Crap Assgmt

CRAP Assignment 2014

SUBMITTED BY:

YASHASWI PRATEEK AKASAPU

F-262

Page | 1

INDEX

SL. NO. TOPIC PAGE NO.

1. Finance 02

2. Economics 15

3. Consulting and Strategy 18

4. Marketing 24

5. Operations 34

6. Information Technology and Systems 36

7. Human Resources 41

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Finance

1.

a) The Financial Ratios for the two given companies Johnson & Johnson and Marico, can be

obtained by the following steps

Ratio Formula Johnson &

Johnson

Marico Observations

Current

Ratio

J&J has a

higher current

ratio than

Marico and

hence higher

liquidity,

ample margin.

Quick

Ratio

J&J can raise

cash more

quickly than

Marico from

the market.

Cash

Ratio

J&J has

clearly higher

cash ration

keeping it

safe from

defaulting on

payment.

Debt to

Equity

Ratio

Lower DE

ratio means

J&J has

higher share

of equity.

Debt to

Capital

Ratio

Share of Debt

is lower for

Marico which

means J&J

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has higher

%age of debt

as Capital.

Interest

Coverage

Ratio

Earnings for

J&J are

higher per

unit of

Interest

making it

more

profitable.

Return on

Equity

Marico has

more income

on per unit of

equity which

can mean

higher profit.

Return on

Invested

Capital

J&J offers

more return

on the

Invested

Capital.

Asset

Turnover

Marico has a

higher

productivity

on assets than

J&J.

Net Profit

Margin

Marico has a

higher Profit

on Revenue

than J&J.

Higher

income share

for Marico.

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Operating

Profit

Margin

J&J has a

higher share

of Op.

Income in

sales hence

operations are

profitable.

Comparison of Performance of SBI over FY 2011-12 and FY 2012-13.

Ratio Formula SBI in 2011 -

2012

SBI in 2012 -

2013

Observations

Current

Ratio

SBI is more

liquid in 2012-

13 than it was

2011-12.

Quick

Ratio

SBI can more

quickly raise

cash from the

market in

2013.

Cash

Ratio

Cash Ratio has

remained

almost the

same.

Debt to

Equity

Ratio

DE ratio has

also reduced

little meaning

more equity

was raised.

Debt to

Capital

Ratio

Debt forms a

lesser part of

Capital in

2013.

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Interest

Coverage

Ratio

The earnings

on per unit

interest have

reduced

slightly in

2013.

Return on

Equity

Return on

Equity has

come down in

2013.

Return on

Invested

Captial

Income on the

Capital has

increased

slightly.

Asset

Turnover

Productivity of

assets has

been higher in

2013.

Net Profit

Margin

Net profit over

Revenue was

higher in

2013.

Operating

Profit

Margin

The profit

from

operations was

higher for SBI

in 2012.

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(B) . (i) Now doing the Ratio Analysis for Axis Bank for FY 2011 12 and FY 2012 13.

Ratio Formula Axis Bank in

2011 - 2012

Axis Bank in

2012 - 2013

Observation

s

Current

Ratio

Axis Bank

has become

more liquid

in 2013 and

the figure has

ample

margin.

Quick

Ratio

Axis bank

can more

quickly raise

cash in 2013.

Cash

Ratio

It has a

higher

amount of

cash

available in

2013.

Debt to

Equity

Ratio

Debt has

risen for Axis

Bank in 2013

as compared

to equity.

Debt to

Capital

Ratio

Capital was

raised using

debt in 2013

by Axis

bank.

Interest

Coverage

Ratio

The income

per unit of

interest has

reduced

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slightly in

2013.

Return

on

Equity

Income on

Equity has

gone down in

2013.

Return

on

Invested

Captial

Return on

capital was

higher in

2012. Capital

was raised

more than the

profits came.

Asset

Turnover

Asset

productivity

has remained

the same.

Net

Profit

Margin

Profit on unit

revenue has

increased.

Operatin

g Profit

Margin

The margin

of profits

from

Operations

has increased

in 2013.

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(ii) Now, doing the comparison between SBI and Axis Bank for the FY 2012-13.

Ratio Formula SBI in 2012 -

2013

Axis Bank in

2012 - 2013

Observation

s

Current

Ratio

Axis Bank is

more liquid

than SBI and

can raise cash

quickly.

Quick

Ratio

Axis Bank

can raise cash

more quickly

than SBI.

Cash

Ratio

Cash in hand

is higher for

Axis Bank.

Debt to

Equity

Ratio

SBI has more

Long term

debt to equity

than Axis.

Debt to

Capital

Ratio

Debt forms a

higher share

of capital for

SBI.

Interest

Coverage

Ratio

Earnings per

units of SBI

are higher,

making it

more

profitable.

Return

on Equity

Income on

Equity is

higher for

Axis.

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Return

on

Invested

Captial

SBI offers

more returns

on the

Invested

Capital.

Asset

Turnover

Asset

productivity

is higher for

SBI than

Axis Bank.

Net

Profit

Margin

Axis has

higher profit

per unit

revenue than

SBI.

Operatin

g Profit

Margin

Profit from

operations is

higher for

Axis Bank

than SBI.

c)

1. For the RPG Group the no. of outstanding convertible securities held by public is

10,878 which is about 0.07% of the total shares of the company. None of the partly paid

up shares are for public. The shares are mostly held by financial institutions or corporate.

Also a major part of shares are owned by Insurance companies and FIIs. Companies like

Swallow Associates LLP and Instant holdings limited are the largest shareholders of the

firm.

2. For Larsen and Toubro a large part of equity is held by public. The public shareholding

is largely split between Mutual Funds, FIIs, Financial Institutions. Individual shareholders

also form a part of the group. Companies like the Life Insurance Corp of India, Unit Trust

of India and HDFC Holdings are shareholders of L&T.

3. Current Account Deficit It is a reflection of the foreign trade of the country. It is

basically the difference between the goods and services a country imports to the goods and

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services it exports. It usually shows a country imports more than what it exports. It can be

reduced by increasing the exports to other countries, hiking export duties on products,

restricting import of items to the country.

4. Fiscal Deficit When a government outspends itself then we have fiscal deficit. If a

government spends more than it can generate in revenues, the difference is called fiscal

deficit. It has positive as well as negative effects. Fiscal deficit helps emerging economies

raise capital for their functioning. While having a large fiscal deficit can put a dent on the

countrys credibility.

Sources-

http://www.larsentoubro.com/lntcorporate/corp/pdf/shareholder%20pattern/Shareholding_Pattern

_as_on_31st_March_2014.pdf

http://www.axisbank.com/download/Annual-Report-2013.pdf,

http://www.axisbank.com/download/Annual-Report-2012.pdf

http://finance.yahoo.com/q/bs?s=AXISBANK.NS+Balance+Sheet&annual

http://www.rpglifesciences.com/downloads/shareholding/Shareholding%20Pattern%20March%2

031,%202014.pdf

http://www.sbi.co.in/webfiles/uploads/files/1339769825519_SBI_GROUP_FINANCIALS_AR1

2.pdf

2. (A) & (B)

NPV = (CFt / (1+r)t)

Formula for calculating IRR

0 = CF0 + CF1/(1+IRR) + CF2/(1+IRR)2 + ..+ CFn/(1 + IRR)

n

Year Project A Project B

0 -500 -500

1 167 200

2 180 250

3 160 170

4 100 25

5 100 30

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NPV 26.78 31.78

IRR 14% 15%

(A) As , NPV is higher for project B , B is preferable

(B) As, IRR is higher for project B , B is preferable

(C)

Rate Project A Project B

9.711% 54.87 54.87

(D)

Both NPV and IRR favour Project B, so the final decision would be to choose Project B.

And between NPV and IRR, I would use NPV to choose between the projects as NPV

directly gives the benefit I get out of the project whereas IRR assumes the intermediate

cash flows from the project to be reinvested at the same rate over time. We cannot be sure

if the projects rate of return will be constant throughout. Hence NPV would be a more

preferable method to choose the acceptance and rejection of the project.

3. (A)

Beta 1.4

E( R) 13.97%

Rf 3.80%

Rm 11%

(B)

Ke 13.97%

Kd 10%

Tax 30%

D/(D+E) 0.5

E/(D+E) 0.5

WACC 10.49%

(C) Yes, you can see in the above calculation that Cost of Debt is 10%, and above that due to

tax savings it reduces to 7%, while Cost of equity is 13.97%. Hence debt is a cheaper form of

funding.

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It is so because from the revenue generated, the debt investors get their share of interest and

principal payments before the equity investors. Equity investors carry more risk, hence the

potential reward on their investments should be greater = cost of equity should be higher.

2014 2015

No of saplings 1000 876.92

Revenue Earned 25000 23238.46

Revenue(Rs./pc) 25 26.5

Variable Cost

(Rs./pc) 9 10.25

Contribution

(Rs./pc) 16 16.25

Fixed Cost 13000 14250

EBITDA 3000 0

(D) The best capital structure for an organization would be one with maximum debt and

minimum equity. Theoretically, that is equivalent to100% debt with no equity. However, more

debt also increases risk impacting the cost of debt and finally WACC. Hence it is not possible

in practice. Ideal ratio of Debt: Equity of a company is 2:1.

4. (A) A derivative is basically a contract between two parties whose value is linked to an

underlying asset covering it. As the value of the asset rises or falls the value of the derivative will

also rise or fall. Generally these underlying assets are bonds, stocks, currencies, commodities, etc.

There are 4 most common types of Derivative contracts namely :-

Forward Contracts It is an agreement between a buyer and a seller to buy or sell

derivatives at a later date on a price agreed upon today. Sometimes they are referred to as

forward commitments. Each contract is custom designed and is hence unique.

Future Contracts It is an agreement between a buyer and a seller to buy financial

instruments or physical commodities for a future delivery at an agreed price. These are

traded on a separate Futures exchange and are subject to settlement daily.

Options Contracts These are of 2 types

o Calls When a buyer buys the option, he has a right but is under no obligation to

buy a given quantity of the underlying asset at a given price on or before a given

date.

o Puts When a buyer buys the option, he has a right but is under no obligation to

sell a given quantity of the underlying asset at a given price on or before a given

date.

Swaps These are private agreements between two parties for exchange of cash flows at a

later date according to a prearranged formula. There are two types that are widely used.

o Interest rate swaps These are related only to interest related cash flows that too in

the same currency.

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o Currency swaps These are swapping both principal and interest between the

parties with the exchange happening in different currencies.

(B) Intrinsic Value:

Strike Price 50

Stock Price Intrinsic Value

55 5

50 0

45 -5

(C)

Strike Price = $40

Stock Price = $ 43

Option Price = $5

Time Value of Option = $5 ($43 - $40) = $2

(D)

Covered Call: When an investor if slightly bullish and is holding a stock, he can

write/sell an option to gain the premium of the call option. This is covered call option

strategy.

Protective Puts: This is a position to safe guard the stocks loss during bearish

situation. In this situation one would have limited loss and unlimited profit. When an

investor has a stock and buys a put for protection against price fall.

(E) Stock Price = $40

Strike Price = $50

Premium = $2

Price Stock Value Premium

Option

payoff Total

15 -25 2 0 -23

20 -20 2 0 -18

25 -15 2 0 -13

30 -10 2 0 -8

35 -5 2 0 -3

40 0 2 0 2

45 5 2 0 7

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50 10 2 0 12

55 15 2 -5 12

60 20 2 -10 12

Hence maximum payoff = $12

(F)

Futures Forwards

Exchange Traded Private Agreements

Standardized contracts Rigid terms and conditions

No default risk Default risk

Guaranteed by clearing houses No guarantee

Marked to market daily Settled at the end of contract

High volatility Low volatility

High liquidity Low liquidity

5. When an investor holds a long in a stock and sells an option

2014

(Rs.)

2015

(Rs.)

No of saplings 1000 876.92

Revenue Earned 25000 23238.46

Revenue(Rs./pc) 25 26.5

Variable Cost (Rs./pc) 9 10.25

Contribution (Rs./pc) 16 16.25

Fixed Cost 13000 14250

EBITDA 3000 0

BEP (no. of saplings) = 879

BEP (In revenue) = Rs. 23,238

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ECONOMICS

Q6. (a).

(1). Supply curve : W = 48 + ;

W being the daily wage and L being the no. of workers employed

Cost Price for the company = CP = W*L =48 L +

Demand Curve for the coal : P = 60 - Q

P being the price of coal per ton and Q being the no. of tons sold per day.

Selling price of the company = SP = P*Q = 60Q -

It is also given that each miner produces 8 tons of coal per day

i.e. L = 1, Q=8 and

L=2 , Q=16 ==> Q=8L ..... (1)

Profit = SP-CP

Hence Profit = 60Q - 48 L -

substituting the eq (1) in the above , we get

Profit = 480L - 48 L -

Profit = 432L -

To maximize Profit , = 0

==> 432 - L = 0

==> L= 1200

Profit = 432*1200 - = $ 259200

In order to maximize the profit , the company has to employ 1200 workers and the profit earned

will be $ 259200

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(2). If the wage is $120 per day and 2000 workers can be employed.

If the no. of workers increases , then the cost price for the company increases

CP = 120 * L and

SP= 480L -

Profit = 480L - - 120L

==> Profit = 360L -

To maximize Profit , = 0

==> 360 - L = 0

==> L = 1250

Profit = 360*1250 - = $ 225000

Profit if 2000 workers are working = 360*2000 - = $144000

In order to maximize the profit , the company will now employ 1250 workers out of the 2000

willing to work.

6.(b)BRAZIL VS INDIA

STATISTICS BRAZIL INDIA

External Debt $438.90 billion

Ranked 25th. 16% more than India

$378.90 billion

Ranked 27th.

Exports $242.60 billion

Ranked 23th.

$301.90 billion

Ranked 19th. 24% more than Brazil

GDP $2.25 trillion


$1.84 trillion

Ranked 11th.

GDP per capita $11,503.01 per capita

Ranked 32nd. 4 times more than

India

$2,625.09 per capita

Ranked 130th.

GDP growth

rate

0.9%

Ranked 144th

3.2%

Ranked 96th. 4 times more than

Brazil

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GROSS

National

income

$529.00 billion


$477.00 billion

Ranked 12th

Population

below poverty

line

21.4%

Ranked 6th.

29.8%


Public Debt 58.8% of GDP


51.7% of GDP

Ranked 61st

Unemployment

rate

5.5%

Ranked 82nd.

8.5%


Inflation 5.4%

Ranked 70th.

9.7%


Source : http://www.nationmaster.com/country-info/compare/Brazil/India/Economy

Brazil and India both are the members of the BRICS, an emerging economic power house. Brazil

and India have many similarities, like time of liberalization of economy, initial economic policies.

On the GINI index Brazils score is high which indicates that the wealth distribution is not

orderly. Although India has a higher GDP than Brazil, Brazils increasing trade with China and its

emergence as the power centre in South America surely makes it worth noticing.

Brazil has also seen just like India successful democratic governments. Brazil grew rapidly

to middle-income status with very high rates of economic growth in 1960s and 1970s. However, it

has experienced extreme macroeconomic volatility and, over recent years, has recorded negligible

rates of economic growth. India, on the other hand, has a relatively low level of per capita income and

due to the high level of FDIs and FIIs exiting the market, the Indian growth has reduced to

around 5%.

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CONSULTING AND STRATEGY

CASE STUDY

Problem Statement: Increase in sales of juice leading to decrease in its profits

The possible reasons/changes causing this effect:

Fixed Costs:

The initial amount invested on machinery is huge.

More office space has been leased to establish the production line and the machinery, thus

increasing the expenses.

Expenditure in maintaining the machinery and the newly established office space is

increased.

Variable costs :

The material used for packaging has been changed to plastic from cartons, due to this change,

expenditure on importing the raw materials has increased.

The expenditure on sales charges, sales commissions, shipping charges, delivery charges have

been increased.

In order to increase the sales, the salaries of the employees have been increased and have been

rewarded with bonuses.

Operating Expenses: In order to boost the sales, the employees permanent and temporary have

been increased and the salaries of employees have also been increased.

Marketing Costs : In order to increase the sales, money has been spent on promotional events,

promotional material and advertising. While these tactics are often cost effective, they cost

money.

In order to boost the sales, the price of the product is reduced. While the price is lower, the

amount sold may gently increase, which lifts revenue. However, if the costs are not going down,

the company's margin will be smaller, leading to lower earnings.

Transportation: Increase in sales implicate more material is transported and hence the increase in

the transportation expenditure.

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Possible Solution:

The company must focus on increasing the productivity rather than increasing the sales.

The company must encourage, motivate the employees regarding the work.

The company should recognize and reward the employees rather than increasing salaries which

would in turn bring down the expenditure

The workplace must be established with efficient electronic equipment with no connectivity

problem and break down to save precious time. They should replace the place of paper work and

yield fast results.

GUESTIMATE

(A) No. of movies released in a year

Segregation on the basis of language

Approximately 250 movies are released in bollywood ( hindi )

Approximately 200 movies are released in tollywood ( telugu )

Approximately 150 movies are released in kollywood ( tamil )

Most movies are released from these 3 industries

There are about 50 movies released in English ( approximately)

Let us assume that around 50 movies are released every year in kannada and Malyalam

There are about another 20 ( assumption) regional languages under which movies are made and let

us assume that on average 20 movies are released in each language

There are about a 100 documentaries released in India under various competitions and social

awareness programs

As the craze for direction and short films are increasing , most of the students are trying their hand

in this field. This no. is huge and we are ignoring this as these are mostly uploaded on youtube.

So , the no. of movies released in a year in India = 250 +200+ 150 +50 + 50*2 + 20*20 + 100 =

1250

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(B) Cristiano Ronaldo

Estimations and the thought process:

He has played for Portugal and major clubs like Manchester United and Real Madrid

Current age = 29

Won the Balon D' or last season

Has been transferred to Real Madrid for an amount of 80 million pounds

So the factors affecting our club if Ronaldo joins include

Jersey sales

Expected no. of playing years left = 3

Ronaldo has recently won the Balon D' or award and has shown some skills in the current season.

Ronaldo joining in the club would increase the club popularity in terms of sales , but also

considering the fact that he has only 3 more years to play as he plays as a forward , and also been

through a lot of injuries.

So, I would like to buy Ronaldo for about 70 million pounds.

PORTER ANALYSIS

1. PHARMACEUTICAL INDUSTRY

(a) The Threat of New Entrants:

Low-to-moderate threat of new entrants due to some high barriers that are difficult to overcome.

The high research and development costs for new drugs increase the barrier to entry and the

government policies restrict and regulate the medicine market.

(b) The Threat of Substitutes:

Low-to-moderate threat of substitutes because it is hard to duplicate the raw materials of medicine

and no substitutes for them. With the development of technologies, biotechnology is a threat to

synthetic pharmaceutical products.

(c) The Bargaining Power of Suppliers: Low bargaining power of suppliers as pharmaceutical

industry relies on several suppliers such as chemicals. There is a low cost to switch their suppliers

and the large number of suppliers in industry decreases the bargaining power.

(d) The Bargaining Power of Buyers: Low-to-moderate bargaining power of buyers because the

main customers of pharmaceutical industry are hospitals, health care organizations and patients

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who are scattered. Hospitals and health care organizations buy in huge quantities and have

pressure on pharmaceutical companies to price adjustment. The switching cost is low. However,

the patients have low bargaining power.

(e) Rivalry amongst competitors: High competition amongst competitors. There are many

competitive pharmaceutical industries with various players and the high growth, low fixed cost

requirement and high working capital raise the competition.

2. BANKING


The average person can't come along and start up a bank, but there are services, such as internet

bill payment, on which entrepreneurs can capitalize. Banks are fearful of being squeezed out of

the payments business, because it is a good source of fee-based revenue.


There are plenty of substitutes in the banking industry. Banks offer a suite of services over and

above taking deposits and lending money, but whether it is insurance, mutual funds or fixed

income securities, chances are there is a non-banking financial services company that can offer

similar services.

(c) The Bargaining Power of Suppliers:

The suppliers of capital might not pose a big threat, but the threat of suppliers luring away human

capital does. If a talented individual is working in a smaller regional bank, there is the chance that

person will be enticed away by bigger banks, investment firms, etc.

(d) The Bargaining Power of Buyers:

The individual doesn't pose much of a threat to the banking industry, but one major factor

affecting the power of buyers is relatively high switching costs. If a person has a mortgage, car

loan, credit card, checking account and mutual funds with one particular bank, it can be extremely

tough for that person to switch to another bank. In an attempt to lure in customers, banks try to

lower the price of switching, but many people would still rather stick with their current bank.

(e) Rivalry amongst competitors:

The banking industry is highly competitive. Everyone who needs banking services already has

them. Because of this, banks must attempt to lure clients away from competitor banks. They do

this by offering lower financing, preferred rates and investment services. The banking sector is in

a race to see who can offer both the best and fastest services. They then have an incentive to take

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on high-risk projects. In the long run, we are likely to see more consolidation in the banking

industry. Larger banks would prefer to take over or merge with another bank rather than spend the

money to market and advertise to people.

3. TELECOMMUNICATIONS INDUSTRY:


In the capital-intensive telecom industry the biggest barrier to entry is access to finance. To cover

high fixed costs, serious contenders typically require a lot of cash. When financing opportunities

are less readily available, the pace of entry slows. Meanwhile, ownership of a telecom license can

represent a huge barrier to entry.


Products and services from non-traditional telecom industries pose serious substitution threats.

Cable TV and satellite operators now compete for buyers. The cable guys, with their own direct

lines into homes, offer broadband internet services, and satellite links can substitute for high-

speed business networking needs. Just as worrying for telecom operators is the internet: it is

becoming a viable vehicle for cut-rate voice calls and it could take a big bite out of telecom

companies' core voice revenues.

(c) The Bargaining Power of Suppliers:

At first glance, it might look like telecom equipment suppliers have considerable bargaining

power over telecom operators. Indeed, without high-tech broadband switching equipment, fiber-

optic cables, mobile handsets and billing software, telecom operators would not be able to do the

job of transmitting voice and data from place to place. But there are actually a number of large

equipment makers around. The limited pool of talented managers and engineers, especially those

well versed in the latest technologies, places companies in a weak position in terms of hiring and

salaries.

(d) The Bargaining Power of Buyers:

With increased choice of telecom products and services, the bargaining power of buyers is rising.

Telephone and data services do not vary much, regardless of which companies are selling them.

For the most part, basic services are treated as a commodity. This translates into customers

seeking low prices from companies that offer reliable service. At the same time, buyer power can

vary somewhat between market segments. While switching costs are relatively low for residential

telecom customers, they can get higher for larger business customers, especially those that rely

more on customized products and services.

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(e) Rivalry amongst competitors:

Competition is "cut throat. New technology is prompting a raft of substitute services. Nearly

everybody already pays for phone services, so all competitors now must lure customers with

lower prices and more exciting services. This tends to drive industry profitability down. In

addition to low profits, the telecom industry suffers from high exit barriers, mainly due to its

specialized equipment.

Source : Investopedia

Page | 24

MARKETING

1.

a) Marketing encompasses the process through which the value of goods and/or services is

conveyed to customers for the purpose of selling those goods and/or services. Traditionally,

marketing comprises of the 4Ps, also known as the marketing mix. These are:

Product : This is the good or service that one plans to sell. It is important to understand

who the customer is and what they want from the product, how she/he will utilize the

product, be benefitted by it and, the after sale services. Deciding the products quality,

features, design and packaging is also a crucial element here.

Price : This is what a customer must pay for purchasing the product. Here, it is important

to understand the value of ones product to the customer. One also has to consider profit

margins, discounts, pricing of competitors, price sensitivity of the customer, how the

product will be priced for retail and wholesale etc.

Place : Place incorporates decision related to the distribution of channel your products, the

inventory, the logistics, the location where your products will be available, the coverage of

your products, how your product will be placed and sold

Promotion : Promotion is the way by which ones product is communicated to consumers

such that they become your customers by purchasing the product. It includes identifying

the best time and place to promote ones product to the targeted consumers. Methods such

as advertising, public relations, personal sales, sales promotions and direct marketing are a

part of Promotion.

b)

I. Hindustan Unilever (HUL)

i. Lifebuoy

Product Lifebuoy is a soap that has HUL has been producing for over a

century now. It started out as a soap that was basically for killing germs

rather than any other utility. It has slowly extended into the bathing soap

space as well

Price Lifebuoy is priced in a way that most income groups can easily buy

it. Because it is placed as a utility soap and not as a luxury soap, the low

price helps all income groups take its benefits

Place The distribution focuses as much on rural areas as on urban areas.

HLL has tried to tie up with Self Help Groups in the rural areas to distribute

it better.

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Promotion Lifebuoy is clearly communicated as no frills hygiene soap

that is affordable and a soap the entire family should be using. The price

makes it very marketable product in rural areas and so a lot of tie ups and

promotions are done at the rural level along with NGOs and government

bodies, etc.

ii. Pepsodent

Product Pepsodent is a toothpaste brand that has been in the market

globally for almost a century. It is basically targeting an audience which is

concerned as much about the health effects on the teeth and gums as the

other aspects like fresh breath, etc

Price Although the price of the product is not high, it is not sold as a

cheap toothpaste. It is marketed as an affordable toothpaste that is required

daily in order for people to maintain their oral hygiene

Place The toothpaste is made available through supermarkets and big

retail chains for the middle and upper class groups. It is also made available

through the local grocery shops so that lower to lower middle class groups

can also procure it

Promotion Pepsodent is projected as a toothpaste that will provide oral

hygiene to people at an affordable cost. It targets all members of a typical

family. It also recently had a campaign against Colgate Palmolive to

increase its market share

iii. Ponds

Product Ponds is a brand of beauty and health products. It is mostly

exclusively marketed to women. It is projected as an all purpose skincare

brand

Price The aim of the product is to provide a high quality product at a low

price. Hence the price of the product is on the lower side

Place As the product is not a utility product, it has little presence in the

rural areas. The major distribution channel is the local grocery shops

Promotion The baseline of Ponds is As beautiful as you want to be. It

also sends out a message clearly saying that the cream makes your skin

softer.

II. Nestle

i. KitKat

Product Kitkat is a wafer based chocolate that is popular all over the

world. It was launched as the only product in its market and had a clear first

mover advantage in India.

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Price Due to the introduction of the smaller packs, the pricing of KitKat

has been such that it is affordable to most lower medium, medium and large

income groups.

Place The brand does not have a presence in the rural India. It is available

mostly through the local grocery shops.

Promotion The promotion of KitKat has always focused on two things.

The first is the way it is consumed which gives it a fresh look. The second

has been that a Kitkat should be synonymous with having breaks. These

two have shaped the promotion of the product

ii. Maggi

Product Maggi is a brand of instant noodles, soups and sauces that have

been exceptionally popular in India.

Price The price of Maggi has been low in order to market it as a no frills

instant food.

Place Maggi has an extensive distribution channel which covers even

there most remote places in the country.

Promotion The product has been marketed as a quick food even though it

may have not been ready-to-eat. The 2 minute noodle concept was

pioneered by Nestle for magi and has remained the distinguishing feature

for the brand for a long time

iii. Munch

Product Munch is wafer based chocolate that is projected as a light and

quick snack

Price The packaging for munch has changed and so the price come down

so that it can be affordable to all sections of the society

Place Distribution for munch is mostly limited to the urban areas where it

is sold in supermarkets, retail chains as well as local grocery shops

Promotion Munch is promoted as an anytime consumption product. It is

targeted to customers also in a way that its light and also the price makes it

a good proposition for an impulse buy.

III. Coca Cola

i. Kinley

Product Kinley is packed drinking water offered by coke. It also has a

soda product in its line. Considering Indias growing hygiene concerns, this

product was launch also looking at the increased purchasing power of the

people

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Price The launch of pouches made the price very affordable to people

even in rural areas where the consumption of the PET bottles may have

been low

Place The product uses cokes extensive distribution channel and is

available in most grocery shops both in rural and urban areas.

Promotion The company targeted the consumers who had an increasing

concern over the hygiene of ordinary tap water. Coke as a brand used its

credibility to win over customers

ii. Minute Maid

Product Minute maid is a pulp based beverage which comes in various

fruit flavors like orange, apple, mango. It is a one of its kind product due to

its pulpy nature

Price The price for minute maid is not premium and the product is mostly

for selling in the urban areas. The product has a higher price as compared to

its substitutes

Place The product is distributed through cokes well established channels

and is available mostly in the urban areas

Promotion Because it has a fruit base, the product is placed as a healthy

alternative that is also refreshing. The nutrition factor is also played up

stating all the heath benefits that come with Minute Maid

iii. Diet Coke

Product Diet coke is a healthy alternative to the regular cola that the

company sells. The drink contains no sugar and only has artificial

sweeteners

Price The product is sold at a premium considering its placement as a

healthier option with no compromise on the taste.

Place The product is available mostly in the urban areas considering the

health concerns of people in the urban areas

Promotion The product is marketed in conjunction with a lot of health

clubs to promote the health aspect. It also claims that it has herbal

ingredients and hence is not completely artificial

IV. Pepsico

i. Kurkure

Product Kurkure is a snack that is rice based. It comes in various flavors

and is continuously expanding in terms of its range

Price The packaging of the product is such that the smaller variants are

popular in the rural areas whereas the bigger variants are successful in the

urban areas

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Place The distribution of Pepsico is leveraged and the product is available

in both rural and urban areas

Promotion The product is palced as fun and quirky. It is now also being

positioned as a replacement to biscuits during evening tea

ii. Mountain Dew

Product The product is a non cola beverage that targets the youth of the

country with its adventure based positioning

Price The price is comparable to all the other carbonated beverages

Place The distribution is to all of rural and urban India. The reach of the

product is in the far flung areas as well

Promotion The product is placed as a drink for people with interests in

adventures and outdoors and the advertisements target the same

iii. Gatorade

Product Gatorade is an energy drink targeted at the youth. It is

specifically targeted at sportsmen and is to be used before and after their

physical activity

Price The product is a premium product that is targeted to the middle and

upper income groups

Place The product is mostly available in metros along with Tier 1 and 2

cities.

Promotion The product is marketed as a drink which will provide the

essential nutrients along with the energy required during a physical activity.

It also claims to provide instant energy

2.

i. Segments

a. Value conscious customers (Psychographic)

These are customers who assess the quality and features of goods or services they

are getting in lieu of the price they are paying for it; they always spend their

money wisely

b. Small business owners/executives (Behavioral)

These are customers who need to travel frequently for work however, will prefer

saving money on travel since every penny saved contributes towards their

business.

c. Young adults (Demographic)

These are customers who have just started working or interning and thus, will

prefer saving money when they travel.

Page | 29

ii. Value Conscious Customers

a. The airline is 35% cheaper than other national airlines and so, these customers will

prefer flying by this airline to save money

b. The airline has less staff however, these customer would not complain about since

they will equate less staff to money saving feature of the airline

c. Similarly, these customers will understand the policy of no free food on the airline.

iii. Name of airline company under Sunrise Airlines W.Ind Airways (Western India

Airways)

Tagline for airline Taking you places, like never before

Reasons for name and tagline:

W.Ind stands for Western India, this is to commemorate the origin of the flights

Wind (W.Ind) is also clearly associated to flying and should easily connect

consumers to the airline.

Taking you places like never before implies that the airline will take its customers to

destinations but in a different way to other flights. This will make it easier for customers to

accept the 60 seater aircraft.

3.

1. Maggi

Brand Origin

Maggi, a subsidiary of Nestle, is a popular name in Indian and Malaysian

households where it is often used as a synonym for instant noodles. The Maggi

brand also comprises of sauces, soups, stock cubes and seasoning.

Maggi originates from the name Julius Maggi who founded the company in 1872.

During the 19th century Industrial Revolution of Switzerland, women started

working in factories and thus, nutrition levels in working class families were found

to be negatively impacted. To battle this, Julius Maggi, along with physician

Fridolin Schuler began experimenting to develop a new product. In 1884, they

introduced legume meals that were rich in proteins however, this did not make the

impact they expected. Then, in 1886, Julius and Fridolin introduced ready-to-eat

soups with dried vegetables which became very popular. Over the years, more

products such as Maggi flavoring, stock cubes, sauces and seasoning were

developed. Julius opened several subsidiaries of his company which eventually

merged with Nestle in 1947

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In 1982, Nestle India Limited launched Maggi in India, causing a revolution in the

Indian packaged food industry by creating a new food category of instant noodles.

Promotional Campaign

In India, Nestle India Limited had to overcome several hurdles while trying to

penetrate the market in 1982. Although there was no direct competition, Maggi

noodles had to combat the traditional and fixed food habits of the Indian palate.

These consumers were also new to the idea of packaged food, making promotion a

bigger challenge. Thus, Maggi noodles were positioned as a hygienic, home-made,

between-meals snack. This is because Nestle India Limited understood that Indian

consumers could not replace Roti or Rice from their meals.

Initially, marketing efforts were aimed towards working women by positioning

Maggis instant noodles as a product of convenience. However, in-spite of heavy

advertising, sales did not pick up. Later, research showed that children were the

largest consumers of the noodles and so Nestle India Limited re-focused its effort

towards children and their mothers; the product was repositioned as fun for

children and convenient for mothers.

Catchy taglines such as 2 minute noodles, Bas 2 minute, Mummy mummy

bhook lagi and, Fast to cook, good to eat were used in Nestle India Limiteds

campaign which have grown to be identified with the product. As a part of its

promotional strategy, Nestle India Limited also handed out free samples of Maggi

noodles, packaged the product in varying sizes and offered free gifts in lieu of

empty Maggi noodles packets.

Sources:

https://www.nestleprofessional.com/australia/en/SiteArticles/Pages/TheHistoryofJu

liusMaggi.aspx?UrlReferrer=https%3a%2f%2fwww.google.co.in%2f

http://nicheiima.wordpress.com/2012/08/22/brand-story-maggi/

http://www.slideshare.net/probikersagar/brand-study-maggi

http://www.slideshare.net/yachikaverma1/maggi-writeup

2. Coca Cola

Brand Origin

Coca Cola, popularly referred to as Coke, is an aerated drink sold in over 200

countries. It is a product of The Coca Cola Company that sells over 1.8 billion

beverage servings a day.

Page | 31

Coca Cola originated in Georgia, United States of America and was invented by a

pharmacist, John Pemberton, in 1886 as a cure for headache, morphine addiction

etc. Jacobs Pharmacy in Atlanta first sold Coca Cola from a soda fountain for five

cents a glass, roughly nine servings a day were sold the first year. Frank Robinson,

Pembertons book-keeper, suggested the name Coca Cola and wrote it in the

cursive writing which is used as its logo till date.

In 1888, prior to his death, John Pemberton started selling his business; a majority

of the portion was sold to Asa Candler who claimed full ownership by 1889. By

1895 Candler expanded Coca Colas sales to every state of USA.

In 1894, Coca Cola was put in bottles for the first time by Joseph Biedenharn of

Mississippi. He installed a bottling machine behind his soda fountain in order to

make the popular drink portable. This model was taken to a large scale by

Benjamin Thompson and Joeseph Whitehead in 1899, who got the rights to bottle

and sell Coca Cola while Candler continued to sell the syrup.

Till date, the company produces syrup which is sold to soda fountain distributors

and to licensed Coca Cola bottlers across the globe; territories of the bottlers are

exclusive. Bottlers finish the product by adding filtered water and sweeteners to the

syrup and carbonating it. Finally, the beverage is put in cans or bottles and

distributed further.


From the beginning, the creator of Coca Cola understood the importance of using a

promotional mix. As early as May 29 1886, Pemberton first advertised the

beverage in the Atlanta Journal. In 1887-88, coupons offering free samples of Coca

Cola were distributed and roughly 8.5 million coupons were redeemed.

Under Candler, calendars were first used to advertise Coca Cola and in 1892, he

sanctioned a budget of $11000 towards advertising of the product. In 1896,

promotional gifts such as soda fountain urns and clocks bearing Coca Colas logo

were given to pharmacies distributing the beverage.

In 1900, Hilda Clark became the first celebrity to appear in several advertising

formats for Coca Cola. At this time, the advertising budget was over $100,000

however, within a decade the budget shot up to over $ 1 million. This growth in

advertising budget has steadily increased over the years.

Coca Cola was the first official commercial sponsor of the Olympic Games (1928);

it has sponsored many sporting events such as FIFA World Cup, NASCAR etc and,

Page | 32

has many sports marketing relationships till date with baseball, basketball, football

and hockey teams.

Till date, Coca Cola features many movie, music and sports celebrities in its

commercials and, the brand has been featured in many films and television

programs. Coca Cola continues to use a healthy promotional mix by tapping all

types of media available.

Sources: http://assets.coca-

colacompany.com/7b/46/e5be4e7d43488c2ef43ca1120a15/TCCC_125Years_Book

let_Spreads_Hi.pdf

http://en.wikipedia.org/wiki/Coca-Cola

http://www.worldofcoca-cola.com/coca-cola-facts/coca-cola-history/

3. Lifebuoy

Brand Origin

Lifebuoy is a brand of soap manufactured by Unilever. It is the second oldest soap

brand and, was launched in England by the Lever Brothers in 1894. Lifebuoys

goal was to make hygiene and health accessible to people at an affordable price.

The brand went Global in 1911 and was taken over by Unilever in 1987.

William and James Lever began a small factory in 1885 in England, where they

used vegetable oils to make soap instead of tallow. Their first soap, called Sunlight

Soap, was primarily used for household cleaning. As their business grew, the Lever

Brothers began to experiment with soap, eventually giving life to Lifebuoy.

The soaps redness and medicinal scent came from carbolic acid (also known as

phenol); it was the first soap to use this ingredient. The addition of carbolic acid to

soap was considered a breakthrough however; it was discontinued by the European

Union as it was a potentially toxic ingredient.

Originally, Lifebuoy was invented to cater to improper sanitation conditions and

abolish fatal diseases among workers of industrial England. The soap was also sent

to soldiers during World War I in order to keep them hygienic and healthy.

Lifebuoy was considered an affordable soap for the economically weaker section.

This is because product had a fragrance which appealed to a limited number of

consumers.

In the early 1900s, Lifebuoy tried appealing to a female audience by launching the

character of a mother in their advertisements who cares for the health and

Page | 33

happiness of her family; this mother promoted the use of Lifebuoy. A decade later,

when people started indulging in products to boost their confidence, Lifebuoy

shifted its product image to fighting body odor. By the 1950s, Lifebuoy introduced

Puralin in its soaps, making it more fragrant, softer and the colour milder.

In India, Lifebuoy was introduced in 1895 and was promoted as a soap that kills

germs and keeps the body healthy. It makes a sizeable amount of sales in the

Indian rural market.


Lifebuoy has changed its brand image several times however; it has always been

clear about its vision of bringing hygiene and good health to people. Lifebuoy has

always been committed to educating people about germs and microbes. One such

effort in this light was organizing door-to-door campaigns to demonstrate the

proper technique for washing hands.

Catchy phrases like Knocks out B.O (body odor) and Lifebuoy hai jahan,

tandarusti hai wahan have succeeded in portraying an image of cleanliness and

hygiene for the brand.

Lifebuoy has also promoted itself by helping people in times of calamities. During

the Tsunami of 2004, Lifebuoy bars were sent in relief packages in order to prevent

diseases. In 1940s Blitz of London, Lifebuoy set up free mobile washing facilities,

they provided aid when an Earthquake hit India and Pakistan in 2005 etc.

Over the years, Unilever has promoted Lifebuoy using a mix of promotional

strategies including advertising in print media, outdoor media, in television

commercials etc. However, more importantly, Unilever, through brand extension,

has expanded the range of products under the Lifebuoy tag in order to appeal to a

wider audience. Products such a liquid hand wash, sanitizers, shower gel, talcum

powder etc. were introduced to give the brand a family image and to break away

from the older image of a brand for the economically weaker section.

Sources :

http://www.lifebuoy.com/about-us/history-of-health/

http://www.ukessays.com/essays/marketing/lifebuoy-is-the-worlds-number-one-

soap-marketing-essay.php

http://www.slideshare.net/SiddharthTripathi1/lifebuoy-16609163

http://www.ehow.com/about_5412194_history-lifebuoy-soap.html

Page | 34

OPERATIONS

1.

Theory of Constraint is an overall management philosophy introduced by Dr. Eliyahu M Goldratt

in his book 1984 titled The Goal that is for improving connection and achieving their goals.

It helps in achieving more of of its goals by a very small number of constraint.

The Theory of Constraints takes a scientific approach to improvement. It hypothesizes that every

complex system, including manufacturing processes, consists of multiple linked activities, one of

which acts as a constraint upon the entire system (i.e. the constraint activity is the weakest link in

the chain).

Example- To manage a constraint, it is first necessary to identify it. In The Goal, the NCX10 was

identified as the constraint. This knowledge helped the company determine where an increase in

"productivity" would lead to increased profits. Concentrating on a non-constraint resource would

not increase the throughput (the rate at which money comes into the system through sales)

because there would not be an increase in the number of products assembled. There might be local

gains such as a reduction or elimination of the queue of work- in process waiting in front of the

resource. But if that material ends up waiting longer somewhere else, there will be no global

benefit. To increase throughput, flow through the constraint must be increased.

Once the constraint is identified, the next step is to focus on how to get more production within

the existing capacity limitations. Goldratt refers to this as exploiting the constraint One example

from The Goal was when the company and the labor union agreed to stagger lunches, breaks, and

shift changes so the machine could produce during times it previously sat idle. This added

significantly to the output of the NCX10, and therefore to the output of the entire plant. To

manage the output of the plant, a schedule was created for the constraint. The schedule showed

the sequence in which orders would be processed and their approximate starting time.

2 E-commerce is an emerging trend and the e-commerce in food and beverage industry is yet to

take off as in the retail industry. The Supply chain of the e-commerce food delivery business

houses like Food Panda is

Receive the Order Online:

The customer selects the restaurant of his preference and then order online with his

food preferences. This order is received to the Food Panda Team.

Communicate the order with the restaurant & the delivery person:

Page | 35

The specific restaurant from which the customer has ordered food is communicated

with the order and the information regarding order pick up time is informed to the

delivery person.

Pick up the deliverables and delivery:

The order from the restaurant is picked up by the delivery person and is delivered

at the customer site.

Close the Order and ask for feedback.

The e-commerce sites should have a partnership with the restaurants such that the food is picked

up by the restaurants in house delivery person, such that the cost can be reduced the order can be

delivered fast.

3.

Page | 36

INFORMATION TECHNOLOGY & SYSTEMS

1.

a) Business intelligence (BI) is a broad category of applications and technologies for gathering,

storing, analyzing, and providing access to data to help enterprise users make better business

decisions. BI applications include the activities of decision support systems, query and reporting,

online analytical processing (OLAP), statistical analysis, forecasting and data mining.

Business intelligence can be applied to the following business purposes, in order to drive business

value:

i) Measurement program that creates a hierarchy of performance metrics (see also Metrics

Reference Model) and benchmarking that informs business leaders about progress towards

business goals (business process management).

ii) Analytics program that builds quantitative processes for a business to arrive at optimal

decisions and to perform business knowledge discovery. Frequently involves: data mining,

process mining, statistical analysis, predictive analytics, predictive modelling, business process

modelling, and complex event processing and prescriptive analytics.

iii) Reporting/enterprise reporting program that builds infrastructure for strategic reporting

to serve the strategic management of a business, not operational reporting. Frequently involves

data visualization, executive information system and OLAP.

Disaster Management in IT

The United Nations defines a disaster as a serious disruption of the functioning of a community or

a society. Disasters involve widespread human, material, economic or environmental impacts,

which exceed the ability of the affected community or society to cope using its own resources.

With advancement in Information Technology in the form of Internet, GIS, Remote Sensing,

satellite communication, etc. can help a great deal in planning and implementation of hazards

reduction measures. GIS can improve the quality and power of analysis of natural hazards

assessments, guide development activities and assist planners in the selection of mitigation

measures and in the implementation of emergency preparedness and response action.

b) Disruptive technology

The term "disruptive technology" has been widely used as a synonym of "disruptive innovation",

but the latter is now preferred, because market disruption has been found to be a function usually

not of technology itself but rather of its changing application. Sustaining innovations are typically

innovations in technology, whereas disruptive innovations change entire markets. For example,

Page | 37

the automobile was a revolutionary technological innovation, but it was not a disruptive

innovation, because early automobiles were expensive luxury items that did not disrupt the market

for horse-drawn vehicles. The market for transportation essentially remained intact until the debut

of the lower priced Ford Model T in 1908.The mass-produced automobile was a disruptive

innovation, because it changed the transportation market.

c) The potential benefits of the technologies discussed in the report are tremendousbut so are

the challenges of preparing for their impact. If business and government leaders wait until these

technologies are exerting their full influence on the economy, it will be too late to capture the

benefits or react to the consequences.

1) Banking - The arrival of mobile computing, social media, digital payments, and web-

based, face-to-face communications like Skype have radically changed the way people buy

products and interact with organizations. Not surprisingly, these technologies have created

opportunities for disrupters to enter the sector with low-cost, focused offerings

unencumbered by legacy business models. In the United States, for example, Wal-Mart

has introduced reloadable pre-paid offerings that act like checking accounts. PayPal and

Bitcoin are now enabling payments outside the banking system.

2) Across the pond, British bank Barclays is taking a bold approach to digital transformation.

Its strategy is to use technology to get closer to customers and simplify their lives. In order

to become the Go-To Bank for consumers, the firm rapidly launched some breakthrough

services like Pingit (Europes first mobile payment app) and Cloud IT

3) Retail- To date, online pure-playssuch as Amazon and ASOSand smaller retailers

have achieved far more cloud-based agility than the large bricks-and-mortar retailers. For

these long-established retailers, a key stumbling block has been assumptions about their

core systems.They fear disrupting these systems, particularly point of sale (POS). And

because they perceive their core systems as differentiators, they often write the software

in-house, which means significant resources are tied up in technology maintenance and

upgrades

2.

I agree with Steve Ballmer. Although the in a cloud computing system, there's a significant

workload shift. Local computers no longer have to do all the heavy lifting when it comes to

running applications. Instead of installing a suite of software for each computer, you'd only have

to load one application. That application would allow workers to log into a Web-based service

which hosts all the programs the user would need for his or her job. Remote machines owned by

another company would run everything from e-mail to word processing to complex data analysis

programs. It's called cloud computing, and it could change the entire computer industry.

Page | 38

Cloud computing is a general term for anything that involves delivering hosted services over the

Internet. These services are broadly divided into three categories: Infrastructure-as-a-Service

(IaaS), Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS). The name cloud

computing was inspired by the cloud symbol that's often used to represent the Internet in

flowcharts and diagrams.

A cloud service has three distinct characteristics that differentiate it from traditional hosting. It is

sold on demand, typically by the minute or the hour; it is elastic -- which means that a user can

have as much or as little of a service as they want at any given time; and the service is fully

managed by the provider (the consumer needs nothing but a personal computer and Internet

access). Significant innovations in virtualization and distributed computing, as well as improved

access to high-speed Internet and a weak economy, have accelerated interest in cloud computing.

b)

1) The cloud is already displacing traditional roles in user IT organizations, and will

progressively hit smaller IT providers (including cloud ones) through an inevitable process

of market consolidation. The few large remaining vendors will be headquartered and

operating in certain countries and not others. So what are we going to do with all those IT

specialists that many digital agendas say we need to modernize the country? Will they all

find a job in technology, maybe moving up the value chain or inventing uses of IT that we

cannot even imagine now, or will they be underemployed or unemployed? Should a state

or a nation or a province maintain local infrastructure, local software development, and

local data management as a way not to lose its technical edge?

2) If large cloud provider become target of terrorist attacks or just go out of business, should I

put all my eggs in their basket? Many debate the actual or perceived reliability and

security of cloud providers. But as they grow bigger and we rely on them for more and

more of our IT needs, they become a possible target for physical or cyber terrorist attacks.

In the past enemies would try to neutralize your manufacturing and transportation

capabilities, but in the future they may simply coordinate attacks to cloud providers to hurt

multiple countries at once.

3) Even in a more peaceful world, events over the last few years have shown that no

organization is too big to fail, actually will do. Could a series of incidents or a financial

crisis affect the viability of cloud service providers? And even if we could manage to

retrieve all our data, would we ever have enough space to store it all, after years that we

have relied on cheap and apparently limitless storage? Would we have the bandwidth to

transfer pet bytes of data when everybody else is trying to do the same?

2) b)

Banking - Banking technologies grow increasingly complex by the day. Financial institutions

need an easier, more cost-effective IT strategy, and CS delivers bank technology services that give

you the competitive advantage. Your bank systems and technology must be optimized for bank

Page | 39

compliance, risk management, bank information security and IT efficiency. Seventy-one percent

of bank executives surveyed in a recently released report say they plan to invest more in cloud

computing, nearly four times the figure a year earlier, according to PricewaterhouseCoopers.

(About half of the 115 large banks surveyed around the world are based in the U.S.) One reason

for this shift, according to Julien Courbe, PwC's financial services technology leader, is that

vendors of public cloud services have made their offerings to banks more secure and reliable. To

improve security, cloud providers are encrypting data in storage as well as in transit. They've also

made significant investments in identity and access management.

IT - With more and more people owning multiple computing devices laptops, tablets and

smartphones, the idea of your data being locked away in the belly of a desktop PC seems

antiquated. Sharing large files with friends is now easier than ever, as we no longer have to hope

that the data we send wont bounce back due to limits imposed by email servers. Instead we just

send a link to files stored within a cloud service and friends or colleagues then have access

immediately. In fact, if this is all you want to do then there are the likes of WeTransfer and

HighTail that specialise in this area rather than long-term storage. Choosing which service to use

will depend on several factors - your preferred OS, how much space you need, and the levels of

security your data requires. In this feature we take a look at the most popular service to see just

how much you can get for nothing. Apple, Microsoft, Canonical (Ubuntu's parent company), and

Google with Chrome all integrating their cloud services right into the operating system, for now,

Dropbox is still the best personal cloud file storage, but eventually, I see operating systems with

built-in cloud storage integration surpassing it. Google and Microsoft, in particular, seem to be

doing a good job with this. Dropbox won't go away though. We'll always need a universal, easy-to

use cloud storage service.

3. Chief Information Officer (CIO) or Information Technology (IT) Director, is a job title

commonly given to the most senior executive in an enterprise responsible for the information

technology and computer systems that support enterprise goals. Information technology and its

systems have become so important that the CIO has come to be viewed in many organizations as

the key contributor in formulating strategic goals for an organization. The CIO manages the

implementation of the useful technology to increase information accessibility and integrated

systems management. As a comparison, where the CIO adapts systems through the use of existing

technologies, chief technology officer develops new technologies to expand corporate

technological capabilities. When both positions are present in an organization, the CIO is

generally responsible for processes and practices supporting the flow of information, whereas the

CTO is generally responsible for technology infrastructure.

Page | 40

Yahoo's search for leadership has gone down many familiar roads: industry outsider (Terry

Semel), return of founder (Jerry Yang), and proven operator (Carol Bartz). But with Scott

Thompson, Yahoo is taking one of the least-travelled paths to a CEO, by picking a former CIO.

Thompson's enterprise IT chops are legit: He was CTO at PayPal, executive VP of technology at

Visa's tech subsidiary, Inovant, and CIO at Barclays Global Investors. And he worked in the

trenches delivering IT projects at Coopers & Lybrand. It is believed that Thompson's tech-heavy

experience is right for the huge turnaround Yahoo faces. So, the trend shows it all.

Page | 41

HUMAN RESOURCES (HR)

1. Two major Industrial Relations (IR) disputes that I would like to discuss are the Toyota

Kirloskar Motors labour unrest in the first quarter of this year and the labour unrest at Nokias

plant in Chennai.

Reason for the dispute & role of stakeholders

Toyota Kirloskar Motors

There were negotiations happening over the period of 10 months but there was no agreement

reached between the management and workers union over wage increments and benefits. The

union made a wage increase of Rupees 4000 per month whereas the management settled for

Rupees 3050.

Nokia India

Demand for wage increases was again the reason for the dispute. The union says that it all started

when some of the employees were suspended for refusing to work on an assembly line. The

management says that the employees were not working according to standing orders and the

company values.

Impact on the company (employer and worker)


The workers went on strike for 3 days at the factory near Bangalore and so the company had to

declare a lockout at the two plants resulting in huge production loses and affecting 6000

employees. The company also had 2000 units of lost production due to these unrests.

Nokia India

Nokia signed a deal worth $7.2 billion with Microsoft resulting in employee apprehensions about

losing their jobs. Nokia has a factory in Sriperumbudur , Chennai and that area is prone to

frequent unrests in the past with almost all the automotive companies. Nokia offered Voluntary

Retirement Scheme (VRS) where they offered to pay 2.5 lakhs. About 5000 people have already

left fearing of losing their jobs.

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Impact on the sector


Automotive sector has witnessed lot of labour unrests in the past decade and each incident has had

a ripple effect on the other providers. Almost all the providers had labour disputes in the past and

the state governments had to intervene to negotiate a deal between the management and union.

Nokia

Nokia is the only handset maker that faced labour unrest in the recent years in India. It all started

when Nokia was involved in a legal battle with the tax authorities over Rupees 21000 crores. In

addition to this the state government imposed Rupees 2400 crore tax notice on the company over

the domestic vs export units.

HR Policies adopted to prevent labour unrest at workplace


Improved worker conditions, resolve the disputes internally so that there is no disruption to

production and improved communication process.

Nokia

Voluntary Retirement Scheme (VRS) and Bridge initiative where consulting services were

offered to people to find work in other sectors such as garment, automotive, retail and

hospitality.Training and upgradation on skills.

2.

Case 1:

I will first talk to Rounak by setting up a meeting with him and provide him the feedback

in the Positive, Negative and Positive format. Because by giving negative feedback

directly Rounak may turn defensive.

I will be then provide specific examples including the case where he made sarcastic

comments and inform him that it is illegal to pass comments on the colleagues and that he

can be subjected to harassment policies.

Inspite of this advice if he continues to maintain the behavior then I will inform our

immediate manager who can then talk to Rounak about the various issues.

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Case 2:

Usually people with work experience tend to behave appropriately than freshers as they

have seen different issues at workplace and so have learnt to apply the concept as it

deemed suitable for that situation.

In this case first I will talk to the person one on one to find out if he has any issues as he

might have personal issues which is affecting the performance.

I will tell him that he is being passed on most projects because of his behavior and so to

remain competitive he needs to amend his behavior otherwise he might lose his job.

Then I will monitor his performance over couple of weeks to see if he has changed his

behavior.

If still he hasnt then I will inform the senior management about the same and setup a

meeting where he can be given another chance to improve his behavior.

The senior management will take appropriate steps which can be put on a training period

or outright dismissal.

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Documents

Crap Assgmt