

• Ninety-six percent of consumers say they will pay a premium to buy at least one type of product.

• Almost half will pay “as much as they can” for certain items.

• Seventy-six percent say some products are just too important to scrimp on.

• Fifty-one percent say that even when the economy is bad, they will spend on “affordable luxuries.”

• Fifty-eight percent concentrate spending on a few categories that matter the most to them.

Source: BCG Harris Interactive Survey of Adults with More Than $50,000 in Household Income, November 20002.

A PERFECT SQUARE / CUBE

Demand Drivers Supply Drivers

• Higher real incomes • Entrepreneurs on personal journeys

• Rising home values • Changes in the dynamics of

retailing

• Cash windfall courtesy of discount

retailer

• Access to flexible supply-chain

networks and global resources

• Role of women and changing family

structure

• Higher levels of taste, education, and

experience

• Emotional awareness and

“permission” to spend

Source: BCG Analysis

B

R

A

N

D

L

O

Y

A

L

T

Y

TRADITIONAL VIEW

RELATIONSHIP VIEW

Source: Jeff Hess and John W. Story, Fidelity Factor, Marketing Management, Nov. Dec. 2005,pp.47

BRAND REPOSITIONING: A STEP TOWARD BRAND LOYALTY

Repositioning or repositioning is changing the positioning of a brand. With a particular positioning, a brand

may work say 3-5 years & then sales start declining. In case of Cadbury’s one particular positioning ‘For kids’

worked for 23 years (1970-1993). Similarly the positioning like ‘Tandurusti Ki Raksha’ worked for Lifebuoy

for 40 years (1960-2000 AD). However the brands which were launched in 1990s & 2000s require re-

positioning due to changing need of consumers. If a marketer does not respond quickly to market needs, the

brand may perish. A brand could be repositioned in following ways.

• Increasing relevance to customer

• Highlighting more occasions for usage

• Identification of appropriate position

• Making the brand serious

• To counter attack on falling sales

• Inducing or creating new customers

• Highlighting as most contemporary brand

Satisfa Functional

Brand image

Service and

Product and

Satisfaction Functional Connection

Brand image And reputation

Service and guarantees

Product and pricing

Trust

Personal Connection

Commitment

• Differentiating with competitor’s brands

• To sustain changed market conditions

Sr

No.

Company Product Brand Earlier

Positioning

Repositioning

1 Cadbury’s Drinking

Chocolate

Cadbury’s

drinking

chocolate

Beverage before

going to bed

like, ‘good

night cap’

Happiest time of

the day since you

may consume

anytime

2 Cadbury’s Dairy Milk

Chocolate

Cadbury’s

Dairy Milk

Fun for kids Anybody

anytime, ‘Khane

walonko khane

ka bahana

chahiye’

3 Parle Biscuits Monaco

Biscuits

Perfect salted

(plain)

Excellent plain,

Terrific with

Toppings (plain

& Topping)

4 Paras Pain Bam Moov Waist ache Waist & back

ache

5 P & G Pain Bam Vicks Body Pain Cold & pain

6 Knoll Cream Burnol Curing burns Cures burns, cuts

& gashes, thus 3

in 1

7 R & C Antiseptic

Liquid

Dettol Prevents cuts,

gashes from

developing

sepsis

After-shave,

washing babies

clothes

8 Balsara Cream Odomos Indoor Indoor &

Outdoor

9 Tat chemicals Soap Sunlight

washing soap

Whiteness soap For coloured

clothes also

10 Titan Watches Sonata, Raga Watch with

Elegance

Watch as a gift

11 P & G Cough Drops Vicks cough

Drops

Cough drops Adult candy

12 Nokia Handset Nokia Mobile Perfect Mobile Mobile phone

Telephone

service

plus torch

Source: M. V. Kulkarni, “Managing Brands Over Time, Brand Positioning & Consumer Behaviour”, Brand Marketing Management, Everest Publishing House, pp.

201

PERSPECTIVES ON CUSTOMER LOYALTY

• Loyalty as primarily an attitude that sometimes leads to a relationship with the brand.

• Loyalty mainly expressed in terms of revealed behaviour (i.e. the pattern of purchases)

• Buying moderated by the individual’s characteristics, circumstances and / or the purchase situation.

LOYALTY RESEMBLES HABIT

What gives poignancy to the concept of customer loyalty is the supposed justification it gives for

managers to spend dollars on CRM programmes and the costly customer databases that support these.

However, the critics argue that loyalty, both attitudinal and behavioural, for most customers is quite passive and

resembles habit rather than serious commitment. And also, they assert, that there is little or no evidence that

any changes in customer behavior justify the enormous expenditure on these programmes.

Supporters of loyalty programmes have in mind Model 1, where the programme is seen to reinforce

CBC – type outcomes. Or they envisage a combination of Models 3 and 1, where customers with no loyalty

(CBB – types) are converted into single – brand loyal (CBC – type) because of the customer benefits of the

programme. Critics favour the multi-brand divided loyalty model (Model 2) and assume that most of the

customers are CBA type who are not strongly swayed by the programme.

TRUST BUILDS BRAND LOYALTY

CUSTOMER SATISFACTION, DELIGHT OR TRUST!!!

CUSTOMER SATISFACTION

Satisfaction reflects a person’s comparative judgments resulting from a product’s perceived

performance (or outcome) in relation to his or her expectations. If the performance falls short of expectations,

the customer is dissatisfied and disappointed. If the performance matches the expectations, the customer is

satisfied.

CUSTOMER DELIGHT

If the performance exceeds expectations, the customer is highly satisfied or delighted.

CUSTOMER TRUST

Trust is at the center of customer relationship phenomena, and is the key to understanding relationship[s

of a personal character. Trust is an acknowledgement of brand motivation. It’s the powerful idea that a brand

has its customers’ best interests in mind, and that it’ll do whatever it takes to make them happy. Trust lives in

the dissatisfied customer happily marching into a favorite store, fully expecting a swift and peaceful resolution;

it is absent in the dissatisfied customer anticipating conflict and aggravation.

TRUST-BASED COMMITMENT MODEL

Source: Jeff Hess and John W. Story, Fidelity Factor, Marketing Management, Nov. Dec. 2005,pp.47

BRAND LOYALTY THE ROAD AHEAD…

Position ‘Brand Loyalty’ to the center of strategic planning. To be truly effective, customer loyalty must be at

the heart of your overall business strategy and not just an add-on to your marketing strategy. It must be the

driving force behind your enterprise.

With customer loyalty at the center of your business strategy, it is embedded in everything you do.

Living the brand becomes a clearer organizational driver. And all other strategies are developed with the

explicit starting point and end goal of customer loyalty (and its array of behaviours and attitudes). (See the

below figure) Resources are reallocated, not added on.

Does this mean abandoning your other business strategies? Absolutely not. Whirlpool Corporation, in

its 2004 annual report, articulated how customer loyalty had become the core of its strategy, executed through

its operations and organizational strategies: “Moving the core of our strategy to the next level means focusing

our efforts on creating unmatched levels of customer loyalty for our brands… world-wide. Wining and

retaining customers, we believe, is increasingly based on the reputation of our brands and the experience

consumers have with them over their lifetime of ownership. “The ability to earn this loyalty requires that we

consistently provide consumers with innovative solutions to meet their daily needs and lifestyles. We must

provide them with high-quality, competitively produced products that deliver, and build upon, the positive

experience during each step of the ownership cycle. “We do this by partnering with the best added value trade

partners and service providers. We also are increasingly staying in touch with our customers by connecting

with them directly during their ownership and building this brand relationship over time.”

Whirlpool described how every aspect of its business is responsible for customer loyalty, including

product development, quality, experience management, relationship management, trade partners, service

providers, culture, and values.

Brand

Behaviors

Trust

Satisfaction

Personal Connection

Functional Connection

Customer

Behaviors

Relationship Conditions

Relationship Conditions

Source: Lawrence A. Crosby and Sheree L. Johnson, The Heart of your Strategy, Marketing Management, Sep. Oct. 2005, pp.13

Operations

strategy

Quality

Strategy

Customer service

strategy

Communications

strategy

Product

strategy

Human resources

strategy

Customer loyalty

PITCHING TO THE RIGHT CUSTOMERS – THE CARREFOUR WAY

By- Dr. U. K. Neogi, Director

People’s Institute of Management & Research

"For Wal-Mart, Carrefour is the ideal target. Carrefour's business-to-consumer strategy is much more ambitious than its competitors"

Laurence Hofmann, an industry analyst at Societe Generale in Paris

MAHATMA GANDHI’S DEFINITION OF CUSTOMER

A customer is not an outsider to our business. He is a definite part of it. A customer is not an interruption of our work. He is the purpose of it.

A customer is doing us a favour by letting us serve him. We are not doing him any favour.

A customer is not a cold statistic; he is a flesh and blood human being with feelings and emotions like our own.

A customer is not someone to argue or match wits with. He deserves courteous and attentive treatment.

A customer is not dependent on us. We are dependent on him.

A customer brings us his wants. It is our job to handle them properly and profitably - both to him and us.

A customer makes it possible to pay our salary, whether we are a driver, plant or office employ

- Gandhi

KEY NOTE

To increase the market share, it is pragmatic to pitch to the right customer at the right time, with the right product at the right place.

Background of Carrefour

France based Carrefour, is today the first largest international retailer in Europe and the second largest in the

world (after Wal Mart). Carrefour means junction or crossroads, in French.It was the visionary approach

insight and careful market study of Fournier and Defforey families (Marcel Fournier and Denis Defforey) that

brought into existence the Carrefour Group in 1957.

The concept of ‘Hypermarket’ is the gift of Carrefour group.It’s first hypermarket came up in France in 1963

and it spread out globally beginning its first hypermarket in Belgium in 1969. Today Carrefour operates in 29

countries and regions and has about 14,991 stores.

The three major markets are Europe, Latin America and Asia. . It is popular in Columbia, Brazil, Dominican

Republic, Argentina and UAE, the domestic market being in France.

Market Survey

Proper market survey goes a long way in determining which type of customers and in which areas or regions,

would be interested in buying the product that is offered for purchase.

Similarly, the nature of related services required for the marketing of the product is decisive in studying the

response of the customers.

Customer Needs

The idea is straightforward - if the product/service caters to the needs of the customers, they will use it. The

‘needs’ here do not necessarily mean utility. Some of the customers simply buy the product which is marketed

well and because the service offered persuades them to go for it; may be because the schemes related or the

discounts given attract them. You can take a look back at your customers and very quickly determine the

characteristics of those most likely to purchase your product or service. Why is this important? Which class of

customers would react to a given set of conditions in a certain manner favourable to our product/ service would

mean the product/service is half-sold.

Types of buyers

It must be understood that the fiscal buyer i.e. one who decides the budget expenditure for the product, the

practical buyer, i.e. the one who checks the features of the product and decides if it will solve his challenge and

cater to his requirement and the consumer buyer i.e. the one who’ll use the product, may all be different people

. This important difference must be kept in mind while ascertaining the target customer.

STRATEGY TO APPROACH TO THE RIGHT CUSTOMERS

Keeping the features of the product in mind, studying the market conditions

Identifying which would be the target market after proper market survey

Determining if the fiscal buyer, the practical buyer an the consumer buyer for a

product are the same or different people

Catering to the requirements of all the above three

Improving upon your product, keeping in mind the demands associated

How Carrefour attracts and retains customers

• Freedom of choice to customers

• Prices consistent with purchasing power of customers

• Strengthening of loyalty programs to ensure that they reflect the latest consumer and social trends.

• Signing a set of specifications, approving production sites and product control plan, processing and

archiving any con-compliant products and following up of customers claims.

• Quality Scorecard available on the group’s intranet site enables all the countries to track products at

every stage of their marketing and to react more efficiently in case of a crisis.

• Conduction of audits on its suppliers’ production sites, which are audited health and safety conditions.

• Freedom of choice through product mix that includes major national brands, regional, own-brand, retail

banner and first price products.

• Carrefour keeps its customers informed with safety icons, the use of which has been recommended in

every country around the world.

• Regular monitoring conducted with the help of specialists, toxicologists and allergists for all textile

products.

• Information on the packaging of its Carrefour brand non-food products.

Four criteria, symbolized by four icons, were adopted

(a) usage

(b) safety

(c) health

(d) environment or social conditions of production. The proper upkeep of stores and the respect for the cold chain and food safety

Slogans for various Store formats

When a product or service becomes a tough sell, it is because people have obvious objections to it. The goal

then should be to frame an offer to get rid of the objection.

If customers are not buying, it is, more often than not, an indication that a company is targeting the wrong

people. “We all know the saying about one man’s trash being another man’s treasure, and you just need to find

the man who treasures your trash.”

To find that man, a firm must study its market and customers, figure out why its product is or is not clicking

with certain segments, and decide what buttons it can push to get targeted customers excited. “Believe me

going; through a systematic, rigorous process of segmentation, targeting and positioning – an age – old

marketing approach is much easier than finding a man who loves your trash.”

“A selling job is always difficult if you don’t really know your customers well and if you simply make

projections on your own experience and intimation.”

Consumers are often ready to indulge themselves when marketers are able to get their message through.

Even a product that is a little bit bad for you – like clothing you don’t actually need. It is about wants and

desires.

Carrefour readies plan to enter India's retail industry

The $130 billion French retail chain Carrefour has set up a 100 per cent-owned arm to enter the wholesale

merchandise business in India and will opt for the franchising route to open multi-brand retail stores in the

country. The world's second-largest retail chain with presence in more than 29 countries, Carrefour intends to

open the first cash and carry or wholesale store on its own by the second half of 2009.

"Carrefour WC&C India is its 100-per cent subsidiary and will set up the cash and carry business in India.

Carrefour Group are planning one or two stores by the second half of 2009 and add more as the business

grows," said Managing Director Herve Clec'h.

Hypermarkets

Supermarkets

Hard Discount

Convenience Store

Cash & Carry

"The prices people want, close to home"

"Grocery products at low, low prices"

"Just what you need, right next door"

"Choice and quality for everyone"

"Proximity and accessibility for catering professionals"

Carrefour hopes to finalise the Indian franchisee for the multi-brand retailing business, in which no foreign

equity is permitted in the country, over the next couple of months, added Gerard Freiszmuth, general manager

for Carrefour India.

India presently permits up to 51 per cent foreign equity in single-brand retail trade business but disallows

foreign equity in multi-brand stores in a bid to protect domestic stores, predominantly run as neighbourhood

mom-and-pop shops.

Study of Carrefour with WALMART, the Retail leader in the race of being the first choice of

customers

STRENGTH

• Carrefour

1. Market leader

2. Aggressive marketing and

adaptable

business model

3. Brand recognition

4. Focus on competitive prices 5. Increasing cash flows from

operations

• WALMART

1. World’s largest retailer

2. Powerful retail brand

3. Globally expanded

4. Core Competency in use of Information technology

5. Focused strategy for HRM & HRD

6. One of the biggest provider for

U.S.A

WEAKNESS

• Carrefour

1. Stagnant sales in France

2. Declining profitability

3. Losses for Ooshop.com

• WALMART

1. Presence in few countries

2. Huge span of control

OPPORTUNITIES

• Carrefour

1. Strong growth potential in Asia

2. New stores

THREATS

• Carrefour

1. Stiff competition from discount retailers in France

2. Increasing labor costs in Europe

• WALMART

1. Focusing on specific markets like

Europe & Greater China region

2. Tremendous opportunities exist for

exploiting the consumer markets-

China and India.

3. Opportunities exist to continue with

their strategy of super-centres.

3. Poor retailing outlook in the Euro

zone

• WALMART

1. Being number one – the target of

competition globally and locally.

2. Political problems in the country

you operate.

3. Intense price competition.

STRENGTH ANALYSIS

CARREFOUR

Carrefour understands the dynamics of local market and adjust its retail formats in accordance to it. Its

aggressive marketing coupled with adaptability helps in creating new markets.

Besides retailing, it sells product under different brands of its own. The company can boast of 90% brand

recognition rate, with its own branded products accounting for 18% of its worldwide sales. The brand salience

for the company is high.

Carrefour focus on giving competitive prices to customers that has helped the company to sustain its leadership

position as well as combat the local competition.

The ability of the company to generate higher cash flows from its operations suggests increasing operational

efficiency.

WALMART

Wal-Mart is a powerful retail brand. It carries a reputation for value for money, convenience and getting

different products under one roof.

It has grown exponentially and has experienced global expansion.

The company’s core competence is the application of information technology to support its international

logistics system. It also supports Wal-Mart's efficient procurement.

It has a focused strategy for human resource management and development. People are most important for

Wal-Mart's business and it invests time and money in training people, retraining and

developing them.

Wal-Mart's phenomenal growth has been an engine for making jobs. In 1995, the company created 85,000 new

Wal-Mart jobs and supported thousands of U.S. manufacturing jobs. More than 600,000 Americans work at

Wal-Mart.

WEAKNESS ANALYSIS

CARREFOUR

Carrefour’s French market share has slipped, taken a back seat by competition from closely held companies at a

time when the French government is pushing retailers to cut prices.

The company’s inability to invest in further growth is inhibited by declining profits which was experienced in

the company’s domestic market.

The company’s inability to profitably run Ooshop (online shopping business) is a burden on its

Bottom line.

WALMART

Wal-Mart has a huge span of control which has brought some weaknesses in the system.

Though the company is global, but it has a presence only in relatively few countries worldwide.

OPPORTUNITIES ANALYSIS

CARREFOUR

There is considerable growth opportunity for the company in the Asian region. They are high in population and

increasing purchasing power. Carrefour is buying stores and these new stores would help the company to attract

a larger number of customers and thereby boost revenues.

WALMART

Forming strategic alliances with other global retailers, it is strongly focusing on specific markets such as

Europe and the Greater China Region.

There are tremendous opportunities for future business in expanding consumer markets, such as China and

India.

New locations and different store types offer Wal-Mart a lot of opportunity to exploit market development.

They have diversified from large super centres, to local and mall-based sites.

There is an opportunity to continue with its current strategy of large, super centres.

THREATS ANALYSIS

CARREFOUR

The Government regulation is the main cause of Carrefour’s troubles in France. The government has passed

legislation to offer the same price to retailers but different to discount stores. Due to discount retailers the

company is gaining a bad repute for its prices.

Europe (including France) is the primary market for Carrefour, the market has been witnessing an increase in

labor costs. An increase in labor costs in its most significant market can adversely impact Carrefour’s bottom

line.

The sales figures for most retailers in the Euro zone declined, which has lead in high inventory. If the trend

continues, it would be a biggest cause of significant dent in the profits of large retailers like Carrefour, for

whom Europe is the primary market. To increase their top line the retail chain have to offer discounts and other

promotions to pep up their flagging sales, undermining their margins in the process. The other cause is the

increase in the purchase price has directly affected their margins.

WALMART

WALMART is the target of competition, locally and globally as it is number one in its field.

Global retailer means that you are exposed to the different political problems of the different countries.

The Intense price competition is a threat as the manufacturing cost have fallen due to outsourcing to low-cost

regions of the World .It has lead to price competition, resulting in price deflation in some ranges.

REFRENCES

Online websites

www.walmart .com

www.carrefour.com

http://en.wikipedia.org/wiki/Wal-Mart

www.walmartstore.com

www.walmartfacts.com

www.thehindubusinessline.com

www.researchandmarkets.com

ANALYTICAL STUDY ON T-20 – IS IT A REAL CRICKET?

By- Kamran Hussain, Imran khan, Obaid Iqbal, Neha Rai, Rajnjana Dubey, Chetna garava, Ish Gupata

Guided by – Dr. U k Neogi, Director

Abstract: - Twenty20 a fun loving entertainment game with high controversies. Study of t20 shows that t20 is a game with high expectations. It’s always in limelight because of many factors such as sponsorship, cheerleaders, loss of skill etc.

Keywords: - Proactive, Loopy, Critics, Aggregation, Relevant, Sublime, Maestro, Substantial, format.

OVERVIEW ON CRICKETOVERVIEW ON CRICKETOVERVIEW ON CRICKETOVERVIEW ON CRICKET

Cricket is an outdoor game played between the 2 teams, each team consists of 11 players. One team bowls and the other bats. The highest scoring team is the winner. Initially the game has started from UK and gradually spread all over the commonwealth countries, especially to India as a most popular game. It has three formats:

1. Test Cricket (18th century onwards) It last for five days consisting of two innings, scheduled of having 90 overs a day.

2. One day cricket (From 1974 onwards) It’s a 50 over game for each team and to be completed within 6 hours on the very day.

3. Twenty20 (From2007onwards) Twenty20 is the format in which 20 over is allotted to each team for batting. The main aim of Twenty20 is to encourage the entertainment level.

COMPARISON BETWEEN THE THREE FORMS OF CRICKET

S.No. Points of

similarity/

Difference

Test cricket One day

cricket

Twenty20

cricket

1. History 18th Century

onwards

1974 onwards 2007 onwards

2. No. of days 5 days max. 1 day 1 day

3. Max. duration Approx. 5.5

hours

Approx. 06

hours a day

Approx. 2.5

hours a day

4. No. of overs 90 overs per

day

50 overs for

each team

20 overs for

each team

TWENTY 20 TWENTY 20 TWENTY 20 TWENTY 20

Twenty20 is a proactive decision of International cricket council, known as ICC for promoting cricket in those countries where cricket was not popular (like United States of America, China, Canada etc). Twenty20 game is completed in about two and a half hours, with each innings lasting for 75 minutes, thus, bringing the game closer to the time spam of other popular team sports such as soccer, rugby, basketball etc.

INTERNATIONAL

CRICKET

TEST MATCHES

ONE DAY

INTERNATIONAL

(ODI)

TWENTY20

The inaugural World Cup T20 was played in South Africa in 2007 with India becoming the World champion defeating Pakistan in the final. The Indian premier league is currently the largest and most popular in terms of physical attendance and in TRP. IPL is the corporate world in cricket, big corporate houses like Kingfisher, Redchillies, GMR group etc are buying there own IPL teams. The sponsorship level is more encouraging in T20 as compared to other formats.

The youth of today has demand for entertainment, they want optimum utilization of there leisure time, Twenty20 provides them with this sort of entertainment, IT consists of a fast scoring game with cheerleaders dancing on each boundary scored or on each wicket that fall in addition to this some of the big name’s of entertainment world like Shahrukh Khan, Preity Zinta, Farha Khan, Arjun Rampal also comes to watch and encourage their favourite teams.

Rules to be followed in Twenty 20 Cricket:Rules to be followed in Twenty 20 Cricket:Rules to be followed in Twenty 20 Cricket:Rules to be followed in Twenty 20 Cricket:

1. Each bowler may bowl a maximum of 4 Overs. 2. If the fielding team doesn’t finish bowling their 20th Overs within 75 minutes the batting

team is credited with 6 runs for every whole over bowled after the 75 minutes marks. 3. The following fielding restrictions apply in T20 :-

a. No more than 5 fielders are allowed on the leg side at any time. b. During the first 6 Overs a maximum of 2 fielders can be outside the 30 yard circle. c. After the first 6 Overs, a maximum of 5 fielders can be outside the 30 yard circle.

4. If the match ends in a tie, the result is decided with bowl-out. 5. If a bowler delivers a no ball by overstepping the popping crease the opposite team is

given one extra run and free hit in which batsman can only get out by a run out and not by a bowler merit.

IS TWENTY 20 REAL CRICKET? IS TWENTY 20 REAL CRICKET? IS TWENTY 20 REAL CRICKET? IS TWENTY 20 REAL CRICKET?

This is a question which will always have a mixed opinion. According to some it’s good for the game because it will teach a player new skills and improve existing ones, because the game is so different, it takes innovation to succeed and that’s good for the game while on the other hand some feel its bad for the game as players will become lazy and loopy and will learn bad habits, which will have a negative impact on the longer version of the game.

Some critics of T20 even feels that it is killing ODI as well as Test match cricket they compare two world cups that were held in 2007 one was of 50 over which was the biggest flop in consideration of poor attendance of spectators, off-field incidents in comparison to this the T20 World Cup was a big boom in world cricket as it bought lot and lots of money to the game or to the ICC. Some feels that T2O is bringing aggregation in the game we can consider Harbhajan Singh and Sreesanth case in this, Harbhajan Singh slapped Sreesanth after ending on a loosing side in an IPL match. Apart from all these criticism one criticism that has nothing to do with cricket but it’s the most spoken criticism that is the cheerleaders many sociologist (Specially Indian sociologist) feels that the use of cheerleaders in cricket should be banned as it is destroying our culture.

ARE SKILLS OF CRICKETERS GETTING ARE SKILLS OF CRICKETERS GETTING ARE SKILLS OF CRICKETERS GETTING ARE SKILLS OF CRICKETERS GETTING DETERIORATED BECAUSE OF T 20? DETERIORATED BECAUSE OF T 20? DETERIORATED BECAUSE OF T 20? DETERIORATED BECAUSE OF T 20?

The batting and bowling skills are no longer relevant; it is now more about the power. Players like MS.Dhoni and Yuvraj Singh are the stars of the new art, sublime artistry of VVS Laxman is no longer appreciated. And the biggest sufferers will be the bowlers. Is this is the case why young budding players go to nets to practice the cricket skills they should rather go to gym and built their biceps so they can hit the ball to maximum distance.

If we compare Sachin Tendulkar, Rahul Dravid, VVS Laxman to some stars of Twenty20 like MS Dhoni, Yuvraj Singh or some one like Rohit Sharma we will be able to see a difference of a mature man and school boys on one hand these maestro of Indian cricket had made their name in world cricket in both the forms of the game whether it is Test match or ODI but players like Dhoni and Yuvraj still have a long way to go in these forms they haven’t done anything substantial in it.

: Matches played by test playing Nations:: Matches played by test playing Nations:: Matches played by test playing Nations:: Matches played by test playing Nations:

Teams Matches Won Winning Percentage

India 10 06 60.00%

Pakistan 16 12 75.00%

Sri Lanka 12 08 66.66%

South Africa 14 09 64.28%

Australia 15 08 53.33%

West Indies 08 03 37.50%

England 14 06 42.85%

New Zealand 16 05 31.25%

: Most Career Runs:: Most Career Runs:: Most Career Runs:: Most Career Runs:

Players Runs Period

Misbah-ul-Haq 398 2007

Shoaib Malik 383 2006

Graeme Smith 364 2005

Kevin Petersen 363 2005

Andrew Symonds 337 2005

0

20

40

60

80

India

Pakistan

Sri Lanka

South Africa

Australia

West Indies

England

New Zealand

Matches

Won

Percentage%

398

383

364 363

337

300

310

320

330

340

350

360

370

380

390

400

410

Misbah-

ul-Haq

Shoaib

Malik

Graeme

Smith

Kevin

Petersen

Andrew

Symonds

Series1

: : : : Highest Career Average:Highest Career Average:Highest Career Average:Highest Career Average:

Players Average Innings

Rohit Sharma 96.00 04

Junaid Siddique 71.00 01

Misbah-Ul-Haq 56.85 13

Andrew Symonds 56.16 10

Conclusion: - We can conclude this research by talking about the Merits and Demerits of T20. T20 is a game which has a high level of entertainment but the former cricketers and sociologist have negative point of view, they criticize the T20 in respect of money invested, corporate interference cheer leaders and besides all these criticism one criticism that has the biggest impact on the game will be the loss of skills, players like Te

Average

020406080100120

Rohit

Sharma

Junaid

Siddique

Misbah-

ul-Haq

Andrew

Symonds

Average

CASE STUDY: CHINA’S ENTRY INTO WTO & ITS IMPACT ON INDIA By- Dr. U. K. Neogi, Director

People’s Institute of Management & Research

Overview

WTO (World Trade Organization), Headquarter at Geneva, Switzerland – an international agency, encourages

trade between member nations, administers global trade agreements and resolve disputes when arise. There are

now 152 member nations. India became membership since January 1, 1995. The Republic of China acceded to

WTO in 2002 under the full extended name of “Separate Customs Territory of Taiwan, Penghu, Kinmen and

Matsu (Chinese Taipei).

WTO came into effect on January 1,1945, and is the successor to the GATT(General Agreement on Tariffs and

Trade), which was created in 1947 and continued to operate for almost five decades as a de facto international

organization. GATT was the outcome of the failure of negotiating Governments to create the ITO (International

Trade Organization). Most of the WTO’s current work relates to negotiations from 1986-1994, called Uruguay

Round. The Organization is currently the host to new negotiations under the Doha Development Agenda

(DDA), established in 2001.

WTO is governed by a Ministerial Conference which meets every 2 years- a General Council, which

implements the Conference’s policy decisions and is responsible for day-to-day administration; Director

General who is the Head of the Organization, is appointed by the Ministerial conference.

Objectives of WTO

• Removal of all barriers to international trade in goods, services and intellectual property

• Equitable and speedy resolution of disputes between trading partners and

• Identification of non-compliance with trade agreements

Background (Till the time of entry 2002)

China’s foreign trade:

• $202 billion in the late 1970s

• $475 billion in 2000.

• By 2000 its share of total world trade had sextupled as compared with 1977

• As early as 1995 China had become one of the top ten trading countries in the world.

• Total stock of foreign direct investment in China = 1/3 of the cumulative foreign direct investment in

all developing countries.

Share of total world exports

China 3.5%

India 0.6%

The above figures clearly depict the vast disparity in the export figures of the two countries. India’s share

is only 0.17 % of China’s Exports.

China remains only partially integrated into the world economy in certain respects. The foreign invested firms,

which accounted for only about one-eighth of all manufacturing output, were responsible for almost half of all

of China's exports. High tariffs and an array of non-tariff barriers meant that some critical sectors of the

Chinese economy remain relatively insulated from international competition.

• The principal benefit of becoming a member of WTO- the increased competition in China's domestic

market.

• Even though this means certain short-term economic costs, the Chinese government would be in favour

of the vital consideration resulting in economic reform and development of a market economy.

The Indian Story

• In spite of being a member of the WTO, India still has barriers to trade to safeguard the interests of

domestic industry and trade.

• These restrictions are allowed by the WTO, but have to be gradually phased out.

• The phasing out of the Quantitative Restrictions coinciding with the entry of China into the WTO shall

subject Indian industry to severe competition.

• Indian industry has expressed concern that China would take advantage of subsidized power, low-

interest bank loans and lower labour costs in its own country to dump its products in India.

• However, the fears of Chinese goods flooding the Indian market and driving Indian industry out of

business seem to be exaggerated.

• There was no disproportionate rise in imports in 2000/01 in India because of the withdrawal of

quantitative restrictions.

China Joining WTO (2001)

On December 11, 2001, China officially became the 143rd member of the World Trade Organization (WTO) at

the culmination of a negotiation process that began in 1986.

One of the biggest effects of China's entry to the WTO, according to economists, is the relocation of

manufacturing and distribution centers to China. Due to its cheap labor, cheap industrial land, and educated

workforce, China has become an ideal production center for businesses based in outside countries. This has

resulted in a twofold impact – more jobs are available in China, while countries like India which, historically

offered cheap labor, have suffered to a great extent. Taiwan and Malaysia's technology industries are already

suffering as companies like Dell Computers move production to China, while foreign investment has soared in

China.

In addition, Mexico and the Caribbean countries have lost thousands of garment manufacturing jobs as the U.S.

has lifted restraints on Chinese textile imports.

While the impact on Southeast Asia is negative, the Western world has benefited. Western countries benefited

from access to China's highly developed electronics and industry sectors. With duties and quotas slashed, and

restrictions lifted, multinationals benefited by setting up distribution centers without the need for Chinese

middlemen.

In addition, China has imported massive amounts of food products, machinery and vehicles from the U.S.,

Japan, Hong Kong, Taiwan, Singapore and South Korea, thus providing significant boosts to these countries'

economies.

Following are the implications of China joining World Trade Organization:

• Foreign telecom operators are permitted to take a 25 per cent share in mobile

telecommunications firms; In Internet, paging and other value-added services,

foreign firms can take 30 per cent stakes in Chinese companies; Tariffs on many

high-tech products like telecoms equipment are being phased out.

• Cut on import tariffs on automobiles up to 25 per cent

• Foreign banks are allowed to conduct domestic yuan currency business with

Chinese firms;

• China now allows "effective management control" in life insurance joint ventures,

although foreign stakes are limited to 50 per cent.

• Quotas on Chinese textile imports have formally ended as mandated under a

WTO-wide accord, although a special import "safeguard" system will be in place

until the end of 2008.

• The crude and refined oil sector is open to private traders hence there is a cut on

state monopoly in oil trading.

• China has opened retail oil distribution and allowed foreign firms at least 30

wholly owned service stations each. More can be built through joint ventures with

Chinese oil majors.

• China has phase out restrictions on distribution services for most products. The

joint venture restrictions on large department stores and virtually all chain stores

have being lifted. The space restrictions on foreign-owned stores is also being

scarped.

Impact on India

China's entry into the WTO has opened up both, opportunities as well as threats to the Indian industry. Chinese

entry has increased the voice of developing nations in the WTO and has enabled them to have their demands of

greater protection to domestic industries accepted. India and China globally compete in the same export

markets; Chinese entry has made Indian exports relatively incompetent and threatens traditional Indian

strongholds such as textiles, tea and jewellery.

Chinese goods have flooded Indian markets causing certain domestic producers to go out of business. China is

ahead of India both, in terms of trade openness as well as its promised commitment to further trade

liberalization. China's entry into the WTO has forced Indian industry to become more competitive and paved

the way for second-generation market reforms in India. China's huge market also becomes a potential market

for Indian goods and increasing domestic competitiveness can be leveraged by pushing exports.

In the light of threats as well as opportunities that present themselves after China’s entry into the WTO, Indian

policy makers need to take up a proactive approach and formulate a long-term strategy for optimizing the

benefits accruing to India. The key measures in such a strategy would be

1. India must push for faster second generation economic reforms in the areas of labour policies and power

reforms. This would reduce the burden on Indian industry and make Indian goods more competitive.

2. Greater attention also needs to be focused on developing basic infrastructure, China is far ahead of India

on this count and foreign investors will move elsewhere unless the Government goes ahead with

reforms in this area.

3. India must also pay greater attention to its trade relations with its Asian

neighbors and press for a larger role for SAARC. The establishment of

SAFTA would go a long way towards boosting trade in the region

4. With the consumption cycle shortening, Indian industry will have to keep pace with international

demand patterns. This means churning out new products rapidly and gathering market intelligence.

5. India should not enter into investment- intensive areas. Instead low capital requirement goods such as

toys and home furnishings can be given a focus.

In conclusion, it seems that while Western countries have benefited from China’s accession to the WTO, the

Asian and South American countries have felt the pinch. The question arises why should India not follow suit

and be benefited!

References

1. Blackhurst, Richard (August 2000). "Reforming WTO Decision Making: Lessons from Singapore and Seattle". Center for Research on Economic Development and Policy Reform (Working Paper No 63): 1–20.

2. Gallagher, Peter (2005). "The GATT Becomes the WTO, 1995", The First Ten Years of the WTO: 1995-2005. Cambridge University Press. ISBN 0-521-86215-9.

3. "In the Twilight of Doha" . The Economist (July 29 - August 4 2006) 380 (8488): 65–66. 4. Jackson, John H. (1994). "Managing the Trading System: The World Trade Organization and the Post-

Uruguay Round GATT Agenda", in Peter B. Kenen: Managing the World Economy: Fifty Years after Bretton Woods. Institute for International Economics.

5. Stewart, Terence P.; Dwyer, Amy S. (1991 – 2007). "The WTO Dispute Settlement System: an Overview", in Pierre Pescatore, William J. Davey, Andreas F. Lowenfeld: Handbook of WTO/GATT Dispute Settlement. Translations Publishers, Inc. ISBN 0-929179-48-X.

Online sources

1. Functions of the WTO. The Basics of the WTO. International Institute for Sustainable Development. Retrieved on 2007-03-17.

2. How to Become a Member of the WTO. Accession: Explanation. World Trade Organization. Retrieved on 2007-03-16.

3. Membership, Alliances and Bureaucracy. Understanding the WTO. World Trade Organization. Retrieved on 2007-03-16.

4. Principles of the Trading System. Understanding the WTO. World Trade Organization. Retrieved on 2007-03-17. 5. Decision-Making in the WTO. Peter G. Peterson Institute for International Economics. Retrieved on 2007-03-23. 6. Settling Disputes:A Unique Contribution. Understanding the WTO. World Trade Organization. Retrieved on

2007-03-11. 7. The Doha Development Agenda. EU & WTO. European Commission. Retrieved on 2007-03-12. 8. The WTO In Brief. World Trade Organization. Retrieved on 2007-03-07.

9. What is the WTO. World Trade Organization. Retrieved on 2007-03-16.

CASE STUDY:MARKETING MIX Guide: Mrs. Shweta Mittal,, Students: Anubha Jain, Ashisha kaushal, Monica Jain, Pradeep

Shraddha Kushwah, Shweta Saxena

DABUR HAIR OIL I NEED EXTRA

Dabur India limited is the fourth FMCG Company in India with interest in health care, personal care and food products. Building on a legacy of quality and experience for over 100 year. Today dabur has a turnover of 1536. 95 crore with powerful brand like dabur amla, dabur vatika. Chair person of dabur vatika is Mr. V.C BURMAN and CEO Mr. Sunil duggal.dabur India has a coverage in 50 countries and five continent. In hair oil category dabur has four varieties in its product line dabur amla amla lite, dabur vatika, and dabur anmol sarson hair oil. Amla hair oil with is trusted hair oil with the natural goodness of amla. Enriching hair deep within

and making it shine with extra gloss. Amla lite hair oil has the nourishing goodness of amla to strengthen hair deep down to the roots .It is combined with the traditional ayurvedic cleanser shikakai that helps enrich hair without making it sticky.Dabur vatika provides natural nourishment to hair giving it body and radiance taking care of the balance of nutrients .Dabur anmol sarson hair oil contain mustard oil that keeps your hair black and shiny. Do you remember rani mukerjee saying balon me dum life me fun yes famous punch line of dabur amla hair oil and vatika woman mandira bedi .You think of dabur and many famous and beautiful faces comes to your mind. Dabur is a star brand .It is endorsed by many famous film stars and TV personalities .Its promotional strategy include television commercials, sponsoring events like dabur vatika star parivar award and organizing events like vatika girl of month. Vatika girl of the month along with gifts provides opportunity to become modle in one of vatika’s ad. By reading above paragraph you all must be thinking that what are the lacuna’s in a dabur company .do dabur needs a suggestion? But we are going to advice dabur with our out of box thinking. Before that we will do the SWOT analysis.

Product line to cater different

segment.

Good image

Global ayurvedic leader

Good market share in north,

south, & west.

Weaker in eastern region.

Poor market share in rural market.

Less dealer margin.

Less promotion in rural areas.

No promotional schemes for

customers.

It can increase rural market share.

It can target to nonuser.

It can increase its market share by

increasing the product line.

It has to compete with market

leader in hair oil Marico

Competition from new entrants in

the market.

SWOT ANALYSIS

Dabur has fairly good product line having famous brands like dabur amla, amla lite vatika anmol sarson hair oil to cater different segment .It is a global ayurvedic leader.it enjoys good image .Its brand are built on the foundation of trust that a dabur offering will never cause one harm .The trust level that this brand enjoys are phenomenally high along with good market share on north, south and west. It is weaker in eastern region .it can increase its market share in eastern region and rural India. Still in rural area there are consumer of unbranded coconut oil. Dabur can choose this segment of non-user cousumer as target group.after acquisition of nihar marico’s market share in the coconut oil segment has increased from 50% to 59% and from 35% to 75% in the perfumed coconut oil segment. Moreover maricos reach in the eastern market where it lacks distribution strength. Dabur is facing competition not only from market leader but a continous threat from new entrants. Our goal is to convert weaknesses in to threats and opportunities into a new business which cab pour profits in a dabur company Dabur needs to touch each Indian with its product on a way dabur will be reaching 1 billion (would be consumers of India) You must be thinking how we will do it.

That is through resegmentation.Hey ! That will be our strategy .By resegmentation dabur can expand its pond and find growth opportunity .It can resegment market on the basis of hair problems and demographic basis. A survey conducted shows that common hair problems are: hair fall, dandruff, tangling, split ends and grey hair. Dabur can add more variety to its product line by manufacturing hair oil that prevent hair fall, make your hair dandruff free ,reduces tangling and keep your hair black and healthy .coloring hair has become a fashion trend .coloured hair requires more care .We suggest dabur to manufacture hair oil that keeps the colour for longer period and make hair healthy and glossy .A good many of us suffer from headache .lack of

proper diet and hectic schedule makes us more prone to headache .What about a hair oil that gives you a soothing relief. That’s the idea. Hair oil for headache. Anti lice oil for children and hair oil for older people these entire product when added to the product line of dabur will leave no room for competitor. Dabur should have product for each and every person .If person think of hair oil he or she should think of dabur. Along with this It should make some changes in size of hair oil.Refill packs and self serve sachet should be made available . Our next strategy is strengthening distribution channel in rural market to increase market share .Our strategy is to start a project ‘kalyan’. This project aims to increase reach of dabur in every village. This can be achieved by making one woman of every village distributor of dabur. This would help in increasing market share of dabur upto 75%. Along with this it should adopt hub and spoke distribution channel model. Promotion plays a very important role in increasing market share. Dabur needs to improve its promotional strategy specially in rural area.It should campaign through radio,nautanki and nukkad nataksand fairs.It should give advertisement in local news paper ,women magazine and health magazine .sponsoring events like miss India contest,organising fairs and workshops to provide information about haircare provides wider coverage and reach. But we won’t stop here. Marketing of a product is not enough. Today is the era of societal marketing .So we have a suggestion for dabur. Dabur should start a project dabur hair oil foundation to provide home for older people. This will help in creating and boosting the image of trust and credibility bringing loyalty for the product.What else a company desire other than brand loyalty.We hope our suggestion helps dabur in winning heart of customer.

25%

18%15%

18%

24% HAIRFALL

DANDRUFF

SPLITEND

COLOUR HAIR

GREY HAIR

CASE STUDY: CADBURYS, BACK TO BASICS

By-Nirmaan sagar. Abhishek Upadhyay, Jitendra Dwivedi, Archna Nayak. Rashmi Thomus.

Guided by- Mrs. Shweta Mittal.

For many decades, since 1948 in India, Cadburys has enjoyed a peculiar monopoly in chocolate industries. But the future is not going to be so easy. Things are changing drastically; a sudden variation in ‘market-taste’ is common these days. PLC of Cadburys is moving towards its maturity stage while some of the chocolate brands like Nestle & Amul are still growing and thus, “The time has come to perform something innovative, something different”, says Bharat Puri, MD Cadburys India Ltd (earlier known as Cadburys Fry India Ltd).

We have done a small survey based on the famous Four Ps of marketing (simplified into Five Ps)

to find out the actual market- stand of the product, whose details are: Sample Size: 50 Survey Locations: CMS Bairagarh, KV 3ME Centre, Bhanpur, Karod

& Royal Market,Bhopal.

Question Response

Q1. Do you think that Cadbury is a healthy chocolate?

Q2. Do you think that the chocolate is good for teeth?

Q3. Is Cadbury available in Rural areas?

No, 50%Can't

Say,

30%

Yes,

20%

Yes,

10%Can't

Say 20% No ,

70%

No,

50%Rarely

30%

Yes,

20%

Q4. Do Cadbury give any Freebees?

Q5. Are you happy with the packaging of Cadburys?

Question: What are the major problems you are facing? (Asked with retailers)

Reply: One of the biggest problems is ‘Storage’ as the chocolates have very low melting

point compared to our environmental temperature, thus have to spend a lot on

refrigeration/conditioning of the store rooms as well as transportation vehicles. Also

the ‘packaging’ is not fungus proof, which prohibits longer storages especially in

monsoon.

Also Nestle, Amul and other brands provide special offers time to time, for

example Nestle has provided 20% free offer with its Kit-Kat chocolate strips. Also the

‘price’ of the Cadburys chocolates is little higher as compared to the competitors for the

equal weight chocolate, which repels the lower and even the middle class consumers

from purchasing it.

THE ‘PRODUCT’

We Found: a) 1st problem is related to the ingredients of the Product, Which explains that it doesn’t provide anything other than taste.

We Suggest: Chocolate should contains vitamins A, B1,C, D, and E, as well as potassium, sodium, iron,

and fluorine which will help us live healthier and longer.

Yes, 2%Don't

Know

18%

No ,

80%

No,

46%

OK 26%

Yes,

28%

We Found: b) Product is adversely affecting the Teeth of the regular consumers and is found to be a major source of Fat.

We Suggest: Calcium rich, Fat free chocolates should be launched with a sugar free version for diabetic

person. We Found: c) The chocolate melts even at 35°C, which is normal temperature in our country for at least

5 months/year. We Suggest: Chocolate ingredients should be chemically analyzed to increase its melting point without

affecting its taste.

THE ‘PLACE’

Cadbury’s have a Two-level marketing channel as simplified by the diagram below:

The Manufacturer> Distributor> Retailer> Customer

Current Locations of Cadburys Manufacturing Plant in our country are shown below:

Fig 1.

We Found: It is not de-centralized up to the mark. As we can see that the manufacturing plants are established in the central part of our country which is the reason of-

1. Higher Transportation Cost. 2. Higher Freezing Cost.

3. Higher Time Consumption.

We Suggest: Manufacturing plants locations should

be properly clustered near to the product market as possible in the regions shown in the figure2. For example in the Southern Region (Andhra Pradesh, Karnataka), in the Eastern Region (Bihar, W Bengal etc) similarly Northern Region (Himachal Pradesh) and so on. So that the

We Found: b) Most of the rural area is still untapped.

Fig2. Suggested regions for manufacturing

plants. We Suggest: Distribution should be expanded to

the rural areas by filling the

transportation, storage and pricing

gaps. For example, Special Air/Water Ventilated Coolers (which does not require electricity) may be supplied with the product, for providing better storage conditions. Drinking water may be made available with the cooler in the form of ‘Pyaoo’ for maximum impact especially in summer.

- Transportation Cost - Double Freezing Cost

- Time, should be reduced.

THE ‘PROMOTION’

Promotion plays a leading role in the actual performance of the product in the market.

Cadbury has used a variety of Promotion Tactics:

1. Use of Appropriate Season, Occasion and Time.

a) Festival Packs b) After Dinner Sweet

2. Using famous personalities as Brand Ambassador (Promoters).

3. Use of HUMOUR-plus Strategy.

4. Mixed Strategy Promotion.

5. Promotion intrinsic Product Labeling.

But, as said earlier, the Time is demanding for more. Following are few suggestions that may supply the necessary boost to the product:

We Suggest: Use of effective and enduring Promotion strategies like- 1. Providing planner or blank Time-Table at the

back of chocolate wrappers targeting school going children.

2. Printing Year Calendar at the back of the

wrapper. So that it will be kept for the next one year at least.

3. Chocolates in the shapes of famous cartoons

will attract Kids more affectively. 4. Chocolates can be used as Teaching tools such

as Triangle, Circle, Square etc.

5. Providing chocolates in all colors. 6. Printing upcoming Cricket Worldcup2007 schedule on the back of Chocolate wrappers.

7. Labeling in the Local languages and stating one

fact about the State on the wrapper. 8. Arranging different games in schools involve

hunting for chocolates and giving chocolates as Prize.

9. Chocolate’s scientific name, theobroma cacao,

literally means "food of the Gods”. This perception associates it with the feeling of love, Devine and comfort which must be used to promote it.

THE ‘PRICE’

Price is the only element of the marketing mix that produces revenue as all the other elements produces cost. We Found: The major problem with the price

policy is that there is no chocolate variety available priced less than Rs. 5/-.

We Suggest: Its suggested solution is that small

chocolate packs of Rs. 1/-&Rs

2/- should be introduced in the market, by reducing chocolate weight & introducing value pricing, targeted to the low income consumers living in urban and rural areas as well.

THE ‘PACKAGING’

There are basically three levels of a product

package- a) Primary Package:

b) Secondary Package: c) Shipping Package:

We Found: Cadburys has taken a very good care of the same for its product but need little improvement as currently the

packaging of Cadburys is not biodegradable and Fungus proof.

We Suggest: A specially prepared biodegradable

material like Waterproof Plant cellulose treated with aseptic chemical can be used as a biodegradable and fungus proof packaging.

CONCLUSION: Thus, at the end it is proved that the combination of Five Ps prepares the ink to write the success story of any product in the market.

It is certain that the Demand of chocolate is going to be

increased in near future and we suggest Chocolate lovers to be ready for some mind-blowing flavours.

And the day is not far away when doctors prescribe

chocolates as medicinal tablets! at least in some cases.