Alam Mba Project

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EXCEL BUSINESS ACADEMY

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Meaning of business:

Introduction to Business:

Anyone who is starting a new business or looking into the possibility of buying an existing

business needs to learn as much as possible about how to operate a successful business. A good

start is to take a good introduction to business course. These courses are available in a number of

locations including universities and business schools and some of the best ones can be found

right on the Internet.

A good introduction to business course will include information on the basics such as how to

choose the right business and best business location. It will also provide information on how to

make a good business plan. This is essential for a business for a number of reasons. To begin

with, a properly prepared business plan will get the business off on the right foot and allow it to

become profitable within a shorter period of time.

It is not expensive to take a top introduction to business course and the money will be well spent.Many small businesses fail because the owners dont know the basics, but that is a pitfall that can

easily be avoided.

Definestion:

A commercial activity engaged in as a means of livelihood or profit, or an entity which engages

in such activities.

A business' purpose is to attract and keep customers. Its one basic function is to reliably solve

customer problem.

A commercial enterprise that attempts to earn a profit by providing services and/or

manufacturing products that are offered for sale.


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"The simplest definition of business is you solve a customer's problem and create sustainable

profits over time. Anyone with vision should understand the problem they're solving. The

problem with business today is that people think the meaning is about building a monument to

yourself.

"The simplest definition of business is you solve a customer's problem and create sustainable

profits over time. Anyone with vision should understand the problem they're solving. The

problem with business today is that people think the meaning is about building a monument to

yourself. The meaning of business is having an impact on people's lives."

The Business is a postgraduate degree designed to develop the capabilities and resources of

managers in the global economy. It is ideal for those seeking to establish or accelerate a career in

business.

Emphasizing the practical application of specialized knowledge, the program equips

management with skills tailored to the business environment.

TheBusiness focuses on strategic planning for international operations and provides an in-depth

understanding of the organizational capabilities required for international operations, including

According to L.R. Dicksee Business refers to a form of activity pursued primarily with the

object of earning profits for the benefit of those on whose behalf the activity is conducted. The

term is used to cover the whole complex field of commerce and industry the basic industries

and the network of ancillary services, distribution, banking, insurance, transport and so on which

serve and interpenetrate the world of business as a whole.

a business (also called firm or enterprise) is a legally recognized organizational entity existing

within an economically free country designed to provide goods and/or services to consumers.


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Characteristics of Business:

Component of Business

(I Industry

1ExtractiveIndustries (Supplying products from Earth, air, water)

2. Manufacturing Industries (Conversion of raw materials or semi-finished goods into

finished goods)

3. GeneticIndustries (Production of multiplication of plants and animals)

4. ConstructionIndustries (Construction of roads, bridges, building)


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5. Assembly Industries (Shoe making and Manufacturing of automobiles)

(II) Trade

1. Home or Internal Trade (with in the boundary, like national; Wholesale and Retail trade)

2. Foreign or International Trade (like, Import, Export and Entrepot (Importing of goods with

the view of re-export) Trade)

Meaning of management

Management is the process of planning, organizing, leading, and controlling the efforts of

organization members and of using all other organizational resources to achieve statedorganizational goals. Management focuses on the entire organization from both a short and a

long-term perspective. Management aims to increase the effectiveness of organizations.

Management is an organizational function, like sales, marketing or finance. It doesn't necessarily

mean managing people. We can manage ourselves or the material assigned to us at work.

Management in simple terms means the act of getting people together to accomplish desired

goals. Management comprises planning, organizing, resourcing, leading or directing, and

controlling an organization (a group of one or more people or entities) or effort for the purpose

of accomplishing a goal.


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Definition

1. The group of individuals who make decisions about how a business is run.

2. The initiation and maintenance of an investment portfolio.

Management is a continuous, lively and fast developing science. Management is needed to

convert the disorganized resources of men, machines, materials and methods into a useful and

effective enterprise. management is a pipeline, the inputs are fed at the end and they are

proceeded through management functions and ultimately we get the end results or inputs in theform of goods, services, productivity, information and satisfaction. Management is a

Managementis generally defined as the art and science of getting things done through others.

This definition emphasizes that a managerplans and guides the work of other people.

Some (cynical) individuals think that this means managers dont have any work to do

themselves. As youll learn in this book (if you dont already know it), managers have an awful

lot of work to do.

comprehensive word which is used in different sciences in the modern business and industrial

world. In the narrow sense, it signifies the technique of taking work from others. In this way a

person who can take work from others is called manager. In the wide sense, the management is

an art, as well as science, which is concerned with the different human efforts so as achieve the

desired objective.


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Management has been defined by different authors in a number of ways. Some call it a process

of managing. Some call it a coordination of resources, some call it body of personnel challenged

in the task of managing while others call it as an organized distinct discipline.

The following are some of the main definitions of management:

1. Management as process:

Kimball, koontz and O'Donnell, Newman and Summer, Stanley Vance, Theo Haimann, F.C.

Hooper and E.F.T Breach they all call it a process. It is evident from the following definitions

also:

1. According the Kimball-management may be broadly defined as the art of applying the

economic principles that underlie the control of men and materials in the enterprise under

consideration.

2. According to Koontz, "Management is the art of getting things done through and with people

in formally organized groups."

3. According to Theo haimann, "Management is the function of getting things done through

people and directing the efforts of individuals towards a common objective."

4. According to Sisks, "Management is the process of working of with and other to effectively

achieve organizational objectives by efficiently using limited resources in changing

environment."


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2. Management as an Activity:

According to this approach management consists of those activities, which are performed by

managers in attaining the predetermined objectives of the business. This approach may be

referred to Henry Fayol, who classified management activities into the following categories:

1. Technical - referred to production department.

2. Commercial - relates to buying, selling and exchange.

3. Financial concerned with maximum utilization of capital.

4. Security concurred with protection of property and person.

According concerned with maintenance of accounts, presentation and statistics and Management

concerned to planning, organizing, commanding, coordinating and controlling.

3. Management as a group of personnel:

According to this approach human factor plays an important role in accomplishing business

objectives. management is concerned with those who have been managing the affairs of the

business. Managers are assigned duties and are also granted requisite authority to perform their

duties efficiently and thus, management is effective direction, coordination and control of

individual and group efforts to accomplish business objective.

This approach is advocated by management authorities like Taylor, Wilson and others. They

have defined management as following. As per F.W. Taylor's approach, "Management is the art

of knowing exactly what you want your men to do and then seeing that they do it in the best and

cheapest way."


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4. Management as a discipline:

Sometimes the term 'Management' is used to connote neither the activity nor the personnel who

exercise it, but as a substantive describes the subject, the body of knowledge and practices of

management as a subject of study. Management is being taught in different college and

universities as a district subject.

Thus, management, as such is a process, an activity, a discipline and as effort to coordination,

control and direct individual and group efforts towards desired goal of the business.

Characteristics / Nature / Features of Management:

The main characteristics of management are as follows:

Management is an activity: Management is an activity which is concerned with the efficient

utilization of human and non-human resources of production.

Invisible Force: Management is an invisible force. Its existence can be felt through the enterprise

or institution it is managing.

Goal Oriented: Management is goal oriented as it aims to achieve some definite goals and

objectives. According to the Haimann, "Effective management is always management by

objectives". Managers and other personnel officers apply their knowledge, experience and skills

to achieve the desired objectives.


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Accomplishment through the efforts of Others: Managers cannot do everything themselves.

They must have the necessary ability and skills to get work accomplished through the efforts of

others.

Universal activity: Management is universal. Management is required in all types or

organizations. Wherever there are some activities, there is management. The basic principles of

management are universal and can be applied anywhere and in every field, such as business,

social, religious, cultural, sports, administration, educational, politics or military.

Art as well as Science: Management is both an art and a science. It is a science as it has an

organized body of knowledge which contains certain universal truths and an art as managing

requires certain skills which apply more or less in every situation.

Multidisciplinary Knowledge: Though management is a distinct discipline, it contains principles

drawn from many social sciences like psychology, sociology etc.

Management is distinct from ownership: In modern times, there is a divorce of management

from ownership. Today, big corporations are owned by a vast number of shareholders while their

management is in the hands of paid qualified, competent and experienced managerial personnel.

Need at all levels: According to the nature of task and scope of authority, management is needed

at all levels of the organization, i.e., top level, middle and lower level.


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Integrated process: Management is an integrated process. It integrates the men, machine and

material to carry out the operations of the enterprise efficiently and successfully. This integrating

process is result oriented.

Introduction of Business Administration

What is Business Administration?

As an educational term, business administration has come to encompass an extraordinary number

of academic study areas. As business has become more complex, so too has the oversight of

companies: their management, their growth strategies, their personnel issues, their taxes and the

role that taxes play in corporate economic strategy. Advertising has grown to include multiple

media outlets and an assortment of targeted interest groups: new customers, repeat customers,

stockholders, investors and new geographic markets. Marketing has become the term of choice

for all of this strategically placed product exposure.

Defining business administration then means defining oversight roles for the assortment of

internal specialties that every business of any size has come to include. That is why business

administration degrees are now offered with a remarkable number of categorical specialties

available as choices of study. Perhaps the best way to define business administration is to look at

the types of courses offered in MBA curriculums and the specialties, or "majors," that one can

opt for in an MBA program.

For a large corporation, business administration is going to include international and global

business, as well as strategy and economics. In this instance, the definition of business

administration will include requirements of certain cultural differences and an acute

understanding of the global economy and its current fluidity. Also included in business


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administration at this scale is the art and science of acquisition: when to buy a company or

property and why.

all of these components work productively, if not in Business administration will always include

the intangible quality of leadership; you can obtain an MBA that specializes in just that. Along

with leadership comes the task of negotiation and conflict resolution, specifically with regard to

personnel. Behavioral psychology plays an important role in business administration: a misstep

in an adversarial situation with a union can take a company under, as it did Continental Airlines

some years ago.

The definition of business administration will have to include marketing; you won't have a

business to administer unless you sell your products. Ancillary to marketing is an understanding

of the new tools available for product distribution, and that will involve understanding e-business

and how it is rapidly evolving.

Whether you are working with distributors that are small businesses or you are starting your own

business, business administration includes an understanding of entrepreneurship: tax structures

for small businesses along with personnel issues at that level, inventory and cash flow, and allthe other small matters that make a big difference to a new or small business.

A critical part of business administration is the awareness of risk. This might include the risk of

launching a new product, and the costs involved; the risk of an acquisition, the risk of a

competitive strategy, the company's exposure in opting for this health plan instead of that one.

There are risks involved in other personnel decisions and this area is of tangible importance:

company morale is a key to productivity and the resultant profitability.


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There are MBA courses taught in all of these areas, and MBA degrees that specialize in many of

them. The definition of business administration includes whatever knowledge is required to

make complete harmony.

Difference Between Business Management And Business Administration

Business Management

Management comprises directing and conniving a cluster of one or more people or entities for

the reason of coordinating and balancing that group towards accomplishing an objective.

Management frequently encompasses the deployment and treatment of person resources, fiscal

resources, technological resources, and usual resources. Management can also submit to the

person or people who carry out the act(s) of running. Some people, so far, locate this definition,

as useful, far too slight. The expression "supervision is what managers do" occurs widely,

symptomatic of the difficulty of crucial management, the shifting nature of definitions, and the

connection of administrative practices with the existence of a managerial cadre or course group.

One habit of deliberation regards management as equivalent to "business administration", even

though this then excludes running in places outside commerce, as for instance in charities and in

the public sector. Many people refer to university departments which teach running as business

schools, and a number of institutions used that first name.

Management in simple terms means the act of getting people together to accomplish desired

goals. Management comprises planning, organizing, resourcing, leading or directing, and

controlling an organization (a group of one or more people or entities) or effort for the purpose

of accomplishing a goal. Resourcing encompasses the deployment and manipulation of human

resources, financial resources, technological resources, and natural resources.


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Business Administration:

In business, administration consists of the performance or management of business operations

and thus the making or implementing of major decisions. Administration can be defined as the

universal process of organizing people and resources efficiently so as to direct activities toward

common goals and objectives.

Administrator can serve as the title of the general manager or company secretary who reports to a

corporate board of directors. This title is archaic, but, in many enterprises, this function, together

with its associated Finance, Personnel and management information systems services, is what is

intended when the term "the administration" is used.

There's no difference. The word "administration" and "management" are somewhat different

when defined in a dictionary. But in the real world of business, they are the same unless one

begins splitting

Some might say that administration involves more things of a paper-pushing or clerical nature.And some may think that management implies some authority over others that administrators do

not have. If a company makes this distinction, so be it. But in general, business administration

and business management are the same. "

"Generally speaking, business administration is usually the name of the degree not really a

concentration. Every business discipline combined is pretty much "business administration" as a

whole. In fact, you can even take out the word "administration" and just leave it at "business" a

field of study. So saying you study "business administration" is saying you study "business."

Management is the actual concentration within business administration, and you cover

organizational behavior/structure, leadership in organizations, managing change, and things like


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human resources (people) management. Some schools might have "business administration and

management" to refer to the management major.

Types of business

There are many types of business entity defined in the legal systems of various countries. These include

corporations, cooperatives, partnerships, sole traders, Limited Liability Company and other specialized

types of organization.

1. Corporation:-

A corporation is an institution that is granted a charter recognizing it as a

separate legal entity having its own privileges, and liabilities distinct from those of its members.

There are many different forms of corporations, most of which are used to conduct business.

Corporations exist as a product of corporate law, and their rules balance the interests of the

management who operate the corporation, creditors, shareholders, and employees who contribute

their labor. In modern times, corporations have become an increasingly dominant part of

economic life.

An important feature of corporation is limited liability. If a corporation fails, shareholders

normally only stand to lose their investment, and employees will lose their jobs, but neither willbe further liable for debts that remain owing to the corporation's creditors.

Despite not being natural persons, corporations are recognized by the law to have rights and

responsibilities like actual people. Corporations can exercise human rights against real

individuals and the state, and they may be responsible for human rights violations. Just as they


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are "born" into existence through its members obtaining a certificate of incorporation, they can

"die" when they lose money into insolvency. Corporations can even be convicted of criminal

offences, such as fraud and manslaughter.\

2. Cooperative :-

Co-operative often referred to as a co-op) is a business organization owned and

operated by a group of individuals for their mutual benefit. Cooperatives are defined by the

International Co-operative Alliance's Statement on the Co-operative Identity as autonomous

associations of persons united voluntarily to meet their common economic, social, and cultural

needs and aspirations through jointly owned and democratically controlled enterprises.

cooperative may also be defined as a business owned and controlled equally by the people who

use its services or by the people who work there. Cooperative enterprises are the focus of study

in the field of cooperative economics

3. Partnership :-

is an arrangement where entities and/or individuals agree to cooperate to

advance their interests.[1]

In the most frequent instance, a partnership is formed between one or

more businesses in which partners (owners) co-labor to achieve and share profits or losses.

Partnerships are also frequent regardless of and among sectors. Non-profit organizations, for

example, may partner together to increase the likelihood of each achieving their mission.

Governments may partner with other governments to achieve their mutual goals, as mayreligious and political organizations. In education, accrediting agencies increasingly evaluate

schools by the level and quality of their partnerships with other schools and across sectors.

Partnerships also occur at personal levels, such as when two or more individuals agree to

domicile together. Partnerships between governments, interest-based organizations, schools,


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businesses, and individuals, or some combination thereof, have always been and remain

commonplace.

Partnerships have widely varying results and can present partners with special challenges. Levels

of give-and-take, areas of responsibility, lines of authority, and overarching goals of the

partnership must all be negotiated. While partnerships stand to amplify mutual interests and

success, some are considered ethically problematic, or at least debatable. When a politician, for

example, partners with a corporation to advance the corporation's interest in exchange for some

benefit, a conflict of interest may make the partnership problematic from the standpoint of the

public good. Developed countries often strongly regulate certain partnerships via anti-trust laws,so as to to inhibit monopolistic practices and foster free market competition.

Among developed countries, business partnerships are often favored over corporations in

taxation policy, since dividend taxes only occur on profits before they are distributed to the

partners. However, depending on the partnership structure and the jurisdiction in which it

operates, owners of a partnership may be exposed to greater personal liability than they would as

shareholders of a corporation.

4. Sole proprietorship :-

A sole proprietorship also known as a sole trader, or simply proprietorship is a

type of business entity which is owned and run by one individual and where there is no legal

distinction between the owner and the business. All profits and all losses accrue to the owner

(subject to taxation specific to the business). All assets of the business are owned by the

proprietor and all debts of the business are the proprietors'. This means that the owner has no

lesser liability than if he was acting as individual instead of a business. It is a "sole"

proprietorship in contrast with partnerships.

A sole proprietor may do business with a trade name other than his or her legal name. Sometimes

a sole proprietor is required to file a doing business as statement with a local government even if


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it is the same as his actual name for certain types of businesses or as a requirement to open a

business banking account.

Meaning of Organization

Definition:

Basically, an organization in its simplest form (and not necessarily a legal entity, e.g.,

corporation or LLC) is a person or group of people intentionally organized to accomplish an

overall, common goal or set of goals. Business organizations can range in size from one person

to tens of thousands.

There are several important aspects to consider about the goal of the business organization.

These features are explicit (deliberate and recognized) or implicit (operating unrecognized,

"behind the scenes"). Ideally, these features are carefully considered and established, usually

during the strategic planning process. (Later, we'll consider dimensions and concepts that are

common to organizations.)

1. According to keith Davis, "Organisation may be defined as a group of individuals, large of

small, that is cooperating under the direction of executive leadership in accomplishment of

certain common object."

2. According to Chester I. Barnard, "Organisation is a system of co-operative activities of two or

more persons."

3. According to Louis A. Allen, "Organisation is the process of identifying and grouping the

work to be performed, defining and delegating responsibility and authority, and establishing

relationship for the purpose of enabling people to work most effectively together in

accomplishing objectives."


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human 4. According to Mooney and Railey, "Organisation is the form of every association for

the attainment of a common purpose."

Meaning:

Organization is the foundation upon which the whole structure of management is built.

Organization is related with developing a frame work where the total work is divided into

manageable components in order to facilitate the achievement of objectives or goals. Thus,

organisation is the structure or mechanism (machinery) that enables living things to work

together. In a static sense, an organisation is a structure or machinery manned by group of

individuals who are working together towards a common goal. Alike 'management', the term

'organization' has also been used in a number of ways. broadly speaking, the term 'organization'


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is used in four different senses: as a process, as a structure of relationship, as a group of persons

and as a system, as given below:

Organization as a Process: In this first sense, organisation is treated as a dynamic process and a

managerial activity which is essential for planning the utilization of company's resources, plant

an equipment materials, money and people to accomplish the various objectives.

Organization as a Framework of Relationship: In the second sense organisation refers to the

structure of relationships and among position jobs which is created to release certain objectives.

The definitions of Henry, Urwick, Farland, Northcourt, Lansburgh and Spriegel Breach, Davis,

Mooney and Reily etc., come under this group. For example: According to Mooney and Reily,

"Organisation is the form of every human association for the attainment of a common purpose."

Organisation as a Group of persons: In the third sense, organisation is very often viewed as a

group of persons contributing their efforts towards certain goals. Organisation begins when

people combine their efforts for some common purpose. It is a universal truth that an individual

is unable ability and resources. Barnard has defined 'Organisation' as an identifiable group of

people contributing their efforts towards the attainment of goals.

Organisation as a System: In the fourth sense, the organisation is viewed as system. System

concepts recognize that organizations are made up of components each of which has unique

properties, capabilities and mutual relationship. The constituent element of a system are linked

together in such complex ways that actions taken by one producer have far reaching effect on

others.

In short, organizing is the determining, grouping and arranging of the various activities deemed

necessary for the attainment of the objectives, the assigning of people to those activities, the

providing of suitable physical factors of environment and the indicating of the relative authority

delegated to each individual charged with the execution of each respective activity.


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Characteristics / Features ofOrganisation

The main characteristics or Features of organisation are as follows:

Outlining theObjectives: Born with the enterprise are its long-life objectives of profitable

manufacturing and selling its products. Other objectives must be established by the

administration from time to time to aid and support this main objective.

Identifying and Enumerating the Activities: After the objective is selected, the management

has to identify total task involved and its break-up closely related component activities that are to

be performed by and individual or division or a department.

Assigning the Duties: When activities have been grouped according to similarities and common

purposes, they should be organized by a particular department. Within the department, the

functional duties should be allotted to particular individuals.

Defining and Granting the Authority: The authority and responsibility should be well defined

and should correspond to each other. A close relationship between authority and responsibility

should be established.

Creating Authority Relationship: After assigning the duties and delegations of authority, the

establishment of relationship is done. It involves deciding who will act under whom, who will be

his subordinates, what will be his span of control and what will be his status in the organisation.

Besides these formal relationships, some informal organizations should also be developed.


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Types of organisation

1. Line Organisation. This is the oldest as well as the most common type of organisation. It i

still used by many concerns especially the small ones. It is also known as the Military System

as this type of organisation is usually found in the army. The characteristic feature of this type is

that line of authority flows verticallty form the top most executive to the lowest subordinate

throughout the entire organisational structure. The authority is greatest at the top and reduces

through each successive level down the organisational scale. A variation of the pure line

organisation is the departmental line organisation, under which the business enterprise is divided

into several departments and the authority flows downward from the General Manger through

the departmental managers to the lower subordinates. The departmental heads are independent of

each other and enjoy equal status.

2. Functional Organisation. In this type of organisation the personnel an their work are

organised on the basis of the same type of work of activities. All works of the same type are

grouped together and brought under one department managed by an executive who is an expert.

Thus there are separate functional departments, for the major functions of the business viz.,

engineering or production, purchase, sales, finance personnel etc. Each department performs its

specialised function for the entire organisation. For example, the purchase department deals with

purchases on behalf of the entire organisation, and so on. Now-a-days almost all business

concerns usually follow some sort of functional plan to carry out the primary functions of

business. However, it is the rare to find a pure functional organisation and there is always an

element of line organisation mixed with it.

3. Line and StaffOrganisation. In order to avoid the defects of the line and functional types of

organisation, too much concentration of control in the former and too much division of the same

in the latter, the line and staff organisation was evolved. It seeks to strike a balance between the

first tow types. Under this type, the organisational structure is basically that of the line

organisation, but Staff, officers of functional experts are engaged to advise the line officers in

the performance of their duties. 'Staff' means something to lean on, and this is precisely the


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function of the staff officers. Line officers are the executives, and the staff officers are their

advisers. Being an admixture of the Line and Functional organisations, it has the advantages of

both and is admirably suited for large concerns. A large-size business concern, with its

multifarious functions of complicated nature needs an organisation where there will be an

unbroken line of authority and responsibility so that responsibility can be fixed, discipline can be

maintained and decision-making and execution can be prompt. At the same time, it requires that

a high degree of specialisation and co-ordination of functions are achieved without which

efficiency is bound to suffer. Te Line and Staff organisation caters to both these needs. The Line

officers make the decisions and issue instructions to subordinates, the staff officers have no

authority to issue instructions. But in their decision-making function, the Line officers receive

advise and guidance form the Staff Officers.

4. Committee Organisation. A committee means a body of persons entrusted with discharging

some assigned functions collectively as a group. Committees may be permanent (standing) or

termporary (adhoc) bodies. Committee are found to exist in different areas and levels of an

organisational structure, in both business and non-business institutions. Because of its

advantages, the committees form of organisation is very often preferred by different concerns.

However, a committee organisation is rarely found in its pure form, it is usually found in

addition to a line and staff organisation. The committee itself may be organised with line

authority, it is usually vested with powers of decision making and its execution. The committee

then assumes command authority u in the organisation and function as a group executive or

'plural executive'. Where it is organised on staff authority it has merely an advisory function. The

example of a group executive is the board of a business company where the various committeesof directors (both standing and adoc) as well as other committees at lower levels of organisation

are staff or advisory committees. The example committees at lower levels of organisation are

staff or advisory committees. The example of a group executive of 'plural executive' where it is

organised on staff authority, it has merely an advisory functions.


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Types ofOwnershiP:

1.SoleProprietorships:

The vast majority of small businesses start out as sole proprietorships. These firms are owned by

one person, usually the individual who has day-to-day responsibilities for running the business.

Sole proprietors own all the assets of the business and the profits generated by it. They also

assume complete responsibility for any of its liabilities or debts. In the eyes of the law and the

public, you are one in the same with the business.

2.Partnerships

In a Partnership, two or more people share ownership of a single business. Like proprietorships,

the law does not distinguish between the business and its owners. The partners should have a

legal agreement that sets forth how decisions will be made, profits will be shared, disputes will

be resolved, how future partners will be admitted to the partnership, how partners can be bought

out, and what steps will be taken to dissolve the partnership when needed. Yes, it's hard to think

about a breakup when the business is just getting started, but many partnerships split up at crisis

times, and unless there is a defined process, there will be even greater problems. They also must

decide up-front how much time and capital each will contribute, etc.

3.Corporations

A corporation chartered by the state in which it is headquartered is considered by law to be a

unique entity, separate and apart from those who own it. A corporation can be taxed, it can be

sued, and it can enter into contractual agreements. The owners of a corporation are its

shareholders. The shareholders elect a board of directors to oversee the major policies and

decisions. The corporation has a life of its own and does not dissolve when ownership changes.


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4.SubchapterSCorporations

A tax election only; this election enables the shareholder to treat the earnings and profits as

distributions and have them pass through directly to their personal tax return. The catch here is

that the shareholder, if working for he company, and if there is a profit, must pay him/herself

wages, and must meet standards of "reasonable compensation".This can vary by geographical

region as well as occupation, but the basic rule is to pay yourself what you would have to pay

someone to do your job, as long as there is enough profit. If you do not do this, the IRS can

reclassify all of the earnings and profit as wages, and you will be liable for all of the payroll

taxes on the total amount.

5.LimitedLiabilitCompany

The LLC is a relatively new type of hybrid business structure that is now permissible in most

states. It is designed to provide the limited liability features of a corporation and the tax

efficiencies and operational flexibility of a partnership. Formation is more complex and formal

than that of a general partnership.

The owners are members, and the duration of the LLC is usually determined when the

organization papers are filed. The time limit can be continued, if desired, by a vote of the

members at the time of expiration. LLCs must not have more than two of the four characteristics

that define corporations: Limited liability to the extent of assets, continuity of life, centralization

of management, and free transferability of ownership interests


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Vision, Mission, Goals, Principles, Values of the company

Vision

1. Describes the path that the Company will take in the coming years. It clearly defines the

goals that are set out to achieve. All strategic decisions are based on this Vision.

2. Why the company is in business; What company strives to accomplish, Where are they

going.

Values:

Describe the approach and the manner in which we want to work to achieve our goals. See the

following example to differentiate values and principles.

Principles (Guiding principles)

State how company wants to conduct day-to-day business. Used to guide daily decisions.A

global company must continuously comply with different legal frameworks and cultural

conditions and constantlyconduct in a manner that helps to fully achieve our self-established

standards and expand.


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Goals:

What company does - Goals Drive long term decisions and define strategic directions.

Organization may have different goals for different business units or departments.

Mission (Purpose)

Why does the business matter ? Gives purpose and Meaning to organization's work. It will

answer all the "why" questions for an organization. It is the purpose or intent of an

organization.In a way, a "mission" is the motivational aspect of vision: it defines and clarifies

"why does the vision matter?" and implies a set of governing values or principles . Some

organizations prefer to define their "core values" explicitly, and lately we've seen clients focus

on a Code of Ethics to make operational ... either way, mission and values both define what is

important to the individual, department or enterprise.


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ORGANIZATIONAL STRUCTURE


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Organizational structure depends on the product to be developed. Wheelwright and Clark define

a continuum of organizational structures between two extremes, functional organizations and

project organizations. Functional organizations are organized according to technological

disciplines. Senior functional managers are responsible for allocating resources. The

responsibility for the total product is not allocated to a single person. Coordination occurs

through rules and procedures, detailed specifications, shared traditions among engineers and

meetings (ad hoc and structured). Products that need a high level of specialized knowledge

require a functionally organized structure.

A light-weighted matrix organization remains functional and the level of specialization is

comparable to that found in the functional mode. What is different, is the addition of a product

manager who coordinates the product creation activities through liaison representatives from

each function. Their main tasks are: to collect information, to solve conflicts and to facilitate

achievement of overall project objectives. Their status and influence are less as compared to

functional managers, because they have no direct access to working-level people.


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Organization Types

1.Static Organizations

Fixed practices, fixed size. Like static equations, these organizations have no variables --

time doesn't change them significantly. They persist until some new organization

occupies their niche.

2. Dynamic Organizations :

Fixed practices, variable size. Like dynamic equations, these organizations vary in size

over time, even though their underlying practices don't change much. They go through a

single life cycle, each growing rapidly as it occupies its niche, then declining as its

competitors implement better practices that steal away its clients.


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3. Adaptive Organizations :

Variable practices, variable size. Like complex adaptive systems, these organizations

vary their practices, seeking the constant improvement that launches life cycle after life

cycle, creating new product, services, and processes that hold on to clients generation

after generation.

They will soon motivate employees to climb adaptation curves by using ISOPs to fairly

share the wealth that each innovation creates. ISOPs ensure that the innovator, the

predecessors, and each shareholder in the corporation benefits.

They will displace dynamic and static organizations in economic competition, so that

within a generation, most people will have learned to expect continual improvement in

their life experience. The fact that their ancestors once worked at the same job in the

same way for an entire lifetime will seem almost as incredible as the fact that people used

to stay at jobs they didn't thoroughly enjoy.

Functional pattern:

The pattern or common thread related to the organization's activities which are derived from the

policies, objectives and goals. Functional pattern is the approach a functional area takes to

achieve corporate and business unit objectives and strategies by maximizing resource

productivity. It is related to pursuing those activities which move an organization from its current

position to the desired future state.

1. Finance department:

The definition of finance is the provision of funds or loan supplied to an individual or company.

Often this term is used for the study of economics and how money is controlled. It can be also

defined as the management of funds and capital required by a business and private activities.


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Management of finance has also developed into a specialized branch within the financial sector

and is carried out by finance managers. Managing this involves dealing with the optimization

and allocation of funds to various areas either by borrowing or by using those available from

internal resources. The word Optimizing may sound strange but it refers to taking measures that

minimize the cost of financing while simultaneously attempting to maximize the profits out of

the employed finance. Bad debts are poor finance management where rules have not been

followed; the result of this is depressed markets, low production and a cash crisis. It is for this

very reason that finance managers are very careful with finance they agree too and where it is

funded from. Finance managers can help improve their company's profits by using external

sources which also lessens the risk on them at the same time. The famous comedian Bob Hope

best summed up the subject when he once said; a bank is a place that will lend you money but

only if you can prove that you don't need it.

Finance department goal and services:

The main goal of The Department is to provide the internal and external users of financial

statements with relevant, accurate and timely information and to guarantee that the required

financial revision is closely adhered to in order to protect the assets of the company. The

Department takes care of finance flow to ensure that the company operates within its financial

regulations and satisfies various external financial requirements. It also ensures that the corporate

financial records comply with internal and external audit. If to look through the activity of The

Department, there can be picked out the following main services it renders:

Payment of invoices and expenses

Income collection and salary management

Production and assignment of budgets, capital plans, and cash flow forecasts

Monitoring and managing financial plans


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Auditing and reporting financial condition

Giving advice on pricing and costing.

2. Marketing department:

You can have the best little business ever with wonderful potential, but if you can't market it, you

don't have a business at all.Marketing means informing your potential clients about your

products or service, and finding ways to establish and keep a customer base. Your target market

is the specific group of people that consume your product or utilize your service.Advertising

refers to the various media used to convey your message. Printed advertisement, radio air time,

television commercials and the Internet are all part of advertising that convey your business

message to the public.

Promotion refers to the various methods by which you convey your message to customers. When

you communicate with the public, you're promoting your business. Many people will join

business associations, or set up displays in malls and craft shows for promotional purposes.Many

people feel lost and uncomfortable with marketing and promotion. However, the longer you

research your market, your product and your competition, the more comfortable you will become

in marketing and promoting your products and or service. It takes time to learn what works for

your business. You will constantly need to effectively find new methods because the old

methods will stop working.

Marketing departmenttasks:

The Marketing office works to raise the awareness of the company and its prominence in the

industry and market. The global aim of the department is promoting the product/service and

increasing recognition of the company through researches and branding efforts. The department's


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strengths should all be in proper understanding of consumer behaviour and efficient decision-

making process. Typically, the major tasks of the marketing department are as follows:

*Advertising & Communication

*Direct marketing

*Conducting researches and market management

*Service Marketing

*Maintaining image and brand management

*Developing new product

*Promoting and professional sales

3. Human resource department:

Human resources is a term used to describe the individuals who comprise the workforce of an

organization, although it is also applied in labor economics to, for example, business sectors or

even whole nations. Human resources is also the name of the function within an organization

charged with the overall responsibility for implementing strategies and policies relating to themanagement of individuals (i.e. the human resources). This function title is often abbreviated to

the initials 'HR'.

Human resources is a relatively modern management term, coined in the 1960s. The origins of

the function arose in organizations that introduced 'welfare management' practices and also in

those that adopted the principles of 'scientific management'. From these terms emerged a largely

administrative management activity, co-ordinating a range of worker related processes and

becoming known, in time as the 'personnel function'. Human resources progressively became the

more usual name for this function, in the first instance in the United States as well as

multinational corporations, reflecting the adoption of a more quantitative as well as strategic

approach to workforce management, demanded by corporate management and the greater

competitiveness for limited and highly skilled workers.


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HR department goals/tasks:

The general purpose of Human Resource department is to establish proper staffing policy

and implement it on practice. The main goals and tasks of HR department are:

*organize system of effective staff training and development

*ensure the competitiveness of the company within labor market

*establish transparent system of staff assessment and promotion

*make sure that employees are satisfied with their job and careers

*ensure the proper quality of HR processes and manage HR.

4. Entreprenurship :

Entrepreneurship is the act of being an entrepreneur, which is a French word meaning "one who

undertakes an endeavor". Entrepreneurs assemble resources including innovations, finance and

business acumen in an effort to transform innovations into economic goods.As an experienced

entrepreneur, you are most likely aware that there are daily duties involved with ensuring your

business is successful. Forgetting just how many tasks there are in a day, however, is a frequent

downfall. Here is a list of entrepreneurial tasks that need to get done daily. How many have you

accounted for in your time management practices?

y Accounting: Includes budgets, payroll, financial planning, bill payments, and credit

management.

y Administration: Includes sorting and reading mail and email, filing, answering inquiries,

invoicing, bookkeeping, and purchasing.

y Computer: Includes such things as keeping your website up to date, virus scanning,

contact management, data entry, upgrading software and learning new software.

y Correspondence: Includes writing advertisements, letters, press releases and articles.


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y Human Resources: Including interviewing, hiring, firing, training, motivating and

conflict-resolution.

y Sales: Includes marketing, finding customers, client retention, promotions, advertising

and special events.

y Troubleshooting: Depending on your field, this may include computer or technical

troubleshooting, repairs, customer service and quality control.

y Warehousing: If running a product-based business, this section includes inventory

control, purchasing, shipping, delivery, receiving and storage.

y Your Own Job Duties: Not only are you running the business but you probably haveyour own specific job duties as well to..

5. Information technology department:

Information technology refers to both the hardware and software that are used to store, retrieve,

and manipulate information. At the lowest level you have the servers with an operating system.

Installed on these servers are things like database and web serving software. The servers are

connected to each other and to users via a network infrastructure. And the users accessing these

servers have their own hardware, operating system, and software tools.

IT department goals/tasks:

The main tasks and goals of the IT dep. are determined by its direct purposes - to ensure

operational state and high working efficiency of computer-supported systems. The specific goals

and purposes of IT department can vary from business to business, from company to com.

Support services can be provided for such major fields:

Maintenance and support of the computers and peripherals- bunch of periodical operations

which should be fulfilled for normal computer functionality: hardware testing, monitoring,

upgrading, making daily data back-ups and reports.


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Communication technical services - maintaining the informational infrastructure: Local Area

Networks and Wide Area Networks (LAN/WAN), ensuring data communications and telephone

systems.

Software solutions - development, procurement, installation, maintenance and support of the

various software applications.

Office and enterprise systems - development, procurement, installation, maintenance and

support of the main business software systems data, documents, payrolls etc. management,

accountancy software, Internet Web site and so on.

Informational security - establishing of informational security policy, installing, setting and

maintenance of anti-malware and anti-intrusion systems (firewalls, anti-viruses, etc.

Production department:

Production is the functional area responsible for turning inputs into finished outputs through aseries of production processes. The Production Manager is responsible for making sure that raw

materials are provided and made into finished goods effectively. He or she must make sure that

work is carried out smoothly, and must supervise procedures for making work more efficient andmore enjoyable.

Five production sub-functions

In a manufacturing company the production function may be split into five sub-functions:

1. the production and planning department will set standards and targets for each section of the

production process. The quantity and quality of products coming off a production line will be

closely monitored. In businesses focusing on lean production, quality will be monitored by all

employees at every stage of production, rather than at the end as is the case for business using a

quality control approach.

2. The purchasing department will be responsible for providing the materials, components and

equipment required to keep the production process running smoothly. A vital aspect of this role

is ensuring stocks arrive on time and to the right quality.


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3. The stores department will be responsible for stocking all the necessary tools, spares, raw

materials and equipment required to service the manufacturing process. Where sourcing is

unreliable, buffer stocks will need to be kept and the use of computerized stock control systems

helps keep stocks at a minimal but necessary level for production to continue unhindered.

4. The design and technical support department will be responsible for researching new

products or modifications to existing ones, estimating costs for producing in different quantities

and by using different methods. It will also be responsible for the design and testing of new

product processes and product types, together with the development of prototypes through to the

final product. The technical support department may also be responsible for work study and

suggestions as to how working practices can be improved.

5. The works department will be concerned with the manufacture of products. This will include

the maintenance of the production line and other necessary repairs. The works department may

also have responsibility for quality control and inspection.

Research and Development Department

The workflow of the research and development department is defined depending on the functions

the department is associated with. There are several main functions such as follows:

1. Researches for and development of new products

2. Product maintenance and enhancement

3. Quality and regulatory compliance

Lets briefly consider each of the listed functions.

Researches for and development of new products

Usually, the primary function of the R&D department is to conduct researches for new products

and develop new solutions. Each product has a finite commercial life. In order to be

competitive, the company continuously needs finding ways for new technological development


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of product range. When researching and developing new products, both the R&D managers and

their staff take responsibility of performing the following key tasks:

1. Ensuring the new product meets the product specification

2. Researching the product according to allocated budget

3. Checking if the product meets production costs

4. Delivering products in time and in full range

5. Developing the product to comply with regulatory requirements and specified quality

levels

By using VIP Task Manager, the R&D managers can organize the workflow for researches and

development of new products. In VIP Task Manager, there can be used task templates for

researches of typical products as well as for a new product specification development. VIP Task

Manager allows to add new workflow with specific task statuses.

Product maintenance and enhancement

Probably, this is the most important secondary function of R&D department. It helps to keep the

company product range ahead of the competition and enhance the life of products. Existing

products should be maintained ensuring that they can be manufactured according to

specification. For instance, an element required for an existing product may become obsolete.

When this situation happens, the department is expected to discover an alternative quickly so that

the product manufacturing will not be postponed. At the same time, the commercial life of a

product may be extended through enhancing it in some way like giving it extra features,

improving its performance, or making it cheaper to manufacture, etc. Many companies maintain

and enhance their product range, especially those ones which are engaged in microelectronics

sector. VIP Task Manager allows fulfilling this function through controlling each stage of

product manufacturing and monitoring task performance. The R&D managers can assign tasks to

engineers and technicians which are responsible for maintaining the product and finding new

components for its improvement.


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Quality and regulatory compliance

Quality is a major issue and R&D department is deeply involved in ensuring quality of new

products and attaining the required levels of regulatory requirements. In cooperation with the

quality assurance department, R&D department develops a quality plan for new products. When

a company sells a product on the marketplace, it should keep regulatory compliance with legal

requirements. For example, a products sold in the European Community should comply with the

relevant European Directives. By introducing VIP Task Manager into the workflow, the R&D

department can effective cooperate with QA department through sharing tasks and projects

aimed to development of quality plans for new products. The R&D managers can attachregulatory documents to the tasks and share them between engineers, technicians and scientists.

SWOT Analysis:

A scan of the internal and external environment is an important part of the strategic planning

process. Environmental factors internal to the firm usually can be classified as strengths (S) or

weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats

(T). Such an analysis of the strategic environment is referred to as a SWOT analysis. The SWOTanalysis provides information that is helpful in matching the firm's resources and capabilities to

the competitive environment in which it operates. As such, it is instrumental in strategy

formulation and selection.

Strengths:

A firm's strengths are its resources and capabilities that can be used as a basis for developing a

competitive advantage. Examples of such strengths include:

y patents

y strong brand names

y good reputation among customers

y cost advantages from proprietary know-how


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y exclusive access to high grade natural resources

y favorable access to distribution networks

Weaknesses

The absence of certain strengths may be viewed as a weakness. For example, each of the

following may be considered weaknesses:

y lack of patent protection

y a weak brand name

y poor reputation among customers

y high cost structure

y lack of access to the best natural resources

y lack of access to key distribution channels

In some cases, a weakness may be the flip side of a strength. Take the case in which a firm has a

large amount of manufacturing capacity. While this capacity may be considered a strength that

competitors do not share, it also may be a considered a weakness if the large investment in

manufacturing capacity prevents the firm from reacting quickly to changes in the strategic

environment.

Opportunities

The external environmental analysis may reveal certain new opportunities for profit and growth.

Some examples of such opportunities include:

y an unfulfilled customer need

y arrival of new technologies

y loosening of regulations

y removal of international trade barriers


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Threats

Changes in the external environmental also may present threats to the firm. Some examples of

such threats include:

y shifts in consumer tastes away from the firm's products

y emergence of substitute products

y new regulations

y increased trade barriers


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Punjab national bank

EXECUTIVE SUMMARY:

Punjab National Bank was recognized by Dun & Bradstreet (2009) as the Top

Public Sector Bank under t including the category of Priority Sector lending

including Financial Inclusion. Bank has also been conferred with the award by

the institute for Development and Research in Banking Technology (IDRBT,

2008) for use of technology financial inclusion.

Bank constantly innovates, reorients strategies and realigns business processes

with advanced technology to serve the customers better and earn strong brand

salience, loyalty and recall. Total income of Bank increased by 36.8% to reach a

level of Rs 22246 crore. Operating profit of Bank rose by 43.4% to Rs 5,744

crore. Total business of PNB stood at Rs 3,64,463 crore (y-o-y increase of

27.5%). Total income of Bank increased by 36.8% to reach a level of Rs 22,246

crore.

The Board Of Directors has recommended a Dividend of 200 % for the year

2008-09. Among Nationalized Bank, PNB has the largest network of 4668

offices, including 238 extension counters. All branches offer the Centralised

Banking Solution, along with a variety of financial products catering to different

market segments.

PNB has always looked at technology as a key facilitator to provide better

customer service and ensured that its IT strategy follows the Business

strategy so as to arrive at Best Fit. The bank has made rapid strides in this

direction


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Introduction :

Profile:

Punjab National Bank (PNB) is one of India's largest nationalized banks, with some

5,000 locations. The financial institution offers services in personal and corporate

banking, including industrial, agricultural, and export finance, as well as international

banking. Its personal lending services include loans for housing, autos, and education.

PNB's diverse client list includes Indian conglomerates, small and mid-sized

businesses, non-resident Indians, and multinational companies. The bank was

established in Lahore in 1895 -- before the country was partitioned into India and

Pakistan in 1947.

With over 56 million satisfied customers and 5002 offices, PNB has continued to retain its

leadership position amongst the nationalized banks. The bank enjoys strong fundamentals, large

franchise value and good brand image. Besides being ranked as one of India's top service brands,

PNB has remained fully committed to its guiding principles of sound and prudent banking. Apart

from offering banking products, the bank has also entered the credit card & debit card business;bullion business; life and non-life insurance business; Gold coins & asset management business,

etc.

Since its humble beginning in 1895 with the distinction of being the first Indian bank to have

been started with Indian capital, PNB has achieved significant growth in business which at the

end of March 2010 amounted to Rs 435931 crore. Today, with assets of more than Rs 2,96,633

crore, PNB is ranked as the 3rd largest bank in the country (after SBI and ICICI Bank) and has

the 2nd largest network of branches (5002 offices including 5 overseas branches ).During the FY

2009-10, with 40.85% share of CASA deposits, the bank achieved a net profit of Rs 3905 crore.

Bank has a strong capital base with capital adequacy ratio of 14.16% as on Mar10 as per Basel

II with Tier I and Tier II capital ratio at 9.15% and 5.01% respectively. As on March10, the

Bank has the Gross and Net NPA ratio of 1.71% and 0.53% respectively. During the FY 2009-

10, its ratio of Priority Sector Credit to Adjusted Net Bank Credit at 40.5% & Agriculture Credit


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to Adjusted Net Bank Credit at 19.7% was also higher than the stipulated requirement of 40% &

18%.

The Bank has maintained its stake holders interest by posting an improved NIM of 3.57% in

Mar10 (3.52% Mar09) and a Return on Assets of 1.44% (1.39% Mar09). The Earning per

Share improved to Rs 123.98 (Rs 98.03 Mar09) while the Book value per share improved to Rs

514.77 (Rs 416.74 Mar09)

Punjab National Bank continues to maintain its frontline position in the Indian banking industry.

In particular, the bank has retained its NUMBER ONE position among the nationalized banks in

terms of number of branches, Deposit, Advances, total Business, Assets, Operating and Net

profit in the year 2009-10. The impressive operational and financial performance has been

brought about by Banks focus on customer based business with thrust on CASA deposits,

Retail, SME & Agri Advances and with more inclusive approach to banking; better asset liability

management; improved margin management, thrust on recovery and increased efficiency in core

operations of the Bank. The performance highlights of the bank in terms of business and profit

are shown below:

Rs in Crore

Parameters Mar'08 Mar'09 Mar'10 CAGR(%)

Operating Profit 4006 5744 7326 22.29

Net Profit 2049 3091 3905 23.98

Deposit 166457 209760 249330 14.42

Advance 119502 154703 186601 16.01

Total Business 285959 364463 435931 15.09


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History:

Established in 1 895at Lahore, undivided India, PunjabNational Bank (PNB) has the distinction of

being the first Indianbank to have been started solely with Indian capital. The bank was nationalized in

July 1969 along with 13 other banks. From its modest beginning, the bank has grown in size and stature

to become a front-line banking institution in India at present.

A professionally managed bank with a successful track record of over 110 years.

Largest branch network in India - 4062 branches and 447 Extension Counters spread throughout the

country.

Strategic business area covers the large lndo-Gangetic belt and the metropolitan centers.

Ranked as 323rd biggest bank in the world by Bankers Almanac (January 2006), London.

Strong correspondent banking relationships with more than 217 international banks of the world.

More than 50 renovvl led international banks maintain their Rupee Accounts with PNB.

Well equipped deaLing rooms; 20 different foreign currency accounts are maintained at major centers

all over the globe.

The National Housing Bank (NHB) was established on 9th July 1988 under an Act of the Parliament viz,

the National Housing Bank Act, 1 987 to function as a principal agency to promote Housing Finance

Institutions and to provide financial and other support to such institutions. The Act, inter alia, empowers

NHB to:

> Issue directions to housing finance institutions to ensure their growth on sound lines

> Make loans and advances and render any other form of financial assistance to scheduled banks

and housing finance institutions or to any authority established by or under any Central, State or

Provincial Act and engaged in slum improvement and

With its presence virtually in all the important centres of the country, Punjab National Bank offers a

wide variety of banking services which include corporate and personal banking, industrial finance,

agricultural finance, financing of trade and international banking. Among the clients of the Bank are

Indian conglomerates, medium and small industrial units, exporters. non-resident Indians and


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multinational companies. The large presence and vast resource base have helped the Bank to build

strong links with trade and industry.

Punjab National Bank is serving over 3.5 crore customers through 4062 branches and 447 extension

counters - largest amongst Nationalized Banks. The Bank was recently ranked 21st amongst top 500

companies by the leading financial daily, Economic Times. PNBs attempts at providing best customer

service has earned it 9th place among Endias Most Trusted top 50 service brands in Economic TimesA.C

Nielson Survey. PNB is also ranked 368 amongst the top 1000 banks in the world according to The

Banker London.

At the same time, the bank has been conscious of its social responsibilities by financing agriculture and

allied activities and small scale industries (SSL). Considering the importance of small scale industries

bank has established 31 specialised branches to finance exclusively such industries.

Strong correspondent banking relationship which Punjab National Bank maintains with over 200 leading

international banks all over the world enhances its capabilities to handle transactions world-\vide.

Besides, bank has Rupee Drawing Arrangements with 15 exchange companies in the Gulf and one in

Singapore. Bank is a member of the SWIFT and over 150 branches of the bank arc connected through its

computer-based terminal at Mumbai. with its state-ofart dealing rooms and well-trained dealers, the

bank offers efficient forex dealing operations in India.

The bank has been focussing on expanding its operations outside India and has identified some of the

emerging economies which offer large business potential. Bank has set up representative offices at

Almaty: Kazakhistan. Shanghai: China and in London. Besides, Bank has opened a full fledged Branch in

Kabul,.

PNB also offers Internet Banking services in the country for Corporates as weti as individuals. Internet

Banking services are available through all Branches of the Bank networked under CBS. Providing 24

hours. 365 days banking right from the PC of the user, Internet Banking offers world class banking

facilities like anytime. anywhere access to account, complete details of transactions


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LOGIC OF THE LOGO :

Established in 1 895 at Lahore, then undivided India. Punjab National Bank (PNB) has the

distinction of being the first Indian bank to have been started solely with Indian capital. The bank

was nationalized in July 1969 along with 13 other banks. From its modest beginning, the bank

has grown in size and stature to become a front-line banking institution in India at present. It has

more than 4000 branches and over 400 extension counters. Strong correspondent banking

relationship, which it maintains with over 200 leading international banks all over the world,

enhances its capabilities to handle transactions worldwide. More than 50 renowned international banks maintain their Rupee Accounts with PNB

With its presence virtually in all the important centers of the country, PNB otTers a wide variety

of banking services which include corporate and personal banking, industrial finance,

agricultural finance, financing of trade and international banking. The large presence and vast

resource base have helped the bank to build strong links with trade and industry. At the same

time, the bank has been conscious of its social responsibilities by financing agriculture and allied

activities and small-scale industries.

The bank is committed to maintaining the highest standards of service and will be covering more

offices under this quaLity movement titled Alliance with Quality.

Awards and Achievments of Punjab National bannk

Awards &

Achievements ofPunjab NationalBank in RecentTimes


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Banking Technology Awards2004Runner up in 'Best IT Team ofthe Year Award 2005'

JointlyAdjudged byIBA, Finacle &TFCI

Money Outlook Award - 2004Runner up in 'Best Bank (publicSector) of the year Award' -2005

Niryat Bandhu Gold Trophy

for excellence inexportperforamnce for3 consecutiveyears 2001,

2002 & 2003by Federation ofIndianExportersOrganization(FIEO)

21st Amongst Top 500Companies

by the leadingFinancial DailyThe EconomicTimes, June2005

9th amongst India's Top 50 MostTrusted Service Brands

A.C Nielson

Survey, TheEconomic TimesDec 2004

3rd Rank amongst BankingSector in India323rd Rank in the World

The Bankers'Almanac,January 2006

368 amongst Top 1000 GlobalBanks

The Banker,London July2005


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Type of organigation

NHB is an Officer Oriented Organization and has the following departments.

1.Regulation and Supervision

2. Board and CMD Secretariat

3. Legal

4. Information Technology

5. Enabling Processes

6. Resource Mobilization and Management

7. Refinancing Operations

8. Project Finance

9. Development and Risk Management

Type of ownership:


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Vision mission and goals of company:

Vision :

To Participate prominantly in the economic and social development of

the country to a well established and compatitive credit delivery system

managed by a motivated and efficient Human resource.


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Mission

GOALS

To achieve this objective the bank aims to:

Ensure that its performance in all facts of its operations more thanmatches that of its competitors.

Maintains a comprehensive range of domestic and international activities. Maximize contributions from its key sources of personal machines

brands representation and capital. Be innovative progressive and the need of its customers with in the frame

work of operational and prudent risk taker. Act as a reputable efficient and responsible organization.

Pursue personal policies which recognize the aspirations andperformance of individual and which are suited to the devise levels of

skills.

Be a dynamic resource of economic development and growth for stakeholders through service

excellence achieving high standards of professionalism, dedication integrity and team work.

Organizational

BOARDOF DIRECTORS


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Shri s.c. Gupta Chairman & Managing Director

Shri K. Raghuraman Executive Director

Dr. K.V. Rajan RB! Nominee Director

Shri P .K. N ayar Officer Employee Director

Shri Mohan Lal Bagga Workmen Employee Director

Shri A.S. Aganval Non Executive Director

Dr. Harsh Mahajans Shareholder Director

Shri Mohanjit Singh Shareholder Director

Shri Prakash Agarwal Shareholder Director

Functionl pattens

People policies:

CBS- BENEFITS TO CUSTOMERS

Instant fund transfers

Cheques collection/deposit across cities.

Cheques can be deposited at the center where it is drawn.

Interconnected ATMs

Access of accounts through any CBS connected branch

SWIFT remittance facility Instant generation of statement of accounts

PNB Prudent Sweep- Scheme for Saving Fund A/C Holders

PNB Smart Roamer- Scheme for Current A/C Holder (Sweep in and Sweep out facility.

At present CBS facility is available in 1229 Service Outlets.


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DIFFERENT TYPES OF LOAN PROVIDED BY PNB

CONSUMER LOAN

Any Individual with a monthly income of minimum Rs.5000/-

ARLOAN

A. Individuals and Business Concerns.

PROFESSIONAL LOAN

A. The following categories of professionals are eligible to get loan under the scheme:

Persons already practicing or new entrants in various professionals. having licenses issued under Centralor State Legislations.

Associations of persons engaged in a single profession provided that each member of such an

association is qualified and duly licensed to practice in the profession; and

The qualified professionaLs wiLl be required to produce a certified copy of the license for the record at

the bank.

ED UA TJOV L OA,r

A. Education loans are given for pursuing all types of education viz, general. professional,

technical and vocational courses.


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KRISHI CARD

A. Yes, for other rural household requirements such as education, consumable items, medical expenses.

etc. up to 25% of the limit or Rs.25,ooo/- whichever is lower.

Product and services:

Being a primary dealer in the Government Securities Market the company undertakes more than 90% of

its operations in Government Securities. The range of product and senices offered by the company

includes:

Treasury Bills

Central Government Dated Securities

State Government Securities

PSU Bonds

Enter-Corporate Deposits

CSGL accounts

Money market instruments

Merchant Banking

Mutual Fund Distribution

Products .1

CONSUMER PRODUCTS

1. Saving Accounts

2. Current or demand accounts

3. Fixed accounts


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Agricultural Finance scheme:

Kissan Dost Agricultural Finance Scheme

Kissan Dost Tractor Finance scheme

Kissan Dost Aabiari Scheme

Kissan Dost Mechanization Support Scheme

Kissan Dost Farm Transport Scheme

Kissan Dost Eslah-E-Arazi Scheme

Kissan Dost Live Stock Development Scheme

Kissan Dost Live Stock Sch

2.3 SERVICES

These are the services provided by the BOP.

ATM Facility

Letter of Credit

Pay Order

On-Line Banking


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E-Banking

Debit Card

Consumer Financing

Agriculture Financing

Corporate Financing

Commission free Remittance

Demand Drafts

Collection of Utility

In addition to the above, we also offer advisory services to our clients to manage the government

securities portfolio.

The Company has well-detined systems and procedures. The Internal Control &

Management systems are in place and arc in accordance with the guidelines issued

By the Regulatory Authorities.

The Company has a lean staff of 38 employees spread over the Country with 31 employees in the

Head Ofuice in New Delhi & rest in our branches at Mumbai, Chennai, Kolkata. Ahmedabad and

Bangalore.


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During the years the Company has emerged as a leading Primary Dealer in the country. We have

to our credits

The first stand alone Primary Dealer to come with an IPO & get listed.

The first PD to achieve ISO 9001:2000 certification.

The first to obtain a PH rating from CRISIL for its short-term borrowing

program. At present the rating from CRISIL is for borrowing up to Rs 250 crore.

The company has achieved a turnover of Rs.1 16468 crores during 2003-2004,

making it one of the largest debt traders in the country.

APNA G1!AR YOJA.VA

GIIAR SUD lIAR YOJANA

LOANAGA INSTPROPERTY

LOANFOR COMMERJAL PROPERTY

FUTURERENTAL SECURITISA TION

LINEOF CREDIT FACILITY

APNA GHAR YQIANA

Weprovide housing finance to individuals for cxnstruction or for acquisition! purchase

ofhouseJflat from dcvc1oprrKnt authontics such

8/8/2019 Al

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Alam Mba Project